HomeMy WebLinkAbout7.1 CampPksAffordHousing
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CITY CLERK
File # D~[lj]-~lQJ
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: January 20, 1998
SUBJECT:
Camp Parks Affordable Housing Project - Estimated City Costs
(Report Prepared By: Carol R. Cirelli, Senior Planner)~c--
EXHIBITS ATTACHED:
Exhibit 1:
Exhibit 2:
Project Work Program/Schedule/Costs
Budget Adjustment Sheet
RECOMMENDATION: A.
Determine whether to accept Camp Parks' partnership
request and proceed with the preliminary work program for
the project based upon staff's initial estimates of the time and
funding required to complete this project.
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B.
If the Council determines to proceed with the project: 1)
approve the budget change form (Exhibit 2) for purposes of
establishing a budget for paying staff and consultant costs;
and 2) direct staff to return within the next eight weeks with
a preliminary proiect description for Council's review and
approval that would provide a basis for the request for
proposal.
FINANCIAL STATEMENT:
The estimated cost of completing the Camp Parks Affordable
Housing Project work program is $119,460. Of this amount,
$43,960 of existing staff salaries would be redirected to this project
and $75,500 in additional costs for County, consultant and legal
services would be required over the next 18 months. These costs
would be funded as follows: $6,413 from the General Fund and
$113,047 from the Affordable Housing In-Lieu Fees. For Fiscal
year 1997-98, a budget change will be required which would transfer
$12,850 in expenditures from the General Fund to the Affordable
Housing In-Lieu Fee Fund, appropriate an additional $23,063 in the
Affordable Housing In-Lieu Fee Fund, and appropriate an additional
$2,187 in the General Fund to this project.
BACKGROUND:
On November 4, 1997, the City Council conceptually approved the Camp Parks Affordable Housing
Initiative request and directed staff to prepare a preliminary work program and a detailed cost analysis for
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COPIES TO: In-House Distribution
ITEM NO.--Z.1
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completing the project. Camp Parks is pursuing the privatization of military housing through a "*
partnership with the City of Dublin. Camp Parks has offered the City a conveyance of a 20-acre site for a
park with the condition that the City form a partnership with Camp Parks for developing a housing project
on another 20 acre site with approximately 50 units reserved :for housing Camp Parks personnel.
Some of the benefits the City would receive from the project include an increased supply of Dublin's
ho.using stock and meeting some of the City's affordable housing needs. Additionally, the City might
receive 20 acres ofland for parks, which would help relieve the City's existing park deficiency.
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COST ANALYSIS:
Preliminary Work Program/Schedule/Costs
A preliminary work program, cost estimate and schedule for the Camp Parks housing project has been
prepared (see Exhibit 1). The estimated costs for completing the project are $ 43,960 for staffhours, and
$ 75,500 for Alameda County Housing and Community Development (BCD) staff, consultant and legal
service costs, for a total of $ 119,460. The HCD staff would assist the City with preparing: 1) the
preliminary project description; 2) the project feasibility study; 3) the request for proposal and selecting a
housing developer; and 4) the financial package. Consultants are required for completing financial, site
plan/project design and housing program analyses and studies. Legal services are required for the project
feasibility study, the partnership agreement with Camp Parks, entitlement processing and assessment
district annexation.
The federal land conveyance process would take approximately eighteen months and project entitlement
processing can be completed within that time frame. The land conveyance and entitlement process can be
initiated at the same time. The project tasks estimated to be completed this fiscal year include: .
developing a preliminary project description; preparing a development feasibility study and preparing and
finalizing the housing/park partnership agreement with Camp Parks. The completion of the remaining
tasks for the following year include: preparing the request for proposal and selecting a housing developer;
preparing a financial package for the project; completing project entitlement processing; implementing
miscellaneous items of the Camp Parks/City partnership agreement; and including the project in the City's
assessment districts.
The City's in-lieu housing fees would be the primary funding source for the initial phases of the project
(Tasks I through V), or at least through the end of this fiscal year. Staffhas prepared a budget change
form (see Exhibit 2) that the Council should adopt for purposes of establishing a budget using in-lieu
housing fees for paying staff and consultant costs. General fund monies in the amount of $ 6,413 will
cover the estimated costs associated with the 20 acre park land agreement with Camp Parks. There is a
slight risk with using City funds in that, if for some reason the City cannot find a housing developer for
the project, the City would have expended funds without the benefit of proceeding with an affordable
housing project.
Once the City has selected a housing developer and begins processing the project, the project can be
funded entirely with bond financing, tax credits and federal funds, such as HOME funds and Community
Development Block Grant (CDBG) funds. At some point during the fmancial analysis of the project, City
and HCD staffwill determine whether reimbursement of a certain portion, or all of the in-lieu funds can
be achieved through bond financing, tax credits, federal grants, or other financing mechanisms. Also, all .
project impact fees (i.e., traffic, public facilities, etc.) could be covered through bond financing.
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1997/98 Goals and Obiectives
This project would delay the Telecommunications Policy project of the 1997/98 Goals and Objectives
project list for approximately 3 to 4 months. The City is currently working with the Cities of San Ramon,
Pleasanton and Livermore and a telecommunications consultant to prepare a model telecommunications
policy/ordinance regulating telecommunication providers and their usage of the public rights-of-way. The
model ordinance would include telecommunications policies, mitigation provisions for street cuts,
compensation schedules for using the public rights-of-way, and requirements for franchise/in-lieu fees, if
applicable.
If the City does not adopt a telecommunications policy and ordinance within this fiscal year,
encroachment permit requests for providers wanting to locate systems within the public rights-of-way
would need to be handled on a case-by-case basis. This will result in more Public Works staff time being
required to review each request.
The Wireless Service Facilities Zoning Ordinance Amendment is tentatively scheduled for public hearings
this February and March.
PROJECT FUNDING SOURCES:
, The following is a brief description of the various types of funding sources that the City may use for
developing the Camp Parks affordable housing project.
Mortgage Revenue Bond Program (Bond Financing)
A city or county can issue mortgage revenue bonds to finance affordable housing projects. Generally, a
local jurisdiction will enter into an agreement with a nonprofit or for-profit housing developer to construct
such a project. This program enables a developer to receive a below market rate interest on their loan
payments. The minimum requirement for obtaining this fund is that the project must include low income
housing units (i.e., 20 percent of the total number of units must be provided for families earning 50
percent or less of the median county income; or 40 percent of the total number of units must be provided
for families earning 60 percent or less of the median income).
LIHTC (Federal) Low Income Housing Tax Credit (Tax Credits)
The LIHTC operates through the federal income tax system by providing tax credits over a ten-year
period to those who invest in qualifying low income housing developments. This program is generally
compatible with the Mortgage Revenue Bond Program requirements.
COm1nunity Development Block Grant (CDBG)
CDBG is a entitlement program that has been in place since 1974 and is one of the most important federal
sources of funds for affordable housing. Through an agreement with Alameda County, the City of Dublin
is allocated a certain amount of CDBG funds every fiscal year. This amount is calculated using a formula.
This program offers a highly flexible funding source that can be used for a variety of activities, including
. new affordable housing construction.
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HOME
Like CDBG, the HOME Investment Partnerships Act is a formula-based entitlement program. HOME
provides grants for the rehabilitation and new construction of housing for the very low and low income .
households.
In-Lieu Fees
The City has been collecting in-lieu housing fees from housing developers that opt not to construct
inclusionary or affordable housing units within their residential development projects. The fees are
calculated using a formula. These fees can be used to construct new affordable housing, or they can be
used for programs and services, such as housing counseling and home buyer assistance programs.
RECOMMENDATION:
Staff recommends that the Council determine whether to accept Camp Parks' partnership request and
proceed with the preliminary work program for the project based upon staff's initial estimates of the time
and funding required to complete this project. If the Council determines to proceed with the project, the
Council should:
1) approve the budget change form (Exhibit 2) for purposes of establishing a budget for
paying staff and consultant costs (e.g., using in-lieu fees for covering the feasibility study);
and
2)
direct staff to return within the next eight weeks with a preliminary proiect description for
Council's review and approval that would provide a basis for the request for proposal.
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The project description would include preliminary development standards (Le., zoning, density, parking,
number of stories), conceptual project design, and description of potential project amenities. With this
staff report, staff will be recommending a household tar€!et grOUP (i.e., senior, very low income, mixed-
income, etc) for the remaining non-military portion of the project.
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CAMP PARKS AFFORDABLE HOUSING PROJECT
PRELIMINARY WORK PROGRAM - ESTIMATED PROJECT PROCESSING
COSTS ~ PROJECT SCHEDULE
TASK I:
Develop preliminary project description
. Identify income group (i.e., market, very low, low, moderate)
. Identify development standards and criteria
Costs:
Staff
County Staff/Consultant/Legal Services
$ 4,700
$ 5,000
TOTAL
$ 9,700
Funding Source:
In-lieu housing fees *
****************************************************************************************
TASK II:
Prepare development feasibility study
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Evaluate the possibility of using bond ftnancing and tax credits for
proJect.
Costs:
Staff
County Staff/Consultant/Leg-al Services
$ 3,925
$ 15,875
TOTAL
$ 19,800
Funding Source:
In-lieu housing fees '}
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TASK III: Prepare and finalize housing/park partnership agreement with Camp
Parks
Before preparing agreement:
. determine what steps are required to allow the City to exercise
jurisdiction over the proposed housing development
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determine whether the City will sell or lease the land to the
housing developer
EXillBIT 1
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. review Camp Parks' phase I environmental documentation,
etc.
Costs:
Staff
County Staff/Consultant/Le~al Services
$ 8,450
$ 4,375
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TOTAL
$ 12,825
Funding Source:
In-lieu housing fees (50%); General Fund (50%) *
****************************************************************************************
TASK IV: Prepare RFP; Select Housing Developer
Costs:
Staff
County Staff / Consultant/Le~al Services
$ 1,660
$ 20,000
TOTAL
$ 21,660
Funding Source:
In-lieu housing fees :}
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TASK V:
Prepare financial package for housing project
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Costs:
Staff
County Staff/Consultant/Legal Services
$ 2,555
$ 15,000
TOTAL
$ 17,555
Funding Source:
In-lieu housing Fees ::.
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TASK VI: Complete environmental documentation; GP A, Zoning,
Planning/Building entitlements; .affordable housing agreement with
developer
Costs:
Staff
County Staff/Consultant/Legal Services
$ 5,800
$ 12,625
TOTAL
$ 18,425
Funding Source:
In-lieu housing fees :!-
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TASK VII: Implement miscellaneous items of the Camp Parks/City partnership
agreement
Costs:
Staff
Count;)' Staff / Consultant/Le~al Services
$ 7,140
None
TOTAL
$ 7,140
Funding Source:
In-lieu housing fees *
****************************************************************************************
TASK VIII: Include housing project in the street lighting, emergency medical
response and urban runoff protection assessment districts (unless Council
finds there is no special benefit to the property)
Costs:
Staff
Count;)' Staff/Consultant/Le~al Services
$ 9,730
$ 2,625
TOTAL
$ 12,355
Funding Source:
In-lieu housing fees *
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GRAND TOTAL:
County Staff/Consultant/Leeal Services
Staff
$ 43,960
$ 75,500
$ 119,460
* The City and HCD staff will determine whether the City can get reimbursed for certain portions of
these in-lieu fees through one of the following programs:
a.) Housing Developer Application Fees
b.) Bond Financing
c.) Tax Credits
d.) CDBG Funds
e.) HOME Funds
f.) General Fund
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TENTATIVE PROJECT SCHEDULE
Federal Land Conveyance Process:
Project Processing:
TASK I
TASK IT
TASKm
TASK IV
TASK V
TASK VI
TASK vm
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18 months
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15 months (approx.)
January/February 1998
March 1998
April- June 1998
July - September 1998
October 1998 - January 1999
February 1999
Marchi Apri11999
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CITY OF DUBLIN
BUDGET CHANGE FORM
CHANGE FORM #
New Appropriations (City Council Approval Required):
Budget Transfers:
_X_From Unappropriated Reserves
From Budgeted Contingent Reserve (1080-799.000)
Within Same Department Activity
_X_Between Departments (City Council Approval Required)
Other
From New Revenues
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A. BUDGET TRANSFER
Name: Salaries - Full Time
<12,850>
Name: Salaries - Full Time
12,850
Account#: 00].9010-701-00]
Account #: 380-90]0-701-001
B. ADDITIONAL APPROPRIA nONS
Name:Contract Services
20,000
Account #:380-9431.740-000
Name: Professional Services
3,063
Account#: 380-9431.729-000
Name: Professional Services
2,]87
Account # :00] -943 ] -729.000
City Manager;
Date:
Signature
REASON FOR BUDGET CHANGE ENTRY: To establish a new CIP budget for FY 1997/98 for the Camp
Parks Affordable Housing Project. Additional funds will be required in the following year to complete the
proj ect.
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Mayor:
Date:
Signature
Posted By:
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Date:-
Signature
EXIDBIT 2