Reso 2006-104 - Laserfiche WebLink

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SECTION B: INVESTMENT OF AVAILABLE RESOURCES Objective: Provide Decent Housing, Priority #1. Increase the availahility of affordable rental housing for extremely low-~ very low-~ low-~ and moderate-income families. ^ctivitics: -----,.-- . New construction of affordable housing . No new affordable housing developments were constructed this fiscal year. Ilowever, the City continues 10 promote and assess housing opportunity sites with prospective ror- profit and non-profit developers. . Inclusionary I-lousing Program . No rental units have been created yet as a result of the City's Inclusionary Housing Ordinance, which has only been in effect since December, 2004_ The Inclusionary Ilousing Program was created through the City's Inclusionary Zoning Ordinance, which requires new residential development projects (including condominium conversions) to set-aside at least 15 percent of their units for moderate-, low-, and very low-income households. . Acquisition and rehabilitation of affordable housing . The City worked with two experienced regional non-profit developers on the following affordable housing projects on East 14111 Street: . Mission Bel1..6_Qwtm~nts Acquisjtion: The City worked closely with non-profit developer. Allied Ilousing Inc., to acquire a 25-unit mixed-used apartment building from a private owner. Although this was a complex financial transaction which needed completion within a quick timeframe. the City and Allied Housing were successful in its acquisition with escrow closing in May, 2006. This acquisition also leveraged public and private resources, including: Alameda County Ilousing and Community Dcveloprnent Department, hernont Bank (private lender), and Local Initiatives Support Corporation. Mission Bell is a valuable asset for the City, because it will remain pem1anent affordable rental housing for another 55 years by preserving the 14 existing affordable units and converting 11 existing non-restricted units into affordable ones. No displacement or existing tenants occurred. . blander Motel ASquisiJion: On May 16,2005, the City Council authorized the City's Redevelopment Agency to purchase the Islander Motel, a 68-unit, three- story, property that will be transfonned into permanent affordable rental housing. Escrow closed on September 22,2006. On June 19,2006, the Agency entered into a Disposition and Development Agreement with Mercy Housing Corporation MHC), which will be the developer and property manager. The Agency will retain ownership of the building. No HUD funds were used on this project. MIIC applied for State low-income tax credits in July 2006. Draft CUTI,olida(cd AnnLls!l'erFlI'Il1ill1ce and FvaluHlioil Repun: rY100)-:WOo City uf 8im Lcal1l1ru l'ag(,4