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Home My WebLink AboutAGENDA REPORT 1990 1121 CC REG ITEM 11GBERNARDO M. PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tern ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk MOORPARK /10 STEVEN KUENY City Manager CHERYL J.KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police RICHARD T. HARE City Treasurer MEMORANDUM To: The Honorable City Council From: Patrick J. Richards, Director of Community Development Date: November 9, 1990 (City Council Meeting 11- 21 -90) Subject: AFFORDABLE HOUSING PROPOSAL - BIBO /CABRILLO Economic Development Corporation (CEDC) BACKGROUND BIBO Inc. began meeting with the City Council's Affordable Housing Committee (Harper and Perez) in April of this year, and has met with the Committee several times since then. Several different proposed affordable projects have been reviewed by the Committee since April. Both rental, ownership and senior housing have been investigated by BIBO Inc. and the Committee. On October 25, 1990 the Committee met with representatives of BIBO Inc. and Cabrillo Economic Development Corporation (CEDC) to review a joint proposal for a 100 unit affordable rental project. DISCUSSION The current proposal by BIBO /CEDC is to provide 100 affordable apartment units on a 7.41 acre site located south of Los Angeles Avenue just west of Fremont Street. The current zoning on the property is RPD 12 U.P.A. with a General Plan Land Use designation of High Density. The subject site is approximately 120 feet wide and more than 1000 feet deep. The site abuts the Arroyo Simi. 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 THE PROPOSAL The attached summary proposal provides significant detail and should be referred to for specifics. The following is a general summary of the BIBO /CEDC proposal: BIBO & CEDC will provide 100 rental units of two, three, and four bedroom town house type units. 27 units are for very low income - 35% of Median 18 three bedroom, 9 four bedroom 40 units at lower income - 50% of Median 7 two bedroom, 22 three bedroom, 11 four bedroom 33 units at low income - 60% of Median 33 two bedroom Median income for Ventura County is currently $45,200. 35% of Median is $15,820 annual income max. 50% of Median is $22,600 annual income max. 60% of Median is $27,120 annual income max. If rental rates were set today using the above income limits; the following monthly rents could be anticipated: 35% Median (@ 30% of gross income) _ $395. 50% Median (@ 30% of gross income) _ $565. 60% Median (@ 30% of gross income) _ $678. ASSISTANCE REQUIRED FROM THE CITY OF MOORPARK 1. Interim Financing - A no interest loan in the amount of $400,000 using CDBG and City's Affordable Housing monies. 2. Fee Deferral - Until at least the completion of the project or if possible two years beyond. 3. Design Flexibility - That the City consider these units as affordable when reviewing it's design. 4. Fast Track Processing - This will help chances of securing finances. (See Attached Schedule) 5. Millard Street - If there is to be a future extension of this street, there is an interest to hold it's width to 53 feet (40 ft of roadway). 6. Parcel May Approval - The intent is to split the southern 7.41 acres from the balance as soon as possible (prior to December 31, 1990). 7. Affordable Housing Agreement - The need to begin working on this as soon as possible. Simply stated; this proposal and decision from the Cit y extended by the seller. In understanding of the timing, This schedule reflects the regarding the proposal. STAFF CONCERN would need almost immediate attention if the applicant's escrow is not order that the Council have a clear the applicant has provided a schedule. applicants needs and expectations Although the project has considerable merit towards providing affordable housing; staff is concerned with proceeding with a land division prior to approval of a development proposal. A land division, as proposed by the applicant, would create a "land locked" parcel dependent upon easements for access. In this regard the circulation for the area surrounding the subject site has not yet been established. If it is the intention to create a four way intersection at Los Angeles Avenue and Millard Street; this will affect the proposed project. Finally, the time frame required by the applicant for this land division does not appear realistic, even if fast tracking is involved. STAFF RECOMMENDATION 1. That the Council determine the merits of this affordable housing proposal and those assistance needs required by the applicant. 2. That the City Council direct the Affordable Housing Committee and staff to work with applicant on 1) An acceptable schedule, 2) The specific details towards using CDBG monies as proposed by their request, 3) To resolve roadway and access issues prior to proceeding with any agreement(s). 3. That the City Council direct this matter to be placed on their December 5, 1990 agenda for a status report and further recommend actions by the Affordable Housing Committee and or staff. Attachments: PJR9NOV90 1. BIBO /CEDC Proposal 2. Proposed Schedule 3. County Income Limits Chart -- RECEIVED -- OCT 2_ 4 1390. BIBO/CABRILLO AFFORDABLE APARTMENTS City of Moorpark A JOINT EFFORT BY BIBO, INC. AND THE CABRILLO ECONOMIC D ' EL MENT CORPORATION, A NON-PROFIT CORPORATION. THE PROJECT: 100 units of two bedroom "stacked" , three bedroom townhouse and four bedroom townhouse units. It consists of a north and south section, divided by the continuation of Majestic Avenue. The north side is 53 units with a clubhouse and laundry room. The south side is 47 units with a laundry room. Both sides will have tot lots and BBQ areas. The unit breakdown is as follows : 27 units at very low income - 35% of median 18 three bedroom, 9 four bedroom 40 units at lower income - 50% of median 7 two bedroom, 22 three bedroom, 11 four bedroom 33 units at low income - 600 of median 33 two bedroom NOTE: There might be slight adjustments in unit distribution as a requirement of the financing sources. ASSISTANCE REQUESTED FROM THE CITY OF MOORPARK: 1 . INTERIM FINANCING. Assistance from the City with interim financing for the project by way of a no interest loan to the Cabrillo Economic Development Corporation (CEDC) . This would consist of approximately $200 ,000 in CDBG funds and approximately $200 , 000 in funds from the City 's Affordable Housing Fund. The CEDC will use these funds as a part of the purchase price for the land through a purchase agreement with Bibo. This loan will be repaid to the City from the permanent financing for the project. 2 . FEE DEFERRAL . Deferral of all fees under the City 's jurisdiction until at least the completion of the project or if possible two years beyond. This would greatly reduce the ability of the project and reduce interest carry. 3 . DESIGN FLEXIBILITY . It is our intent to develop an attractive project suitable to the needs of the occupants and compatible with the surrounding area and that meet the City 's design criteria. We ask that during the appeal process consider- ation be given to the fact that these are affordable units . 4 . PROCESSING TIME/FAST TRACT POLICY REQUEST. It is not our intent to circumvent the process. However, since the financ- ing is a competitive process and must come together quickly, reducing the procesing time will greatly improve the chances of securing the financing. 5 . MILLARD STREET. We believe that it may be the City's intention to condition this project to create Millard Street. If so, we request that the street width to be held to 40 ' with 8 setbacks as it is a minor street. We do not see the need for any i greater width. In fact, a wider street would severely impact the building separations and green space. 6 . LAND DIVISION. This project will require a lot split. At this time we would like to concurrently process the lot split w with our P.D. Application. In the event we need the split soon- er , we ask that it be fast tracked and not tied to the P. D. process. 7 . ACTION NEEDED FROM THE AFFORDABLE HOUSING COMMITTEE. A) A conceptual approval of the project as presented. B) Recommendation to the City Council to take appropriate actions as necessary (i.e. - fast tract policy, fee deferral , grants, design) . C) Direct staff to begin work on funding the grants . D) Begin work on drafting the Affordable Housing Agreement. E) To complete package for Council approval by November 21 , 1990 . 8 . ACTION NEEDED FROM THE COUNCIL. Approval of the Af- fordable Housing Agreement at the earliest possible date . (Our deadline is mid-December. ) In order to apply for the financing of the project we must have an Agreement. We would ask that the Agreement include language that in the event this financing is j not available to the project, the Agreement will become void. WHAT THE CITY OF MOORPARK IS RECEIVING In exchange for this assistance, the City will receive a 100 unit 100% affordable project. It will be comparable with exist- ing projects in design and features. In fact in many respects these units will be superior to "market units" in the City. The units will have gas appliances , individual gas water heaters , air-conditioning, wood cabinets, and higher grade carpet. The affordability structure will allow the City to meet the needs of a vast segment of its citizens . But while the income require- ments and rents will be much lower , the project will nonetheless be something the City can be proud of without the stigma some- times associated with "low income" projects. Bibo, Inc. which has a proven track record of developing high quality, attractive affordable units will act as Developer. Cabrillo Economic Development Corporation, a proven provider and manager of affordable housing, will retain ownership and manage- ment. This assures a long term benefit and commitment to the City of Moorpark. We believe this project is truly beneficial to all parties. CABRILLO/MOORPARK APARMENTS 100 APARTMENT UNITS RENT PROFORMA # UTILITY NET MONTHLY ANNUAL SIZE UNITS RATE ALLOWANCE RATE RENTS RENTS VERY LOW INCOME 2 8R 0 356.00 43.00: 313.00 VERY LOW INCOME 3 BR 18 396.00 54.00 342.00 6156 73872 VERY LOW INCOME 4 BR 9 445.00 67.00 378.00 3402 40824 LOWER INCOME 2 BR 7 509.00 43.00 466.00 3262 39144 LOWER INCOME 3 BR 1 1 11 636.00 67.00 569.00 6259 751 LOWER INCOME 4 BR 68 LOW INCOME 2 BR 33 611.00 43.00 568.00 18744 224928 LOW INCOME 3 BR 0 678.00 54.00 624.00 LOW INCOME 4 BR 0 763.00 67.00 696.00 -------- -------- -------- 100 TOTAL 490.65 49665 588180 IBiboICEDe Development Tirnefna FTI Oct Nov Dec Jan Feb March April may June July Aug Sept Oct Nov Dec M 2 1.Conceptual Approval x Affordable Committee CD 2.Conceptual Approval x City cou nd I 3.CD13GIAffordabli) x x x x Housing Grant 4.Affordable Agreement x x x S.Land UrvisiDn x x x J-) Application/Approval x x 6. PD Application x x x x x x x 7. Arch.fEngin. x x x ijj a. Plan ChockjPormits, x 9.Start Grading 10. Start Structures 11.RHCP x x 12.SAMOA x x x 13.Tax Credits x Preparation/Applications (ji Notes I. Conceptual approval-Affordable Housing Committee ntatilon,discussion. approval to proceed 2. Conceptual approval-ofty Council.Nov.7 meeting.prose 3. CDBGIAffordable Housing Grant-end of December,subied to Affordable Housing AgreGmerd(AHA) 4. AHA-and of February approval vAll be recorded at close of Osemw ASAP Z- -5. Land Division-will be submided prior 10 PD application and approval.needed 6.POP Application-February 1991 application and June 1991 approval 7. Arch./Eng. 8. plan Check/Permits,-September/November 1991 CD 9, Start Grading -October 1991 10.Start structures-30 days from start of grading 11115/90 6932. Income Limits. February 1990 NUMBER OF PERSONS IN FAMILY AMY STANDARD 1 2 3 4 5 6 7 8 TUOLUMNE Very low income 11400 13050 14650 16300 17600 18900 20200 21500 Area median: Lower income 16450 18800 21 150 23500 24950 26450 27950 29400 $29,400 Median ate income 24700 28200 31 Mod 750 35300 37500 39700 41 900 44100 VENTURA Very low income 15800 18100 20350 22600 24400 26200 28000 29850 Area median: Lower income 25000 28550 32150 35700 37950 40150 42450 44650 $45,200 Median income 31 650 36150 40700 45200 48050 50850 53700 56500 Moderate income 37950 43400 48800 54250 57650 61 000 64400 67800 Yap Very low income 13150 15000 16850 18750 20250 21750 23250 24750 Area median: Lower income 21 000 24000 27000 30000 31 900 33750 35650 37500 $37,500 Median income 26250 30000 33750 37500 39850 42200 44550 46900 Moderate income 31500 36000 40500 45000 47800 50650 53450 56250 YUBA Very low income 10300 11750 13250 14700 15900 17050 18250 19400 Area median: Lower income 16450 18800 21150 23500 24950 26450 27950 29400 $29,400 Median income 20600 23500 26450 29400 31250 33100 34900 36750 Moderate income 24700 28200 31750 35300 37500 39700 41 900 44100 I Higher income limits apply to families with more than eight persons. The very low income limits for families larger than eight persons are determined as follows: for each person in excess of eight, add eight percent of the four-person income limit base to the eight-person limit, and round the answer to the nearest $50. For example, the nine-person very low income limit for Alameda County is $31,500. ($22,500 x .08 = $1,800; $29,700 + $1,800 = $31,500; $31,500 rounded = $31,500.) For the other three income groups shown, the income limits for families larger than eight persons are determined by adding, for each person in excess of eight, 6.25 percent of the four-person income limit to the eight-person income limit for the group, and rounding the answer to the nearest $50. HUD: 2/16/90 Authority: Section 50093, Health and Safety Code. Reference: Sections 50079.5, 50093, and 50105, Health and Safety Code. 7 Bibo-CEDC Financing Su_ MMM Permanent Financing First Mortgage Maximum supportable Rental Housing Construction Program (RHCP) 40% of units Tax Credit Equity 100% eligible Interim Financina $400,000 in CDBG or CDBG/Affordable Housing funds - no interest loan repaid from permanent financing Proposed Rent Schedule (1990 rents) Rent Per Units Month Very Low Income.(35% of median) 18 $396 Three Bedroom 9 $445 Four Bedroom Subtotal 27 Lower Income (50% of median) 7 $509 Two Bedroom Three Bedroom 22 $565 Four Bedroom 11 $636 Subtotal 40 Low Income (60% of median) Two Bedroom 33 $611 Total 100 11/21/90