HomeMy WebLinkAbout1995-02-28 - AGENDA REPORTS - CANTERBURY VILLAGE PROJ (2)AGENDA REPORT
City Manager Appro�
Item to be presented by:
NEW BUSINESS
�. Harris
DATE:, February 28, 1995
SUBJECT: Canterbury Village Project -- Funding Issues
DEPARTMENT: Community Development
BACKGROUND
A request has been made on behalf of Southern California Presbyterian Homes (SCPH), that
the City find or provide funding for the approved 64 -unit senior citizens housing development
at St. Stephen's Church. HUD will provide $4,945,800.00. The estimated cost of construction
exceeds this amount by $327,686,00. This amount has been referred to as the "shortfall'.
HUD funds a basic structure, without architectural amenities, lush landscaping, balconies
or an upgraded roof. SCPH wishes to provide these upgrades, and the City Planning
Commission approved the project in part; because of the quality of the design.
Some cities have actively recruited SCPH to build a senior citizen housing complex. Some
have donated property to encourage them to locate a project in the jurisdiction. Santa Clarita
has waived fees, delayed payment of fees, and granted a large density bonus. The St.
Stephen's property is zoned for 14 units, yet the City has approved 64 -units for low income
seniors.
Included in the HUD funding for the project is land acquisition at a cost of $715,000.00. The
church will benefit from the higher land values which prevailed during the appraisal process
which took place several years ago, and the very high density bonus which was factored in.
Discussion with HUD officials has revealed that the City may not use HUD entitlement
money for this project. CDBG funds may not be used.
We have contacted the Los Angeles County Community Development Commission, and they
are reviewing the possibility of funding some or all of the "shortfall". The General Fund has
not been budgeted for this or similar projects. The Recovery Agency is not in a position to
assure financial help.
St. Stephen's Church and SCPH are co -applicants, and either or both parties could lower
�b 6 Z -,-,meq Z- e xct r Z'D /^
Agenda Item;
their expectations as to the financial outcome of creating the project. Volunteer labor on
portions of the construction could help, as could donations. The entire operation of SCPH is
funded through the generosity of the Presbyterian faith, and they have built projects with a
"shortfall" before. The amount has normally been smaller. Numerous attempts to plan for
a profitable venture by the St. Stephen's Church have demonstrated that this project gives
them the best opportunity to receive an excellent sum of money for the property.
In summary, City staff has located no source of funding. We will continue to pursue the
Community Development Commission as a source.
RECOMMENDED ACTION
Direct staff to keep abreast of financing opportunities, and to inform the applicants that none
are available at this time.
LMH:RH:lep
council\cantrbry.lep