HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-1
AT RISK AFFORDABLE HOUSING
State law requires that the City identify,
analyze, and propose programs to
preserve existing multifamily rental
units that are eligible to convert to non-
low-income housing uses due to
termination of subsidy contract,
mortgage prepayment, or expiring use
restrictions during the next ten years.
Consistent with State law, this section
identifies publicly assisted housing units
in Chula Vista, analyzes their potential
to convert to market rate housing uses,
and analyzes the cost to preserve or
replace those units.
1.1 Publicly Assisted Housing
The City maintains programs to provide quality housing affordable to different income groups for a healthy and sustainable community. Local affordable housing funds have been used to assist in providing affordable housing. Table D -1 lists those projects in Chula Vista that are required to be evaluated in the Housing Element. The Development Services Department Housing Division staff monitors tenant and landlord compliance with affordability requirements that stem from the City of Chula Vista’s (City) Balanced Communities (“Inclusionary Housing”) Policy, Affordable Housing Density Bonus program, and financial suppor t, including bond financing, from the Chula Vista Housing Authority.
Two projects are eligible to convert to market -rate units due to expiring affordability restrictions within 10 years and are considered to be “at risk.” Park Village Apartments for families and Rolling Hills Garden apartments for seniors will be expiring within the next ten years. At -risk units were developed under a State of California Housing and Community Development Family Demonstration Program, with financial assistance from the City’s former
1.0 HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-2 City of Chula Vista General Plan
Redevelopment Agency, and another under the City’s Balanced Communities Policy.
Table D-1
Summary of Affordable Housing Developments
Development Name Type Affordability
Expiration
Date
Funding Source Restricted
Units
Park Village Apts Family 6/4/2021 LIHTC/RDA/HCD Family Demo nstration Program
28 Rolling Hills Ranch Garden
Apts
Senior 55+ 3/22/2022 Inclusionary 104
Tavera Family 3/11/2033 Inclusionary 10
Village of Escaya Residences Family 9/25/2039 Inclusionary 30 Kingswood Manor Family 9/12/2049 Density Bonus 10
Casa Nueva Vida II Special Needs 11/14/2049 HOME and LOW MOD 12 Villa Serena Apts Senior 55+ 5/1/2051 LIHTC/Bond 131
Trolley Trestle Special Needs 12/7/2054 HOME/RDA 17
Sunrose Apts Family 12/1/2056 LIHTC/Bond 89
Harvest Ridge Apts Senior 55+ 12/1/2056 LIHTC/Bond 179 Brisa del Mar Family 5/12/2058 LIHTC/Bond/RDA/HOME/Joe Serna 105 Rancho Buena Vista Family 10/1/2058 LIHTC/BOND/Inclusionary 149 Teresina Apts Family 4/1/2061 Bond 90
Oxford Terrace Apts. Family 11/1/2062 LIHTC/Bond/Project Based Section 8 Vouchers
105
Seniors on Broadway Senior 62+ 1/15/2063 LIHTC/HOME 40 The Landings I Family 10/1/2063 LIHTC/Bond/MHP/HOME/Inclusionary 91 Los Vecinos Family 4/13/2064 LIHTC/RDA /Density Bonus 41 Colorado Apts Special Needs 3/30/2065 NSP 2
Glover Apts Special Needs 4/10/2065 NSP 4
Muncey Manor Special Needs 7/28/2065 CDBG 7
Palomar Apts Family 2/16/2066 LIHTC/Bond 0
The Landings II Family 6/30/2066 LIHTC/Bond/HOME/RDA/Inclusionary 141 Congregational Tower Senior 62+ 3/13/2068 Bond/LIHTC 184 Garden Villas Apts Senior 62+ 6/1/2069 LIHTC/Bond 99
Lofts on Landis Family 1/15/2071 HOME and NSP 31
Trolley Terrace Townhomes Family 1/18/2074 LIHTC/Bond/HOME 17 Cordova Apts Family 1/18/2074 LIHTC/Bond 39
St. Regis Apartments Family 6/27/2074 Bond/LIHTC/RDA 118 HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-3
Table D-1
Summary of Affordable Housing Developments
Development Name Type Affordability
Expiration
Date
Funding Source Restricted
Units
Duetta Family 12/31/2087 LIHTC/BOND/Inclusionary/HOME/RDA 86 Volta Senior 62+ 12/31/2087 LIHTC/BOND/Inclusionary/RDA 121 Casa Nueva Vida I Family 08/17/20231 13
Regency Special Needs 11/10/20281 HOME 1
Concord Special Needs 11/10/20281 HOME and LOW MOD 1
Dorothy Street Manor Family Perpetuity Public Housing 0 Town Center Manor Senior 62+ Perpetuity Public Housing 0 L Street Manor Family Perpetuity Public Housing 0
Melrose Manor Family Perpetuity Public Housing 0
Source: City of Chula Vista DSD Housing Division (2019)
1.2 Resources for Preserving Affordable Units
Available public and non -profit organizations
with funds available to preserve assisted
housing developments include San Diego
County, the City of Chula Vista and its Housing
Authority, and various non -profit developers,
including Wakeland Housing and
Development, Community Housing Works,
and Habitat for Humanity. Financial resources
available include bond financing, as well as
CDBG and HOME funds, and Balanced
Community funds. These options depend on
the availability of resources at the time the
development is eligible to convert to market-rate.
Lastly, the State of California Housing and Community Development Department regulates the process that owners of assisted housing developments must follow when units are at risk of
1 Agreements provides for the extension of the restrictive covenants in additional 5 year increments.
HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-4 City of Chula Vista General Plan
converting to market -rate. In accordance with State Law, if an owner of an assisted housing development decides to terminate a subsidy contract, dispose of the assisted housing development, or if the rental restrictions will expire, the owner must first contact an entity that is qualified to preserve at-risk housing and provide a notice of an opportunity for that qualified entity to offer purchase of the property, in an effort to preserve affordability of the property.
The State maintains a list of Qualified Entities who are interested in purchasing assisted multifamily housing projects. The current list of Qualified Entities, HCD’s current list of Qualified Entities, HPD 00 -01 (XLS) , is periodically updated. F or more information related to preservation of multifamily affordable housing stock, please visit the HCD’s website at https://www.hcd.ca.gov/policy-research/preserving-existing-affordable-housing.shtml.
1.3 Preservation Strategies
The appropriate preservation options depend largely on the type of project at risk and the type of financing used to make the units affordable. Options to preserve units could i nvolve providing financial incentives to the project owners to extend low -income use restrictions, purchasing affordable housing units by a non -profit or public agency, or providing local subsidies to offset the difference between affordable and market rate.
Local Rental Subsidy
An option for preserving the 130 units at -risk during the planning period is to provide a local rental subsidy to residents. This method would be utilized to retain the affordability of the units via the provision of assistance to residents when their aff ordable units convert to market rate. State or local rent subsidies can be utilized to maintain the affordability of these units.
Such subsidies can be a in a form of a voucher or payment similar to the Section 8 program. To determine the need subsidy, Fair Market Rates were compared to “affordable rents”, as defined by California Health and Safety Code Section 50053. Table D -2 provides an estimate of the required subsidy by unit type.
HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-5
Table D-2
ESTIMATED MONTHLY SUBSIDY TO PRESERVE “AT-RISK” UNITS
Unit Size FMR Affordable
Rent2
Difference Number of
Units
Monthly
Subsidy
Annual
Subsidy
Studio $1,404 $973.00 $431.00 0 $0 $0
1-Bdrm $1,566 $1,112.00 $454.00 96 $43,584 $523,008 2-Bdrms $2,037 $1,251.00 $786.00 27 $21,222 $254,664 3-Bdrms $2,894 $1,390.00 $1,504.00 9 $13,536 $162,432 TOTAL 132 $78,342 $940,104
55 year subsidy $51,705,720
Notes:
2 Units are assumed as occupied by low income households with affordable rent calculated at 30% of income.
Source: HUD Income Limits and FMR (2020)
1.4 Replacement Cost Analysis
A general rule of thumb suggests that the cost of preserving existing units is more cost effective than replacing units through new construction. Replacement of these units with rehabilitated units may be cost effective in some instances.
Based upon inf ormation provided by the local
development community, brokers and housing
developers, replacement costs for multi -family
units have been estimated. Construction cost
estimates include all hard and soft cost
associated with construction in addition to per
unit land costs. The analysis assumes the
replacement units are garden style apartments
with parking provided on -site. Square footage
has been estimated as the average unit size per
the prevailing sales in the region. Land costs
have been determined on a per unit basis. Table
D-3 provides a summary of estimated
replacement costs per unit.
Table D-3
REPLACEMENT COSTS BY UNIT TYPE
HOUSING ELEMENT 2021-2029
APPENDIX D
Page AD-6 City of Chula Vista General Plan
Unit Size Cost per Square
Foot ($)3
Avg Sq
Ft/Unit
Replacement
Cost per Unit2
Number of
Units
Total Replacement
Cost
Studio $385 500 $192,500 0 $0
1-Bdrm $385 700 $269,500 96 $25,872,000
2-Bdrms $385 900 $346,500 27 $9,355,500
3-Bdrms $385 1,100 $423,500 9 $3,811,500
132 $39,039,000
Notes:
3 Cost Analysis based on average total development cost per unit for projects financed by the Chula Vista Housing Authority during 2019- 2020.
Source: City of Chula Vista DSD Housing Division (2020)