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HomeMy WebLinkAbout1990-03-27 - AGENDA REPORTS - STATE PROP 84 FUNDING (2)AGENDA REPORT ' r City Manager Approval 1J.e3e Item to be presented CONSENT CALENDAR Mark Scott DATE: March 27, 1990 SUBJECT: Resolution Supporting an Application by SHB Financial Corp. for. State Prop. 84 Funding. (Resolution No. 90-53)� DEPARTMENT: Community Development. BACKGROUND: Through Councilmember Koontz, staff received a request from SHB Financial Corp. (Mr. Seymour Braverman) for City support for their private application for State Prop. 84 funding. Prop. 84 provides grant funding to senior housing projects to help meet state and local affordable housing objectives. SHB Financial Corp. has an approved, but not yet constructed, senior housing project (Market Street Apartments) of 65 units on Newhall and Market Streets. This is one of only two such projects in Santa Clarita. The applicants seek Prop. 84 funding to allow them to reduce their rent levels (to between $241 and $431 per month). The process for obtaining Prop. 84 funding is very competitive. Because SHB has an approved project,located in an area with significant market demand, it is likely that their application will receive close consideration. By his attached letter, Mr. Braverman has requested City support. After meeting.with Mr. Braverman and Councilmember Koontz, staff previously prepared'the attached letter, and itis now suggested that a City Council resolution would further support the application. By its support, the City in no way incurs any City cost, and the benefits to the eventual renters would be significant. RECOMMENDATION - It is recommended that the City Council adopt the attached resolution of support. ATTACHMENTS: Letter of request from Mr. Seymour Braverman, dated February 26, 1990. Letter from staff to Mr. Braverman, dated March 1', 1990. Resolution No. 90-53. Adopted: Agenda Item: RESOLUTION NO. 90-53 A RESOLUTION OF THE CITY COUNCIL -OF-THE CITY•OF SANTA CLARITA;'CALIFORNIA, SUPPORTING AN APPLICATION BY SHB FINANCIAL CORP. FOR STATE PROP. 84 FUNDING WHEREAS, the City of Santa Clarita seeks a balance of housing types, in adequate quantities and at affordable levels to.match community needs; and WHEREAS., there is not currently an adequate quantity of affordable Senior Housing units in the City; and WHEREAS, the City Planning Commission has previously reviewed and approved a Senior Housing complex of 65 units, located at Newhall and Market Streets; and WHEREAS, the owners have requested City support for their application to receive State Prop. 84 subsidization to keep their rental rates at an affordable level; and WHEREAS, the owners of this property (SHB Financial Corp.) has a track record of constructing quality Senior Housing projects; NOW, THEREFORE, be it resolved as follows: SECTION 1. That the City Council of the City of Santa Clarita expresses its support for the application of SHB Financial Corp. to the State of California, seeking Prop. 84 funding for their 65 -unit project in the City of Santa Clarita. SECTION 2. That the City Clerk shall certify to the adoption of this resolution. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council. of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of March 19 , by the following vote of the Council: AYES: COUNCILMEMBERS Boyer, Heidt, Koontz, McKeon, Darcy NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS None CITY CLERK c3. ,7 . 3. .7inancial Corp. 4640 LANKERSHIM BOULEVARD, SUITE 204 NORTH HOLLYWOOD, CALIFORNIA 91602 763-0810 December 26, 1990 Mr. Mark Scott Director of Community Development City of Santa Clarita 23920 Valencia Blvd., Suite 300 City of Santa Clarita, California 91355 RE: Market Street Apartments Dear Mr. Scott: FEB 2 7 1990 COMMUNITY DEVELOPMENT CITY OF SANTA CLARITA, As you know we are the developers of the sixty five unit Senior Citizens Complex that is going to be -built at the corner of Market Street and Tlewhall Avenue right next to the existing Senior Citizens Center, We are close to being able to start constructin and believe that we may have found a way to help make a significant portion of the rents ever.. more affordable than.. previously projected. In.*order to accomplish this, how- ever, we need a little help from the City in providing informa- tion and it's support. We have become aware of and are planning to submit an applica- tion to the State of California Housing and Community Develop- ment Agency for some of their 3% financing under their program approved .by the voters known as Proposit-.ion,�34. Under this pro- gram, if selected, a portion of the financing for the project will be covered by their favorable interest rate financing. In conjunction with this we will reduce the rents on that portion covered (49;0) to meet their program .guidelines which call for 2/3 of the portion covered to be at rents of no more than $241 and the balance of the portion covered to be at rents of no more than $431. This would be a tremendous help for those Seniors' who are on a fixed income and who have been on the sub- s'dized housing waiting lists for several_ years already. In order to be selected we need to show that not only is there a need for this type of housing in the area, but also that the City of Santa Clarita is supportive of our effort to meet this need through the use of the Proposition 34 funds or any other source -.that would help keep the rents in the affordable range. We realize that you are a new City and as such may not have some of the items requested in the RFP such as a detailed hous- ing plan for the area identifying the target groups. We are Mr. Mark Scott February 26, 1990 Page 2 therefore requesting that your Agency and the City of Council write us a letter, and if possible a Council Resolution, call- ing for the need for low and affordable income Senior housing in the.City of'Santa Clarita and specifically our project. Since the application to the State is due no later than March 2:,. 1990, we would appreciate if the letter could at least be provided prior to this date so that we can include it with our appli6ation. We believe that our project has an excellent chance of being approved in their first go -around for funds,given the fact that the project is ready to go, we have an excellent tract record.and given the tremendous need in the area for "Afford- able" Senior housing. It may also be a plus that you are a new City and as a result have not had the opportunity to build up your own reserves to provide for affordable Senior housing. This gives them another reason to help this project at this locality. It was nice meeting with you and your staff today 'and we look forward to.working with you on this and may other projects. Very truly yours, SEYl UR S. BRAVEP.M 14 SB:mz City of Santa Clarita 23920 Valenolvd. Suite 300 City of Santa Clarita California 91355 March 1, 1990 Phone (805) 259-2489 Fax (805) 259-8125 Mr. Seymour S. Braverman S.H.B. Financial Corporation 4640 Lankershim Blvd., Ste. 204 North Hollywood, CA 91602 Jo Anne Darcy Mayor Dear Mr. Braverman: Carl Boyer, 3rd Mayor Pro -Tem City Councilmember Koontz and I were very pleased to meet with you this week. As we discussed, the City is very enthusiastic about Jan Heidt your project and the prospect of receiving Prop. 84 assistance to Councilmember keep rents for the Market Street Apartments at an affordable rate. Dennis M. Koontz Councilmember As you know, in the entire City, there are currently only 60 -odd Howard "Buck" McKeon units of senior housing presently made available at rental rates Councilmember corresponding to Very Low Income seniors. There is a glaring need for these facilities to accommodate our population of roughly 150,000. Of this number, the City estimates that 6.31 are over age 65 and 121 are over age 55. We are extremely anxious to attract more developments such as yours and to take whatever steps are possible to subsidize or otherwise keep rents at rates that seniors will be able to afford. The City of Santa Clarita is a new City, being the largest ever incorporated as a new city in California. Although we are working diligently, the City will not adopt its first General Plan (including the Housing Element) until this summer. New cities are granted two years to adopt their first General Plans. As such, we are about a month away from being able to give you all of the statistical support you asked for to justify the Prop. 84 funding. However, I can tell you with complete confidence that the current vacancy rate for comparable, low -rent senior housing is practically zero. The supply of units is negligible and the demand is extremely high. Further, the City's population is growing very rapidly. As the housing market in this area continues to mature, and as costs increase significantly, the effect on seniors and first time homebuyers will be profound. It is a top priority of the City, and the early draft Housing Element, to seek opportunities for both of these populations. Mr. Seymour S. Braverman Page 2 March 1, 1990 Again, the City is very pleased about your project, and we hope you will be doing more projects in Santa Clarita. We are preparing a formal City Council. resolution of support for your Prop. 84 application and anticipate that the City Council will act on it on March 13. Please let us know if we can be of any additional assistance. Sincerely, Mark Scott Director, Community Development MS/lb cc: Councilmember Dennis Koontz George Caravalho, City Manager