80A - JOINT PH - RESO AND DDA WITH HABITAT FOR HUMANITY

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Joint Public Hearing - DDA and Resolutions March 21, 2011 Page 2 DISCUSSION A key objective of the Redevelopment Agency (Agency) is to expand and preserve affordable housing. Staff was directed in December 2009 to negotiate a Disposition and Development Agreement (DDA) with the developers resulting from a Request for Qualifications for both single family and multi-family residential units on properties owned by the Agency. Habitat for Humanity of Orange County, Inc. (Habitat) was selected as developer for the single-family housing parcels. Habitat was created for the purpose of constructing and selling new homes to low and moderate income families. Their strength and experience over the past 21 years has been in the design and development of small, irregular, scattered sites for the construction of single family dwellings. Negotiations have been concluded and we are prepared to move forward with a DDA. Under the proposed DDA, the Agency will convey properties in three phases. A typical site plan and elevations for the various sites is attached as Exhibit 1. In accordance with redevelopment law, a Summary of Sale has been prepared by Keyser Marston Associates, which outlines in detail the financial terms of the proposed transaction. A summary of the terms and conditions contained in the proposed DDA are as follows: • Developer will construct a total of 17 single family homes: o 9 three bedrooms and 8 four bedrooms o 7 low-income (80% Area Median Income- AMI) homes o 10 moderate income(120% AMI) homes • Construction will be accomplished in three phases; • Conveyance of Agency parcels at no cost; • Agency will loan an amount not to exceed $1,615,513, (includes planning, transportation and school fees), which will be repaid in the form of 45 year affordability covenants ; • Agency to provide a Developer fee in the amount of $50,000 per affordable unit at time of sale to qualified home buyer; • Affordability covenants will run with land for 45 years. The following identifies the size of the homes and level of affordability: 8OA-2