Huntington Beach City Council and Housing Authority
Future Development of 17642 Beach Blvd.
June 20, 2023
Overview
History of Redevelopment and Dissolution
Site Acquisition
Current Status
Development Concepts
Alternative Option
Conclusion
Questions
Purpose of Community Redevelopment Act
How are redevelopment activities funded?
Tax Increment Financing (TIF)
Housing Set Aside
20% of TIF must be used for affordable housing
History - Redevelopment
History - Dissolution
Dissolution of redevelopment
Successor Agency
Recognized Obligation Payment Schedule (ROPS)
Housing Successor
Low Moderate Income Housing Asset Fund (LMIHAF)
Annual Report – Excess Surplus Test
History – Housing Successor
HB Housing Authority designated as Housing Successor
Large Deposit (in excess of $6.5M) in FY 29/20 would generate “Excess Surplus” in next Annual Report Encumber funds within next three fiscal years; or
Transfer amount of “Excess Surplus” to another qualified entity for a qualified project; or Transfer amount of “Excess Surplus” to Department of Housing and Community Development Opportunity to acquire property became available to resolve “Excess Surplus” situation
Site Acquisition
August 2020 & January 2021 – Project Site Acquired
December 2020 – Navigation Center Opened
June 2022 – Exclusive Negotiations Agreement (ENA) with Jamboree Housing Corporation Approved
Current Status
On June 7, 2022, the Housing Authority Board Members authorized the Executive Director to execute an Exclusive Negotiations Agreement (the “Agreement”) with Jamboree Housing to explore development of the Site for a multi-use Healing Center development.
On December 20, 2022, the City Council tabled a motion to authorize the Executive Director to Sign a Letter of Support for Jamboree Housing Corporation’s application for grant funds from the California Departments of Health Care Services and Social Services through the Behavioral Health Continuum Infrastructure and the Community Care Expansion Program.
On May 9, 2023, City Council members toured two permanent supportive housing sites in Anaheim, Rockwood Apartments and Finamore Place, both operated by Jamboree Housing.
Development Concepts
Healing Center
Develop a facility consisting of a Navigation Center, sobering center, facilities for support services, and a combination of transitional, permanent supportive, and affordable housing.
Pathways Project
Develop a multi-use facility, consisting of a Navigation Center and permanent supportive housing.
Housing Only
Develop only permanent supportive and /or affordable housing options and identify an alternate location for a Navigation Center.
Navigation Center Only
Develop a permanent Navigation Center and reimburse the LMIHAF account.
Alternative Option
As an alternative, the City Council could choose to not develop the Site for any of the above options; however, long-term use of the Site for anything other than a qualifying affordable housing development would require repayment of the LMIHAF account, which would trigger excess surplus for the Housing Authority.
As outlined in this staff report, a finding of excess surplus would require the Housing Authority to encumber or transfer the funds within three fiscal years.
Conclusion
At this time, selection of one of the above proposed concepts would not commit the City to any development of the property, rather it would provide guidance to Jamboree Housing, allowing them to refine the concepts and identify funding sources for the development.
At a future date, proposals will be brought before the Housing Authority Board for consideration, along with project details including concept design, operations plan, estimated total project costs for construction, projected costs for operation, sources of funding (including any Housing Authority or City contributions), developer’s responsibilities, etc.