REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:David Mann, Acting City Attorney
Date:August 12, 2025
Subject:Section 8 Project-Based Voucher Program Agreement to Enter into a Housing Assistance Payments (AHAP) Contract for New Construction; and Section 8 Project-Based Voucher Program Housing Assistance Payments Contract – New Construction Part I and II between City of Lake Elsinore and the Housing Authority of the County of Riverside for the Mary McDonald Riley Street Project
Recommendation
1. Approve the attached form of the Section 8 Project-Based Voucher Program Agreement to Enter into a Housing Assistance Payments Contract for New Construction by and between the City of Lake Elsinore, a municipal corporation, and the Housing Authority of the County of Riverside (AHAP Contract) for Mary McDonald Riley Street Project located in the City of Lake Elsinore;
2. Approve the attached form of the Section 8 Project-Based Voucher Program Housing Assistance Payments Contract - New Construction or Rehabilitation Part 1 and 2 of HAP Contract (HAP Contract); and
3. Authorize the City Manager or designee, to execute an AHAP Contract and a HAP Contract, each substantially conforming in form and substance to the attached AHAP Contract and HAP Contract, subject to approval as to form by the City Attorney; and to take all necessary steps to implement the AHAP Contract and HAP Contract, including, but not limited to, signing subsequent necessary and relevant documents, subject to approval as to form by City Attorney.
Mary McDonald Riley Street Project Contract Approvals
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Background
The Housing Authority of the County of Riverside (HACR) awarded City of Lake Elsinore, a general law city and incorporated municipality (City), 15 Housing Choice Voucher Program (HCVP) Project Based Vouchers (PBVs) for the Mary McDonald Riley Street Project, formerly the Riley Senior Apartments (Proposed Project).
The PBVs were awarded pursuant to a competitive Request for Proposal released by the HACR pursuant to Section 21.3 of the HACR’s Administrative Plan for the HCVP and in compliance with 24 CFR 983.51 on June 2, 2023 (RFP No. 2023-110).
The City has taken the lead on developing a 15 affordable unit rental project for seniors situated on approximately 0.53 acres of City-owned land located at 200 N. Riley Street, in the City of Lake Elsinore, also identified as Assessor’s Parcel Number 374-162-063 (Property).
Pursuant to the National Environmental Policy Act (NEPA), on July 9, 2024 (Minute Order 3.12), the Riverside County Board of Supervisors adopted the Environmental Assessment prepared by the County of Riverside Housing and Workforce Solutions (HWS) as the Responsible Entity which found that the proposed project would not have a significant effect on the environment.
The Board of Commissioners of the Housing Authority of the County of Riverside approved both agreements at its July 29th meeting.
Discussion
The Proposed Project will provide a total of 16 one-bedroom apartment units, including a resident manager’s unit. The rental units will be reserved for participants who are a part of the HACR Section 8 Housing Choice Voucher Program waitlist at, or below, 30% of the area median income for the County of Riverside. The County’s Housing Authority has agreed to enter into an Agreement to Enter Into Housing Assistance Payments (AHAP) with the City. The PBVs have an estimated value of $6,886,800 over the 20-year term of the agreement and may be extended for an additional 20 years.
On-site amenities will include a BBQ and picnic area, garden area, and the Project’s namesake– the Mary McDonald Gazebo located on the northeast corner of Heald Avenue and Riley Street.
Additionally, the Proposed Project is strategically located in the City’s downtown area which provides opportunities for shared resources and services, such as the Lake Elsinore Senior Activity Center, Lake Elsinore River Walk, and Lake Community Center.
The rental assistance that the PBVs are providing the Proposed Project will have a positive impact on the residents to stabilize housing and operation of the new construction housing complex in addition to providing affordable housing to the community.
Fiscal Impact
No additional fiscal impact.
Mary McDonald Riley Street Project Contract Approvals
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Attachments
Attachment 1 - HAP and AHAP Contracts
City Attorney’s Office