RES 96088 - Laserfiche WebLink

Pleasanton Greens is subject to the provisions of the Low-Income Housing Preservation and Resident Homeownership Act (Title VI of the National Affordable Housing Act of 1990-LIHPRHA). Under LIHPRHA provisions, owners of prepayment eligible projects can choose to retain project ownership in exchange for additional Federal incentives, or sell their properties under a voluntary sale program. LIHPRHA provides the owners of eligible projects an opportunity to receive additional Federal incentives for projects, enabling them to raise rents and refmance a portion of their equity, while extending low-income use restrictions for the remaining useful life of the project. Though subject to regulatory safeguards of LIHPRHA, Pleasanton Greens could eventually convert if offered for sale and there are no qualified purchasers during the right-of-first refusal period, or there are insufficient Federal appropriations to fund the transaction as provided by Federal law. The project will be eligible to proceed under LIHPRHA by filing a Notice of Intent to HUD two years prior to its initial mortgage prepayment date (1996). Assuming a project meets the qualifying eligibility criteria, including this eligibility date, it remains eligible for the remaining term of its mortgage (generally another 22 years). This notice indicates that the owner's preliminary decision regarding sale of property versus stay-in as low income with incentives. No notice has been filed by Pleasanton Greens to date. City staff will be working with the owner this year to provide support as needed to ensure continued affordability. Both Stoneridge Apartments and Hacienda Gardens are private apartment complexes. Stoneridge Apartments contains housing for 78 low-income households, and Hacienda Gardens contains 69. Assisted units in both projects are provided by the owner through contractual agreement with the City consistent with the Growth Management Program. Both contracts are effective for ten years ending in 1998. As shown in the comprehensive inventory matrix, Vintage Terrace is a private apartment complex containing 27 units which were previously reserved for low-income households. The assisted units were provided through a contract between the City and the developer consistent with the Growth Management Program. The contract was effective for a seven-year period of time terminating in June of 1991. The apartment eventually convened the affordable rental units to affordable for-sale housing. In summary, by the year 2000, use restrictions on 278 existing units (Pleasanton Greens, Stoneridge Apartments, and Hacienda Gardens) are due to expire, thus, allowing for possible conversion to market-rate rentals. Of this total, none are at risk by 1995. All are at risk by the year 2000. 2. Cost Analysis of Producing New Units Versus Preserving Existing At-Risk Units The purpose of this section is to first estimate the total cost of producing new rental housing comparable in size and rent with units which could convert, and then to estimate the cost of preserving the existing assisted units. 16