SR 05:103 - Laserfiche WebLink

As of January 1,2001, there were 845 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 400 units were reserved for the elderly and about 450 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 Growth Management Program. Some of these projects have been identified as being at risk of losing their affordability restrictions within the next several years as shown in Table 4 below: Table 4 - At-Risk Affordable Housing Units TYPE OF EARLIEST DATE OF ELDERLY OTHER PROJECT NAME I ASSISTANCE CHANGE FROM BMR BMR ADDRESS RECEIVED LOW-INCOME USE UNITS UNITS Valley Plaza V a.qes Growth management · exemption with City 2006 0 32 4411 Valley Avenue regulatory agreement Civic Square Apts. Growth management 4800 Bernal Avenue exemption with City 2010 0 66 regulatory agreement HUD Section 8 and 2010 (eligible to Pleasanton Gardens Section 236 rent pay off HUD 40 0 251 Kottinger Ddve structures mortgage) The City Council recently established a public-private task force to pursue negotiations with the owners of below-market rental developments to attempt to extend the regulatory agreements beyond the current terms. The City is prepared to offer incentives such as fee waivers or reductions, refinancing assistance, and financial assistance with capital improvements. Until recently, the local rental market has not been conducive to achieving success in extending rental agreements. However, lower market rents and increased vacancy rates provide a more favorable environment which may yield success in the future. Most of the regulatory agreements executed by the City since 1996 will not be subject to expiration and will apply in perpetuity by agreement with the affected property owners. In addition, the 40 units of very-low-income senior housing 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. At present rates for new construction and/or acquisition and rehabilitation, it costs from $150,000 to $200,000 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 $22 million to $30 million to replace all of the 148 below-market housing units listed in the preceding table. However, as noted earlier, it is anticipated that most of these units will be DRAFT - Strategic Plan - FY2005- FY2009 City of Pleasanton Page 10