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HomeMy WebLinkAboutR05-Economic Development Agency k-. '-"'_".~"~~_'~'.""'_ o o c o 0 DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACOON FROM: BARBARA J. LINDSETH Acting Executive Director SUBJECT: INFILL HOUSING DEVELOPMENT PROGRAM DATE: November 2, 1994 ---~-~-~-~-~_.~-~~~._.._.._~_.~-~._..._.._~~-~-_.__..-.~-~~-~~-_..._..._.~-~~~_.._.._.._.._~~-~------_..__..-~._- SvnoDsis of Previous CommisslonlCouneWCommittee Actlon(s): On October 11, 1994, the Housing Committee forwarded the Infill Housing Development Program to the Communi~ Development Commission. ------------------------------------------------------------------------------------------------------------------ Recommended Motion{s): (Community DeveloDment Commission) MOTION: 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 INFllL HOUSING DEVELOPMENT PROGRAM AND REQUEST FOR QUALIFIC TIONS FOR P ICIP ATING THEREIN. '~'( ) Administrator ~ ------------------------------------------------------------------------------------------------------------------ Contact Person(s):Barbara J. LindsethlRobert 1. Lemley Phone: 5081 Project Area(s): Central City: Central City North: Uptown Ward(s): Two (2) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS:Amount:$300.000 Source: LowlMod Budget Authority: FY1994-95 Bud~et ------------------------------------------------------------------------------------------------------------------ Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ KJH:RJL:paw:nfillhsg.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/07/1994 Agenda Item Number: 5 o o o ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF MEMORANDUM REAFFIRMATION OF RESOLUTION REGARDING ADOPTION AND IMPLEMENTATION OF THE INFILL HOUSING DEVELOPMENT PROGRAM On October 17, 1994, the Community Development Commission and Mayor and Common Council authorized the execution of Resolution A referenced on the form motion of this agenda item to facilitate the implementation of the subject program. (See attached staff report dated October 17, 1994). Authorization to sign these resolutions expires within a specific period of time if not executed timely. They were not signed within the required time. Consequently, as a routine "housekeeping" administrative technicality, it is necessary to again seek Commission and Council authorization to sign the resolutions. o Staff recommends adoption of the form motion. c'l BARBARA J. LINDSETH, Acting Develo ent Department ......,- Executive Director BJL:SWP:infi11.mem(d1e) CONMtlNITY DEVELOPMENT COMMISSION MEETING DATE: NOVEMBER 7, 1994 AGENDA ITEM NO. S o o o c o o DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECO NOMIC DEVELOPMENT AGENCY REOUEST FOR COMMISSION/COUNCIL ACTION FROM KENNETH 1. HENDERSON Executive Director SUBJECT: INFILLHOUSING DEVELOPMENT PROGRAM DATE: October 12, 1994 -----------------------------------------------------------------------.--------------------------------------------------------------------- Svnonsis of Previous Commission/Council/Committee Actionrs): On October II, 1994, the Housing Conunittee forwarded the Infill Housing Development Program to the Community Development Commission. ----------------------------------------------------------------------------------------------------------------.---------------------------- Recommended Motionr s ): rCommunitv Denlonment 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 PARTICIPATING THEREIN. ~5 Adm mstrator j~fH~:~~-;I( )q Executive Director -------------------------------------------------------------------------------------------------------------------.-----..--------------- ContactPcrson(s):Kenneth 1. HendersonlRobert J. I,em\ev Phone: 5081 Project Area(s): Central Ci\y Proiect. Central Citv North. Uotown Ward(s): Two (2) Supporting Data Attached: Staff Reoort FUNDING REQUIREMENTS: Amoun\:$ 300 000 Source: Low/Mod Budget Authority: FY 1994-95 Budeet -------------------------------------------------------------------------------------------------------------.------.-----.--------------- Commission/Council Notes: ---------------------------------------------------------------------- Kill:RJL:nIllhsg.cdc COMMISSION MEETING AGENDA Meeting Date: 10/17/94 Agenda Item No: .7 ') s o o c o o DEVELOPMENT DEPARTMENT STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Infill HOlIsin~ Development Program In 1985, the Community Development Commission initially approved an Infill Housing Program, and ultimately twenty (20) infilllots were acquired with Agency 20% 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, Rialto, 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. ---------------------------------------------------------------------- KJIlRJL:nfllhsg.cdc COMMISSION MEETING AGENDA Meeting Date: IOll7l94 Agenda Item No: ....-, ''J s c o c o o DEVELOPMENT DEPARTMENT STAFF REPORT Infill Housing Development Program October II, 1994 Page Number -2- ------------------------------------------------------------------------------------------------------------------ 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 evenUhe 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. . ,j"~CL",<::o~/,j~ 7t L KENNETH J. HENDERSON,Executive Director Development Department ---------------------------------------------------------------------- KJIlRJL:nfllhsg.cdc COMMISSION MEETING AGENDA Meeting Date: lO1l7/94 Agenda Item No: .? ) - S" o 1 2 :3 4 5 6 7 8 9 10 o o COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA AGENDA October 17, 1994 Item: 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 Exhibit "A" Infill Housing Development Program Action to 11 be Taken: 12 o 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o Adopt Resolution. Certified copy of Resolution to be returned to Sabo & Green, A Professional Corporation. SBEO\OOOl\DOC\1039 10\12\94 1130 dg s .-. o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 o o 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 ~ity 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 16 WHEREAS, the present condition of the housing market in 17 the City of San Bernardino acts as a deterrent to private 18 activity in the development of such infill housing, requiring 19 meaningful incentives by the Agency in order to encourage such 20 development; and 21 22 WHEREAS, the Agency deems it to be in the public 23 interest to revise the Infill Housing Program in such a way as to 24 provide incentives and assistance to developers to construct such 25 infill housing for the benefit of low "and moderate income C 26 households, and to seek qualified developers to participate in 27 such a program. 28 III 5" '7 o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o c o o NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 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 a~e 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. III /II III III III III I II III III II I III III III s o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o c o o 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 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 Secretary day of The foregoing resolution is hereby approved this , 1994. Tom Minor, Chairman Community Development Commission of the City of San Bernardino Approved as to form and legal content: By: Agency Counsel SBEO\OOOl\DOC\1039 5" , -~I o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o c o o STATE OF CALIFORNIA COUNTY OF 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~ntity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) s- j" 0 0 I 0 1 EXHIBIT "A" 2 Infill Housing Development Program :I 4 5 6 7 8 9 10 11 12 C 13 14 15 16 17 18 19 20 21 22 23 24 25 C 26 27 28 S .I o o c o o 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. . 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. s o o c o o I REVOLVffiG LOAN FUml 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 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 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 Commission during Agency budget adoptions for each fiscal year. nfiU....cdc s d'. I.!, ,,~'d~ ~'=(,. 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