Heritage Square South Development Options

1. Heritage Square SouthDevelopment Options William K. Huang, Housing Director February 5, 2018

2. Heritage Square Senior Apts Church’s Chicken Decker House Heritage Square South Site Fair Oaks Ave. Painter St. Orange Grove Blvd. Wheeler Lane

3. Heritage Square History Mr. Tom Scott unsuccessfully attempted to develop housing on a portion of the site. City acquired Mr. Scott’s site and additional parcels then unsuccessfully attempted to develop the site. City again attempted to develop the site and entered into an Exclusive Right to Negotiate with Retirement Housing Foundation who were unable to fund their proposed development.

4. Heritage Square History • City bifurcates the site • Phase I affordable senior housing (North) • Phase II commercial development (South) • Phase I successfully completed (Heritage Square Senior Apartments) • Redevelopment was dissolved • Phase II site designated as an “affordable housing asset” • City lost $3-$4M per year in affordable housing funds

5. Bifurcated Plan Fair Oaks Ave Orange Grove Blvd Painter St Phase II – Commercial Phase I - Residential Wheeler Lane

6. Heritage Square Senior Apts • Heritage Square Senior Apts • Bridge Housing • Heritage Square North (69 1-bedroom units for very low income seniors) • On Time & On Budget • Outstanding Local Benefits & Local Lease Up • LEED Platinum • Winner of multiple awards

8. Heritage Square South Requirements • Site was determined by the State to be an “affordable housing asset” • Site was acquired exclusively with affordable housing funds • If the site is not used primarily for affordable housing it must be sold with sales proceeds restricted for affordable housing • Decker House and Churches Chicken to be relocated

9. Key Questions for Development Options Does the option meet the State’s housing asset requirement? What is the need for the proposed housing type? Are non-City funds available to leverage to build the project? Can the project help the City meet its housing funding commitment and expenditure requirements?

10. Key Questions for Development Options Can the project use Project-Based rental subsidies? How many housing units will the option likely include? How many of those will likely be affordable and at what income levels?

11. Options Senior Housing Options 1. Permanent supportive housing apartments for homeless seniors 2. Affordable senior apartments Apartments Options 3. Affordable family apartments 4. Market rate apartments 5. Mixed income apartments

12. Options Condominium Options 6. Affordable condos 7. Market rate condos 8. Mixed income condos Land Sale Option 9. Sell property

13. Option 1 – PSH Homeless Seniors OPTION 1: Permanent Supportive Rental Housing for Homeless Seniors

14. Option 2 – Affordable Senior Housing OPTION 2: Affordable Senior Rental Housing

15. Option 3 – Affordable Family Apts OPTION 3: Affordable Family Rental Housing

16. Option 4 – Market Rate Apts OPTION 4: Market Rate Apartments

17. Option 5 – Mixed Income Apts OPTION 5: Mixed Income Apts

18. Option 6 – Affordable Condos OPTION 6: Affordable Condominiums

19. Option 7 – Market Rate Condos OPTION 7: Market Rate Condominiums

20. Option 8 – Mixed Income Condos OPTION 8: Mixed Income Condominiums

21. Option 9 – Land Sale OPTION 9 – Land Sale • Current zoning requires mixed-use development • Estimated land value: $6,500,000 • Repay HOME funds ($1,500,000) • Restricted Housing funds $5,000,000 • City’s sunk costs & revenues • Land purchase: ($5,200,000) • Relocation & Demolition: ($ 600,000) • Revenues $ 570,000 • Net Housing Proceeds: ($ 230,000)

22. Potential Overconcentration Heritage Square South