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CITY OF RIVERSIDE
<br /> COUNCIL/AGENCY MEMORANDUM
<br />
<br />Honorable Mayor and City Council
<br />Redevelopment Agency
<br />
<br /> Date: June 19, 2001
<br />Item No.: 10
<br />
<br />Subject:
<br />
<br />Request for Affordable Housing Subsidy Agreements for Redevelopment Agency Low To
<br />Moderate Housing Bond Funding and for HOME Investment Partnership Act Funds to
<br />Complete Renovations on The Indiana Avenue Townh0mes Project between Jackson and
<br />Monroe Streets in Riverside - Funds Transfer
<br />
<br />Background
<br />
<br />On June 16, 1998, February 23, 1999, August 10, 1999, and again on January 11, 2000 the City Council and
<br />Redevelopment Agency approved the conceptual format and budgetary transfers necessary for a program to begin
<br />housing revitalization in an area of 32 four-plex units along Indiana Avenue, between Jackson and Monroe Streets
<br />(;'Project"). The concept for revitalizing the Indiana fourplexes called for the acquisition of groups of seven
<br />buildings, with a plan to reduce unit density (one bedroom units to two and three bedroom family units), creation
<br />of off street parking and green spaces, and to systematically vacate a troublesome alley. To date, with City
<br />assistance, the Riverside Housing Development Corporation (1LFIDC) has successfully completed purchase 8797,
<br />8957, 8947, 8935, 8921, 8911, 8835, 8865, 8851 (aka 8855), 8859, 8879, 8883 and 8893 Indiana Avenue
<br />(Approximately $1.125 Million in HOME Investment Partnership Act funds). Previous to the HOME
<br />acquisitions on Indiana Avenue, the Redevelopment Agency invested $150,000 in Agency Low to Moderate
<br />Income Housing Set-Aside Funds to finance RHDC's purchase and demolition of 8883 Indiana. RHDC is
<br />currently in the building permit, lot line consolidation, and alley vacation process for rehabilitation of the first
<br />twelve fourplex buildings (See Exhibit).
<br />
<br />Facing a nearly $900,000 project deficit on the original "cluster" concept, staff and RHDC met in early 2001 to
<br />revisit the Indiana Project and find ways to deliver a quality project for less cost. The original scheme to reduce
<br />the four-plex buildings to tri-plex units with bigger apartments was abandoned in favor of maintaining the original
<br />unit count and configuration (which would allow RHDC to borrow more private financing on the Project). It was
<br />decided at that time to maintain the original unit configurations in the Project, but continue with the other
<br />renovations envisioned in the original "Cluster" concept (i.e., the alley vacation, off street parking, and major unit
<br />rehabilitation). This change would allow RHDC to borrow more private capital by increasing cash flows in the
<br />Project, and therefore reduce the City/Agency's already substantial obligations.
<br />
<br />Current Issue
<br />
<br />Staff is requesting approval for $1,610,000 in both Low to Moderate Income Bond Funds ($851,340) and HOME
<br />Investment Partnership Act funds ($758,660) to finance renovations in the Project. This renovation will upgrade
<br />all major mechanical systems, add new roofs, substantially renovate fourplex interiors and exteriors, provide for
<br />lighted off-street parking, vacate a back alley, provide common green space, and add an on-site management
<br />office and laundry room.
<br />
<br />Analysis
<br />
<br /> For the purposes of creating affordable housing for low to moderate income for City of Riverside residents, the
<br /> City will encumber 8797, 8957, 8947, 8935, 892 l, 8911~ 8835, 8865, 885 l (aka 8855), 8859, 8879, 8883 and
<br /> 8893 Indiana Avenue (Thirty-Five units in all) in the following fashion:
<br />
<br />7 units at 50% of median
<br />
<br />10-1
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