80A - JOINT - OLSON URBAN HOUSING LLC

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Public Hearing - DDA with Olson November 17, 2008 Page 2 Eastwood, 719 N. Concord, 812 N. Concord, 542 E. Central, 1029 McLean, 4010 & 4018 W. McFadden, 4106 W. McFadden, 4110 W. McFadden, 4809 W. Edinger. CO1~li7NITY REDEVELOPMENT AND HOUSING CO1~lISSION RECONIl~~NDATION At its Regular Meeting of October 21, 2008, by a vote of 6:0, the Community Redevelopment and Housing Commission approved the following recommendations: (1) that the recommendation be amended to include military veterans, who either work or live in the City, be given priority during the lottery process; (2) that the City Council hold a public hearing and approve a resolution regarding the sale of 2034 N. Bush, 2038 N. Bush, corner of N. Spurgeon and E. 22nd, 1314 Eastwood, 719 N. Concord, 812 N. Concord, 542 E. Central, 1029 McLean, 4010 & 4018 W. McFadden,. 4106 W. McFadden, 4110 W. McFadden, 4809 W. Edinger to Olson Urban Housing LLC for the development of twenty affordable single-family homes; and (3) that the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement between the Community Redevelopment Agency and Olson Urban Housing LLC for the development of twenty affordable single-family homes at 2034 N. Bush, 2038 N. Bush, corner of N. Spurgeon and E. 22nd, 1314 Eastwood, 719 N. Concord, 812 N. Concord, 542 E. Central, 1029 McLean, 4010 & 4018 W. McFadden, 4106 W. McFadden, 4110 W. McFadden, 4809 W. Edinger. DISCUSSION A key objective of the Redevelopment Agency (Agency) is to expand and preserve affordable housing. As such, the Agency is proposing to convey eight Agency-owned sites to accommodate the development of 20 single- family homes. Many of these sites were acquired as a result of street and freeway widening activities. Olson Urban Housing LLC (Olson) was selected by means of a Request for Qualifications process. On October 1, 2007, the Agency directed staff to enter into negotiations with Olson for the preparation of a Disposition and Development Agreement (DDA) that would ensure construction and sale of quality affordable housing. Negotiations are now concluded and we are prepared to move forward with the DDA. The terms of the DDA provide that the Agency will sell eight developable sites to Olson and provide them with a $2.45 million construction loan. Of the 20 homes, 13 will be sold to moderate-income (1200 of area median income (AMI)) families and the remaining 7 will be sold to low-income (80o AMI) families. Exhibit 1 shows the current maximum household income as adjusted for household size, as well as the current maximum affordable sales prices. The homes will be sold through a lottery process to be organized and conducted by Olson. Preference 80A-2