Title
Recommendation to Accept the Five-Year Pipeline Report for Affordable Housing. (Affordable Housing 266)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Accept the Five-Year Pipeline Report for Affordable Housing
BACKGROUND
The purpose of this staff report is to present the Housing Authority’s (AHA’s) five-year development pipeline for affordable rental projects and market-rate residential projects with an inclusionary housing requirement. In October 2010, City staff presented a similar five-year report to the City Council. Since then, successful affordable projects have commenced or been completed at Park Alameda Apartments (2012), Jack Capon Villas (2013), and Alameda Landing (under construction). Together, these three projects include 129 subsidized and affordable housing units.
In 2010, the City’s Housing Division and the Housing Authority were consolidated. The Housing Authority has implemented the City’s housing programs and policies via a staffing services agreement for the last five years. Since 2010, several significant events that affect affordable housing development have occurred. In 2012, the Community Improvement Commission was administratively dissolved and the Housing Authority became the Successor Housing Agency. Also in 2012, the State of California certified the Housing Element of the City’s General Plan for the first time in over 20 years. In 2014, the City’s 2015-2023 Housing Element was certified. Also in 2014, the Housing Authority formed Island City Development (ICD) as a non-profit affiliate and ICD was approved by the State Tax Credit Allocation Committee as eligible to apply for tax credits. In June 2015, the State Supreme Court released a ruling that set a legal precedent to support local inclusionary housing policies.
The City’s success in partnering to build affordable housing during the first five-year period and the changing affordable housing landscape described above, have informed the new five-year pipeline report for 2016-2021. The Housing Authority Board of Commissioners approved the report at its September 16, 2015 meeting.
DISCUSSION
There are 16 active or proposed development sites shown on the attached Map of Proposed Project Locations (Exhibit 1). This includes four active rental projects, four active ownership projects, four future rental or ownership projects, and four potential redevelopment projects. Between eight and ten of the projects will include Housing Authority participation.
Active Rental Projects
1. 2437 Eagle Avenue - The 0.83-acre lot at Eagle Avenue was purchased by the Housing Authority from the Alameda Unified School District in September 2014. Since then, staff and community members have worked with the design team to develop the building design. The project includes 22 one-, two- and three-bedroom units in two- and three-story buildings, 28 parking spaces, and outdoor and indoor community space. Eight of the units are accessible. The project will be affordable to very low- and low-income families. The project received Planning Board approval on November 9, 2015 and final design development is underway. Housing Authority staff will apply for tax credits in March 2016.
2. Del Monte Rental - The Housing Authority was invited by Tim Lewis Communities to serve as the developer of rental apartments at 1501 Buena Vista Avenue to satisfy the Master Plan requirement for low- and very low-income units. The project was designed to include 31 one-bedroom units in a three-story building that will serve senior households. All units will be accessible. The project received final City Council approval on September 1, 2015. Housing Authority staff will apply for tax credits in March 2016.
3. Stargell Commons - This project is being co-developed by the Housing Authority and Resources for Community Development at 2700 Bette Street at Alameda Landing. Construction commenced in early December 2015. The plan includes 32 rental units including six one-bedroom, 16 two-bedroom and ten three-bedroom units. The project will be affordable to very low- and low-income households.
4. Alameda Point ‘Site A’ - This approved mixed-use project includes 800 homes and is being developed by Alameda Point Partners. The project includes 72 units that are affordable to moderate-income households and also includes 128 rental units for low- and very low-income households that will be developed by Eden Housing. The developer intends to start site construction in 2016. The affordable housing project is anticipated to be one of the first residential projects at Alameda Point.
Active Market-Rate For-Sale Projects
The Housing Authority administers the City’s Inclusionary Housing Program. Program activities include:
• Working with the developers of market-rate residential projects to ensure compliance with their inclusionary requirements, including entering into an affordable housing agreement that establishes the number of required inclusionary units, the units’ locations throughout the development, the marketing plan for identifying qualified households, etc.;
• Preparing all of the documents, including the affordability covenants and approving the proposed eligible home purchasers; and
• Monitoring on-going program compliance for the home purchasers including handling re-sales and annual eligibility.
The following projects will be built over the next five years:
5. 2100 Clement - This project received City Council approval on September 1, 2015, and will include 52 homes. There will seven below-market rate (BMR) units, including three moderate-, two low- and two very low-income units.
6. Marina Shores - This Lennar Homes project is located at 1551 Buena Vista Avenue and includes 89 units. Sixteen units will be sold to moderate-, low- and very low-income households. The first phase will be occupied in early 2016.
7. Del Monte Building - Tim Lewis Communities has been entitled to develop 349 units within the existing Del Monte warehouse and a new building addition. Of these, 24 units will be restricted for sale to moderate-income households. Site construction will begin in 2016.
8. Alameda Landing - This project began construction in 2013, and is being developed by Tri-Pointe Homes. It will include 255 homes, of which 16 units will be sold to moderate-income households (BMR). The first group of nine BMR homes have been sold. Construction will be completed in 2017.
Upcoming Projects
9. North Housing - In 2012, the Housing Authority was approved to receive 13 acres of land from the Navy at the former Coast Guard housing site known as North Housing. The approval requires the development of a 90-unit permanent supportive housing project for formerly homeless individuals and families, and may include housing for veterans. Housing Authority staff has engaged a surveyor to prepare a legal description of the 13-acre parcel, and an environmental consultant to review and update all prior studies. The Navy has issued a draft Finding of Suitability to Transfer (FOST), and the land should be conveyed in 2016. Pursuant to the approval, Alameda Point Collaborative and Building Futures with Women and Children will participate in the project as the social services providers for eligible residents. Habitat for Humanity is expected to receive two acres of land adjacent to the Housing Authority site and plans to build approximately 30 units of self-help housing. The Navy also plans to sell the remaining 20 acres of the North Housing site to a private residential developer.
10. Boatworks - This market-rate project at Oak Street and Clement Avenue could include approximately 183 units including 21 affordable units. The final plan has not yet been approved by the Planning Board.
Potential Development
11. Alameda Landing (future phase) - Catellus has development entitlements for the next phase of Alameda Landing (north of Mitchell) and preliminary site plans will be submitted for City review in early 2016.
12. Encinal Terminals - This property is located at Buena Vista Avenue adjacent to the Del Monte site. Tim Lewis Communities may submit a development proposal for this site in 2016, after a period of community outreach and input.
Redevelopment of Housing Authority-Owned Properties
Maintaining the existing affordable housing in Alameda is an important part of the overall strategy to protect and preserve affordable housing options. Some developments within the Housing Authority portfolio may be strong candidates for substantial rehabilitation. If the site can accommodate additional units, there may be an opportunity to reconfigure a site plan and increase the total number of AHA-owned units. At occupied properties, residents are generally temporarily relocated during construction and will return to their units after work is completed.
13. Rosefield Village - This property includes 46 units. There are three single structures with six units and 40 pre-fabricated apartment buildings that were installed in 1976. AHA staff will apply for 4% non-competitive tax credits in late 2016, to begin the renovation of this project.
14. Eagle Village - This property includes 42 units that were built in 1983. The property is in fair condition and will require substantial renovation within the next five years.
15. Parrot Village/Parrot Gardens - These properties include 58 units on 7.1 acres. The Parrot Gardens units were built in the 1930’s, and Parrot Village was built in 1980. The overall combined site presents a strong opportunity for renovation and redevelopment.
16. China Clipper - This property includes 26 units that are in fair condition. The property will require substantial renovation within the next five years.
Meeting Overall Housing Need
The City’s 2015-23 Housing Element was approved in 2014, and includes Alameda’s share of the Regional Housing Needs Allocation (RHNA) calculated by the Association of Bay Area Governments. Per the RHNA, the City of Alameda has sufficient land appropriately zoned to accommodate 1,723 units by 2023, of which 692 units should be affordable to extremely low-, very low- and low-income households. If all of the projects listed above were to be developed, approximately 400 new units will become available to low- and very low-income households. Therefore, despite the robust level of development activity, unless new policies are adopted and additional resources are committed, the City’s affordable housing needs are not likely to be met.
FINANCIAL IMPACT
There is no financial impact to the City’s General Fund from accepting this report.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The five-year affordable housing pipeline report is consistent with the City’s Housing Element.
ENVIRONMENTAL REVIEW
The Five-Year Pipeline report is not a project subject to environmental review under the California Environmental Quality Act (CEQA) Guidelines sections 15378 and 15061(b)(3).
RECOMMENDATION
Accept the Five-Year Pipeline Report for Affordable Housing.
Respectfully submitted,
Victoria Johnson, Housing Authority Director of Housing and Community Development
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Map of Proposed Project Locations