HomeMy WebLinkAbout08-09-2017 PC Correspondence - Items 1 and 2 (Smith, Scott)
From: Scott Smith <
Sent: Wednesday, August 09, 2017 2:32 PM
To: Advisory Bodies
Subject: Planning Commission August 9 Avila Ranch - Developer Agreement
Importance: High
Dear Staff and Commissioners,
RECEIVED
CITY OF SAN LUIS OBISPO
AUG o 9 2017
COMMUNITY DEVELOPMENT
We are writing to express our support for the Avila Ranch project and express some comments
specifically regarding the affordable component.
We believe the provision of the 24 affordable units by way of a donated site may be a significant
financial challenge for any affordable housing developer. The proposal could be improved
significantly by addressing the following in the Developer Agreement:
1) Ensure that the site designated for the 24 lower income units (and frankly all low/mod units
that are deed restricted) is/are exempt or deferred from all City fees in the same way that
non -inclusionary_ affordable projects are. In other words all City building permit and other
processing fees are waived, and impact fees are able to utilize the City's Impact Fee Deferral
Loan Program. This is critical to ensuring financial feasibility.
2) 'Ensure that any donated site for affordable does not have to pay Homeowners Association
Fees or Community Financing District Fees. These operating costs cannot be absorbed in the
low rent structure imposed on these units. City staff have interpreted in the past that the
Inclusionary option to donate land means all infrastructure installed and paid for, and that
privatizing the infrastructure and recouping capital or maintenance costs through monthly
assessments is not consistent with the Donated Land option. Again, such a burden renders an
affordable project infeasible.
3) Increase the land area of the donated site to accommodate at least 40-50 units. This would
improve the overall development feasibility as well as operational efficiency. Any additional
units beyond the 24 should not be mandated as affordable, but optional as affordable or
market.
4) Finally, the Development Agreement should clearly require that the primary developer of Avila
Ranch provide the affordable units associated with the donated site if the economic
contributions prove insufficient for an affordable housing developer to provide the units. The
developer could choose to do this by scattering the affordables throughout the development
or concentrating them on one site.
With these clarifications we urge you to approve the development this evening.
Thank you,
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.Qra
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