Riverside City Council
September 1, 2026

8/20/2026
1 RiversideCA.gov1
RiversideCA.gov
Housing Authority Board September 1, 20262882 Mission Inn AvenueDisposition and Development Agreement Housing and Human Services RiversideCA.gov2
HOUSING AUTHORITY DEVELOPMENT SITE•Property: 2882 Mission Inn Avenue, APN 211-131-001•Size: 9,900 sq. ft. Public Works street dedication will reduce site to approximately 7,000 sq. ft. 1 2
8/20/2026
2 RiversideCA.gov3
•2006: Former Redevelopment Agency acquired 2731-2871 University Avenue (Successor Agency Property) –Seven contiguous parcels of vacant land consisting of 1.9 acres•2008: Former Redevelopment Agency acquired 2882 Mission Inn Avenue, (Housing Authority Property) –0.22 acres, former single-family dwelling was destroyed by fire and demolishedPROPERTY BACKGROUND RiversideCA.gov4
•July 2019: Countywide Oversight Board approved a Purchase and Development Agreement with Grapevine Economic Development Fund, Inc.•Proposed concept: mixed-use retail and multifamily housing.•December 2019: Escrow was canceled after the required security deposit was not submitted.•April 2022: Economic Development, Placemaking and Branding/Marketing Committee reviewed Grapevine’s revised proposal.•Committee unanimously authorized staff to negotiate disposition and development with Grapevine.PRIOR DEVELOPMENT EFFORTS3 4 8/20/2026
3 RiversideCA.gov5
•October 2019: AB 1486 expanded the Surplus Land Act (SLA) to include successor agency and housing authority land.•April 2020: Successor Agency declared the University Avenue parcels surplus.•May 2020: Initial 60-day Notice of Availability (NOA) issued.•NOA required at least 25% of proposed residential units to be affordable to lower-income households, subject to applicable requirements.•No interested buyers responded by the NOA deadline.•May 2023: HCD acknowledged compliance with applicable AB 1486/SLA requirements for the proposed disposition.SURPLUS LAND ACT COMPLIANCE RiversideCA.gov6
•July 2021: Successor Agency issued an RFP for development of the University Avenue property.•RFP required 15% of residential units to be affordable.•October 2021: Five proposals were received and evaluated.•Grapevine Development, LLC was selected as the preferred developer.•Proposed overall project: 64 residential units within a mixed-use development.•10 affordable unitsRFP AND SELECTED DEVELOPMENT5 6 8/20/2026
4 RiversideCA.gov7
Grapevine–Proposed Site Design
RiversideCA.gov8
•2882 Mission Inn Avenue will be conveyed to Grapevine pursuant to the DDA for $1•Housing Authority land write-down is $245,860.76 based on recent comparable property sales–Land write-down is intended to be recognized as HOME Investment Partnerships Program (HOME) match.•10 affordable units will be developed on the Housing Authority Property•2 units restricted to households at or below 50% AMI•8 units restricted to households at or below 60% AMI•Affordability will be secured through recorded Regulatory Agreement for 55 yearsPROPOSED AFFORDABLE HOUSING COMPONENT7 8 8/20/2026
5 RiversideCA.gov9
SOURCES AND USESAmountSource of Funds$1,858,000Private Permanent Loan$2,264,000Low Income Housing Tax Credit Equity$900,000HOME Investment Partnerships$250,000Permanent Local Housing Allocation - City of Riverside allocation $250,000Deferred Developer Fee$178,364Sponsor Equity - Grapevine Development, LLC$5,700,365TOTAL SOURCESCostUses$998,376Predevelopment Costs$3,040,907Construction Costs$1,120,140Soft and Carrying Costs$540,942Developer Fee$5,700,365TOTAL PROJECT COST RiversideCA.gov10
•January 6, 2026: Successor Agency approved the separate Purchase, Sale, and Development Agreement for the University Avenue property.•January 15, 2026: Countywide Oversight Board approved the University Avenue agreement.•Current action: City Council consideration of the DDA for 2882 Mission Inn Avenue.•Purpose: convey Housing Authority property for $1 and establish requirements for the 10 affordable units.CURRENT AGREEMENT AND APPROVALS9 10 8/20/2026
6 RiversideCA.gov11
That the Housing Authority Board: 1. Conduct a public hearing pursuant to California Health and Safety Code Section 34312.3 regarding the proposed conveyance of 2882 Mission Inn Avenue to Grapevine Development, LLC for $1; 2. Approve a Disposition and Development Agreement with Grapevine Development, LLC for the sale of Housing Authority property located at 2882 Mission Inn Avenue for $1 to facilitate the development of a 10-unit affordable housing project; and 3. Authorize the Executive Director, or his designee, to execute the Disposition and Development Agreement with Grapevine Development, LLC, including making minor and non-substantive changes. RECOMMENDATIONS11