DATE:
August 31, 2021
09
TO:
Board of Supervisors
SUBJECT
Title
NOTICED PUBLIC HEARING:
GENERAL SERVICES - APPROVAL OF AMENDMENTS TO DISPOSITION AND DEVELOPMENT AGREEMENTS AND GROUND LEASES FOR AFFORDABLE HOUSING - 1501/1555 SIXTH AVENUE, 5255 MT. ETNA DRIVE, 6950 LEVANT STREET AND 1464 MONTECITO ROAD (DISTRICTS: 2 & 4)
Body
OVERVIEW
In recent years the timing and competitive nature of affordable housing funding sources has changed. There is more demand for Tax Exempt Bonds now than are available, and as a result they have become competitive for the first time in decades. Tax credits and bonds are the foundations for almost all affordable housing development in California. For a developer to achieve the highest competitive scoring for financing applications they must show sufficient investments by the local agency as well as acceptable terms in the Disposition and Development Agreement (DDA) and Ground Lease. The request today is for approval of amendments of the DDA and/or Ground Leases for 1501/1555 Sixth Avenue, 5255 Mt. Etna Drive and 6950 Levant Street in the City of San Diego and 1464 Montecito Road in Ramona, in order to create maximum financial feasibility for these affordable developments located on County-owned land. An overview of each request is as follows:
1501/1555 Sixth Avenue
On July 23, 2019 (11), the Board of Supervisors (Board) authorized the Director of the Department of General Services to execute a DDA and subsequent 99-year Ground Lease with BRIDGE Housing Corporation (BRIDGE) for a 100% affordable housing development located at 1501/1555 Sixth Avenue in the City of San Diego, consisting of approximately 60 senior units and approximately 60 family units. On September 8, 2019, the DDA was fully executed and became immediately effective. During the due diligence period, BRIDGE identified significant increases related to the demolition of the site that were previously unaccounted for and further described below (see Background). ...
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