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HomeMy WebLinkAboutAgenda Statement 1980/02/19 Item 08COUNCIL AGENDA STATEMENT ITEM TITLE SUBMITTED BY Item 8 Meeting Date 2/19/80 Resolution 996 9 Approving Amended MOU Between the City of Chula Vista and the San Diego County Housing Authority Community Development Director (4/5ths Vote: Yes No X ) At the February 5, 1980 Council meeting, Community Development was directed to further review the existing Memorandum of Understanding (MOU) with the County, and the revised MOU relative to increasing the number of low-rent public housing units permitted on any one site. W~ heave recommended that the original MOU be revised by increasing the number of units per site from a maximum of six units to a density determined by the City's present zoning ordinances and HUD's regulations. Based on Council's direction, economic considerations and HUD requirements, I have proposed a new amendment to the MOU which incorporates the City's zoning ordinance and limits the number of units that can be built on any one site to 25. Therefore, it is my RECOMMENDATION: That Council amend the MOU with the Housing Authority to read that the number of units permitted on any one site shall not exceed the zoning re- quirements of the City of Chula Vista as detailed in Title 19 of the Chula Vista Municipal Code and that no more than 25 units of low-rent public housing be con- structed on any one site. BOARDS/COMMISSION RECOMMENDATON: Not applicable. DTSf.IISSTON: The present MOU with the County provides the following recommendation as a guideline for the development of public housing: "No more than six units or 12 bedrooms should be allowed per site and no single unit should have more than four bedrooms. No site should be located within 300 feet of any other public housing unit sites. Ten percent of the units constructed should be for the handicapped." This guideline was adopted to allow construction on a scattered-site basis and pre- vent the construction of a large concentration of public housing on any one site. The construction of handicapped units was the result of Council action at the time the MOU was prepared and is not a HUD requirement. Given this guideline, it would take approximately 17 to 20 sites scattered through- out the City to construct 100 units. Since the application was approved by HUD, Community Development, Planning and the County Housing Authority staff have been actively reviewing and soliciting suitable sites with the aid of local realtors. To date, no sites have been secured, nor do I believe that under the current MOU we will be able to secure the necessary sites to construct 100 units. The primary reason for this is the absence of land meeting HUD's development criteria of cost and location. Many of the sites reviewed have major development problems (i.e., extensive grading) making the construction of rental units economically infeasible. At the February 5 meeting, staff stated that it had identified seven sites meeting ~~ HUD's requirements. However, we have been informed that two sites are no longer available and another is too expensive. By amending the MOU, Council will provide staff with additional flexibility to secure suitable sites. The limit of 25 units Continued Form A-113 (Rev. 11/79) Page 2, Item 8 Meeting Date 2/19/80 would not present an undue concentration of low and moderate-income persons and in most cases the sites will be underutilized when compared to City standards. By continuing to operate under the present guidelines, the program is not economically feasible. Under the existing guidelines, small R-3 properties, many with existing structures on them, must be acquired. This has the effect of increasing the per unit cost to a point where it becomes economically infeasible. For example, an 8,000 square foot R-3 parcel which could support three to four units with an asking price of $110,000 has a per unit cost range of $27,500 to $36,600 exclusive of demolition costs and this is only for the land. Prior to Council action on this item, staff and the architect who will be designing the public housing units have prepared a slide presentation depicting public housing developments with a high density. If Council agrees to amend the MOU, the acquisition process can begin. This department will attempt to secure the remaining available sites and will continue to secure other sites scattered throughout the City. If Council decides not to amend the MOU, we recommend that the City withdraw from the public housing program. The consequences of withdrawing from this program could result in remedial action since the City has made little progress in constructing new low-rent housing. Possible HUD actions include: 1. Conditioning the approval of the City Block Grant application. 2. Issuing a series of warnings advising the City of more serious sanctions. 3. Reducing the Block Grant amount to zero. FISCAL IMPACT: The amending of this MOU will not have an impact at this time. However, when the acquisition process begins, Block Grant Section 108 Loan funds will be expended. JTS:as ~11~ y ~~~~" t,~ . City cil of Chula Vista, C:Ji(~rnia Dated ~' / 9 -~_