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HomeMy WebLinkAbout0506.092,: • r' " " ,. it'i r', t !, -I ,.~ ". ~ I) .. . . . , ~t·, ",:-,-",-.. November 5, 1992 HONORABLE CITY COUNCIL Pilo Alto, California ..... ... "i - 330 EVERETT AVENUE -LVTTON IV SENIOR HOUSING ADDITIONAL INfORMATION Member's of the Counc i 1 ; REPORT IN BRIEF This report transmits additional information requested by the City Council 1n their regular meeting of November 2, 1992. This il'1formation is pro'.dded as an addendum io the October 22~ 1991 staff report addres~ing the financing request by COlTlTlunit)' Housing, Inc. (CHI} for the proposed lytton IV senior housing project (CMR:4~9:92). RESPONSES TO COUNCIL OUESTIONS Question 1: Explain what ·commitment of funds~ means in the staff recorrmendation relating to the land acquisition, and clarify the contjngency j anguage+ ResptJnse 1: The Cit) Attorney's Office ad"lfi'ies tnat ·t:O!llllit~· as used in lct~on recolTlTlendation 1) of CMR;469:92, was intended to express Council's intentior, to bind the City to pay In-Lieu Housir.9 funds to CHI if. a.,d 0.'11y ;f~ two conditions precedent were satisfied. The City Attorney has provided a redrafted venian of the recon£Jendation in respon<::e to Counc1l quest-ions asking how the language might be "tightened" to clarify the City's and CHI's respective obligations. Council should also be aware that further action. appropriating In+lieu Housing funds in the form of a Budget Amendment Ordinance {BAO) to Make Add;tionaJ Appropriations or through inclusion in the 1993-94 City ~udget, will be required to comp1ete the ·colmlitrnent.· A BAO to make additional appropriati<lns. requires a two-thirds .... ote of the Counci1 (PAMC, Section 2.2B.OaO(a)), Inclusion in the regular budget will require a majority ilote of the Coun~il. Because Co~ncjl cannot take this act~on at the present time. this approach would leave tMe appropriation incomplete until next June. CMR:506:92 .... , .... '-.- • \ -' o Tnt $]00,000 of Community Development B~ock ~rant funds are part of the apprDved 1992~93 City budget, and thus a majority vote of Council \IIi11 rElease these funds. Council should be a~are that the Terms of Payment will need t~ be Jdjusted, depe~din9 on whether the City purchases the pro~erty pr~vides a loan/grillnt. The City AttGrney's proposal assum.es a purchase. !n res~onse to Gouneil questio~s. the City AttoTn.ey's Off1r~ offers the following substitute language for action reco~nendation JJ: -Direct staff to prepare a budget amendment ordinance which, upon adoption by Council, will appropriate sufficient funds to carry out U1~ Council's direction set forth below. rA. Upon satisfaction of the conditi~ns precedent set forth belo~. commit SI,950,000 in In-li~u Housing funds plus S1oo~OOO in p"eviouslj set-aside CD8G funds to the completion of the lytton lY senior housing project t~ be paid a3 specified below, with the conditions that: -B. Conditions Precedent. -1. CHI shall make its land purchase offer contingent upon both the receipt of i HUD conditional commitment of funds of not less than S4,650,OOO and the City's review and approval of the amount and fOnT! of the condltional CDl111'1itment. If the Conditional (ommitm.c:nt of Fund:: ~s not suffic'ient to cOlier the balance of t~e project costs, the purchase of the land will not tate place and CHI will return any money drawn froin the City to the (ity_ ·C. Terms of Payment. 1. City will ray the funds committed to CH! or its escrow, .at the Clty's discretion, after the condition precedent has been satisfied. but no sooner than the date escrow for the land purchase has bee., opened and escrow instructions consistent ~lth th~ conditions precedent have been approved by the City.' Quest fon 2: Doe5 the change 1 n the mi)( cf the numbe!'" of one bedroom and studio apartments in the project require a change in the Planned Community (PC) Zone Ordinance? Response 2: No. 1he PC ordinance does not specify the type of units or the number of units in the project. The PC ordinan~e references the Oelielopment Plan which is subjEct to review and change by staff, the Architectura1 Review Board, or Council. In a letter to City staff dated June 25, 1992, CHI requested a change in the proj~ct unlt composition from 45 studi~~ and 6 one­ bedrooms to 21 studios and 30 on~-be~rooms respectively. This change was the result of HUD 202 regulations which cap the mdximum unit si~e at ~lS net C!1R:506:9Z 11/5/92 Page 2 • --. i. , I .' " I i i I I I .. ", j .... = is; square feet for studios and 540 square feet for or.e-bed.ooms. City staff reviewed and appnrved the request since the 'r"evisions to unit mix were internal and did not change the appearance of the building, the buildlng footprint, o· .. erall building square footage, occupancy, or parking. Question 3: lytton 1 and preferences. Clarify how m2ny Palo Alto residents a.e currently living in II, how many are on the waiting list~ and expl~in the federal ReSDonse 3: As of July 10, 1992. there were 264 househOlds occupying the independent living units of Lytton I and Ir. Of these, 106 house~,olds, or 41 percent, were rssident! of Palo Alto prior to relocating to lytton Gardens. Of the remaining 59 percent of households who had not lived in Palo AHa prior to living at Lyttc!') Gardens, 14 percent I'lal,le family in Palo AHa. There are 427 appHcants on the current waiting list for independent Jiving units, and 80 applicants for residential ca~e. Of these applications, 13 percent are Palo ... lto residents and 4 percent have fam1i". in Palo Alto. HUO i11~s for applicants with federal preferences to be placed at the top of the waiting iists. There are t~ree types of federal preferences: J) a ,person paying more than 50 percent of their income for rent and ut;lities~ Z) displaced persons~ and 3) persons living in substandard housing. A great lIajority of the federai preference holders are paying more than 50 percent of their inc.ome for gross rent. Of the 427 applicants on the waiting list for independent living, 28 iTe residents of PaiD Altc and have a federal preference. Another 10 of the federal preference applicants have their family in Palo Alto. This means that 75 percent of the initial residents of Lytton lY could Either b~ from Palo Alto or have family i~ Palo Alto. The actual ;verage annual income of the cvrrent Lyttcn residents is S10,500. As many as one-third of the residents receive only supplemental social .security payments, which is an annual income of approximately $7,800. Question 4: Describe any mitigations which are in place to protect the neighbors r!garding contro1s on construction activlties and the fjnal landscaping decisions. Aesponse 4: The PJanni~g CommiSSlon staff report of ~ay 24, 1991 outlines the conditions which must be met by the applicant relating to construction and architectural mitigations. These conditions were re~iewed and approvp.d by Council on July ,2, 1991, ~'hen the PC zone change \lias approved. -Hem 4. Prior to submitUng for a bU"llding permit, the foilowing will return to ARB fer appro~al: architectural details, includin9 balconies, trell1ses~ soffits, building materials a.~d cclors; a red~sign of the porch; restudy of the garage and visitor parking and bicycle parking.,.; final landscape plan, lighting plan, light fixtures and pavjng materia 1 s. C~R:S06:92 p. ~COTY\tyn.,.... • "X r 1115/g1 Page 3 ,. ~'." . ..~ o o "Item 9. The applicant shall provide with the final landscape plan an arborist's report detailing protectiJn measures for trees O~ neig~boring vareels which will be impacted b)' He construction. ana a 1l2ttel~ evidencing that a certifled arborist ;s responsible for implementation of the protection measures. 'ftem ii. The applicant s~al1 prepare a construction pl~n. to be appro,"-ed by the Transportation Division and the Public .... orks Department. to identify and mitigate demolition and (onstructlors impacts listed below. This plan sha11 be coordinated with the construct;on plans of the two proposed adjacent development projects at 325 Lytton and 325 Everett . 1. Demclition. 2. Constructic.n of temporary barricades and fences. 3. Temporary closure of sidewalks and streets. 4. Site for the storage of construction equipment and supplies. 5. Identification of the proposed constructioll access point and truck routes. 6. ~estor.ation of City streets lmpacted by the c-onstt'uction activities. 7. Replacement of entire City sidewalk. in front .of the property in accordance with City standards. 8. Public relations plan direc-t~d at resolving the concert'l_s of adjacent merchant bus;n~$ses.· Question~: Describe the Lytton TV project in the conte~t of the current Camprehens;ve Plan+ Response $: ,Il,doption of the Planned Cc;.:rmunity ZQr'1e Chdr'1ge in 1991 required a City Council finding that the Fe zone ts conSistent W'ith the Palo Alto Comprehens~ve Plan. The (01101o/;n9 is from the Planning (orrrnission staff report dated May 14, 1991: I:The ust!S and site de ... elopment reg 'Jl.atlons w"lthin t~e proposed PC Planr.ed Community di~tr1ct must be determined tQ be consistent with the Cmnprehenstv! Phn. The objecti¥ss of the Comprehensive Plan c-onsldered most pertinent to this proposal are tne following policies and programs of the Housing Element. CMR:5D6:92 p,,,-,,,,IIyn'" Policy 6: ~aintain at least tMe present number of multipl!-family rental units while ~Qrk.in9 to increase the o¥erall supply of rental housing. --.-----~-- 11/5/92 Page 4 .-, , • t , Program 9: F()r any rcsldential development in mu1tiple-farni1,y zonts which causes the loss of rental houslng units, subdivision appro¥al may be grar.te-d ; f any ha of the fonowing threi! circumstances are met: pr'O'Vide 100 percent more units~ replace the ex1sting number of re~ta7 units, provide not less than 20 percent belo.-market-rate ~nits. Program 15; Provide zoning flexibiiity to encourage the develapment of smaller Ul"its affordable to 10111-and moderate­ income persons. Policy 8: fncourage and foster a diversity of affordable hoUSin9 oppcrtunit1es for senior citizens including housing which may provtde iI Yir'iety of services for special heaHh, social and transit needs. Policy 11: Encourage and partiCipate in low-and moderate-income housing programs financed by local and other le¥els of gover~ment. -It is staff's opinion that the proposed project furtners these housing objectives. It exceeds all three condltions of Pr,grarn 9 by increasing the number of units on the site from 12 to 51 units, all of which are rentals, and by providing ]00 percent of tne units affordable to low­ and moderate-income persons. The units are small studios and one­ bedroom units (420, 694 square feet) suitab1e for seniors with limited incomes. The location of the project, near Do~ntown, the Senior Center, lytton Gardens. Johnson Park and transit facilitie~ will provide housing which meets the special needs of seniors. The project ;s deSigned to take advantage of fedenl and 5~ate funding prog'rams, with appl i cat ion being made for i HUe Section 202 construction loan and Section 8 rent subsidies, or aHernatilJely, appl itation for a State Rental t10using Construction Pr~ram l~an and syndicated fundS." Question 6: Provide additional information on the site specific conditions of the HUD 202 funding. Response 6: On July 21. 1992, HUO re1eased tran~mittal ~o. 4571.5 which establish9s the current Site cnange regu1ations for Section 202-funded !)roje<:ts. Attached pages 1-55 and ]·-66 from ti'1e t:--ansmittal contain ttl€ complete wording of the site <:hf!.nge section. City staff has not be~n able to speak directly with HUn regarding these r~9ulations, Question 7: Provide additional information for the recommendation relating to City oversight of all of the Lytton pi'ojects from a rr.an;J;gement and financial perspective. Response 1: Because of the concerns expressed by bot~ staff ard the City Council abDut the fis"l ma~agement of the lyttoll [.Irojects, staff reco!ll11ends requiring CHI to provide audited financial st,atements fCrr Lytton 1, Lytton II aTld lytton lV, includif1g any management letter coments en adequacy of CMR:506:92 ,,_~D1'>4 -..,----.---~-~ - 11/5/91 Page 5 -.. o inter~al or ~perational controls. within 120 ddYS of the close of each fiscal year. In additlon, staff recommends that Lytton Gardens Inc. {LGI) be required to provide the same information for t~f lytton [II project to staff in the same time (rule. Staff is also recorrrnending that the City r~5er'ie the right to audit the records supporting the financial statements of both CHI ~nd lGI, as well is any do~ument$ perta;ni~g to the operation of the lytton proj~cts. Staff ~jl' update the Council ~n th~ financial status of t~e lytton projects annually, or more frequ~ntly should problems arise. HUD _ill continl.:e to monitor and ov€rsee the prc-ject diJr-ing the 40-yu!'" term of tke agreement. In addition to inspecti~ns and revjew5 during the approval and construction phase~ of the 202 process, HUD ~il1 continue to audit the projett on an ann~a1 baSis. ThiS ~lll cDnsist of a~proval of the management entity, appro~al of the annual operating budg~ts, audits of operations, r~vfews of a"nual financia1 statements, and a~pra~al for the ~elease of money from the Residual Receipts Account. Conditio" number 3 in the October 22, ]992 ~taff report should be modified to read: -Require is part of the funding agreement that CHI and lGI, respectively, pra~ide the City with audited fi~a~cial statements for Lytton J, II, III and IV, inc1uding any managemei1t letter corrrnents on adequacy of internal or operational control$, within 12C days of the close of each fiscal year. Additionally, reserve the City's right to audit th! records, inc1uding the financial records s;upporting the aforementioned financial st3tements, and other records and documents pertaining to the operatlon of the Lytton projects.~ RECO!t!ENPIlTION Based on information provided in this staff report, staff recommends that the Council : 1) Direct staff to prepare a budget amendment ordinance ~hich, ~pon adoption by Council, will appropriate suffjcient funds to caH)' out the COl!ncil's directiorl set forth b~1o\ll. ~.. Upon sat1sfaction of the conditions precEd~nt s~t fOr'th belOW, commit 51,950,000 in In-l~eu Ho~sing funds p1us S100,OCO in previously set aside C08G funds to the completion of the lytton IV senior housing project to be paid as specified bel Oil:. ~it~ the tonditions that. B. Conditions Precedent. CMR:506:91 JI.~"'" , .. CHI shall make its 1and purchase offer contingent upon ~oth the receipt of a HUD conditional commitment of funds of not less than $4,650,000 and the City's review and approval of the arrwunt and form of thE conditional commHmeilt. If the 11/5/92 Page 6 'r ... ,_ '~-. ~ " , [ , ., 'I '1 I 2) c. ./ ~--. Conditional COmlitmant of Funds is not st.;fflc;cnt to covel'" the bilance of the project costs, the purchase of the land will not take place and CHI Wrlill return any money drawn from th, City to the City. Terms of Payment. 1. City ~;11 pay the funds committed to CHI or its es~row. at the CityJ s discretion? after the condition precederlt Mas been satisfied, but no sooner than the da~e escrow for the land purchase has been opened and escrow instructions CJnsistent with the conditions precedent have been approved by the City. Authorize the Mayor to execute the appropriate documents, as apprcv~d by the City Attorney and Real Estate Manager, to pro~ide an easement for \lehicular ilccess through City parking 10t J to the lytton lW project in accordance with the approved Plann~d C~mmunity lone Ordinance 14053. 3) Require as part of the funding agreement that CHI and LGI, respectively, provide Ute City with audit!d flnancia1 statements for Lytton I, II~ If1 and IY. including any management letter comments on adeQuacy of internal or operational controls, within 120 days of tn~ close of each fiscal year~ Additlonally, reserve th.e City's right to al..'dit the records, including the financial records supporting the aforementioned financial statements, and other records and dDcuments pertaining to the operation of t:le ljtton proje":ts. RespectfuT1y submitted, ~ (il.J~: jZ., SUZ~RDS , CDBG'7.o~~;:-:tor ~~ Director of Finance Attachment: HUD Transmittal No. 4571.5 cc: Planning COTMIission Architectural Review Board Human Relations CommiSSion Citizens Advisory Committe~ / ./J' /j '/ ;['??7<c:t:-:: /I.'~ A"/it££ty KENNETH R. SCHREIBER Q..i rector of nning and , lCommurllt i:--onment I j -""v"'''' Conmunity Housing, Inc., Blair Stewart, 655 Lyttoll Avenue, P.10 Alto C. 94301 Tony Badger, 381 ~a~horne A¥enue, Palo Alto, CA 9430i CHR:506:92 11/5/92 Page 7 .~ if·· .. >-' o o ~off Ball, 315 Bryant Street, Palo Aito, CA 94301 Jim Baer, Ware & Friedrich, 400 Hamilton Avenue, Palo AltG~ CA 94301 Melissa Biggs, 30! Bryant Street, Palo Alto, CA 94301 lrv Brenner, 250 ByrQr. Strfet, Pale Alto, CA 94301 (unseo & Associates, 120 Hami1ton Avenue. Palo AHo, (A 1)4301 loretta and Jim Cesar;. 2:38 Bryant Street, Pil10 Al to, CA 94301 Kathleen Craig, lei Wa.erley Street, Palo Alto, CA 94301 Rilph Cressman, 360 Everett Avenue, Palo Alto, CA 94301 Marv1n H. Feinstein, P. o. Box 1461, Palo Alto, CA ~4302 Andrew Gottlieb, 309 Bryant StreEt, Pilo Alto, cA 94301 James A. Koch, 2666 East Sayshore Road, Palo Alto, CA 94303 The Martin Re~ocable Living Trust, 2345 Yale Street, Palo Alto, CA 93061 Dorothy Merriam, 365 Everett Avenue, Palo Alto, CA 94301 Joe Meyers, 301 Bryant Street, Palo All~. CA 94301 Mid-Prninsula Housing Coalition, Fran Wag~~iff, Executive Director, 430 Sherman Avenue, Suite 203, Palo Alto, CA 94306 Jim Morley, 160 Waverley ~treet. Palo Alto, lA ~4)OI Palo Alto Housing Corporation, Marlene Prenderga$t, Exe,ut~ve Director~ S40 Cowper Street, Suite G, Palo Alto, CA 94301 Nancy Pl.ibel, 301 Bryant Court, Palo Alto, CA 94301 E. M. Schaffran & Co., 700 Hancock Way, El Cerrito, CA 94530 lor.a Slf,ith, 162 8ryant Street, Paio Alto, CA 94~OI PatriCia Ward-Doll"s, 412 Everett P .• en"e, Palo Alto, CA 94301 CIt~:506:92 ~:\cnv\Ivtton4 11/5/92 Page S . -,..., . . ""~_:~~~:t(: -". '''''" ATT~CHMENT I 1. setting qo~ls and providlh9 technical Assistance or ~ro8.-training as nece.s~ry. 2. Detailing personnel trom etronq to weak offices for 4 brief per1o~, to aS5ist the weak offi~e to improve its pertorma~ce. 3. Frovidi",g each Office, 1 ... A pz'intout of its pipeline CilSU by Fiseal Year, inclu~inq all project& tor vhi9h fund r.servationa have been issued, and which have not reached initial closing. b. Aavlce on how it rank.d in relation to other Pield ofticas vithin tho Region. D. HlodquArter.~ Monitor Reqional Ott1ces l performance by: 1. 2. Uoing the tracking oyota. •• the pr'ma~ data source, althouqh copi.s ot extension letter. and NotiC" of Intant to Cancel vill be revieWed. Conducting on-site review. of tho Re;ion. vhich vill include review. at the ~9ion .. l ottlco' • • nendon tile •• 3.. Providing regular f.edbaclc. !aeh quarter, the Region will receive: a. Ita ranking, wit~ r .. pect to other Regions, ba •• 4 on the averave length ~t time it has taken projeots to reach initial closing dlll'ln; tI>. last quarter. b. A written evaluation of ita performance, based en all data available to Headquarters, including racoaaendations tor improvement. SITE CHANGES. The ri.ld Office Managers hAve the authority to approve a change in lites based on the following' A. The owner has submItted n written request to ~ ~ to the Field Offioe, along with supporting justification. 7/92 .. ? t [ 4571.5 ] o ATTACHMENT 1 PL--. _J 7/92 B. The 71.14 Ofeice start bA, dlt.rwined ~: 1. The new 8itca i •• ,,zual to or bet-tar than the oriqlnal site in order to not alter tha fairness ot the fundin~ competition in tho tis cal year in which tha proJect ~a. funded~ 2. There 1 •• market demand ror the housinq at the it • .., location. 3. The new site location is consi8tent with the approved comprenensive Aftordable Housing Streteqy and meet. ait. and neiqhborhood . atandard.a. 4. The appropriate stat. or local 89ancy haB certified that the provieion of •• rvice. at the new location is well d.signed to Serve the special n •• d. of the cate90ry or elderly p.~.on. the housinq i. intended to aerve (if ntv location i. out. ide of the jurisdiction ot the State or local aqency ~at originally certified). 5. The n.w .ita 1s environmentally equal to cr better than the pr.vio~ lite. A complete environmental asse • .m~nt (us1nq Fora HUD-.128, Environmental As ••••• ent, or Form HUD-4128.1, Compliance lind LAC Condic1on$ Record), includinq (where applicable) EO-11988 ('loodplain Xanaqament) 8-step proc ••• , Historic Prea.rvation (Sec~1on 106 proee •• J, etc., must be prepared, oi;ned and approved by the Housinq D.v.lop~.nt Dir.cto~. 6. Tha nBW site 1s in tha same market ~rea as the original aite, if pos.ible. The Otfica may PG~it ill; awl tch to another market area it the Owner adequately documents that' a. No other acceptable aita. are av~ilable in the s.m_ market are4. b. It is unable to provide necessary services, unless th6 project is relocated to another market area. C. ~ard copieB of any approvals to change Sit9~ tg the ~eglonal Housin~ Director and the Director, Housing ~or Elderly and Handic.pped People Division in Headquarters ~ --1 1-66 • p. 2