REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
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Approve Middle Income Housing Program by adopting Resolution No. 2021-43 and Resolution No. 2021-44; Authorize the City Manager to enter into Public Benefit Agreements and execute Middle-Income Housing Program agreements, and determine that these actions are not subject to the California Environmental Quality Act
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Statement of Issue:
City Council approval is requested for the following items related to the Middle Income Housing Program, in order to enable the acquisition and conversion of two market-rate apartment complexes into workforce housing within the City of Huntington Beach:
1. Resolutions approving, authorizing, and directing execution of joint exercise of powers agreements supporting the issuance of bonds for the production, preservation, and protection of essential middle-income rental housing;
2. Joint Exercise of Powers Agreements;
3. Public Benefit Agreements, which may result in the City receiving surplus revenue from the future sale of the projects; and
4. Regulatory Agreements and Declaration of Restrictive Covenants.
Financial Impact:
If approved, the Middle Income Housing Program would result in the creation of 649 middle income housing units at the two current market-rate apartment complexes in question. Based on the terms of the program, the identified units would be created at an average cost of $23,169 per door, which is an efficient and cost-effective way of establishing affordable housing units.
Based on current market conditions, the estimated cost of acquiring and rehabilitating 649 units and income restricting them at "middle income" levels would be between $56,000 and $85,000 per door, depending on the level of income targeting. For further comparative purposes, the City's recent experience with an affordable...
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