80B - 817 AND 821 S TOWNSEND AND 834 S RAITT

Home Browse Search

Loan Agreements with Townsend & Raitt, LLC and Authorization of Relocation Plan 817 and 821 S. Townsend Street and 834 S. Raitt Street January 7, 2008 Page 3 residential property located at 834 S. Raitt Street in an amount not to exceed $1,365,662 and authorize the Executive Director or designee to execute all required documents. Tl T C f`TTC C T!'1T~T The City of Santa Ana has recently formed an interagency task force comprised of the Police Department, Public Works, Planning and Building and the Community Development Agency for the purpose of addressing the multiple quality of life issues that exist in the Townsend-Raitt area. This area is bounded by Raitt Street on the east, McFadden Avenue on the south, an alley on the west, and Monta Vista Street on the north. In a survey conducted by the task force, two of the major issues identified by tenants as impacting the quality of their lives are the dilapidated housing and the high cost of rents. Census updates indicate that in 2006 the median household income in this area was $33,304, while it was $54,000 for the City as a whole and $78,300 for Orange County. Townsend & Raitt, LLC is comprised of Orange Housing Development Corporation, a non-profit 501(c)(3) (OHDC), and C & C Development Co., LLC. They are currently in escrow to purchase and rehabilitate two 10 unit and one 11 unit apartment buildings in this area. These units are located at 817 and 821 S. Townsend Street and 834 S. Raitt Street (Exhibit 1) Both OHDC and C & C Development have many years of successful experience owning and operating apartment buildings in other areas facing similar challenges. In Santa Ana they own and operate twenty buildings in the Cornerstone Village project area and recently acquired seventeen buildings in the Wilshire-Minnie area. Part of their success stems from their practice of hands-on management with an emphasis on fair and consistent enforcement of lease agreement conditions. Thirty of the thirty-one total units will be restricted to occupancy by fifty percent (very low-income) of the Area Median Income (AMI). One unit will be reserved for the manager. Rents for one-bedroom units will be $781 and $935 for two-bedroom units. Current residents whose incomes exceed eighty percent of the AMI will be allowed to remain. Rents for these households will be increased to either thirty percent of their monthly household income or market rent for the neighborhood, whichever is lower. 80B-3