HomeMy WebLinkAbout07.A- City Manager RESOLUTION (ID#3297) DOC ID: 3297 D
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Allen Parker M/CC Meeting Date: 06/16/2014
Prepared by: Brandon Mims, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino to Provide Funding
to National Community Renaissance (National Core) for the Waterman Gardens Affordable
Housing Project. (#3297)
Current Business Registration Certificate: Not Applicable
Financial Impact:
The proposed Action will allocate $1,500,000 of uncommitted Home Investmnt Partnership
Funds to the Waterman Gardens project.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action
-, March 19, 2014 - The applicant submitted Tentative Parcel Map 19533 and Conditional Use
Permit 14-10.
April 3, 2014 - The Development/Environmental Review Committee (D/ERC) conducted a
preliminary review of TPM 19533 and CUP 14-10.
April 30, 2014-Grand Council Enterprises Inc. acquired the subject site.
May 1, 2014 - The Development/Environmental Review Committee (D/ERC) reviewed TPM
19533 and CUP 14-10 and moved the item to the Planning Commission for consideration.
Background
The Waterman Gardens project is a multi-phase affordable housing project being managed by
National CORE. The project is the first in a multi-phase development to engage in efforts to
redevelop the Waterman Gardens neighborhood. The project is comprised of 76 family
affordable units, with one unit allocated to the on-site manager. Unit's composition includes
one, two, three and four bedroom units targeted at very low and low income households. The
City has a combined $1,504,000 available to commit in current and prior year Home Investment
Partnership Funds(HOME)funds available for project allocation The pro j e ct in e e t s all HOME
requirements and regulations and is consistent with housing needs as identified in the City of
San Bernardino 2010-2015 Consolidated Plan and is further elaborated on in the attached
exhibits.
Updated: 6/11/2014 by Brandon Mims D Packet Pg. 1618
3297
Financial Impact
The City currently has approximately $1,504,186.65 of uncommitted funds in its HOME
Program budget for development of affordable housing projects. Committing HOME funding to
this project will severely hamper and/or eliminate the City's ability to fund affordable housing
projects because the City's has also committed its next three years of HOME program funding
to the County Consortium. However, committing to the project does assist the City meets its
funding commitment deadlines.
Recommendation
Staff is recommending Council approve the attached Resolution.
City Attorney Review:
Supportina Documents:
reso 3297 (PDF)
Val 9 Project Description (DOCX)
Val 9 HOME Memo (DOC)
Valencia-9th Map- also showing existing WG (PDF)
Valencia-9th Parcel Map - also showing existing WG (PDF)
WG Valencia 9 Proforma 6-5-14- For City (PDF)
SKMBT C45214061014250 (PDF)
Updated: 6/11/2014 by Brandon Mims D Packet Pg. 1619
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO TO PROVIDE FUNDING TO NATIONAL COMMUNITY
3 RENAISSANCE (NATIONAL CORE) FOR THE WATERMAN GARDENS
4 AFFORDABLE HOUSING PROJECT
5 WHEREAS, the housing strategy for the City of San Bernardino (City) supports
partnerships with non-profit housing developers for the new construction of affordable
6 housing projects; and
7 WHEREAS, National Community Renaissance (National CORE) (or its City-
8 approved affiliate) (the "Designated Owner") has applied for a loan under the City's Home %
Investments Partnerships Program (HOME) funded by the U.S. Department of Housing and E
9 Urban Development (HUD) in the amount of One Million, Five Hundred Thousand Dollars E
10 ($1,500,000.00) to develop a seventy-six (76)-unit affordable family complex in the City of
San Bernardino (the "Project") to provide increased affordable housing opportunities for
11 eligible very low- and low-income residents; and,
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12 WHEREAS, National CORE is seeking additional financial assistance from other
funding sources, including approximately $12,100,000 in Federal Low Income Housing Tax
13 Credit equity from the Tax Credit Allocation Committee; and
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WHEREAS,the 2014 Federal Low Income Housing Tax Credit application requires a
15 letter of commitment for all funding sources; and
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16 WHEREAS, the City of San Bernardino will provide the funding described herein for
17 this affordable family housing project subject to approval of Federal Low Income Housing M
Tax Credit application, execution of the HOME Loan Agreement, satisfactory documents ti
18 demonstrating Project compliance with the HOME Program Regulations, and consistency N
with the housing needs identified in the City of San Bernardino's Consolidated Plan. c
19 L
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
20 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: E
21
SECTION 1. Provided that National CORY obtains approval of Federal Low
22 Income Housing Tax Credits, City HOME Program fiinds continue to be available, the a
23 terms and conditions of HOME Program requirements are met, and a subsequent
Home Loan Agreement is approved and executed between National CORE and the City,
24 the City agrees to provide up to One Million Five Hundred Thousand Dollars
($1.500,000.00) in HOME funds for the development of the Project, at a rate of 3"o
25 interest, with a HUD 20-year affordability term and a City imposed 55-year affordability
term..
26
27 SECTION 2. This Resolution shall take effect immediately upon its
adoption.
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Packet Pg. 1620
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7.A.a
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO TO PROVIDE FUNDING TO NATIONAL COMMUNITY
2 RENAISSANCE (NATIONAL CORE) FOR THE WATERMAN GARDENS
AFFORDABLE HOUSING PROJECT
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
Common Council of the City of San Bernardino at a meeting
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7 thereof,held on the day of , 2014, by the following vote,to wit:
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8 Council Members: AYES NAYS ABSTAIN ABSENT
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9 MARQUEZ
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11 BARRIOS
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12 VALDIVIA
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13 SHORETT
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JOHNSON
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19 Georgeann Hanna, City Clerk
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20 The foregoing resolution is hereby approved this day of ,2014.
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3 R. Carey Davis, Mayor
23 City of San Bernardino
24
Approved as to form:
25 Gary D. Saenz, City Attorney
26
27 By:
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Packet,Pg. 1621
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Valencia 9 Project Description
Valencia 9 will be the first phase of the Waterman Gardens revitalization, a multi-year, multi-
phase effort that leverages public and private, local, state, and federal funding and has excellent
prospects for yielding transformative change if effectively aligned and invigorated with the
strong centralized, evidence-based implementation management structure provided by CORE in
partnership with The Clancy Company and the Housing Authority of San Bernardino County.
Valencia 9, to be located at the northwest corner of Valencia Avenue and 9th Street, will consist
of 76 new apartment units and will serve as the first phase of the broader revitalization of the CD
Waterman Gardens neighborhood. The new community will provide up to 75 units of
replacement housing for the current Waterman Gardens residents with new high-quality E
construction. In addition to revitalizing the vacant site at Valencia and 9th, the initial 0
development will provide significant infrastructure improvements for the neighborhood.
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The project will consist of 76 units within one 3-story and one 2-story residential buildings, ti
which will be built on 4.17 acres of vacant land. There will be one, two, three, and four bedroom
units, ranging from 607 to 1,350 SF in size. There will be one manager's unit, a tot lot and play
area, 113 covered parking spaces, and a 2,200 SF community clubhouse building. Unit amenities
will include Energy Star appliances,balconies, central air and heat, and laundry facilities. E
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The units will be offered to very low and low income households ranging from 30% to 60% of
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Other financing sources will include HUD RAD, funding from the Housing Authority of the
County of San Bernardino, 9% tax credit equity, and a conventional permanent loan. National o
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Core will act as the developer, general Contractor and property manager. On-site social services •a
will be provided by Hope Through Housing Foundation an affiliate of National CORE.
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Development Timeline a,
City Council Hearing: June 16, 2014
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Tax Credit Application Due: July 1, 2014
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Tax Credit award September 2014
Financing close March 2015
Construction Start: March, 2015
Complete construction June 2015
Lease Up: June, 2016
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National Community Renaissance of California
9421 Haven Ave.,Rancho Cucamonga, A •
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To: Mayor R. Carey Davis
From: Steve PonTell c
Date: May 30,2014
Re: $1.5 Million of HOME funds for Valencia 9
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• National CORE will leverage other public and private funds to maximize the number of HOME E
E. units for the City of San Bernardino in the most expeditious timeframe possible.
• A $1.5 million City HOME contribution will be leveraged with approximately $24,000,000 of
additional public and private funding to produce 75 HOME units. The city's contribution
amounts to$20,000 per HOME unit or$8,829 per bedroom. 0
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• Other financing sources will include HUD RAD, funding from the Housing Authority of the w
County of San Bernardino,9%tax credit equity,and a conventional permanent loan. o
• National CORE will be able to finance, build, and place the HOME units into service a timely
and efficient manner because it has already secured other public funding that will help Valencia 9 >
secure 9% tax credits. The HOME funds, along with HUD RAD operating subsidy, both
contribute to a competitive final tiebreaker. A competitive tiebreaker greatly improves the E
chance that the project is fully financed and starts construction in the next six to eight
months. As the amount of public funds in a project is a key component of the project's Q
tiebreaker, projects with insufficient levels of public funds will likely not be competitive for the
foreseeable future. Given the current pipeline of projects in the Inland Empire geographic region
of the 9% competition, a proposed 9% project relying solely on City of San Bernardino HOME
funds for its public funds will not be competitive for tax credits for the foreseeable future unless
other public sources are secured.
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Packet Pg. 1624
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• Valencia 9 will be the first phase of the Waterman Gardens revitalization, a multi-year, multi-
phase effort that leverages public and private, local, state, and federal funding and has excellent
prospects for yielding transformative change if effectively aligned and invigorated with the strong
centralized, evidence-based implementation management structure provided by CORE in
partnership with The Clancy Company and the Housing Authority of San Bernardino County.
• The "repurposed" revitalization of Waterman Gardens will transform a 252 unit public housing
development on 38 acres at the center of the zone into a multi-dimensional, mixed-income
housing, commercial and community facilities and educational partnership to transform an area
four times that size.
• CORE, chartered in 1992 and based in Southern California, has a high-quality record of
development and operation of over 8,000 rental housing units in four States,including 6,900 units
in Southern California. We are unique in our ability to seamlessly deliver and manage high 9
quality yet affordable homes at a reasonable cost,offering the following one-stop services: E
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• Project management
• Financial structuring
• Entitlements
• General contracting
• Property management
• Social services =
• Financial guarantees E
• Asset management
This one-stop capacity and process enables our team to deliver the maximum number of high-
quality affordable housing units and a wide range of supportive and property management M
services to allow for true community transformation.
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