Subject:     MODIFICATION OF AFFORDABILITY RESTRICTIONS ON THE ALMADEN APARTMENTS PROJECT

 

COUNCIL DISTRICT:  3   

SNI AREA:  WASHINGTON

 

 

RECOMMENDATION

 

The Housing Department recommends that the City Council adopt a resolution:

 

1.      Approving an amendment of the Affordability Restrictions for the Almaden Apartments located at 150, 162, 164, 714 and 722 Duane Street , reducing the number of affordable units by one.

2.      Approving the transfer of one affordable unit from Almaden Apartments to a 14-unit, InnVision-sponsored project located at 96 South Tenth Street.

 

BACKGROUND

 

In September 1994, the City loaned $2,348,271 to First Community Housing (“FCH”) for the development of the Almaden Apartments Project providing 30 units of rental housing affordable to very low- and low-income families.

 

In evaluating the current affordability restrictions recorded on the property, staff has noted that the Almaden Apartments Project has an early version of affordability restrictions.  As such, the affordability restrictions are not written to accomodate the project’s needs by allowing for a non-restricted unit. 

 

ANALYSIS

 

John Stewart Company, as the property manager, manages several FCH properties by employing a single property manager who directs several auxiliary staff.  State law requires that projects with 16 units or more must have a person on site and available for emergency purposes.  In the case of Almaden Apartments, a maintenance person employed by John Stewart Company is available on site, occupies one of the units and is an income-eligible household for purposes of the affordability restrictions.

 

In newer projects, the affordability restrictions typically exempt one or more units to accommodate on-site, non-income eligible property management personnel. 

 

In order to provide FCH and the John Stewart Company the flexibility to engage an over-income property manager, the Housing Department recommends that one unit in the Almaden Apartment Project be designated as a non-restricted unit and that the affordability requirement for that one unit be transferred to the InnVision project located at 96 South Tenth Street.

 

PUBLIC OUTREACH

 

Not applicable.

 

COST IMPLICATIONS

 

Not applicable.

 

COORDINATION

 

The preparation of this report has been coordinated with the Office of the City Attorney.

 

 

LESLYE CORSIGLIA

Acting Director of Housing