Concord Committee to Consider $6.4 Million Affordable Housing Funding Request

On Tuesday, November 29, the City of Concord Council Committee on Housing and Economic Development will hold a special meeting to consider awarding affordable housing funds, update its affordable housing ordinance and recommend a $500k ARPA fund allocation.

Considering – the award of $6.64 Million in Affordable Housing Funds to Eden Housing for the acquisition and minor improvements of a 116-unit project comprised of Coral Court Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord. Report by Sophia Huckabay, Housing Program Analyst

In October 2022, Eden Housing, a non-profit affordable housing provider, made the City aware of two market-rate, naturally occurring affordable housing (NOAH) complexes that are being sold off-market as part of a package deal and total 116 units: Coral Court and Sunset Pines Apartments located at 1491 Detroit Avenue and 1770 Adelaide Street, respectively. Eden is requesting $6.64 Million in City Affordable Housing funds to acquire and improve the Project, and to income-restrict the property for workforce housing for a period of 55 years.

Recommended Action
Forward a recommendation to the City Council for the award of $6.64 Million in Affordable Housing Funds to Eden Housing for the acquisition and minor improvements of a 116-unit project comprised of Coral Court Apartments, 1491 Detroit Avenue, Concord, and Sunset Pines Apartments, 1770 Adelaide Street, Concord.

Analysis

Funding Request
Eden Housing is requesting $6.64 Million in City Affordable Housing funds to partially subsidize the cost of acquisition of Coral Court and Sunset Pines Apartments, and to preserve its long-term affordability. The total purchase price of the Project is $37,250,000 for 116 units. This translates to a City subsidy of approximately $57,000 per unit. The City’s subsidy would allow Eden to substantially leverage other sources of funding to finance the remaining $33 Million, including a private funding through
Enterprise Housing and the Bay Area Preservation Program.

The Project
City funds would allow Eden Housing to purchase Coral Court and Sunset Pines apartments, preserving 116 multifamily units. Eden Housing would own and manage Coral Court and Sunset Pines Apartments.

Coral Court
1491 Detroit Avenue
47 Units
Built in 1968
Contains one- and two-bedroom units

Sunset Pines
1770 Adelaide Street
69 Units
Built in 1966
Contains one- and two-bedroom units

The current rent levels at Coral Court and Sunset Pines support households earning 80% AMI, and is a rent level that is generally considered accessible to working families. One-bedroom rents will be capped at $2,143 per month and two-bedroom rents will be capped at $2,572. These will remain in place until the State releases the 2023 income limits around May 2023, at which time the rents will be modified accordingly. Eden Housing would preserve the current 80% AMI levels for an additional 55 years

No residents will be displaced, and units will be income-restricted through natural property attrition. Eden Housing will income-qualify the current residents at the 80% AMI level. The tenants that are considered over-income will continue to reside in their home until the household vacates the unit, at which point an income-qualified household would assume the unit.

A waitlist will be maintained at each property. After the City’s Affordable Housing Loan Agreement is recorded against the Coral Court and Sunset Pines Apartments, the waitlist will be opened for households earning 80% AMI or below to apply. As unit vacancies become available, property management staff will contact waitlisted households to verify their income eligibility and qualify them for the available unit(s)

Note: The Police Department is unaware of anything chronically occurring at the Project sites.

Considering – and providing input on a proposed update to the City of Concord Affordable Housing Ordinance (CMC Chapter 18.185). Report by Mindy Gentry, Planning Manager

Staff has developed a recommended approach to the AHO update and is again seeking policy direction from the HED Committee. This agenda item will be an opportunity for the HED Committee to receive public comment and to provide input to staff on the recommended approach to the update of the AHO. If the HED Committee provides policy direction to staff during this meeting, the City Attorney’s Office will prepare an amendment to the AHO for consideration by the Planning Commission and subsequently, the City Council.

Considering – a referral from the City Council to discuss and recommend which events and amounts $500,000 of ARPA funds shall be allocated, and providing direction to staff. Report by Justin Ezell, Assistant City Manager

The City of Concord received $27 million split into two payments and expenditures must be spent by December 31, 2024.  On September 27, 2022 the City Council earmarked $500,000 of ARPA funds specifically for supporting special events as an economic development tool.

Staff is not making any recommendations on which special events to fund or the amounts as the Committee considers the $500,000. Staff does, however, request that the Committee consider funding all or a portion of two years of the sound contract ($120,000) and two years of the permitting software (60,000), which has a combined total of $180,000, in order to maintain fund balance while allowing staff to continue enhancing experiences for the community.

Agenda and Staff Report: Click here
Tuesday, November 29
5:30 pm
Garden Conference Room, 1950 Parkside Drive, Wing A
Concord, CA