HOUSING AUTHORITY BOARD OF DIRECTORS

4 THE CITY OF HOUSING AUTHORITY OF THE CITY OF PLEASANTON AGENDA REPORT pLEASANTON. December 16, 2014 Executive Director TITLE: APPROVAL OF A RESOLUTION AUTHORIZING THE HOUSING AUTHORITY OF THE COUNTY OF ALAMEDA TO MAKE AN APPLICATION FOR REPLACEMENT HOUSING VOUCHERS FOR THE 50-UNIT KOTTINGER PLACE PUBLIC HOUSING DISPOSITION 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 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/use including its demolition. In response to the above, at your Board of Director's meeting of October 21, 2014, your Board approved a resolution authorizing the Executive Director of the Housing Authority to submit the disposition application to HUD and that application is being prepared by MidPen Housing Corporation (MidPen) which is the City's selected developer for the site. As part of the disposition process and the project's long term financial plan, the City anticipates that it will compete to receive 50 replacement Housing Choice Vouchers from HUD for the purpose of providing on-going operating revenue to subsidize the below market rents at the new development. The Housing Choice Voucher program for Alameda County is administered by the Housing Authority of the County of Alameda (Alameda County Housing Authority) and it is required to make application to HUD for the replacement housing vouchers prior to making them available to the Housing Authority/City. As such, staff is recommending approval of the attached resolution authorizing the Alameda County Housing Authority to submit the application to HUD for the replacement housing vouchers. RECOMMENDATION Approve the Housing Authority Resolution HA-2014-05 authorizing the Housing Authority of Alameda to make application to HUD for replacement housing vouchers for Kottinger Place (Attachment 1). FINANCIAL STATEMENT Staff anticipates a small administrative fee from the Alameda County Housing Authority for preparing the application and conducting the process of awarding the housing vouchers. Funds will be taken from the existing $10 million reserve from the City's Lower-Income Housing Fund established for the project.