CITY OF SIGNAL HILL - File #: 24-695

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AGENDA ITEM

TO:

HONORABLE CHAIR

AND MEMBERS OF THE HOUSING AUTHORITY

FROM: CARLO TOMAINO

CITY MANAGER/EXECUTIVE DIRECTOR

BY: COLLEEN DOAN

COMMUNITY DEVELOPMENT DIRECTOR

ALFA LOPEZ

ASSISTANT TO THE CITY MANAGER/ECONOMIC DEVELOPMENT MANAGER

SUBJECT:

title

ANNUAL REPORT OF THE HOUSING AUTHORITY

summary

Summary:

The bylaws of the Signal Hill Housing Authority require an annual meeting to be held during its first meeting in January. At this meeting, staff provides a report summarizing the year’s activities and updates pertaining to the Housing Authority efforts to preserve and create affordable housing units in Signal Hill.

Notable updates include the Signal Hill Housing Authority’s, facilitation of five affordable housing projects over the past several years, resulting in a total of 250 income-restricted units. Additionally, the City owns vacant, landlocked parcel that could be made available for future development. Lastly, the City Council and Housing Authority Board have selected National Community Renaissance as the City’s development partner for the Walnut and Orange Bluff sites, which are planned to collectively accommodate a total of 380 units for future development.

recommendation

Strategic Plan Goal(s):

Goal No. 3 Economic & Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.

Recommendation:

Receive and file the report.

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Fiscal Impact:

As of June 30, 2024, the total fund balance in the Signal Hill Housing Authority was $7,214,877. The Authority is projected to receive $2.7 million from a Successor Agency loan, scheduled for full repayment by 2028. As of FY 2023-24, the City Council (acting as the Successor Agency) has repaid $1.2 million to the Housing Authority.

The City and the Housing Authority collectively have access to multiple potential funding sources totaling approximately $10 million, which are restricted to the development of affordable housing. Additionally, the City possesses $789,000 in affordable housing in-lieu fees from a prior Development Agreement and has access to $262,645 in Permanent Local Housing Allocation (PLHA) funding to help offset site remediation costs. The City is in the process of securing additional funding through the PLHA program.

In accordance with State law, the City’s financial contribution toward affordable housing projects requires the units to remain income-restricted pursuant to affordability covenants for a minimum of 55 years.

Background and Analysis:

The Signal Hill Housing Authority was formed on December 12, 2000, pursuant to the provisions of the California Health and Safety Code. The primary purpose of the Housing Authority is to provide suitable, safe, and sanitary housing opportunities for the City’s residents. Following the dissolution of the Signal Hill Redevelopment Agency (SHRDA), the Housing Authority assumed ownership of housing assets and responsibilities of the SHRDA. The City Council acts as the governing body of the Housing Authority, which is managed by City employees and is financially interdependent with the City. Currently, there are four rental and affordable/workforce housing developments in the City that the former SHRDA or Housing Authority participated in developing; each development is briefly described below:

Sea Breeze Manor (Formerly Eucalyptus Gardens)

2067 Alamitos Avenue

Sea Breeze Manor was completed in 1997 and consists of 24 affordable housing units. The total cost of this project to the SHRDA was $775,000 and included the donation of land to the developer, a forgiven pre-development loan as well as a project grant, the affordability restrictions for this project remain in place until 2037.

Las Brisas I

2399 California Avenue

Abode Housing, formerly known as Los Angeles Community Design Center, developed Las Brisas I. There were originally 92, 2-bedroom deteriorated units in the Las Brisas neighborhood, consisting of 23 fourplexes. The crime rate was higher in this neighborhood compared to other parts of the City; there were squatters in the units as well as absentee property owners.

Abode Housing rebuilt each building with new exteriors, windows, doors, plumbing, heating, and utility systems; along with new drywall, floor coverings, counters, closets, shelving, and other interior features. Abode Housing also added new three-bedroom units with a private balcony or porch. Lastly, Abode Housing demolished existing substandard garages; created onsite resident parking; and built attractive laundry buildings throughout the site.

Las Brisas I was completed in 2005. The project was financed with assistance from the SHRDA, Housing Authority, City, tax credits, state grants, and private funding. The SHRDA and Housing Authority provided property and financial assistance in the amount of $4,500,000 for the purpose of assisting the developer in purchasing and developing an apartment complex for very low- and low-income households.

The SHRDA provided a $2,000,000 residual receipts loan with a 0% interest rate. Of the annual net operating income, the Housing Authority has repaid 50% of the income which is credited to the outstanding balance. The current balance of the loan is $1,754,534. The loan must be paid in full by, or at its maturity date, on April 15, 2060.

Affordability restrictions remain in place until 2060.

Las Brisas II

2440 California Avenue

Abode Housing developed Las Brisas II in 2007. Las Brisas II was built from the ground up and consists of 60 affordable housing units. The SHRDA assisted in acquiring 9 sites for the project. Instead of rehabilitating the units, Abode Housing demolished the existing buildings and constructed three, four-story buildings; all but one property was developed with fourplex apartment buildings.

The SHRDA and Housing Authority provided property and financial assistance in the amount of $5,150,000 for the purpose of assisting the developer in purchasing and developing an apartment complex for very low- and low-income households. The developer was required to repay a residual receipt note for $819,673 with a 4% simple interest rate and a loan of $150,000 with a 0% interest rate to fund certain predevelopment costs. The remainder of the balance for the first note is $365,521 and $150,000 for the 0% loan. The loan must be paid in full, by or at its maturity date, on April 15, 2060.

Affordability restrictions remain in place until 2062.

The Amenities of Las Brisas I and II include Calbrisas Park, a community center, preschool, and police substation.

Zinnia

1500 East Hill Street

Meta Housing completed construction of Zinnia Workforce Housing Development (Zinnia) in December 2017. Zinnia is a 72-unit affordable housing, four-story residential apartment development; the on-site property manager occupies one unit. The development features units ranging from 1 to 3 bedrooms, open space, a playground, community center, community garden space, and a fenced area for dogs. The units are restricted to extremely low, very low- and low-income residents. The Housing Authority loaned Meta Housing $7,729,480 with a 3% simple interest rate for the land and development fees, to be repaid through a residual receipts loan, the loan must be paid in full by or at its maturity date in 2073. Pursuant to the terms of the Disposition and Development Agreement, the units are required to be affordable for 55 years or until 2073.

Assets of the Housing Authority as of December 31, 2024

967 Las Brisas Way

By Oversight Board Resolution No. 2012-11-03 (OB), this property was transferred from the SHRDA to the Housing Authority. This duplex is managed by Abode Communities. The units are made available to families who qualify for affordable housing; the duplex is fully leased.

2200 Block of Gaviota Avenue

On February 21, 2012, the Housing Authority acquired a landlocked property in the 2200 block of Gaviota Avenue, north of E. Hill Street, for $60,000. The property was purchased with the intent to develop housing in the future. The property is subject to the Surplus Land Act provisions which require that parcels be offered for sale to build affordable housing.

Future Workforce Housing Sites

The City’s Certified Housing Element identifies two sites owned by Signal Hill Petroleum for the future development of workforce housing, known as Orange Bluff and Walnut Bluff. As part of the Housing Element update process, the City Council entitled both sites to collectively accommodate up to 380 units. These sites, along with two additional market-rate sites, achieve the City’s goals of meeting its Regional Housing Needs Assessment allocation. Once constructed, the two properties would fulfill the City’s broader housing goals by increasing the available inventory of housing for low- and moderate-income residents.

“Orange Bluff” is an approximately 8.6-acre property located on the south side of East 28^th Street between Orange Avenue and Gundry Avenue. The City entitled the site to accommodate up to 290 workforce units in a village cluster setting of six 3- to 5-story structures around a common open space with internal private drives for circulation. The property has two access points onto public streets, at East 28^th Street and at Gundry Avenue.

“Walnut Bluff” is a 2-acre property located at the northwest corner of East Willow Street and Walnut Avenue. The site is entitled to accommodate up to 90 workforce units in three 3- to 4-story structures clustered around an internal parking area and open space.

In April 2023, the City Council and Housing Authority Board authorized staff to issue a Notice of Funding Availability (NOFA) totaling approximately $10 million to leverage toward the development of the Orange Bluff and Walnut Bluff workforce housing sites. After conducting an extensive selection process, on October 10, 2023, the City Council and Housing Authority Board selected National Community Renaissance (National CORE) to negotiate an Exclusive Negotiation Agreement (ENA) to effectuate the next steps in the development process. In 2024 the ENA was approved National CORE initiated their due diligence on both sites; successfully executing a Letter of Intent with the property owner of the Walnut Bluff site to obtain site control. National CORE has begun seeking funding to proceed with the project and will continue to do so as anticipated in 2025.

Orange Bluff - Conceptual Site Plan

Walnut Bluff- Conceptual Site Plan

In conclusion, the Signal Hill Housing Authority remains committed to addressing the housing needs of the community by facilitating the development of safe, affordable, and high-quality housing opportunities. Through strategic partnerships and effective use of resources, the Authority continues to support projects that enhance the quality of life for residents while meeting the long-term affordability requirements mandated by State law. Looking ahead, the Housing Authority will maintain its focus on creating sustainable housing solutions that align with the City’s vision and priorities.

Reviewed for Fiscal Impact:

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Siamlu Cox