Civic San Diego Affordable Housing Master Plan San Diego Housing Commission Board Workshop February 15, 2013
Redevelopment Dissolution Redevelopment agencies eliminated on February 1, 2012 Tax Increment funding eliminated Redevelopment law not eliminated City named Successor Agency City named Successor Housing Entity Prohibited Agency from entering into new obligations or contracts or amending existing obligations
Redevelopment Dissolution Enforceable Obligations as of June 27, 2011 Department of Finance performs oversight CCDC and SEDC were merged to become a new Non-profit Public Benefit Corporation Civic San Diego Wholly-owned by the City of San Diego
Civic San Diego Mission Wind-down of redevelopment former project areas Manage housing assets for Housing Successor Economic development within former CCDC and SEDC project areas Neighborhood revitalization tasks assigned by City Infrastructure improvements / public works former project areas Permitting and planning functions downtown only - Manage DIF s and FAR Bonus fees Management of downtown parking district
Civic San Diego Affordable Housing Projects in Pipeline Enforceable Obligations 3 projects, 524 total affordable units, including 174 supportive housing units for homeless/special needs Partnership with SDHC Development subsidy, Project Based Section 8 Vouchers, Issuance of Tax Exempt Bonds
Connections Housing (Downtown Core) Rehabilitation of historic former World Trade Center building 12-story building with basement and subbasement levels Former RDA subsidy: $15M Scheduled completion in Jan 2013. 73 permanent supportive housing units, 2 manager s units, 150 interim housing beds, one-stop homeless service center and medical clinic Partnership with SDHC Joint issuance of RFP, Developer Selection, Allocation of Project Based Section 8 Vouchers, Development Subsidy Partnership with County MHSA subsidies
9 th & Broadway (Downtown East Village) New construction of 17-story building with 248 affordable housing units, 2 manager s units Former RDA Subsidy: $22M Includes 88 permanent supportive housing units for special needs population 5,800 SF of ground floor retail space at corner of Ninth and Broadway Construction to begin in Feb 2012 Partnership with SDHC Allocation of Project Based Section 8 Vouchers, Issuance of Tax Exempt Bond Partnership with County MHSA subsidies
COMM 22 (Logan Heights) Mixed-use, transit-oriented development with197 affordable homes (128 affordable family rental apartments, 69 affordable senior rental apartments), commercial space and a child care facility Family housing include 13 permanent supportive housing units Former RDA subsidy: $9.3M Include major infrastructure upgrades Construction on housing component to begin in Feb 2013 Partnership with SDHC: Development subsidy for senior housing Partnership with County MHSA subsidies
Affordable Housing Master Plan HOUSING ASSETS Owned by the City as the Housing Successor Entity List of Housing Assets approved by DOF Include the following: 1) Encumbered Low/Mod funds for enforceable obligations 2) Low/Mod housing bond proceeds 3) 22 real properties acquired by former RDA for affordable housing purposes 4) Notes receivable, DDAs/OPAs 5) Covenants (affordability restrictions)
Affordable Housing Master Plan Guiding Principles: Housing Asset Fund Maximize quality unit production with limited resources Homeless housing Maximize leverage with other funding sources Development of affordable housing on Housing Assets kept by Housing Successor Agency Geographic diversity Fund projects City-wide TOD Fund projects with proximity to public transit Sustainability Allow for flexibility Competitively bid to select development partners Use conservative assumptions
Affordable Housing Master Plan HOMELESS HOUSING Has been the priority for downtown Plan towards ending homelessness in downtown San Diego adopted by City Council in 2011 w/ support of SDHC Multiple approaches to create homeless housing: 1)Inclusion of permanent supportive housing units within affordable housing developments 2)Develop extremely low-income studios/living units within new affordable housing developments 3)Acquire and rehabilitate existing apartment complexes or motels 4)Provide rental assistance (vouchers) as short-term housing
Real Estate Assets 22 properties in downtown and Southeastern San Diego - 9 properties have existing affordable housing with affordability covenants and long term ground leases - 1 property (Market Street Square) with existing housing with expired covenants with long term ground lease (currently under negotiation with owner for sale of land) - 12 properties available for future developments
Affordable Housing Master Plan Properties available for developments Of 12 properties available for future developments: 4 sites and 50% of 13 th and Market site are planned to be sold at market-rate to private developers for mixedincome, mixed-use projects RFQ/Ps will be issued to solicit proposals Developers will be required to include 15% of total housing units for low/moderate income households Sales proceeds will be deposited to Housing Asset Fund to be used for future affordable housing projects Remaining 8 sites may be retained for future affordable housing developments
Properties proposed to be sold for marketrate developments 1. 7 th & Market (Downtown - EV) 2. Park & Market (Downtown - EV) 3. 13 th & Market (50% of the site 20,000 SF, Downtown - EV) 4. Popular Market (Downtown - EV) 5. GSA site (Downtown Columbia)
Properties available for future affordable housing developments 1. Fourth and Beech 2. 13 th & Market (50% of the site 20,000 SF) 3. 13 th & Broadway (EV Fire Station site) 4. Former Monarch School site 5. Hilltop & Euclid 6. Ouchi site 7. Gallegos Lara site 8. 40 th & Alpha
Affordable Housing Master Plan Joint Projects with SDHC Atmosphere 13 th & Market/ Hotel Metro Churchill Homeless Housing
Atmosphere (Downtown Cortez) Property Type: Land available for new construction (32,452 SF) Ownership: City as Housing Successor Entity Prospective Uses: Low-mod housing (12 story, 205 units) with ground floor commercial Type/Affordability: Family/Special Needs, 30-60% AMI Supportive Housing: 31 units (MHSA funding is set aside by County) SDHC Participation: Project Based Section 8 Vouchers (Proposed) Wakeland Housing (Developer) had ENA with Former RDA (expired) and obtained design approval from CCDC Board Across from future St. Joeph s park site Proposed funding sources include 4% and 9% TC, MHSA, MHP/Infill (HCD), Project Based Section 8 Vouchers If HCD funding is to be pursued, need executed DDA & Ground Lease by May 2013
Hotel Metro/13 th & Market (Downtown East Village) Background Total 193 SRO units Deteriorating physical conditions due to construction deficiencies and deferred maintenance The land is owned by SDHC and leased to San Diego SRO until 2044 Goals Demolish existing buildings and build replacement project at 13 th & Market If HSA proceeds with Option Agreement with SDHC and acquire the site, sell the lots for market rate development after demolition of existing buildings, use sales proceeds for future affordable housing
13 th & Market (Downtown East Village) Property Type: Land available for new construction (Will only use 20,000 SF of 40,000 SF site the other half to be sold for private development) Ownership: City as Successor Housing Entity Prospective Uses: Hotel Metro Replacement Housing (193 units) Type/Affordability: Special Needs, Extremely to Very Low Income Supportive Housing: Include 50% of Hotel Metro replacement units SDHC Participation: Sale of Hotel Metro site, Development Subsidy and/ or Project based Section 8 vouchers
Property Type: Ownership: Prospective Uses: Hotel Churchill Downtown East Village Existing Historic Building - Rehabilitation SDHC SRO, Special needs housing Type/Affordability: Individuals/Special needs, Extremely to Very Low Income Supportive Housing: 20% or more Civic SD participation: Development subsidy A 7-story, 94-unit historic structure built in 1915 Has been vacant since 2005 SRO restriction recorded against the property for a minimum of 57 units for 30 years (at or below 50% AMI)
Affordable Housing Master Plan Estimated Affordable Housing Production Low/Mod units in mixed-income housing developed by market-rate developers on Housing Assets (not subsidized by HTF) Low/Mod units in affordable and mixedincome housing developed on Housing Assets (subsidized by HTF) Other affordable housing projects City-wide subsidized by HTF # of Low/Mod Units 285 # of Homeless Housing 0 439 224 277 60+ TOTAL 1,001 284+ Does not include pipeline projects (Connections Housing, 9 th &Broadway or COMM22).