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01/08/2008 CC Rpt A13 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY ii, 7.-:-7. ,----Tst Meeting Date: January 8,2008 RECEIYF... D Public Hearing: 0 2E2 Jil:i -2 Pm 3: 07 Discussion Item: 0 •:=:-IN:4'.4:::. \:4 Consent Item: 0 CTTY OF CHINO HILLS OFFIC .........-. .... Chlii6 HILLS ER January 1, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: TRANSFER AGREEMENT BY AND BETWEEN THE CITY AND POMONA VALLEY HABITAT FOR HUMANITY, INC. AUTHORIZING CONVEYANCE OF REAL PROPERTY LOCATED AT 4646 FAIRWAY DRIVE FOR CONSTRUCTION OF ONE SINGLE-FAMILY DETACHED AFFORDABLE HOME RECOMMENDATION: Authorize execution of a Transfer Agreement with the Pomona Valley Habitat for doHumanity, a California non-profit corporation, which authorizes the City to convey land without financial exchange located at 4646 Fairway Drive for the construction of one single-family detached affordable home, in a form acceptable to the Assistant City Attorney. BACKGROUND / ANALYSIS: In May 2007, the City Council, following extensive work with an Advisory Committee, directed staff to implement the first phase of a two-phased affordable housing plan. One directive of the first phase was to partner with non-profit organizations to build affordable housing projects, including housing for first time homebuyers. Relative to this measure, the City's involvement was to primarily include the identification and/or provision of land opportunities. Over the past several months, preliminary discussions have ensued between City Staff and representatives from the non-profit organization, Pomona Valley Chapter Habitat for Humanity (Habitat). This organization is internationally recognized for its efforts to provide affordable housing for first time homebuyers. They have a solid track record in surrounding communities within their Chapter, with existing and/or active projects in Chino, Pomona, Rancho Cucamonga, Ontario, Upland, La Verne, Claremont, and Montclair. For the past several years, Habitat for Humanity has showcased the building of at least 410 one Habitat home at the County Fair. This year, the Pomona Valley Chapter of Habitat for Humanity expressed their desire to partner with the City to build and locate the first /9/3 AGENDA DATE: January 8, 2008 PAGE 2 do SUBJECT: TRANSFER AGREEMENT BY AND BETWEEN THE CITY AND POMONA VALLEY HABITAT FOR HUMANITY, INC. AUTHORIZING CONVEYANCE OF REAL PROPERTY LOCATED AT 4646 FAIRWAY DRIVE FOR CONSTRUCTION OF ONE SINGLE-FAMILY DETACHED AFFORDABLE HOME Habitat sweat-equity home in Chino Hills. The initial construction phases of the house would be built at the upcoming Fair this next September. Staff has reviewed potential City-owned vacant sites and has identified a viable site in the Los Serranos neighborhood (see Attachment A for location and project parameters). This site is appropriate in that it is vacant; the size is amenable to Habitat's site parameters of a prototypical house site plan, and the demographics of the area cater to the affordable nature of the program. Habitat is sensitive to the need for the house design to blend into the streetscape of the local neighborhood and has indicated their willingness to accommodate this requirement. Government Code Section 37350 states "A City may purchase, lease, receive, hold, and enjoy real and personal property, and control and dispose of it for the common benefit". Further, Government Code Section 50570 states "...a local agency, or any department, agency or authority thereof may lease, sell or grant or otherwise transfer any real property, including air rights owned, held or controlled by it and found to be in iipexcess of foreseeable needs under this article, to any housing corporation, limited dividend corporation or nonprofit corporation, upon such terms and conditions as any other provisions of law notwithstanding the local agency may deem to be best suited to the development of the parcel for housing available to persons and families of low or moderate income at affordable housing cost ...". The Transfer Agreement provides for the land transfer of the identified site from the City to Habitat for Humanity. They will not only accept the land but all responsibilities and requirements associated with said land in order to construct one single family detached house with garage on the site as a self-help, "sweat equity" project, and, in turn, sell the house to a person or family at an affordable housing cost; person or family's income which does not exceed eighty percent (80%) of the San Bernardino County area median income, adjusted to family size. In consideration of the City's conveyance of the site to Habitat for the construction of an affordable house, the house will be restricted to an affordable housing cost for a period of not less than forty-five (45) years. Time is of the essence to be ready for the Fair date (mid-September 2008). Habitat will submit a request for site plan approval by the Planning Commission (January/February), and a short escrow will be entered into and closed (January/February) providing Habitat with the land and entitlement to proceed. From that point, Habitat will facilitate their program of finding an appropriate income qualifying homeowner (January —April) followed with other parameters to ready the site and project for the Fair date showcase (September). The entire project is estimated to be completed around February 2009. • This action and resulting project implements certain objectives of Phase I of the City's Affordable Housing Plan. The project will be a demonstration to the State regarding S:\Community DevelopmentCity Council\CC Staff Reports‘2008V1-8-08CC Staff Report for Habitat for Humanity.doc AGENDA DATE:January 8, 2008 PAGE 3 do SUBJECT: TRANSFER AGREEMENT BY AND BETWEEN THE CITY AND POMONA VALLEY HABITAT FOR HUMANITY, INC. AUTHORIZING CONVEYANCE OF REAL PROPERTY LOCATED AT 4646 FAIRWAY DRIVE FOR CONSTRUCTION OF ONE SINGLE-FAMILY DETACHED AFFORDABLE HOME efforts toward implementing the City's affordable housing plan; aiding in providing a viable affordable housing response to the State Department's Housing and Community Development (HDC) requirements. REVIEW BY OTHERS: This item was reviewed by the Community Development, Community Services and Finance Directors, City's consultant, Lucy Yeager &Associates and the Assistant City Attorney. FISCAL IMPACT: The fiscal impact of this project to the City is associated with labor costs for staff, consultant and legal personnel to prepare and facilitate necessary documentation relative to the project. Costs associated with processing and transfer of land to Habitat for Humanity is estimated between $30,000 and $50,000 and will be paid from the Housing In-Lieu Fee Fund. Respectfully Submitted, Recommended by: 1‘. DouglarN. La Belle ?tiff Christine Kelly City Manager Community Development Direct( DLB:LY:CK:kp Attachment A: Location Map/Project Parameters 1110 SACommunity DevelopmentkCitytouncACC Staff Reports12008‘1-8-081CC Staff Report for Habitat for Humanity.doc CITY OF CHINO HILLS Exhibit "A" , -- 4•••4.7," ,•-'.••.4, . ., •• A,-,-..... .,,,,440,4 t ,,... ,...„r,,,--.-..-..-,.—.. .,..,,._..,,,.,?„. „,r,t„ i.=, -...•. 4_4.4._ 4..,,-.i,r.'•,-,:1li4--.B-:,',,.%..-'„Lf'-4..4-.4,,,w-'••,;.'r-- 1 '4,,,, -0',,,774.4-V•'7,,„, , "•'' •••'•'' '-' 0,” In•l..., "----,,-...2.m'...- -v.-.._.v,”.7_='','.•4:o'f,-.'''..f,'.'4,,1'r,71;K::-;7:,;.;,.L.4.i,:t0.;LA1..7:444r'e4:.:V -:."••'"! f "rE',1.=iA..:.r7'a,4'''',5•-2U$-1:::',O,.ff,t-•-,-ff i$ , - 4 ' 4rr-7-'1.•1• k11 ''•'• - 1 1L6:.t,"*,:of*,-'L_:•it-,...,4..4-:.•-_'-__•••_;7•_'7,4'.41_7T_.::',•••`-'' •.,,e-.'••1..4...,„r“';-'',._.4''.:/`',Z.,.-,;..,',t-••4q",,,r4.,4-".-...0.-..;.3e40'7'N'„4V',,-W,'i,",",.P4,,i";'141,, r....1 5 i, r.;..._,.... .. 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