TITLE
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 an assistance of up to $17,000,000; and authorize City Manager to execute all documents necessary to accept and expend the funds for the proposed project, upon funding approval. (District 1)
DISCUSSION
The Department of Community Development requests authorization to submit an application for a grant 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 grants are available to provide mortgage assistance to low- and moderate-income buyers 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 second funding round for the TOD Housing Program. There is $95 million available in this round, just as there was in the first. It is unknown at this time whether additional rounds will be forthcoming because of the State budget deficit. However, it was announced that a total of $285 million would be available over three years.
The City of Long Beach (City) and Meta Housing Corporation will apply as co-applicants for rental, homeownership and infrastructure funds in connection with a proposed mixed-use development at 1235 Long Beach Boulevard (southwest corner of Long Beach Boulevard and Anaheim Street). The City and Meta Housing were also coapplicants for the first funding round, and although a high score was received on the application, funds were not awarded. However, in preparation for the second funding round, staff continued working with Meta Housing on development plans for the site. The proposed project now has Site Plan and Tentative Map approval from the Planning Commission, which significantly improves the chance of funding this round.
The proposed development site contains 151,643 square feet, or 3.48 acres, and encompasses three mixed-use buildings, a large park-like open space for all residents, a quad dedicated to lifelong learning activities for senior residents, community rooms, a pool and BBQ area for condo owners, and two rooftop terraces. Two large public plazas are also provided, one open to Long Beach Boulevard and the other to Anaheim Street, allowing for pedestrian-friendly retail uses and a vibrant urban corner. In total, the project provides 2.2 acres of open space. Each of the three buildings varies in design, size and height. A rendering is attached (Attachment A). Approximately 30 percent of the total residential units are., proposed to be affordable to low- and moderate-income households. Further details for each building are as follows:
· Building A, ranges in height from three to six stories and faces Long Beach Boulevard along the southern edge of the development site. This building contains 18,000 square feet of retail space, 61 condominiums and 39 senior rental units;
· Building B, located at the corner of Long Beach Boulevard and Anaheim Street, is the signature building of the project, reaching a height of 180 feet and 13 stories. This tower building provides the remainder of the condominium (109) units and 14,700 square feet of retail space. It is designed in modern architecture with vertical elements to emphasize the corner;
· Building C, facing Anaheim Street, is entirely a senior rental component with 147 units and 9,300 square feet of retail and resident activity space. This building is more traditional in design and ranges in height from three to six stories; and,
· Parking will be provided within a structure, with one partial level at grade (behind the retail space fronting Long Beach Boulevard and Anaheim Street) and one subterranean parking level.
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 condominium units. 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 percent 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 segment of the application.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on February 19, 2009, and Budget Management Officer Victoria Bell on February 27,2009.
TIMING CONSIDERATIONS
City Council action is requested on March 17,2009, as the application for TOO Housing Program funds is due on April 2, 2009. 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 is not necessary at this time but will be requested if and when funds are 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 TRANSIT-ORIENTED DEVELOPMENT (TOD) HOUSING PROGRAM; AND (II) EXECUTE ALL DOCUMENTS NECESSARY TO PARTICIPATE IN THE TOD 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 |