AgdaPkt 2009-07-13 clsd and jnt - Laserfiche WebLink

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6.3A 4. Sustainabilitv of Sinale Room Occupancy (SRO) Type Housina - The project's Page 3 unit size will allow the City to provide housing to a segment of the population that typically does not have the opportunity to compete in family housing developments. Individuals, and small families, including seniors, can occupy the units for a 55 year affordability term. Studio units will be the future replacement housing for SRO units like the Sequoia Hotel and Pacific Euro which will likely not be reconstructed elsewhere when they are converted to other uses. Should the City's SRO housing stock be redeveloped in the. future, studio units would be the appropriate sized housing units for many of the long term residents who may be displaced from transient hotel housing stock. 5. Revenue Source for Tenant Services - Ongoing property management will be paid from rent revenue received from the property. Based on the going rate for property management services, and actual operating expenses, according to MidPeninsula Housing Management Corporation who is accustomed to operating multifamily housing, the property will also produce an excess income stream of over $50,000 per year that can be used to provide services to the tenants and build a replacement reserve account for future repairs and maintenance of the property. Current rents are under $1,000 per month. 6. Bradford Street Site Acauisition Compliance Timeline - In budget for Fiscal Year 2005-2006, Council allocated approximately $526,979 from 2004-2005 and 2005-2006 program funds for acquisition of a vacant parcel at 700 Bradford Street targeted for senior housing and childcare. The Bradford Street site was acquired in 2007 but has not proceeded to meet Consolidated Plan performance timelines and units will not be available for occupancy by June 30, 2010. COSG and HOME funds allocated to Bradford Street acquisition ($526,979) will be repaid and used in the acquisition of 1306 Main Street. This encumbrance of ROA Housing funds will resolve the City's federal compliance problem allowing the Redevelopment Agency to retain the Bradford Street site for future housing. 7. Reauirements for HOME Fundina - The City is required to commit its HOME funds within 24 months from the date of grant award. In April 2001, the Council adopted Resolution # 14207 approving a Timely Expenditure Plan to provide for reprogramming funds annually in order to meet COSG and HOME expenditure and commitment timelines if activities did not proceed. HOME funds were allocated to Kainos and Living City Partners in 2007 and 2008 respectively; neither were able to expend the funds in a timely manner, nor have projects in the pipeline that would proceed within the next 90 days. Additionally, COBG and HOME funds for acquisition are held in a site acquisition for affordable housing program until a viable project is identified. Funds are then transferred to the activity that is ready to proceed. The site acquisition for affordable housing project budget also included prior year HOME funds. The HHCC recommends that these funds be reprogrammed to the Housing First Acquisition project, the activity most ready to proceed in the 2009-2010 funding allocation process. Over $400,000 stands to be lost if the funds are not committed by July 31, 2009. Additionally, if the project does not proceed, the City will lose $325,000 allocated by the San Mateo County Office of Housing toward the acquisition of this property.