SR-407-005-02 (6)
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CC PA2
8 2 8 1989
C/ED:HD:CR
Parking Authority:
City Council: 2/28/89
Santa Monica, California
TO:
Chairperson and Parking Authority
Mayor and City Council
FROM:
city staff
SUBJECT:
Recommendation to Approve in Concept Development of
a Proposed Senior Housing Project on the Fourth and
Wilshire Parking Lot
INTRODUCTION
This report transmits recommendations regarding the development
of a senior housing project on Parking Authority Lot Four,
located at Fourth and Wilshire. The report recommends that the
Parking Authority and city council:
1) adopt the attached
resolutions which approve in concept the development of a senior
housing project on the Fourth street parking lot, to be financed
wi th assistance from the U. S. Department of Housing and Urban
Development (HUD) Section 202 Loan Program funds; 2) authorize
City staff to determine the feasibility of increasing the number
public parking spaces at the site; and 3) authorize city staff
to prepare and issue a Request for Statement of Qualifications to
select a project development team.
BACKGROUND
In the FY1988-89 Community and Economic Development performance
objectives, the City Council directed staff to analyze the
feasibility of an affordable housing project utilizing the
air-rights over Parking Authority Lot Four, located at Fourth and
Wilshire. The preliminary analysis consisted of two parts: 1)
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FE8 28 1989
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analyzing the site to determine the feasibility of building
housing on the parking lot while replacing the existing parking
spaces; and 2) reviewing financing alternatives for the desired
project. In conducting the preliminary analysis, staff explored
the possibility of family, senior and transitional housing and
reviewed local, state and federal funding sources which might be
available for a new construction housing project.
The following discusses the analysis and housing project proposed
for the site.
DISCUSSION
Project Site
The Fourth street parking lot is 45,000 square feet in area and
contains one hundred sixty-seven (167) metered parking spaces.
The lot is zoned R-4 and R-4A which allows multifamily
residential developments of four stories, not to exceed 45 feet
in height. One half of the alley area adjacent to the parcel is
included in calculating the number of units allowed by zoning.
The total parcel area including one half of the alley is 48,000
square feet. Zoning allows fifty-three (53) units by right and
sixty-seven (67) units with a 25% state density bonus allowed for
projects which include affordable units.
Projects which include municipal parking structures or garages
require a conditional use permit in the R-4 and R-4A zones.
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Project Financing
City staff reviewed state and federal funding sources for a new
construction family, transitional or senior housing project.
There are no state or federal funds available at this time for
new construction family or transitional housing developments.
However, section 202 loan funds are available to eligible
non-profit sponsors for new construction senior housing projects.
HUD has received a section 202 allocation and is expected to
issue a "Notice of Funding Availability" on March 1, 1989. The
program covers one-hundred percent (100%) of HUD approved
development costs. Costs are approved by HUD according to modest
design criteria established under program guidelines.
HUD provides Section 202 loans directly to non-profit developers
wi th experience in housing seniors or the disabled. The loan
terms are 40 years at a 9.25% interest rate. In addition, HUD
provides rent subsidies for each unit in the form of section 8
Certificates, ensuring affordability to low income seniors for 20
years.
Project Feasibility
Preliminary analysis by staff of the site and financing
alternatives indicates that it would be feasible to develop
sixty-seven (67) units of housing for low-income seniors on the
proposed site. There would be two levels of housing above two
levels of parking. Design of the proj ect would determine the
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actual configuration of the units and parking in accordance with
the current zoning code.
The project will include replacement of the existing one hundred
sixty-seven (l67) public parking spaces and an additional
forty-seven (47) private spaces for the tenants.
Preliminary analysis by staff indicates that additional parking
spaces may be provided at the site. Further analysis of the site
and a review of funding sources is required to determine the
feasibility of increasing the number of public parking spaces.
Title to the property is currently held by the Parking Authority.
Parking Authority law prevents the Parking Authority from using
property or revenues for non-parking purposes. The City is not
restricted in this manner. In order to allow the development of
this parcel for the proposed project, the Parking Authority would
transfer ownership of the land to the city. The City would then
sell the air-rights over the parking lot to the Developer.
Proceeds from the sale would be applied to the cost of replacing
the public parking spaces. In order to ensure that the Parking
Authority continues to receive revenue from the public parking
spaces, the City and Parking Authority will enter into a Payment
agreement which will provide for a payment of parking revenues
received by the City to the Parking Authority Fund.
The site is ideal for senior housing because of its close
proximity to public transportation routes, shopping centers and
social service providers. In addition, HUD has ranked the City
as a priority when making funding decisions under the 202 loan
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program because Santa Monica: 1) has a significant need for
affordable senior housing; and 2) has received insufficient
section 202 loan commitments in accordance with the identified
need. Staff bel ieves the proj ect has a very good chance of
receiving a commitment based on this priority ranking.
NEXT STEPS
Request for Qualifications
HOD estimates that section 202 loan applications for this year1s
allocation will be due between May 1, 1989 and May 31, 1989.
city staff will prepare a Request for statement of Qualifications
(RFQ) to select a project development team. Such a development
team generally consists of a non-profit developer/manager, a
housing consultant and an architect. The non-profit developer
will be responsible for the overall development and management of
the senior housing project. The consultant prepares the HUD loan
application, develops the financing package, coordinates the
team's activities and acts as liaison to HUD staff. The
architect performs all design functions, and is involved in
construction supervision.
Request for Qualifications Selection criteria
The RFQ will solicit development teams experienced with
affordable senior housing and the HUD 202 application and
development process. The RFQ will outline the project
description, the qualifications to be submitted, and the
selection criteria to be utilized. Because the project as
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conceived is a HUD 202 project, the selection criteria will be
based upon HOD's rating criteria for 202 applications. These
include:
1. Demonstrated ability and experience of all members of
the development team in successfully obtaining and
completing HUD 202 projects;
2. Financial capacity of developer, including past
financial history and current outlook, developer's
ability to commit financial resources to the project,
and the scope of the project in relationship to the
financial capacity of the developer;
3. Scope, extent and quality of developer's experience in
managing housing for lower-income elderly persons or
families;
4. Architect's proven ability to design a building concept
which is modest and will be economical to construct and
efficient to operate;
5. Demonstrated experience of developer in serving the area
where the project is to be located, and ability to work
with and be responsive to local neighborhood groups, low
income tenants, and interested citizens.
Timeline
The following outlines the proposed timeline of the next steps
required to submit an application for loan funds.
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1. Issue RFQ - March 1, 1989
2. statement of Qualifications due - March l3, 1989
3. Recommend approval of selection of development team and
recommend authorization to negotiate
and execute
agreement to City Council - March 28, 1989
4. Negotiate and execute agreement - March 31, 1989
5. Development team submits application to HUD - May I,
1989.
FINANCIAL/BUDGETARY IMPACT
No financial or budgetary actions are required at this time.
RECOMMENDATIONS
It is recommended that the Parking Authority and City council:
1) adopt the attached resolutions which approve the development
of sixty-seven units of affordable housing utilizing the
air-rights over Parking Lot Four contingent upon financing from
the U.S. Department of Housing and Urban Development; 2)
authorize staff to determine the feasibility of increasing the
number of public parking spaces at the site; and 3) authorize
staff to prepare and issue a Request for statement of
Qualifications to select a project development team.
Prepared by: Carol Anderson, Housing Analyst
candy Rupp, Housing Program Manager
Community and Economic Development Department
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