HomeMy WebLinkAboutR-10860 Affordable Housing Fund allocation for Courtyard at the Meadows 630000RESOLUTION NO. 10860 (2018 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AFFORDABLE HOUSING FUND
AWARD TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO AND
SAN LUIS OBISPO NONPROFIT HOUSING CORPORATION FOR
COURTYARD AT THE MEADOWS IN THE AMOUNT OF $630,000
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 February 6, 2018, for the purpose
of considering a request for Affordable Housing Fund (AHF) assistance; and
WHEREAS, the Courtyard at Meadows Project proposed by the Housing Authority of San
Luis Obispo (HASLO) and the San Luis Obispo Nonprofit Housing Corporation (SLONP) located
at 3175 Violet Street, San Luis Obispo, meets eligibility criteria established by the City Council;
and
WHEREAS, Housing Element policies and programs encourage and support the
maintenance and rehabilitation of existing affordable housing as well as 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 presented at
said meeting.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Environmental Detennination.The project is exempt from environmental
review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. The project is an action
to award funding. Courtyard at the Meadows was determined to be consistent with the Mitigated
Negative Declaration of Environmental Impact of the Margarita Area Specific Plan by the City
Council on April 15, 2014.
SECTION 2. Findings. 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:
Courtyard at the Meadows Project 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 ofaffordable housing for very -
low and low- income households with the construction of 36 units.
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Resolution No. 10860 (2018 Series)
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2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as
follows:
The City of San Luis Obispo has a substantial need for affordable housing to meet goals stated
in the City's General Plan Housing Element. San Luis Obispo County had one of the lowest
rental housing vacancy rates in the State of California at 1.7%, according to the California
State Department of Finance. Courtyard at the Meadows will provide affordable, rental
housing opportunities for the community.
3. Suitability: The project to be assisted is appropriate for its location both in terms of land use
and design, as follows:
Courtyard at the Meadows is ideally suited for this location, as the Residential Multifamily R-
3 zoning classification is consistent with the proposed use. The Spanish architectural design
style is reflective of the Margarita Area Specific Plan, featuring low slope roofs, mission tile,
recessed exterior window faces and arched openings. All elevations are visually interesting,
providing intriguing architectural treatments that enhance all views of the structures. Thus,
Courtyard at the Meadows received unanimous approval by the Architectural Review
Commission in September 2016.
4. Timing: The project would better serve the City's needs if it were built immediately as
opposed to later, as follows:
Courtyard at the Meadows has received all local approvals and is preparing to submit for a
building permit application. The project is also assembling various competitive sources for
financing. In March 2018, HASLO will apply to the California Debt Limit Allocation
Committee for an allocation of private activity bond tax exempt financing, and to the California
Tax Credit Allocation Committee for an allocation of Low -Income Housing Tax Credits.
Construction of the project is expected to begin in late 2018.
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 at
least $12 million in other funds for Courtyard at the Meadows. The 36 units will remain
affordable for 55 years pursuant to a low-income housing tax credit (LIHTC) regulatory
agreement. Additionally, HASLO will ensure that the units will remain permanent affordable
housing resources for the community. Project financial feasibility is dependent upon
Affordable Housing Funds.
Resolution No. 10860 (2018 Series)
Page 3
6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows:
Courtyard at the Meadows has obtained all the necessary City discretionary approvals.
HASLO intends to apply for a building permit in March 2018. Upon the award of a City
Affordable Housing Fund award, HASLO will be eligible to apply for Low Income Housing
Tax Credits, and other private activity bond financing. Should the project receive all funding,
HASLO/SLONP anticipates starting construction in late 2018.
SECTION 3. AHF Award HASLO/SLONP Cou and at the Meadows). The City
Council does hereby approve an AHF award in an amount not to exceed $630,000, 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 36 for -rent affordable housing units located at 3175 Violet Street
for a term of 55 years, which will be recorded against the title of the property. The form of said
agreement shall be subject to the approval of the City Attorney.
Upon motion of Council Member Gomez, seconded by Council Member Rivoire, and on the
following vote:
AYES: Council Members Gomez, Pease, Rivoire and Mayor Harmon
NOES: None
ABSENT: Vice Mayor Christianson
The foregoing resolution was adopted this 6 1 day of February 2018.
ATTEST:
Carrie Gallagher
City Clerk
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Resolution No. 10860 (2018 Series)
AS TO FORM:
i��s"txne Dietrick
Attorney
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IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 1 q*A day of �, azo/ 8
Carrie Gallagher
City Clerk
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