COUNCIL
DISTRICT: 7
Adoption of a resolution authorizing the Director of Housing to negotiate and execute business terms for a conditional grant not to exceed $1,000,000 to Emergency Housing Consortium (EHC), for the development of 10 units of transitional housing affordable to extremely low-income households to be constructed on a portion of the parking lot of the existing Reception Center, located at 2011 Little Orchard Street.
BACKGROUND
Through a combination of Redevelopment Funds ($1,500,000), Community Development Block Grant (CDBG) funds in the amount of $1,677,614, and $373,000 in 20% funds, the Emergency Housing Consortium acquired and rehabilitated a vacant warehouse for use as a homeless shelter now known as “The Reception Center.” Located on 2011 Little Orchard Street, the Center opened its doors to homeless individuals and families in November of 1997. The Reception Center networks with other day programs, recovery programs, long-term shelters, transitional housing, and service-enriched permanent housing programs as points of next-step referral. The shelter offers guests breakfast, lunch and dinner and access to shower facilities, clean linens, towels and blankets, as well as other case management services and access to the computer lab that could potentially lead to acceptance into the Cisco Networking Academy.
The shelter was originally approved for up to 125 homeless adults and family members year round, and up to 125 additional persons during the cold weather months (November-April). In October 2000, the Planning Commission approved a modification to the shelter’s Conditional Use Permit (CUP) to allow for an increase in the number of shelter beds year-round from 125 to 250 and the addition of a new 10-unit structure to house additional homeless families as part of the transitional housing program.
On July 13, 2001, EHC submitted an application to the Housing Department for the development of the Reception Center expansion project. The expansion consists of ten transitional housing units affordable to extremely low-income households. The sponsor is requesting City funds to finance the construction costs.
The waiting list of families seeking units at EHC’s other transitional housing developments is approximately 60 names on a consistent basis. Family size varies, with single- and two-parent households with one to five dependent children, and occasionally larger families as well.
The new two-story building will be constructed on a section of the parking lot behind the current family courtyard. The units will have front doors facing the courtyard and playground area with access near the front door of the main building. A parking study, performed at the request of the City, concluded that the site could accommodate the parking required for the proposed expansion. The new units are designed as studio apartments with private bathrooms and kitchen facilities. Residents may dine at the designated meal times in the main shelter dining room at no additional cost if they choose to do so. In addition, the residents of the new units will have access to all the various services provided to the families that stay at the shelter.
The estimated cost for the entire proposed expansion is $1,091,000. The proposed source of funding for the City’s conditional grant, not to exceed $1,000,000, is the Extremely Low-Income Housing Reserve financed by the Redevelopment Agency. The grant amount will be reduced by the amount of funding EHC receives from other sources of funds, such as the Housing Trust of Santa Clara County. The grant amount is also subject to review and approval of a final construction budget by Housing Department staff. EHC will provide the balance of the funds required for this project.
In accordance with the Replacement Housing Plan, Downtown Development Projects, adopted by the Redevelopment Agency Board in June 2000 and the Replacement Housing Plan, Hellyer-Piercy Improvement District, adopted by the Redevelopment Agency Board in February 2001 (“Plans”), the 10 units affordable to extremely low-income households to be constructed as part of this development are to be designated as available to satisfy the Agency’s Replacement Housing obligation as described in the Plans.
There are no relocation issues associated with this project.
As a condition to the original Conditional Use Permit, EHC formed a neighborhood advisory committee, which meets on a monthly basis at the shelter to address and correct any neighborhood concerns. During the CUP amendment process, the sponsor continued holding these meetings and, additionally, notices were sent to the surrounding neighbors. The Planning Commission also held public hearings related to this project during its regularly scheduled meetings in November 2000.
55-year affordability restrictions are already recorded on the property and will be revised to include these ten units.
The preparation of this report has been coordinated with the Office of the City Attorney.
Funds for the project are available in the Redevelopment Agency’s Extremely Low-Income Housing Reserve Fund for Fiscal Year 2001-2002.
LESLYE CORSIGLIA
Acting Director of Housing
Attachment
Reception
Center Family Expansion Project
Fact Sheet
Development
Team
Sponsor: Emergency
Housing Consortium
Architect: Barry
Swenson Architectural
General
Contractor: Barry
Swenson Builder
Property Manager: Emergency
Housing Consortium
Project
Characteristics
Project Location: 2011 Little
Orchard Street
Council District: 7
Project Type: Transitional
Housing
Group Served: Extremely
Low-Income Families
Number of
Units: 10
(in addition to the existing 10 family rooms within the shelter)
Monthly Rent: $180-$200
Estimated Project
Cost: $1,091,000
Cost per
Efficiency Unit: $109,100
City Subsidy: Up to
$1,000,000
City Subsidy per
Unit: Up to $100,000
Grant Terms:
Security: The
City’s grant will be evidenced by a deed of trust and the recorded
affordability restrictions
Conditions: 1.
Units remain affordable to extremely low-income households for the remaining
term of the recorded affordability restrictions (55 years)
2. EHC to apply to the Housing Trust of Santa
Clara County for a loan/grant of up to $250,000
Planning
Issues
CUP: Approved
on November 29, 2000
Building Permit: Pending
Article XXXIV: Authority
from Measure D (1994) available
Relocation Needed: None required for
this project
Toxics: N/A
Estimated Project Development Timeline
November 2000 Conditional Use Permit Approval
September 11, 2001 Anticipated City Council Approval of Conditional Grant
September, 2001 Anticipated Execution of Grant Agreement
October 2001 Anticipated Bid Package Ready
October 2001 Anticipated Bids Received
December 2001 Anticipated Building Permit Issuance
January 2002 Anticipated Start of Construction
July 2002 Anticipated Completion of Construction