CLEARLAKE – City staff received direction during the Clearlake City Council”s regular meeting on Thursday, June 12, to proceed with a loan agreement that will ultimately satisfy the Redevelopment Agency”s obligation in providing low-income housing. The agreement, with Global Premier, will add 154 units to the city”s low-income housing stock.
Global Premier intends to build a low-income apartment complex at the intersection of Old Highway 53 and Austin Drive. The project is identified as the Edgewater Village Project. Original plans were for an all age group, low-income housing project; however, City Administrator Dale Neiman reported Thursday that as a result of negotiations, the project has been changed to a low-income senior housing project.
With the loan agreement, the city will acquire affordability covenants on 154 housing units, including covenants on the Adagio, Olympic Village and Edgewater apartment projects.
California Redevelopment Law requires that at least 15 percent of all new housing units developed within the redevelopment project area for the 20 year implementation period be occupied by low- and moderate-income residents at an affordable cost.
This is commonly referred to as the housing production requirement. The dwelling units can count toward meeting the 15 percent requirement only if they have an affordable covenant that requires they remain affordable for 55 years for rental units and 45 years for owner-occupied units.
According to Neiman”s report, between 1990 and 2008 a total of 1,118 housing units have been built in the redevelopment project area, leaving the agency with a requirement to have affordability covenants on 168 homes.
Currently, the agency has covenants on 38 housing units through the Walnut Grove Apartments, which are also senior housing. “Walnut Grove has 38 units that are income restricted,” Neiman said. “Therefore, we need to enter into agreements for another 130 housing units.”
The agency entered into an agreement with Star-Clearlake Commons during the May 22 meeting that will result in obtaining affordability covenants on 91 units that will be the Ridge Lake Apartments (currently the Clearlake Commons and Village Apartments.) “In conclusion, we would have affordability covenants on 238 housing units,” Neiman said.
The agency is currently in the process of requesting an extension on the implementation period, which is subject to approval by the Department of Housing and Community Development. “We believe the key to obtaining their approval is being able to show them we have made substantial progress toward meeting our housing production requirements,” Neiman explained.
Staff recommended a loan in the amount of $700,000 with a simple interest rate of 3 percent for a term of 30 years. The agreement will include a renegotiation clause at year 10 and year 20.
The purpose of the loan is to help finance the costs associated with the developer impact fees being collected by various governmental agencies. According to Neiman”s report, impact fees are expected to be allocated as follows: school district, $159,181; streets and signs, $6,063; fire facilities, $26,631; water facilities, $185,650; waste water collection, $205,202; and drainage facilities, $175,000.
A public hearing to consider modification of the site plan for the Edgewater Village use permit application comes before the Clearlake Planning Commission on Tuesday at 6 p.m.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.
