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A � 6.1. E. - Page 48 - - ;: - �� ,�� Pro'ect T e: NEW CONSTRUCTION- OWNER QCCUPIED Redevelopment Agency Cantact: Name (Area Code) Telephone # Project/Program Namc: Project or Program Descriptian During the reporting year, construction of 12 homes was completed. Enterprises, which specializes in community self-help projects, was the developer, assisting 12 faznilies in the construction of their new hames. The homes took 10 months to build. The families' work on the homes was converted into "sweat equity" valued at $ I5,000. The first nnortgage vvas from CHFA. Families were also given an afforclable second mortgage. The second az�d third mortgage loans were funded by LMIHF and HOME funds. HiStOrv The _ �City or County) of stxuggled for several years over what to do about the area, The kried to encourage development in the area by rezoning a large portion of the axea far multi-family use, and twice attempted to create itnprovement districts. None of these efforts were successful and the area continued to deteriorate, spaxking growing concern among city off cia�s and residents. At the paint that the R�development Agency becarne involved, �here was siginificant ilZ will between the xesidents of the and the (City or County). The introduced the project in with discussions ofhow t1�e Agency could become involved in improving the bligkited residen�ial neighborhood centering on . This area is in the core area of town and was developed with disproportionately narrow, deep lots, ba�ed on a subdivision plat laid in 1950. Residents built their homes on the street ftontages of and leaving large back-lot areas that wexe landlocked and unsuitable �ox development, having no access to either avenue. Th� Agency worked with 24 property owners to purchase portions of their properties. Over several years, the Agency purchased enough property to complete a tract map creating access and Iots far building. Other non-profits have creatad an additional twelve affardable homes. Agency Role The Agency played the central role. The Project is a classic exacnple of succes�fuI redevelopment. All elements of blig�t were present: i�xegular, land-lacked parcels without access; numerous property owners; development that lagged behind that of the surrounding municipal property; high development cost due to need �or installation of street improvements, utilities, a storm drain system, and undergrounding of a flood control creek; and a low-income neighborhood in which property sale prices would not support high development costs. The Agency determined that the best development for tbe area would be single-family owner-occupied homes. The Agency bonded its ta�c increment to fiznd the off-site impravements. A tract map was completed providing for the installation of the street improvements, utilities, storm drainage, and the undexgrounding of Creek. These improvements cost the Agency approxirnately $1.5 miZlion. in lieu of using the eminent doznain process, the Agency negotiated with 22 properry owr�ers to purchase portions of their pxoperty, allowing for access to the landlocked parcels. This helped foster mzst and good will during the course of the rzegotiations. The Project got underway once sufficient property was purchased. California Rede� Agencies — Fiscal Year 20 E 0-2011 HCD-C Sch C(Revised: 7-22-11) Page 11 of 1 l