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

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

3. 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.

4. 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

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

6. 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

8. 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

9. 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?

10. 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?

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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)

22. Potential Overconcentration
Heritage Square South