DEVONWOOD
100% AFFORDABLE APARTMENTS
LOCATION
• 1535 Devonwood Dr
• Northwest Merced
• Just next door to Walmart
• South of the Lowe’s Shopping
Center
• Infill Opportunity Zone
• On the M1 Bus Line – Stops
every half hour.
DEVONWOOD APARTMENTS
SITE PLAN
DEVONWOOD
APARTMENTS
DENSITY BONUS
• CA Density Bonus Law adopted in 1976
• Intended to address CA growing affordable
housing needs
• Law amended several times
• The City originally adopted the Density Bonus
Ordinance in 1993
• Amended several times, most recently in 2023
to remain in agreement with state law
• A project that meets the requirements of state
law for providing affordable housing is allowed
an increase in density “by right.”
• Amount of the density bonus is determined
based on % of affordable housing units provided
at each income level.
• Increase in density may exceed what is allowed
by the GP & Zoning designations for site.
• For projects providing 100% affordable housing,
within 1/2 mile of a major transit stop, there are
no restrictions on density.
• The City may require an agreement to
memorialize affordability component or other
incentives to assist project
5 If a project provides low-income housing and meets the requirements of the Density Bonus Law, the City is required to provide one or more “concessions” or “incentives” to a project that qualifies for a Density Bonus. 100% AFFORDABLE UNITS
Projects that provide 100% affordable units (other than the manager’s unit) that are restricted to very low-, low- and moderate-income residents and are within one-half mile of a transit stop, are eligible for the following:
• Four Concessions/Incentives
• Unrestricted Max Density
• A height increase of up to an additional 3 stories or 33 ft. • Relief from parking requirements
REQUIRED TO GRANT CONCESSIONS & INCENTIVES
The City is required to grant the concession
or incentive proposed, unless it finds one of
the following:
• No identifiable & actual cost reductions; or,
• Public health or safety problem; or,
• Environmental problem; or,
• Harm historical property; or,
• Unlawful
The City has the burden of proof in the event it denies a requested concession. Financial incentives, fee waivers, and reductions in dedication requirements may be, but are not required to be granted by the City
Requested Concessions:
• Relief from Providing Outdoor Private
Space
• Allow Roof-Mounted Mechanical
Equipment
• Reduction in Parking requirements
(200 parking spaces)
RESOLUTION IN SUPPORT
• Developer - proven track record in Merced – The Retreat • Partnership between The Richmond Group and the local
Central Valley Coalition for Affordable Housing
• City - funding commitment of $6.5 M in 2022
• Cost increase & the City has a need to liquidate CDBG Funds • Funding to assist with Acquisition of land and development of the 100% Affordable Apartment Complex
• 55 Year Affordability Covenants
• 17 Units Reserved for 30% of AMI
• All Units for those at or under 80% - Merced AMI
FINANCIAL ASSISTANCE
• ARPA Grant $1,309.538
• PFFP Discount $1,329,318
• Water/Sewer Loan $1,311,592
• CHDO HOME LOAN $3,845,734
• CDBG Loan $2,375,314
• T otal Assistance $10,171,476
Devonwood Leasing
Office & Club House
COUNCIL REQUESTED TO
ADOPT A MOTION
• CEQA – Categorically Exempt
• Density Bonus – Regulatory Agreement
• Resolution - Approving Various Financing Transactions • ARPA Grant
• PFFP Discount
• Water/Sewer Connection Fee Loan
• CHDO HOME LOAN
• CDBG Loan