DEVELOPMENT OF UP TO FOUR (4) SINGLE FAMILY AFFORDABLE RESIDENCES SUBMITTED QUESTIONS TO REQUEST FOR PROPOSAL (RFP) RFP Specific 1. Please describe the requirement for The accessibility of the project to low-income households and the potential for longer term access to social services. The City is assigned a Regional Housing Needs Allocation (RHNA) and incorporates this allocation into its Housing Element. The RHNA is broken down into categories that include: Extremely low-income; Very low-income; Low-income; Median-income; and, Moderate-income. For the purpose of this RFP, the City s target income level is Low-income. The chart below is for the Orange County area for 2012 and can be accessed at: http://www.hcd.ca.gov/hpd/hrc/rep/state/inc2k12.pdf Number of Persons in Household CATEGORY 1 2 3 4 5 6 7 8 Orange County Extremely Low 20,250 23,150 26,050 28,900 31,250 33,550 35,850 38,150 4-Person Very Low Income 33,750 38,550 43,350 48,150 52,050 55,900 59,750 63,600 Area Median Income Lower Income 53,950 61,650 69,350 77,050 83,250 89,400 95,550 101,750 85,300 Median Income 59,700 68,250 76,750 85,300 92,100 98,950 105,750 112,600 Moderate Income 71,650 81,900 92,100 102,350 110,550 118,750 126,900 135,100 For the purposes of this RFP, the sale price must be made affordable to a lower income family per California Health and Safety Code Section 50052.5. Generally, to be considered affordable, the housing cost shall not exceed 30% of that family s gross income. With regard to potential for longer term access to social services the City is looking to see if any proposer has programs or access to programs for the new homeowners regarding social services such as employment skills, health counseling, etc. While not a requirement of the RFP, it is in the City s best interests to see a longer term commitment to the placed family that may come from such access to services. 2. In the Conditions section, please further describe the impact of the property being purchased with former Low and Moderate Housing Income Funds and are subject to certain restrictions what are those restrictions and how do they impact the property? Additionally, please describe the Modified development standards approved on June 14, 2011. The properties were purchased by the former Redevelopment Agency of the City of Placentia and now owned by the City of Placentia as the successor housing agency. Due to the use of low and moderate income housing funds (LMIHF) the properties are to be restricted for forty-five (45) years through a covenant. During this time, the resale of the home will be restricted as affordable to lower income buyers.
The modified standards were approved and recommended to the City Council (which will adopt the standards as part of the transfer of properties) in order to allow the adequate development of the properties. The current development standard for R-1 zoned properties is a minimum lot size of 7,000 square feet and certain setbacks. The lots are less than the R-1 standards but generally are considered above average in size for the Atwood community. The City processed the modified standards to allow for legal development on the lot size as well as to allow for a 5 foot side yard setback (Oak Street parcels) and 4.5 foot side yard setback (Atwood Street parcels) as well as rear yard setback of ten (10) feet versus the required twenty (20) foot setback. 3. The description states that The final award and selection of developer is subject to City Council approval. Will this decision be made in the public forum at an official meeting of the City Council? Yes. The final award will be a new business item at a City Council meeting. 4. To further define our own project narrative, please provide a brief narrative outlining the Vision, Goals, and Objectives that the City has for this site as it relates to affordability and neighborhood fit. It is the vision and goal of the City to create high-quality, single family residential homes that are aesthetically enhancing to the immediate neighborhood while fitting the home s size and functionality with respect to the neighborhood. The objective of the City is to provide the homes as affordable to lower income families. 5. Please Clarify this sentence in the Scope of Work section: Construct a high quality and aesthetically pleasing residential housing development on at least two of the properties, submit interim plans for additional two properties and include future plans for same two parcels. -Would plans for the larger two parcels along with plans for the smaller 2 parcels contingent on the acquisition of 12 feet of additional adjacent land meet this Scope of Work requirement? No other property purchase is required as all four parcels have been modified to meet City development standards. However, due to oil wells present on two adjacent properties on the Atwood Street side, their respective access easements and buffer zone requirements, it is understood that the two Atwood Street parcels will not be developed in the near future. The development, therefore, is expected on the Oak Street side. Future plans for Atwood Street parcels should be shelf ready site plans (with the understanding that the plans can change) and a potential interim use, such as community garden, until such time as the sites can be developed. SFR-Atwood Development RFP Q&A Page 2
6. What approximate date will the award be announced? Staff is hoping to have an award as early as at the October 16 th City Council meeting. 7. Can you list the members of the Evaluation Team? The evaluation team will more than likely include the Assistant City Administrator, Associate Planner and potentially a member of the community. Project Specific 8. Has the Agency determined the price point(s) and selling price of the affordable units? What are they? The units must be made affordable to qualified low-income buyers (see answer 1). It is left to the developer as to how they meet that requirement and what other funding is brought to the deal in order to achieve the desired affordability. 9. Who will handle the potential buyer qualification process? Developer or City? This issue is left to the discretion of developer as part of their proposal. The City does not desire to handle the potential buyer qualification process but will not rule out such a task if, within all other points of the submittal, the City deems the entire submittal as best meeting its goals. 10. What are the basic requirements of prospective buyers with regard to: - Income What is the limit on income and what Area Median Income level does this reflect - Family Size What is the minimum and maximum family size to qualify to buy? - Ability to pay cash for the affordable unit Could a buyer pay cash as opposed to obtaining financing provided they met all other requirements? - Legal Status Would the buyer need to be an American citizen? - Ownership of other property Would someone that owns land elsewhere qualify to buy a unit? - City of Residence Would the prospective buyer need to be a current resident of Placentia? Income: Please see answer number 1. Family size: The City, in this request, follows the occupancy standards set forth by the Orange County Housing Authority for its Housing Choice Voucher Program. That is, a two person occupancy per designated bedroom. As such, a three (3) bedroom home can have a maximum SFR-Atwood Development RFP Q&A Page 3
occupancy of six (6) while a four (4) bedroom home can have a maximum occupancy of eight (8) persons. Ability to pay: Generally, if a family is able to pay cash, they are not low income. Verification of employment and other means are necessary to determine qualification as low income. Legal status: Buyer would need to be citizen or legal resident. Ownership of other property: Generally if a person owns other land they are not low income or, do not meet the criteria to qualify for a loan as such. The buyer must reside at the property. City of residence: The City is open to a process to select a future homeowner that prioritizes a current resident or someone with a history of Placentia residency over that of others. Such a system would be reviewed as part of the overall submission. 11. Except for the City of Placentia and Placentia RDA, is approval of the land transfer contingent on State Government approvals or other agency approvals as it relates to the acquisition? All former redevelopment agency-owned land has been transferred to the City of Placentia as the successor housing agency under Assembly Bill 26 x1 and AB 1484 due to the dissolution of redevelopment. The City s Successor Agency Housing Asset List (http://www.placentia.org/documentcenter/view/2913) was transmitted to the State Department of Finance and a final approval of the transfers made per letter dated September 5, 2012. Accordingly, no other approval is required. 12. Following the award, the developer selected for the project has 30 days to initiate the transfer of the properties. Would a formal purchase offer constitute said initiation? Yes. Property Specific 13. Please provide all available soils reports including Phase I and Geotechnical. Please see documents uploaded to www.placentia.org/sa under Property Related Documents 14. Can you provide a Preliminary Title Report with plotted easements? A title report related to the City s acquisition of the property was uploaded to the site mentioned above. A new title report has not been requested. 15. Are there any CC&R s or restrictions on property? None that are known. 16. What are the Development Impact Fees? Please include all School Fees or others associated with the development. SFR-Atwood Development RFP Q&A Page 4
Estimated fees will be posted to an update of this document by September 12, 2012. 17. Are there any offsite improvements required in this area? It is required that utilities are undergrounded from the utility poles to the residences. All off-site improvements (curb, gutter, sidewalk) are constructed however, sidewalk areas which are heavily cracked, uplifted or otherwise damaged at this time or during construction shall be replaced. 18. Where is sewer and utility access? Are there any required upgrades to utility services? Sewer mains are located in both streets. Laterals will need to be connected to the sewer main if not currently capped at the property line (it is believed that one lateral exists). Utility poles are located on the north side of Oak Street. 19. Please provide setback regulations for these lots. The City processed modified standards to allow for legal development on the lot size as well as to allow for a 5 foot side yard setback (Oak Street parcels) and 4.5 foot side yard setback (Atwood Street parcels) as well as rear yard setback of ten (10) feet versus the required twenty (20) foot setback. The front yard setback is twenty (20) feet. SFR-Atwood Development RFP Q&A Page 5