HomeMy WebLinkAboutR03-Economic Development Agency
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DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECO NOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH 1. HENDERSON
Executive Director
SUBJECT: INFILL HOUSING
DEVELOPMENT PROGRAM
DATE: October 12, 1994
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SvnoDsis of Previous Commission/Council/Committee Act1onls):
00 October II, 1994, the Housing Committee forwarded the Infill Housing Developmeni Program to the Community
Development Commission.
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Recommended Motion{ s ):
(Community Develoument Commission)
MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, AUTHORIZING AND ADOPTING INFILL HOUSING DEVELOPMENT PROGRAM
AND REQUEST FOR QUALIFICATIONS FOR P ARTICIP A TING THEREIN.
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A mstrator
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KENNEm J. HENDERSON I"~
Executive Director
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Contact Person(s):Keoneth 1. HendersonIRobert 1. I.em1ev
Phone:
5081
Project Area(s): Central Citv Proiect Central (itv North. Uptown
Ward(s): Two (2)
Supporting Data Attached: Staff Renort
FUNDING REQUIREMENTS: Amount$ 300000
Source:
LowlMod
Budget Authority: FY 1994-95 Bud2et
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Commission/Councll Notes:
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KJH:RJL:nfllhsg.cdc
COMMISSION MEETING AGENDA
Meeting Date: 10/17/94
Agenda Item No:
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DEVELOPMENT DEPARTMENT
STAFF REPORT
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Jnfill Housing Development Program
In 1985, the Community Development Commission initially approved an Infill Housing Program, and
ultimately twenty (20) infilllots were acquired with Agency 200/0 Housing Set-Aside funds and single-
family dwelling units were constructed by two (2) private single-family housing developers. The 1985
program was established as a Revolving Loan Fund, whereby funds repaid to the Agency upon sale of the
property are to be used for future infill activities.
A major priority of the FY 1994-95 Housing Division budget is the implementation ofaComprehensive
Revitalization Strategy within the Central City area. One component of that strategy addressed the need
for high quality single-family infill development within that area. The recently completed vacant land
survey has identified developable single-family lots within portions of the Northwest Redevelopment
Project and the Central City target areas generally bounded by Highland, Riaho, California and
Waterman.
An intent of the Infill Housing Development Program is to construct high quality single-family homes on
a scattered lot basis, thereby setting the quality standard for future development within the above
mentioned neighborhoods. Hopefully, this standard will help promote existing individual property
improvement at a higher quality level. .
As was the intent by the establishment of the 1985 program, the successful applicants to the Request for
Qualifications (RFQ) will be provided with the financial assistance necessary to acquire vacant properties
located throughout the target area. This assistance is for the following reasons:
. Lack of available acquisition financing
. Additional cost of on-site security during construction
. Higher building cost associated with individual rather than tract development
Given the condition of the San Bernardino Housing Market, qualified residential builders will not be
motivated to acquire, construct, market and sell scattered site infill homes without meaningful incentives.
In any effort to facilitate the infill market, the Agency will provide acquisition financing (with an interest
rate of prime plus two (2%) percent) directly to the successful developers for the infilllots. Agency
financing shall not exceed $20,000 per lot (at an average acquisition rate of two (2) per month, twenty-
four (24) per fiscal year). All Agency financing shall be in the form ofa loan repaid at the close of the
home sale escrow. Monies repaid to the Agency will be redistributed into a revolving loan fund for the
same program to enable greater self-financing and less funding assistance from the Agency in the future.
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COMMISSION MEETING AGENDA
Meeting Date: 10117/94
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Agenda Item No: "J
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DEVELOPMENT DEP~NT STAFF REPORT
Infill Housing Development Program
October II, 1994
Page Number -2-
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Further, in addition to the land acquisition financial assistance, a portion of the repayment to the Agency
loan may, however, be revolved to be utilized as down payment assistance to qualified first-time home
buyers. The maximum Agency assistance would be ten (10%) percent of the home purchase price and
would be repayable upon resale, refinance or change of title. While no cost projection is completely
accurate in all cases, experience has shown the average home purchase (land plus improvements) is
approximately $110,000. This would equate to $11,000 in assistance. But in any event the total loan
amount for acquisition or down payment assistance at any time will not exceed $300,000.
Participation in the Infill Housing Program will be limited to low and moderate income households (120%
of median income) with each of the homes being sold at "affordable" costs established by California
Redevelopment Law. To ensure these standards are adhered to, the Agency will record affordability and
maintenance covenants (CC&Rs) against each property.
The Infill Housing Development Program will remain in effect until rescinded by the Commission, subject
to funding available allocations as determined by the Community Development Commission during
Agency budget adoptions for each fiscal year.
Based upon the significant benefits to the Agency's revitalization strategy, staff recommends adoption of
the form motions.
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KENNETH J. HENDERSON,
Development Department
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COMMISSION MEETING AGENDA
Meeting Date: 10/17/94
Agenda Item No:
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A considerable number of vacant parcels exist within the City limits of San Bernardino. An active
infill housing program will provide incentives to develop housing on these parcels. The benefits
of this program would include reduced development costs due to use of the existing
infrastructure, adding to the present tax base and property tax revenues, and reducing the pressure
for development on the urban fringe. An active infill program targeted to certain neighborhoods
will contribute significantly to neighborhood revitalization.
The infill housing program will require strong support from the Planning and Building and Safety
Departments in order to be successful so that processing of infill development applications is
given priority.
The infill housing program will work as follows:
. The program will be a City-wide Program; however, certain neighborhoods will be
targeted as priority neighborhoods.
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The Revolving Loan Fund will offer short-term, (2 points originator's fee and 2 points
over), to developers for purchase ofinfilllots in priority areas (See attached map).
. Infill developers will arrange for their own construction financing.
. Upon sale of the property, the developer's property acquisition loan will be due and
payable with accrued interest, thereby reimbursing the Revolving Loan Fund and
providing capital for future infillland acquisition.
. The Community Development Commission will select developers from the RFQ
process to implement the program. The developer will have the required expertise in
this type of development and the development of infill design specifications. The
Developers must also possess a willingness to work in the targeted areas, as well as
designated areas to make the program a success.
. Housing developed as a result of this program will be sold at affordable prices to an
appropriate mix of first time home buyers oflow, moderate and/or middle income, as
prescribed by State and Federal law.
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REVOLVI~G LOAN FUND
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In an effort to facilitate the infill market, the Agency will establish a revolving loan fund to
provide acquisition financing (with an interest rate of prime plus two (2%) percent) directly to the
successful developers for the infil1lots. Agency financing shall not exceed $20,000 per lot (at an
average acquisition rate of two (2) per month, twenty-four (24) per fiscal year). All Agency
financing shall be in the form of a loan repaid at the close of the home sale escrow. Monies repaid
to the Agency will be redistributed into a revolving loan fund, the same program to enable greater
self-financing and less funding assistance from the Agency in the future.
In addition to the land acquisition financial assistance, a portion of the repayment to the Agency
loan may, however, be deferred to be utilized as down payment assistance to qualified first-time
home buyers. The maximum Agency assistance would be ten (10%) percent of the home
purchase price and would be repayable upon resale, refinance or change of title. While no cost
projection is completely accurate in all cases, experience has shown the average home purchase
(land plus improvement) is approximately $110,000. This would equate to $11,000 in assistance.
But in any event, at not time, will the total loan amount for acquisition or down payment exceed
$300,000 per fiscal year.
The Infill Housing Development Program will remain in effect until rescinded by the Commission,
subject to funding available allocations as determined by the Community Development
o Commission during Agency budget adoptions for each fiscal year.
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Item:
Exhibit "A"
Action to
be Taken:
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COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
AGENDA
October 17, 1994
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION. OF THE CITY OF SAN BERNARDINO, ON
BEHALF OF THE REDEVELOPMENT AGENCY OF-THE CITY OF
SAN BERNARDINO, AUTHORIZING AND ADOPTING INFILL
HOUSING DEVELOPMENT PROGRAM AND REQUEST FOR
QUALIFICATIONS FOR PARTICIPATION THEREIN
Infill Housing Development Program
Adopt Resolution.
Certified copy of Resolution to be returned to Sabo & Green, A
Professional Corporation.
SBEO\OOOl\DOC\1039
10\12\94 1130 dg
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, ON BEHALF OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
AUTHORIZING AND ADOPTING INFILL HOUSING DEVELOPMENT
PROGRAM AND REQUEST FOR QUALIFICATIONS FOR
PARTICIPATION THEREIN
WHEREAS, the Redevelopment Agency of the City of San
Bernardino ("Agency") adopted and approved an Infill Housing
Program (the "Program") in 1985; and
WHEREAS, the Program was designed to utilize 20%
Housing Set-Aside funds to acquire infill lots in order to
encourage and assist private developers to construct high-quality
infill housing on a scattered lot basis in order to set quality
standards for future development; and
WHEREAS, the present condition of the housing market in
the City of San Bernardino acts as a deterrent to private
activity in the development of such infill housing, requiring
meaningful incentives by the Agency in order to encourage such
development; and
WHEREAS, the Agency deems it to be in the public
interest to revise the Infill Housing Program in such a way as to
provide incentives and assistance to developers to construct such
infill housing for the benefit of low and moderate income
households, and to seek qualified developers to participate in
such a program.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT C~:~~:~~
ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. The Recitals hereinabove are true and
correct and are incorporated herein by this reference.
SECTION 2. The Agency hereby adopts the Infill
Housing Development Program attached hereto as Exhibit "A", to
replace the 1985 Infill Housing Program.
SECTION 3. Agency staff is authorized and directed
to issue a Request for Qualifications from qualified developers
to participate in the Infill Housing Development Program.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY GF
SAN BERNARDINO, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO, AUTHORIZING AND ADOPTING INFILL HOUSING
DEVELOPMENT PROGRAM AND REQUEST FOR QUALIFICATIONS FOR
PARTICIPATION THEREIN
SECTION 4.
The findings and determinations herein
shall be final and conclusive. This Resolution shall take effect
upon the date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Community Development Commission of the City of
San Bernardino at a
meeting
thereof, held on the
day of
1994, by the following vote, to wit:
Commission Members:
AYES
NAYS
ABSTAIN ABSENT
NEGRETE
CURLIN
HERNANDEZ
OBERHELMAN
DEVLIN
POPE-LUDLAM
MILLER
day of
Secretary
The foregoing resolution is hereby approved this
, 1994.
Approved as to
form and legal content:
Tom Minor, Chairman
Community Development
Commission of the
City of San Bernardino
By:
Agency Counsel
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1 STATE OF CALIFORNIA
COUNTY OF
)
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On before me,
(here insert name and title of the officer), personally appeared
, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s)
whose name (s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity (ies) , and that by his/her/their
signature(s) on the instrument the person(s), or the-entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)
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0 1 EXHIBIT "A"
2 Infill Housing Development Program
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