By Jorge Casuso
May 20, 2009 – Community Corporation -- Santa Monica’s only City funded affordable housing provider -- is using the lion’s share of a $50 million credit line the City established last year to purchase, renovate and build nine projects, according to an information item released to the City Council Tuesday.
The non-profit agency is using $44 million of the line of credit from Bank of America that allows the City’s Redevelopment Agency to accelerate new affordable housing by expanding its available capital.
City law requires that the Redevelopment Agency set aside 20 percent of its redevelopment funds – or, for example, about $13 million of the $65 million collected last year – for affordable housing.
Nearly $26 million from the credit line is being used to purchase and renovate six buildings totaling 66 units, or about $390,000 per unit. The properties are deed restricted for at least 55 years.
Another $18.4 million is being used to acquire and build three affordable housing projects totaling 77 units, or about $240,000 per unit.
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| Location of new affordable housing prjects (Image courtesy of the City of Santa Monica) |
The projects are scattered across the city, with three in Mid City, two in the Pico Neighborhood, two in the Wilshire corridor, one in Sunset Park and one in Ocean Park.
The properties acquired and scheduled for rehabilitation are located at 1513 Centinela
Avenue, 750-752 Marine Street, 844 Lincoln Boulevard, 1438 25th Street, 914 4th Street,
and 2029 20th Street, according to the report.
“Rehabilitation improvements typically include repair or replacement of roofs, gutters, doors, windows, handrails/guardrails, signs, cabinets, floorings, water heaters, plumbing and electrical upgrades, termite damage, and new paint,” according to housing officials.
Properties acquired and in the predevelopment process for future affordable housing
include 2802 Pico Boulevard, 2602 Broadway and 430 Pico Boulevard.
“The predevelopment process includes project concept and design, community meetings,
submittals to City and Architectural Review Board, securing other financing sources, and applications for permits,” officials said.
Existing zoning allows for approximately 95 total residences on the three sites. The future units will be income-restricted to lower-income households for a minimum of 55 years.
The line of credit from Bank of America -- which can be increased to $75 million – was approved by the City Council after staff determined it would be a better strategy than borrowing from the City’s revolving investment funds, officials said.
The credit line will be needed to keep up with the rising cost of producing affordable housing, which has steadily increased in recent years from $150,000 a unit to nearly $400,000, the council was told when it approved the credit line in April 2008.
The five-year line of credit will cost the City $250,000 to administer, according to staff.
