Housing Authority Memorandum
TO: HONORABLE HOUSING AUTHORITY MEMBERS DATE: JUNE 13, 2023 FROM: HOUSING AUTHORITY WARD: 7
SUBJECT: RESOLUTION DECLARING HOUSING AUTHORITY-OWNED PROPERTY LOCATED AT 11049 BOGART AVENUE AS EXEMPT SURPLUS PURSUANT TO ASSEMBLY BILL 1486, GOVERNMENT CODE SECTION 54221(f)(1)(F)(i) ISSUE:
Adopt a Resolution declaring Housing Authority-owned property located at 11049 Bogart Avenue as exempt surplus pursuant to Assembly Bill 1486, Government Code Section 54221(f)(1)(F)(i).
RECOMMENDATION:
That the Housing Authority adopt a Resolution declaring Housing Authority-owned property at 11049 Bogart Avenue as exempt surplus pursuant to Assembly Bill 1486, Government Code Section 54221(f)(1)(F)(i).
BACKGROUND:
On June 24, 2008, the Redevelopment Agency acquired property located at 11049 Bogart Avenue with Redevelopment Housing Set-Aside funds. On September 11, 2012, the Department of Finance approved transferring 11 properties to the Housing Authority of the City of Riverside, which included 11049 Bogart Avenue (Property).
On March 14, 2019, the Housing Authority received an over-the-counter application from Neighborhood Partnership Housing Services (NPHS) to build 15 tiny cottages plus a small office building on the Property in the La Sierra Neighborhood; a community that would provide housing for chronically homeless individuals coupled with case management. Upon consultation with the Planning Division, the proposed community was expanded to 23 units (22 affordable and one unrestricted manager’s unit – Sunrise at Bogart).
On August 6, 2019, the Housing Authority adopted a Resolution to support the submission of a Multifamily Housing Program funding application to the State for the Sunrise at Bogart and an Option to Purchase Agreement for the development of project. On December 17, 2019, the Housing Authority approved a First Amendment to the Option Agreement to extend the term for 90 days to facilitate an application to the State Multifamily Housing Program.
On January 6, 2021, the Housing Authority entered into a Disposition and Development Agreement with NPHS to sell the property for $1 for the development of Sunrise at Bogart. NPHS has been awarded the following funding sources for the Project.
State No Place Like Home: $1,148,527
Housing Authority of the County of Riverside: 11 Section 8 Project Based Vouchers City HOME Investment Partnerships (HOME) Program: $500,000 County of Riverside Homeless Housing, Assistance and Prevention: $800,000 Congressional Allocation: $3 million
DISCUSSION:
California Assembly Bill 1486 Surplus Land (AB 1486) was enacted on October 19, 2019. This bill required in part, that any local agency when disposing of surplus land, offer it first for sale or lease for the purpose of developing low- to moderate-income housing. The bill also contained a provision that if a property was under a disposition agreement by December 31, 2020, and the disposition was completed by December 31, 2022, it would not be subject to AB 1486 and its requirements regarding the property status as surplus land.
Since the Housing Authority entered into an Option Agreement with NPHS prior to December 31, 2020, the property was exempt from AB 1486.
Due to delays with clearing the property’s title, the Property was not disposed of before the disposition deadline of December 31, 2022. As a result, the Housing Authority must comply with AB 1486 requirements.
Since 11049 Bogart Avenue will be developed with 100% affordable housing units, the Housing Authority can declare the property as exempt surplus land. A draft Resolution was sent to the California Department of Housing and Community Development (HCD) for review, and was conceptually approved.
If the Housing Authority Board adopts the attached Resolution declaring the property as exempt surplus, staff will put out to an open, competitive bid by the Housing Authority, in compliance with the requirements of Government Code Section 54221(f)(1)(F).
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 2 – Community Well-Being and Goal 2.1 - Facilitate the development of a quality and diverse housing supply that is available and affordable to a wide range of income levels.
The project aligns with each of the Cross-Cutting Threads as follows:
Community Trust – The City of Riverside has identified the need for affordable housing as a priority need in the City’s Housing Element process. The Housing Element outreach process gathered information from specific focus groups and interviews with various organizations and service providers in the housing and community development field, as well as residents of the city.
Equity – The affordable housing development will ensure that all eligible persons receive equitable access to service and are served with dignity, respect, and compassion regardless of the circumstances, ability, or identity.
Fiscal Responsibility – There is no fiscal impact to the City General Fund associated with this item. The affordable housing development will utilize a combination of state and federal funds.
Innovation – This item will allow the Housing Authority to capitalize on new and changing funding sources in partnership with state programs to meet ongoing and changing needs of low-income members of the community.
Sustainability & Resiliency – This item promotes a sustainable community and economic development and projects to encourage community engagement and resiliency.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Michelle Davis, Housing Authority Manager
Certified as to
availability of funds: Edward Enriquez, Authority Treasurer Approved by: Mike Futrell, Executive Director
Approved as to form: Phaedra A. Norton, Authority General Counsel Attachment: Resolution
Housing Authority – Resolution Declaring 11049 Bogart Avenue as Exempt Surplus ● Page 2