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Home My WebLink About3/16/2021 Item 13, Smith Wilbanks, Megan From:Scott Smith < To:E-mail Council Website Cc:Johnson, Derek; Codron, Michael; Scott Smith Subject:City Council March 16 - Item 13 Housing Update Study Session - Anderson Hotel Attachments:HASLO Council Agenda Letter - Item 13 Housing Update - Anderson Hotel.pdf This message is from an External Source. Use caution when deciding to open attachments, click links, or respond. Dear City Council and management staff, Please consider the attached letter as our comments regarding tomorrow night’s Housing Element update and work program(s) for the coming year. Thanks in advance, Scott Smith Executive Director HASLO Housing Authority of San Luis Obispo 487 Leff Street San Luis Obispo, CA 93401 (805)594-5323 Visit our website at www.haslo.org 1 HISLO HOUSING AUTHORITY SAN LUIS OBISPO March 15, 2021 Subject: City Council Agenda Item 13-Housing Update Session -Anderson Hotel Dear City Council, I am writing regarding Item 13 on your agenda tonight, Study Session Housing Update. The City of San Luis Obispo has performed very well on housing issues the past 10 years despite difficult odds, and this is credited to a remarkable staff and leadership from a wonderful and visionary council. I wanted to bring to your attention a vitally important item that is not mentioned in tonight's staff report - the Anderson Hotel, its "at -risk" nature, and imminent loss from the City's affordable housing inventory. The Anderson is discussed on pages 37-40 of your 2020-2028 Housing Element as one of three important projects in the City that could be lost as affordable housing. From 2020-2028 City Housing Element a) Inventory of At -Risk Units Based on information provided by the City's Housing Authority, local non-profit housing providers, and the State Housing and Community Development Department, there are three affordable housing developments at risk of losing its affordability restrictions and converting to market rate between January 2021 and January 2028: and Adnance Court, the Anderson Hotel, and Poinsettia Street Apartments- Further discussion is provided below. Table 6: At -Risk Units in Adrianoe Court I Low and Moderate Income, Supportive Housing a Luis Obispo 2020-2028 Oivnen'Property Expiratim Manager Date Access Support Network y 2026 (formerly AIDS Support Network) Anderson Hotel ""� " ' " " "`' "" ".7' HASLO March 2021 68 Disabled Poinsettia Street Low Income HASLO January 2020 20 Apartments Total Assisted Units 97 Soume: History Anderson has provided affordable rental housing for very frail seniors and disabled in San Luis Obispo for at least the past 30 years. The average resident age is close to 70 and the average income is below $1,000/mo. HASLO has operated the Anderson or the past 20 years under a master lease with the HOUSING AUTHORITY OF SAN LUIS OBISPO 487 Leff Street PO Box 1289 San Luis Obispo, CA 93406 ph (805) 543-4478 fx (805) 543-4992 www.hasio.org City Council Agenda Item 13 March 16, 2021 HASLO - Anderson Hotel Page 2 owners, 955 Partnership. Earlier this year we were unfortunately unable to negotiate sustainable master lease renewal terms with 955 Partnership, and the Partnership offered the property for sale to market developers. This would almost certainly result in conversion of the housing to a non -affordable use, displacing all 68 residents and removing 68 deeply affordable rentals from the City's inventory. Reflecting on the "pipeline of (upcoming new construction) affordable projects" noted in tonight's staff report (packet page 99), it is disheartening to contemplate the real net gain when adding a downward adjuster for the loss of the 97 "at risk" rentals identified in the City's Housing Element. Today I am pleased to announce that this past week HASLO and 955 Partnership were successful in renegotiating a 1-year lease extension at the Anderson with includes an Option to Purchase granted to HASLO. HASLO's intent during this period is to raise sufficient capital and ultimately acquire and perform major renovations at the property. We anticipate most of the capital to come from private investment through the Low -Income Housing Tax Credit program. While we are excited about possibly preserving the Anderson as affordable housing, we cannot do this alone. We need good partners like the City to assist us. Specifically, we anticipate that we will require approximately $3 million from the City to leverage Low -Income Housing Tax Credits and other sources such as the Federal Home Loan Bank Affordable Housing Program or California's Multifamily Housing Program. All these programs are competitive and use local government matching funds as the tie breaker in making funding decisions. While we realize tonight is only a Housing Study Session, we are asking that you consider the Anderson preservation and matching funds as part of your upcoming work program for housing. We also realize that your Affordable Housing Fund may be committed to other projects at this point. However, we are only asking for a good faith commitment in the near term (6 months). Actual funding could be structured in phased disbursements if necessary. Other sources in addition to the City AHF that City might consider are a CDBG Section 108 loan, or possibly funding from local revenue measure G-20. Certainly, Anderson preservation is within the spirit of G-20, as the residents are very high risk of homelessness, a condition many experienced prior to moving to Anderson. Thank you for your consid�rat�on and genuine concern for our community. SinceI �� cott ecuector