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APPROVE THE ALLOCATION OF 94 LOW-INCOME HOUSING UNITS TO VISIONARY HOME BUILDERS OF CALIFORNIA PURSUANT TO ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the allocation of 94 low-income housing units to Visionary Home Builders of California’s La Passeggiata Apartments project pursuant to Article XXXIV of the California Constitution.
2. Authorize the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of this Resolution.
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Summary
Visionary Home Builders of California’s (VHB) La Passeggiata Apartment project requires 94 units of Article XXXIV of the California Constitution (Article 34) authority. Article 34 requires a local election by voters to approve a low-income housing project when financed in whole or in part by public funds. Stockton voters authorized the City Council to approve low-income housing projects in 2010 and again in 2018.
Staff recommends that the City Council approve the designation of 94 units of Article 34 authority to the La Passeggiata Apartments project in Downtown Stockton.
DISCUSSION
Background
In Fall 2019, VHB responded to a Request for Proposals (RFP) issued by the California Department of Housing and Community Development to develop an affordable housing project on State surplus land located at Lindsay Street in Downtown Stockton. VHB was selected as the preferred developer in February 2020. They are proposing the development of 94 units of multi-family and senior housing targeting households with incomes at or below 80% of the Area Median Income.
The La Passeggiata project will be Stockton's first modular apartment complex. All units will be built with red iron steel framing for increased durability and constructed using high quality, innovative, and sustainable materials. Additionally, all units will be equipped with a washer, dryer, refrigerator, stove, and dishwasher.
Present Situation
Low-income housing projects when financed in whole or in part by the federal government, or a state public body, or to which the federal government or a state public body extends assistance require voter approval Article 34 authority.
In November 2010, Stockton voters authorized the City Council to approve low-income housing projects for a ten-year period; this authority will end on December 31, 2020. However, in November 2018, Stockton voters again showed their support of affordable housing and gave the City Council authority to approve low-income housing projects and to allocate up to 500 units per year for twenty (20) years, with any unused units being carried over from year to year. This authority will commence on January 1, 2021.
With the allocation of 94 units of Article 34 authority to VHB's La Passeggiata project, the City will have 274 Article 34 units remaining to authorize for calendar year 2020 and 458 units of Article 34 carryover from calendar year 2019 for a total of 732 units.
Staff recommends that the City Council approve the allocation of 94 units of Article 34 authority for the La Passeggiata project.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund as a result of taking the recommended action.