HomeMy WebLinkAboutR-11071 approving an Affordable Housing Fund award to Peoples' Self-Help Housing for Tiuron PlaceRESOLUTION NO. 11071 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING
FUND AWARD TO PEOPLES' SELF-HELP HOUSING CORPORATION
FOR TIBURON PLACE IN THE AMOUNT OF $700,000.
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California, on January 21, 2020, for the purpose
of considering a request for Affordable Housing Fund (AHF) assistance; and
WHEREAS, the proposed project, Tiburon Place, by Peoples' Self-Help Housing
Corporation (PSHHC) meets the award eligibility criteria established by the City Council; and
WHEREAS, Housing Element policies and programs encourage and support the
construction of new affordable housing in the City; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff at the said
meeting; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Finding . The City Council does hereby make the following findings in
support of the proposed AHF awards:
1. Eligibility: Use of the AHF for the requested purpose will increase or improve the
City's affordable housing inventory and promote General Plan policies regarding
housing, as follows:
Tiburon Place is eligible for Affordable Housing Funds because it increases the City's
affordable housing inventory and implements several General Plan policies regarding
housing. The project will increase the supply of affordable housing for extremely low,
very low, and low-income households with the construction of 68 units.
2. Need: There exists a substantial or overarching need for the type of unit to be assisted,
as follows:
By proposing 68 units, PSHHC is exceeding the required inclusionary units by 14 units
- a 25% increase. Housing needs in general are growing along the coastal areas and this
is particularly true for lower income households. San Luis Obispo will benefit greatly
from this development because of the increased density that comes with the proposal
as well as deeper AMI targeting.
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Resolution No. 11071 (2020 Series) Page 2
3. Suitability: The project to be assisted is appropriate for its location both in terms of
land use and design, as follows:
The Tiburon Place is ideally suited for this location, both in terms of land use and
design. The Orcutt Area Specific Plan (OASP) has given due attention to meeting the
needs of the lower income residents of the City. The rental housing proposed for this
funding will serve to implement the goals set by the OASP as well as fulfilling the
City's Regional Housing Needs Allocation (RHNA) goals.
4. Timing: The project would better serve the City's needs if it were built immediately as
opposed to later, as follows:
Tiburon Place has received all local approvals and is preparing to submit for building
permit applications. PSHHC has also been working closely with the owner of the
various Tracts the inclusionary housing requirement is associated with, Righetti Ranch
LP, on donating the land and preliminary site planning related to Tiburon Place's
location.
5. Financial Effectiveness: But for the requested funding, the project would not be
economically feasible; or AHF funding "leverages" significant additional funding from
other sources, as follows:
This is a highly effective use of the City's Affordable Housing Funds, as it will leverage
additional funding sources as they demonstrate local support and commitment to the
development. These funding sources include the Federal Home Loan Bank's
Affordable Housing Program (AHP), federal HOME and CDBG funds, and the State's
Affordable Housing Sustainable Communities grant program. Project financial
feasibility is dependent upon Affordable Housing Funds.
6. Readiness: The project has all necessary City approvals and is ready to proceed, as
follows:
PSHHC has obtained all the necessary City discretionary approvals for Tiburon Place.
Upon the award of a City Affordable Housing Fund award, PSHHC will be eligible to
apply for additional public funding programs and other private activity bond financing.
Should the project receive all funding, PSHHC anticipates starting construction in
2020.
SECTION 2. Environmental Determination. The project to award affordable housing
funds is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA
Guidelines. It can be seen with certainty that the proposed action to award grant funding will have
no significant effect on the environment.
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Resolution No. 11071 (2020 Series) Page 3
SECTION 3. AHF Award for Peoples Self-Help Housing Corporation. The City Council
does hereby approve an AHF award in an amount not to exceed $700,000, subject to the following
condition of approval:
1. Prior to release of any portion of the AHF award, the applicant shall enter into an
affordability agreement with the City for sixty-eight (68) for-rent affordable housing
units located at 3750 Bullock Lane for a term of fifty-five (55) years, which will be
recorded against the title of the property.
Upon motion of Council Member Christianson, seconded by Council Member Stewart, and
on the following roll call vote:
AYES:
RECUSED:
ABSENT:
Council Member Christianson, Stewart and Vice Mayor Gomez
Council Member Pease
Mayor Harmon
The foregoing resolution was adopted this 21st day of January 202
ATTEST:
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City Clerk
· stine Dietrick
/ ity Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this Z'<'" da~ of :Jruc,?$ , 2020.
Teresa Purrington
City Clerk
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