HOUSING AUTHORITY BOARD OF DIRECTORS

6 THE CITY OF HOUSING AUTHORITY OF THE CITY OF PLEASANTON AGENDA REPORT pLEASANTON. October 21, 2014 Executive Director TITLE: APPROVAL OF A RESOLUTION AUTHORIZING AN APPLICATION TO THE UNITED STATES DEPARTMENT OF URBAN DEVELOPMENT TO APPROVE THE DISPOSITION AND DEMOLITION OF KOTTINGER PLACE SUMMARY On May 20, 2014, the City Council approved PUD-101 that includes replacement of 90 existing senior apartments located at 240 and 251 Kottinger Drive with a new 185-unit development for low income seniors. With that action, the project moved from the predevelopment/entitlement phase to the development phase. Part of this later phase includes obtaining approval from the United Stated Department of Urban Development (HUD) to demolish the existing 50 Kottinger Place units located at 240 Kottinger Drive. While Kottinger Place (HUD #CAO81) is owned by the Housing Authority of the City of Pleasanton (Housing Authority), it was funded by HUD (which holds a Deed of Trust on the property), receives ongoing HUD subsidies and is subject to HUD operational requirements. As a result of this situation, HUD's approval is required for an alternative project disposition or to demolish the development. As part of the HUD process, the Housing Authority must submit an application to HUD seeking its approval regarding the disposition and demolition of Kottinger Place. (Pleasanton Gardens is owned and controlled by a local not-for-profit and is not subject to these requirements.) While HUD offers a few alternatives for this process, staff is pursuing what is commonly referred to as a HUD Section 18 Application. This application process typically involves two steps; step one involves submittal of an informal technical assistance application to HUD whereby it provides preliminary findings of its review, and step two involves the actual application for disposition and demolition. Since approval of the project PUD, staff and MidPen Housing Corporation (MidPen) have been pursuing the technical assistance application phase and staff has just recently been informed that HUD has accepted (i.e., approved) the application. As such, the next step involves submittal of the actual disposition and demolition application and this agenda report requests the Housing Authority Board of Director's approval to pursue that application process. RECOMMENDATION Approve the Housing Authority Resolution HA-2014-4 authorizing the Executive Director to submit and pursue approval of an application to HUD to allow for the disposition and demolition of the 50-unit Kottinger Place development (Attachment 1). FINANCIAL STATEMENT Financial impact includes approximately $20,000 in MidPen administrative fees to prepare and monitor the application process. These costs are included as part of the $2.8 million Disposition, Development and Loan Agreement with MidPen approved in 2013.