RESOLUTION NO. 2017-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER
AUTHORIZING THE MODIFICATION OF THE SILVER OAKS SENIOR COMMUNITY
PROJECT IN-LIEU FEE PROGRAM
WHEREAS, the City of Hollister has a performance agreement for the Silver Oaks Senior Community project; and
WHEREAS, the performance agreement was amended on May 3, 2010 outlining terms and conditions of the affordable components; and
WHEREAS, the developer is requesting to modify the performance agreements In-Lieu Fee program to be a contribution to the City of Hollister Affordable Housing Program.
THEREFORE, BE IT RESOLVED THAT: The City Council of the City of Hollister authorizes and directs staff to accept a minimum of$500,000.00 to the City of Hollister Affordable Housing Program fund 851.
BE IT FURTHER RESOLVED THAT: The developer of the Silver Oaks Senior Community project is hereby directed to contribute a minimum of$500,000.00 for the tax credit application with the California Tax Credit Allocation Committee for the 49 unit senior apartment housing complex on Line Street (CHISPA/CSDC) BE IT FURTHER RESOLVED THAT: In the event that the tax credit application is unsuccessful in this current round, CHISPA is directed to refund the developer's 500,000.00 contribution to the City of Hollister Affordable Housing Program in addition to the $300,000.00 committed to the Line Street project pursuant to Resolution 2017- 122.
PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held this 19th day of June, 2017, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
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Resolution No. 2017-
The undersigned City Manager of the Applicant here before named does hereby attest and certify that the forgoing is a true and full copy of a resolution of the City of Hollister City Council adopted at a duly convened meeting on the date above-mentioned, which has not be altered, amended or repealed.
William B. Avera, City Manager
Ignacio Velazquez, Mayor
ATTEST:
Thomas A. Graves, MMC, City Clerk
APPROVED AS TO FORM:
L+G LLP, Attorneys at Law
E. Soren Diaz, City Attorney
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e, • a .
Performance Agreement
Miller/Ferreira Senior Housing Development)
This Performance Agreement is entered into on the
4th day of February,
2008, between the City of Hollister("the City"),and Marilyn Ferreira Real Estate, Incorporated, and Miller Homes, Incorporated ("the Developer"),with reference to the following:
1. Recitals. The Developer is proposing to develop a senior housing project("the Project")as defined by Chapter 16.64 of the Hollister Municipal Code on approximately 24.4 acres of property located between Valley View and Airline Highway in the City of Hollister("the Property"). The legal description and the map of the Property are incorporated into this agreement as Exhibits"A"and B," respectively.
On October 5, 1998, by Ordinance 921,the City Council rezoned the portion of Property within the City from R-1 to R-1-PD (Single Family Residence Planned Development District), and by Ordinance 922 prezoned that portion of the Property outside the City limits to R-1-PD and R-2-PD. On the same date, by Resolution 98-245,the City Council certified the Mitigated Negative Declaration and adopted the Mitigation Monitoring Program for the Project("Environmental Documents").
On November 8, 2001,the Hollister Planning Commission approved an award of 161 special unit allocations to the Project applicant, and authorized an additional 9 allocations for the Project,to be issued by City in the next group of allocations. On February 4, 2002,City Council of Hollister denied an appeal of Developer's allocations from the Planning Commission,thereby affirming an award of 161 special unit allocations to Developer.
On September 6,2005, by Resolution 2005-128,the City Council approved a minor addendum to the Environmental Documents,finding that all potential significant impacts of the Project had been identified and addressed. All annexation proceedings have concluded.
On July 9, 2007,the City Council reduced the City Hall/City Yard, Police, Sewer Treatment, and Sewer Connection Fees based on the assumption of 1.67 occupants per unit At that time the City Council also waived the Developer's requirement to provide 40%affordable units in exchange for Developer paying a fee.
The City and the Developer are now prepared to move forward with the application process.
2. Intent of Agreement. This Performance Agreement is required by and subject to the provisions of Municipal Code Chapter 16.64, specifically Section 16.64.090.
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3. Project Description.
A. The Developer proposes to build a senior housing development as defined by state and local law. At least one occupant of each unit shall be 55 years of age or older. The Project will be comprised of 170 residential units,of which 161 units have received special unit allocations,with the final nine (9) allocations to be issued in the first group of allocations granted by the City. Each unit will be limited to a maximum of 3 bedrooms.
B. The application submitted by the Developer for special unit allocations, Estancia SUA Application 2001-3), entitled Estancia Senior Community, Hollister, California, consisting of 59 pages plus exhibits, is incorporated into this Agreement with the following exceptions:
i. The Developer shall have the right to change attached homes in the site plan to detached homes.
ii. The Developer shall have the right to make changes in the building plans and designs to revise the floor plans of the buildings with 2200 square feet as the maximum square footage of any building and a maximum average of 1999 square feet for all buildings in the Project. iii. In exchange for the in lieu fees required in Section 8 herein,the Developer is no longer required to provide any affordable housing units in this project.
4. Buildout.
A. Developer can begin to apply for building permits as soon as the California Regional Water Quality Control Board takes action to permit the City to issue building permits and sanitary sewer services are available to serve the Project. Developer shall be issued no more than 93 building permits in 2009.
Developer may apply for building permits for the remaining 77 units on or after January 1, 2010.
B. Building permits for all units in the Project shall be issued within five 5)years from the date the Tentative Map is approved,or the date on which the California Regional Water Quality Control Board takes action to permit the City to issue building permits,whichever occurs later.
C. Developer's failure to complete the Project within the time lines specified herein shall result in the loss of all special unit allocations which have not received building permits. Developer shall have the right to reapply to City for future allocations.
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5. Impact Fees.
A. Developers shall be responsible to pay all applicable development impact fees and charges adopted by City Council and that are attributable to the Project. Impact fees shall be due and payable at the time of issuance of the building permit in the fee amount existing when the permit is issued.
B. The following development impact fees shall be calculated as a percentage of the established development impact fee amount based on the assumption of 1.67 occupants per unit: (1)City Hall/City Yard; (2) Police;(3) Sewer Treatment; and (4)Sewer Collection.
C. The Traffic Development Impact Fee shall be calculated as thirty-nine percent(39%)of the established Traffic Impact Fee amount based on the 3.71 trips generated from a detached senior unit compared to 9.6 trips generated from a non-senior detached residence.
6. Fiscal Neutrality Fee.
A. The Developer has agreed to pay, as a condition of annexation and in accordance with the fiscal neutrality provisions of the General Plan,a fee for each unit developed on any portion of the Property that was annexed to the City since January 1, 2000, to ensure that the proposed development pays its own way and eliminates or minimizes the financial burden created by the development on City services and facilities.
B. The fiscal neutrality fee was originally established at$314 per unit in 1998 dollars,adjusted to$394 as of 2007, which fee shall be adjusted annually on each July 1 based on changes in the Consumer Price Index,All Urban Consumers-San Francisco-Oakland-San Jose as published by the U. S.
Department of Labor, Bureau of Labor Statistics.
7. County Fee.
A. As a condition of annexation, and in accordance with Section 5(b)of the Tax Sharing Agreement between the City of Hollister and the County of Benito, dated December 20, 1999,the Developer shall pay a fee to the City in the ' amount of$7,000 per unit for each residential unit,or as adjusted by agreement of the City and County. The County fee shall be adjusted annually on each July 1 based on changes in the Consumer Price Index, as provided in the Tax Sharing Agreement. The fee shall be imposed on each unit that is located on any portion of the Property annexed since January 1,2000.
B.The City agrees to cooperate with the Developer in negotiating an adjustment of the County's fee based upon the projected density of a senior housing development; provided, however,that if the County declines to adjust 3 K.1.d
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the fee,the fee established by the Tax Sharing Agreement shall be payable to the City without further obligation of the City.
8. Affordability; In Lieu Fee.
A. In exchange for the City releasing Developer of its obligation to provide 40%of the Project, or 68 units,as affordable housing,the Developer shall pay to City an in lieu fee of Fifty Thousand Dollars per unit,for a total of Three Million Four Hundred Thousand Dollars($3,400,000), based on the Project receiving 170 allocations. If the Project is not awarded any or all of the final nine 9)allocations, the amount of the in lieu fee shall be reduced proportionately.
B. If the Developer voluntarily reduces the number of units of the Project, Developer shall be required to pay the full amount of the in lieu fee($3,400,000).
If the Developer is required to reduce the number of units of the Project because of acquisition of a portion of the Property by California State Department of Transportation (Cal Trans),the in lieu fee shall be reduced proportionately.
B. Developer shall not be required to pay the entire in lieu fee at the time of issuance of the first building permit in the Project. Instead,the Developer shall pay the City the in lieu fee in installments of$20,000,payable upon issuance of the occupancy permit for each unit in the Project.
9. Application process.
Concurrent with the submission of the planned development and tentative map application, Developer shall submit ail required information and studies required by the Environmental Documents including a completed traffic study.
Developer shall submit its completed development application for the Planned Development permit and Tentative Subdivision Map no later than December 31, 2008. If there is a delay in resolution of the issue of the amount and location of the Cal Trans right of way from this Project,the deadline to submit the completed development application for the Planned Development permit and Tentative Subdivision Map will be extended by the same amount of time as the delay caused by Cal Trans.
City shall process the completed applications; however,the Parties acknowledge that pursuant to California Environmental Quality Act(CEQA) Mitigation Monitoring Condition Number 13 for the Project,the City cannot approve any permits or other entitlements for the Project until such time as sanitary sewer services are available to serve the new development and the Regional Water Quality Control Board Cease and Desist Order is lifted. The Parties acknowledge that the City is required to take action on completed development applications within state-mandated deadlines under the California Permit Streamlining Act, and state law does not permit applicants to waive the 4 K.1.d
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Permit Streamlining Act deadlines except once for a period not to exceed ninety 90)days upon written agreement of the Developer and the City. The Parties further acknowledge,and the Developers agree,that until the Cease and Desist Order is lifted by the Regional Water Quality Control Board and sanitary sewer services are available to serve the Project,the City will disapprove the Developer's completed development applications that are submitted to City if approval of the applications would violate CEQA Mitigation Monitoring Condition Number 13 for the Project.
10. Reimbursement for costs.
Pursuant to Section 16.64.090, Developer shall tender$5,000 as a nonrefundable deposit upon execution of this Agreement. In addition,the Parties have entered into a Reimbursement Agreement with the Developer depositing $15,000 to reimburse City for its costs in processing the Project application, including City costs to prepare and negotiate this Performance Agreement. City shall first make all deductions for City costs from the $5,000 nonrefundable deposit before making any deductions from the$15,000 deposit.
11. Issuance of building permits.
Nothing in this agreement authorizes the City's issuance of a building permit for the Project until such time as the Regional Water Quality Control Board's Cease and Desist Order is no longer in effect,and the City Council has determined that the wastewater facility can accommodate new development.
The Developer acknowledges and agrees that the City will accept its completed development applications, but the City cannot approve any permits or development entitlements, including a tentative subdivision map application and planned development application, until such time as sanitary sewer services are available to serve the new development and the Regional Water Quality Control Board Cease and Desist Order is lifted.
12. Excusable delay.
Performance by any party of its obligations hereunder, other than for payment of money shall be excused during any period of "Excusable Delay" as hereinafter defined. Excusable Delay shall include delay beyond the reasonable control of the party claiming the delay (and despite the good faith efforts of such party) resulting from (i) acts of God, (ii) civil commotion, (iii) riots, (iv) strikes, (v) damage to work in progress by reason of fire, floods, earthquake or other casualties, (vi) delay caused by restrictions imposed or mandated by other governmental entities, (vii) enactment of conflicting state or federal laws or regulations, (viii)judicial decisions or similar basis for excused performance; or(ix) litigation brought by a third party attacking the validity of this Agreement, any of the approvals, or any permit, ordinance, entitlement or other action necessary for development of the Property or any portion thereof; provided, however, that(1) no 5 K.1.d
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change in the economic circumstances of Developer, or any entity that forms part of Developer, or in the actual or anticipated feasibility or profitability of development of the Property, or any part thereof, shall constitute Excusable Delay; and (2) any party claiming delay shall promptly notify the other party of any delay as soon as possible after the same has been ascertained. While any such Excusable Delay condition exists, City may delay or deny any permit, approval or other entitlement as to which completion or provision of any relevant improvements or benefits have been delayed pursuant to this Section.
13. Default.
A. The Developer's unexcused failure to comply with the buildout schedule under Section 4 herein shall result in the loss of allocations for which no building permit has been issued or for which the building permit has expired.The Planning Commission shall have the authority to recommend revocation of allocations following notice and hearing.
B. If either party defaults in performance of the obligations on its part to be performed under this Agreement, the other party's remedy shall be limited to causes of action for mandamus,declaratory relief, equitable relief or specific performance, but in no case shall either party have the right to seek monetary damages from the other party, except that the City may seek to recover from Developer the amount of any fees not paid in full when due.
14. Notices.
Communication and all notices required to be provided under this Agreement shall be addressed to the parties as follows:
CITY OF HOLLISTER DEVELOPER
City Manager Miller Homes, Inc.
365 Fifth Street 20348 Clay Street
Hollister, CA 93923 Cupertino, CA 95014
Marilyn Ferreira Real Estate, Inc.
P. O. Box 742
Hollister, CA 95024
15. Recordation of Agreement; Conditions of Tentative Map.
Upon execution, the Parties shall record this Agreement with the San Benito County Recorder's office. This Agreement shall be incorporated in its entirety into the conditions of the Tentative Subdivision Map for the Project. 6 K.1.d
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16. Other.
Time is of the essence in the performance of this Agreement and each and every provision hereof. Each party covenants and represents that it is fully authorized to enter into this Agreement and to carry out the obligations provided for herein. This Agreement shall be governed by and construed in accordance with the laws of the State of California. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. This Agreement contains all the representations and the entire agreement and understanding between the parties with respect to the subject matter hereof, and supersedes all prior understandings, agreements (whether written, verbal, implied or otherwise) and communications with respect thereto.
None of the terms hereof shall be amended, waived, or otherwise modified except pursuant to a written instrument duly executed by the parties.
CITY OF HOLLISTER DEVELOPER
By: Douglas Emerson, Mayor Marilyn Ferreira Real Estate, Inc.
President
Secretary
Miller Homes, Inc.
President
Attest: Approved as to Form:
Geri Johnson, City Clerk Stephanie Atigh, City Attorney K.1.d
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Amendment to Performance Agreement
Silver Oaks Senior Community Project).
This amendment to the Performance Agreement is entered into on May 3, 2010,between the City of Hollister("the City")and Marilyn Ferreira Real Estate, Inc.and Miller Homes, Inc. ("the Developer"),individually known as"the Party" and collectively referred to as"the Parties."
1. Amendment to Recitals. The following recitals are added:
On February 4,2008,the Parties entered into a Performance Agreement under Hollister Municipal Code Chapter 16.64.
On July 16,2009,the Hollister Planning Commission approvgd the Developer's application for a Tentative Subdivision Map,Conditional Use Permit and Site and Architectural Permit for the Silver Oaks Project, previously known as the Est3ncia Senior Community Project(hereinafter referred to as"the Projecr).
On March 15,2040,the Developer asked the City Council to amendthe conditions in the Performance Agreement relating to affordable housing.
2. Amendment to.Section 3. Project Description
Section 3 (B)(iii)is hereby replaced in its entirety to read:.
Section 8 of this Agreement provides the affordable housing requirements applicable to the Project"
3. Amendment to Section 4. Build Out
Section 4B is hereby replaced in its entirety to read:
Building permits for all units in.the Project shall be issued no later than December 31,2016."
4. Amendment to Section 6, Impact Fees
Section.5A is hereby replaced in its entirety to read:
Developer shall be responsible to pay all applicable development impact fees and charges adopted by City Council and that are attributable to the Projett. Except for Affordability In-Lieu Fees(hereinafter referred to as In Lieu Fees"), as defined in Section 8 of this Agreement,all development impact fees and charges shall be due and payable at the date of the final 1 K.1.d
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inspection or the date the certfficate of occupancy is issued for each unit, whichever occurs-first. Timing of the payment of In-Lieu fees is addressed in Section 8 herein.
4. Amendment to Section 8. Affordability;in-Lieu Fee
Section 8 is replaced:in its entirety to read:
A. Developer shall be required to either(i)provide and sell forty percent(40%)of the homes in each phase of the Project to Moderate Income households as affordable housing at an
Affordable Price,which price shall be determined afthe time of the sale of the homes,or 0i)pay an.In-Lieu Fee,as defined in this section,for 40%of the homes,at the sole option of Doveloper.
For pumoses of this section,the following definitions shall apply:
Affordable Price"is defined as$220,000 as of 1999,adjusted since 1999 using the Engineering News Record(ENR)
Construction Cost Index(CCI). For illustration purposes,the Affordable Price as of April 2010 is$316,800, The Affordable Price will be established Using the base price of the unit excluding Options and Upgrades.
Base Price"is defined as the lowest advertised price on the most recently available price list for a completed unit of a particular floor plan and architectural style.
Moderate Income"is defined as income levels at or below 120%of the median income of San Benito County for a two-person household,adjusted in accordance with factors adopted and amended from time to time by the United States Department of Housing and Urban Development under the United States Housing Act of 1937.
Options and Upgrades"is defined as features and amenities not included in the Base Price but added to the unit at an additional cost An example of an Option is a home security SYttem. An example of an Upgrade is a higher quality floor covOring.
Developer shall provide City with a list of the features included in the Base Price before the issuance of the first building permit for the Project.
B. If 40%of the homes in each Phase are not sold atan Affordable.
Price,the Developer will pay an In-Lieu Fee for the number of homes by which the Developer did not reach the 40%-
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requirement. For example,if the.40%requirement is deficient by 5 homes in a phase,the Developer will pay an In-Lieu Fee for 5 homes. If the calculation results in a fraction of a home,the Developer will pay a proportional fraction of the fee..
The In-Lieu Fee for each home will be a percentage of the Average Sales Price for each phase as defined below:
1. If the Average Sales Price for a phase is$1:-$100,000 above the Affordable Price,the In-Lieu Fee per home will be$15,000.
2. If the Average Sales Price for a phase is$101,000-
200,000 above the Affordable Price,the In-Lieu Fee per
home will be$30,000.
3. If the Average Sales Price for a phase is$201,000-
300,000 above the Affordable Price,the In-Lieu Fee per
home will be$45,000.
4. If the Average Sales Price for a phase is$3,01,000 or more above the Affordable Price,the In-Lieu Feb per home will be$50,000.
5. Upon sale of 80%of the units in a phase ofthe Project, Developer shalt make a deposit of the In-Lieu.Fees based on the number of units sold and the average. sales price of those•units sold('Deposit . Developer shall pay any
balance of the In-Lieu fees owed for that phase upon sale of 100%of the units in the phase.
6. No units in a subsequent phase of the Project shall be eligible for final inspection or certificate of occupancy unless and until the Developer has made the Deposit for all previous phases of the Project or has met the affordability requirements specified in Section 8 herein.
C. The affordable housing defined herein shall be sold lo Moderate Income Buyers who meet the Project's age requirements as defined in Section 3 herein.
D. No price or income restriction will be placed on the resale of any affordable homes.
E. City will verify income eligibility for Moderate.Income households at no charge to Developer.
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5. All other terms and provisions of the Performance.Agreementdated February4, 2008, shall remain in full force and effect.
CITY OF HOLLISTER DEVELOPER
Marilyn F- reira -al Estate, Inc.
Vi or Gome.z- ayory. President
AT.FEST:
on Johnson,-'Iv Clerk Her Homes, Inc.
APPROVED AS TO FORM:
President
Vt -ta •
Stepha iele Atigh,-City'Atto y
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Annual Housing Report Pursuant to Health and Safety Code §34176.1(f) for FY 2020/21
ATTACHMENT B
CITY OF HOLLISTER HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW AND MODERATE INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2020- 2021 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176.1(f) This City of Hollister Housing Successor Annual Report (Report) has been prepared pursuant to California Health and Safety Code Sections 34176.1(f). This Report summarizes activities during Fiscal Year 2020/21 related to the Low and Moderate Income Housing Asset Fund (LMIHAF). The purpose of this Report is to provide the City Council in its capacity as the Housing Successor to the former City of Hollister Redevelopment Agency an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 3416.1 (Dissolution Law).
The following Report is based upon information prepared by the City of Hollister staff and information contained within the independent financial audit of the Low and Moderate Income Housing Asset Fund for Fiscal year 2020-2021, which is on file with the City Clerk.
This Report conforms with and is organized into Sections 1 through 11 pursuant to Section 34176.1 (f) of the Dissolution Law.
1. Amount Deposits into the Low Moderate Income Housing Fund in FY 2020/21 from loan agreements between the former Hollister Redevelopment Agency and the City of Hollister pursuant to 34919.4 (b) (3) (A) (§34176.1 (f)(1): None.
Deposits of funds to the Low Moderate Income Housing Fund from repayment of loans owed to the Low Moderate Income Housing Fund in FY 2020/21 in order to make payments to the Supplemental Educational Realignment Augmentation Fund from the former Hollister Redevelopment Agency pursuant to 34919.4 (b) (3) (B) (C) (§34176.1 (f)(2): None.
2. Balance of the Low Moderate Income Housing Asset Fund at the end for Fiscal Year 2020/21 and any amounts held for items listed on the Recognized Obligation Payment Schedule (§34176.1 (f)(3):
a. Low Moderate Income Housing Asset Fund Balance: $1,304,496. b. None.
3. Summary of Expenditures from the Low Moderate Income Housing Fund by Category (§34176.1 (f)(4):
Description of Expenditures Amount
1. Monitoring and preservation of long-term affordability covenants
$144,418
2. Homeless Prevention and Rapid Rehousing Services $ 0
3. Housing Development Expenditures $ 0
• Expenditures on Extremely Low Income Rental Units $ 0 • Expenditures on Very Low Income Units $ 0
• Expenditures on Low Income Units $ 0
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Annual Housing Report Pursuant to Health and Safety Code §34176.1(f) for FY 2020/21
ATTACHMENT B
4. Value of Housing Successor assets (§34176.1 (f)(5):
a. Real property: $110,000
b. Loans and grants receivable:
i. Loans with monthly payments $421,921
ii. Estimated value of 168 Forgivable loans and/or loans with deferred payments: $14,818,247. The majority of the deferred loans will not require payment for two or more years.
5. Description of transfers of Low Moderate Income Housing Funds (LMIHAF) to other Housing Successor’s. (§34176.1 (f) (6): The City of Hollister did not make any LMIHAF transfers to other Housing Successor(s) under §34176.1 (c) (2) during the Fiscal Year.
6. Description of any project that received property tax on the Recognized Obligation Payment Schedule during FY 2020/21 (§34176.1 (f) (7): The former City of Hollister Redevelopment Agency entered into an agreement with Hollister Investment Group in 2010 to provide tenant based rental assist to ten very low income senior apartments at the Prospect Villa Senior Apartments, until the end of 2019, in the amount of $50,000 per year. Funds were deposited into the Low Moderate Income Housing Successor Funds from ROPS 2020-21 A and 2020-21 B for rental assistance at the Prospect Villa Senior Apartments. Though the agreement has ended in 2019 the LMIHAF has continued to fund this project with the continued available funding.
Due to COVID-19 staff did not make any changes, but in the next fiscal year staff will need to determine the availability of funding and determine whether to continue the rental assistance agreement.
7. Status of real property acquired by the former RDA (§34176.1 (f)(8):
a. Prior to 2/1/2012: The property at 1191 Sunnyslope Road was developed for transitional housing with assistance from the Low Moderate Income Housing Funds of the former Hollister Redevelopment Agency and continues to be leased to the Emmaus House with rental restrictions for said use. It has come to staff’s attention that the property inadvertently was not transferred from the City of Hollister to the Hollister Redevelopment Agency in 1996. It is possible the property is owned by the City of Hollister and should not be considered a housing asset of the former City of Hollister RDA.
b. After 2/1/2012: Not applicable – none purchased.
8. Description of outstanding obligations for replacement housing pursuant to Health and Safety Code §33413 (§34176.1 (f)(9): Replacement Housing:
According to the draft 2009-2014 Implementation Plan for the former Hollister Redevelopment Agency (RDA), no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. The Hollister RDA was unable to adopt the update to the draft plan in 2011 due to prohibitions in the Dissolution Act and Voluntary Program Act. The draft 2009-2014 and 2005-2009 Implementation Plans did not identify a need for replacement housing and are posted on the City’s website K.1.e
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Annual Housing Report Pursuant to Health and Safety Code §34176.1(f) for FY 2020/21
ATTACHMENT B
at http://hollister.ca.gov/government/city-departments/development- services/successor-agency.
Inclusionary/Production Housing: Not applicable. According to the draft 2009- 2014 Implementation Plan for the former Hollister Redevelopment Agency (RDA), no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The Hollister RDA was unable to adopt the update to the draft plan in 2011 due to prohibitions in the Dissolution Act and Voluntary Program Act.
The draft 2009-2014 and 2005-2009 Implementation Plans are posted on the City’s website at http://hollister.ca.gov/government/city-departments/development- services/successor-agency.
9. Deposits into the Low Moderate Income Housing Funds in FY 2020/21 (§34176.1 (f)(1):
a. The balance of Repayment of loans and interest: $161,392.
10. Cap on Use of Use of LMIHAF for Senior Housing. (§34176.1 (f)(11): Cap applicable in Fiscal Year 2020/2021: Section 34176.1 (b) prohibits using LMIHAF for a senior housing development if the total number of deed-restricted senior rental units in the City of Hollister established by the City, the former RDA and the housing successor over the past ten years exceeds fifty percent (50%) of the aggregate number of units of deed-restricted rental housing assisted. Over the past ten years, 44% of the deed restricted rental units developed or assisted was for seniors. The Housing Successor complies.
Deed Restricted Units Assisted in Hollister 2006 - 2018 Project Name Senior Units Non-Senior Units Total Units Gateway Palms 0 32 32
Vista Meadows 72 0 72
Prospect Villa 10 0 10
Hillview I 0 25 25
Hillview II 0 30 30
Rancho Park Apts. (rehab) 0 54 54
Rustic Garden Apts. (rehab) 0 19 19
Senior Sunrise Apts. 48 0 49
Percent of Total as of 16/17 130 (44%) 160 (55%) 290
12 Excess Surplus Low Moderate Income Housing Asset Fund (LMIHAF) (§34176.1 (f)(12): Potential Surplus – Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the Housing Successor’s preceding four Fiscal Years, whichever is greater. The Excess Surplus relates to a four year calculation beginning with FY 2015/16.
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Annual Housing Report Pursuant to Health and Safety Code §34176.1(f) for FY 2020/21
ATTACHMENT B
FY
2012/13
FY
2013/14
FY
2014/15
FY
2015/16
FY
2016/17
FY
2017/18
Beginning
Balance
($113,589) $2,757,119 $2,550,660 $2,376,181 $2,412,829 $2,413,904 Add:
Deposits
$4,755,682 $ 86,534 $ 89,439 $ 418,099 $101,619 $71,243 Expenditures $1,884,979 $ 292,993 $ 263,917 $ 381,451 $100,544 $1,258,342 Ending
Balance
$2,757,119 $2,550,660 $2,376,182 $2,412,829 $2,413,904 $1,226,805 Surplus $1,757,119 $1,550,660 $1,376,182 $1,412,829 $1,413,904 $226,805
FY
2018/19
FY
2019/20
FY
2020/21
Beginning
Balance
$1,226,805 $1,223,875 $1,287,522
Add:
Deposits
$248,184 $203,436.33 $161,392
Expenditures $251,114 $139,790.11 $144,418
Ending
Balance
$1,223,875 $1,287,522 $1,304,496
Surplus $223,875 $287,522 $304,496
The Housing Successor has had an Excess Surplus since FY 2012/13. If the Hollister Housing Successor does not encumber the excess surplus by the end of FY 2019/20, the excess surplus funds will be transferred to the Community Development Department for expenditure pursuant to the Multi-family Housing Program or the Joe Serna, Jr.
Farmworker Housing Grant Program. The projected surplus by the end of FY 2019/20 could be less than $1,000,000 if annual administrative costs average about $250,000 per year. However, the balance could be higher from repayment of loans and should be monitored in FY 19/20 to assure there is not an excess surplus. Additionally, to expend the excess surplus/fund balance the Housing Successor Agency can seek to submit a request for proposal to fund a future affordable housing project.
13. Inventory of homeownership units assisted by the former City of Hollister Redevelopment Agency, number of units (§34176.1 (f)(13) An inventory of homeownership units is posted on the City of Hollister Housing Successor home page at the following link: http://hollister.ca.gov/government/city- departments/development-services/successor-agency/.
a. Number of units lost to the portfolio after February 12, 2012 and reason for loss.
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Year Unit Lost Reason
2020-21 3 Homeowner(s) repaid loan
b. Funds returned to the Hollister Successor Agency as part of an adopted program that protects the former Hollister Redevelopment Agency’s investment from the Low and Moderate Income Housing Funds. $0
c. Has the Hollister Housing Successor contracted for any outside entity for management of the units? No
14. Compliance of the Hollister housing successor compliance with the Low Moderate and Income Housing Asset Fund expenditure requirements pursuant to §34176.1 (a)(3)(A) for the period 2014-2019.
a. Administrative Cost Cap for monitoring of 5% of the statutory value of housing successor real property, loans and grants or $200,000 in any fiscal year to §34176.1(a)(1) of the amount of the assets is less than $200,000:
Comply - The Housing Successor expended $144,418 for administrative costs in fiscal year 2020/21, which is about 11% of the statutory value of the housing successor real property, loans and grants.
b. Homeless Prevention and Rapid Rehousing Services: Comply - The Housing Successor may expend up to $250,000 per fiscal year for homeless prevention and rapid rehousing services of individual and families who are homeless or would be homeless pursuant to §34176.1(a)(2). The City of Hollister spent $0 on homeless prevention services in Fiscal Year 2020/21, which is less than the limit of $250,000 per fiscal year.
c. Extremely Low Income Rental Housing: Premature - Section 34176.1(a) (3) (B) states that at least 30% of the LMIHAF FY 15/16 fund balance ($765,198) not used for monitoring or homeless prevention and rapid rehousing services must be spent on rental housing for extremely-low income households between the period of 2014 and 2019. In Fiscal Year 2017/18 the Housing Successor Agency approved a loan agreement resolution to commit funds of $1,010,000 for the Sunrise Senior Affordable Apartment Project with CHISPA Housing Inc. The commitment was for the assistance with extremely low-to-low income households, which was completed in the 2019-2020 Fiscal Year.
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16. a. Cap: 20% cap on use of LMIHAF on development of housing affordable to very low and low income households. Premature - Section 34176.1(a) (3) (B) limits the expenditure of the LMIHAF for affordable housing development that is not used for monitoring or homeless prevention and rapid rehousing services to 20% of the LMIHAF ($510,132) for households earning between 60 to 80% of the area median income between the period of 2014 and 2019. This would apply to very-low income and some low income households. The information is not required to be reported until 2019.
15. Fiscal
Year
Admin/
Monitoring
and
Preservation
Homeless
Prevention
Rapid
Rehousing
30%
Extremely
Low
Income
CAP 20%
60-80% of
Area
Median
Income
Unencumbered
Balance
12-13 $ 0 $ 0 $ 0 $ 0 $2,757,119 13-14 $277,814 $ 86,360 $ 0 $ 0 $2,550,660 14-15 $233,488 $ 43,429 $117,000 $ 0 $2,166,743 15-16 $381,451 $ 0 $ 0 $ 0 $2,412,829 16-17 $100,544 $ 0 $ 0 $ 0 $2,413,904 17-18 $258,342 $ 0 $1,010,000 $ 0 $1,226,805 18-19 $251,649 $ 0 $ 0 $ 0 $1,223,875 19-20 139,760.11 $ 0 $ 0 $ 0 $1,448,914 20-21 $144,418 $ 0 $ 0 $ 0 $ 1,304,496 Estimated
Balance
21-22 $200,000 $250,000 $ 0 $510,132 $344,364 K.1.e
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