HomeMy WebLinkAboutHA34970 Allied AH, LLC - Extend Entitlements PP-CUP 16-102STAFF REPORT
JOINT CONSIDERATION
CITY OF PALM DESERT/PALM DESERT HOUSING AUTHORITY
COMMUNITY DEVELOPMENT and HOUSING DEPARTMENTS
MEETING DATE: May 9, 2019
PREPARED BY: Eric Ceja, Principal Planner
Jessica Gonzales, Senior Management Analyst
REQUEST: Consider a request by Allied Affordable Housing, LLC to extend Case
No. PP/CUP 16-102 entitlements for the proposed development of
the Arc Village Project and Contract No. HA34970 at the Authority
vacant property known as APN 622-020-096
Recommendation
By Minute Motion, that the City Council and Authority Board,
1) Consider a request by Allied Affordable Housing, LLC to extend Case No.
PP/CUP 16-102 entitlements and Contract No. HA34970 through May 17,
2020 for the proposed development of the Arc Village Project at the
Authority vacant property known as APN 622-020-096; and
2) Authorize legal counsel to prepare and finalize an extension contract; and
3) Authorize the Chairman and/or Executive Director or her designee to
execute any necessary actions including the negotiated extension contract
and any documents necessary to facilitate the contract and the Arc Village
Project.
Strategic Plan
One of the priorities of the City's Envision Palm Desert Strategic Plan as part of Land
Use, Housing and Open Space is to facilitate development of high quality for people of
all income levels. This request meets that objective by diversifying the City's housing
stock and pursuing development of housing for low income households.
Executive Summary
Approval of this request will allow an extension to the Arc Village Project ("Project")
entitlements and Contract No. HA34970, the Ground Lease and Regulatory Agreement
("Lease"), in order to allow Allied Affordable Housing, LLC, ("Allied"), to secure funding
needed for the Project.
May 9, 2019 — STAFF REPORT
City/Authority — Consider Extension of Case No. PP/CUP 16-102 entitlements and Contract No. HA34970
Page 2 of 3
Staff is recommending an extension of both the entitlements and Lease for the Project
through May 17, 2020.
Background Analvsis
On January 14, 2016 the Authority approved the Lease with Allied for the purpose of
developing the Project, a 36 unit affordable housing project for adults with special needs
including developmental disabilities at the Authority owned property known as APN 622-
020-096 located behind Desert Arc, 73-255 Country Club Drive. Thereafter, on May 17,
2016, the City's Planning Commission approved entitlements to allow Allied to construct
an 8,579-square-foot community center building, and the Project.
After three (3) separate attempts for tax-exempt financing with the State's Tax Credit
Allocation Committee and receiving a perfect score each time, Allied was not successful
in securing the original intended financing monies for the Project.
Allied requested the extension to allow more time for submittal of application for newly
identified funding sources and for the expiration dates to align for both the City's
planning entitlements and Lease. On August 23, 2018, the City Council and Authority
Board considered the request and approved an extension of the entitlements and Lease
for the Project through May 17, 2019.
Since then, Allied submitted an application for HOME funds and was recently notified
that the Project was not being awarded. Although Allied was able to secure funding in
the form of vouchers from the Riverside County Housing Authority, additionally financing
is necessary. Allied has provided a written request to the City and the Authority for
consideration of an additional extension to both the Lease and entitlements for the
Project. With the Project extension and the Lease through May 17, 2020, Allied will be
able to seek additional funding sources and secure the financing gap needed to develop
this Project.
Staff considers Allied's request of an extension of both the entitlements and the Lease
for the Project to be extended through May 17, 2020 acceptable. Staff therefore
recommends that the City Council and Authority Board approved this request and
related actions.
Fiscal Analvsis
There is no fiscal impact to the City and the Authority in connection with the proposed
request. There is also no impact to the General Fund.
C \Users\eceja\AppOata\LocaWicroso%Wk&ws\Temporary Intemet Fdes\Content 0utbok\2MAQ8AZ\PDHA — Staff Report - Arc Viage Extensan 2019 (002) Ooc
May 9, 2019 - STAFF REPORT
City/Authority - Consider Extension of Case No. PP/CUP 16-102 entitlements and Contract No. HA34970
Page 3 of 3
LEGAL REVIEW DEPT. REVIEW DEPT. REVIEW FINANCIAL CITY
REVIEW MANAGER
NIA Ry�tendell�-j?et�Moore
(944"'yRobert W. Hargreaves t Moore Director of Community Lauri Aylaian
City Attorney Director of Finance Development Director of Finance City Manager
LESEE/APPLICANT: Allied Affordable Housing, LLC ("Allied").
ATTACHMENTS: Allied Affordable Housing, LLC Request for Extension
(Letter dated April 10, 2019).
G 1HOUSING1Jessca GonzaleslSTAFF REPORTSVO191POHA --Staff Report- Arc Village Extension 2019 final doc
AK AlliedArgenta
NV
ALLIED AFFORDABLE HOUSING
April 10, 2019
Mr. Eric Ceja
City of Palm Desert
Planning Commission
73-510 Fred Waring Drive
Palm Desert, CA 92260
Dear Mr. Ceja and Mrs. Gonzalez,
Mrs. Jessica Gonzalez
City of Palm Desert
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
On August 23, 2018, the City Council approved the extension of the lease agreement and entitlements
for Arc Village to secure the funding needed for the project. The Arc Village Development Team has
been working diligently to secure the financing needed to develop this project. Since August, we were
able to secure six project -based vouchers from the Riverside Housing Authority and were close to
securing the HOME funds to leverage with 4% low income housing tax credits (we were 10 points away
of an award this past round). We are requesting the City and Authority grant a one-year extension for
the ground lease and entitlements (with no changes) for Arc Village to attempt the HOME application
one more time along with other potential sources we have identified.
We know this has been as frustrating for you, as it has been for us, but we do not want to give up yet.
Below is a timeline of funding rounds we have applied for and the funding rounds we are hoping to apply
for assuming a contract extension.
Funding Rounds Applied For:
• CTCAC 9% Low Income Housing Tax Credits: March 2017 & June 2017
• HCD HOME: December 2018 (to combine with 4% noncompetitive LIHTC)- we were 10 points shy from
last funded project
• Riverside Place Based Vouchers: 2017 proposal (not funded); 2018 proposal (funded 6 vouchers)
Funding Rounds Applying For in 2019:
• HCD HOME (Application due September 2019)
• HCD MHP (Application due June 2019)
• Riverside Housing Authority Vouchers (TBD)
• CTCAC 4% noncompetitive LIHTC—applications due every other month (will apply as soon as funding
gap is bridged with commitments)
• Riverside Housing Funds (TBD)
409 Santa Monica Blvd, Suite E www.alliedargenta.com OFFICE 310 394 9090
Santa Monica. CA. 90101 FAX 310 394 3030
AN AlliedArgenta
NJALLIED AFFORDABLE HOUSING
We continue to work closely with City staff and Desert Arc to work collaboratively on pushing this project
forward and continue to pursue all funding opportunities that support these developments. Thank you in
advance for your continuous support, guidance, and consideration. Should you have any questions you
can reach me at (310) 906 4936.
Sincerely,
+Ob�
Yvonne Delgadillo
VP, Community Development
409 Santa Monica Blvd, Suite E www.alliedargenta.com OFFICE 310 394 9090
Santa Monica, CA 90401 FAX 310 394 3030