SR-10-A (36)
Council Meeting: 06/09/92
CDD:Housing:CE:JK:lncln202/staffrpt2/pc
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JUN 9 ;~~L~
Santa Monica, California
TO: Mayor and city Council Members
FROM: City staff
SUBJECT: Recommendations Regarding the Selection of a Sponsor and
Authorization for City Manager to Enter into an option
Agreement to Sell city-owned Land at 2807-09 Lincoln
Boulevard to Volunteers of America for Development of
Senior Housing
INTRODUCTION
This report transmits information and recommendations
regarding the selection of a sponsor organization to pursue
development of a city-owned site at 2807-09 Lincoln Boulevard.
staff is recommending a development of the above site which calls
for the production of forty (40) units of affordable senior housing
funded by the United states Department of Housing and Urban
Development Section 202 Program.
In order to allow the proposed developer to submit a HUD
Section 202 application, this report recommends the following city
Council action: Conduct a public hearing on the sale of the vacant
parcel at 2807-09 Lincoln Boulevard to Volunteers of America
(UVOA"), a nonprofit corporation, and upon conclusion of this
hearing, adopt the attached resolution authorizing: 1) the sale of
the lot to VOA; and 2) the city Manager to negotiate and execute an
option to Purchase agreement with VOA for the exclusive right to
purchase the lot at 2807-09 Lincoln Boulevard to develop the
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section 202 senior housing project.
BACKGROUND
The City owns land located at the northeast corner of Lincoln
Boulevard and Ashland Avenue. The City Council authorized the
purchase of the land at its meeting on October 9, 1990, to lend
assistance to a proj ect whose primary use would be affordable
family housing. This site was originally one parcel, roughly
65,000 square feet, referred to as the "Lincoln/Ashland" site.
As part 0 f the development process, the original 65,000 square
foot lot was subdivided into two pieces, a "front" and a "back"
section. This arrangement was agreed upon to allow for a 45 unit
project of affordable family housing on the rear portion of the lot
to proceed independently of the development of the front piece. In
September 1991, after a competitive bidding process, the City
Council awarded VOA and its development team the exclusive right to
develop the rear parcel. The city has made a financial commitment
toward the rear parcel project, which will supplement other state
and federal sources. The subj ect of this report concerns the
development of the front piece of the land.
DISCUSSION
Recently, staff was approached by VOA, the developer of the
rear portion of the Lincoln-Ashland site, to also develop the front
piece of the site. They proposed a forty (40) unit affordable
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housing complex for low income seniors. This project would be
funded through the United states Department of Housing and Urban
Development (HUD) section 202 grant program. The Section 202
program awards funds on a competitive basis to eligible nonprofit
sponsors for the development of affordable senior units. Occupancy
is limited to seniors whose households income does not exceed fifty
percent (50%) of the area median income.
staff believes that the affordable family housing and senior
housing side by side will produce a mix of households with an
intergenerationa1 character. VOA's role in the development of the
rear lot affords it the opportunity to integrate both the family
and senior housing as a single project. VOA is considering the
possibility of child care and senior programming along with other
programs which will take advantage of the proximity of the
projects. VOA also has at its command a vast array of social
services and other resources to meet the needs of both low income
families and seniors, as well as extensive experience in both
senior and family housing. VOA has sponsored 131 housing complexes
in cities throughout the nation, including more than 5,000 units
developed for seniors under the Section 202 program. This
organization is considered one of the leading nonprofit providers
of housing and services for the elderly in the country.
After evaluation of VOA's experience and capacity to develop
affordable housing, particularly for seniors, staff recommends that
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the city council choose VOA as the sponsor for the development.
The choice of VOA takes advantage not only of their extensive
experience but also of their ability to integrate this project with
the family project on the contiguous parcel.
VOA's affiliate organization, Volunteers of America National
Housing Corporation, would serve as the project developer. The
rest of the development team consists of Diana McIver & Associates,
a national consulting firm which specializes in the provision of
development services to private, nonprofit organizations developing
affordable senior housing; and Bahr, Vermeer & Haecker, architects,
who since 1968 have provided architectural services on more than 60
multifamily complexes designed for senior and disabled persons.
This proposed affordable senior project is at a preliminary
stage. However, the developer must establish site control prior to
the June 24, 1992 HUD application deadline. In order to provide
site control, it is necessary for the City to enter into an option
agreement to sell the lot to VOA. This action should be
conditioned upon VOA's securing a HUD Section 202 grant commitment
for this development in 1992. This arrangement is similar to the
manner by which both the Third street and Fourth street Senior
housing project was able to demonstrate site control.
The section 202 program will allow a portion of the overall
grant to be allocated toward the cost of the land. Thus, if this
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project is awarded funds, the city would receive some financial
consideration for the land. These funds could then be available to
offer additional amenities to the development, if desired.
staff expects HUD to announce the section 202 awards in late
September 1992.
If the VOA proposal is awarded a funding
commitment, staff will immediately proceed to work with the
development team and the neighborhood on design and site planning.
It is expected that the project could begin construction in the
spring of 1994.
As required by the Municipal Code, a notice of public hearing
was published in the Outlook on May 30, 1992, ten days prior to
this hearing. Notices were also posted on the site, pursuant to
regular planning regulations. The notice specified that a public
hearing would be held on the proposed sale of the land at 2807-09
Lincoln Boulevard.
staff recommends that the sale of the lot without public
bidding is in the best interest of the city for the following
reasons, which are enumerated in the attached resolution:
1.) The development of rental housing for low income seniors is of
benefit to the city of Santa Monica;
2.) The HUD Section 202 program is the most suitable source of
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funding for the development of such housing, and is available
only to qualified nonprofit developers; and
3.) Based upon review of developer qualifications, the recommended
sponsor was determined to have assembled the most qualified
development team with experience in working with the HUD
Section 202 program.
FINANCIAL/BUDGETARY IMPACT
No financial or budgetary action is required at this time.
RECOMMENDATIONS
staff recommends that the city council take the following actions:
Conduct a public hearing on the sale of the vacant parcel at 2807-
2809 Lincoln Boulevard to VOA, a nonprofit corporation, and upon
conclusion of this hearing, adopt the attached resolution
authorizing the 1.) sale of the lot to VOA; and 2.) city Manager to
negotiate and execute an option to Purchase agreement with VOA for
the exclusive right to purchase the lot at 2807-09 Lincoln
Boulevard to develop the Section 202 senior housing project.
Submitted by:
Barbara stinchfield, Acting Director
Chuck Elsesser, Housing Program Manager
Jim Kemper, Senior Development Analyst
Community Development Department
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RESOLUTION NO.
8416
(CCS)
(City Council Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING AN AGREEMENT TO SELL PROPERTY AT 2807-09 LINCOLN
BOULEVARD TO VOLUNTEERS OF AMERICA, INCORpORATED
WHEREAS, the city of Santa Monica (hereinafter "city") owns
certain real property located at 2807-09 Lincoln Boulevard in the
City of Santa Monica, (hereinafter uPropertyU); and
WHEREAS, the City of Santa Monica desires to sell the property
to the Volunteers of America, Incorporated ("VOA"), who will
prepare an applicat10n for a United States Department of Housing
And Urban Development ("HUD") Section 202 grant to develop
affordable senior housing units on the site; and
WHEREAS, the City of Santa Monica has caused notice of intent
to sell property to be published in a local newspaper and posted
notice on the Property providing information on the date and time
of a pUblic hearing; and
WHEREAS, the City council has held a public hearing at 7:30
p.m. on June 9, 1992 to hear from the public on the proposed sale
of the property.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City of Santa Monica agrees to sell the
Property to VOA subject to:
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A. VOA's receipt of a grant commitment in 1992 from the
HUD Section 202 program for purposes of constructing affordable
senior housing:
B. compliance with the provisions of the California
Envlronmental Quality Act.
c. Execution of an agreement entitled Option to
Purchase between the City and VOA.
SECTION 2. Municipal Code section 2508A provides that the
sale of real property shall be by notice inviting bids unless the
city council finds that advertising for bids would not be in the
best interests of the city. The City Council finds that advertis-
ing for bids would not be in the best interests of the city
because:
(1) The City has determined that the development of rental
housing units for low income seniors is of benefit to the City of
Santa Monica:
(2) The City has ldentified the HUD Section 202 grant program
as the most suitable source of funding necessary in order to
develop such housing I and this funding is available only to
qualified nonprofit developers; and
(3) The city has found VOA to be the most suitable and
qualified nonprofit developer, with experience in working with the
HUD Section 202 grant program, to develop such housing in santa
Monica.
SECTION 3. The City Manager is authorized to negotiate and
to execute an agreement entitled Option to Purchase between the
city of Santa Monica and VOA regarding the exclusive right to
purchase the property, contingent upon VOA' s receipt of a HUD
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Section 202 grant comm~tment.
SECTION 4. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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Robert M. Myers
city Attorney
:d:\lncln202\ccresolu
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Adopted and approved this 9th day of June, 1992.
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~ \ -Mayor \
I hereby certify that the foregoing Resolution No. 84l6(CCS)
was duly adopted by the city council of the City of Santa Monica
at a meeting thereof held on June 9, 1992 by the following
council vote:
Ayes: Councilmembers: Abdo, Genser, Holbrook, Katz,
Olsen, Vazquez, Zane
Noes: Councilmembers: None
Abstain: councilm.embers: None
Absent: Councilmembers: None
ATTEST:
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