HomeMy WebLinkAbout2011-02-22 - AGENDA REPORTS - LOW MOD HOUSING FUNDS (2)Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Armine Chaparyan
DATE: February 22, 2011
SUBJECT: TRANSFER OF REDEVELOPMENT AGENCY LOW/MOD
HOUSING FUNDS FROM THE AGENCY OWNED BLOCK TO
THE NEWHALL AVENUE DEVELOPMENT -
DEPARTMENT: Community Development
RECOMMENDED ACTION
Redevelopment Agency increase Agency non -housing transfers out of Account
390-19500-5501.391 by $2,850,000 and increase Agency low/mod housing transfers in Account
391-4711.390 by $2,850,000.
BACKGROUND
In 2009, the Redevelopment Agency of the City of Santa Clarita (Agency) acquired a full block
in downtown Newhall (APN's 2831-007-014, 2831-007-015, 2831-007-016, 2831-007-017,
2831-007-018, 2831-007-019 and 2831-007-032), commonly referred to as the Agency -Owned
Block (Block). The Block was acquired using $703,345 in Developer Fee funds and $5,498,243
in Agency low/mod housing funds, with the intent to develop a mixed-use project containing
affordable housing units. - Since the acquisition of the Block another affordable housing
development, the Newhall Avenue Development, has reached the point of entitlement with
construction expected to begin in early 2012. The recommended action in this report proposes to
shift $2,850,000 in low/mod housing funds from the Agency -owned block acquisition to the
Newhall Avenue Development.
The City/Agency is currently in the final stages of negotiating a Development and Disposition
Agreement (DDA) with two development companies, The Related Companies of California and
National Community Renaissance, for Phase I of the proposed Newhall Avenue Development
(Development). Phase I of the Development is anticipated to be developed on an approximately
1.5 acre underutilized park and ride lot on Newhall Avenue, acquired from Caltrans in .
(APPROVED
November, 2010. Phase I will be designed as a stand-alone project containing approximately 35
units of high quality, affordable, multi -family housing, and will include common area amenities
such as a community recreation center and children's play area. All of the units are expected to
have affordability restrictions as agreed to between the Agency/City and Developer or between
the Developer and other funding entities.
The Newhal 1 Avenue Development anticipates a potential Phase II in the near future. Phase II, if
developed, may include an adjacent parcel, consisting of approximately .74 acres of vacant land,
and any other such adjacent land as may be available to be used at the time of development.
Phase II is anticipated to be a high quality mixed-use commercial/residential project, however the
exact scope of the Phase II Project will be determined through the negotiation of a separate Phase
II DDA.
The original Block acquisition and the development of the Newhall Avenue Development are
both allowable uses of Agency low/mod housing funds. The shift of these funds from one
project to another is within the Agency's authority. Since any future development on the Block
will include a commercial component, Agency non -housing funds are eligible to be used for this
transfer.
The City/Agency must meet State -mandated requirements to develop housing for households in
all income groups - including low- and moderate -income households. In order to create
affordable housing developments of this type, funding from local jurisdiction is critical. The
Agency's low/mod housing funds are restricted to uses that increase, improve, and preserve the
supply of housing for low- and moderate -income households, and are therefore well suited to be
used for the Newhall Avenue Development. The development of these units will be counted by
the State toward the Regional Housing Needs Assessment (RHNA) requirements for affordable
housing units.
ALTERNATIVE ACTIONS
Other actions as determined by the Agency Board.
FISCAL IMPACT
This action will result in a decrease to the Agency non -housing fund balance for $2,850,000 and
an increase in the Agency low/mod housing fund balance for the same amount. There is no
impact on the General Fund.
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