HomeMy WebLinkAbout08/04/2009, B 1 - AFFORDABLE HOUSING FUND AWARD FOR A 42-UNIT APARTMENT PROJECT TO BE DEVELOPED AS PART OF THE VILLAG 2 council
acje oA RepoRt TU.Number J'7
CITY O F SAN LUIS O B I S P O
FROM: John Mandeville, Community Development Direct r
Prepared By: Michael Codron,Housing.Programs Manager
SUBJECT: AFFORDABLE HOUSING FUND AWARD FOR A 42-UNIT
APARTMENT PROJECT TO BE DEVELOPED AS PART OF THE
VILLAGES AT BROAD STREET PROJECT (2238 Broad Street).
RECOMMENDATION
Adopt a resolution approving a loan of $1.8 million for ROEM Corporation, including
$1,034,448 from the Affordable Housing Fund and $765,552 from deferred impact fees, in
exchange for developing a 42-unit affordable housing project, including 41 deed-restricted
affordable units and one manager's unit at 2238 Broad Street.
DISCUSSION
Situation
On September 10, 2008, the Planning Commission approved a use permit for The Village at
Broad Street project, a major redevelopment at the corner of Broad Street and South Street
(Attachment 1, Vicinity Map). The project site includes three separate parcels with common
circulation improvements and includes a plan to improve Emily Street with paving, curb, gutter,
and sidewalk between Santa Barbara Street and Alphonso Street (Attachment 2, Project Plans).
ROEM Corporation, a for-profit, affordable housing developer and general contractor is now
proposing to move forward and develop one of the parcels with affordable housing.
Affordable Housing Incentives Requested
The ROEM proposal to develop affordable housing is contingent on City approval of a
$1.800,000 million loan, and approval by the California Tax Credit Allocation Committee for
$1,493,365 in tax credits to help finance the project (Attachment 3, Funding Request).
The City's $1.8 million loan includes $1,034,448 from the City's Affordable Housing Fund
(AHF) and $765,552 of deferred impact fees, as follows:
Fee Amount Per Unit Unit Total Total Deferred
Water Impact Fee $12,735 41 522,135
Wastewater Impact Fee $3,079 41 126,239
Traffic Impact Fee $2,858 41 117,178
Total $18,672 41 $765,552
The City's contribution to the project is made in the form of a "soft" loan, or forgivable loan,
because repayment would not be expected as long as the affordable housing component is
developed and occupied by income-eligible households. The term of the proposed soft loan
The Village at Broad Street Affordable Housing Page 2
would be 30 years at 4% simple interest, with no periodic payments required. The City and
ROEM Corporation would enter into a separate affordability agreement to ensure on-going
affordability for 55 years.
Current Policy Supports Impact Fee Deferral
The proposal to defer the impact fees associated with the proposed affordable housing units is
consistent with existing City policy. Council Resolution No. 9903 (2007 Series) waives
development impact fees for affordable housing projects that exceed the inclusionary housing
requirement (Attachment 4). In this case, staff is recommending that the "fee waiver" take the
form of a soft loan,which was requested by ROEM and is common for projects financed with tax
credit allocations.
Award Criteria
Council Resolution No. 9263 (2001 Series) established the criteria that staff uses to guide its
recommendations regarding AHF awards (Attachment 5). These standards include eligibility,
need, suitability, timing, financial effectiveness and readiness. The proposed project is consistent
with each of the standards for evaluation, as highlighted below.
Eligibility: The project is eligible for AHF assistance because it will result in deed-restrictions
for 41 low-income and very-low income units for a term of 55 years.
Need: There exists a substantial need for the proposed type of affordable housing. The building
floor plans include 24 three-bedroom units, 16 two-bedroom units and two one-bedroom units.
The level of affordability of a unit is based on affordability to an eligible household with an
income represented as a percentage of Area Median Income (AMI). The income targeting for the
ROEM proposal includes:
5 units @ 30%AMI
5 units @ 40%AMI
21 units @ 50%AMI
10 units @ 60%AMI
Based on the City's Affordable Housing Standards, this affordability targeting translates into 5
units affordable to extremely-low income households, 26 units affordable to very-low income
households, and 10 units affordable to low income households. The City's Regional Housing
Needs Allocation (RHNA) for the 2009-2014 period establishes a goal of 366 new extremely
low-income and low-income units combined, and 254 new low income units.
Suitability: The project is particularly suited to the mid-town location because residents will
have access to schools, parks and employment opportunities in the surrounding urban area.
Transportation options include bus routes and bike paths that are located immediately adjacent to
the site.
Timing: The timing of the award is critical because funding must be approved no later than
August 17, 2009, to complete ROEM's application to the California Tax Credit Allocation
Committee for the 2009, 9% tax credit round. 9% refers to the percentage of the project's
BI-C)
` J
The Village at Broad Street Affordable Housing Page 3
eligible cost basis that a purchaser of the tax credit can deduct from their annual tax liability.
Congress established the tax credit program in 1986 to provide a method for investors to offset
their tax liability in a manner that provides essential funding for the construction of affordable
housing.
Financial Effectiveness: The proposed affordable housing fund award leverages substantial
equity contributed by the developer and a tax credit allocation of$1,493,365.
Readiness: The project has all of its required City approvals and can be carried forward with the
approval of the recommended financial incentives. Specifically, the project is located on one of
three parcels that are part of a coordinated development plan. The Planning Commission has
approved a use permit for the overall project, and the minor plan revisions proposed by ROEM
have been determined to be consistent with the approved use permit. On August, 3, 2009, the
Architectural Review Commission will review minor site plan and building design changes
proposed by ROEM and the ABC's decision will be reported to the Council during the meeting
on August 4`h. With respect to the remaining phases of the project, it is the City's expectation
that they will also be carried out in a manner that is consistent with the approved use permit and
the site plan previously approved by the Planning Commission (Attachment 6, Approved Village
at Broad Street Site Plan).
Status of the Affordable Housing Fund
In addition to the criteria evaluated above, staff considers the following issues when
recommending approval of Affordable Housing Fund awards:
1. What is the balance of the fund and how quickly can allocated AHF balances be restored
for future projects?
As shown in Attachment 7, the AHF currently has $1,596,775 available to allocate to new
projects. If the ROEM funding request is approved, the available balance of the fund will be
reduced to $562,327. Two sources of revenue are expected the raise the fund balance by an
additional $600,000 by the end of the year. These include proceeds from the sale of 3591
Sacramento, Unit #53 ($309,225), and State reimbursement for down payment assistance through
the BEGIN program at Laurel Creek($300,000). The fund will also continue to grow through its
main source of revenue, which is the collection of in-lieu fees and accrued interest. Staff
estimates conservatively that the balance of the AHF available to allocate to new projects at the
end of the 2009 calendar year will be$1,250,000.
Net Available for New Programs at June 30,2009 $1,596,775
Requests/ProposedCurrent
The Village at Broad(ROEM Development) 41 units $1,034,448
Net Available for New Programs if Current Request Approved $562,327
2. How does the current proposal compare to other requests for AHF assistance?
Although there are currently no other proposals for funding from the AHF, the current proposal
compares favorably to other projects that have been awarded in the past. The project is
81-3
I
The Village at Broad StreetAffordable Housing Page 4
particularly attractive because it is a "family"project, with a majority of the apartments including
three bedrooms. The project also compares favorably because of its location proximate to City
employment centers and Hawthorne Elementary, and because it is a component of a larger
development project that will serve as an anchor for redevelopment in the Broad Street corridor.
3. What is the cost per unit of the proposed AHF award, and how does this compare to costs
for other units of the same type and affordability?
The cost of the proposed award is $25,230 per affordable unit. This cost compares favorably to
other projects that have been awarded funding and would lower the average cost per unit funded
by the AHF from $34,700 per unit to $32,400 per unit. Including the 41 units proposed by
ROEM, the AHF has provided financial support for 170 existing and planned affordable housing
units.
Project Phasing and Coordination of Public Improvements
The approved mixed-use project includes a total of 34,350 square feet of commercial space and
70 apartment units. Parcel 3, the site controlled by ROEM, would include 42 units and
approximately 7,500 square feet of commercial floor area, with an additional 3,000 square feet of
common recreational space for residents on the ground floor of the commercial building. The
project site also includes a creek amenity that will be enhanced to augment a large outdoor use
area for residents.
Staff has been working with ROEM and the property owner, H&D Maymont LLC, to coordinate
development plans and ensure that phasing of public improvements occurs in a manner that
addresses all of the project's conditions of approval. For instance, development of the affordable
housing project will include completion of improvements to Emily Street, providing access to the
site and establishing the major unifying feature of the overall development plan, which includes
three separate parcels. ROEM Corporation will also be providing funding for and completing
required improvements to the Broad/South intersection during the first phase of construction.
FISCAL IMPACTS
The recommended financial award of$1, 034,448 million would be paid out of the Affordable
Housing Fund, which consists of in-lieu fees collected under the City's Inclusionary Housing
Ordinance. The fund may only be used for projects or purposes that create or support affordable
housing within the City of San Luis Obispo. Based on prior expenditures and pending
commitments, there will be a balance of $562,327 remaining in the AHF to allocate to new
project after this award. By the end of the calendar year, the available balance is expected to
increase to $1.25 million. The project will have no impact on the General Fund.
ALTERNATIVES
1. Do not authorize an AHF award for the proposed project. This action is not
recommended because the proposed affordable housing incentives is necessary for the
project to leverage State tax credits and complete financing for the project.
The Village at Broad Street Affordable Housing Page 5
2. Approve an AHF award for a different amount. The City Council can approve an
award for a different amount than the recommendation. This is not recommended
because the current recommendation is intended to reflect the project pro-forma budget
amounts and ROEM's application to the California Tax Credit Allocation Committee.
3. Continue consideration of the proposed award. The City Council can direct staff to
return with additional information regarding the project so that a final decision on the
award amount can be made. This alternative is not recommended because the deadline
for the tax credit application is August 17,2009.
ATTACHMENTS
1. Vicinity Map
2. Project Plans
3. ROEM Corporation Funding Request
4. Council Resolution No. 9903 (2007 Series)
5. Council Resolution No. 9263 (2001 Series)
6. Approved Overall Village at Broad Street Site Plan
7. Affordable Housing Fund Status Report
8. Resolution Approving ROEM Funding Request
COUNCIL READING FILE
ROEM Corporation Statement of Qualification and Development Proposal
The Village at Broad Street 2009 Competitive 9%Application For'Low-Income Housing Tax
Credits, June 9,2009
G:\CD-P CAN\MCODRON\Housing\ROEM\ROEM(CAR).doc
..J� J
( 'i VIC1tti { lAj>
`•1 • ` ,F,` • •a $�`�j r Al I y •t, jam``
..
I �� Vii/ r� '�. � �. . i C� �',�� ;xA•
• ,�_�, - �/' `r �} a /y vol,
V..'a,� •-"�•
K� :•
•.7 0 � v/ �` 6� `' r t f• Wig:
IEMILY
iF
Jog
T
-� i - ' -• �_.�E �'G`hk7f G.��'i'if��"�i�,` +,] r•� �j{b°' ic�, ✓ may.�.: '.� � , , ;
.` � �� - j•i. R � ����/� '�' .�� � } ca '�,, � 11777 (� r
� ,.ar ✓ ," � r i t +tet
T
4
���V y %• s {IICt�Sbby
� nen +ir � ''4--.+ :;1��7 /� �C� - `� .. �^� c•...r
rt✓`� �,. r�� � Lr -!z•.
1 t � . •.R
w k7,
,.'.. • r RCM;'��`•'L 1i�� � rN/���r '�-���'" " `�
II a 4 f
I IfR �w
atp
• 1� 1j': ;9F
nN
NNE
sss ■�s � _
■rs nti� e' R�
nE asses � �
i\� �;,: ■���1' � norm=
`r calf
OD9S-"6(90) 121m
— —
rO'nmMrtxvs {{ Atta! ; t
1s 3u�rin os9�NOIdryOd 80J VINNoinvo,oaI90 Still NYS � 1►'j0� � 9 133211S dVONG iV 30VIIIA 3H1 -
m
A N
-a LPI
fe a-
06$ I1 1 Hill
, .0 QC�edrcd
r
S osuogft
ER$ , � N'^a� .. ,rte •
AC �tnn. eeee �yyy^
c c I
j
6 x \,
/ y t
CL
AM
z
I
Attallfft 2
g tS#g9;9 131' 8 a t 1111 1z I If If az'-j.8
5
e ?��� N
li fill
off ff,f D
If j p`!j 1 (i Il f ji f �s LUO
o �71 �;; fill �113� �31= = O
LU
M
LUS
W1L
LL —
L UJ \ - _ 1331LLS OSNONdW
w
IL
IL
iS
I a
W
ICL
dof
n -f�
ea
0095-re DVI :hl
-m
v�'rnn�vtHvs �1 °
'IS auaavdnosoi to-711 /7 N
,vouvu1
odmoo VINsojnv7'OdSIROsi NVS _ 4:7)
�
�U� ■ice $ EMS GV089 IV 3JHllln 3Hl 13/
Y °
E8 yy�
m 8
I s�Eg m m e
rg�3 9
= o a� g �kf 'ggS 9$ e j
E g5, e ENC.
>5z' m2 ' � 1� &
H19i
I y g9 ms
i 8� �L� � I m �z %a
I
- l R r1 C
I
I
c
osm
CL
7 ♦ u _ pe R
G 1pptjpp��
B I-/D
OD9S-C96�YOV) lai a nt
va vav7J VI"S
'1S 31L3Av3V'1059I ����� U ��%
ry
vor�vaodao� �� g VINNOJIIVO1
'OdSSOsi NVS _m ��S
lwaou �3 133&S CIVON9 iV 30V-nln 3H1
_a
s36
F
I _m
I sg
I
I
L
r
I
I
I II
I II
L
I I
q
II
m II
M C 01a
II
I
II
r
I 11
I II
I
I
I
L
r
I
I m
a
I as
I
L
r
r sst r
g1-11
V�� �s Att cint 2
'1S vt LaAY"I US9l
Noll va oa9 of o VINmo0 nVJ'OdSISO SIM NVS
►Zou 1332115 CIV089 lb 30VIIIA 3H1
—0
N N
CL
� w
s` -
s
s`
w
N a a
CL
u' r
cl
r
Q.. a
a
m �
. w
0
® I
N � N
a
e
w
e
w
i
N I N.
ff
AL-1L
131-ia
009S-9S6(SW):Pl _m a t
VD fuv7J V1NY5 �':�7 !1
'153.u3AV"Ios91 W�Al I _ ��/r
NO Id VBoda of VINMOdIIV�'OdS19051f11NVS —m fl.t ,
13381S OVONS lb' 30`dllln 3H1 m
--- - - --- --- - - ---
M M
a ; a
I
II
II II
I, I,
cn
rl II i
IL ' Ji I
I 1
LL
1 I I I
r
--- - - --- --- - - ---
1 I I I
II rl
II ,I
II II
IL JI
1 I
M M co M
_J
MA C�1-13
m-
vOIJ,VHOdaOJ I�� Y VIN80411VO'OdS190SIM NVS _a
Atte nt 2
Waou US 1338iS GVONS iV 30`d nlA 3H1 -" -
_p
L
W
m
m
.LC..
LL
a
o c�
m
ci
v %A`
CL u.y sL FIE
C m N m O
N a I
I
IE
Fc
g
S ® O
E
b E E
S
C� m m
IC$I �
a
00
b L gjE
eE O
%A
ra AVAe
LW
s / fL
co b N m
7 v 0 .C•.
t C LL Q Q N
p b N
IL
v a
d c c o
N
8El � , 00 1 ER
b
LJ LJ E o '{
gg C V Sm w
arc ❑ x �'
Qm
LL p m
Q)
r\ (Do
c E g`E. q0
'o $
.8 m im II O § ao
J
�1- l�
oays"I(aov)apt T —m —
v�v�m�vtrrvs � _ 1llv6rortvaVINdOJIlVO'OdS190SU1lNVS Q
1338iS GVON9 IV 3E)VIIIn 3Hl m� =
xvw
.o-54
CL
c
8 q
p m
w. ¢ n ; c
E � LD f9 5 E
T�g3
m� § � � > >�
z a
z
awico cai3mcim8
ff
m
6(u m W
W
fl
F�
W
m
° W
� � C
E
_ LL
r
N L''
Yr �
+h
nImm '
:4
r�
j
T31-►5
•:n
�4 s
lRt+�
� I/0r ��1lIOO�Ig i S ;
I Iiifl �I�S00 r.�w@lr♦�0'
1 i eri I�Isia ,I NEW
i Il07 r F Pt {
It:
tn ,
— NeM _rc
X38, /iei �.•�r
fff� Isrr- ItiO, tt' r;
z
IJ ... ■ Iffi. last
�
OL, iAlc
p
�Irzslwa9r� �:i. �
goal
`"y •w • ,�•syiidL013
y.d�' 000:0 Cee:311 J.
!E .
W "3
el100t,i1 I..0,�1 i� y
q�
gl�'�K4
I III� G��ll����_ "arterr..nd
r1
a_
r'�?f
009 j �0
VJYNYlla VV1NY5 � ! Att
153113AVdV70t91 MaTol t I - °' n
NOld V80dNUJ � g YINNOAIlVO'OdSlSO si ll NYS _m ,
lKaou C:7;z 1' IMES GVON8 ld BOV'nln 3Hl
xvw
.o-se
Ex _ m
U L°
g m m
E
� §y�m>
m
Y. t5
e`
6t c
=dy3C=O 7tg
m
���i vivui to
r• v a.
i
i
p i
y
W
32 x 2
nw ti
e
.r,
t
0 ,VTVIT)VI VS r ro I ^gnY
'1531J.3AYdY'1 OS9I ����! � �' VV
NO11YHodNOJ 0VNd0df1V0'0dS190simNVS
133211$ dd _m
►`g®� 0d9 iV 30VIIIn 3H1 -'
-0
.,ttRr 4
'r
y-
t ,a
£ W
t U
r ti 4 W
m
P.
4
. 1 •
x,
Y �
1
xr®® y•
i
�:.�� n>•�i�` yam; _ j `
f tam i{' y4
r® �j9°(i of ��r;''t`•a-=BPS'
i��jj \ � N � L �+•
� it 4�+�`W111t
� ���JS87i�f�i58 "'k ate' ' lll�
EUa I
k
.. � I ,tea►. �,. � �
+mass
i
i
0211,
'hi�
.�i L ���! i t t i 'c�'.e."?�.a-���a•.c/A vim- ,
-..c"O ,
¢5;; �, I• � aem
rTal
zxfr"i i
1 t
'r kt-
y�w 196 u
L 4
.. i•�l
• •. :•
MOM
RR
1
+Skhi Jif:' /
drrlr� t <
�.�O K
�• i we>,wmjti ��iL::.l,war aS 1�.aV �7+,I _
�.\S'. " FLS./ yt >•.r `` _
.V
.r w ..II � �1�/•/II
d`
r
i� �� i!i � i �� ii: I. DT v i\ !I f® � iwi�� iM ■il � §?N ii\�,
is r pa It �6 ins,�
V��
i4.t_s�,9e
� —
�,� �yw t� �� X`��'+•''e�Ei'�� ����../�,I�� 1y�'a.�g4Ei®�.{ �.`'C'�' f��' t:i �9���.�� w •�II' s'�
jay a -.�i� � �_��( i � u i i _•��� .I, i .7 t'��� • � �
CSoil
I Y
vt p
h
Is O6�
Attachment 3
CITY Of SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
i
DEVELOPMENT TEAM ?able of Contents
ROEM'.
DEVELOPMENT 2• DEVELOPMENT TEAM
ROEA4 Development Corporation
1650 Lafayette Street Contact:
Santa Clara, CA 95050 Jim Rendler, Director of Land Acquisition
Phone 408-984-5600 jrendler@roemcorp.com
Fax 408-984-3111 310-892-7323
www.roemcorp.com
As a California C Corporation, ROEM Development Corporation will be forming a
special purpose limited liability company-, which will request gap financing from the
City of San Luis Obispo.The executives of ROEM include:
• Robert Emami,President/CEO
• Jonathan Emami,Vice-President
• Marcus Griffin,Director of Finance
Robert Emami, President and CEO of ROEM Development Corporation, has been
building new communities in Northern California for almost 30 years. He began his
career in real estate as a broker managing a highly successful office of 30 agents in
the late 70's and on through the early 80's. After several joint ventures, he discov-
ered his passion was not just selling housing homes, but also building them. In 1988,
he founded ROEM Development Corporation and began doing jun that As pro-
jects became larger it was no longer feasible for ROEM to self-perform the majority
of the construction work involved in building a quality home.
Therefore, in 1999, ROEM Builders Inc.was founded as the general contractor and
construction management firm of ROEM Development Corporation.With the con-
struction and development efforts separated, the new divisions formed:a Develop-
ment entity handling acquisitions, planning, design, financing,and overall project de-
velopment,and a General Contracting side overseeing all project construction.This
integrated structure has not only promoted higher quality projects, but has also
improved our project budgets, timelines, and overall management while giving
ROEM ultimate control and responsibility of development from the beginning to
end.
In early 2002, ROEM founded yet another subsidiary, MIRO Design Group as a
planning and architecture firm. The addition of this in-house architectural firm not
only strengthened the foundation of ROEM Corporation, but also entitled more
control over the success of the projects ROEM develops as a cutting edge design
firm.
Though growing constantly throughout the years,ROEM has never lost its focus on
developing projects that are at the pinnacle of industry standards.This commitment
to quality has led to ROEM winning numerous awards, such as the Silicon Valley
Business Journal's Developer of the Year for 2004 and Multifamily Housing Devel-
ROEM 3
CORPORATION
B i -a3
Attachment
v
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
:9i b
Table of Co ntenm opment of the Year in 2005 for Corde Terra Apartments. In 2006, ROEM was
awarded the Best Affordable Housing Development of the Year by the Silicon Valley
Business Journal for the Bella Castello Apartments project ROEM was also runner
up for the Silicon Valley Business Journal's Developer of the Year and the Mixed-
use Project of the Year for its Montecito Vista Urban Village Master Planned Devel-
2. DEVELOPMENT TEAM opment while MIRO Design Group was a finalist for the Architecture/Design Firm
of the Year. Most recently NALHFA, the National Association of Local Housing
Finance Agencies,awarded ROEM Corporation and the City of San Jose the annual
Multifamily Excellence Award in recognition of Corde Terra Village. We pride our-
selves on working with existing neighborhoods and delivering products that exceed
expectations. In our pursuit of excellence,there is simply no substitute forcreativ-
ity,honesty and hard work.
ROEM's Mission
ROEM Corporation is committed to creating high-quality, high-value infill communi-
ties for everyone.Through integrated and innovative planning, design,development,
construction management, and marketing we provide innovative solutions to com-
plicated urban housing and commercial demands.As a model developer for the 21st
century, we will continue to collaborate with municipalities, academia of higher
learning and community residents to achieve our collective goals for the future
character of our surrounding urban fabric and the families who dwell within it
Vision
The cornerstone of ROEM's corporate philosophy is an unwavering commitment to
bringing communities together through quality housing. It is the passion of our
CEO,Robert Emami,to provide quality housing for both market rate-and affordable
demands.Our target markets are comprised of:
• Infill mid-density single-family or high-density multi-family market-rate housing
• Master-planned mixed-use,mixed-income,mixed-density development
• Affordable high-density family and senior housing
To meet the demands of a changing market and industry. ROEM progressively
works to establish communities of mixed-income, mixed-use, and mixed-densities
within an infill urban framework. ROEM's integrated design and development ap-
proach provides the flexibility to explore innovative responses to questions posed
by an uncertain and ever-changing industry.
Sustainable Development
ROEM is committed to creating wholesome communities that are not only sustain-
able, eco-friendly and green; but are designed smarter and built better to ensure
that residents and visitors are healthier, happier, and safer. The U.S. EPA defines a
sustainable development as "a development that meets the needs of the present
Without compromising the ability of future generations to meet their own needs."
As stewards of the environment, ROEM takes this concept of sustainability to heart
when developing a project. Our ultimate goal is to be innovative and competitive
' while improving the quality of life of those residing and visiting our communities.As
µ such, for all of our future affordable communities, ROEM intends to pursue certifi-
Bulid R cation under USGBC's LEED (Leadership in Energy and Environmental Design) pro-
GREEWgram and/or under Build It Green GreenPoint Rated program.
ROEM Development Corporation is a registered member of USGBC and Build It Green.
MEMBER Our staff are Certified Green Building Professional,GreenPoint Raters,and LEM AP.
4 ROEM
CORPORATION
13 I —att
Attachment 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
„S 11
a
PROPOSED PROJECT CONCEPT Table Of Conteaft
Project Narrative
ROEM has thoroughly reviewed the San Luis Obispo Affordable Housing
Standards 2009. We view the subject site as a landmark opportunity to cre-
ate much needed affordable family rental housing along a major transporta-
tion corridor. Such a strong central location will allow residents the oppor-
tunity to walk to transit, schools, employment, recreation, and retail stores.
The vision and goals for Broad Street Apartments are as follows:
• Offer a diversity of housing opportunities for Son Luis Obispo residents;
• Preserve viable businesses as on integral part of the district;and 5. PROPOSED PROJECT CONCEPT
• Promote a compact and pedestrian friendly atmosphere.
Harnessing our unique corporate structure with synergistic working rela-
tionships among developers, architects and contractors, ROEM will be able
to successfully develop an innovative urban infill community through close
collaboration with the City and community stakeholders so the project will
be completed on schedule and within budget
Supporting City Goals
As a market rate and affordable housing developer, ROEM's highly experi-
enced development team of designers and builders will work closely with
City staff and community representatives to successfully finance, and de-
velop a well designed residential project Our development staff will seek to
maximize the utilization of the subject site by formulating an effective strat-
egy to develop an attractive affordable housing community that integrates
with the surrounding neighborhood and retail district
Specifically, ROEM confidently can meet the following objectives:
• Maximize the number affordable housing units and restrict affordability for a
minimum of 55 years,
• Enhance the neighborhood of the proposed project,
• Provide safe,secure housing that does not create barriers between it and the
neighborhood
• Provide exceptional property management services at a comparable level of
market rate community
• Take advantage of access to low and moderate wage earning jobs in the
Broad Street Corridor Area as well as retail opportunities and services, and
• Leverage other public private funding sources and minimize City of Son Luis
Obispo subsidy.
ROEM 59
CORPORATION J
B 1�d5'
c; Attachment
CITY OF SAH LUIS OBISPO - THE VILLAGE AT BROAD STREET
H
OUTREACH PLAN PROPOSAL
Our outreach plan for the proposed project reflects the cornerstone of ROEM's corporate philosophy: An un-
wavering commitment to bringing communities together through quality housing.
The foundation of this outreach plan is the belief that members of the public affected by the development have a
right to know what the project team is doing in their community, and to participate in the decision-making proc-
ess. ROEM is committed to early and meaningful participation throughout the project in order to ensure that
community input is reflected in the final product Our work with communities will also include efforts to ad-
dress questions and concerns that are raised throughout the process. Achieving these goals will require ongoing
interaction with the community, collaboration with City representatives, and the coordination of innovative
strategies, including:
• Targeting of the community at large surrounding the project area with a special focus along the Broad
Street corridor plan area, commercial businesses, community groups, and other stakeholders within a
half-mile radius.
• Regular interaction with the community and proactive sharing of information in an understandable way,
ensuring that the public has appropriate opportunities for involvement
• Obtaining a firsthand understanding of community interests and concerns.
Through this approach, residents will know that their concerns will be heard by the project team developers
and city representatives,which will earn the trust of the community.
OUTREACH OBJECTIVES
Our strategy for an effective outreach program for the proposed project is based on three objectives:
1) Develop a consistent, unified theme and message to communicate to the community;
2) Educate the community on the project and its benefits; and
3) Engage local decision makers and community leaders.
OUTREACH PURPOSE/MESSAGE
Our outreach activities will promote the new development as an important step in providing safe high quality
housing to all residents. The project will further provide for a well-organized and intelligent design, which en-
courages transit use, is pedestrian-friendly,and promotes a compact, livable,and walkable community.
At the core of any effective outreach strategy is the.use of clear, consistent, persuasive, and credible messages
to communicate the benefits of the project to the community, and to gather the community's input and ideas as
well. Throughout the public hearing process, study sessions,focus groups, and meetings with community stake-
holders, ROEM will clearly communicate the benefits of the project to the City as described below.
The outreach efforts will address four elements of the project: (1) project design; (2) project development and
construction;and (3) affordable family rental housing.
Project design
60 ROEM
CORPORATION
8/-1�_L
Attachment 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
The community will be kept updated on the high quality project design; which will reflect the historical and
cultural characteristics of the City of San Luis Obispo. Through our experienced architect, Keith Labus,
ROEM will share design plans, amenities, family-oriented features, and other plans for the development and
will gather community input and comments on the proposed design.
Project development and construction
The community will be informed and updated on the development schedule and timeline. Extensive efforts
will be made to inform stakeholders of planned detours and traffic disruptions that will result from the con-
struction project Periodic updates will be posted at sites frequently visited by residents to keep them in-
formed on the progress of the project
Affordable family housing
The new units will be targeted primarily to low-income family households earning 60% or-less of area me-
dian income. Information will be made available at community meetings on the qualification process. Work-
ing with the City during the initial rent-up phase, information will be provided to community-based organiza-
tions serving low-income families who can share it with their clientele.
OUTREACH STRATEGIES
Working closely with City's staff, the outreach goals can be achieved through various channels such as participa-
tion in public hearings/study sessions, one-on-one or small group contact, educational materials/fact sheets dis-
tribution, business outreach, special events, public relations,and local media relations and special events.
Public meetings/study sessions
These meetings will be used early in the planning stage to explain the design and construction process to the
community. Holding public hearings at the beginning of the project development will provide a clear sign to
the community that the project team wants to establish an open rapport Throughout the design process,
additional hearings and/or study sessions will be held to answer more specific questions and to inform the
public about precisely what is occurring at the site.
One-on-one or small group contact
This will be an effective method to communicate with the interest groups that wish to comment specifically
on the project. We will utilize "trusted messengers' in the community to communicate with these groups
in a non-threatening environment and facilitate a useful one-on-one exchange of information. Groups that
will be contacted include the following examples:
Educational materials/fact sheet distribution
Informational materials highlighting the timeline and progress of the project will be created and distributed
to the community through the City and key community groups. Distribution may include:
• Community service locations like public libraries and post offices
• Commercial locations like local stores and restaurants
• Transportation service areas such as bus stops
Business outreach
The business community can be an important ally during the public outreach process as traditional support-
ers of quality affordable housing development for employees. Those businesses within a half-mile radius will
be kept informed of the project construction schedule through communication with specific business groups
such as the San Luis Obispo Chamber of Commerce. The outreach team will also solicit participation at
ROEM 61
CORPO RA T1 ON
8/ _C�
Attachment 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
".iD to
9
formal meetings about the development Large area retailers will also receive information about the project
through direct mail, and will be invited to participate in special marketing and publicity events to gain visibil-
ity for the project. Cooperative partnerships may also be established with local businesses to augment out-
reach efforts and/or advertising campaigns.
Special events ,
Once the community has been sufficiently engaged, a series of events will be planned to coordinate with the
progress of the project Special events may include:a groundbreaking ceremony, site tours, media tours and
a grand opening celebration. These events will involve the community and demonstrate milestone achieve-
ments.
Public relations
The outreach team will communicate with and enlist the support of community entities to increase aware-
ness of the project joint marketing and outreach opportunities will be conducted with entities, such as
schools,government agencies,faith-based and community-based organizations,that work with hard-to-reach
residents. This section provides examples for building relationships with key community stakeholders, such
as elected officials, school administrators, and surrounding merchants to assist with informing their constitu-
ents about the.new development
• Educational institutions
Schools provide rich opportunities for outreach efforts. They represent an opportunity to reach
several audiences at once, including children, parents, and school employees. As a trusted messen-
ger in the community,they can communicate credibly with families.
• Public and government agencies
Public agencies serve as effective resources for residents to learn about upcoming events in the
community. For example, The Department of Parks and Recreation has responsibility for issuing
event permits. In addition,the police and fire department.are actively involved in community activi-
ties such as block parties,etc.
• Faith-based organizations
The faith-based community is a logical and important influencer to many people, making the religious
community essential to effective outreach. Communities of faith have broad and rich traditions and
serve.as a trusted resource to their congregations. Keeping the faith-based communities informed
about the project will help them inform their members.
• Community-based organizations
Non-profit organizations have strong community ties and are a valuable tool in efforts to reach and
influence residents, especially those considered hard-to-serve. Many CBOs are also known as
trusted messengers because they not only conduct grassroots level outreach but also conduct per-
son-to-person interaction with their clients.
Media relations
A detailed, comprehensive, and cost-effective media strategy will be developed and implemented to generate
publicity for the development Media opportunities will be created to coordinate with the various phases of
the project in order to engage the media.The following media materials will be developed as needed:
62 ROEM.
CORPORATION
61 a8f
Attachment 3
(ITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
:;C h
I
• News releases will be prepared and distributed to local media outlets in the
geographical areas identified. Specific"angles"will be developed and pitched to
target media.
• Feature stories,guest columns and editorials will be relayed to target media. In
addition, story opportunities and special events will be identified as they develop.
• Media kits will be prepared, including feature release,fact sheets (program
highlights)and background information, as appropriate.
• Public service announcementswill be created, produced and potentially placed with
print,television and radio media outlets, including community calendars.
• A public affairs programming campaign will be planned and coordinated with the
I. outreach team handling all logistics, including establishing contacts, securing
2. placements,and scheduling appearances of spokespeople.
Targeted communication channels
To supplement the media relations, other communications channels will be utilized to promote the project
This strategy will allow the consumers to have direct access to project information for purposes of review-
ing,downloading schedules,translating information into other languages, etc
In addition, a dedicated telephone number can be established as a tool available to the public. For e)ample,
taped announcements will be periodically updated to provide current project activities and will also permit call-
ers to leave a message or ask a question. The outreach team should respond to the messages within two days.
ROEM 63
CORPORATInN
Att
ent 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
a
Table of Contemn FINANCING PLAN
After carefully evaluating the site and the various financing plans available for
affordable housing, ROEM has initially concluded that the 9% tax credit is
the best fit for this development,for the following reasons:
• These programs supply the greatest amount of outside funding sources and
therefore limit the amount of gap financing required from the City of San Luis
Obispo.
• This program will have a large amount of funding for the upcoming round due
5. PROPOSED PROJECT CONCEPT to the addition of federal stimulus money. Additionally,the application is due
June 9th with awards announced in August 2009.
ROEM has extensive experience implementing this financing structure and can pro-
vide further information on the program requirements and assumptions as we pro-
gress with this development.
Below is a table that reflects the permanent sources needed for anticipated for this
project.
Dev elopi-nent
Broad Street Village
San Luis Obispo,California
CdNSTRUCTIOOUFLCES'
Investor Capital 2,671,663
Construction Loan 11,290,000
City of San Luis Obispo.Loan 1,800,000
Accrued Interest-City Loan 144.000
Lease Up Income . 60,313
Deferred Developer Fee_ 1,100,_000
T�OTA L COO U R C E 5 17,065,976
e
Investor Capital 11,945,733
Perm-Loan 2,320,000
City of San Luis Obispo Loan 1,800,000
Accrued Interest-City Loan 144,000
AHP Grant 410,000
Lease Up Income 60,421
Deferred Developer Fee 385,822
TOTALe �065,976
64 ROEM.
CORPORATION
BI-30
Attachment 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
irk 4
i
ROEM Development Corporation
GENERAL INFORMATION DEVELOPMENT COSTS
Project Name: Broad Street Village Land 2,700,000
San Luis Obispo,Califouua Off-Site Improvements 132.314
Parking Garage S 0
#Revenue Producing Units 42 Construction S 173.87 7,035,020
Square Footage of Units 40,462 General Requirements(incl.) 6.0% 430,040
Site Acreage 2.34 101,930 Overhead(incl) 2.00/0 143,347
Parking Spaces 0 Profit(incl.) 6.0% 430,040
LIHTC% -Not Locked Yet 9.00% Hard Cost Contingency 5.0% 408,538
QCr/DDAA4ustmem 130.00% Construction/Liabifityhurmance 1.25% 94,967
Qualified Occupancy 100.00% Appraisal/Market Study 15,000
Architect 325,000
Engineering/Consulturts 280,000
ProjectStartDate: 1st Year 2010 Permits&Fees 39,716 1,668,056
i-Mar-30 lstMonth- 3 Title/Recording-ConsructionLoan 15,000
Taxes/Assessment 30,000
Constuction Duration tl Months 17 Bonds 1.25% 102,135
!Lease UpDmation_ #;Months 4 Accounting 20,000
Construction Loan Interest 964,140
r Lender Inspections 14,000
City Loan Inroaest 144,000
RDA Loan Interest 0
Borrower Legal 125,000
Construction Loan Fee 0.75% 84,675
Full Oceuparicy Date 1 12 Consmtction Loan Application Fee 10,000
Bond Costa 0
Marketing/Lease Up/Stsri Up 45,000
Furnishings 50,000
Permanent Loan Fees 1.00% 28,225
FINANCING ASSUMPTIONS 0
Title/Recording-Permanent Loan 15,000
Construction Loan 11,290,000 Legal-Construction Lender 30,000
Interest Rate 6.500% Legal-Permanent Lender 35,000
Tem 24 TCAC Application Fee 2,000
TCAC Allocation Fee 59,735
TCAC Monitoring Fee 17,220
Pam-Loan 2,320,000 Soft Cost Contingency 5% 115,859
Interest Rats 7.500% Developer Fee 1,400,000
Term 360 Cash Reserves 96,666
DCR 1.15
TOTAL DEVELOPMENT COSTS 17,065,976
Amortization 360
StartDate 01-Mar-12
Re-Amortiatim Dare: 01-Mar-42
Re-Amortization Tem: 360
City of San Luis Obispo Loan 1,800,000
Loan per Unit 42,857
Interest Rate-Simple 4.000%
Pay Rate 4.00%
Tem 396
Amortization 396
Start Date 01-Mar-10
AHP Grant y 410,000
Interest Rate 0.000%
ROEM 6S
CORPORATION
81 -31
Attachment 3
CITY OF SAN LUIS OBISPO - THE VILLAGE AT BROAD STREET
a
Broad Street rBage
San Luis Obispo,.California
Development
DEVELOPMENT
Total Square Foot Unit Retail Hotising Basis
Land 2,700,000 66.73 64,286 281.5p 2,418,441
COSTS •TAL 66 73 64;286 281,559 2�418�441
OR-Site Improvements 132.314 3.27 3,150 - 132314 132,314
Construction 7.035,020 173.87 167,500 462,185 6.572,835 6,572,83S
General Requirements(incl:) 430,040 10.63 10,239 .27,731 402;309 402.309
Overhead Qnd.) 143,347 354 3,413 9244 134,103 134,103
Profit(incl.) 430,040 10.63 10,239 27.731 402309 402.309
Hard Cost Contingency S% 408,538 10.10 9,727 23,109 385,429 385,429
HARD COSTS TOTAL 815M299- 212.03--- 2a4;269 5so;000 8�029�299 8�029.299
Censtruetlon/Uabflity Insurance 94,%7 2.35 2,261 9,903 85,064 85,064
Appraisal/Market Study 15,000 0.37 357 15,000 15.000
Architect 325,000 8.03 7,738 33,891 291,109 291,109
Engineering/Consultants 280,000 6.92 6,66729,199 250,801 250,801
Permits&Fees 1,668,056 41.23 39,716 164,665 1,503.391 1,503,391
Title/Recordings-Construction Loan 15,000 0.37 357 1,564 13,436 13,436
Taxes/Assessment 30,006 0.74 714 3,126 26,672 26,872
Bonds 102.135 2.52 2,432 10,651 91.484 91,484
Accounting 20,000 0.49 476 2,086 17,914 17,914
Construction Loan Interest 964,140 23.83 22,956 100,542 863,598 539,711
Lender Inspections 14;000 0.35 333 1,460 12540 12,540
City Loan Interest 1441000 356 3,429 144,000 96,738
Borrower Legal 125,000 3.09 2,976 125.000 125,000
Construction Loan Fee 84,675 2.09 2,016 8,830 75,845 75,845
Furnishings 50,000 1.24 1,190 50.000 50.000
Construction Loan Application Fee 10,000 0.25 238 1,043 8.957 8,957
Marketing/1-case Up/Stan Up 45,000 1.11 1,071 45,000 --
Permanent Loan Fees 28.225 0.70 672 2,943 25.282.
Title/Recording-Permanent Loan 15,000 0.37 357 IS64 13,436 -
Legal-Construction Lrnder 30,000 0.74 714 3,128 26.872 26.872
LSI-Permanent Lender 35,000 0.87 833 3,650 31.350
TCAC Application Fee 2.000 0.05 48 - 2,000 -
TCACAIIocation:Fee 59.735 IAB 1.422 - .59,735 -
TCAC Monitoring Fee 17,220 0.43 410 ,- 17,220 -
Soft Cost.Contingemcy 115,859 2.86 2,759 12,082 103;777 103,777
Cash Reserves 96,666 2.39 2,302 - 96,666 -
Developer Fee 1,400,000 34.60 33,333 1.400,000 1,400,000
DEVELOPMENT T• r. .. r: :r,
66 ROEM,
CORPORATION
81-3a
Attachment 3
CITY Of SAN LUIS OBISPO THE VILLAGE AT BROAD STREET
i
Broad Street YBlage ROEM Corporation
Sen Luis Obispo,CaBforni Sari Clore,CA
RENTAL INCOME Teti' -�Gmsq Net T6tal Toral
No.of Unit Size, u I ni Rent per utility -nt per Rentper Annual
Type of Units uni I ts per'- sq.fi; Ama Month Allowance Month M I on I t I h Rent
I BR--60% 1 2.36% SBI 581 7% 48 748 748 8,976
-1 BR-30% 1 .2.38% 581. S81 372 48. -324 324 3.888
2 BR•60% 5 11.90%. 875 4.375 95S 79 876 4.380 52560
2 BR•50% 10 23.81% 8758,750 796 79 717 7.170 86.040
2-BR-40% 3 7.14% 875 2,625 637 79 'SS8 1.674 20,088
2 BR-30% 2 4.76% 87S 1,750 477 79 398 796 9552
3 BR-60% 4 932% 1.100 4,400 1.104 46 1.008 4.032 48:384
3 BR.50% 11 26.19% 1,100 12,100 920 96 824 9.064 108,768
3 SR.40% 2 4.76% 1,100 2,200 736 96 640 1,280 15,360
3 BR-30% 2 4.70 1.100 2200 5S2 96 456 912 10,944
2 BR Resident Mgr 1 2.38% 900 90_0 0 0 0 1.100 13200
Total 42 1 00.0V,.� 40�4621, Gross Potential Rewcnue 31:,480 377,760
Yelir ..
'Gross potential Revenue From Above .377.760 8.994 934 Affordability.Target
Reoll Interne(5500 s.L @$I.S) 99.000
Ocher Income 5.544 132 0_.14 Afford.Less:Vacanty Commercbl(35%) (34,650)
Less:Vacancy Residential(5%) (19,165) (456) (0.47) Level %of project Count
Effective Gress,lncome 428,489, 10202- 1059 00%AMI
6D%AMI 2439% 10
Qperatfnz Experise 55%AMI
Administrative (97,076) (2,311) (2.40) 5D%AMI 51.22% 21
Management Fee (21,424) (5'10) (DS3) 4S%AMI
Operating&Maine (35.000) (833) (0B7) 4D%AH 1220% 5
Utilities (22,000) (524) (054) 3S%AMI
Taxes&Insurance (16,500) .(393) (DA 1). 30%AMI 1220% 5.
Total Operating Expenses (192,000) (4,571) (4.75) Manager Units
Replacement Reserves (12.600) _ (300) (0.31) 1001% 41
Total.Expenses (204,600) (4,871) (5.06)
NET OPERATING.INCOME 223,889 5331 5.53
ISE Mortgage Debt Service (194;661) (4,635). (481)
Nat Cash"Flow After Debt Service 29,227" 696 0.72
loss Partnership Asset Mgt Fees (10.000) (238) (0.25) 54,350
Net Cash Flow Before Soh Payments - 19.227 458 0.48 47.261
Debt Coverage Ratio-ISE Mortgage .1.1501
ROEM. 67
CORPORATION
B� -33
Attachment 4
RESOLUTION NO.9903 (2007 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
SUPERCEDING RESOLUTION NO.9131 (2000)WAIVING CITY-WIDE
DEVELOPMENT IMPACT FEES FOR AFFORDABLE HOUSING UNITS IN EXCESS
OF INCLUSIONARY REQUIREMENTS
WHEREAS,the City's General Plan requires that the costs of public facilities and
services needed for new development shall be home by new development unless the community
chooses to help pay the costs of a certain development to obtain community-wide benefits;and
WHEREAS,the City has implemented a number of programs to implement this policy,
including the adoption of development impact fees; and
WHEREAS,the City's General.Plan encourages the production of affordable housing
for very-low, low and moderate income households; and
WHEREAS,the City has implemented a number of financial assistance programs to help
achieve this goal,including the waiver of development review fees and meter installation fees
and issuance of housing revenue bonds; and
WHEREAS,the City has adopted"inclusionary"housing requirements for new
development in order to help achieve the City's affordable housing goals; and
WHEREAS,reducing the cost of the public facilities and infrastructure needed to serve
new affordable housing units that exceed the City's inclusionary housing requirements may help
encourage the production of even more affordable units.
NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis
Obispo that City-wide development impact fees are hereby waived on residential units qualifying
as affordable housing under the criteria set forth in Section 2 of the General Plan Housing
Element that either.
1. Exceed the number required to meet the City's inclusionary housing requirements
or, in the case of developments of one to four units,provide voluntary affordable housing units;
2. Are built,owned and managed by the San Luis Obispo Housing Authority, other
governmental agencies or not-for-profit housing organizations.
This exclusion only applies to City-wide impact fees;it does not apply to fees,
assessments or special taxes for infrastructure improvements applicable to special benefit areas.
SECTION 1. This resolution supersedes and replaces Resolution No. 9131 (2000 Series)
adopted by this Council on November 21,2000.
R 9903
81 3Y
Attachment 4
Resolution No. 9903 (2007 Series)
Page 2
Upon motion of Council Member Settle,seconded by Vice Mayor Mulholland, and on
the following roll call vote:
AYES: Council Members Brown, Carter,and Settle,Vice Mayor Mulholland and
Mayor Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted this 5`h day of June 2007.
��
Mayor David F. Romero
ATTEST:
Audrey Ho e
City Clerk
APPROVED AT TO FROM:
n ..Lowell
City Attorney
r �
Attachment 5
RESOLUTION NO. 9263 (2001 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR
ALLOCATING AFFORDABLE HOUSING FUNDS.
WHEREAS,the City Council adopted Ordinance 1348 (1999 Series)establishing
an Affordable Housing Fund for the collection and distribution of in-lieu housing fees to
promote affordable housing in San Luis Obispo;and
WHEREAS,as a result of the in-lieu fee payments to the City under the
Inclusionary Housing Ordinance,the City has a balance of approximately$400,000 in the
Affordable Housing Fund,and this fund is available to support affordable housing in San
Luis Obispo at the sole discretion of the City Council;and
WHEREAS,the City received requests by Judson Ten-ace Lodge and Sojourn
Services,Inc.for the use of$215,000 and$25,000,respectively,of Affordable Housing
Funds;and to evaluate these and future funding requests in a fair and timely manner,
Council wishes to establish award criteria and a review process for the Affordable Housing
Fund;and
WHEREAS,the City Council held a meeting on December 4,2001 to consider
possible award criteria that balance the need to provide a fair,open and timely funding
award process with the desire to maintain funding flexibility to address local housing needs
and opportunities;
NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis
Obispo that based on its deliberations,public comments,the staff report,and on State law,
the following:
SECTION 1. Affordable Housing Fund Award Criteria. The City Council
establishes the following criteria for evaluating requests for use of the Affordable Housing
Fund:
1. Eligibility. Use of the Affordable Housing Fund(AHF)for the requested
purpose will increase or improve the City's affordable housing inventory and
promote General Plan policies regarding housing.
2. Need. There exists a substantial or overarching need for the type of housing to be
assisted.
3. Suitability. The project to be assisted is appropriate for its location,both in
terms of land use and design.
4. Timing. The project would be better serve the City's needs if it were built
immediately as opposed to later.
R 9263
8�-3�
Attachment 5
Resolution No.9263 (4.a1 Series) -•
Page 2
5.Financial Effectiveness. But for the requested assistance,the project would not
be economically feasible;or AHF funding'leverages"significant additional funding
from other sources.
6. Readiness. The project has all necessary City approvals and is ready to proceed.
SECTION 2. Use of Award Criteria. The Council will apply the above criteria
when evaluating funding requests. Requests that most closely meet the criteria will be given
the most favorable consideration in allocating Affordable Housing Funds. Under no
circumstances is Council obligated to award Affordable Housing Funds. The decision
whether to allocate funds and how much is at the sole discretion of the City Council whose
decision is final.
SECTION 3. Review Process. The Community Development Director shall be
responsible for processing requests for use of Affordable Housing Funds. Such requests
shall usually be considered concurrent with review of the City's Community Development
Block Grant Program.The Director is authorized to bring urgent funding requests to the
Council at any time,irrespective of the above review cycle.
SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds
shall be required to execute an agreement with the City describing the purpose and terns of
funding. The project or program to be funded shall meet the City's Affordable Housing
Standards,including the requirement for an affordability term of at least thirty(30)years,
and City equity participation in the project where feasible and appropriate. The City
Administrative Officer is authorized to execute such agreements for the City.
Upon motion of Council Member Schwartz,seconded by Vice Mayor Marx,and on the
following roll call vote:
AYES: Council Members Ewan,Mulholland,Schwartz,Vice Mayor Manx,
and Mayor Settle
NOES: None
ABSENT: None
The foregoing resolution was adopted this 0 day of December 2001
Mayor Allen Settle
A
Lee Price, City CIerk
81'-3
t
'ichment 6
M
, Q
`i • � }
�� � AiiC�i i W.®1YV W 144
` F ' y
DN
3` . .
�►
K a.f . at
)
us
V iii�ii AfiP.Lf19f.T
: .r.✓" eT.. � dot
MM
'Ilk th
to
11�
l.:
4 � 4
4 • � F
s
e
ri
' > F
Attachment 7
Fiscal Status of Affordable Housing Fund
Revenues, Expenditures and Changes in Fund Balance
Revenues txpenditures Fund Balance
Fiscal Year In-Lieu Fees Interest Total (Note 2) Beginning Ending
2000-01 (Note 1) 193,700 8,200 201,900 201,900
2001-02 464,900 20,000 484,900 201,900 686,800
2002-03 747,800 28,300 776,100 (215,000) 686,800 1,247,900
2003-04 60,500 8,500 69,000 (30,000) 1,247,900 1,286,900
2004-05 323,300 32,500 355,800 (30,000) 1,286,900 1,612,700
2005-06 1,863,700 68,500 1,932,200 1,612,700 3,544,900
2006-07 627,200 160,500 787,700 (530,000) 3,544,900 3,802,600
2007-08 682,400 155,600 838,000 (630,000) 3,802,600 4,010,600
2008-09 1 465,700 160,000 1 625,700 806,125 4,010,600 3,830,175
Cumulative Total 1 $5,429,200 $642,1001 $6,071,300 $2,241,125 $3,830,175
Commitments Units
First time home buyers'program 4 (195,700)
Housing Authority, Humbert Project" (109,900)
Reserved for Laurel Creek BEGIN 8 (270,000)
Wineman Hotel Rehabilitation 30 (1,500,000)
San Luis Obispo County Housing Trust Fund (30,000)
Judson Terrace Termite Repair (45,000)
Aids Support Network Remodel 1 82,800
Total Commitments 43 2,233,400
Net Available for New Programs at June 30, 2009 $1,596,775
Current Req uests/P posed Allocations
The Village at Broad (ROEM Development) 41 units $1,034,448
Net.Available for New Programs if Current Request Approved $562,327
1. 2000-01 is the first year that in-lieu fees were received.
2. Expenditure Summary To-Date
purposeYear
2002-03 Judson Terrace Lodge 32 215,000
2003-04 Operating Support: SLO County Housing Trust Fund 30,000
2004-05 Operating Support:SLO County Housing Trust Fund 30,000
2006-07 People's Self-Help Housing:Villas at South Higuera 28 500,000
2006-07 Operating Support: SLO County Housing Trust Fund 60,000
(Two-Year Commitment) "
2007-08 Housing Authority, Humbert Project 21 600,000
2008-09 First time home buyers'program 1 34,400
2008-09 Habitat for Humanity 2 332,500
2008-09 Foreclosure Prevention 309,225
2008-09 Laurel Creek BEGIN funds 2 130,000
Total 86 2,241,125
' Originally allocated for North Chorro project
" $30,000 of these funds were disbursed in 2007-08.
r31 39
O Attachment 8
City Council Resolution No. (2009 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO APPROVING AFFORDABLE HOUSING INCENTIVES
FOR THE CONSTRUCTION OF A 42-UNIT AFFORDABLE RENTAL HOUSING
PROJECT AT THE VILLAGE AT BROAD STREET (2238 Broad Street).
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 August 4,2009, for the purpose of
considering a request by ROEM Corporation for affordable housing incentives; and
WHEREAS, the project is eligible for affordable housing incentives because the
developer has committed to providing 41 deed-restricted affordable units for a term of 55 years;
and
WHEREAS, the project proposal indicates that 31 of these units will be affordable to
very-low income households and 10 units will be affordable to low-income households; and
WHEREAS, the total value of the incentive requested is $1.8 million, including
$1,034,448 from the Affordable Housing Fund and $765,552 from impact fee deferrals; and
WHEREAS, the affordable housing incentive will take the form of a $1.8 million soft
loan,or forgivable loan,with a term of 30 years and a cost of 4% simple interest; 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 presented at
said meeting.
BE IT RESOLVED,by the City Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. The City Council does hereby make the following findings in
support of the proposed affordable housing incentives:
Eligibility: The project is eligible for AHF assistance because it will result in deed-restrictions
for 41 low-income and very-low income units for a term of 55 years.
Need. There exists a substantial need for the proposed type of affordable housing. The building
floor plans include 24 three-bedroom units, 16 two-bedroom units and two one-bedroom units.
The level of affordability of a unit is based on affordability to an eligible household with an
income represented as a percentage of Area Median Income (AMI). The income targeting for the
ROEM proposal includes:
5 units @ 30% AMI
5 units @ 40% AMI
21 units @ 50%AMI
10 units @ 60%AMI
B I-LIo
City Council Resolution No. - 2009 Series) Attachment 8
Page 2
Based on the City's Affordable Housing Standards, this affordability targeting translates into 5
units affordable to extremely-low income households, 26 units affordable to very-low income
households, and 10 units affordable to low income households. The City's Regional Housing
Needs Allocation (RHNA) for the 2009-2014 period establishes a goal of 366 new extremely
low-income and low-income units combined, and 254 new low income units.
Suitability: The project is particularly suited to the mid-town location because residents will
have access to schools, parks and employment opportunities in the surrounding urban area.
Transportation options include bus routes and bike paths that are located immediately adjacent to
the site.
Timing. The timing of the award is critical because funding must be approved no later than
August 17,2009, for the project to be eligible for the 2009 9%tax credit round.
Financial Effectiveness: The proposed affordable housing fund award leverages substantial
equity contributed by the developer and a State tax credit allocation of$1,493,365.
Readiness: The project has all of its required City approvals and can be carried forward with the
approval of the recommended financial incentives. Specifically, the project is located on one of
three parcels that are part of a coordinated development plan. The Planning Commission has
approved a use permit for the overall project, and the minor plan revisions proposed by ROEM
have been determined to be consistent with the approved use permit. With respect to the
remaining phases of the project, it is the City's expectation that they will also be carried out in a
manner that is consistent with the approved Planning Commission use permit and the site plan.
Section 2. Affordable Housing Incentives. The City Council does hereby approve
affordable housing incentives for ROEM Corporation in the amount of$1.8 million, including
$1,034,448 from the Affordable Housing Fund and $765,552 from impact fee deferrals, subject
to the following conditions.
1. The funds shall be made available to ROEM Corporation in the form of a soft loan, or
forgivable loan, with a term of 30 years at 4% simple interest. Periodic payments will be
waived with the development of the approved affordable housing.
2. The funds will only be made available after an affordability agreement for the project has
been recorded; ensuring the affordability of 41 units in the project for a period of 55
years.
3. Prior to release of funding, the applicant shall submit a management plan for resident
service amenities to the Community Development Director for review and approval. The
plan shall cover ongoing after-school programs for school age children and on-site
educational classes including ESL and computer training for adults. The plan shall also
include a program for activities conducted in the community room/recreation building.
51,41
City Council Resolution No:---,,2009 Series) _ Attachment 8
Page 3
Upon motion of , seconded by
and on the following vote:
AYES:.
NOES:
ABSENT:
The foregoing resolution was adopted this 4th day of August, 2009.
Mayor David F. Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
Jonathan P. Lowell
City Attorney
City Council Resolution No: �Z009 Series) Attachment 8
Page 3
Upon motion of , seconded by ,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 4th day of August, 2009.
Mayor David F. Romero
ATTEST:
Elaina Cano
Interim City Clerk
APPROVED AS TO FORM:
Jonathan P. Lowell
City Attorney
;S/-q3