|REDEVELOPMENT AGENCY AGENDA
ITEM NO. 7
Meeting Date: October 28, 2003
Subject/Title: Approve Resolution to authorize the reservation of Low/Moderate Housing Funds in an amount not to exceed $225,000 for development of the Habitat for Humanity Fairview Project, and direct staff to prepare the necessary documents and agreements to support the project.
Submitted by: Gina Rozenski, Redevelopment Manager
Approved by: John Stevenson, Executive Director
Approve resolution to authorize the reservation of Low/Moderate Housing Funds in an amount not to exceed $225,000 for development of the Habitat for Humanity Fairview Project, and direct staff to prepare the necessary documents and agreements to support the project.
The Redevelopment Project Area Committee and the Redevelopment Subcommittee have reviewed Habitat’s request for Agency assistance for this project on several of occasions. After consideration, both the Project Area Committee and the Redevelopment Subcommittee support the request for Agency assistance in the amount of $225,000, with conditions.
The Mt. Diablo Habitat for Humanity is proposing to build four single story homes on a 0.6530- acre parcel located on Fairview Avenue, just south of Arlington Way (see attached map). Three units will have three bedrooms each, and one unit will have four bedrooms. The square footage will range from 1200 to 1500 square feet, and each unit will have a two-car garage. The land is currently owned by Pulte Corporation, which has indicated a willingness to sell the parcel to Habitat for Humanity for $1 (one dollar).
Mt. Diablo Habitat for Humanity is a non-profit organization that provides affordable homes for lower-income households. Through volunteer labor, tax-deductible donations of money and materials, and the sweat equity of partner families, Habitat builds modest, decent and affordable homes. Habitat has a selection committee which review applications and interviews applicants in their homes. Families are selected based on three primary criteria: the severity of their present housing conditions, their willingness to partner with Habitat and help themselves, and their ability to make the monthly mortgage payments.
The Brentwood Redevelopment Agency and Habitat for Humanity have previously worked together on two dwelling units located in the Downtown Project Area on First Street.
The conditions to be placed on this project, in exchange for financial assistance from the Agency include, but are not limited to:
1. Execution by parties of an Owner Participation Agreement (“OPA”).
2. Evidence of site ownership or control by Habitat for Humanity.
3. Establishment of silent second loans on each of the four units in favor of the Agency.
4. Units shall carry a recorded 45-year deed restriction. This assures that all units will be sold to another very-low income eligible household at an affordable housing cost.
5. Fulfillment of all other Agency requirements including receiving development entitlements from the City.
6. Reimbursement paid to the Agency from City’s Affordable Housing In-Lieu Fee Fund for a portion of the total financial assistance to the project.
Community Redevelopment Law provides that Low/Moderate Housing Funds may be spent outside redevelopment project areas. However, a “2 for 1” rule applies in such cases. In other words, for every 2 units built outside a project area, an agency may count 1 unit towards its inclusionary housing obligation. Since this project is located outside the Merged Redevelopment Project Areas, the Agency will receive two inclusionary housing units.
Staff requests the Agency to reserve $225,000 of its Low/Moderate Housing Fund to support the Habitat for Humanity Fairview Project, and direct staff to prepare the necessary documents and agreements to support this project. An Owner Participation Agreement and all supporting agreements shall be returned to the Agency for consideration and approval.
There shall exist a reservation of $225,000 of Low/Moderate Housing Funds, but no expenditure of these funds shall occur until after the Owner Participation Agreement is approved by the Agency and executed by the Executive Director.
Legal fees associated with preparing these agreements shall be funded fully by the Agency’s Housing Fund, and have been budgeted in the 2003/04 operations budget.
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING THE RESERVATION OF LOW/MODERATE HOUSING FUNDS IN AN AMOUNT NOT TO EXCEED $225,000 FOR THE DEVELOPMENT OF THE HABITAT FOR HUMANITY FAIRVIEW PROJECT, A VERY-LOW INCOME HOUSING PROJECT, AND DIRECTING STAFF TO PREPARE THE NECESSARY DOCUMENTS AND AGREEMENTS TO SUPPORT THE PROJECT
WHEREAS, California Community Redevelopment Law provides that a redevelopment agency shall establish a Low/Moderate Housing Fund (“Housing Fund”) and deposit a portion of tax increment revenues annually into the Housing Fund for the purpose of increasing, improving and preserving the supply of low and moderate income housing available at affordable housing costs; and
WHEREAS, the Brentwood Redevelopment Agency (“Agency”) desires to support the availability of housing opportunities for very low, low and moderate income residents within the community; and
WHEREAS, the Agency has previously supported a Habitat for Humanity project for very-low income households in the Brentwood (“Downtown”) Redevelopment Project Area; and
WHEREAS, Habitat for Humanity is proposing to develop four single family residential units for very-low income households on a 0.6530 acre site located on Fairview Avenue south of Arlington Way (“Fairview Project”). The Fairview Project is located outside the Merged Brentwood and North Brentwood Redevelopment Project Areas and therefore will provide the Agency with one inclusionary housing unit for every two units built; and
WHEREAS, Habitat for Humanity possesses the qualifications and management resources necessary to insure the development of the Fairview Project in accordance with the purposes and objectives of the Agency’s Redevelopment Plan; and
WHEREAS, Pulte Corporation currently owns the site for the Fairview Project and has verbally agreed to sell the site to Habitat for Humanity for $1 (one dollar); and
WHEREAS, the Agency has funds available in the Low/Moderate Housing Fund to contribute to the development of the Fairview Project; and
WHEREAS, Habitat for Humanity has requested funding from the Agency in the amount of $225,000 for construction and development costs in support of the Fairview Project to combine with other private contributions and volunteer labor.
NOW, THEREFORE BE IT RESOLVED that the Redevelopment Agency of the City of Brentwood hereby authorizes:
1. The reservation of Low/Moderate Housing Funds in an amount not to exceed $225,000 to assist Habitat for Humanity in funding the construction and development costs associated with the Habitat for Humanity Fairview Project, subject to the preparation and approval by the Agency of an agreement specifying the specific terms and conditions of participation with Habitat for Humanity to the develop the project, subject to the provision of evidence of site ownership by Habitat for Humanity, and subject to Habitat for Humanity receiving the necessary development entitlements and permits from the City and other agencies.
2. Staff to negotiate in good faith with Habitat for Humanity for the development of the Fairview Project and to commence preparation of the necessary agreements and documents to support the Fairview Project such as, but not limited to, an Owner Participation Agreement, Affordability Agreement, Re-sale Agreement, and Promissory Note. Final drafts of agreements and notes shall be returned to the Agency for their review and approval prior to execution by Agency.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 28th day of October, 2003, by the following vote:
Karen Diaz, CMC
Mt. Diablo Habitat for Humanity
Brentwood Fairview Project
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
Fax (925) 516-5441