December 3, 2024
Richmond Housing Authority (RHA)
Economic Development
DATE: December 3, 2024
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM:
Nannette Beacham, Director of Economic Development
Antoinette Terrell, RHA Executive Director
Gabino Arredondo, Project Manager
Subject:
Exempt Surplus Land Designation for the Nevin Plaza II
Senior Affordable Housing Project
FINANCIAL IMPACT: The determination that the property is exempt surplus land has no financial impact. Disposition of the land for development of the Nevin Plaza II will reduce Richmond
Housing Authority (RHA) holding costs for the vacant
property. The ground lease is proposed to provide for
nominal annual rent with the possibility of a share of
residual receipts/surplus cash flow payable to RHA.
PREVIOUS COUNCIL
ACTION:
December 15, 2020
STATEMENT OF THE
ISSUE:
For RHA and EAH Housing to proceed on the Nevin
Plaza II affordable housing project the RHA Board of
Commissioners needs to comply with the California
Surplus Lands Act process. By approving the proposed
resolution, the Commission will determine and declare
the Property to be exempt surplus land under
Government Code Section 54221(f)(1)(F) to be used to
provide housing affordable to people and families of low- income.
AGENDA
REPORT
December 3, 2024
RECOMMENDED ACTION: ADOPT a resolution determining and declaring land owned by the Richmond Housing Authority to be Exempt
Surplus Land pursuant to Government Code Section
54221(f)(1)(F). The land (APN 515-261-014-2) will be
ground leased for development of the Nevin Plaza Phase
II affordable senior housing project – Richmond Housing Authority (Antoinette Terrell 510-620-6784/Nannette
Beacham 621-1306).
DISCUSSION:
Nevin Plaza II
Richmond Housing Authority (RHA) and EAH Housing entered into a Master Development Agreement dated December 15, 2020, for the rehabilitation (Nevin Plaza I) and new construction (Nevin Plaza II) of affordable housing units to serve the senior population. The Nevin Plaza II development is the new construction component of the two-phased senior affordable housing development, behind the existing Nevin Plaza Phase I rehabilitation development set to be completed in February 2025 (2400 Nevin Ave, 7 Story, 142 Units). Nevin Plaza II will be located on the vacant lot immediately adjacent to Nevin Plaza Phase I. The selected development team, EAH Housing, over the last 3 months has advanced their engagement with the RHA team to draft and finalize all the agreements to proceed with the second phase Nevin Plaza II entitlements process to be prepared for future funding opportunities.
For the Nevin Plaza II project, the EAH Housing team has proposed changes to the unit mix to maximize the number of affordable units while minimizing overall project development costs. The new program and design for Nevin Plaza II is a 76-unit, 5-story building, containing nineteen (19) studios, fifty-six (56) one-bedroom units, and one (1) two-bedroom manager’s unit. The reason for increasing the number of studio and one- bedroom units and not including any two-bedroom units is to maximize the number of affordable units within a building height that minimizes the overall development cost that financing needs to be secured for. Nevin Plaza II will provide permanent affordable housing, with a range of affordability including eight (8) low income (60% AMI and below), thirty-one (31) very low income (50% AMI and below), and thirty-six (36) extremely low-income units (30% AMI and below).
Surplus Lands Act
To proceed to complete the agreements and begin the entitlement process the RHA needs to comply with the CA Surplus Lands Act. The Surplus Land Act (Government Code Section 54220 et. seq.) was enacted to promote affordable housing development on unused or underutilized public land throughout the State to respond to the affordable housing crisis, and now requires public agencies, including housing authorities, to follow
December 3, 2024
certain procedures to dispose of “surplus land” or declare land to be “exempt surplus land” at a regular public meeting prior to disposition.
Pursuant to Government Code Section 54221(f)(1)(F), surplus land will qualify as “exempt surplus land” if it will be subject to a recorded restriction that runs with the land and is enforceable against successor in interest, and that requires the land to be developed for housing in which 100% of the residential units will be restricted for low- or moderate- income households, with at least 75% of the units restricted for 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, with the rents not higher than 20% below the median market rents for the neighborhood in which the site is located. The Nevin Plaza II Lease Development and Disposition Agreement (LDDA), the Ground Lease, and the Regulatory Agreement will require the Property to be developed for residential uses consistent with the affordability restrictions set forth in Government Code Section 54221(f)(1(F).
By approving the resolution, the Commission determines and affirms that the Property will be used to provide affordable housing to people and families of low-income, that this use is in the Commission’s best interests, and that development of the Property in accordance with the requirements of the LDDA, the Ground Lease, and the Regulatory Agreement will satisfy the requirements of Government Code Section 54221(f)(1)(F).
Consistent with the requirements set forth in the LDDA, the Ground Lease, and the Regulatory Agreement, the Property will be developed for housing consisting of approximately seventy-six (76) residential units of which all except the manager’s unit will be restricted for occupancy at affordable rents to households whose incomes are not greater than 60% of the area median income. The affordability restrictions will be set forth in both the Ground Lease and in the Regulatory Agreement that will be recorded against the Property in the official records of Contra Costa County. The Regulatory Agreement will be binding upon successors in interest and will require compliance with the foregoing rent and household income restrictions for a term of not less than 55 years. Based upon the foregoing, the Commission may determine and declare the Property to be exempt surplus land under Government Code Section 54221(f)(1)(F).
DOCUMENTS ATTACHED:
Attachment 1 – Resolution