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ADMINISTRATIVE REVIEW DRAFT There is one rental project in the City with units at risk of conversion to market rates between 2003 and 2006. The project is the 70 unit Cherry Blossom Inn senior housing development, which was subject to the City's Inclusionary Housing Ordinance when it was developed in the early 1980s. Seven of the units were set aside at below market rate (BMR) rents. While the risk of conversion is considered high, the impacts will be minimal because the BUIR units are rented for the same price as the market -rate units. There are another 107 units at risk of conversion between 2006 and 2011. These units are located in five privately -owned apartment complexes, including 61 units at Parkside Commons and 20 units at Woodside (Haas Avenue). The Parkside and Woodside units had a 20-year affordability restriction as a condition of bond financing when they were constructed in 1988. The projects also include 11 units at Greenhouse Townhomes, also subject to a 20-year affordability restriction when the owner received rehabilitation financing from the Redevelopment Agency. Projects also include 4 units at Bal Court Plaza and 10 units at Summerhill Terrace, both created through the City's Inclusionary Housing Ordinance. The potential impacts of subsidy expirations at these five projects varies. Under current market conditions, there is no virtually rent difference between the BMR units and the market rate units at Bal Court, Summerhill, and Woodside. A one -bedroom market -rate apartment in these complexes rents for $995 a month, and a two -bedroom rents for $1,200—in both cases, these rents meet lower income affordability guidelines.4 At Parkside Commons, the gap between a BMR unit and a market rate unit is $84 a month for a one bedroom and $150 for a two bedroom unit. The largest gap is at the Greenhouse Townhomes. The three very low income units rent for $855 a month; the eight low income units rent for $1,100 a month, and the 111 market rate units rent for $1,700 a month. Cost of Replacement Housing Section 65583(a)(8)(B) requires the analysis of at -risk housing to identify "the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments." The analysis may present this information based on the aggregrate number of units for each five year period (2001- 2006 and 2006-2011) rather than on a project by project basis. As mentioned in the previous section, there are 7 units at risk of conversion by 2006 and another 107 units at risk of conversion by 2012. These units are located in six projects that are all privately owned. Only two of these projects would experience an actual loss of affordable housing upon the expiration of the rent subsidy. However, these projects contain 73 subsidized units, nearly three-quarters of the total. The 73 at -risk units for the 2006-2011 period include 30 one -bedroom apartments, 32 two -bedroom apartments, and 11 three -bedroom apartments. Assuming 700 square feet per one -bedroom, 950 square feet per two -bedroom, and 1,200 square feet per three -bedroom unit, and a combined land and construction cost of $200/square foot, the replacement costs would be $140,000 for each one -bedroom unit, $190,000 for each two -bedroom unit, and $250,000 for each three -bedroom unit. Thus, the cost to replace the at -risk units with new construction would be $13 million. 4 Two bedroom apartments with extra amenities(poolside; etc.) may rent for up to $150 a month more. HOUSING ELEMENT 3-30 SAN LEANDRO GENERAL PLAN 44JI I