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Home My WebLink About0542.091, " ____ ,_ • __ -.,,_ .... .,.~, .t-~. December 5; 1991 THE HONOPABLE CITY COUNCIL Palo Alto, californi~ 4 REqUEST P.OM THE PALO ALTO ROOSING CO~PORA_'l'ION FOR F'QNDING FOR l'xg ?URCHASE OF 3020-31)38 EMERSP~ STB~ Members of the Council: This report recommends that Counei 1 approve 1) the use of community Development Block Grant (CDBG) funds in th~ amount of $978,700 for the purchase of 3820-3038 Emerson street by the Palo Alto Housing Corporation (PAHC); 2) the use of CnBG funds to pay all costs associated with relocation of some of the tenants, estimated not to exceed $65,000, in order to meet CDBG income eligibility require ments; and 3) the resolution authorizing the e>-:penditure of the funds (Attachment A). :Fu7:u1ing Proposal 0:1 August 1, 1991, PAHe entered into a purchase cor-tract with the owners ot a IO-unit apartment building located at 3020-J038 Emerson street, for a purchase price of $980,000. PUrS"LJ?int to the Rental Housing Acquisition Program {RHAP) guidelines, PAHe applied to the City for a grant of $o617,OO() of city funds for purchase of the Emerson Street property (see Attachment 1, letter dated October 4, 1991). PAHe proposed to cOl7lplete the funding -with a 7 percent interest loan from the California Housing Finance Agency (CHFA). The city has appropriated in excess of ~1 million in CDBG funds over the past 7 years for expend iture on 1m .... and moderate income housing. These accuroulat.ed n landbank" funds, however, no ... exceed HUD requirements for timely expenditure of funds. By funding the entire purchase of this project, the drawdor.m will bring the City into compliance \,lith HUD requireiT~ents, and will provide affordable CMR:542:91 '. housing for 10'10' and moderate inco:::1e individuals. In crder to meet HtTP'S requirene:nts, staff re;:on~men .. js that the C1 ty provide $9/0.000 in COSG funds (equal to the appraised value of the property) I plus an esti:m3.ted $8,700 for points a;"Jd closing costs (see .,;t~ach1Tlent 2, letter dated Nove~ber 6, 1991) ~ The PAHC ',.,ould provide the addi tional $10,000 to cOl':1plete t.he purchasE',. CDBG Program Requi~ __ ~_!:!1._~I;l __ ~ __ §. In conformance ~ith overall city r~quirements for CDBG projects, 70 percent of the units must be occupied by and affordable to CDBG income-eligible tenants. Gene~ally, CDBG incc~e eligibility is defined by HUD as a person making 66 percent of the County median inco~e (the current maximum annual inco~e for a family of four is $33,000). Preliminary surveys indicate this ~ay necessitate the reloc~tior. of at least three of the existing tenants from the complex~ Relocation exp':!f1ses are eligible for co a;.; reimb"ursement. The estimated maximum cost of all relocation activities related to this project is $55,OOO~ The use of CDSG funds is also subject to H~D regulations regarding program income (gross rents charged to tenants less cos~s inciden tal to tt.e generation of income). Program incotle must be returned to the City to b~ added to the city's letter of credit for other CDSG-eligible projects. When staff proposed th,::!t all but $10,000 of the p\.irchase price be funded with CDBG funas, it " .. 'as anticipated that a.ppro~iD',ately $45,000, which had been identified by Ph~C as available for debt service, 'Would be returned to thJ;! City as program income for expendit\:""-e on other CDBG-eligible proje~t$~ P)'.HC staff sa\tl' the availabL .. :..ty of increased CDBr; funding as an opportunity to provide housing to even lO\oler income groups and subsequently proposed rer~t levels SUfficient only to covet.'" operational expenses. The attached pro forrr,a, "",'hich proposes a t'!,ix of units fro!:': very iclN' t"ent.s to near market rate, is a co~prO~i5€ which will allo~ a minimum annual return to the. City cf appt.'"o:x.im.ately $25,000. If Council 'Illishes to torego program incot':1e, direction shGuld be given to staff and PhHC to reduce the projected rent levels. Conve:rsely, if r:ore program income is desired, antiCipated rents could be adjusted upward to yield as much as $45,O{)O per year of progra~ income. Under the purchase contract bet'.,;ecn PAHC and the seller, e$croW' on the property !t\ust close by DeCember 25, 1991~ The seller has asked for this ti::-.e fra"LCe in ot.'"der to satisfy his tax requirements. Hcrwever, close of escro·... is cor.tingeJ:t upon the successful completion of He'D's. r-evi<.::· .. ' of the enviro;l!tIEmtal portion of this proj~ct. D':J.e to advertising and noticing requirements, HUD's environmental review can not occur prior to December 20, 1991. Upon successful cQrop1~tion, HUD lo.'i11 provide the City 'VIith a release notice entitled "F.er;lov.;,l of Grant Cond i tions Tf (Form CMP..: 542: 91 2 '! I ",j I I I I I I 1715.16), after ~hich the funds may te drawn fron the letter of credit. ~~ll of the CDBG funding requirements ",i 11 be included as condi tions in an agreement under which th8 City wi 11 grant P.t.HC the :money to purchase the property. The agreer:;er:t .... ill ir.clude the fol!owing terms and conditions: 1) The funds will be granted to P}.HC subject to the terms and conditions of t'ha a.gree:::ment. 2) The property must be operated with the follm,dng use restrictions: At least iO percent of the occupants ~ust be low and moderate income ~ouseholds as defined by HUD. The use reGtrictions must be in effect for 20 years or PAHe must pay the City the then :fair market vnlue of the project. As required by BUD, at the end of the :20-year term, the project must either be operated for an addi tional 5 year-s subj ect to the use restrictions or PARe must pay the City the theT1. fair market value of the project. 3) Non-income eligible 'tenants living in the project must be relocat~d ~ithin one year of ~he close of escro~ on the property. The relocation must be accomplished acco~dinq to federal la~ requirements. 4) Program inco::le, as defined by HUD, generated by the proj ec:t must be accc'..l'-,ted for and returned to the city on a quarterly basis during the term of the agreement. 5) The proj ect pro forma. agreed upon must be operated according to an agreed-upon Ttle pro fOTr.la may be a:r.tended annually, as between the city and P}~C. 6) All other HUD and CDBG r~gulatory requirements .... ill apply to the project's operation including all accounting and financial special reguirp~ents. Page Hill/Ash ~j,. __ ~_~----.Review If the Council approves this proposal, it .. dll mean the City will, for pra,::t.ical p".1rposes l be in compliance .... ·ith HUD r-equiremer..ts to discontinue the practice of landbanidng CDBG. Once the project is funded, including relocation expenditures, approximately $40,000 will be left under the letter of credit to be used on a future project. It will also mean the propcsed purchase of the county of Santa Clara property at Page Mill/Ash will no longer be feasible with CDBG funds. Staff bas just completed an ext.ensive erlviron mental rev i.e .... ' of the Pa.ge Mill/Ash propr!:r"ty. The environmental review process uncovered factors that would necessitate extended CM:R:542:sn ) • negotiations .... i th the County. In contrast, th-= purchase-of the tmerson street property allm:s for the creation of an immediate. housing pr-oject 'With 10 p~rc€nt of t.he tenants being law and moderate ir,come . .l1Ipding proce)t~ When the city ri'!ceives the formal re)ease notice, "Removal of Grant Conditions n , tram P.UD~ t~e actual process to fund the purchase of the Enterson street propert.y and costs associated 'With tbe close of escro ... -will require the temporary use of $978,700 of city fund~ to &nsure that escrow closes on December 26, 1991. BUD '..Iill reiml:>urse the City from the City's letter of credit entitlement .... ithin 30 days. This '<.Iill net requir~ <\ B'J.dget A.."'1'\endment Ordir-.ance es funds ~ere already apprcpriated to the landbank account and adopted as part of t~e annual allocation ~f CDBG funds by prior City council actions. Relocation CO$ts .... 'ill be p~id .. ith City CDBG funds on a case-by-case basis upon application by P.'HC~ Application for reimbursement f.tom BUD from the City's letter of credit '-'ill be made ort a quarterly L.;;.sis for the actual relccation assistance provided. Envirofltl!._~ntal Review In conforIl~ance "'ith the california Environmental Quality Act (CEQA) requirements, an environmental assess.ment recomrn&nding a negative declaration has been prep~red for this project (Attachment 3). In conformance with the federal Natiot",al Environmental Policy Act (NEPA) requirements, a Format III Environmental Assessment (EA} has been prepared (Jo.t:ta<::hrnent 4) ~ The projectfs only potentially significant effect is the planned relocation of three existing tenants which is fully mitigated by the relocation assistance to be provided to them under the p:rovisions of the uniform Relocation Assistarlce and Real property 1I.cquisi'tiofl Policies Act of" 1970, as ame.nded. 1t4!'Commenc!.atio"Q, staff recommends that CQuncil approve the at.tached resolution, under ~hich Council ~ill: 1) Approve the deposit of city funds app~opri~ted to the landbank account, in the anount of $978,700, into First American Title Company escro r .... 2.(:count #'505712, for PAHC's purchase of the 10- unit apartment complex at 3D2D-JO]S Emerson Streett includinq closing costs, provided, ho'..,!ever, that such ueposit may not be made until the City receives the release notice, "Removal of Grant Conditions", from HUD. The deposit is to be made -with th& understanding that the fu~d5 ~ill be rei~bursed to the CMR:542:91 I i City by HUD from tne City's letter of credit under the CDBG program within )0 days of close cf escrow. 2) Approve the use of the City's CDBG funds in an a:r.lount not to exceed $65,000 as n.eeded fer the relocation cf existing tenants at the 3020-3038 Emer's~n Street co~ple~ in order to me~t the CCBG low ar.d moderate-ir.cone eligible requirements; and authorize the city ~anager to ad~inister the expenditure of tho3e funds, including the e>:ecuti:ln of any necessary documentation. 3) Authorize the Cit.y ~lar.ager to execute any documents necessary to close eGcro"", including the agree~ent .. ·.hieh the city ...... 111 grant PARe the funding. 4) Approve the attached np.gative declaration and Format III EA# finding that the Froject ... i11 not .D.ave a significant effect on the env ironme.P"lt . S"taff further recommends that COL:.ncil cO!"lsider and approve the pro forma rent levels and anticipated rrogr~m income (Attachment 5) ~ Res~ctfully 5ucmitted, _ iP(I/ /' -~_~J iLL< < </, EHILY tlARRr SON <--,-/ Director of Finance ~:"""'M:'~S:-;;,J,,-, KENNETH R. SCHREIBER Director of Planning and Community Environ?l1~nt (,(L, ~_ ~IA!'! ZANER City Manager Related Staff Re:port: Cr-:R: 518 :91 cc: Palo Alto Housing Ccr-poration Attachments: C/lm.:542:91 A) 1) 2 ) 3 ) 4) 5) Resolution PAHC letter dated October 4/ 1991 Staff letter dated November 6, 1991 CEQA environmental assessnent NEPA environ:;;;ental assessment Rental Housing }l.cquisition Program Pro Forma Financial Statement 5 ~~---------"-.. - AnA~_NT A RESOLUTION NO. _ RESOLUTION OF THE COUNCIL Of THE ClTY OF PALO ALTO AUTHORIZING EXPENDITURE OF COMMUNI~Y DEVELOPMENT BLOCK GRANT F"J'NDS FOR CONTRIBUTION ' ... "0 THE' PALO ALTO HOUSING CORPORATION FOR PURr.HASE OF PROPERTY LOCATED AT )020-3038 EMERSON STREET WHEREAS, the Palo Alto Housing Corporation (,"'PA1-f:C") has requested financial assistance fro:n the city of Palo A.lto 'th~ "City-) to purchas~ a 10 unit apartment building located at 30~O- 3038 Emerson Street (the "Property~), to be used as additional low and moderate income rental ~ousing in the City: and WHEREAS, the City has appropriated Community Development Block Grant ("CDBG") funds to the landbank account for the purpose of providing low and moderate income housing ~ithin the City: and WHEREAS, the city council desires to fund PARe's purchase of the Property with CDBG landbank funds to promote the provision of low and moderate income housing in the City and to thereby also create an annual return of program income to the City, in accor dance with the CDBG regulations, which ~ill be used to leverage other affordable housing projects in future years; and WHEREAS, funding PARC's purchase of the praperty complies with the CDBG regulations, in that seventy percent of the project's beneficiaries will be of low or moderate income ~ithin one year of the purchase and any existing tenants who do not meet the income criteria will be relocated in compliance with the Uniform Reloca tion Assistance and Real Property Acquisition Policies Act of 1970, as amended (the "ActNJ~ and WHEREAS, a negative declaration under the California Environmental Quality Act (ItCEQA-) and a Format III Envir-omaental Assessment (~EAftJ under the federal National Environmental Policy Act ("NEPAN) have been prepared for the project; NOW, THEREFORE, T.be Council of the city of Palo Alto does hereby RESOLVE as follows: SECTION 1. The City Council has cOl'1s,::::1ered and hereby approves the negative declaration under CEQA and the ~~ under NEPA for the project and finds that the project will have no significant environmental effects, as shewn in the negative ceclaration and the EA. SECTION 2. The COl.mcil hereby approves the expenditure e·f City funds appropriated to the landbank account, in the amount of $978,700, to be deposited into First American Title Company escrow account number 505712, for PARC's purchase of the Property; provided, however, that such deposit shall not be made until the City receives the release notice, :Removal of Grant Conditions~ for the Property from the federal Department of Housing and Urban Development (trHUon). Such funds shall be expended with the 1 ~~Fl~--'" .:\:~~~ .. ;:~~lC: .".>,,' ~" .. --.', .. -, - /', .~ understandin'~ that the City W'ill be reimbursed by HUD from the City's lett~r of credit under the COBG program within thirty days of the close of escrow on the Property. SECTION 3. The Council hereby approves the expenditure of City funds appropriated to the landbank account, in a total amount not to exceed $65,OOO~ a'S may be needed for t!1e relocation of existing tena~ts at the Property in compliance ~ith the Act. Such relocation shall be accomplished. to meet the low income eligibility requirements under the CDBG regulations for the Property and the City Manager is herabl authorized to administer the sxpenditure of such fu.nds, including the execution of any necessary docwroentation. ~ION 4. The Cou::lcil here:by authorizes the City Manager to approve and execute an agreement under which the city will grant PAHe the funding for its purchas~ of the Propert)". The council further autho~izes the City Manager to execute any other documents necessary for PARe to close ascr-o~ on the Property. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSElJT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: city Manager Director of Community Services Direc-tor of Fin"'a-n-c"e=------- 2 9112~t.:l~ 002041! • - October 4, 1991 ~1r. William Zaner City Manager City of Palo Alto p, 0, Box 10250 Palo Alto, CA 94303 ,-j PA!-lC Apartments, Inc. Subject PrO}'Osed AcquisltlO[". of 3020-3038 Emerson Street, Palo Alto Dear Bill: Pursuant to the guiddines established for t11e Rental Housing Acquisttion Program (RHAP) we are hereby applying to the City for S617,000 of Comr.1unity Development Block Grant (CDBG) funds for the acquisition of a ten-unit apartmt!nt comple:x: consisting of two buildings, on adjacent lOts,' facing each ot..'1er across a hwn, each containing five 2-bedroorn l-bath townhouses. As you will see from the endosed pro-forma (Ex.i.ibit A), the acqursition price we have negotiated for this complex: (which we have dubbed Plum Tree Apartments) is $980,000. Adding S22,OOO to L,is figure for the estimated costs of closing, financing and arlministration, and $90,000 for the estimated rehabiliution costs, we calculate an estimated iotal cost of $ 1,092, ()(X). We expect to achieve a tenant popula:ion v.ithin a ye:;.r of 51 % low and very low income households, and accordingly have projected our income with t11e assl!mptiQn that v,'e will be renting t\J..'O units to very-low incClrr:: families, four un:ts to low income fa..'F!1ilies and four units to moderate income families. Subt.r<1.cting a vacancy allowance and estimated operati!lg expenses, we ca1cuiate t"lat we can afford debt sernce of approximately .$430,000 at a 9% fixed interest rate for 30 years, However, we wish to present for your consiC::ratian an alterna~e proposal. Through a special program of the California Housing Finance Agency (CHFA), a loan of about 7% may be available for a 15 year, rathe: than a 30 year, term. Obviolisly, the shorter term requires higher monthly payments even though the interest rat: ~s lower. We estimate, therefore, tha.t if we were to utilize this CHFA program, we could onl, afford a mortgage of S385,(X)(), requiring $45,000 more in down payment. We belie ..... e Liis 54D Cowper Street, Suite G, Palo Alto, California 94301-1806, (415) 321·9709 I '" would be a vr:ry wort.'rJwhile inves.tment in retLlm for the savings in in!eres.t [Oi the shaner term loan, Accordingly, our req1J~st of .$617,COO in funds asS1..imes, L1e s.horter term loan. Note that we are not requesting any fUrl~s for rehabilitation. 'We will be assJming those costs. If HUD requires reloca~on of any of the cJ.rrent re:)idl!n~. we would require additional CDBG funds to ,over sucll costs. I believe that this request for CDBG fund.s does not require Ccuncil action, and tc support this statement I am endos~ng as Exhibit B language from the REAP regulations an;! excerpt'i from the Council Mi:1utcs of June 27, 1978, which, aldlough removed from the Housing Corpo:-ation's contract in Ju1y of this year, must exist, since [l,O new regularions have been promulgated, and the RHAP program continues to exist in the Comprehensive Plan. All of Lie attachments required for a RHAP request of funds have been previou-sly submitted to Bill Fellman. I am, however J sending him the recent update of the Preliminary Title Report. IT you require any additional information, dan't hesitale t(l contact ITie. I look fO{V.Iard to an early reply and want to thank you again for your consideration and help III our efforts to address affordaNe housing in Palo Alto. Sincerely yours., &~ Syl"'" I, Seman Executive Directo.1:' Enclosure cc: WIlliam Fellman • A nACHlEHT Z CHy of Yo 1" }1lto POBOX 101.5e F"LO "~TO. C .. 1if,:)it"-ll .... '9~JOl Department of Planning and Community Environment (415) 329-2679 250 Hamilton Avenue Post Office Box 10250 Palo Alto CA 94303-0802 NO\lember" 6, 1591 Sylvia. Seman Palo Alto Housing Co~poratiDn 530 Cowper Street. Suite G rilo Alto, CA 94301 Dear Sylvia; Subject: 30,0 Emerson Street In response to the Housing Corporations request for funding for the proposed purchase of a lO·unit apartment ~u11ding at 3020 Emersor. Street, City staff would like to offer the following propl)sal: 1. We will fund the purchase from Community De .... elopment Block. Grant (C08G) funds up to the maximum appraised value of 5970,000 plus S9,700 for roints and closing costs. 2. It is our intent that a minimum of 70 percent of the units be occupied by CDBG-;ncome-eligible tenants. This will necessitate relccation of some tenant~. Relocation expenses are an eligible CneG cost and will be reimbursed by the City provided that the appropriate regulations are fol1owed_ The relocation process must be completed within one year af the purcha.se date. 3~ Any rehabilitation costs are the responsibility of the Palo Alt~ Housing Corporation. Rehabilit~t;Dn costs, ho~evert a.re an el igible CDBG expense and may be appl ied f{Jr through the' ,,- 4. JGII99ltLTl9lOEM annual CnBG al10cat;on process. . The project will be subject to HUD regulationi regarding Program Income {gross rents less costs in'ide~tal tQ the generation of income). Program Income must be t'eturned to ~he City to be added t~ the City's letter of credit for other CDBG eligible projects. Pr~pcrty management, repairs, maintenance, property taxes and utilities a~e examp1es cf eligible deductions from income. Please note t reser~es cannot be shown as an expense against income~ -, "-• , i • --- o 5. Jf the pr~peT"ty ;s sold, tlroceeds from the sale would also be c.onsidered Pro9ram Inco~e. Consideration of this iteal is scheduled for the City Council meeting of November 25, 1991. If the aboye proposal is acc.eptable to the Housing Corporation, we will ~eed the fo1lowing addit;o~il information by No~ember 13 in order tq inc1'Jde it in. the Coulicil packet: I. A revised pre-forma th.a:t shows the cManges in that ~il1 result from an cut·right purchase. include the reduced income 3S a resuit of the units to low-income. He financing This would conversion of 2. A cost-accounting method for detErmining program income and five year pr~ject1ons of estimated Pro9ra~ Income. Since this is a r.ew projl?ct, accounting sholJld be separate frore all other projects. If yc~ ha~e any questions. please contact me at 329-2579. Sincerely, )\~ ~~~ t?/rjjf-~ 5 GILLILAND ! anager Planning Projects CC: Ken Schreiber Will i"", Zaner Suz.nne R.ichards El8ily Harri son Bill Fellman Koreen Kelleher J(jl L99lflTlClOEM ! : .. I I I \ .... _-_._---- ATT~CHMUT 3 ,,---... Environmental Dccuments tHy of Pa1 'o Alto £NVlRPNMENTAL ASSESSMENT Project De-script ian/TH1 e: P'J:--cnas€! and reuse at ex; st i_D.9..~l,-,O,,-,,'",nJj~t. ____ _ residwJial complex to benefit low-iflcome residents. _________ _ l~cat;on/Address: 3020-3038 t:m.ersQ.f1 Sut"'r-"'-"''-t ____________ _ Sponsoring Agcency/Applicant: PalomnAlto HQ..using CQrporation/City of Pa10 Alto Address and Telephone of Applicant: 530 Cowper. Suite G. Palo _~J.to CA 94301 __________________ Attentio~l: Syhia Seman App11catl(,jn for-; Comm.~n_it~ __ O_e..,.eloprr.ent Slack Gr-ant Fundins ______ = __ _ (e.g .• zoning change, subdivision of property. architectur~l rel/iew. use permit) Zoning at Prvject location: _BM-30 ____ _ Fee R~ceipt No.: NOTlCE OF DETERM1NAT!QN Based upon revie~ of the project files, the undersigned member of the Planning Oepartment has conc1uded: IXI NEgativ' peclaratio~: Toe project has no significant environmEntal impact. No Environmentill Impact Report is required. The re~solls for i Declar-iltion are: the attacn~d injtial study. A record of orojE!ct il_cJic:1 t~_ ilvaihb1e for review at ttl€! Palo Alto Plan l1_T1.J_r.9' Department. located on the 5th flopr of £i!L~.I1. 250 Hamilton Av'nue, Palo Al\Q."-_JAL2.9:c43"O,,I~, ________ _ ---------------------------------- 1:1 The project may ha~~ a s~9nifjcant enviro~mental impact. An EnvirOrLrr1ental Impact R2'~ort \111·11 be preparlic}' Phnning Department Offi c;.l: ': C:"&~ C!!. X;11~C,~=~~~F::.--_______ _ , -, Planning Director~ 2:~ ")cAv;..!& 0 ate: 11115/91 __ v' The project has been approv!:'d. Date: Toe project has been denied. Date: Revised 8/1/79 file No.: (lANOD "-<-- , "t~/ ';;·:c .. >-"-- o ENnRONHENTAL DOCUHEN:S -PALO Al TO l. Project Titl?jAddress: 3020-10~8 Emerson Street I I . Project Deseri pt ; on : ?urd it se 0 f __ eJd s t; 1J9.-.J.D ~ u.r~ .. J.t.-bJJ __ L1Ql.!J.gio,-::r,-,-__ reuse as low-i~come hcusing. Future rehabilitation may OCCYr in t~e form of upgrad~ on deferred maintenance items. ReTo~ation of some tenants may be required. Ill. Environmental Setting: slJrroL:ilding. BJLSJ~ __ ~nJj __ aJ_ area with iOu1ti·(amily [;roiects __ _ IW. Environm:2ntal Impact Checlo:.list (Explanation of all -yes· a.nswers are in SectIon V) I. .E.itlh. 'Will the proposal result in: i. Unstable earth conditions or changes in geologic substr~ctures? b. Oisr~ptions. displacements, compac tion or overco~ering of the scil c. Change in topography cr gro~nd surface relief features? d. "'The destruction, (overing or modi fication of any unIque geo1ogic or Physical f€atIJres? e. Any increase in ~ind or ~ater erosion of SOilS, either on or off the site? f. E~posure ~r people ar property to geologic haza~ds such as eart~quakes, l3.ndslides, l7'ud:51ides, ground failure or similar hazards? g. Changes in siltation, deposition, or erosion which may modify the darmel of a river or the bed of a bay or inlet? _x_ _1_ _x_ 1 * Adapted from Appendix I, California Guidelines for !mplementatio~ of CEQA, December 14, 1976_ •• Updated May 1982, June 1983 ElACKl 90-flA-40 Pas· 1 EIACKL 2. Ai~. Will the proposa1 result in: a. Substantial air emissior.s or de teriorition of am~ient air quality? b. The creation of objectionable odors? C. Alterat;or. of ciT mJ .. 'ement, moisture temperature, or any (hangf in cli mate, either' loc~lly or regional? 3. Wahr. WilT the proposal result in: i. Changes in absorptiol'l rates, drainage patterns. or the rate and amount of surface water runoff? b. Alt~rations to the course or flow of n Dod waters? c. Discharge into surface waters, or in any alteration of s!Jrface water quality, including but not limited to temperature, dissolved oxygen or turbidity? d. Alteration of the direction or rate of now of ground waters? e. Exposure of people or property tQ water related hazards such as f1ood ins or tidal wave~ f. Change in the quantity of ground ~aters. ~ither through direct additior.s or withdrawals, or t~ro~gh interceptions of an aquifer by cuts or excavation.s? 4. Plant life. Will the proposal result in: a. C~ange in the diversity of species, or number of any species of pl ants (in ciuding tre€s, shrubs. grass, crops, microflora and aquatic plants}? b. Reduction of the numbers of any uniqu€, rare or endangered spec'es of plants? P:1JG\N&l.:n ..L ... .L _1_ _1_ _1_ _1_ _1_ 90·E[A'40 Page 2 c. Introduction of ne~ species of p1ants into an i,ea, or in a barrier to '~l'1e normal rephnisnment of e~lst;ng species? d. Reduction in acreage of any agricultural c.rop? S. .Animill life. Will the proposa1 result in~ a. (hange in the diversity ·of species, or of any species of animals (birds, land animals including reptiles~ fish and she1lfish, benthic organisms, insects or microfauna)? b. Reduction of the numbers of any unique, rare or endangered species of anima1s? c. Introduction of new species of animals into an area. or resu1t in a barrier to the migration or move ment of"an;ma1s? d. DEterioration in existing fish or ~ildl1fe habitat? 6. Ncis~. ~il1 the proposal result in: 7. B. a. Increases in existing noise levels? b. Exposure of peop1e to severe noise levels! light and Glare. Will t~e proposa1 produce new light glare? t3nd Use. Will t~e proposal resu1t in a substantial alteration of the present or planned 1 and u.s.e of an area? 9. £r,ergy/Nat .. Y .. r.~.' Resources. Wi 11 the proposal result in: a. Use of substantial amounts of fuel or energy: b. Substantial irr(.rease in demand UpOl1 existing 50urce~ of energy~ or YES _1_ _1_ x _x_ _1_ _1_ £IACKL 90·EIA-40 P;lJG\ci.oEmcr. Page 3 , 1 1 i I I I require the development of new sources or energy? c. fncrease in the rate of use of any r.atul'"al resources? d. Substantia1 depletion of anJ nonre newable natural r~source? 10. Risk of Upset. DOes the proposal in10lve a risk of an explosic~ or the release of hazardous substances (in dlJding, but not limited to, oi1~ pesticfd!s, chemica)s or radiation) in the event of an accident or upset? 11. 'p~J atfon/Hous 1M. i. Will the propc.s<ll aller thi! location, distribution, density, or ~rowth rate ,.--, of tha human population of an irEa? ~ EIACKL b. Wi 11 the pr~posal effect ex; st ing housing, or create a demand for additional housing? 12. lr.ansportation/Circulation. \rill 1 the propos~l resu1 t in: a. Generation of substantial additional vehicular movement? b. Effects on existing par-king facili ties, or demand for n~w parking? c. Alterations to present patte~ns of circulation or movement of people and/Qr gocds? d. fncrease in tr~ffic hazards to metor vehicles, bicyclists or pedestrians? 13. PubTic Services. Will the proposal nave a~ effect upon, or result in a need for new or altered governmental services in any of the following areas: i. Fire protection? P:\JG\ciI tm.:r'I NO _1_ _1_ _1_ _1_ 1 ... L 90-EIA-40 Page 4 ,/ I. o b. Pel fee preted ion? c. Schools? d. Par~s or other recreational facilities? e. Mainter.ance of public facilitfes. including roads? f. Other governmental services? 14. Utiliti~s. Will the proposal result in a need for new systems, or substantial alterations to the following utilities: •• Power or natural gas? h. Communi cat ; ems ~.Y st ems? ,. Water? d. Sewer or !ept; r:: tank? e. Storm water dr a i nage 2 f. Solid' waste and di sposal? 15. Human Health. Will the proposal result ; n : EIACKl a. Creation of any health hazard or potenti.l he.lth haz.rd (excluding ."t,l health)? b. Exposure of people to potential health hazards? 16. Ae:;U,etics. lIi11 the proposal resuH in the obstruction of any scenic visti or view open to the pub11C, or will the proposal result in th~ creation of an aestnetical11 offensive site open to pubic view? 17. ~cre~tion. Will the proposal result in an impact upon th~ quality or quantity of eXlsting recreational opportunlties? ,:\JC;ioIia'Eme" _1_ _1_ _1_ _1_ 90-[ IA-40 Page S , , • .. ---------........ -" .......... . . - .. -.'.\ .'" lB. Cu'tu~dl ~esources. a. will the proposal result in Ue alteration of/or the destructior. of a pr~historic or historic ar..:.haeo1ogical s.ite? b. \lill the proposal re5"lt in ad verse physica1 or aesthetic effects to a prehistoric or h~stDric building, structure; or object? c. Does the proposal have the potential to cause a physical change which would affe~t unique cultural values? d. Will the proposal restrict existing religious or sacr2d uses ~ithin the potential impact area? YES 19. Mandatory findings of Significance. 4. Does the ploject hay! the potential to degrade the quality of the envircnment. substantially reduce the habitat of iii. fish or ~i'dlife species, cause iii. fjsh or wildlife population to drop below self-sustaining levels, threat~n to el iminate a plant or animal COmI"TIun; tj', reduce the number or restrict the range of Q rare or e~dangered plant or animai or elimina!e important examples of the major periods of California . history {lr prenistorjl? ~. Dces the project ha~e th~ potential to dch~eve short-term, to the dis 'advantage of long-term, environmental goals? (A short· term impact on the environment is one which occurs in a ~elatively brief, def1nitivg period of time while long-term impacts will endure well into the future,) c. Does the project have impacts which are indi~idua11y limitp,d, b~t cumulatively ,onsiderable? (A pro je,t may impact on two or more separate reso<.lrces "here the impact x _1_ I EIACKL 90-EIA·40 P;\lC\e .. E_1"lI Page 6. -~.-,,---,~---. , r -i~'" ,~ ::: . -, ~ -, o en each resource is re1ativelj s~al') but where the effect ~f the total of those impacts on the environment ;s sig~ificant.) d. Does the project have environmental eff2cts which. ... ;11 cause: substanthl ad~erse effects on human beings~ either directly or indirectij'? I YES MAYBE _1_ _x_ .V. Explanation I'j·f -yes· answers in env"!"onmental cheCKlist. EIACKL As an existing structure~ purchase of the prop~rty will not re$~lt in any changes in the environmental setting. The property does not contain asbestos and is not over any known groundwater taxies. Rehabilitation of the project is not required. hcrwever, minimal future reno~at;on of the project is contemplated in the fo~ of an upgrade to deferred maint~nance items such as rep~acement of dry rot in the existing carports, new reefs, paint, electrical serr'ice upgrade and new furnaces. These improvements will have no sig~iffcant environ~ental impacts and are anticip~ted to be funded i~ ]992·93 fiscal year. The prQject is intended to benefit a minimum ~f 70 percent low-and very-low-income residents. As such it may requfr! relocition of some current tenants in order to meet the income eHgibllity requiremer.ts. Relocated persons are eligib1e fer benefits under the Uniform Relocation and Real Property Ass;sta~ce Act (URA). Any adverse impacts are mttigated by provisions of relocation assistance. 9D-EIA-40 Page 1 ."-.,. ! f ;" '. n • I 'I i j , I , , , , I I I --_._- A TTACIIIEXl 4 r:'~~ \ .; ':.0" U.S. DfPARTME~T OF HOUSING AND URBAN Df~£LDPM£N! REGICN IX -_ COMMUNITY FLANNING AliD OEV£LaPM£~T ENVJRONMENTAl REVIEWS AT THE COMMUNITY lEVEl FORMAT III Marcb I, 1990 Project: PurcnaSE and Reuse of 10·u~it Residential Complex at 3020·3038 Emerson Street hoj-.:t ldanu,t.i,,;.'Uorv'condit;.l.an,/f11\.1U.rog' h"j.et uta £aVe'1 ~t.tion STllnm;lItJ' oluxun u .. :.&t.I;Iry e~..:::kHrt:. J,... b'\j.c ~lon.I 1MVl1iOOtl:WTAl. A!,sUIiKEJn' ow:n.rn C'oM11Io.d: J'OK.51 I 1601/»101' tc~t Mo:lI/1UlD!' lc~t Ccui.tJnllou:.ton .tat_n~ IIhUl'ic 'nHno-.ticlI tl.Qwoc:l\6rt _i.,tori.; .P~~tr .c:rltu-a for pd\l.u.IOIl. c:rlt.11ria or tthet. U>o4 M_rn :trt~ I-.t.; flood ,.roced,u:. tlO1O'CMrt ~1. lit. 'I'ICI .. nd _UI;'" tr:'DOdln,l . -, ,. -U ~.-.lu. a. IIppondiJI • _ .. , Af'PIIndUi D Ag;<lnd1 .. ! ,l.pper>db , ilpp_ndb: G Appondb II -,---,-,.....-----_._-. ':.1 "i" • , , !., . I I i -~--.............. , ,-., '-' i FORi'i.~T III [~VI~ONXE~TAl ASSESSMENT PROJECT IDENiIFlcATION/CONDlTIONS/fINDING A. City ICounty _"C.:.it::;y,-"o.:.f...;P'"":..:'.::.o...;~c..l,-,t",o",",_S",a"n"t"a_C"-l"a:..:r-=a,-,,,C o"u"o"'t ... v _______ _ Certifying Officer Ken~eth R. Schreiber, Director of Planning and Community Enviro~- Plum Tree Apartments ment Projec.t Name Purchase and reuse Of lO-uOit rpsjden.t.i..alJo'11Q1ex Project loc~t;O:'l(S) (major streets. other identification) _____ _ 3020-3038 Emerson Strut I Palo AHa, CA 913(13 B. lead Agency _~C~i~tLy~o~f~Pa~l~o~A~lt~o~ ________________ _ Address 250 Hilildlton AverluE, Palo /I,Ho. CA 943Q1 Project Representative James E. Gilliland Telephone ~umber ____ ...,(4'-'12S.J.)~3'_'1:z9-"-1,,6=79 c~ Project Approval conditions (list 111 mftigation miasures necessary t~ ant'fiate ad\lerse environmental tmpacts. Mitigation measureS inclUded here Should be included in the project contract as requirements.) 1n order to provide housing for low and very-lo~ ixco~~ resiuents. relocation of some existing tenants may be required. Relocation is fl.:lly mHigated by confom.ance with the Uniforn Relocation and Real Properties Assistance Act of 1970. as amen~ed. D. Finding: The project ~i11 ha~e a significant effect on the h~man E. en~-;ronment X no S 1 9na t u re -;O;'/dJ.'-"'''''.:...:-';..y.="''===------ Manager, Pldnning Projects City of Palo Alto. Planning Department No .... ember 15. 1991 -, - , ! . ENVIROIQ1ENTAL ASSESSM£NT PkOJECT DATA Existing Condttions !nd Trends: Project is purchas.e at'!d reuse of an existing lO-unit reSidential complex to benefit low-income residents. Relocation of some t~nants may be 'required to reaTiz.e a minimum 70 percent low-and very-low-income residents in the project. Acquisition is to occur t~is year. Minimal rehabilitation of the units may be required in the form of upgrade on defE:rred maintenance Hems such as rep1ace "ment of minimal dry ~t arees. painting and new furnaces. These renoyetions will be the subject of a future application for City of Palo Alto CD~G funds. Project Description! (list muTti-,year activities by year) See above. -3 - • FOP./'IiI.T llT STATUTORY CHECKLIST" Cher;\lic-t cf APplicabll! StatLlJ:es. &(.tllt.,., t"..:..,t~\I~ OrC.e-r, . • I'd ill";lIhUo,u 12 .. <;:ra SB.S; Historic Preservation Floodplain ~~na9ement ~etlands P~otection Coastal Zone A A .~ A A Executive Orders, ReTJlations letter to SHPO. ~?oke with George Zinmernan -no < X zone Scott Wahl~ Pu.b 1i C \(ork s MAPOOO30 , Jim Gi1liland, Cit of PalQ ~1to Plannin CQ~servation and Oe'ielop~ent C~IT!l1. 1. sote S~rce Aquifers and S.te !lrinkin Water A Roger CW'fa~, City of Palo Alto Utilities EnginecJ'" ~~~~~~---+-+----- Ai: l,l.ali t Farmland Protection Noise Abatement a"d ~ (24 CFR 51S) £)fplosive and Fla.mmable o ~rations (24 erR 51C) 'roxie Chemic:als!R.adj.o active ~~~erials {Hv~ NOtice-79~3J) Airport Clear Zones and ~cciden~ ~otential Zones {24 erR 510) A Jim Gilliland. City of Palo ~lto Plannir.g A Jim Gill'iland. Cit of P~10 Alto Planning A Doris ~Iaez I x2347 Cit of Palo Alto Environmental Pr teet. A Jim Gilliland, Cit ____ -1 of Pa10 .D.lto Pi ann,.,q Jim Gilliland, City of Palo ftlto Planning A, Fred Hern.ari, City of Pa10 .a.Ho .. Chief Building {]fficial Jim Timkc .. -..2135, City of Palo Alto ~azardous Materials A Speci ali s t Jim Timko, 1..2135, City of Pa1a Alta Hazdrdou~ Materia1s A Special ist A Jim BilTilarid. Cit; (Jf Palo Alto Planning --------~-------- • See instructians. following pages. 5 - - • - - <"\ ENVIRONMENTAL ASSESSME NT .CHECK LIST < < x x .po x x .~n x (Pag-e 1 o~ 5) '1 SO'urce dOC"umenta tion (Additional Mate~ials may be attached Pcinteo -City of palo Alto C~P< Plan', zonin~ ordinance which promotes retention ot current hausing & promotes affordab1e hou ir Printed -Same ield -Jim Gilli1and Va1erie Glass'f.:.rd Ron Hall arne arne. Same Same 8/16/91 ~: tor instructions, consult. r:~-C?D-7a2. "Env5.l-onment.a.l Review G .. ide for COUJ'nunit):' Develnpment Block Gr-ant Programs -S .. . \ • , • ,.-.. ENVIRONMI::f.lTAl r'\ ASSESSMENt CHECKLIST . I/'liljjl' ./ .Ih fj 1If! ,»«. -_ ... " •• './ i~ (/ ~ (Additional Materi~l~ may be attach@d} ImpaCI CAle&,orie5 ~"j. ;. ';' ..... QuoI!or Ueeu; or IarnbiEnt AU CO!'1tact: D~r~s Maez~ City of Palo Alto~ QualIty DtI Ptofect.-nod c:on~~ I.e Ccm-X En'.!iranffi.!::!llta 1 Protection Ccardina lfIunit'l JlolJutk!n lA\~""" (415) 32S-2341 or , Eft"",nm.enw o.e.J,n ~ Q!.o&JIr--Fie 1 d: J,mes £il1iland (415) 329-2679 ~.itt-...,..Itv, c-p._IlM,...6 X S/16/91 Vclerie G1assford (415) 321-9709 ...,. Ron Hall (4J5) 321-9709 --.,,,.""'" """ hpedence -James Gilli1and. {.HSp29-2679 Cbuuwow,... X Relocation of so~e €~isting tenants and re use by lQw-income tenants may have potenti 1 ""--, cenE~lC:la\ lmpac~~ In pr~viclHlg a-tto~e X houslng. ~e'ocatl0n aSs1Stance will be pr - ~ided to those dispiaced in conformance Ua~~\ll'Id with the Uniform Relocat"icn and Rea' _ ... - X PrDperty Assi~tance Act (URA} c:...iIIIIUrUry F.dli .. .ad ~ -,-Field: James G':lll i 1 and 8/16/91 X Va1etie Glassford Ron l'a11 X Same -""" X Same ...... - X Same -q - - '. , I ! \ \ , ! \ " ENVIRONMEOr'Al ASSESSMEN·. CHECKLIS T IoOdW ..... lo4:ule'W'l'.lu 'IDmI r,o,· ..... r IVilllEl' Ju.ppJ:.! ...-w..y- ... ...... ency .. ..,.,., ep." _ on<! Cl!-_ --- ~ ._- ~ -,~.:'~~. '...:: -. X X X X X X X X X X X ". -.----------.- {page 3 of 5) 7 (1I.dd.ltlOl'l11 ""at'!!.rials lf~y be attached) C.:Jntact: Roger CWlak -Cit.)" of Palo ATto tJtil Hies Engineer Same Same Same Contact: Phil Consta~tino -City of Palo Alto Public Safety Sarr;e ame Experience: James Gilliland arne 'me O!ltact: -10 - CarT Stoffel -City cd PaTo Alto Transportation Divlsion" •.... ,;.' o· -:--------------- , ENVIRONMENTAL ASSESSME NT CHECKLIST (Pnge 4 of SJ . 1/711/;/1' • 111/~ ... o~ •• ~.~.""",, ImpaOI Cale,<>rre.,4 ;/)';. ~ ? #, (Add>uoool M.tedaIs may be .ttach. I N .. tW'.J 'UruH'I ---...-Roger Cwiak. City Engineer X ~W.III!T X Same .. 1Inlquo ......... 'Mrur-MI! field and E~perience: ..........., ..... X James E. Gilliland~ Valerie Glas<fard and Ron Hall ~ .....--,_ X Same . 1 . . • , .-", ENVIRONMENtAL ASSESSME N T CHECKLIST (Pa.ge S of S) AL~EANATlVES --Study~ dev~lop 40d describe appropriate alte~natiye~. as follo~s; 1. too -'ction: Hlis project will p'!'"ovide additiona.l housing o~pcrtur.iUes fer Tew-and .'ery-JaYl'-iflcorr.e residents in. the PalO Alto area. This opportunity woul d be 1o-st witriiJUt the project. NlJmeraus other sites r,i\l'e been c.onsidered for pUf'"cI)ase and reuse as 10w-1Ilcc;r,e hGusing by the City and Palo Alto Housing Ca~poration, including Santa Clara CountY-D~ned la~d at Page Mill and Ash Streets {90od location and vacant land b~t ?csssible toxic underground water and noise considerations}, a 4-unit apartment at 482 Matadero (good location but greater rehab requirements and greater cost/unit) and 330 E~erett (senior ho~sing with SJme nei9hborhood opposition but incompl~te financin9~. l.~: \::-.1<;1'10 ....:-Si.!!.eau-. ""Uta'll: ........ 1lQ1l-cna.c. t~"",U>.'i n ..... : "~'II:u.... ut: !J,..ewo. _E'.1u ~ 41...u.,, ___ ..... , •• llt .-.&c:lI). The building does not require major modifications and is suitable only for residential ~se. Other funding sources were considerea incl~din~ City of Palo Alto l1ousing"Resene Funds (guidelines prDhibit use fer existirlg housing) and CHrA financ~ng (use of CDSG allow!; for faster con'w'ersion tc low-an.:l 'w'ery-1ow-incom~). LIST OF SOURCE DOCUMENTATION or REFERENGr.S: 1. City of Palo Alto Comprehens'hre Plan ______________________ _ 2. City of Palo Alto Z!:Jn~r.g Ordinance 3. James E. Gilliland. City of Palo Alto. Plannin3 Department, (415) 329-2679 4. Valerie Glassford. Pala ATto Housing Corporation, (415) 321-9709 5. Roger Cwiak~ City of Palo A1to~ Utilities Engineer , . . . , -12 - - RENTAL HQUSING ACOUIS~ PRO FORMA FINANCIAL STATEMENT ATTACIKHT 5 Property Locatioo: 3020-3035 [merso, Street Oate 12I2I9i By: ____ _ Type of Property: 10 "oit, 2 bedroom, I bath apartment compTex l!Im!f uroJill llir i r 2H Reot~ Uolt Total On-site Kanagement 1,200 1Lli!i! 11m2 llir Management/bookkeeping 6,000 -L 2 58 150 300 3,600 Utiliti.s (IO%loc.) 3,527 -L 2 BR 260 520 6,240 Repairs and Maint. 8,000 _L 2 BR 465 I,H5 16,740 landscape 1,440 _L 2 BR 765 2,295 Z7,HO !nsu.rance l,SOO TOTAL S411~2 Clean~ Dec" Piint 1,800 less vacancy • ~ I.QDZ Property taxes 3,750 Effective SrDss Income 53,038 Pes.t Control -ll£ Op~rlt1ng Expenses ~71~!g TOTAL 27,340 ESTIIlATID NET PROGIWI IIICOI!£ $ 25,698 fjHANCJA, Acquisition Price $980,000 Insurance 1,700 Property T.xes/Closing 7,OQO TOTAL $988,700 . ,