HomeMy WebLinkAbout11/16/2010, C10 -PROPERTY DISPOSAL OF THREE CITY-OWNED AFFORDABLE HOUSINGcounci lj acEnaa RepoRt
Meeting Date
j //'//o
Item Number
C I T Y O F S A N L U I S O B I S P O
FROM :
John Mandeville, Community Development Director
Prepared By : Tyler Corey, Associate Planne r
SUBJECT : PROPERTY DISPOSAL OF THREE CITY-OWNED AFFORDABL E
HOUSING UNITS LOCATED AT 3591 SACRAMENTO DRIVE, #53 ; 359 2
BROAD STREET, #202 ; AND 3594 BROAD STREET, # 202 .
RECOMMENDATIO N
1. Authorize the disposal of three City-owned affordable housing properties .
2. Authorize the City Manager to execute property disposal documents .
DISCUSSIO N
Backgroun d
The City currently owns three affordable housing units that are now ready to be sold . One unit ,
located on 3591 Sacramento Drive, was purchased as part of a Foreclosure Prevention Progra m
authorized by the City Council . The other two units, located on 3592 & 3594 Broad Street, wil l
be purchased with Federal HOME program and CDBG funds for occupancy by very-low incom e
clients of Transitions Mental Health Association (TMHA), as approved by the City Council a s
part of the 2010 CDBG funding allocations .
3591 Sacramento Acquisitio n
The 3591 Sacramento Drive property was purchased in July 2009 to prevent foreclosure an d
bank sale of the unit at market price . The City originally held a Deed of Trust to secure long -
term affordability of the unit . The City's deed restriction did not prevent the first lien holde r
from selling the home at market price in the event of foreclosure . In order to prevent loss of th e
deed restricted unit, Council approved the use of the Affordable Housing Fund to purchase th e
property at the 2009 affordable sales price ($309,225).
3592 and 3594 Broad Street Acquisitions
The 3592 & 3594 Broad Street properties were acquired by the City in April 2010 . Counci l
authorized the reallocation of $180,000 from the Affordable Housing Fund on a temporary basi s
to leverage HOME and CDBG funds as part of the TMHA project to acquire the units fo r
affordable rental housing . TMHA intends to purchase the units from the City using CDBG fund s
from the 2010 program year . TMHA's purchase of the units is expected to fully refund the City's
Affordable Housing Fund investment . The units are one-bedroom, attached condominiums an d
are currently being rented by TMHA clients .
Council Agenda Report – GPC 110-1 0
November 16, 201 0
Page 2
Advisory Body Actio n
California law requires that before the City acquires, or disposes of, real property, it must refer th e
item to the Planning Commission for a determination of conformity with the General Pla n
(Government Code Section 65402). On October 27, 2010, the Planning Commission, on a 7-0
vote found that the disposal of three affordable housing properties was consistent with th e
General Plan (Attachment 2 — draft minutes). There was no public testimony on the item an d
Commission discussion was brief .
EVALUATIO N
General Plan Consistenc y
Sale of the City-owned affordable housing units is consistent with General Plan policies an d
programs related to affordable housing . Once the units are sold, the City will retain Deeds o f
Trust to secure long-term affordability . The City's ability to sell these units will allo w
Affordable Housing Fund money to go towards other affordable housing projects that directl y
implement General Plan policies and programs, without compromising the long-term
affordability of these units . The following General Plan Housing Element (HE) policies an d
programs support the sale of the units :
HE Policy 3 .2 Housing Conservation — "Discourage the removal or replacement of housin g
affordable to extremely low, very-low, low- and moderate income households by higher-cos t
housing, and avoid permit approvals, municipal actions or public projects that remove or
adversely impact such housing . . ."
Temporary acquisition of 3591 Sacramento Drive prevented the affordable housing unit fro m
being lost to foreclosure . It is time for the City to sell the unit to a qualified household and
return funds from the sale to the Affordable Housing Fund to go towards other affordabl e
housing projects .
HE Program 3 .13 — "Working with non-profit organizations, faith-based organizations, or th e
Housing Authority of the City of San Luis Obispo, the City will encourage rehabilitation o f
residential, commercial or industrial buildings to expand extremely low, very-low, low or
moderate income rental housing opportunities ."
The City is working with TMHA to purchase and manage the 3592 & 3594 Broad Street units a s
affordable rental housing with grant funding, which implements this program .
HE Policy 8 .8 Special Housing Needs — "Disperse special needs living facilities throughout the
City where public transit and commercial services are available, rather than concentrating the m
in one district ."
The THMA units are located along a transit corridor in a mixed-use development in clos e
proximity to services and retail .
Council Agenda Report – GPC 110-1 0
November 16, 201 0
Page 3
HE Program 2 .12 — "Help coordinate public and private sector actions to encourage th e
development of housing that meets the City's housing needs ."
City acquisition and sale of the affordable housing units are good examples of coordination wit h
other organizations to preserve and protect affordable housing to meet the City's housing needs .
Reason for Selling Propertie s
3591 Sacramento Drive
The Council's approval of an emergency foreclosure prevention program was intended to retai n
the unit as part of the City's affordable housing inventory by purchasing the unit until sale to a n
eligible household could be finalized . Long-term City ownership of affordable housing is no t
consistent with the goals of the City's Affordable Housing Program and involves substantia l
costs associated with staff time, maintenance responsibilities and Homeowner's Associatio n
dues . While rental income from the property offsets these costs, the City's affordable housin g
program does not have the resources to manage the property over the long term .
3592 &3594 Broad Stree t
TMHA is well suited to provide affordable housing services . The City has a long standing
relationship with TMHA and supports their activities . A recent TMHA study has shown that ou r
community is deficient in one-bedroom units available for low-income households . The sale o f
3592 & 3594 Broad Street to TMHA would assist them in addressing this identified need . Thes e
units have been occupied by TMHA clients since the City acquired them in early 2010, consisten t
with the provisions of a service agreement with the City . Sale of these units will remove the m
from City ownership and responsibility while retaining their affordability and reimbursing th e
affordable housing fund .
CONCURRENCE S
The Planning Commission reviewed the disposal of three City-owned affordable housin g
properties for General Plan conformity on October 27, 2010 . The Commission found th e
proposed property sales to be in conformance with the General Plan .
FISCAL IMPAC T
Council authorized the use of $489,225 from the Affordable Housing Fund ($309,225 for 359 1
Sacramento Drive and $180,000 for 3592 &3594 Broad Street) to purchase the properties on a
temporary basis . Proceeds from the property sales will refund the Affordable Housing Fund an d
allow money to go towards other affordable housing projects . The sale will have no impact o n
the General Fund . Staff will return to the City Council during closed session to discuss the sale s
prices for these units, which is expected to fully reimburse the City for its expenditures .
Council Agenda Report — GPC 110-1 0
November 16, 2010
Page 4
ALTERNATIVE S
1.Council may deny the proposal to sell three City-owned affordable housing properties .
Action denying the proposal should include the basis for denial . Staff does not recommen d
this alternative because City retention of the properties would result in long-term cost s
associated with Homeowner's Association dues and property maintenance responsibilities ,
including
2.Council may continue action, if more information is needed . Direction should be given t o
staff.
ATTACHMENT S
1. Vicinity map showing properties to be sol d
2. Draft Planning Commission minutes from the October 27, 2010 meetin g
3.Planning Commission Resolution No . PC-5552-1 0
4.Minutes from Council actions approving the use of Affordable Housing Fun d
money to purchase the units .
5.Council Resolutio n
T:\Council Agenda Reports\Community Development CAR\2010\GPC 110-10 CC Report
Attachment 1
N
3591 SACRAMENTO # 5 3
2592 & 3594 BROAD # 202 C10-5
Attachment 2DRAFT
SAN LUIS OBISP O
PLANNING COMMISSION MINUTE S
October 27, 201 0
ROLL CALL :
Present :Commissioners Michael Boswell, Michael Draze, Eric Meyer, Airli n
Singewald, Charles Stevenson, Vice-Chairperson Mary Whittlesey ,
and Chairperson Michael Multar i
Absent :Non e
Staff:Deputy Community Development Directors Doug Davidson and Ki m
Murry, Associate Planner Tyler Corey, Assistant City Attorney Andre a
Visveshwara, and Recording Secretary Janet Mille r
ACCEPTANCE OF THE AGENDA :The agenda was accepted as presented .
MINUTES :Minutes of October 13, 2010, were approved as presented .
PUBLIC COMMENTS ON NON-AGENDA ITEMS :There were no comments .
PUBLIC HEARINGS :
1 .City-wide .GPC 110-10 : General Plan Conformity for the sale of three City-owne d
affordable housing properties located at 3591 Sacramento Drive, #53 ; 3592 Broa d
Street, #202 ; and 3594 Broad Street, #202 ; City of San Luis Obispo, applicant .
(Tyler Corey )
Tyler Corey, Associate Planner, presented the staff report, recommending the Plannin g
Commission determine, and report to the City Council, that the proposed affordabl e
housing property sales are in conformance with the General Plan .
PUBLIC COMMENTS :There were no comments .
COMMISSION COMMENTS :
Commr . Stevenson supported the item and recommended approval of the staff
recommendation . Commr . Stevenson noted this item was an excellent example o f
organization and coordination between the City and Transitions Mental Healt h
Association to provide affordable housing in the community .
Chairperson Multari noted that an email had been received from Mr . Cross questionin g
sale of the units to the current tenants . Staff noted that the units have been offered fo r
sale to the community for a substantial length of time without success .
There were no further comments made from the Commission .
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Draft Planning Commission Minutes Attachment 2Meeting Date
Page 2
On motion by Commr . Stevenson, seconded by Commr . Draze, determining, an d
reporting to the City Council, that sale of three City-owned affordable housing propertie s
are in conformance with the General Plan .
AYES :Commrs . Boswell, Draze, Meyer, Singewald, Stevenson, Whittlesey, an d
Multar i
NOES :Non e
RECUSED :Non e
ABSENT :Non e
The motion passed on a 7 :0 vote .
Agenda Forecas t
e Commission was advised that the first meeting of November had bee n
c- elled . Chairperson Multari requested that staff consult the Commissio n
befo cancelling a meeting, as the Commission would like to use the availabl e
time fo ' iscussion periods . Staff noted that they would consult with the Chai r
prior to fu • meeting cancellations .
b . Budget Works •p – Goal Setting :Presented by Deputy Directors Dou g
Davidson and Kim l urry .
3 . 2011-2013 Planning Corn sion Goal-Setting and the Financial Plan/Budge t
Process .Doug Davidson - • Kim Murry reviewed the 2009-2011 Plannin g
Commission goals and provided overview of the Advisory Bodies' role in th e
budget process .
PUBLIC COMMENTS :There were no com m
COMMISSION COMMENTS :
Commr . Boswell requested an update on the funding s • us to complete the Railroa d
Safety Bike Trail .
Commr . Draze suggested the inclusion of goals that enhance th- sense of communit y
lending to a quality of life that is unique to the city .
Commr . Meyer suggested the Commission consider prioritizing completi . of the skat e
park in addition to bicycle trails . Commr . Meyer suggested reducing fees ssociate d
with secondary dwelling units in order to encourage more affordable housing .
Vice-Chair Whittlesey requested further information on the Nipomo-Palm Street pa r
structure . Chairperson Multari noted that funding for the structure is coming fr o
collection of in-lieu fees in the parking fund and not the General Fund .
C10-7
Attachment 3
RESOLUTION NO. PC-5552-1 0
A RESOLUTION OF THE SAN LUIS OBISPO PLANNIN G
COMMISSION DETERMINING THAT SALE OF THREE CITY-OWNE D
AFFORDABLE HOUSING PROPERTIES IS CONSISTENT WITH TH E
GENERAL PLAN (GPC 110-10 )
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a publi c
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, o n
October 27, 2010, for the purpose of considering application GPC 110-10, a request to sell thre e
(3) City-owned affordable housing properties ; and
WHEREAS, California law requires that before the City acquires, or disposes of, rea l
property, it must refer the item to the Planning Commission for a determination of conformit y
with the General Plan (Government Code Section 65402); and
WHEREAS, notices of said public hearing were made at the time and in the manne r
required by law ; and
WHEREAS, the Planning Commission has duly considered all evidence, including th e
testimony of the applicant, interested parties, and the evaluation and recommendations by staff
presented at said hearing .
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City o f
San Luis Obispo as follows :
Section 1 .Findings .Based upon all the evidence, the Commission makes the followin g
findings :
1.Sale of three City-owned affordable housing properties is consistent with General Pla n
goals and policies related to affordable housing because the proceeds from the sale will b e
used to support other affordable housing projects in the City and the sale will have n o
impact on the affordability of these units, which are encumbered by deed restrictions t o
ensure long-term affordability .
2.The project is exempt from environmental review under Class 12, Section 15312 (Surplu s
Government Property Sales), of the CEQA Guidelines .
Section 2 .Action .The Planning Commission does hereby determine that sale of thre e
City-owned affordable housing properties is consistent with the General Plan .
On motion by Commissioner Stevenson, seconded by Commissioner Draze, and on the followin g
roll call vote :
AYES :
Commrs. Stevenson, Draze, Singewald, Whittlesey, Multari, Boswell, and Meye r
NOES : None
REFRAIN : None
ABSENT : None
C10-8
Attachment 3
Planning Commission Resolution # PC-5552-1 0
GPC 110-1 0
Page 2
The foregoing resolution was passed and adopted this 27 th day of October 2010 .
Kim Murry, Secretar
Planning Commission
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Attachment 4
MINUTE S
MEETING OF THE CITY COUNCI L
CITY OF SAN LUIS OBISP O
TUESDAY, MARCH 2, 201 0
COUNCIL CHAMBER, 990 PALM STREE T
SAN LUIS OBISPO, CALIFORNI A
4 :00 P .M . — SPECIAL MEETIN G
ROLL CALL :
Council Members
Present:Council Members John Ashbaugh, Jan Howell Marx, Allen K . Settle, Vic e
Mayor Andrew Carter, and Mayor Dave Romer o
City Staff
Present :Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Shell y
Stanwyck, Assistant City Manager, and Elaina Cano, City Clerk, wer e
present at Roll Call . Other staff members presented reports or responded t o
questions as indicated in the minutes .
-----------------------------------------------------------------------------------------------------------
PRESENTATIO N
Dave Garth,President/CEO, Chamber of Commerce, presented its 2010 Vision Document .
Jeff Buckingham,Chairperson, Chamber of Commerce Economic Vision Task Force,Pierre
Rademaker,Pierre Rademaker Design, and John Ewan, Chairperson, Chamber o f
Commerce Board of Directors all spoke in support of the Chamber's 2010 Vision Document .
Council commended the Chamber of Commerce Economic Vision Task Force and staff for a
well designed and informative document .
---------------------------------------------------------------------------------------------------------------
PUBLIC HEARIN G
1 .CONSIDERATION OF 2010 COMMUNITY DEVELOPMENT BLOCK GRAN T
(CDBG) FUNDING RECOMMENDATIONS .
Community Development Director Mandeville introduced this item, following whic h
Housing Programs Manager Codron presented the agenda report and responded t o
questions .
Mayor Romero opened the public hearing .
The following speakers expressed their gratitude to the City for the proposed CDBG funds :
Jason Reed,Deputy Director to the Women's Shelter
David Rval,Mission Community Services Corporatio n
Jim Rendle r
1
1
C10-10
Attachment 4Page2City Council Meetin g
Tuesday, March 2, 201 0
Jill Bolster-White,Transition Mental Healt h
Manor Romero closed the public hearing .
Council spoke of their support of staffs recommendation .
ACTION :Moved by Settle/Ashbaugh,as recommended by the Human Relation sCommission, to adopt Resolution No . 10152 (2010 Series)to : 1 . Approve fundin g
recommendations for $629,608 of CDBG funds for the 2010 Program Year for projectsproposed by CAPSLO, Transitions Mental Health Association, Women's Shelter, City o fSan Luis Obispo and Mission Community Services Corporation . 2 . Reallocate $25,250 o f
2009 CDBG funds from the Anderson Hotel Window Replacement Project to the ne wAnderson Hotel Elevator Repair Project . 3 . Reallocate $9,750 of 2009 CDBG funds fro m
the Anderson Hotel Window Replacement Project to Property Acquisition (313 South). 4 .Reallocate $180,000 from the Affordable Housing Fund, First-Time Homebuyer Program ,
to a new program to acquire two, very-low income rental units on 3592 and 3594 Broa d
Street, to be managed and operated by Transitions Mental Health Association, an d
authorize the City Manager to execute a purchase agreement for the units ; motion carrie d5:0 .
By consensus, Council agreed to move the Council Liaison Reports and Communication sto follow Public Hearing Item 1 .
COUNCIL LIAISON REPORT S
Council M •er Ashbaug h reported on his attendance at the CAPSLO, Zone 9 and Count yWater Resour Board meetings .
Mayor Romero comme -,d on the items mentioned at the Zone 9 meeting .
Council Member Marx reporte•the Air Pollution Control District .
Vice Manor Carter reported on his atte nce at the CMC Citizen Advisory Committe emeeting.
Council Member Settle reported on his attendance he Airport Land Use Commission .
Mayor Romero reported on his attendance at the Nacimien ` • roject meeting .
1
1
COMMUNICATIONS,
Council discussed cancelling one meeting in August and one meeting in Dece - r i n
connection with past practices . Council directed staff to return to Council with a f orecommendation and action .
C10-11
Attachment 4
City Council Meetin g
Tuesday, July 7, 200 9
UTHORIZE THE CITY ATTORNEY TO COOPERATE WITH TH EL=OF CALIFORNIA CITIES, OTHER CITIES, AND COUNTIES I NLITIGATI •- LLENGING THE CONSTITUTIONALITY OF AN YSEIZURE BY ST -•VERNMENT OF THE CITY'S STREET
MAINTENANCE FUNDS .
ACTION :Moved by Carter/Settle to adopt Reso i •o . 10101 (2009 Series )
authorizing the City Attorney to cooperate with the Leag alifornia Cities ,other cities, and counties in litigation challenging the constitution .• any
seizure by state government of the City's maintenance funds ; motion c a
C12 .ALLOCATE $325,000 FROM THE AFFORDABLE HOUSING FUND .
ACTION :Moved by Carter/Settle to approve the use of $325,000 from th e
Affordable Housing Fund to purchase an affordable housing unit located on 359 1
Sacramento Drive, Unit #53, and appropriate funds accordingly ; motion carrie d5:0 .
13 .OFFICE OF TRAFFIC SAFETY SEATBELT ENFORCEMENT GRANT .
ACT : Moved by Carter/Settle to : 1 . Approve the submission of an applicatio n
to the - ' omia Office of Traffic Safety for a grant to fund officer overtime fo r
seatbelt en cement as part of the statewide "Click It or Ticket" program in a n
amount not to ceed $12,000 . 2 . Authorize the Chief of Police to accept th e
grant award if th- - ount is less than $12,000 and to execute all grantdocuments; motion . ' tied 5 :0 .
C14 .INTRODUCE AN • '• INANCE AMENDING PARKING METER RATE S
AND DEPOSIT OF P ING FINES AND FORFEITURES AND ADOP T
A RESOLUTION SETTI INES FOR EXPIRED METERS .
ACTION :Moved by Carter/Settle to a
approving an increase of the parking fin e
Municipal Code Section 10 .52 .050 (Expire d
1532 (2009 Series amending : a). San Luis Ob i
10 .52 .010 to reflect Council changes to parking m
Obispo Municipal Code Section 10 .64 .040 to reflec t
deposit of collected parking fines and forfeitures ; motio n
opposed).
PUBLIC HEARING S
1 .CONSIDERATION OF NEGATIVE DECLARATION O F
ENVIRONMENTAL IMPACT AND INTRODUCTION OF REVISE D
ORDINANCE REGULATING THE CLOSURE OR CONVERSION T O
OTHER USES OF MOBILE HOME PARKS WITHIN THE CITY .
C10-1 2
Page 4
1
1
Resolution No. 10102 (2009 Series )
violation of San Luis Obisp o
ters). 2 . Introduce Ordinance No .
Municipal Code Sectio n
rates; and b). San Lui s
ncil changes to th e
tied 4 :1 (Settle
Attachment 5
RESOLUTION NO .:XXX-1 0
A RESOLUTION OF THE CITY COUNCI L
OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE DISPOSA L
OF THREE CITY-OWNED AFFORDABLE HOUSING PROPERTIE S
AND CITY MANAGER EXECUTION OF PROPERTY DISPOSA L
DOCUMENT S
(GPC 110-10 )
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a publi c
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, o n
October 27, 2010, for the purpose of considering application GPC 110-10, a proposal to sel l
three City-owned affordable housing properties ; and
WHEREAS, California law requires that before the City acquires, or disposes of, rea l
property, it must refer the item to the Planning Commission for a determination of conformit y
with the General Plan (Government Code Section 65402); and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearin g
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, o n
November 16, 2010, for the purpose of considering Application GPC 110-10 ; and
WHEREAS, notices of said public hearing were made at the time and in the manne r
required by law ; and
WHEREAS, the City Council has duly considered all evidence, including the testimon y
of the applicant, interested parties, and the evaluation and recommendations by staff, presented a t
said hearing .
BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows :
Section 1 . Findings.Based upon all the evidence, the Council makes the followin g
findings :
1.Disposal of three City-owned affordable housing properties is consistent with General Pla n
goals and policies related to affordable housing because the proceeds from the sale will b e
used to support other affordable housing projects in the City and the sales will have n o
impact on the affordability of the units, which are encumbered by deed-restrictions to ensur e
long-term affordability .
2.The project is exempt from environmental review under Class 12, Section 15312 (Surplu s
Government Property Sales), of the CEQA Guidelines .
Section 2 .Action.The City Council does hereby authorize the disposal of three City -
owned affordable housing properties and City Manager execution of property disposal
documents .
C10-13
Attachment 5
Resolution No .
(2010 Series)
Page 2
Upon motion of , seconded by , and on the
following vote :
AYES :
NOES :
ABSENT :
The foregoing resolution was passed and adopted this 16th day of November 2010 .
Mayor David F . Romero
ATTEST :
Elaina Cano
City Cler k
APPROVED AS TO FORM :
C10-14