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Home My WebLink About2010/11/02 Item 4CITY COUNCIL & REDEVELOPMENT AGENCY ~~ AGENDA STATEMENT ^';_. `try. CITY OF -- ~- - CHULA VISTA NOVEMBER 2, 2010, Item ITEM TITLE: JOINT RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING THE SHORT LIST OF AFFORDABLE HOUSING DEV LOPERS SUBMITTED BY: ASSISTANT CITY MANAGE}DEVELOPMENT SERVICES DIRECTOR REVIEWED BY: CITY MANAGER 4/STHS VOTE: YES ~ NO SUMMARY The City and Redevelopment Agency are looking to certify a short list of affordable housing developers to work collaboratively with to identify appropriate affordable housing opportunities. The City/Agency expect the selected team to work diligently with City staff to secure an appropriate site, work with the community to design acost-effective, energy-efficient, affordable housing development, and then obtain financing to develop said project. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council approve the Resolution. BOARDS/COMMISSION RECOMMENDATION On October 14, 2010, the Chula Vista Redevelopment Corporation (CVRC) recommended that the Redevelopment Agency certify the short list. DISCUSSION Strategy Normally, affordable housing developers seek site opportunities and then approach the local jurisdiction to see if the site is desirable for an affordable development and whether or not 4-1 NOVEMBER 2, 2010, Item Page 2 of ~ subsidy funding is available. This process results in both the developer and the locale reacting to opportunities. With the current tax credit mazket and credit underwriting reality, our City staff decided to take a proactive approach to finding the right sites, at the best price, for the desired project types. City staff will work with a CVRC subcommittee and the selected developers to examine service gaps and ideal locations to meet the city's most pressing affordable housing needs and contribute to catalyst development concurrently. With dwindling federal and state funding sources, local jurisdictions are pressured to fill the increasing funding gap for affordable housing development. At the same time, those jurisdictions are faced with budget deficits and the State's take away of redevelopment funds. We see this proactive strategy as a way to leverage limited funding to produce the affordable housing that the City needs the most. Process City staff issued a Request for Qualifications (RFQ) on July 16, 2010 actively searching for qualified development teams to secure, design, finance and develop appropriate sites for affordable housing development. The notice was sent to all affordable housing developers that we know of in Southern California. We also sent it to the San Diego Housing Federation who, in turn, sent it out to their membership. The RFQ sought development teams that have a track record of advising agencies on redevelopment policy and implementation, real estate economics, mazket and financial analysis, and affordable housing development, particularly urban inf311 projects. Fourteen proposals at very competitive levels were received. Scoring criteria was listed in the RFQ. There were 12 scoring azeas, rolled up into three main categories: Development Track Record, Operation of Affordable Housing, and Developer Compensation. The rating and selection process was conducted by four people: two staff people in the Housing Division, one person in the Redevelopment Division, and a CVRC Board Member. The review panel met four times. The scoring of proposals was done by group consensus. The recommended short list (Attachment 1) was a difficult decision due to the high quality of the applicants. The developers not selected at this time were also qualified, and aze not precluded from approaching the City/Agency with potential projects. With that said, the short list developers will be working proactively with the City/Agency on priority projects. Once approved, selected teams will be placed on a certified list. City staff will work with the developers on the list to seazch for appropriate sites for potential projects. The certified list will remain valid for a period of up to five years. Next Steps After working with the CVRC subcommittee and the development partners, City staff will return with recommended affordable housing goals and priorities for the next five yeazs. Once the priorities have been set, the development site/s will be selected in collaboration with City staff and the development team. 4-2 3 of i DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There is no fiscal impact of certifying the short list. ONGOING fISCAL IMPACT These developers will most likely be requesting City/Agency funds to subsidize affordable housing projects. The City and Agency have funds specifically available for the creation of affordable housing. City statI working on affordable housing projects are paid for through these funds as well. City staff will work with these developers to identify projects within the resources available for affordable housing. ATTACHMENTS 1. Recommended Short List Prepared by: Amanda Afills, Housing A/anager, Development Services Department, Housing Division 4-3 NOVEMBER 2, 2010, Item tf- Page 4 of Lf ATTACHMENT 1 RECOMMENDED SHORT LIST (Listed Alphabetically) AFFIRMED HOUSING GROUP BRIDGE HOUSING RELATED CALIFORNIA WAKELAND HOUSING & DEVELOPMENT CORPORATION 4-4 RESOLUTTONNO.2010- JOINT RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CERTIFYING A SHORT LIST OF AFFORDABLE HOUSING DEVELOPERS WHEREAS, City staff is proposing a short list of affordable housing developers to collaboratively work with to identify appropriate affordable housing opportunities; and WHEREAS, City staff will work with a CVRC subcommittee and the selected developers to examine service gaps and ideal locations to meet the city's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff believes this is a proactive strategy to leverage limited funding to produce the affordable housing that the City needs the most; and WHEREAS, City staff issued a Request for Qualifications (RFQ) on July 16, 2010 actively searching for qualified development teams to secure, design, finance and develop appropriate sites for affordable housing development; and WHEREAS, The RFQ sought development teams that have a track record of advising agencies on redevelopment policy and implementation, real estate economics, market and financial analysis, and affordable housing development, particularly urban infill projects; and WHEREAS, the RFQ Review Panel reviewed the qualifications and recommends the short list identified in Attachment I to the staff report. NOW THEREFORE BE IT RESOLVED, that the City of Chula Vista City Council and the Redevelopment Agency of the City of Chub Vista certify a short list of affordable housing developers. Presented by: Approved as to form by: James D. Sandoval City Manager .~~.~ Bart C. Miesfeld City Attorney 4-5