Housing Successor Agency
MEETING DATE: 11/9/2016
TITLE:
Title
Extension to Exclusive Right to Negotiate with Riverside Housing Development Corporation on Housing Successor Agency Owned Parcels.
End
FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council, acting as the Housing Successor Agency, authorize the City Manager to execute a 6-month extension of the Exclusive Right to Negotiate with the Riverside Housing Development Corporation for twelve affordable housing in-fill parcels.
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BACKGROUND:
The City, in its capacity as the Housing Successor to the former Cathedral City Redevelopment Agency, currently owns 92 parcels, one of which is developed with a vacant duplex and 8 that are under disposition and development agreements. Of the parcels not under contract, 40 are large enough to provide development opportunity for other than a single-family in-fill. Several of these, however, are raw desert lacking infrastructure and affordable development of these parcels is unlikely in the foreseeable future unless another sustainable source of funding for affordable housing is identified.
Even though redevelopment agencies have been disbanded as a result of State legislature, redevelopment affordable housing obligations continue to exist and, in fact, more stringent requirements have been adopted. This presents a significant challenge to cities in that on-going redevelopment associated affordable housing funding is no longer available. As such, the City finds that its primary source of assistance in the development of affordable housing is its real property assets.
DISCUSSION:
On March 23, 2016, the City Council authorized execution of an Exclusive Right to Negotiate (ERN) with Riverside Housing Development Corporation (RHDC) relative to nineteen housing parcels. RHDC is a non-profit affordable housing developer located in Riverside, California that successfully administered our rehabilitation programs beginning in FY 2007-08 through the demise of redevelopment and who also has extensive development experience in other jurisdictions which tax-credit multi-family projects, historic residential rehabilitation and single-family affordable development.
During the initial time frame of this ERN, RHDC was to conduct its due diligence on these nineteen parcels as to feasibility of affordable housing development on the subject parcels. RHDC has completed its initial studies and has determined that affordable housing development may be feasible in the immediate time frame without the requirement of substantial additional cash assistance on eleven of the parcels assuming certain easement issues discovered through the due diligence process can be cleared. As such, additional time is necessary to further explore these issues and to develop an all-encompassing, inter-related development financial feasibility plan. As such, staff recommends that a six-month time extension be granted to the ERN with RHDC relative to a total of twelve parcels. The twelve vacant parcels include:
APN: 675-271-036 Landau Blvd
APN: 675-271-037 Landau Blvd
APN: 675-271-040 Landau Blvd
APN: 675-271-041 Landau Blvd
APN: 675-271-042 Landau Blvd
APN: 680-251-055 Cathedral Canyon Drive
APN: 680-252-022 Navajo Trail
APN: 680-301-001 Wishing Well Trail
APN: 680-301-002 Wishing Well Trail
APN: 680-302-021 Wishing Well Trail
APN: 680-421-031 Shifting Sands Trail
APN: 680-432-011 Sky Blue Water Trail
Entering or extending an Exclusive Right to Negotiate does not commit the City and/or the Housing Successor Agency to anything beyond assuring RHDC that while they are working with the City to clear title issues, the City will not sell or commit the properties to any other developer. If collectively we are successful in these efforts, a comprehensive financing plan will be prepared and a Disposition and Development Agreement will be drafted and be brought back to the Council for consideration at a future public hearing.
FISCAL IMPACT:
There is no fiscal impact associated with a six-month extension to the Exclusive Negotiating Agreement with the Riverside Housing Development Corporation other than costs associated with further investigating and potentially clearing title issues on two of the involved parcels.
ATTACHMENTS:
None