HomeMy WebLinkAboutR22-Redevelopment Agency
I. j
REbCVELOPMENT AGENCY .R~QUEST FOR "'~MMISSION/COUNCIL ACtION
From: GLENDA SAUL
Subject: APPROVAL OF INFILL HOUSING PROGRAM
Dept: Redevelopment Agency
Date: NOVEMBER 12, 1985
Synopsis of Previous Commission/Council action:
-On July 1, 1985, the Mayor and Common Council set a date for a Housing Workshop.
-In August, 1985, the Mayor and Common Council held a workshop on housing and
referred the concept paper on ;nfill housing and acquisition and rehabilitation
to the Redevelopment Committee for further development and refinement.
Recommended motion:
(MAYOR AND COMMON COUNCIL)
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING INFILL HOUSING
PROGRAM AND AUTHORIZING STAFF TO IMPLEMENT THE SAME.
(COMMUNITY DEVELOPMENT COMMISSION)
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING AND ADOPTING INFILL HOUSING PROGRAM AND AUTHORIZING
STAFF TO IMPLEMENT THE SAME.
Contact person: GLENDA SAUL/KEN HENDERSON
Phone: 383-5081
Supporting data attached:
STAFF REPORT/INFILL PAPERS
Ward:
1-7
ALL
NOVEM8ER 18. 1985
FUNDING REQUIREMENTS:
Amount: $
N/A
Project:
No adverse Impact on City:
Date:
Council Notes:
Agenda Item Nof< 02.c;;{
t. ~
CI....{ OF SAN BERNARD~..O - REQULJT FOR COUNCIL AC'. .ON
STAFF REPORT
In July, 1985, the Mayor and Common Council set a date for a workshop on
housing and followed that action with a workshop on housing in August, 1985.
The two (2) primary programs considered were the Housing Revolving Loan Fund
(20% set-aside) and the infill housing program. Inasmuch as the Revolving
Loan Fund program contained an infill housing component, the Mayor and Common
Council directed staff to combine the two (2) programs and to develop an
implementation strategy to be brought back before the Mayor and Common Council
for approval. After further discussion, the Mayor and Common Council referred
the RLF/lnfill program to the Redevelopment Committee for further development
and refinement.
For the past three (3) months, the Redevelopment Committee has worked with
staff in further developing the inti 11 program. Five (5) "Infill Opportunity
Zones" or priority areas were established, with all five (5) areas included
within the City's Enterprise Zone boundaries. After discussions with the
Committee, Agency staff sought and received a funding designation in the
amount of $2 million for infill housing in the City's 1986 $36 million
single-family mortgage revenue bond program. The $2 million in bond proceeds
for the infill housing program will be utilized as permanent financing for
first-time home buyers as defined by state law.
Briefly, the program would work as follows: The Commission would select a
developer to implement a pilot project in priority area 111 bounded by the
1-215 freeway on the east, Mt. Vernon Avenue on the west, Fifth Street on the
south and 9th Street on the north. The Agency would loan land acquisition
funds to the developer, as needed, with the developer responsible for
obtaining construction financing and the single-family bond issue providing
the permanent financing. Upon sale of the property, the developer's property
acquisition loan will become due and payable with accrued interest, thereby
reimbursing the Revolving Loan Fund and providing capital for future iofill
land acquisition,
The following represents general infill development guidelines that should, in
the opinion of staff, be strictly adhered to when it is apparent the situation
applies to greater San Bernardino:
The developer should look into a broad range of possible uses for a
particular site. Connecting non-traditional markets with innovative
development options is often the key to infill development.
Location is especially crucial to the marketability of infil!. A
convenient and viable neighborhood, or lack of it, can make or break a
project. Particularly where more risky settings are concerned, only
the best sites should be considered first. In every situation the
developer should clearly understand from the start the site's
development costs and limitations.
Market evaluation should be based on the site's specific needs. A
broad regional market analysis may relate minimally to the advantages
and drawbacks of special infill situations.
Convenient area amenities will improve the infill market. By
supplementing local attractions with a mix of project uses, the
developer may help create or strengthen the infill location's appeal.
75-0264
Design of an infill project should be sensitive to
texture of its surroundings and should anticipate
concerns of local residents and businesses.
the
the
scale and
legitimate
Infill development design that contrasts with the neighborhood context
may be justified if it enhances, rather than conflicts with, the
existing environment. Or, in the case of nondescript neighborhood, a
new project may need to stand out or isolate itself from its
environment in order to survive.
A higher density is often acceptable when the product creating it is
superior, especially when the increased density is not obtrusively
visible in the neighborhood.
The economics of infill development present more problems than those
of new suburban projects. Higher land costs must be offset by lower
project costs or by higher revenues. Often a well-conceived and
imaginative design and marketing concept will help in securing
financing for an otherwise difficult or innovative project.
Containing costs at every step of development is essential to
competitiveness. Developers should check thoroughly for development
hazards that might affect cost estimates. For sites with development
limitations such as ravines or floodplains, costs may be reduced by
clustering units or by implementing flexible zoning ordinances.
An infill project usually depends on scale economics to achieve a
market advantage. The uniqueness of the site and project often
entails custom-designed construction, but developers can capture some
efficiencies by distributing overhead costs across a series of smaller
projects.
Developers of project types new to areas may need to contribute more
equity than normal toward obtaining financing. They must be prepared
to convince financiers of the value of their projects without the help
of comparable projects (which are often difficult to identify) and
surrounding property values (which are usually lower than those of the
proposed infill projects). Developers may need to work closely with
with appraisers, pointing them toward the most representative and
comparable projects.
The developer may need to make financing available to buyers of
residential units to avoid or minimize difficulties they might
encounter with institutions unfamiliar with the infill product.
Pricing can be difficult to determine because of imprecise
comparables, different strategies for phasing projects, and
complications caused by the market's perceptions of infill locations.
Based on these problems, one can understand that marketing practices
for conventional non-infill development may not be appropriate.
Adoption of the resolution by the Mayor and Common Council and the Community
Development Commission would approve and adopt the infill housing program and
implementation strategy, and authorize and direct the executive director to
implement the pilot phase of the program forthwith.
468L
1
RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AND
2 ADOPTING INFILL HOUSING PROGRAM AND AUTHORIZING STAFF TO
3 IMPLEMENT THE SAME.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
5
SECTION 1. Recitals. The City of San Bernardino and the
6 Redevelopment Agency of the City of San Bernardino have jointly
7
developed an implementation plan for an Infill Housing Program
8 for the City of San Bernardino, utilizing Community Development
9
Block Grant funding made available to the City and the 20%
10
Housing Set-Aside Program of the Community Development Commission
1] utilizing the Redevelopment Agency's tax increment funding. The
]2 Revolving Loan Fund Implementation Plan and Infill Housing
]3 Program have been reviewed by the Mayor and Common Council, and
]4
the Mayor and Common Council now desire to approve the program as
]5
outlined, and to authorize staff to implement same.
]6
SECTION 2. Implementation. The City of San Bernardino
17
hereby adopts the Revolving Loan Fund Implementation Plan and the
]8 Infill Housing Program, as recommended by the staff of the
19
Community Development Division of the Redevelopment Agency of the
20
City of San Bernardino, and staff is authorized to proceed to
2]
implement the programs hereby approved.
The target areas as
22
specified in the plan are hereby approved, and the Acquisition
23
and Rehabilitation Program and the establishment and
24
administration of the Revolving Loan Fund as proposed are all
25
hereby approved. Staff is further authorized and directed to
26
proceed to implement the plan in the most expeditious possible
27
28
manner.
1
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
2
3
4
5
6
7
8
9
10
11
12
13
day of
meeting thereof, held on the
, 1985, by the following vote, to
Bernardino at a
wit:
AYES:
Counc il Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day
14 of
15
16
17 Approved as to form:
, 1985.
Mayor of the City of San Bernardino
18 /12. / / / ;</f~1-~/
{/ 1;;1-'.....,,(.. -' / ........'7.
19 City Atforney
20
21
22
23
24
25
26
27
28
2
~
I
RESOLUTION NO.
2 OF
3~
RESOLUTION OF COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
SAN BERNARDINO APPROVING AND ADOPTING INFILL HOUSING PROGRAM
AUTHORIZING STAFF TO IMPLEMENT THE SAME.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
5
SECTION 1. Recitals. The Community Development Commission
6 of the City of San Bernardino and the Redevelopment Agency of the
7 City of San Bernardino have jointly developed an implementation
8 plan for an Infill Housing Program for the City of San
9 Bernardino, utilizing Community Development Block Grant funding
10 made available to the City and the 20% Housing Set-Aside Program
II of the Community Development Commission utilizing the
12
Redevelopment Agency's tax increment funding. The Revolving Loan
13
Fund Implementation Plan and Infill Housing Program have been
14
reviewed by the Community Development Commission, and the
15
Community Development Commission now desires to approve the
16
program as outlined, and to authorize staff to implement same.
17
SECTION 2. Implementation. The Community Development
18
Commission of the City of San Bernardino hereby adopts the
19
Revolving Loan Fund Implementation Plan and the Infill Housing
20
Program, as recommended by the staff of the Community Development
21
Division of the Redevelopment Agency of the City of San
22
Bernardino, and staff is authorized to proceed to implement the
23
programs hereby approved.
The target areas as specified in the
24
plan are hereby approved, and the Acquisition and Rehabilitation
25
Program and the establishment and administration of the Revolving
26
27
28
Loan Fund as proposed are all hereby approved. Staff is further
authorized and directed to proceed to implement the plan in the
most expeditious possible manner.
-
1 Dated:
2
3 Approved as to form:
4 AGENCY COUNSEL
5
6 By
7#
,'f)/, --e.
~ ./
7
8 The foregoing resolution was duly adopted by the following
9 vote, to wit:
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
AYES:
Members
NAYS:
ABSENT or
ABSTAIN:
2
REVOLVING LOAN FUND
IMPLEMENTATION PLAN
The purpose of this paper is to present an implementation plan for the City of
San Bernardino's Revolving Loan Fund, which will be established with funds
from the City's Redevelopment tax-increment 20% housing set-aside program.
Implementation of the program will be consistent with Resolution No. 85-405
adopted by the Mayor and Common Council on October 7, 1985 which resolves that
the infill housing program will focus on development of new single-family
homes on vacant lots in established neighborhoods within the Enterprise Zone
of the City of San Bernardino.
The infill housing program will also be supplemented by an
acquisition/rehabilitation program to address specifically the problem of
boarded-up homes in those neighborhoods targeted for the infill housing
program, as described further below.
INFILL HOUSING PROGRAM
A considerable number of vacant parcels exist within the City limits of San
Bernardino. A land use survey completed by the Planning Department in 1981
(and updated with respect to the West Highland and Mt. Vernon area plans)
identified 557 potential infill lots. An active infill housing program would
provide incentives to develop housing on these parcels. The benefits of this
program would include reduced development costs due to use 0f the existing
infrastructure, adding to the present tax base and property tax revenues, and
reducing the pressure for development on the urban fringe. The program could
also include demolition of dilapidated structures. 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
for concentrated infill activity, as described further
below.
A number of planning modifications will be implemented to
favor infill development, including:
- priority processing for infill projects;
- pre-approval of certain standard designs for infill
housing as submitted by developers;
- exemption of engineering, planning, building permit
and mechanical fees imposed by the city and provided
for in Ordinance No, MC-48l chapter 3.18,
"Enterprise Zone Incentives";
.
- modifying regulations to allow greater site coverage
(reducing setback requirements, relaxing minimum lot
size requirements and allowing zero lot lines in
special circumstances);
- modification of building codes to permit
factory-built and modular housing;
- rezoning land from commercial to residential use in
certain areas so long as the zoning change is in
accord with the City General Plan;
waiving property tax delinquencies on potential
infill sites in return for development on those sites
within 18 months; and
waiving or reducing off-street parking requirements
in certain instances or in areas where parking is not
a major problem.
The Revolving Loan Fund will offer short-term, low interest
loans at below-market rates (7 1/2% to 8%), accrued and
deferred, to developers for purchase of infill lots in
priority areas (and other areas, upon RDA approval); also,
in appropriate circumstances, additional funds may be
loaned for demolition of dilapidated structures in these
priority areas.
Infill developers will arrange for their own construction
financing.
Approximately two million dollars of below-market-rate
mortgage revenue bond financing will be provided as part of
the City's 36 million dollar 1985 allocation so that
attractive permanent financing will be available for
purchasers of infill housing; initially, CDBG funds will
be used to pay the fees for the bond financing reserved for
the infill program in the first year to facilitate
implementation.
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 infill land acquisition.
The Community Development Commission will select a
developer to implement the pilot phase of the program. The
developer will have the required expertise in this type of
development and the development of infill design
specifications must possess a willingness to work in the
target areas as designated and provision of all other
necessary resources to make the program a success,
-2-
Housing developed as a result of this program will be sold
at affordable prices to an appropriate mix of first time
homebuyers of low, moderate and/or middle income, as
prescribed by State and Federal law.
TARGET AREAS FOR INFILL HOUSING
To implement the program, the Mayor and Common Council will designate a number
of "infi1l opportunity zones" which will be prioritized for initial program
implementation. The first five (S) priority areas are shown on the attached
map and are labeled in order of priority, from 1 (highest) to S (lowest).
These five (S) areas coincide with the City's "Enterprise Zone" designation.
The priority #1 area is the area of the City of San Bernardino bounded by
I-2lS and Mt. Vernon between Sth and 9th Streets.
This area is on the west side of San Bernardino and is a minority area with a
high concentration of Mexican-American families. There are several community
facilities and parks which serve the local population. In addition, there are
numerous potential infill lots (approximately 40) in an otherwise developed
residential area.
The area is stable and in need of moderate rehabilitation. Six (6) boarded-up
homes were observed during a brief neighborhood review. In addition, there
are a number of single-family and multi-family structures which appear in need
of rehabilitation.
The area is part of the Neighborhood Housing Services (NHS) project area
(which also includes the immediate area to the north to Highland) and is
entirely contained within the City's designated Enterprise Zone. The area is
also a targeted area for the City's single-family and multi-family
rehabilitation programs.
Given the neighborhood conditions and eligibility, this area will be an
excellent area to begin implementation of a concentrated infill housing and
neighborhood improvement program.
Infill opportunity zones will be established for a period of one (1) year with
the possibility of extension. Expansion of the program will proceed north and
northeast to the priority #2 and #3 areas (which have similar characteristics
to the priority #1 area).
The western expansion of the infill program, to priority areas #4 and #S,
could be problematical and would be re-evaluated after experience with the
first three (3) priority areas. Areas #4 and #S have larger vacant parcels,
higher vacancy rates and greater concentrations of boarded-up houses. It may
be appropriate to combine the infill incentive program with a number of other
incentives and subsidies in order to ensure successful overall neighborhood
revitalization in areas #4 and #S.
ACQUISITION/REHABILITATION PROGRAM
The infill program will be supplemented in the designated target areas by an
acquisition/rehabilitation program focused specifically on boarded-up homes in
these neighborhoods. As financial resources permit, the Revolving Loan Fund
-3-
will provide short-term loans at below-market rates with payments accrued and
deferred, for purchase of boarded-up homes in priority areas, as designated.
Should properties be dilapidated, funds will also be made available for
demolition, as indicated above.
Individuals or developers purchasing these properties must find their own
rehabilitation financing. Whenever possible, the City's single-family,
owner-occupied rehabilitation program or rental rehabilitation program will
offer loans at attractive interest rates as a further incentive for the
program in these priority areas. Upon completion of rehabilitation, the
properties will be sold (or refinanced, in the case of owner-occupants) and
the acquisition and/or rehabilitation loan(s) will be paid back to the
Revolving Loan Fund with interest.
ESTABLISHMENT AND ADMINISTRATION OF THE
REVOLVING LOAN FUND
On January 1, 1986, the tax-exempt financing will be in place to support the
infill program.
The source of funds and application of funds for the infill program are
presented on the following page. It is estimated that 590,000 will be
available from the 20% housing set-aside from current redevelopment projects.
Should the proposed merger and refinancing of Meadowbrook and Central City
projects be successful, an additional $500,000 will be available. Therefore,
it is likely that the current projected shortfall will be more than offset by
future tax increment funds.
Direct staff costs to administer the Revolving Loan Fund program include a
housing specialist, a loan officer and one clerical position. Duties of the
loan officer and clerical staff may also include other related functions, such
as administration of the Rental Rehabilitation Program. Agency benefits are
included as well as 25% of the time of the Redevelopment Agency's housing
consultant to assist in final design and implementation of the program.
Assuming that the program begins in January, 1986, only half of these direct
costs (or $45,700), will be expended in the current fiscal year. Likewise,
only half of the $30,000 in estimated indirect costs (for overhead and fiscal
support) will be expended in the first year.
Two million dollars ($2,000,000) in tax-exempt financing can provide mortgages
for 30 to 35 new infill homes over the next three (3) years. As homes are
sold, the acquisition loan is repaid to the Revolving Loan Fund and therefore
available for more loans in subsequent years, including larger loans for
purchase and rehabilitation of any abandoned homes in the priority infill
neighborhoods.
Redevelopment Agency staff will prepare guidelines and maximum loan limits for
the program and will prepare the loan documents in conjunction with the City
Attorney's office. Staff will also prepare publicity releases for the
program, assist the Community Development Commission in preparing the
developer RFP and inform local realtors who might be interested in working
with the program. Unless unforeseen difficulties arise, the program could be
underway in early 1986.
383L
10/85
-4-
.
REVOLVING LOAN FUND FOR
INULL AND ACQUISITlON/REHABILItA1'ION
Sources of Funds:
1985 Mortgage Revenue Bonds
Mortgage Fund
20% Set-Aside Funds
CDBG 1985/1986 Infi11 Program
CDBG 1985/1986 Demolition Funds
CDBG Sewer Hook-Up*
Origination Fees (From Purchaser)
Application of Funds:
Below-Market Rate Mortgages
Points To Secure Taz-Exempt Financing
Loans (For Acquisition)
Direct Costs
Indirect Cost
Origination Fee**
Sewer Hook-Up
Demolition
Current Shortfall:
Assumptions:
Cost Per Unit: $60,000
Acquisition Loans: 7 1/2% to 8% interest
* CDBG Contingency
**Passed on to Homeowner
394L
$2,000,000
120,000
90,000
50,000
25,000
61,500
40,000
$2,416,500
$2,000,000
80,000
300,000
91,400
30,000
40,000
61,500
25,000
$2,627,900
- 211,400
-
'.
\
\ .
'YIIWf
.
~~. ,..A;~rJ"o / ~ l .,,,.. ...~ ~ ~I~ :';O"..~ ..~..,.)"
~ I...~''''. ,:~-:t.. I ".r. '''k< ~t .... ... ....- '.::-::; ~,I;J.~~ !: ~ L~
~,~ .' ' ~ . lj" '.' 1'1 ... '''t- ~'I (if' r'ti... J, "I' ~ .', ,
~..),. \. ~"'~ 'J ~:~:.~~;> -~; ;",l'r', ',:~ .'1,(1 ,; .:;~,~~" '-
~/~~,.... ">~'W~;!"~~~"';:l",,~~;"L. .... ...- ':,;;Lf'::'
';:~;r~' . "'>. ''''::''''~':'~~ ,,'. -" ..' . : 1I'6!: ::,:.. -
. ;;: ! ~_ ~, It.;. ~ ~ '\ ~: ~4:, ~"I.. .. .21 ,-" ., .: rotl"'" ,- . '~
::: :I"id-' ~, '"to--;~:/i'. tOO ; .l'~': Oy ~'e ; . :. ....~.: .. 6[.. .j..).!.!..i....!.!... ..-oDD'
i :':':'J~' ~ ;,' ',' '. -...........'; :1 r1',:: l,.., I";:.:',' - M
,;>-"/I"~ ~...:; " .".-.....'''. ~~ ~ ......!:I . !..I'.:..!.:I~''''
_ .:... ~ _.0-..,,-,,""00. _'''u - ~ .. ... ._; .
_ "":","1;' -~'" '>. ...}' ~: ........ ,I; " : ;~~~:i .; ,n;:..~........
~..~ ":'&/'~ "',::' \ ~.. ,'-' "'4", ;; ~ ;~W!"i ,-' ~:^';f I~ ~~
.,. ... :!b ~.. .""""- _..... :> :9..~ ,. . CAI.:'~"''::'' I~ 1.G'
.: ~ ~\..... , 0.'..::.......... : _r~. ~ ow 0- - .' :
. AWl' ....-;- __, _ Loolovr . _ :~: '_n ..1 1 ...
..... ':' " fI. I"" l"~ ~=&f: ...~
". oc.OI" '~l.. ;?<",: ~" .....~,,,......w "'1ts ..';"~~..., .", I :~ ;:~:.:l;J i !i
\ ~";' ,..o.c. ..~, ~o C~l"~ ~~1j"';!:: .... , ,~t"~ .-
: t: _II".. 'i .~.~ L'r~OI ,! .
..' .f'.., ~(.:,~, :" ~ ~ ~ ~I~ I' .to
. -:;1 i.~' ~ ~ 1.~'iT .... .. ~~t: ". . i"
~ . " I~' r&~ . .......~';..~;....,.... .t, .i::..-:-......~. '. .Jr~"..';'-,:..'''~:-.'- '
~>' ;.:: . ;;, :\ ~.' ......(~~ -N.' ;;'j;!~ ,~~, ~ii ... "., . ..~ ., .~
I,U' - '>' - L<~ . ' . . r ,~I\.t.. ." _&:~~
," . "....I!'~'t~. OQ!J, ',~ ...;. .~. ;:(:~....,.~,,- ,- , .AIIS..A'l ~ ~~
I 'i :;." \ .. :: '10 \. """R~. .. aIUI' .1 ~.. IF''''::
. ~ 1.... ~\ .. )." "., ,,:::1 .J. - .
: . CLIJI I \'~,: .000.. ~ . .',;. ~ II . . '! :
......, ,'.', \ ".:."~:.".~ ii' ". . i'::,,,';:
.. . '\ l "l ~" ,r; M" n _I . ':.:~T
'''', .. . ..' ~: ,. . ,,' "'m"I':' ~- .
~ ~.,~~ ~ i"'lil; ""'p','... :-;-,' ' 'r.r I" ", I' :I;.d
....00. '1~;~f;11r\~," ~~.. .; :,;;,;,' ~ ..I'i'~:~ j!..~j! i . !. il:n"l.:j;j~
I'OIl ... ?_!~ "c ....,,1...','.-. . . i"'!'!!' ,.,..i ..\1_ ~"~'''cr .:~. ,. !!-~
. "" ,~L~ ' .....L. "'_.u... -..-- '
-. ~"'." I., ,....., . 'n -....... ij
.-,:~ n.. nr
; i:o~'; : ~I"; " =. ~tt:" ~~; .,r.~, ~_ ~ ;~; :';:i
"1 .. 3 11,0' I' i -'-.. ~l' au~' 1~1' ..'0" : . ~.:~ f,u..rTf'"
i It . , ., .q.1OI HIGHlA" --..- --
,
'-..
...
).. ,...
'"'
'"
~I
'\
.
\
\
".-1
, I
. )
~l
-. I
- I
., iJ ~ ~ cin- Of 1101'0 I
~ -
)!!ili~,-
._!if-~ .
J .0-..:.. ....
;. i ,n
~ 4;1JUl~". /'
,. . ''''i- i. " i . . i ~;, ':: ...
-'- .~L,;:.:.."-':~. " I
.., P!~ --i -.~ ,: ~ ';::.
..I,.~:,~: ~- ;;t:~':"~I'''1 '" ';~'d;;". ...-i,,:.
..~~ :: ~..." !. ~ ..., ft I . ..
,,1~I..r'll : ,-:' sill Iii;
" i " ; ! ':-, ".. i ,'I_,II( ...=-'
j .. ~~ : -",~..., ,f ~fjf' .. ...
'II ~U i .".",.,," ti\ :~, ". 'r~ I~ ".." , ..., . ~
~ ~i.,.:~ ll~t~::"~::- (\ 1 ,'" t::.~ ;:..~-'F' ;;1'.. ~ .. 'r.. f-!n-"- =..1 ~ l:
,,_i~ijf~'''~lij'':-i'h~l; ,. ~ i W!.1!"."" ~'rll "," ~,.. ~:i1'*..t; B~nl
. iT':"';'i !I~'-';r-Ii ::;" ,,\" J';' 'I-~~' ''''''i"' . ~ i->L -,; i~~.. ir...:~ ,-.;:~, ~
~:lL:'\;'1111';i;ff;-;~"~;::" ;" ;,,;.... , ...::. ;,i'I' '''",' ,'; N::' I ,,'"7:''' L"~,'" It fO, ... ,
:- ..~_II!JIt" ~:Ut..o~' ~.,." - I_! F'.:I.... .~t~li.-...---:
.... .... J: ~ "'... j - ~,~ I -
, l I 1!1 . --r.mi ......,,"~'. ~ ~:I ....c:..o ,. ",", ~ .
""'1' '^=..,,~.,.._, ;! ~ I!;':" i ' _,;':~ l~f,1 ;~;~,"",::~-:<r -T,:-'" ~11: ';I'~' '1 ~.~:r.,,~~, ,.". .::~:!.:"'::~l;";'~', :.:~.,
~ ~i= i I?"'""" cOu.'.e'u 1.. :';I:!f: / ~~:".~i' .', It. rc....~o~" :.~..,-. I nil
,. H'" l; 01' ;.- . -~.;.~ - f%~~'o" v. ...",.. ~ ~1WI(X)I:.'~\1
......1. ~. :' I,.. ~. "00"." t" .. :>< .. ~ - ortl"l . i 'u \. ~~tl ..~.. ..,;, ' \1 [.__
II 1_; ,,; : <~"'"' -,1:</ -~~:,:., ,; - . .'-.. ' . ': IL...!. , 1 \
J... ~.:~:..21ll%.,,~ l -~r ",,~::o j '/ :;:;.,,::."j...,.t :', "'lTO .....:~. .:~ -'" ;;', . ";' '.{r=;...."..,~~,u, ~~; ~'~~ ~
,. m llJj'. . " ~'" .....,u - ,. ."~"~.... II ," , ,'" "'1 'K '-:",: 1~
~ ~:: .. I._ ....i'::::''' > OC' ~IZ-rj"""'&,. ~. ~.....:;: I"I ~. .. --:::0.,...
,; .;....,,1..1-;;,.. ~~' . ....~ ~r~ " iI~" "l;'~t !~-,..._. 'lr"T",:I. ". ,., . :
, .. ;; I ::.... ..' ,. ~ ~..... (lilt _.r-." ':-. ~ :.( '''..::r-- ::
, . . ':";_. .1(...10 ~ ~ ..~., ,... ....u.' ~. __'. ..;" -"'f'~'.o ~ 'I ..
.:. .~}.rt''':,:~-~.~....~~~. _''''1r;'''-:'~''''_1[''~~ 5,1';;;;' "I.~~ .. ": i~' -......~ '
,," ..:; , l.... I _: ';" Po" .... 6 -. - ". .,- __..t:" ~
_ r II" '" I ,': ".-"'"","", ["''''' ;11'" '. l ..' :..,.."......,.-
. 'fA.~": 1... .. I ._:c ~ ofiiiM' .I'! - or-- ~ I' 1: ,,~'l- m~
~.. ~ I . . ~: :. ~ 1i'liT".~.:crJ 1,_"...."" II: owo.r....:.... i ~l ~'. ~ I 1 '; " I ~ I\. ~;-::.'\ ,T... :;.: .. :. .... >'l~ ifill
:i"e~...~ ~'.fii::'!;;.- ''':;'' I": I "-r''''l. . '~:..:~'-'], ;.!!-:i ,. .,U.. ..~ :~'""Y .;., ~,:., I -
..l.,;L ,:_ '!-::~ ..1..- 0 I' . ~ ~~ :~l~? 6,,,.,,, I~~ t~~"
I'.. :..~ _ u"..~,.~, ..J .""'" ~: ~ ;'b;, ,I' ~...t:_o I "....." .. (J~,.;L. I. -
~r.JI~ - ..~ I: :' ~14I 011 r ~r7.'"~~ : ~>..:!,. ..~.~:.. 6 '.......',.. .., ,.. 1 'I~~ -..... ~
... >>..1 _,. -,. ___._ ~ .,..,.~. ..cu ~tJ;to "...... ~ ~I ~ .. \
...~
'.......'"
~ .
" I E,~ l..rs.o.
"'lbM~
"'''''~'
~(~~ .O.II~
.'~iSTt \._
,n.
"
! ,. .~
.'7.~. -.1:.
, . f4-
"""11
,I
'j I. ....C...II
:I:l . 1.. ~O"'i'
.I.: I,,: l~!i ~~
.. . 1: t1
i: .
lJ,);,1 "
::i'~,~
:W.,~~
,.. ,:.,
J.~
OJ. ~ ~
.........
""isH,;\.. ,,,'
".' ,
. .
-. ..
I f"-'::
-
(=,-~
0.0. . '"~
, -"'f:":'
~"!
r~~:
'" .... "
;
~
~
,
J.:' , ,~ "
;.1,0" "':.1
('..II~ ...
"-
: .
I
~/
T
,
.......~'CIO
MU$tDJ
'" "
::. ...~
,
'~I
'of.' I"..
......, ~- . ."-
:"'3;1 51
-
-~
. ."
,
..
...~ ':. I ~. ~
I' ...,. :..,
. .~,- ....~1 -;,:
.: ",:~r= 1 :......."". , ~.:
,",,' '
'~'ril~..'r....i'i I .
'I-"-' m, ,,,. , '(
.. 1,[ . "
,. ~,;- 0,..
1ii1 '0.. "
.
fLif" I ';.
.,~-~.
"--.' c'.
, .
.'
"
.
rrl~ .:.,
".~'_ ~ fA":
,: - .... ..
, ~ ::: . : .
-if ..>!
,t\1 .
~If<<_'
,.-
.;~.~
.
.
~!!!!
CONCEPT PAPER
CITY OF SAN BERNARDINO
INFILL HOUSING PROGRAM
Intreduction
This concept paper proposes the creation of an intill housing program in the
City of San Bernardino. Establishment of such a program would exert a very
positive influence on the overall housing stock of the City through:
a) upgrading neighborhoods through new construction of
quality homes on existing vacant lots;
b) helping to reduce or eliminate blighting influences in
neighborhoods through demolition of seriously
substandard structures, followed shortly thereafter by
new construction; and
c) contributing to overall revitalization and increased
private reinvestment in neighborhoods 'through close
coordination of infill activities with the City's
existing housing rehabilitation programs.
The proposed program is designed to be voluntary in nature providing
incentives to existing owners of vacant lots and lots containing substandard
structures to encourage them to build and rent or sell the finished product.
This voluntary program would prove the most cost-effective to the City.
Background
Among the various strategies for creating affordable housing, intill housing
has achieved considerable popularity in recent years.
Cities and counties
have found that infill, generally perceived as the development of vacant
parcels in existing neighborhoods, serves a number of public purposes
.
'-
'r
.
concurrently. In addition to putting undeveloped or underutilized urban land
to more productive uae, the housing created makes use of existing
infraatructure, thereby reducing the cost of development. Furthermore,
aggressive development of in fill housing will reduce the pressure for
development on the urban fringe, reducing sprawl and conserving agricultural
and environmentally sensitive lands. Infill housing also provides additional
support for existing local commercial establishments and transportation
systems.
An infill program is not necessarily limited to vacant parcels. An infill
strategy can also include complementary activities such as demolition of
dilapidated structures. The more successful infill programs have operated in
conjunction with concentrated code enforcement and rehabilitation programs
intended to reverse the decline of certain areas and contribute to
neighborhood revitalization.
In spite of the advantages noted above, an infill program must be carefully
designed and administered to be successful. It requires close coordination of
local governmental functions including planning, community development and
redevelopment. Without this coordination, and a number of local developer
incentives as well, an infill program is likely to encounter difficulties.
One obvious problem arises when existing infrastructure is deteriorating or
operating at capacity. In addition, since an infill program is by necessity a
scattered-site program, economies of scale associated with single-site
locations may not be present. Since infill operates in existing
neighborhoods, development is likely to come under scrutiny from neighborhood
residents and groups who may oppose development of certain sites due to
possible increased densities. Therefore, to have a successful program, the
-2-
-
.
-
.
neighborhood must be involved as early as possible in the planning stages.
Perhaps most important to the success of an infill program is strong support
by the Planning and Building and Safety Departments, The planning and zoning
process should encoursge and support infill development. This support
includes participation by City staff in design of the program, expedited
processing of infill development plans and permits, possible waivers of
development fees and flexibility in granting variances for dealing with issues
such as odd-size lots, lot coverage requirements, and other special building
circumstances. These types of local regulatory support have proven to be
essential for success in an infill housing program.
Initial Research
A number of cities and counties have developed infill programs and have
operated them for several years. Their strategies range from, on the one
hand, restrictions on sprawl which limit new development to certain predefined
areas (such as in San Diego, California) to, on the other hand, programs which
stress incentives for infill (such as in Portland, Oregon). Most other
programs fall in between, All of the programs started with surveys of vacant
parcels, and all found abundant, potentially buildable land. However, many of
these parcels had significant problems impeding development, such as parcels
owned by absentee owners who may be difficult to find or by people not ready
to sell to developers, parcels located in neighborhoods where there was
opposition to development, or where public services necessary to support
infill development were either overtaxed or not available. There were also
the frequent problems of odd lot sizes and other bUilding circumstances and/or
requirements requiring special public dispensations.
-3-
.
~
.
An infill program begins with a survey of potentially infillable land in the
City in order to determine the potential scope of the program. San Bernardino
is fortunate in that a complete land use survey was completed in 1981 and has
been updated with respect to the West Highland and Mt. Vernon area plans. The
survey provides good data in map form. The Planning Director estimates that
the aurvey is probably 95% accurate at the current time. An estimated 557
infill lots have been identified in this area.
Planning Support for Infill
As indicated above, the infill program will require strong support from the
City's Planning and Building and Safety Departments in order to be
successful. It is critical, therefore, that the Departments be closely
involved in the implementation of the program and that their involvement
extend to certain regulatory reforms which will provide incentives for infill
development.
Currently, processing of development applications is quite rapid, with most
cases heard within thirty (30) days of submission and, unless there are
problems, approvals follow shortly thereafter. In addition, many of the
existing procedures are already quite flexible. For example, although the
minimum lot size for building in San Bernardino is 7,200 square feet, if the
proposed site is smaller but in a previously plstted subdiVision, or
consistent with lot sizes in surrounding neighborhoods, no variances are
required.
Other planning modificstions to favor infill development should include the
-4-
r
.
...
.
following:
1. Pee Waivers:
A major incentive to encourage infill development would be to
waive certain fees associated with new development on infill
lots. While many specific fees would depend on the individual
house being constructed, some "rule of thumb" approximations are
as follows:
a) Fifty cents (50t!) per square foot for building permit and
plan check fees;
b) One dollar, thirty cents (S1.30) per square foot for storm
drain fee, parks and recreation fee, sewer connection fee
and sewage capacity fee (also collected by the Planning
Department) .
A list of individual fees is included as Appendix A. Also, depending
on the property in question, other fees might also be involved such
as non-subdivision street improvement fees (collected by the Public
Works Department) and school assessment fees (such as those collect
by the Rialto Unified School District for new dwellings constructed
in the "bench area" of San Bernardino).
In certain circumstances, these fees could be waived.
In other
circumstances, where fee payment is mandatory (such as in the case of
the sewage capacity fee) the Redevelopment Agency could pay the fee
on behalf of the owners or use one of the fifty (50) CDBG-allocated
sewer capacity allotments to support the first fifty (50) infill
housing projects.
2. Building Code Modifications:
The City's building codes should be modified as appropriate to permit
factory-built and modular housing.
-5-
.
.
3. Regulation Modification:
Existing regulations should be modified, when appropriate, to
facilitate infill development (such as reducing setback requirements,
relaxing minimum lot size requirements, allowing zero lot lines in
special circumstances, and waiving or reducing of f-street parking
requirements in areas where parking is not a major problem.
Further Incentives
In addition to the planning modifications listed above, further incentives
should be offered to existing property in order to encourage development of
infill sites:
a) A staff person from the Planning Department should be assigned to
assist the owner through the approval process, general contractor
selection bid review and legal assistance to clear titles.
b) The City should provide assistance to owners in demolishing existing,
substandard structures.
c) The City should assist in providing long term "take out" financing
through its single family mortgage revenue bond program, when and if
available.
d) The City should provide assistance through CDBG funds for installing
curbs, gutters snd sidewalks in front of properties that currently do
not have such improvements;
e) For individual infill projects involving development of one more
parcels, the City should "tailor" or "package" infill incentives to
meet specific site-related needs or criteria.
f) The City should hold seminars and meetings to acquaint developers
with the infill incentives which are being offered.
It is recommended that the Redevelopment Agency issue a "request for
proposals" from local architects requesting assistance in developing a number
-6-
.
-~
.......
.~~
of standard plans for infill housing. Such account the
existing character of the infill neighborhoods and vacant lots
in these neighborhoods. The City should agree to pa each set of
plans developed, and the plans would be pre-approved by Building and Safety,
thereby eliminating most of the final plan checks. The plans could be sold to
the owner for t5,OO' which would eventually reimburse the City for its
expenditure. Any necessary modifications in the plans would be the
responsibility of the owner to work out with the architect. The architect
would also agree to meet with neighborhood groups to explain the plans and
assure them that the program will strengthen the ne1ghborhood in terms of
aesthetics and property values.
The area selected for infill incentives should be the area of the City which
is south of Highland. It is further recommended that several neighborhoods be
selected for initial marketing of the infill program, preferably those that
are shown on the map on the following page. It is recommended that a
combination of the above incentives be offered in these pilot infill
ne1ghborhood(s) for a period of one year to determine whether these are
sufficient inducements to existing owners to develop their property.
The City may also wish to consider using this type of program to experiment
with new construction methods such as manufactured or modular types of units.
Through the selection and use of a local architect, the program should be
designed so that the units developed are compatible, both in price range and
design, with the existing surrounding neighborhood. This is an essential
issue since the overall effect of the program should be to upgrade the city's
housing stock and the program should not be designed only to meet needs of low
and moderate income residents.
-7-
.
...
.
.
Conversely, in a low to moderate income neighborhood it would be unreasonable
to expect that the owners of ex1sting parcels would be expected to "over
build" in the area, but rather build to complement ex1sting neighborhood
structures and values.
Marketing the Program
The program should be announced through the local media.
In addition, a
specific
marketing
effort
should
be
undertaken
on
a
neighborhood-by-neighborhood basis within the census tracts identified as
priority areas on the preceding map. The County Assessor's data can be used
to identify vacant parcels within the neighborhood, present assessed
valuation, and name and address of owner. Once this data has been compiled
for a neighborhood, a direct mailing should be undertaken to reach all of the
owners of vacant parcels in that neighborhood and inform them of the inUll
program incentive.
Funding for Infill
The amount of funding to support infill development could come from a variety
of sources:
- tax increment 20% housing set aside funds;
- the City's tax-exempt bonding authority;
- Community Development Block Grant funds;
- other unobligated funds available to the City and/or
Redevelopment Agency.
Funding sources carry certain restrictions, of course. Community Development
-8-
~-
.
.
Block Grant funds can be used for improvement of infrastructure where needed
for additional infill development, but cannot be used directly for new
construction. Tax increment monies could be used to support new construction,
or to pay for fees which have been waived. Infill projects could qualify for
below-market-rate package financing from City single-family mortgage revenue
bond proceeds. The appropriate support package should be ascertained on a
parcel-by-parcel basis, given the local circumstances and the current
availability of potential financial incentives such as mortgage revenue bond
finanCing.
No additional funding would be necessary regarding staff time associated with
the implementation of the program.
Approximate Infill Program Budget
Since it is not possible at this time to determine the demand which will be
generated by the Infill Housing Program, the budget for the program can be
only an approximation.
Assuming a volume of fifty (50) infill units, the approximate of the programs
would be as follows:
Fee Waivers:
Fifty (50) properties at 1200 square foot
average"
Permit and Plan Check Fees:
Storm Drains, Parks and Recreation
Sewer Connection, and Sewer
Connection Capacity Fees:
Architectural Services: (10,000 less
7500 reimbursements:
$ 30,000
78,000
-9-
2.500
$110,500
.
.
To offset this one time expenditure will be additional tax revenues genersted
by the improved property which are estimated at $600 per yesr x 50 . $30,000,
indicating that the costs incurred will be reimbursed in three (3) to four (4)
years following which the tax revenues will continue to accrue to the City.
665L
-10-