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CITY OF RIVERSIDE Riverside ~ A1~America n , 1111. AGENCy/COUNCIL MEMORANDUM People Serving People 1998 HONORABLE MAYOR, CITY COUNCIL AND AGENCY MEMBERS DATE: December 18,2001 ITEM NO: 5 SUBJECT: PUBLIC HEARING: REQUEST APPROVAL OF DISPOSITION AND DEVELOPMENT AGREEMENT FOR HABITAT FOR HUMANITY DEVELOPMENT OF TWO LOTS AT 4206 PARK AVENUE; AND APPROVAL OF A RESOLUTION AUTHORIZING THE LAND DISPOSITION AS A PUBLIC BENEFIT TO THE ELIMINATION OF BLIGHT AND PROVISION OF AFFORDABLE HOUSING - UNIVERSITY CORRIDOR I SYCAMORE CANYON REDEVELOPMENT PROJECT AREA- FUNDS TRANSFER BACKGROUND: Founded in 1976, Habitat for Humanity is a nonprofit organization dedicated to eliminating substandard housing and homelessness worldwide while making adequate, affordable shelter a matter of public conscience and action. Habitat utilizes volunteer labor and donated materials to build houses that are sold to very low income residents for no profit and with no interest charged on the mortgage. Mortgage payments collected on Habitat homes are recycled into a fund that is used to build additional housing. Prospective Habitat families are required to invest 500 work hours (sweat equity) into their home in order to reduce the monetary cost of the structure, foster partnerships with other people in the community, and form a sense of ownership in the neighborhood. Since 1976, Habitat for Humanity has built over 100,000 homes worldwide. , The local affiliate, Habitat for Humanity Riverside ("Habitat") was formed in 1988 by a group of concerned citizens and nonprofit organizations. Since its inception, Habitat Riverside has built 14 new homes throughout the County, and has rehabilitated 6 homes. Habitat has recently completed a home on 9th Street near Eucalyptus. This project was a partnership between Habitat and the City of Riverside Redevelopment Agency, which sold the land at a reduced price to Habitat and provided money for permits and fees. CURRENT ISSUE: The Redevelopment Agency of the City of Riverside currently owns two parcels at 4206 Park Avenue (APN # 211-232-006 and 211-232-005, see Map Exhibit A). This property was acquired in 1992 with Low-to-Moderate Income 20% Housing Set Aside funds. In the last few months, Habitat for Humanity Riverside has expressed an interest in further partnerships with the City. Since the size and zoning of the site are ideal for building Habitat homes, staff met with Habitat and proposed a partnership to develop two single family homes on the Park Avenue site. The proposed partnership would be similar to the 9'" and Eucalyptus agreement: the City would sell the land to Habitat for $1 a parcel and provide $20,000 per house ($40,000) for fees and permits. Habitat would screen and select low-income occupants (60% or below the County median income) and would build the houses. In the past, members of the Agency and the community have expressed concern that affordable housing match the style of the surrounding neighborhood. In response to this concern, staff has negotiated with Habitat to provide facade details befitting the neighborhood style (See example, Exhibit B). However, 5-1 ~