Heritage Square South Development Options William K. Huang, Housing Director February 5, 2018

Heritage Square Senior Apts Church’s Chicken Decker House Heritage Square South Site Fair Oaks Ave. Painter St. Orange Grove Blvd. Wheeler Lane

Heritage Square History Mr. Tom Scott unsuccessfully attempted to develop housing on a portion of the site. City acquired Mr. Scott’s site and additional parcels then unsuccessfully attempted to develop the site. City again attempted to develop the site and entered into an Exclusive Right to Negotiate with Retirement Housing Foundation who were unable to fund their proposed development.

Heritage Square History City bifurcates the site Phase I affordable senior housing (North) Phase II commercial development (South) Phase I successfully completed (Heritage Square Senior Apartments) Redevelopment was dissolved Phase II site designated as an “affordable housing asset” City lost $3-$4M per year in affordable housing funds

Bifurcated Plan Fair Oaks Ave Orange Grove Blvd Painter St Phase II – Commercial Phase I - Residential Wheeler Lane

Heritage Square Senior Apts Bridge Housing Heritage Square North (69 1-bedroom units for very low income seniors) On Time & On Budget Outstanding Local Benefits & Local Lease Up LEED Platinum Winner of multiple awards

Heritage Square South Requirements Site was determined by the State to be an “affordable housing asset” Site was acquired exclusively with affordable housing funds If the site is not used primarily for affordable housing it must be sold with sales proceeds restricted for affordable housing Decker House and Churches Chicken to be relocated

Key Questions for Development Options Does the option meet the State’s housing asset requirement? What is the need for the proposed housing type? Are non-City funds available to leverage to build the project? Can the project help the City meet its housing funding commitment and expenditure requirements?

Key Questions for Development Options Can the project use Project-Based rental subsidies? How many housing units will the option likely include? How many of those will likely be affordable and at what income levels?

Options Senior Housing Options 1. Permanent supportive housing apartments for homeless seniors 2. Affordable senior apartments Apartments Options 3. Affordable family apartments 4. Market rate apartments 5. Mixed income apartments

Options Condominium Options 6. Affordable condos 7. Market rate condos 8. Mixed income condos Land Sale Option 9. Sell property

Option 1 – PSH Homeless Seniors OPTION 1: Permanent Supportive Rental Housing for Homeless Seniors Criteria Questions Answer Meets State Housing Asset Requirements? Yes Need for housing type? Very High Non-City funding available? (State, County, etc.) Help meet housing funding deadlines? Can it use Project-Based rental subsidies? Number of units? 70 1-bed Number of affordable units? 69 VLI

Option 2 – Affordable Senior Housing OPTION 2: Affordable Senior Rental Housing Criteria Questions Answers Meets State Housing Asset Requirements Yes Need for housing type? High Non-City funding available? Not Likely Help meet housing funding deadlines? Can it use Project-Based rental subsidies? Number of units? 70 1-bed Number of affordable units? 69 VLI

Option 3 – Affordable Family Apts OPTION 3: Affordable Family Rental Housing Criteria Questions Answers Meets State Housing Asset Requirement? Yes Need for housing type? High Non-City funding available? (State, County) Not Likely Help meet housing funding deadlines? Can it use Project-Based rental subsidies? No Number of units? 30 2&3-bed Number of affordable units? 30 VLI & L

Option 4 – Market Rate Apts OPTION 4: Market Rate Apartments Criteria Questions Answers Meets State Housing Asset Requirement? No Need for housing type? Low Non-City funding available? (Commercial) Yes Help meet housing funding deadlines? Can it use Project-Based rental subsidies? Number of units? 50 1-bed Number of affordable units? In Lieu Fee

Option 5 – Mixed Income Apts Criteria Questions Answers Meets State Housing Asset Requirement? Yes Need for housing type? Moderate Non-City funding available? (Commercial) Help meet housing funding deadlines? Limited Can it use Project-Based rental subsidies? No Number of units? 50 1-bed Number of affordable units? 14 VLI & Low

Option 6 – Affordable Condos OPTION 6: Affordable Condominiums Criteria Questions Answers Meets State Housing Asset Requirements Yes Need for housing type? High Non-City funding available? No Help meet housing funding deadlines? Limited Can it use Project-Based rental subsidies? Number of units? 30 2&3-bed Number of affordable units? 30 L & M

Option 7 – Market Rate Condos OPTION 7: Market Rate Condominiums Criteria Yes/No Meets State Housing Asset Requirement? No Need for housing type? Low Non-City funding available? (Commercial) Yes Help meet housing funding deadlines? Can it use Project-Based rental subsidies? Number of units? 30 2&3-bed Number of affordable units? In-Lieu Fee

Option 8 – Mixed Income Condos OPTION 8: Mixed Income Condominiums Criteria Yes/No Meets State Housing Asset Requirement? Yes Need for housing type? Moderate Non-City funding available? (Commercial) Help meet housing funding deadlines? Limited Can it use Project-Based rental subsidies? No Number of units? 30 2&3-bed Number of affordable units? 10 L

Option 9 – Land Sale OPTION 9 – Land Sale Current zoning requires mixed-use development Estimated land value: $6,500,000 Repay HOME funds ($1,500,000) Restricted Housing funds $5,000,000 City’s sunk costs & revenues Land purchase: ($5,200,000) Relocation & Demolition: ($ 600,000) Revenues $ 570,000 Net Housing Proceeds: ($ 230,000)

Potential Overconcentration Heritage Square South