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Joint Public Hearing - DDA with OCCHC for Logan Property August 18, 2008 Page 2 DISCUSSION In August 2004, and 1015 Logan opportunities Neighborhood. the Conununity Redevelopment Agency acquired 1006, 1012 Street (Exhibit 1) to develop affordable homeownership and support residential land uses in the Logan The Conununi ty Redevelopment Agency has been working with Orange County Conununity Housing Corporation (OCCHC) to develop three detached single- family homes in the Logan Neighborhood. OCCHC is a nonprofit corporation created for the purpose of developing affordable housing for families. OCCHC proposes partnering with general contractor Hope Builders, a subsidiary of Taller San Jose and Neighborhood Housing Services of Orange County (NHSOC). OCCHC will contract with Hope Builders for the construction of the homes. This will provide job training opportunities for residents served by Taller San Jose. NHSOC will market and sell the homes. The homes will be sold through a lottery to households earning eighty percent of the area median income. Priority will be given to households who live or work in the City. The term of affordability covenants will be 45 years. Under the proposed actions, the Conununity Redevelopment Agency will: 1) sell 1006, 1012 and 1015 Logan Street to OCCHC for $535,000; and 2) provide construction financing including soft costs, not to exceed $1,553,400 (Exhibit 2). The homes have been designed to ensure compatibility with the neighborhood and will consist of one, three- bedroom, two bathroom home with a detached two-car garage and two, four- bedroom, three bathroom homes with detached two-car garages (Exhibit 3). Front yard landscaping will be included in the development. The total construction costs reflect site excavation for one of the lots and enhanced features for sound attenuation for all of the units. The homebuyer will be responsible for securing the financing for the First Trust Deed. The first time homebuyers will execute a zero- interest promissory note and trust deed (silent second) with the Conununity Redevelopment Agency. The amount of the note will be equal to the difference between the fair market value of the home and the affordable sales price at the time of completion. The current affordable sales price is $160,600 for the three-bedroom and $172,200 for the four-bedroom houses. The proceeds from the sale of the homes will be paid to the Conununi ty Redevelopment Agency. All subsequent homeowners must also meet income eligibility requirements. 80B-2