HomeMy WebLinkAboutStaff Report 297-06City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL 1
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:JULY 10, 2006 CMR: 297:06
SUBJECT:EDEN HOUSING AFFORDABLE HOUSING PROJECT
STUDY SESSION
BACKGROUND
Since the spring of 2003, Eden Housing, Inc. has been under contract to the City of Palo
Alto to identify potential sites suitable for a higher density affordable housing project.
Given the extremely high land values in Palo Alto, Eden began to focus on the Alma
Street substation site in the summer of 2004 since it was a City-owned property and the
Utility Department was considering relocating the substation to its Quarry Road site to
eliminate redundancy. At a City Council Study Session held on September 27, 2004
Eden analyzed three different housing types, senior housing, SRO housing and workforce
housing for families on the substation site. Although the City Council noted that there
was a great need for workforce housing, senior housing appeared to be the best option at
that time because its limited size was more suited to accommodate smaller senior units
than larger family units.
DISCUSSION
Eden, now partnered with the Community Housing Alliance, Inc. (CHA), an affiliate of
the Community Working Group, has developed a preliminary design for an expanded site
that includes both the substation site and the comer site at 801 Alma Street (currently
Ole’s car repair). CHA has entered into a contract with the property owner to purchase
the comer site. Eden and CHA, working with their architect, Rob Wellington Quigley,
have developed preliminary designs for a family housing project on the expanded site.
The additional parcel makes housing for families a good option for the larger site. The
preliminary design for the proposed building includes four stories of apartments over
underground parking. Access to the parking will be from the existing underground
parking garage at 800 High Street. While the mix of units may change, current plans
show 53 apartment units that include:
CMR: 297:06 Page 1 of 3
¯17 one-bedroom units
¯20 two-bedroom units
¯16 three-bedroom units
The main entrance to the building will face Homer Avenue, and an entry court will
provide a separation between the street and the front door. Common spaces will include
a lobby, a community room, a computer lab, outdoor spaces for children and adults,
management offices, laundry rooms and a possible roof deck. Landscaped areas will
surround the building. There will be 77 parking spaces in the garage. The Floor Area
Ratio of the current proposed plan is 2.26 and the parking ratio is 1.45 parking spaces per
unit. Conceptual plans for this design are attached and will be discussed at the study
session.
The target income levels for future residents are families whose incomes are at 30% to
35% of the Area Median Income (AMI). In Santa Clara County, those incomes would
range from $22,290 to $26,005 for one person, up to $36,930 to $43,085 for a family of
six. Rents will not be more than 30% of income.
The best option for the major funding source for this project is 9% tax credits. Additional
funding will most likely come from a combination of federal, state and local sources.
These include:
¯State of California Housing Trust Fund
¯Santa Clara County
¯Affordable Housing Program (Federal Home Loan Bank)
¯City of Palo Alto
¯Community Housing Alliance, Inc.
Since the project site is located within the SOFA 2 Coordinated Plan Area, this project
will require a Planned Community (PC) rezoning because its FAR exceeds 2.00. Eden
and CHA anticipate preliminary review by the Architectural Review Board this fall with
a submittal for the PC process either later this year or early in 2007; and completion of
the PC process by December 2007.
Eden will begin applying for 9% tax credit funding in March 2008. If tax credits are
granted in June from that application, construction will need to begin in November 2008.
Under this schedule, it is estimated that construction will be completed by late spring
2010 and full occupancy by late summer 2010.
At the study session, Eden and CHA will present the background and overview of the
project and Rob Quigley will present the design concepts for the building and the site.
CMR: 297:06 Page 2 of 3
PREPARED BY:
Q~CAPOR~Advance Planning,,42,0" .M’ .~er (~(~
DEPARTMENT HEAD REVIEW: !x,,[ I, M/ ~ /’,,~,tlx,~,,~~
STEVE EMSLII~ -
Director of Planmng and Community Environment
CITY MANAGER APPROVAL:
City Manager
ATTACHMENTS:
Exhibit 1: Conceptual Site Plans
Exhibit 2: Summary--Estimated Development Cost
Exhibit 3: Affordability Matrix
CMR: 297:06 Page 3 of 3
Exhibit I
CONCEPTUAL PLANS
801 Alma Street
Eden Housing, Inc. + Community Housing Alliance, Inc.
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Exhibit 2
SUMMARY- ESTIMATED
DEVELOPMENT COST
801 Alma Street
Eden Housing, Inc. + Community Housing Alliance, Inc.
PALO ALTO
801 ALMA STREET AFFORDABLE HOUSING
(2 Parcels)
Summary - Estimated Development Cost
Note: No land cost for substation site
Project Information
Total Number of Units
Site Area
Density Ratio (Units per Acre)
FAR (Floor Area Ratio), Not incl. parking
Number of Stories above Grade
Location of Parking
Number of Parking Spaces On-site
No. Prkg Spaces Req’d per SOFA Plan
Commercial Space (included in Total Bldg)
Total Bldg Area (Not including parking)
Unit Mix
SRO "Studio" / 1BA (350 s.f.)
1BR/1BA unit (576 s.f.)
2BR/1BA unit ( 862 s.f.)
3BR/1BA unit ( 1101 s.f.)
Manager Unit (2BR/1BA)
Total Number of Units
DEVELOPMENT BUDGET
50% at 30%, 50% at 35%, has
Perm Financing
FAMILY HOUSING
(2 Parcels)
53 Units
26,250 s.f. (.6 A)
88 Units/Acre
2.26 FAR
4 Stories
1 Level, underground
77 spaces
74 spaces + 7.4 guest prkg
0
59,325
0
17
19
16
1
53 Units
Site Acquisition (Corner site - $381/sf)
Construction Costs (including parking)
Soft Costs
Total Development Costs
Sources of Financing
Tax Credit Equity
Permanent Loan
Developer Contribution
FHLB-AHP
Santa Clara County/GUP and others
Community Housing Alliance
Neighboring Site Contribution
State Housing Trust Fund
City of Palo Alto (Hsg. Fees + matching)
Other Subsidies
Total Sources of Funds
Total Cost per Unit
$
$
$
$
S
$
$
$
$
$
$
$
s
$
4,000,000
13,300,000
6,148,000
23,448,000
10,535,000
481,000
10,000
238,000
1,000,000
500,000
1,000,000
6,000,000
23,448,000
$442,415
Eden Housing, Inc.+ Community Housing Alliance, Inc.
July10,2006
Exhibit 3
AFFORDABILITY MATRIX
801 Alma Street
Eden Housing, Inc. + Community Housing Alliance, Inc.
801 Alma Street - Affordable Housing Development
City Council Study Session
City of Palo Alto
July 10, 2006
Project Affordability
The preliminary design for the proposed building includes 4 stories of apartments over
underground parking. While the precise mix of units may change, current plans show 53
apartment units that include:
¯17 one-bedroom units
¯20 two-bedroom units
¯16 three-bedroom units
Eden Housing, Inc. and the Community Housing Alliance, Inc. plan to target the
apartments to families whose incomes are at 30% to 35% of the Area Median Income
(AMI). In Santa Clara County, those incomes would range from $22,290 to $26,005 for
one person, up to $36,930 to $43,085 for a family of six. Rents will not be more than
30% of income.
Rent per Month per Unit Type
(Based on 2006 Tax Credit requirements)
Income= 30% of
Area Median
Income or Less
Income-- 35% of
Area Median
Income or Less
One Bedroom Two Bedroom Three Bedroom
Unit Unit Unit
$566 $668 $772
$666 $787 $910
Eden Housing, Inc. + Community Housing Alliance, Inc.
Study Session, Palo Alto City Council
July 10, 2006
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