October 1, 2024, Item #4
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PO RT City of Poway
CITY COUNCIL
October 1, 2024
Honorable Chairman and Members of the Housing Authority Board Julie Procopio, Director of Development Services~
Marie Sanders, Senior Management Analyst
(858) 668-4637 or [email protected]
Adoption of a Resolution of the Poway Housing Authority Board Declaring Certain Real Property Owned by the Authority Located at 12674 Monte Vista Road (APN 275-460- 61-00) as Exempt Surplus Land for Purposes of the California Surplus Land Act The Poway Housing Authority (Authority) owns 2.06 acres of real property located at 12674 Monte Vista Road (Attachment A) in the City of Poway (the Property). The Property was originally acquired by the former Poway Redevelopment Agency (Former RDA) on February 16, 2000, for the development of housing affordable to very low-, low-, and/or moderate-income persons and families.
The Authority subsequently acquired the Property from the Former RDA in its capacity as the housing successor of the Former RDA, consistent with the Dissolution Law. Following a competitive bid process, the Authority's governing board, in August of 2022, selected Wakeland Housing and Development Corporation and Wakeland Monte Vista, LP (Developer), an affiliate of Wakeland, for negotiations of the development of the Property and authorized staff to negotiate an Exclusive Negotiating Rights Agreement (ENRA) with the Developer to explore the concept of developing the Property with a sixty (60) unit multi-family affordable rental housing development serving extremely low-, very low-, and low-income families including adults with developmental disabilities and military veterans and their families.
Before the Authority can finalize the details for the Project and the negotiations with the Developer, the Authority must obtain the California Housing and Community Development's (HCD) approval the Property is "Exempt Surplus Land" under the California Surplus Land Act (SLA) set forth at California Government Code (Government Code) Section 54220 et seq., and specifically pursuant to Government Code Section 54221 (f)(1 )(F).
As such, the Authority must formally make certain findings, determinations, and declarations, as set forth in the proposed Resolution (Attachment B), declaring the Property is "Exempt Surplus Land" under the California Surplus Land Act set forth at California Government Code Section 54220 et seq. and specifically pursuant to Government Code Section 54221 (f)(1 )(F). 1 of 10
October 1, 2024, Item #4
Recommended
Action:
It
is
recommended
the
Housing
Authority
Board
:
1)
Adopt
a
Resolution
declaring
certain
real
property
located
at
12674
Monte
Vista
Road,
Poway,
California
(APN
275-460-61-00)
as
"Exempt
Surplus
Land"
under
the
California
Surplus
Land
Act
pursuant
to
California
Government
Code
Section
54221
(f)(1
)(F);
and
2)
Authorize
the
Executive
Director
or
their
Designee
to
take
all
actions
convenient
and
necessary
to
submit
this
Resolution
to
HCD
to
approve
the
"Exempt
Surplus
Land"
Determination
under
the
California
Surplus
Land
Act
and
specifically
pursuant
to
California
Government
Code
Section
54221
(f)(1
)(F).
Discussion: The
Authority
was
formed
pursuant
to
the
California
Housing
Authorities
Law
(California
Health
and
Safety
Code
(HSC)
Section
34200
et
seq.),
to
provide
decent,
safe,
and
sanitary
housing
in
the
City.
The
Authority
was
also
designated
as
the
housing
successor
to
the
Former
RDA
pursuant
to
the
laws
governing
the
dissolution
of
the
Former
RDA
(Dissolution
Law)
at
HSC
Section
34176.
Upon
dissolution
of
the
Former
RDA,
all
rights,
powers,
duties,
obligations,
and
housing
assets
of
the
Former
RDA
transferred
to
the
Authority,
pursuant
to
the
Dissolution
Law.
The
Authority
acquired
the
Property
on
March
11,
2011,
from
the
Former
RDA
in
its
capacity
as
the
housing
successor
of
the
Former
RDA,
and
is
responsible
for
its
disposition
in
accordance
with
the
California
Community
Redevelopment
Law
(HSC
Section
33000
et
seq.).
The
Property
was
originally
acquired
by
the
Former
RDA
on
February
16,
2000,
using
low-
and
moderate-
income
housing
tax
increment
funds,
for
the
development
of
housing
affordable
to
very
low-,
low-,
and/or
moderate
income
persons
and
families.
Following
a
competitive
bid
process
through
the
Authority's
issuance
of
a
Request
for
Qualifications
and
subsequent
Request
for
Proposals
for
Affordable
Housing
Development
on
Property,
the
Authority's
governing
board,
in
August
of
2022,
selected
the
Developer
for
negotiations
of
the
development
of
the
Property
and
authorized
staff
to
negotiate
the
ENRA.
Negotiations
included
the
concept
of
developing
and
operating
a
60 unit
multi-family
affordable
rental
housing
development
serving
extremely
low-,
very
low-,
and
low-income
families
including
adults
with
developmental
disabilities
and
military
veterans
and
their
families,
excluding
one
(1)
manager's
unit,
together
with
ancillary
facilities
including,
but
not
limited
to,
a
community
building,
outdoor
amenities,
and
subterranean
parking
(collectively,
the
Project).
The
Authority
and
Developer
entered
into
the
ENRA
on
August
17,
2022
. The
ENRA
was
subsequently
amended
by
the
parties
to
provide
additional
time
for
the
parties
to
negotiate
the
agreements
and
entitlements
for
the
Project.
Pursuant
to
the
ENRA,
staff
and
the
Developer
have
been
negotiating
the
proposed
Affordable
Housing
Agreement
(AHA),
together
with
its
Attachments
including,
but
not
limited
to,
a Ground
Lease
and
an
Agreement
Containing
Covenants
with
terms
of
70 years
to
potentially
99 years,
in
which
the
Developer
will
agree
to
restrict
the
Project
in
compliance
with,
among
other
applicable
laws,
the
SLA
set
forth
at
Government
Code
Section
54220
et
seq.,
and
specifically
pursuant
to
Government
Code
Section
54221
(f)(1
)(F)
which
states
in
pertinent
part
as
follows:
2 of
10 "(F)
(i)
Surplus
land
that
is
to
be
developed
for
a
housing
development,
which
may
have
ancillary
commercial
ground
floor
uses,
that
restricts
100
October 1, 2024, Item #4
percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an .... affordable rent, as defined in Section .... 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing, .... and in no event shall the maximum affordable .... rent level be higher than 20 percent below the median market rents .... for the neighborhood in which the site is located.
(ii) The requirements of clause (i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation."
Pursuant to Government Code Section 54221(f)(1)(F) of the SLA, the subject Property qualifies as "Exempt Surplus Land" as the Project will be, by recorded agreement, restricted 100% to serving low , very low-, and extremely low-income persons and families (excluding one [1] manager's unit) for greater than 55 years (which 100% exceeds, and provides greater affordability than, the 75% lower income requirement set forth in Government Code Section 54221 (f)(1 )(F)(i) of the SLA). Additionally, 75% of the residential units will be required by recorded agreement to be rented at an affordable rent, as defined in HSC Section 50053, for at least 55 years. Further, the recorded agreement will include a requirement that in no event will the maximum affordable rent level be higher than 20% below the median market rents for the neighborhood in which the Property is located; and the recorded agreement will run with the land and be enforceable against the ground lessee/developer of the Project and each successor in interest to the Project.
The SLA mandates a statutory process pursuant to which local agencies (including housing authorities) must offer their land that is "surplus land" to affordable housing developers and others, as set forth in the SLA. The SLA, however, also provides a statutory process pursuant to which local agencies may declare certain land to be "Exempt Surplus Land" if the characteristics of that land or the use of that land meets certain criteria, as expressly provided in one of the exemptions set forth in the SLA for "Exempt Surplus Land" currently set forth in Government Code Section 54221 (f)(1 ).
Before the Authority can finalize the details for the Project and the negotiations with the Developer on the proposed AHA and its Attachments, the Authority must first formally make certain findings, determinations, and declarations, as set forth in the proposed Resolution, that the Property is "Exempt Surplus Land" under the SLA and specifically pursuant to Government Code Section 54221 (f)(1 )(F).
After the Authority's approval of the proposed Resolution, the Authority will submit the Resolution together with this Staff Report and cover letter (Attachment C) to HCD seeking agency approval that the Property is "Exempt Surplus Land" under the SLA and specifically pursuant to Government Code Section 54221 (f)(1 )(F).
Environmental Review:
This action of adopting the proposed Resolution is not a "project'' under the California Environmental Quality Act (CEQA) and the CEQA Guidelines.
3 of 10
October 1, 2024, Item #4
Fiscal Impact:
This action of adopting the proposed Resolution will not have a fiscal impact on the Authority.
Attachments:
A. Site Map
B. Resolution of the Housing Authority
C. California Housing and Community Development Cover Letter Reviewed/Approved By:
w~~a~
Assistant City Manager
4 of 10
Reviewed By:
Alan Fenstermacher
City Attorney City Manager
October 1, 2024, Item #4
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62 ATTACHMENT
A
I I I I I I
October 1, 2024, Item #4
RESOLUTION
NO.
H-24-
A
RESOLUTION
OF
THE
CITY
OF
POWAY
HOUSING
AUTHORITY
DECLARING
CERTAIN
REAL
PROPERTY
LOCATED
AT
12674
MONTE
VISTA
ROAD,
POWAY,
CALIFORNIA
(APN
275-460-61-00)
AS
"EXEMPT
SURPLUS
LAND"
UNDER
THE
CALIFORNIA
SURPLUS
LAND
ACT
PURSUANT
TO
CALIFORNIA
GOVERNMENT
CODE
SECTION
54221
(f)(
1 )(F)
WHEREAS,
the
Poway
Housing
Authority
("Authority")
is
a
public
body,
corporate
and
politic,
organized,
and
existing
under
the
California
Housing
Authorities
Law
pursuant
to
California
Health
and
Safety
Code
(HSC)
Section
34200
et
seq
. (Housing
Authorities
Law);
WHEREAS,
the
Authority
is
vested
with
all
powers
and
rights
provided
to
it by
the
Housing
Authorities
Law
including
, but
not
lim
ited
to,
the
powers
to
manage
affordable
housing
assets
in
the
City
of
Poway
(City),
to
develop
or
participate
in
the
development
or
financing
of
rental
housing
projects
within
the
City,
to
make
construction
or
mortgage
loans
to
finance
the
acquisition,
construction,
or
development
of
multi-family
rental
housing
, and
to
dispose
of
real
property
;
WHEREAS,
the
former
Poway
Redevelopment
Agency
purchased
certain
real
property
consisting
of
approximately
2.06 acres,
and
located
at
12674
Monte
Vista
Road,
Poway,
California
(APN
275
-460-61-00)
(the
Property)
using
Redevelopment
Agency
property
tax
increment
funds
held
in
the
Low-
and
Moderate-Income
Housing
Fund
for
the
purpose
of
causing
development
of
the
Property
with
a
project
that
includes
housing
affordable
to
persons
and
families
of
very
low-,
low-
and/or
moderate-income;
WHEREAS
, the
former
Redevelopment
Agency
had
conveyed
to
the
Authority
fee
title
of
the
Property
for
the
purpose
of
increasing,
improving
and
preserving
affordable
housing
for
persons
and
families
of
very
low-,
low-
and/or moderate-income
in
the
City
;
WHEREAS,
the
California
Department
of
Finance,
by
letter
dated
August
31,
2012,
approved
the
Property
as
a
"housing
asset"
of
the
former
Redevelopment
Agency;
WHEREAS,
after
a
competitive
bid
process through
the
Authority's
issuance
of
a
Request
for
Qualifications
for
Affordable
Housing
Development
on
the
Property
(RFQ)
and
a
Request
for
Proposals
for
Affordable
Housing
Development
on
the
Property
(RFP)
, the
Authority
selected
Wakeland
Housing
and
Development
Corporation,
a
California
nonprofit
corporation,
for
negotiations,
and
the
parties
thereafter
entered
into
that
certain
Exclusive
Negotiating
Rights
Agreement
dated
August
17,
2022,
as
subsequently
amended;
WHEREAS,
Wakeland
Monte
Vista,
LP
(Developer)
is
the
proposed
Developer
of
the
Property,
and
an
affiliate
of
Wakeland
Housing
and
Development
Corporation
. The
Developer
proposes
to
finance
(with
a
combination
of
funding
sources)
and
cause
the
development
and
operation
of
the
Property
with
a sixty
(60)
unit
multi-family
affordable
rental
housing
development,
with
units
restricted
for
occupancy
by
low-
, very
low-,
and
extremely
low-income
families
at
affordable
rent
(excluding
one
[1]
manager's
unit)
in
accordance
with
this
Resolution,
the
Housing
Authorities
Law,
the
Redevelopment
Law
and
regulations
applicable
to
the
Low
Income
Housing
Tax
Credits
,
which
development
will
include
units
targeted
to
adults
with
developmental
disabilities
and
units
targeted
to
military
veterans
and
their
families,
together
with
ancillary
6 of10
ATTACHMENT
B
October 1, 2024, Item #4
Resolution
No
. H-24-Page
2 facilities
including,
but
not
limited
to
, a
community
building,
outdoor
amenities,
and
subterranean
parking
(collectively,
the
Project);
WHEREAS,
the
Authority
and
Developer
have
been
negotiating
a
proposed
Affordable
Housing
Agreement,
together
with
its
Attachments
including,
but
not
limited
to,
a
Ground
Lease
and
an
Agreement
Containing
Covenants
with
terms
of
70 years
to
potentially
99 years,
in
which
Developer
will
agree
to
restrict
the
Project
in
compliance
with,
among
other
applicable
laws
, the
California
Surplus
Land
Act
(SLA)
set
forth
at
California
Government
Code
(Government
Code)
Section
54220
et
seq
.,
and
specifically
pursuant
to
Government
Code
Section
54221(f)(1)(F)
which
states
in
pertinent
part
as
follows:
"(F)
(i)
Surplus
land
that
is
to
be
developed
for
a
housing
development,
which
may
have
ancillary
commercial
ground
floor
uses,
that
restricts
100
percent
of
the
residential
units
to
persons
and
families
of
low
or
moderate
income
, with
at
least
75 percent
of
the
residential
units
restricted
to
lower
income
households,
as
defined
in
Section
50079.
5 of
the
Health
and
Safety
Code
, with
an
....
affordable
rent,
as
defined
in
Section
.... 50053
of
the
Health
and
Safety
Code
, for
a
minimum
· of
55 years
for
rental
housing
, ....
and
in
no
event
shall
the
maximum
affordable
. . .. rent
level
be
higher
than
20 percent
below
the
median
market
rents
....
for
the
neighborhood
in
which
the
site
is
located.
(ii)
The
requirements
of
clause
(i)
shall
be
contained
in
a
covenant
or
restriction
recorded
against
the
surplus
land
at
the
time
of
sale
that
shall
run
with
the
land
and
be
enforceable
against
any
owner
who
violates
the
covenant
or
restriction
and
each
successor
in
interest
who
continues
the
violation
."
WHEREAS,
pursuant
to
Government
Code
Section
54221
(f)(1)(F)
of
the
SLA,
the
Project
will
be,
by
recorded
agreement,
restricted
100%
to
serving
low-
, very
low-,
and
extremely
low
income
persons
and
families
for
at
least
55 years
(which
100%
exceeds
, and
provides
greater
affordability
than,
the
75%
lower
income
requirement
set
forth
in
Government
Code
Section
54221
(f)(1)(F)(i)
of
the
SLA)
. Additionally,
75%
of
the
residential
units
will
be
required
by
recorded
agreement
to
be
rented
at
an
affordable
rent,
as
defined
in
California
Health
and
Safety
Code
Section
50053,
for
at
least
55 years.
Further,
the
recorded
agreement
will
include
a
requirement
that
in
no
event
will
the
maximum
affordable
rent
level
be
higher
than
20%
below
the
median
market
rents
for
the
neighborhood
in
which
the
Property
is
located
; and
the
recorded
agreement
will
run
with
the
land
and
be
enforceable
against
the
ground
lessee/developer
of
the
Project
and
each
successor
in
interest
to
the
Project
;
WHEREAS,
based
on
the
foregoing
, the
Property
to
be
developed
with
the
Project
meets
all
of
the
criteria
for
"Exempt
Surplus
Land"
pursuant
to
and
under
Government
Code
Section
54221(f)(1)(F)
of
the
SLA.
Additionally,
the
Property
is
not
located
within
any
of
the
four
designated
areas
described
in
Government
Code
Section
54221
(f)(2)
(i.e
.,
coastal
zones,
on
or
eligible
for
the
National
Register of
Historic
Places,
adjacent
to
a
State
Park,
or
in
the
Lake
Tahoe
region);
WHEREAS
, having
affordable
housing
developed
on
the
Property
with
the
Project
by
Developer
would
meet
the
purposes
of
the
SLA
; and
7 of10
October 1, 2024, Item #4
Resolution No. H-24-
WHEREAS, under the SLA, the Authority desires to declare the Property to be "Exempt Surplus Land" and to submit the declaration to the California Department of Housing and Community Development for approval of the "Exempt Surplus Land" determination.
NOW, THEREFORE, BE IT RESOLVED by the Poway Housing Authority as follows:
SECTION 1: The Poway Housing Authority finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference as a substantive part of this Resolution. •
SECTION 2: The Poway Housing Authority finds, determines, and declares based on substantial evidence in the record, including, but not limited to, the Staff Report which accompanies this Resolution, that the land located at 12674 Monte Vista Road, Poway, California (APN 275-460-61-00) (the Property) is "Exempt Surplus Land" under the California Surplus Land Act set forth at California Government Code (Government Code) Section 54220 et seq., and specifically pursuant to California Government Code Section 54221 (f)(1)(F).
SECTION 3: Poway Housing Authority authorizes the Executive Director or his designee to take all actions convenient and necessary to submit this Resolution to the State of California Department of Housing and Community Development to approve the "Exempt Surplus Land" determination under the California Surplus Land Act and specifically pursuant to California Code Section 54221 (f)(1 )(F).
SECTION 4: This Resolution shall take effect upon the date of its adoption.
PASSED, APPROVED AND ADOPTED by the Poway Housing Authority of the City of Poway, California, at a regular meeting this 1st day of October, 2024 by the following vote, to wit:
AYES:
NOES:
ABSTAINED:
ABSENT:
DI SQUALi Fl ED:
ATTEST:
Carrie Gallagher, CMC, Secretary
Poway Housing Authority
8 of 10
Steve Vaus, Authority Chair
Poway Housing Authority
October 1, 2024, Item #4
STEVE VAUS, Mayor CITY OF POWAY
CA YLIN FRANK, Deputy Mayor
PETER DE HOFF, Councilmember
ANITA EDMONDSON, Councilmember
BRIAN PEPIN, Councilmember
October 2, 2024
To: California Department of Housing and Community Development (HCD) Surplus Lands Portal
RE: POWAY HOUSING AUTHORITY
SUBJECT LAND LOCATED AT: 12674 MONTE VISTA ROAD, POWAY, CA; APN 275-460-61-00 (LAND)
RESOLUTION NO. H-24-___ -DECLARING THE LAND AS "EXEMPT
SURPLUS LAND" UNDER THE CALIFORNIA SURPLUS LAND ACT
PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54221(f)(l)(F) Pursuant to California Government Code (Government Code) Section 54221(6)(1), the Poway Housing Authority (Housing Authority) adopted Resolution H-24-____ on October 1, 2024, whereby the Housing Authority found, determined, and declared the land located at 12674 Monte Vista Road, referenced by Assessor's Parcel Number 275-460-61-00 (Property), to be "Exempt Surplus Land" under the California Surplus Land Act (SLA) set forth at Government Code Section 54220 et seq., and specifically pursuant to Government Code Section 54221 (f)(l )(F), as supported by written findings. The written findings were based, in part, on the attached Resolution H-24-_ (Resolution) and its accompanying Housing Authority Staff Report dated October 1, 2024 (Staff Report), which are both attached hereto and made a part hereof.
The Property qualifies as "Exempt Surplus Land" under the SLA pursuant to Government Code Section 54221(f)(l)(F). As discussed in more detail in the Resolution and Staff Report, the Property will be ground leased to an affordable housing developer for at least 55 years and developed and operated as an affordable housing rental development that restricts the residential units to persons and families of low-, very low-, and extremely low-income (Project), with the exception of one (1) manager's unit serving the Project. Specifically, the Project will consist of a sixty (60) unit multi family affordable rental housing development with units restricted for occupancy by low-, very low and extremely low-income families at affordable rent (excluding the one [1] manager's unit), which development will include units targeted to adults with developmental disabilities and units targeted to military veterans and their families, together with ancillary facilities including, but not limited to, a community building, outdoor amenities, and subterranean parking.
In addition to being a Housing Authority established under the California Housing Authorities Law set forth at California Health and Safety Code Section 34200 et seq., the Housing Authority serves as the housing successor of the former Poway Redevelopment Agency and, as such, became the fee owner of the Property. The Property is required by applicable law to be developed with affordable housing because the Property was originally purchased by the former Poway Redevelopment Agency using low-and moderate-income housing tax increment funds. 9 of 10
City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789 wv.rw. poway.org
ATTACHMENT C
October 1, 2024, Item #4
Based on the details of the Project, the Project to be developed and operated on the Property will achieve an even greater level of affordability than required by the SLA at Government Code Section 54221 (f)(l )(F) in that I 00% of the Project ( excluding one manager's unit) will serve persons and families of low-, very low-, and extremely low-income.
As required by Government Code Section 5422l(f)(l)(F)(i)-(ii), the Housing Authority will record a covenant/restriction agreement against the Project at the time of the ground lease of the Property, which agreement will restrict I 00% of the residential units developed as part of the Project on the Property (with the exception of one [I] manager's unit serving the Project) to persons and families of low or moderate income, with at least 75% of the residential units restricted to lower income households, as defined in Section 50079.5 of the California Health and Safety Code, with an affordable rent, as defined in Section 50053 of the California Health and Safety Code, for a minimum of 55 years with the maximum affordable rent level no higher than 20% below the median market rents for the neighborhood in which the Property is located. This covenant/restriction agreement to be recorded against the Project and will run with the land and be enforceable against the ground lessee/developer of the Project and each successor in interest to the Project.
The Property meets all of the criteria for "Exempt Surplus Land" under the SLA pursuant to Government Code Section 5422l(f)(l)(F). Additionally, the Property is not located within any of the four designated areas described in Government Code Section 54221 (f)(2) (i.e., coastal zones, on or eligible for the National Register of Historic Places, adjacent to a State Park, or in the Lake Tahoe region).
If you have any questions, please contact Marie Sanders, Senior Management Analyst, of the City of Poway, by telephone at (858) 668-4637, or by email at [email protected].
Sincerely,
Enclosures:
Resolution No. H-24-
POWAY HOUSING AUTHORITY
Chris Hazeltine
Executive Director
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Housing Authority Staff Report dated October I, 2024
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