Presentation on theme: "Housing Department PASADENA CITY COUNCIL Herkimer Gardens 411- 415 N. Raymond Avenue William Huang, Housing Director June 13, 2011."— Presentation transcript:
Housing Department PASADENA CITY COUNCIL Herkimer Gardens 411- 415 N. Raymond Avenue William Huang, Housing Director June 13, 2011
Housing Department 2 Herkimer Gardens Staff Recommendation: Approve key business terms of development agreement with Heritage Housing Partners for Herkimer Gardens affordable ownership housing development at 411-415 N. Raymond Ave.
Housing Department 3 Herkimer Gardens Project Merits Provides first time homebuyer opportunities Targets large low-income households Removes blight Preserves at-risk historic structures Strengthens neighborhood’s historic character Expends hard to use State CalHOME funds Expends State BEGIN funds
Housing Department 5 Herkimer Gardens Project Concept Four units of affordable ownership housing for lower income families Project was originally planned as market rate but was converted to affordable housing due to economic downturn New construction of one 1-bedroom unit Historic restoration of three units with 4- and 5- bedrooms
Housing Department 6 Herkimer Gardens Project Concept Historic Herkimer Arms (Greene & Greene) and Hammond House originally located at Fuller campus; slated for demolition, relocated & saved by the developer Construction of detached garage for parking off Maple Street One-bedroom loft unit above the garage
Housing Department 7 Herkimer Arms as originally located at Fuller Theological Seminary campus
Housing Department 11 Herkimer Gardens Development Cost & Financing $3.0 million total development cost $1,800,000 conventional construction loan $ 610,000 City construction loan $ 232,500 other private sources $ 357,500 developer equity $3,000,000 Total
Housing Department 12 Herkimer Gardens Homebuyer Loan Assistance Funding $ 610,000 Recast of City construction loan $ 240,000 State Calhome homebuyer funds $ 586,075 State BEGIN homebuyer funds $1,436,075 Total City applied for State BEGIN funds for Herkimer in May 2010 but Gov. Brown froze BEGIN (and other State housing funds) in February 2011 before awards were made, delaying this project. The freeze has been lifted and the Herkimer award letter has been received.
Housing Department Herkimer Gardens Affordable Sales Prices* *Contract sales prices will include soft loans 13 Low Income Limits HH SizeMax. Income 2$53,000 4$66,250 6$76,850 8$87,450 Housing Unit Affordable Price 1-Bedroom$267,000 4-Bedroom$394,000 5-Bedroom$423,000
Housing Department 14 Herkimer Gardens Key Terms of Agreement City loan assistance (all sources) totals $1,436,075 Developer ‘break-even’ financial position on project 45-year regulatory agreement w/ City right of first refusal to purchase resale units Scope Of Work and Schedule Of Performance Water- and energy-saving design First Source ordinance Local Preference (buyer selection)
Housing Department 15 Herkimer Gardens Purchase Selection Process HHP commenced marketing in January 2011 to establish applicant list Selection based on application score, with City Local Preference for those who: 1) live & work in the city; 2) live in the city; 3) work in the city; 4) displacees Housing Dept. to approve income eligibility Selected applicants to obtain mortgage
Housing Department 16 Herkimer Gardens Housing Developer Heritage Housing Partners Pasadena non-profit established in 1998 Specializing in affordable ownership housing communities and historic preservation Successful track record 8 completed Pasadena projects (49 units) Doran Gardens in Glendale (60 units)
Housing Department 23 Gartz Court – Pasadena Heritage
Housing Department 24 Herkimer Gardens City Policy Considerations Improve/support quality of life and local economy (City Council Strategic Planning Three-Year Goals) Housing Element of General Plan Regional Housing Needs Assessment Five-Year Consolidated Plan
Housing Department 25 Herkimer Gardens Project Approval Schedule Neighborhood meeting - February 12, 2011 NW Commission – May 12, 2011 (approved) Community Dev’t Committee – May 26, 2011 (approved) Economic Dev’t & Technology Committee – June 1, 2011 (cancelled) City Council – June 13, 2011