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Council Meeting: 06/15/93
RM:Housing:JM:JG:lncln202/staffrpt1/pc
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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.
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 on October 9, 1990, to lend assistance to a
project 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 of the development process, the original 65,000 square foot
lot was subdivided into two pieces, a "front" and a tlback" section.
This arrangement was agreed upon to allow for a 45 unit project of
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affordable family housing on the rear portion of the lot to proceed
independently of the development of the front piece. The "front"
parcel was originally planned as a commercial component of the
Lincoln Ashland Project. Due to the difficulty in securing
commercial financing, the use of the "front" parcel was changed to
residential use.
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 subject of this report concerns the
development of the front piece of the land.
In 1992, the City 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
housing complex for low income seniors. This proj ect 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.
In June 1992, the City Council approved the selection of VOA as the
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non-profit sponsor to submit an application to HUD for section 202
funding for the front parcel. The proj ect did not receive a
funding commitment in the 1992 cycle. Discussion with HUD revealed
that the project had a good overall ranking and probably would have
been funded if not for a reduced allocation level.
DISCUSSION
Staff recommends that the City council choose VOA as the sponsor
for the development of the front parcel. 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 Killefer Flammang Purtill
Architects, who have provided archi tectural services on many
affordable multifamily, senior and single-room occupancy projects.
Staff believes that the affordable family housing and senior
housing side by side will produce a mix of households with an
inter-generational character. VOA' s role in the development of the
rear lot affords it the opportunity to integrate both the family
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and senior housing as a single project. VOA is considering the
possibility of inter-generational child care and other programs
which will take advantage of the neighboring project. 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.
This proposed affordable senior project is at a preliminary stage.
However, the developer must establish site control prior to the
July S, 1993 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 HOD section 202 grant commitment
for this development. This arrangement is similar to the manner by
which both the Third street and Fourth street Senior housing
projects were 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 project
is awarded funds, the city would receive some financial
consideration for the land. These funds could then be available to
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offer additional amenities to the development, if desired.
staff expects HUD to announce the section 202 awards in late
September 1993. 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 1995.
As required by the Municipal Code, a notice of public hearing was
published in the Outlook on June 5, 1993, 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. The development of both the
"front" and tlrear" parcels of the Lincoln Ashland property allows
for an inter-generational service program to be provided and
coordinated to serve the residents of both the multi-family and
senior project components.
FINANCIAL/BUDGETARY IMPACT
No financial or budgetary action is required at this time.
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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 VOAi 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.
Prepared by:
Jeff Mathieu, Director
Johanna GUllick, Senior Development Analyst
Jim Kemper, Senior Development Analyst
Resource Management Department
Attachment:
Resolution Authorizing an Agreement to sell
Property
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RESOLUTION NO.
8605
(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 (here~nafter "City") owns
certain real property located at 2807-09 Lincoln Boulevard in the
city of Santa Mon~ca, (hereinafter "Property"); and
WHEREAS, the city of Santa Monica deSlres to sell the property
to the Volunteers of America, Incorporated ("VOA"), who wlll
prepare an application for a United states Department of Housing
And Urban Development ("HUD") Section 202 grant to develop
affordable senlor hous~ng unlts on the slte; and
WHEREAS, the City of Santa Monlca has caused notice of lntent
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 6:30
p.m. on June 15, 1993 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 from the HUD
Section 202 program for purposes of constructing affordable senlor
housing on the property;
B. Compliance with the provisions of the Californla
Environmental Quality Act.
C. Execution of an agreement entitled Option to
Purchase between the City and VOA.
SECTION 2. Municipal Code Section 2.24.110 provides that
the sale of real property shall be by notice inviting bids unless
the city Council flnds 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
houslng units for low income seniors is of benefit to the city of
Santa Monlca:
(2) The city has identified the Hun section 202 grant program
as the most suitable source of funding necessary ln order to
develop such housing I and thl.s fundlng is avallable only to
qualified nonprofit developers; and
(3) The ci ty has found VOA to be the most sui table and
qualified nonprofit developer, with experience in working with the
HUD Section 202 grant program, to develop such hous~ng 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 I S receipt of a HUD
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Sectlon 202 grant commitment.
SECTION 4. The City Clerk shall certify to the adoption of
th1s Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
A~VE~;S TO FORM:
a~~
Joseph Lawrence
Acting City Attorney
d:\lncln202\ccresoll
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Adopted and approved this 15th day of June, 1993,
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Mayor
I hereby cert~fy that the foregoing Resolution No 8605(CCS)
was duly adopted by the City Counell of the Clty of Santa Monica
at a meet~ng thereof held on June 15, 1993 by the followlng
Councll vote
Ayes: Couneilmembers: Abdo, Genser, Holbrook, Olsen,
Rosensteln, Vazquez
Noes: Coune~lmembers: None
J...bstain: Coune~lmembers: None
Absent. Coune~lmembers: Greenberg
ATTEST:
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