SR 05:219 - Laserfiche WebLink

Notwithstanding these risks, the project represents a unique opportunity to pursue a service that will meet the needs of seniors regardless of personal income. Further, it represents a significant effort by the Housing Commission, the Assisted Living Subcommittee and BRIDGE. During the development ofthe project, the City has consistently received inquires regarding the project from residents and other individuals in need of this service. It also represents a need for residents in City affordable senior housing who regularly face limited options for housing to meet specialized needs as they age. As a result, notwithstanding the risk involved, staff is recommending project approval. Project Affordability As indicated above, the impact that the affordable units will have on this project is significant. Unlike the City's involvement with affordable ownership or rental units, the proposed project's affordability includes "rental" charges as well as a reduction in assisted living services. A sample of this affordability is listed below: SUMMARY OF PROJECT AFFORDABILlTY Unit # Affordable Monthly Average Monthly Total Type Units Type Fees Market Difference Monthly (%AM!) Fees (1) Difference 25% units 9 25% $967 $5,201 $4,234 $38,106 50% Units 21 50% $1,933 $5,201 $3,268 $68,628 Alzheimer Bed 1 50% $1,933 $5,600 $3,667 $ 3,667 Total 31 1. Based on an average of projected service levels the figures above are included in the project cash Total Monthly Difference $ 110,014 flow. Actual amounts will vary prior to lease-up. Total Annual Difference $1,320,168 As indicated above, the average monthly unit variance between the affordable and the market units is significant especially compared to a typical subsidy for a one-bedroom affordable unit at 50% of the median income, which is $338/monthly. As the Council is aware, it has been challenging attempting to acquire affordable units at SO% of the median income considering the level of this subsidy. Because of the level of subsidy the City will monitor vacancy rate and project revenues and will provide the Council with any recommendations needed to make necessary adjustments to affordable policies. It should also be noted that BRIDGE Housing is contributing an amount equal to approximately $24,000 annually to subsidize one Alzheimer's unit for a period often years. Previously, it was assumed that BRIDGE would subsidize the bed for the life of the project. However, after discussing the practicality of this commitment, the obligation was changed to a period of ten years with the understanding that BRIDGE will continue the contribution if it is financially SR:05:2l9 Page 14