03 ATTACHMENTS - Laserfiche WebLink

Neighborhood Solutions, the average cost of major rehabilitation projects is $35,000 to $40,000 per unit. The program has seen a steady increase in costs in recent years as the costs of building materials and labor increases. According to the CHAS data there were 2,698 elderly homeowner households in Pleasanton in 2000. Of those households, nearly 20% (517) were extremely low and low income households. The additional rehabilitation needs of the low and moderate income owner occupied stock creates a priority for programs to preserve that supply. As of March 2010, there were 860 units specifically reserved for very -low- and low income households in rental apartment complexes in Pleasanton as part of the City's Below- Market -Rate Program regulatory agreements. Of this total, about 565 units were reserved for the elderly and about 295 units for other qualifying households. These units are supported by a variety of assistance sources, including HUD Section 236 funding, CHFA tax exempt bonds, non profit consortiums, City funding, and private regulatory agreements through the City's Inclusionary Zoning Ordinance. Although two projects (with a total of 98 below- market -rent apartment units) lost their affordability restrictions within the past five years, there is currently only one additional project (Pleasanton Gardens, a 40 -unit Section 236 Section 8 development for very low income seniors) facing potential expiration. As noted earlier, all of the regulatory agreements executed by the City since 2001 will not be subject to expiration and will apply in perpetuity by agreement with the affected property owners. In addition, the 40 units at Pleasanton Gardens are owned by an interfaith non profit group, and it is unlikely that these units will convert to market when the owner becomes eligible to pay off the HUD mortgage in 2010. However, it may be necessary for the City to provide financial and/or technical assistance to ensure that this is the case. The City is currently working on a project to redevelop Pleasanton Gardens in conjunction with another adjacent development, Kottinger Place, that was also developed in the early 1970's. At present rates for new construction and /or acquisition and rehabilitation, it costs approximately $250,000 or more to create one unit of housing that is comparable in size and rent levels to the units that are at risk of losing their affordability provisions. Therefore, it would cost approximately $10 million to replace the 40 below- market housing units at Pleasanton Gardens. However, as noted earlier, it is anticipated that these units will be preserved through efforts that are currently under way. The data in Table 2 show that low income households in Pleasanton are highly likely to pay more for housing than they can afford and have other housing related problems. 'These housing related problems include overcrowding of units, substandard plumbing and electrical, inadequate kitchen facilities, low numbers of affordable units and high rents. The affordability problems facing low income renters in Pleasanton were summarized under the previous Priority and more fully discussed in the Housing Needs Assessment Section. Strategic Plan FY2010 FY2014 City of Pleasanton Page 11