TITLE
a. Receive a status update on East Garrison affordable housing;
and
b. Recommend that the Board of Supervisors approve Completion Guarantees for Phases 2 and 3 very-low and low income rental affordable housing units.
Report
RECOMMENDATION:
It is recommended that the Fort Ord Committee:
a. Receive a status update on East Garrison affordable housing;
and
b. Recommend that the Board of Supervisors approve Completion Guarantees for Phases 2 and 3 very-low and low income rental affordable housing units.
SUMMARY:
The Disposition and Development Agreement for East Garrison (DDA) includes timing "triggers" or milestones by which the affordable housing apartments must be completed. Union Community Partners East Garrison, LLC (UCP) is on track to hit the first milestone for the Phase 2 apartments in March 2019, and the next two milestones for Phase 2 and Phase 3 apartments, respectively, in 2020. There has been concern by UCP and the Successor Agency that the timing triggers were not going to be able to be met, which was formally brought to the Successor Agency's attention in fall 2017. UCP, Successor Agency, and non-profit partners Community Housing Improvement Systems and Planning Association, Inc. (CHISPA) and Artspace Projects, Inc. (Artspace) have been working diligently to explore options to come up with solutions to address the timing concerns, however, due to the lack of availability of local, state and/or federal funds to pay for the necessary gap funding needs for the Phase 2 and Phase 3 affordable housing apartments it was not feasible to meet the milestones contemplated in the DDA.
To enable the continued building and sale of market rate units in light of the affordable housing funding challenges, in its letter dated October 5, 2018 (Attachment 7), UCP invoked its right to deliver a guarantee to complete the Phases 2 and 3 rental affordable housing units pursuant to the DDA. UCP provided a draft Completion Guarantee for Phase 2 (Attachment 1) and ...
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