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HomeMy WebLinkAboutItem 7.2 DHA Arroyo Vista Public Housing Project CITY CLERK File # D~OJ[Q]-~[Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 16,2007 SUBJECT: Request for Funds by the Dublin Housing Authority for Services Associated With the Redevelopment of Arroyo Vista Project an~ Authorization of a Letter of Support for the Application of Dublin Housing Authority to Demolish and Dispose of the Arroyo Vista Public Housing Project Report Prepared by Joni Pattillo, Assistant City Manager ATTACHMENTS: 1. 2. Budget Change Form Proposed Letter RECOMMENDATIO:1/NO 1) Authorize the City Manager to negotiate an agreement between . the City of Dublin and Dublin Housing Authority in an amount not to exceed $60,000 '\ 2) Authorize an additional appropriation from the Inclusionary Zoning In Lieu Fee Fund to the Housing Budget in the Amount of $60,000 3) Authorize the Mayor to sign the letter to the Department of Housing and Urban Development FINANCIAL STATEMENT: If approved, this request would require an additional appropriation, in the amount of $60,000, from the Inclusionary Zoning In Lieu Fee Funds to the Dublin Housing Budget. DESCRIPTION: Fundin2 Request The Dublin Housing Authority (DHA) has contracted with the Housing Authority of Alameda County (HAC A) to manage the Arroyo Vista public housing project since 1986. The agreement stipulates that HACA use the operating subsidy and Capital Fund provided by the Department of Housing and Urban Development (HUD) as well as tenant rents to cover its costs of managing and maintaining the property and administering the HUD public housing contract (the Annual Contributions Contract). However, with the recent federal budget cuts, these funds are insufficient for that purpose. COpy TO: Chris Gouig, Executive Director of HACA \ Db "" ITEMNO.~ In August 2006, the DHA decided to apply to HUD to demolish the Arroyo Vista project and convey it to a nonprofit and for-profit developer for construction of housing to replace the existing 150 units and additional market rate and affordable housing, du to the lack of funds to adequately maintain the project HACA staff in their capacity in serving as representatives of Dublin Housing Authority (DHA) has been heavily involved in the redevelopment discussions and process. A request has been made by the Executive Director of the Dublin Housing Authority for reimbursement of $60,000 for the time HACA staff has been involved and will continue to be involved in the redevelopment of Arroyo Vista Project. The redevelopment ofthe Arroyo Vista Project has been a very complex project to date and the assistance of the HACA staff in their capacity as representatives ofDHA has proven to be invaluable in getting the project at it current stage. The City Attorney's Office has indicated that the City's Inclusionary Zoning In Lieu Fee Fund monies may be expended for the purpose of providing affordable housing. The redevelopment of Arroyo Vista Project would qualify because the money from the Inclusionary Zoning In Lieu Fee Fund would assist with development of newer housing which will last longer than the existing public houses well as additional affordable units. It is recommended that the City Council authorize the City Manager to negotiate and enter into an agreement between the City of Dublin and the DHA regarding costs incurred by HACA staff in their role as representatives ofDHA. Letter of Support One ofthe required steps in the redevelopment of Arroyo Vista is to seek approval from HUD to Demolish and Dispose ofthe existing Arroyo Vista Housing Project. The letter (attachment 2) is a proposed letter by the City of Dublin to HUD supporting the demolition and disposition ofthe Arroyo Vista Housing Project. RECOMMENDATION Staff recommends that City Council 1 ) Authorize the City Manager to negotiate and enter into an agreement between the City of Dublin and Dublin Housing Authority in an amount not to exceed $60,000; 2) Authorize an additional appropriation from the Inclusionary Zoning In Lieu Fee Fund to the Housing Budget in the Amount of $60,000; 3) Authorize the Mayor to sign the letter to the Department of Housing and Urban Development concerning Arroyo Vista. ~~~ CITY OF DUBLIN BUDGET CHANGE FORM 11J ?J CHANGE FORM #: New Appropriations (City Council Approval Required): X From Unappropriated Reserves Fund # 380 From New Revenues Budget Transfers: From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity Between Departments (City Council Approval Required) Other Name: Affordable Housing Funds - Housing Name: Programs - Contract Services $60,000.00 Account: Account: 380-50500-740-000 Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Name: Name: Account: Account: Total $0.00 ITotal $60,000.00 I Reason for Budget Change: City of Dublin contribution to Dublin Housing Authority to offset Alameda County Housing Authority Staff costs assiting with the process of evaluation of the replacement / improvement of Dublin Housing Authority Arroyo Vista housing project Fin Mgr / ASD~.Js-. ~ ~ Signature Date: 1(10 / l aO-1 City Manager: Date: Signature Mayor: Date: Signature Posted By: Date: Signature G:\Finance Staff\Lisa\Budget Change\budget change - 50500 740 60k 1 of I /-11/;-07 It 0.. ATTACHMENT 1 62.1)); January XX, 2007 DRAFT Ainars Rodins Special Applications Center Office of Public Housing U.S. Department of Housing and Urban Development 77 West Jackson Boulevard, Room 2401 Chicago, IL 60604-6413 Dear Mr. Rodins: Re: Letter of Support for the Application of the Dublin Housing Authority to Demolish and Dispose of the Arroyo Vista Public Housing Project located in the City of Dublin, California The undersigned is the elected mayor ofthe City of Dublin, California. This is a letter of support, in accordance with 24 CFR 970.7(a)(14)(ii), for the Demolition and Disposition Application submitted by the Dublin Housing Authority (DHA) for the Arroyo Vista public housing project located in the City of Dublin, California. The Board of Commissioners of the DHA is comprised of the five elected City Council members of the City of Dublin plus two tenants ofthe housing authority. Thus, the DHA has achieved consultation with the City of Dublin local officials on the proposed demolition and disposition by virtue of the parties being the same. The City of Dublin is in strong support ofthe demolition and disposition ofthe project. DHA has long discussed the fact that there are insufficient Capital Funds to maintain the project in a suitable manner. Over the last year, DHA spent a great deal of time evaluating the feasibility of rehabilitating the project versus demolishing it and redeveloping the property. The Authority contracted with engineers and estimators to develop a list of rehabilitation work items needed to bring the complex up to market standards and reviewed the cost estimates for such work and a report from staff that described potential funding sources. Unfortunately, possible funding provided for only about one-half the cost of the rehabilitation. ATTACHM!f2N1' ~z~ DHA proposes a complete redevelopment ofthe property. The property would be sold to a local developer team that would redevelop it with rental units for families, rental units for seniors and for-sale townhomes. The existing public housing units would be replaced on a one-for-one basis with low-income housing tax credit units and Section 202 units and the remaining units would be a mix of market rate units and additional affordable units. In addition, there will be a village center with a park, leasing offices, child care center, computer lab and community space. The City of Dublin views the proposed project as an exciting opportunity to create a mixed income community from what is now an isolated public housing project and to . provide the residents with the type of housing and range of services that market rate residents generally receive. In addition, the replacement units will be built to current standards and will replace the older existing units. The City Council of the City of Dublin urges HUD to give the Demolition and Disposition Application its most favorable consideration. Very truly yours, Janet Lockhart, Mayor City of Dublin ~~?