CITY COUNCIL STAFF REPORT
FEBRUARY 6, 2024 {{section.number}}d
AUTHORIZATION TO RELEASE A REQUEST FOR QUALIFICATIONS FOR REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OF 517-519 ORANGE AVENUE
RECOMMENDATION:
Authorize the release of a Request for Qualifications (RFQ) to solicit proposals for rehabilitation and long-term property management of 517-519 Orange Avenue.
BACKGROUND:
The City purchased the property located at 517-519 Orange Avenue (APN 536-381-05-00) in June 2022. The approximately 3,500 square-foot property is developed with a 2-story residential duplex that includes two 2-bedroom, 1-bath apartments that each offer approximately 1,000 square-feet of living space. The property has four off-street parking spaces provided by an attached 2-car garage and adjoining carport that are accessed from an alley at the rear of the property. The units are currently occupied and the City has performed property management and maintenance since acquisition.
The City purchased the property with the intent of rehabilitating the duplex, converting it to a longterm affordable housing site (55 years or more) for low-income households, and leasing the property to a qualified property manager with affordable housing experience. The property is included as an affordable housing opportunity site in the City’s draft Housing Element Update.
ANALYSIS:
If authorized by the City Council, the RFQ (Attachment 1) will be used to solicit qualified developers with demonstrated experience in rehabilitating, operating, and managing affordable housing projects to enter into a Disposition and Development Agreement (DDA) and long-term ground lease to comprehensively rehabilitate and manage the property at 517-519 Orange Avenue. The RFQ would be posted to the City’s website and shared directly with local affordable housing developers, non-profit affordable housing organizations, and entities that have requested notice of affordable housing opportunities through the State Department of Housing and Community Development (HCD).
Interested parties would have 60-days to submit responsive proposals. A selection committee comprised of City staff would review and evaluate all submitted proposals, conduct interviews as necessary, contact references, and select a qualified development team for the City Council’s consideration. It is anticipated that staff will present its recommendation with a proposed DDA and ground lease in late summer 2024.
FISCAL IMPACT:
None.
ALTERNATIVE:
The City Council may choose not to release an RFQ.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
This activity is exempt from environmental review because it is not considered a project as defined by CEQA.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Draft Request for Qualifications
Submitted By: Community Development Department / Richard Grunow