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Recommendation to adopt resolution authorizing the submission of an application to the California State Department of Housing and Community Development Transit Oriented Development Housing Program for funding assistance of up to $17,000,000; and authorize City Manager to execute all necessary documents upon funding approval. (District 1)
DISCUSSION
The Department of Community Development requests authorization to submit an application for funding assistance of up to $17,000,000 under the State Department of Housing and Community Development's (HCD) Transit Oriented Development (TOD) Housing Program. The TOD Housing Program is designed to increase the overall supply of housing, increase the supply of affordable housing, increase public transit ridership, and minimize automobile trips. The program seeks to accomplish these objectives by providing financial assistance for the development of housing and related infrastructure near public transit stations. Under the program, low-interest loans are available as gap financing for rental housing developments that include affordable housing units, and as mortgage assistance for homeownership developments. In addition, grants are available for infrastructure improvements necessary for the development of specified housing developments, or to facilitate connections between these developments and the transit station.
Funds for the TOD Housing Program were allocated under the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition 1 C). This is the first funding round for the TOD Housing Program. There is $95 million in the first round. It is anticipated that two additional rounds will be forthcoming. A total of $285 million will be available over three years.
The City of Long Beach and Meta Housing Corporation will apply as co-applicants for rental, homeownership and infrastructure funds in connection with a proposed mixeduse development at 1235 Long Beach Boulevard (southwest corner of Long Beach Boulevard and Anaheim Street). Housing Services Bureau and Redevelopment Agency staffs have been working with Meta Housing on development plans for the site. The site contains approximately 150,000 square feet (SF) or 3.4 acres. The proposed project includes the following:
• Subterranean and above ground parking (above retail level).
• 70,000 SF of retail space with outdoor dining, plaza areas, public outdoor performance
areas, improved access to public transportation, and widened pedestrian right of ways
with landscaping and street trees.
• Rental and for-sale housing in two distinct residential buildings, 20% affordable and 80%
market-rate. Building one contains 146 1-bedroom and 2-bedroom apartment units designed
for active seniors age 55 and above. Building two contains 221 condominium units ranging in
size from one to three bedrooms. The project includes community rooms, classrooms, a
fitness center, and resident services. The unit breakdown and affordability restrictions are as
follows:
If the application is successful, the rental housing funds will be awarded to Meta Housing as a low-interest loan and will be used to help finance the senior rental housing component of the proposed development. Meta Housing will be responsible for repayment of those funds under a separate agreement with HCD. The homeownership funds will be awarded to the City in the form of a grant and will be used as silent second mortgage loans to the buyers of the affordable units on the for-sale component of the development. Those buyers will be responsible for repaying the City once their units are re-sold. The infrastructure funds will be awarded to the City in the form of a grant and will be used for infrastructure improvements benefiting the entire development and the area surrounding the Anaheim Transit Station. The infrastructure funds require a 20% cash match from the City. The Long Beach Housing Development Company has already made an acquisition loan of $5,152,000 to Meta Housing. This application will be submitted with the understanding that a portion of the $5,152,000 will count as the match towards the infrastructure portion of the application.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on February 19, 2008, and Budget Management Officer Victoria Bell on February 22, 2008.
TIMING CONSIDERATIONS
City Council action is requested on March 4, 2008, as the application for TOO Housing Program funds is due on March 7, 2008. A resolution authorizing the submittal of this application is required in the application package.
FISCAL IMPACT
The application will be submitted in the amount of up to $17,000,000, the maximum amount allowed under the TOO Housing Program funding announcement. A budget adjustment will be requested if and when funds are received, and in accordance with the amount of funds awarded to the City. The City will not be obligated to repay the funds, if awarded. The proposed action will not impact the General Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY TO (I) SUBMIT AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE TRANSITORIENTED DEVELOPMENT (TOO) HOUSING PROGRAM; AND (II) EXECUTE ALL DOCUMENTS NECESSARY TO PARTICIPATE IN THE TOO HOUSING PROGRAM IF SELECTED FOR SUCH FUNDING.
Respectfully Submitted,
DENNIS J. THYS, DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |