SR-414-002 (16)
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CIty CouncIl MeetIng 5/28/85
Santa MonIca, CalIfornIa
TO:
CIty CouncIl
FROM:
CIty Staff
SUBJECT:
Recommendation to Approve the Use of Funds to
Support the RehabIlItatIon of Affordable HousIng at
175 Ocean Park Boulevard
INTRODUCTION
This report transmIts InformatIon and recommendatIons concerning
the rehabIlItatIon of twenty-two unIts of affordable housIng at
175 Ocean Park Boulevard. The report descrIbes the shortfall
between funds avaIlable under the publIC housIng reservatIon by
the u.S. Department of HousIng and Urban Development and the es-
tlUlated actual constructIon costs, and recommends that the CIty
CouncIl approve the use of $200,009 from the CapItal Improvements
ContIngency Account to facIlitate the completIon of this proJect.
BACKGROUND
In May 1984 the CIty Council app~oved the lease of rental unIts
located at 175 Ocean Park Boulevard to the Housing AuthorIty of
the County of Los Angeles (HACOLA) to be rehab III ta ted and oper-
a ted as af fordable hous i ng for twenty-two fami lIes and elder ly
tenants. The property IS to be rehabIlItated wIth funds from the
u.s. Department of HOUSIng and Urban Development (HUD) channeled
through HACOLA under the Low Rent PublIC Housing Program. HUD
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The two structures on 175 Ocean Park Boulevard were relocated
from the Promenade In Ocean Park to theIr current sIte In 1963 as
part of the Ocean Park Redevelopment ProJect. The rehabilItatIon
of these twenty-two unIts
is an oblIgatIon of the Redevelopment
Agency under the terms of the Coastal PermIt, as amended, for the
development of the Ocean Park Redevelopment Area. The Redevelop-
U1ent Agency has entered Into a Payment Agreement wIth the ParkIng
AuthorIty to pay annual payments of $75,I:HJ0 for the use of this
property as replacement housing for the next fIfty years.
,
Staff estimates IndIcate that the rehabIlItatIon, or demolItIon
and new construc t lon, of twenty-two affordable hous lng uni ts on
thIs sIte would cost the Agency approxImately $900,000. By al-
locatIng $200,000 to leverage the eXIstIng HUD funding reserva-
tIon of $700,000 the CIty and Agency can meet the eXIstIng
oblIgatIons wIthout a greater comrUltment of funds. However, funds
are not avaIlable for thIS purpose In the Redevelopment Agency
budget. Therefore, I t IS recommended that the CI ty Coune II ap-
prove the expendIture of up to $200,00'0 from the CapItal Improve-
ments ContIngency Account for thIs proJect, and authorize the
Ci ty Manager to negotiate and execu te " payment agreement WI th
the HousIng AuthorIty of the County of Los Angeles for these
funds, to be used to make payments to the contractor under the
terms of the HUD-approved constructIon contract.
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FINANCIAL / BUDGETARY IMPACT
SuffICIent funds are budgeted 1n the CapItal Improvements Contln-
gency Account, Number 01-710-274-000-903 for the recommended ex-
pendlture. Upon approval of the CIty CouncIl, and execution of a
Payment Agreement of up to $200,000 shall be expended from this
account to pay the HOUSIng AuthorIty of the County of Los Angeles
as descr1bed 1n thIS report. No further budgetary actlon IS
necessary.
RECOr-1MENDATION
I t IS recommended that the CI ty Counc1l approve the expendl ture
of $200,000 for constructIon costs to rehabIlItate the property
at 175 Ocean Park Boulevard, and author I ze the Cl ty Manager to
negotIate and execute a Payment Agreement WI th the HOUSIng Au-
thorlty of the County of Los Angeles, as descrIbed 10 thIS
report.
Prepared By: Ann SewIll, Housing Program Manager
Department of CorrmlUnlty & EconomIC Development
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