05-0315_HABITAT FOR HUMANITY_D1_Agenda Report CRA 3/15/2005
D1
AGENDA REPORT
To: David F. Adams, Executive Director Q \
From: Molly Bogh, Deputy Director
Subject: Consideration of Concept Proposal for Affordable Housing Project for
Acquisition of Property from Community Redevelopment Agency Located
at the Terminus of Calle Rolando - APN 650-121-03 & 04 (Habitat for
Humanity)
RECOMMENDATION:
1. Consider an offer from Habitat for Humanity to acquire a 2.7 acre parcel from the
Community Redevelopment Agency to develop a 27-unit owner-occupied
affordable housing project on the property located at the terminus of Calle
Rolando;
2. By motion, provide direction to staff to work with the applicant to finalize the
project plans and schedule, file and process land use applications for zoning and
other land use approvals, and bring this item back to the City Council for final
action.
SUMMARY:
Habitat for Humanity (Habitat), a local non-prdit corporation, has made an offer to develop
27 owner-occupied affordable homes on the Community Redevelopment Agency's 2.7 acre
property located at the terminus of Calle Rolando. Habitat proposes to covenant the homes
for a minimum of 55 years to help satisfy the City's Regional Housing Needs Assessment
(RHNA) requirements for low and very-low income housing.
In exchange for developing the 27 units Habitat is requesting that the Community
Redevelopment Agency (Agency) contribute the land and approximately $1 million in
financial aid in the form of a Community Development Block (CDBG) Grant. The State of
California awarded a $1 million CDBG grant to the City for development of an affordable
housing project on this site. In order to keep the grant award, the City needs to identify a
project for the site, conduct a public hearing, obtain all funding commitments, and complete
an environmental assessment by April 27, 2005. If unable to meet the April 27 deadline, the
City may request an additional 90 days to complete the above conditions for the grant. The
City has determined that Habitat's offer would be an eligible project for this grant.
Habitat is prepared to proceed with the development review process immediately if the City
Council finds their offer acceptable in concept. Attached is Habitat for Humanity's letter of
interest, a conceptual site plan, sample elevations, and development pro forma for the
Agenda Report -2 - March 15, 2005
Proposed 27 units (Attachment 1). Habitat's proposal consists of 13 duplexes and one
single-family dwelling unit. The proposal meets the density requirements of the City's
General Plan and the zoning requirements for height, parking, and setbacks. A rezone
would be required for any type of residential because the existing IP (Industrial Park)zoning
is for an interim use. The future zoning district is shown as medium high density residential.
The City's Housing Element identifies a need for 280 new housing units for very-low and
low-income households from 1998 through June 30, 2006. The City has provided
affordability covenants for 79 low and very-low income units to date, leaving 201 units
remaining to be constructed. To meet the Housing Element goal, the City also needs to
provide 151 moderate income units. Please see the attached Housing Element RHNA
table (Attachment 2) documenting the City's progress in meeting these goals.
Staff has scheduled this offer for City Council review as a public hearing in order to
allow members of the public to provide input prior to a significant expenditure of time
and money on the project by Habitat or the Agency. In the past, neighborhood
concerns have been voiced about affordable housing on this site. However, Habitat's
offer is different from the prior proposal because they are proposing an ownership
project and a lower density. Habitat has already held one neighborhood meeting and
has indicated a willingness to listen and respond to public input on the project designs.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
The City's Housing Advisory Committee heard a presentation by Habitat for Humanity under
Orel Communications at their July 7, 2004 meeting. On July 21, 2004,the Housing Advisory
Committee unanimously recommended consideration of an affordable project for the Calle
Rolando site, including Habitat for Humanity(see Attachment 3).
If the Agency authorizes staff to enter into negotiations with Habitat,the preliminary proposal
will be scheduled for Housing Advisory Committee to obtain their feedback and input at the
beginning of the process. Upon formal submittal of a development application,the proposed
project would be scheduled for consideration by the applicable boards and commissions as
part of the City's normal development review process.
FINANCIAL CONSIDERATIONS:
There is no fiscal impact to the Agency from allowing Habitat for Humanity to prepare
and submit land use and zoning applications. Any future action to sell the property will
be subject to Agency board review.
NOTIFICATION:
This item has been scheduled as a public hearing with appropriate notification published in
the Orange County Register (Attachment 4) and posted at City Hall, the Library, and the
Community Center. Public hearing notices were mailed to all property owners within 500
feet, including all property owners in the Kaufman Broad Homes (Village Alipaz) and San
Juan Mobile Estates. Additional public hearing notices were mailed to:
Agenda Report - 3 - March 15, 2005
Alipaz Community Association
Lois Huddlestone
Donald Miller
Christine Folgmann
Bryan Samuelson
The Kennedy Commission
Public Law Center
Mark Korando, Habitat for Humanity'
Agenda Report Included
RECOMMENDATION:
1. Consider an offer from Habitat for Humanity to acquire a 2.7 acre parcel from the
Community Redevelopment Agency to develop a 27-unit owner-occupied
affordable housing project on the property located at the terminus of Calle
Rolando;
2. By motion, provide direction to staff to work with the applicant to finalize the
project plans and schedule, file and process land use applications for zoning and
other land use approvals, and bring this item back to the City Council for final
action.
Respectfully submitted, Prepared by,
,•• '' '' � 7t� GcadYL'
Molly Boh, Lynnette Adolphson
Planning Director Management Analyst If
Attachments: (1) Proposal by Habitat for Humanity
(2) Regional Housing Needs Assessment Table
(3) July 21, 2004 Housing Advisory Committee minutes excerpt
(4) Public Hearing Notice
Sena By: HABITAT FOR HUMANITY; • 7144341222; Ja0-31 11b 4:39HM; rage eue
for 2165 S. Grand Avenue
PN ka,
Santa Ana,CA 92705
(714) 434-6200
Fax(714)434.1222
Website: hahitatoc.org
COIAJNGE
TY "�4tpagy6
January 31, 2005
Mayor& City Council Members/
Redevelopment Agency Members
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano CA 92675
Subject: Request for Real Property Negotiations
Dear Mr. Mayor&Council Members:
I am writing you to declare Habitat for Humanity of Orangc County's intention to propose an
affordable housing development on the property you current own at the terminus of Calle
Rolando. Habitat would propose a development of 27 "For Sale"affordable paired homes to
people earning less than 80%of the Area Median Income in Orange County. Attached for your
use is a project pro-firma explaining the partnership for funding the development.
Our terms for acquiring the property are generally that the Redevelopment Agency provide the
land and approximately one million dollars to financial assistance. The City has already secured
a million dollar CDBG grant for infrastructure development that could be used to meet our
assistance request. In return for such consideration Habitat would produce 27, affordable income
restricted homes. The homes would remain atlbrdabfc through Resale and Restrictive Covenants
for a term of SS years which meets the City's RHNA requirements.
Thank you in advance for your consideration. Should you have any questions I am available at
714-434-6200 xt 214.
Sincerely,
Mu,
ar
Sr. Vice President of Site Development &Construction
ATTACHMENT 1
Calle Rolando Date 1/24/2005
Sources and Uses
Property Details Expenses''
Address: Calle Rolando City: San Juan Capistanw Acctg# Type Normal ExtraordinaryTotal
Cross streets: Alipaz Topography: sloping/needs fill 1000 Land Costs $2,1100,00.0
(2) $2,100,000.0
Utilities: End of culdesac Zoning: residential
2060 Architect $137,166.8 $0.0 $137,166.8
Cost Drivers 2130 Legal $135,000.0 0.0 $135,000.0
#of lots 27.0 DesignrOther 311,946.7 0.0 $311,946.7
Lot Size 116,471.0 2000 Total Pro Services $584,113.5 $0.0 $584,113.5
#units/lot 27.0 3000 Fees 437,400.0 0.0 437,400.0
Unit Sf 1,158$ 1,282 4000 Offsftes 557,269.8 0.0 557,269.8 •
Total Unit Sf 32,878.0 5000 Onsites 602,426.2 0.0 602,426.2
#Unit Designs 2.0 6000 Construction 2,351,105.8 200,000.0 2,551,105.8
House style 3-br attached,4-br attached
Project Duration 140.0 7120 Supervision 287,000.0 0.0 287,000.0
Asking Price $2,100,000 Other Indirects 66,956.5 0.0 66,956.5
Cost/Sf $18.03 7000 Total Indirect Costs $353,956.5 $0.0 $353,956.5
Funding 8040 COH 810,000,0 0.0 810,000.0
San Juan Capistamo Funds $3,094,670 8050 Admin OH 270,000.0 0.0 270,000.0
Habitat Funds $4,720,000 Volunteer OH 32,564.4 0.0 32,564.4
SUBTOTAL $7,814,670 8000 Overhead $1,112,564.4 $0.0 $1,112,564.4
9000 Contingency 671,220.0 0.0 671,220.0
San Juan Caplatamo Funds Developer Funds Recluired
Land $2,100,000 Total Pro Service: $584,113 Total Expenses $8,770,056.1 $200,000.0 $8,970,056.1
Fees 437,400 Onsites 602,426 TotalExpenses/Unft $324,816.9 $7,407.4 $332,224.3
Offshes - 557,270 Fees 0 Total Expenses/Unit ex-Land $247,039.1 $254,446.5
Contingency 671,220 •
Construction 2,551,106
Total Indirect Cosi 353,956.5 Estimated Sales Price/3-Br Unit $170,000
Overhead 1,112,564.4 Estimated Sales Price/4-Br Unit $180,000
TOTAL $3,094,670 TOTAL $5,875,386 Total Sales Price $4,720,000
Funding Sources Cost/Unit
San Juan Capistarno as%Total 34.5% $114,617.40 Total Expenses $8,970,056
Habitat Funds as%Total 52.6% $174,814.81 Less Available Funding $7,814,670
Gap Funding 12.9% $42,792.09 Gap Funding Required $1,155,386
100.0%
I'I Costs based on historicals
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CITY OF SAN JUAN CAPISTRANO
HOUSING ELEMENT REGIONAL HOUSING NEEDS ASSESSMENT
FOR THE PERIOD FROM 1998-2004
2004 Orange County Median Income
Based on 4 Person Household: $75,600
RHNA %OF TOTAL %OF REMAINING
INCOME CATEGORY UNITS TOTAL UNITS REQ'D RHNA UNITS REQ'D.
(For 4-Person Household) REQ'D. UNITS PROVIDED• UNITS BY 2006
Very Low Income(0%30%) 164 19.5% 35 21.3% 129
$22,700-$37,800
Low Income(51%-80116) 116 13.8% 44 37.9% 72 •
$37,801 -$57,500
Moderate Income(81%-120%) 167 19.9% 16 9.6% 151
$57,501 -$90,700
Above Moderate(>120X) 393 46.8% 399 101.5% 0
>$90,701
840 0%
The number of abovemoderate units provided only includes new tract construction units
FORDABLE PROJECTS
Lengtho
Project Name Very Low Low Moderate Total Afford. Expires C of O Status
55 years from Req'd.to submit annual
Villa Paloma Senior Apts. 31 37 16 84 December 14, 12/14/55 January, report by April 15 each
2000 2003
year to City
Casa de Amma Assisted Living 4 7 0 11 33 years from 03/04/36 Req'd to submit annual
D March 4,2003 April,2004 report by April 15 each
--� r to C' •
TOTAL RHNA PROVIDED: 44 16 95
DADDITIONAL AFFORDABLE UNITS:
Afford.Covenants to be
55 years from December, completed by April 1,
Little Hollywood Rentals 10 4 0 14 agreement 4/5/2060 2000 2005. Upon approval,
m execution date units may be counted
Z towards RHNA
—"� 57 years from C of O City has right to inspect
N Seasons Senior Apts. 18 74 0 92 Certificate of 2053.2054 issued in Irecords any time with 24
Completion date 19%&1997 1hours prior notice.
Housing Advisory Committee Minutes
July 21, 2004
Page 2 of 3
(2) Should the City use a housing expert to assist staff and the
Committee in developing strategies to meet the City's Housing
Element goals?
(3) Should the City integrate affordable units into market rate projects
throughout the community rather than concentrating affordable units
into one area? How can the City best achieve this objective?
Mr. Justin Bauman addressed the Committee. He stated that he resides
in the Kaufman Broad homes and that KB Homes is willing to purchase
the Calle Rolando site to construct 18 additional homes.
The Committee expressed concern that the City educates the public
regarding funding sources for affordable housing. The Committee
encouraged use of Community Redevelopment Agency housing set aside
funds for an educational campaign.
The Housing Advisory Committee unanimously concurred with the
following direction regarding meeting the City's affordable housing goals
within the next two years:
• Concentrate on multiple projects rather than one single project;
• Focus efforts on construction of affordable family rentals;
• Consider Calle Rolando and Little Hollywood sites for affordable
housing projects, including a Habitat for Humanity ownership project,
duplexes, manufactured housing, or condominiums;
• Integrate affordable units with market rate units whenever possible.
However, the Committee concurred with allowing non-integrated
projects for the Calle Rolando and Little Hollywood sites;
• Restrict affordable units to residents currently living in San Juan
Capistrano;
• Provide education to community groups regarding affordable housing;
• Educate the public on why we need to provide affordable housing;
• Advertise in local newspapers, including pictures of families that might
reside in affordable units;
• Provide for a mixed use of affordable residential and industrial on the
Lower Rosan site; and
• Work with a housing consultant to help develop a City housing
strategy.
2. 03 CDBG PITA — Community Develooment Block Grant Planning and
Technical Assistance Multi-Family Housing New Construction Project
Feasibility Study — Staff advised that the site feasibility study prepared by
Mercy Housing California for the planning and technical assistance grant
I
ATTACHMENT 3
NOTICE OF
PUBLIC HEARING
m a„u, nct
me
' CITY OF SAN JUAN CAPISTRANO
NOTICE IS HEREBY GIVEN, that on the 15th day of March, 2005, at 7:00 P.M. in the City Council
Chamber, 32400 Paseo Adelanto, San Juan Capistrano, California, the City Council will hold a public
hearing on the following:
Consideration of a Conceptual Proposal To Develop An Affordable Housing Project
Consisting of 27 Dwelling Units on 2.7 Acres Located at the
Terminus of Calle Rolando (Habitat for Humanity) —APN 650-121-03&04
The San Juan Capistrano Community Redevelopment Agency will consider a proposal from Habitat for
Humanity to develop 27 owner-occupied affordable homes on the Community Redevelopment Agency's
property at the terminus of Calle Rolando. Habitat for Humanity,a local non-profit corporation, proposes
to covenant the homes for a minimum of 55 years to help satisfy the City's Regional Housing Needs
Assessment (RHNA) requirements for low and very-low income housing. The project is proposed to
consist of 13 duplexes, one single-family dwelling, and a private recreation area.
Those desiring to be heard on this item will be given an opportunity to do so during such hearing. Written
information pertaining to this item must be submitted to the City Clerk by 5:00 p.m., on Monday, March
14,2005,at 32400 Paseo Adelanto, San Juan Capistrano, CA 92675. Individuals desiring to submit late
written information at the meeting must orally request such action.
For further information you may contact project manager,Lynnette Adolphson,Management Analyst II,at
(949)443-6324. —{
MAG ET R. MONA CITY CLERK
d'
ATTACHMENT 4