For City Council Meeting [June 9, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Matt Schneider, Community Development Director
Title
Request City Council and Rialto Housing Authority to Set a joint Public Hearing for June 23, 2020 to consider a third amendment to the Affordable Housing, Financing, Disposition, and Development Agreement for a 55-unit affordable housing project (Metrolink South Project) located on the north side of Bonnie View Avenue approximately 300 feet west of Riverside Avenue (APN: 0131-021-40).
Body
BACKGROUND
Applicant
Rialto Metrolink South Housing Partners, LP, 18201 Von Karman Avenue, Suite 900, Irvine, CA 92612
Project History
Rialto Metrolink South Housing Partners, LP proposes to develop a 55-unit affordable housing project on the north side of Bonnie View south of the City’s Metrolink Station. The project was originally approved in 2016 and has been modified since then, as follows:
• On June 28, 2016, the original Affordable Housing, Financing, Disposition and Development Agreement (Agreement) between the Rialto Housing Authority and the developer was approved for the development of a 64-unit affordable housing project on two parcels owned by the Rialto Housing Authority.
• On December 12, 2017, the first amendment to the Agreement was approved to facilitate a public parking lot on one of the RHA parcels and develop a smaller affordable housing project on the other parcel, increase the pre-development loan, and extend the Agreement.
• April 9, 2019, the second amendment was approved to require the developer to obtain updated entitlements for a revised project and obtain a third amendment to the Agreement to memorialize the project changes and extend the agreement.
• On December 11, 2019, the revised project (55 unit) was presented to the Economic Development Committee to review the project changes that would be considered by the Design Review Committee. In addition, the applicant advised that they would be seeking to amend their Development Agreement to memorialize the project changes before moving forward with their California Tax Credit Allocation Committee application in the Spring of 2020.
• On December 18, 2019, the Design Review Committee approved a revised project with 55 units.
ANALYSIS/DISCUSSION
As required by the second amendment to the Agreement, Rialto Metrolink South Housing Partners, LP submitted a revised third amendment to the Agreement in May 2020 for review and approval. Staff is currently reviewing the project pro forma and amendments to the Agreement. The developer is currently preparing an application to the California Tax Credit Allocation Committee (CTCAC) for tax credits for the project, which is due by June 30, 2020. The application materials submitted to CTCAC must include current entitlements documents, including an amended Development Agreement to reflect the current scope of the project.
ENVIRONMENTAL IMPACT
A Mitigated Negative Declaration (Environmental Assessment Review No. 15-67) for the development of a sixty-four (64) unit affordable housing apartment complex on the project site was adopted on June 28, 2016, in conjunction with the approval of the original Agreement. On November 4, 2019, Michael Baker International, Inc. prepared an Addendum that analyzed a reduction in the number of dwelling units proposed from sixty-four (64) to fifty-five (55).
Under the California Environmental Quality Act (CEQA), an Addendum to an adopted Mitigated Negative Declaration is appropriate when changes to a project do not result in any new significant impacts or substantially increase the severity of previously identified significant impacts. The Addendum determined that the project changes will likely result in a reduction in impacts compared to the ones analyzed in the adopted Mitigated Negative Declaration because fewer units will be built. Additionally, the Addendum states the reduction in units will not result in any new significant impacts or increase in the severity of any previously identified impacts. The Addendum is not required to be circulated for public review; however, it will need to be considered by the City Council prior to making a decision on the third amendment to the Agreement.
GENERAL PLAN CONSISTENCY
An Agreement to facilitate affordable housing is activity is consistent with Goal 6-2, which is to “promote and encourage housing development that adequately meets the needs of all socioeconomic segments of the community and region.
LEGAL REVIEW
The City Attorney has reviewed and approved the staff report for this item.
FINANCIAL IMPACT
Operating Budget Impact
In adopting the original Agreement, the City Council and Rialto Housing Authority authorized the use of $4,550,000 from housing bonds issued by the Rialto Housing Authority in 2008 as the Tax Allocation Housing Bonds 2008 Series B (Taxable Bonds). Additional information on the financial impact of the project will be presented when the pro forma and amendments to the Agreement are finalized.
Capital Improvement Budget Impact
There is no capital improvement budget impact.
Licensing
There is no licensing associated with this request.
RECOMMENDATION
Staff recommends that the City Council Set a joint Public Hearing for June 23, 2020, to consider approval of a third amendment to the Affordable Housing, Financing, and Disposition and Development Agreement.