AgdaPkt 2017-06-26 Closed and Joint SA PFA

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HIP Housing Development Corporation (HHDC) Funding Request The City received a request for $1,099,000 of City Affordable Housing Funds from HHDC to assist with the acquisition of real property located at 1512 Stafford Street (“Stafford”) in Redwood City. The Stafford property includes seven apartments and one 1,500 square foot commercial space. There are one two-bedroom, five one-bedroom and one studio apartments on the property. The property was built in 1950 and has been owned by the current owners since 1994. The lot size is 7,200 square feet and the building, which features tuck-under parking, is 7,700 square feet. The property is located within walking distance to downtown Redwood City and to the Redwood City train station. It is also close to other transit options and many other community amenities. ANALYSIS The current owners of 1512 Stafford are long-time Redwood City residents. They are interested in selling the property to help finance their retirement and their children’s university expenses but are committed to finding a buyer who will maintain the property’s affordability for both the existing residents and the commercial tenant. The property has been well maintained over the years but has never undergone a major renovation and is in need of some repair work. The sellers have a strong personal commitment to preserving the affordability of the units so that upon the sale of the building, the current tenants will not be displaced or rent burdened. As small business owners themselves, the sellers are also committed to the long-term commercial tenant, Mo Music, a small business specializing in music education for young children. Mo Music has been in this location for 10 years and would like to remain. HHDC would like this as well and has secured a five-year lease upon the close of escrow. Affordability HHDC is committed to providing this affordable housing to the existing residents of this building. When escrow closes, four of the seven existing households will have income at or below 80% of the Area Median Income (“AMI”), or low income. One of the tenants will be at 50% of the AMI, or very low income. One unit will be vacant and the remaining household will be just under 120% of the AMI, or moderate income. For the unit that will be vacant at the time escrow closes, HHDC is committed to finding a locally referred voucher holder to fill this vacancy. For the unit that is currently over income at 120% of the AMI, their unit will be filled with an income-qualifying household once they vacate. Without displacing any existing tenants the affordability goal for this property is: · Five units available to low income households at or below 80% of the AMI 6.3.E. - Page 5