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Home My WebLink AboutMINUTES - 01132009 - C.44 L TO: BOARD OF SUPERVISORS �E,...._ _., Contra ,,° F FROM: Catherine O. Kutsuris - `s Costa Director, Department of Conservation and Development •. �° County sr9cotizy`� DATE: January 13, 2009 rev SUBJECT: Camino Tassajara Affordable Housing Program Compliance SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: DETERMINE that Shapell Industries, Inc, Braddock and Logan Group 11, L.P., and Ponderosa Homes, Inc. are in compliance with the Camino Tassajara Affordable Housing Program. MODIFY the Camino Tassajara Affordable Housing Program Section IV (13)(1)(a)to permit a three-year extension for the commencement of construction of the Senior Housing in the Camino Tassajara area by Shapell Industries, Inc.; and AUTHORIZE the Deputy Director-Redevelopment to execute a letter agreement providing for the extension. FINANCIAL IMPACT: None. No General Funds are involved. BACKGROUND: See attached. CONTINUED ON ATTACHMENT: No SIGNATURE: a,. u ❑ RECOMMENDATION OF COUNTY ADMINISTRATOR ❑ REC MMENDATIO OF BOARD COMMITTEE ❑APPROVE ❑ OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED �OTIIER ❑ VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND � CORRECT COPY OF AN ACTION TAKEN AND _liZUNANIMOUS (ABSENT 04m0 e _ ) ENTERED ON THE MINUTES OF THE BOARD OF AYES: NOES: SUPERVISORS ON THE DATE SHOWN. ABSENT: ABSTAIN: ATTESTED Contact: Jim Kennedy(925)335-7225 DAVID TIVA, CLERK OqffHE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: CAO County Counsel Conservation and Development (Current Planning) By: Deputy Conservation and Development (Redevelopment and Housing) Via Redevelopment • Shapell Industries, Inc. • Braddock and Logan Group 11, L.P. • Ponderosa Homes, Inc. A. CAMINO TASSAJARA AFFORDABLE HOUSING PROGRAM COMPLIANCE Approved by the Board of Supervisors on July 9, 2002, the Camino Tassajara Affordable Housing Program (CTAHP) sets forth the requirements to be met by the Camino Tassajara developers (Shapell, Braddock and Logan, and Ponderosa Homes). The CTAHP requires the submittal of an annual compliance report by the respective development entities. STAFF IS RECOMMENDING THAT THE DEVELOPERS BE FOUND IN COMLIANCE WITH THE CTAHP. The following discussion summarizes the compliance status of Shapell Industries, Inc., Braddock and Logan Group II, L.P., and Ponderosa Homes, Inc. A map depicting the location of CTAHP Projects is also attached as Figure 1. 1. BRADDOCK AND LOGAN AFFORDABLE HOUSING COMPLIANCE The Intervening Properties/Remaining Intervening Properties ("IP/RIP") project consists of 474 residential units. Braddock and Logan was required to provide at least 20 percent of the units or 95 units as affordable for occupancy by Very Low, Low or Moderate Income Households. Braddock and Logan has built a 95 unit apartment complex affordable to and occupied by lower income families named Villas at Monterosso. The.project is fully occupied as of August 1, 2007. The breakdown of affordability is as follows: Affordability Requirement Percent Number Very Low Income 10% 10 Low Income 25% 24 Moderate Income 65% 61 100% 95 2. SHAPELL & PONDEROSA HOMES AFFORDABLE HOUSING COMPLIANCE The Alamo Creek and Wendt Ranch projects consist of a total of 1,052 residential units. Shapell and Ponderosa were required to provide at least 20 percent of the units or 210 units as affordable to Very Low, Low and Moderate Income Households. The total breakdown of affordability is as follows: Affordability Requirement Percent Number Very Low Income 10% 21 Low Income 25% 53 Moderate Income 65% 136 100% 210 a. The Alamo Creek Townhomes Shapell has constructed 127 townhomes for moderate income homebuyers named Willow at Alamo Creek. As of September 26, 2008, Shapell has constructed and sold all but one of the homes, and only four homes are remaining to close escrow. b. The Senior Housing Shapell was required to build a 120 unit apartment complex affordable to and occupied by low income seniors. The project is now referred to as Meadowood at Alamo Creek (Meadowood). Shapell has rough-graded the building pad, installed frontage improvements and stubbed all utilities to the project site at the senior apartment complex. The architect for the project, TVM, is working on the first plan check comments received from the County Building Inspection division. The CTAHP Regulatory Agreement and Declaration of Restrictive Covenants has been fully executed and was recorded in Contra Costa County on January 9, 2006. Shapell has had preliminary discussions with EAH to manage Meadowood for Shapell. The management contract with EAH would be identical to the contractual relationship between them at the Falcon Bridge, Cornerstone and Seville apartment complexes in the Gale Ranch project. Staff of the Redevelopment and. Housing Division initiated activity with Shapell earlier this year to finance Meadowood with the proceeds of County issued tax-exempt multi-family housing revenue bonds. Due to the unsettled financial market, the issuance was tabled until financial market conditions improve. A period of 12-24 months from today may be necessary for this to occur. B. AMENDMENT TO EXECTUTION ON TIME FOR SENIOR APARTMENTS The CTAHP requires Shapell to commence construction of the senior apartments as of the fourth anniversary of the Final Approval Date (July 8, 2004), or dedicate the site to the County. As described above, Shapell is working diligently to complete the Meadowood Apartments; however, with new home sales having declined and the financial market locking up it is not prudent to proceed with construction at this time. Shapell has sold only twelve market rate homes total in the Alamo Creek development since January 2008. Shapell is requesting a three-year extension to this requirement (July 8, 2011). . y m •Q 0 6 � N co Ix 0 <S � ,3: - - ' ,y�j ossa' -�oa� � 'n•,. '�� _ m, t G 5.1 N CI- 6\"s - d _ P '� oa•, t� il` V i O �: 0 0( : � L _f O O 3 �e8 Is s ! E Qrrr� ,...is°�O �qa q?haPotjS'{'il•�; 4. j/