SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY ACTIVITIES NEWSLETTER VOLUME 3, ISSUE 2 SUMMER-FALL 2007 The mission of the Sacramento Housing and Redevelopment Agency is to revitalize communities, provide affordable housing opportunities and to serve as the Housing Authority for the City and County of Sacramento. IN THIS ISSUE… Page 1 Transformation on 12th Street Page 2 The Boulevard is Back! Page 3 Mather investment strategy taking shape Page 4 10-Year Homelessness Plan Progress Report Page 5 Housing Authority repositioning strategy moves forward ECONOMIC TRANSFORMATION UNDERWAY IN CITY’S 12TH STREET GATEWAY AREA A transformation is taking shape in Sacramento’s oldest community known as Alkali Flat. City redevelopment officials and private investors are moving forward with a significant number of community revitalization projects on and adjacent to 12th Street. The revitalization is occurring through rehabilitation and reuse of historic structures as well as preservation and construction of affordable and market rate housing. In September, the popular 524 Restaurant reopened at 12th and F Streets after a fire forced its closure in 2003. The reopening followed a $1 million investment of private funds by building owner Mario Jauregui to rehab the property with $90,000 in funding support from SHRA. The building also includes an additional retail space and 7 one-bedroom units. The historic Globe Mills catalyst project is expected to bring 112 units of affordable senior housing to 12th and C Streets by the More housing opportunities to revitalize the 12th Street corridor with some housing for low income households. The project concept will be pre- Globe Mills project developer Cyrus Youseffi (center) talks with SHRA Deputy Executive Director Lisa Bates and Assistant Director Jim Hare. Sacramento Housing and Redevelopment Agency 630 I Street Sacramento, CA 95814 Phone: (916) 444-9210 Fax: (916) 441-1197 www.shra.org Please email this newsletter to a friend. To unsubscribe or comment, email ajones@shra.org. Newsletter Contributors Anne M. Moore, Executive Director income units and retail space are currently Angela Jones, Editor Sandy Piekarski, Alan Saunders, under construction. The project is an ex- Chris Pahule, Diane Luther, ample of adaptive rehabilitation and pres- Nick Chhotu, Jim Hare, Marti Brown, ervation of the mill originally built in 1912. Carlterr Velez Houston The Agency is investing $15 million in the $38 million project. end of the year. An additional 31 moderate Owner Mario Jauregui rehabbed his building at 524-526 12th Street using SHRA’s commercial façade grant pro- gram. Housing will be preserved for 54 very low and low income households through an acquisition and rehab project for the Washington Square and Sherwood Court apartments. A $1.6 million public investment from Agency leveraged $10.8 million for this project that saves these units from converting to market rate housing. The Agency is working with Domus Development on a proposal that would create transit-oriented, high-density housing at the catalyst La Valentina development site on 12th Street between C and E Streets. The project may include 80 to 100 units sented to community groups later this year. Creation of outdoor recreation space and a development opportunity are being proposed for the Boys and Girls Club. The Redevelopment Agency anticipates entering into an Exclusive Right to Negotiate (ERN) late this year with Boys and Girls Club. The City would contribute $500,000 to develop the recreation area and SHRA would provide three vacant Agency-owned parcels for the project. New market rate construction for 285 one- to three-bedroom flats, condos and row houses is proposed for the Crystal Creamery site. The project by MetroNova Development could potentially begin construction in fall 2008. For information on projects in the Alkali Flat Redevelopment area, contact Raul Carrillo at (916) 4401328 or rcarrillo@shra.org. “One Community, One Vision www.shra.org SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY PAGE 2 COMMUNITY VISIONS “One Community, One Vision” www.shra.org THE BOULEVARD IS BACK: BEAUTIFICATION IMPROVEMENTS COMPLETED ON DEL PASO BOULEVARD After several years of planning and engineering, the Del Paso Boulevard Streetscape Improvements are finally complete providing the backdrop for creating a vibrant Del Paso Boulevard commercial district and making the Boulevard a Sacramento destination. The new improvements included angled parking on both sides of the Boulevard, 10 new pieces of artwork, landscaped medians with blue block character elements that light up at night, repaired sidewalks and drainage, new bulb outs, stamped concrete crosswalks, and gateway signs at the Boulevard’s El Camino and Highway 160 entrances. These changes have really set the stage for the Agency’s larger strategy to revitalize the Boulevard into a unique and pedestrian-friendly commercial district and make the most of the Redevelopment Area’s light rail stations by promoting high-density and mixed-use development. In addition to these changes, the Agency has also made several other investments on the Boulevard including: • Assisting the Sacramento News and Review to acquire and rehabilitate the 18,500 square foot former IMG furniture store near the Globe Light Rail Station • Providing financial assistance to establish the 22-room Greens Motel • Assisting with the development of the 12,000 square foot, mixed reuse site that is now home to the Supper Club, Article and Fran’s Café • Providing assistance with the acquisition of the historic art deco Grand Theater and restoring it to a regional entertainment center To complete this $6.72 million streetscape improvement project, the Agency partnered with the City of Sacramento Transportation Department, California Infrastructure and Economic Development Bank, Sacramento Metropolitan Arts Commission, Regional Transit, the Redevelopment Advisory Committee, and the Del Paso Boulevard Partnership. For information on the Del Paso Heights Redevelopment Area, contact Marti Brown at (916) 440-1322 or mbrown@shra.org. Construction on the long anticipated streetscape improvements in the City and County portions of Franklin Boulevard are underway. In the County, improvements will be made on Franklin at 47th Avenue and continue south to Turnbridge Road. The work will include bi-furcated sidewalks with landscaping (to enhance the pedestrian access and experience), bike lanes, reconstructed and raised center medians, and a traffic signal at Turnbridge Road. The changes will provide access to businesses and improve the visual sight lines for motorists making left turns into those businesses. The funding for this $5.7 million project comes from the Federal Regional Surface Transportation Program, the Community Development Block Grant (CDBG) Program, County transportation funds and Franklin Boulevard tax increment funds. The improvements in the City will focus on the intersection at Franklin Boulevard and Fruitridge Road. The biggest visual impact of the project will provide curb, gutter, sidewalk, landscape and on-street parking in front of the Caballo Blanco Restaurant. The addition of two turn lanes to ease congestion in existing left turn lanes will make a positive impact on the traffic flow on and off Fruitridge Road. Bike lanes will also be added at this busy intersection. The $1 million funding for these improvements comes from the State of California Measure A funds, CDBG and Franklin Boulevard tax increment funds. Both projects were created with input from the business owners and citizens through the Franklin Boulevard Urban Design Master Plan that was created in 2001. For more information on the projects, contact Carly Velez Huston at 440-1322 or chuston@shra.org. Franklin Boulevard Streetscape Improvements Break Ground Del Paso Boulevard after completion of the $6.7 million streetscape beautification project. (Left) Improvements to Franklin Boulevard and Fruitridge Road in the City of Sacramento include new curb, gutter, sidewalk and landscaping. SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY PAGE 3 COMMUNITY VISIONS INVESTMENT IN MATHER REDEVELOPMENT AREA SPURS NEW COMMERCIAL DEVELOPMENT “One Community, One Vision” www.shra.org After pumping nearly $30 million in redevelopment and state infrastructure and economic development funds into improvements for the Mather Redevelopment Area over the past five years, the investment is showing significant returns through commercial development and new jobs for the area. The Mather Redevelopment Area has approximately one million square feet of new commercial space. Adding to this is McCuen Properties venture to build 182,000 square feet of commercial space for lease by EdFund (a student loan provider). This $35 million project will include two buildings to be completed in 2008. EdFund has signed a 10-year lease and expects to provide 800 jobs. In addition, Jackson Properties anticipates that an additional 110,000 square feet of commercial space will be completed in mid-2008, and has under development an additional 110,000 square feet of commercial space to begin construction by the end of 2008. These two new developments are valued at $40 million. To help attract development at Mather, the County Redevelopment Agency has applied $4 million from the California Infrastructure and Economic Development Bank (CIEDB) and $25 million in tax increment toward improvements to several major roadways including Armstrong Avenue, Grissom Avenue, Excelsior Road, Femoyer Street, Bleckley Street, Peter A. McCuen Boulevard, and Schreiver Avenue. Improvements include sewer and trunk line installation, streetscape beautification and landscaping. The Agency also completed the demolition and hazardous materials removal of various unusable Air Force buildings and prepared the land for development. Completing these infrastructure improvements on the front end has made the area more attractive for developers by enabling them to save costs associated with preparing land for development. In the next few months, the Agency will issue a Request for Proposal for an investment strategy and financing plan for the vicinity surrounding the airport and the southern portion of the Mather redevelopment area. The recommendations from the strategy/financing plan will be implemented over a fiveyear period. Visioning strategy underway to improve quality of life for Mather residents With the successful completion of commercial development and infrastructure improvement projects at Mather, the Agency has begun further visioning for the redevelopment area. A team comprised of staff from the County of Sacramento, City of Rancho Cordova, Mather Community Campus residents and the Agency is creating a vision/ strategy for the Community Campus. The team will propose land-use options for affordable housing, permanent housing for homeless singles and families, commercial/retail development, recreational/park space, and how to better utilize the campus for the enjoyment of the residents. Some possibilities include a new education building to help residents of the Mather Community Campus obtain skills, knowledge and certifications to improve employment opportunities and a community room space for the campus and the Rancho Cordova community. Opportunities to assist the Veterans Administration in expanding its programs through a partnership with the County Department o of Human Assistance (DHA) is also being considered. For information, please contact Sandy Piekarski at (916) 440- 1322 or spiekarski@shra.org. Meeting Calendar Sacramento Housing and Redevelopment Commission 1st & 3rd Wednesdays @ 6 p.m. 600 I Street Sacramento County Board of Supervisors Tuesdays @ 9:30 a.m. Wednesdays @ 9:30 a.m., 2 p.m. & 6 p.m. Workers install a major sewer line on Femoyer Street. Mather Community Campus SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY PAGE 4 COMMUNITY VISIONS TEN YEAR PLAN TO END HOMELESSNESS REPORTS SIX-MONTH PROGRESS During the winter of 2006/2007, Sacramento’s City Council and County Board of Supervisors adopted a Ten-Year Plan to End Chronic Homelessness. See www.Communitycouncil.org/ homelessplan. How Are We Doing So Far? Since the adoption of the Plan, our community has placed at least 195 homeless individuals into permanent housing, of which 69 were chronically homeless.* Goals, Results to Date, Progress to Come Goal 1 Develop 280 New Permanent Supportive Housing Units Within Five Years Results Two projects totaling 99 units for homeless individuals, 79 units of which are for chronically homeless, are underway and will be occupied Fall, 2008. Progress To Come Financing in the pipeline for 86 units for chronically homeless. Goal 2 Create 218 New Housing Opportunities for Chronically Homeless in Leased Units Within Three Years Results Three contracts have been executed with community providers to house and serve 114 individuals. Progress To Come Funding for an additional 140 housing opportunities will be ramped up during 2008-09. Goal 3 Set up a new Central Intake system to screen and place chronically homeless people into housing-plus-services programs Results Central Intake office opened June 5, 2007 and has screened 68 homeless people. Eleven people have been housed, and 38 are awaiting new housing placements as they become available. Progress To Come New clinical staff to facilitate disability diagnoses and placements. Goal 4 Prevent Chronic Homelessness by creating 200 new and preserving 100 existing Single Room Occupancy housing units that will serve extremely low income people with disabilities Progress To Come Financing in the pipeline for two projects totaling 140 SRO units. Goal 5 Create a New Leadership Structure for Sacramento’s homeless services system Results A completely new leadership structure has been established, consisting of: • a Policy Board with high level political and private sector participation. • the Interagency Council to End Homelessness (ICEH) with representation from important housing and services sectors. • ten committees of the ICEH working on new Homelessness in Sacramento County *A Chronically Homeless person is defined as a single person with a disability who has been homeless for a year or more or who has been homeless four or more times in the last three years. In order to end chronic homelessness in Sacramento, we need to produce about 1500 permanent housing opportunities accompanied by support services. Sacramento County’s 2007 homeless count found 2452 homeless people either on the streets or in shelters. From this data, we estimate that 4367 people in the County experience homelessness over the course of a year. Housing First Many of our new housing opportunities for chronically homeless people embrace the nationally recognized practice of Housing First, providing immediate access to safe, affordable housing without requiring initial participation in psychiatric services or addictions treatment. Providing housing with access to services is highly cost effective. Homeless people with disabilities consume very expensive health care, public safety and homeless services. Studies have shown costs savings of up to $16,000 per client per year. initiatives and partnerships. • two new fulltime dedicated staff and two Americorps volunteers. Progress To Come New program initiatives include: • a Veterans Services Task Force determined to end homelessness among Veterans in the Sacramento area. • a review of federally-funded (Continuum of Care) homeless programs to maximize our ability to end homelessness. • new ways to use health services systems to support homeless disabled people in permanent housing. • improvement in the criminal justice system’s interactions with homelessness. • planning for appropriate responses to save lives of homeless people during severe weather events. Goal 6 Improve Sacramento’s Point-In-Time Homeless Count Results In the early morning hours of January 30, 2007, nearly 230 members of the community, mostly volunteers, came together to canvass the streets, parks, and riverbanks to count those without a home. For the first time, Sacramento used a statistically reliable, research based methodology, yielding the best quality homeless count in Sacramento history. Progress To Come Sacramento has now committed to conducting a count every year, and will include more locations. “One Community, One Vision www.shra.org SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY PAGE 5 COMMUNITY VISIONS Housing Authority study identifies long-term strategy to reposition assets; reduce dependence on federal funding The Sacramento Housing Authority for the City and County is moving ahead to implement a strategy to diversify its existing public housing portfolio and develop funding alternatives to sustain public housing operations without dependence on federal funds which have been steadily declining for years. “The issues confronting our public housing portfolio are significant,” says La Shelle Dozier, Housing Authority Director. “Our housing stock is rapidly aging and the federal government has not adequately funded public housing programs for the past seven years.” The Housing Authority owns and operates more than 3,100 public housing units which are home to about 7,000 extremely low income families, seniors or disabled persons. Housing officials say a new innovative approach is needed to preserve and maintain its real estate portfolio valued in excess of a half billion dollars. In 2005, the U. S. Department of Housing and Urban Development (HUD) mandated all housing authorities to develop a plan on how they will carry out asset management and repositioning functions such as capital investment, rehabilitation, modernization, disposition, and other needs for such inventory. Developing such a strategy is crucial to the survival of the Housing Authority and its ability to pay for ongoing expenses. Housing officials estimate an annual operational shortfall of $3.5 million. Last year the Housing Authority retained CSG Advisors to evaluate the immediate and long-term financial viability of its public housing portfolio. The assessment determined that the Housing Authority must invest $130-$150 million over the next 10 years to maintain its current housing inventory, including routine capital needs, security enhancements and infrastructure utility replacement. The CSG Asset Repositioning Study establishes a framework for a proactive strategy to align Housing Authority operations with the realities of the HUD funding environment while at the same time eliminating ongoing operating and capital deficits that the Housing Authority has been grappling with for years. A CSG property assessment recommends a priority for units that should be maintained, developed, renovated, sold or otherwise repositioned in order to achieve long-term financial sustainability. According to CSG, which has helped other large public housing authorities in California develop successful asset repositioning strategies, the key is the ability to use innovative techniques to leverage limited existing resources. CSG identified elderly/disabled high rises in the Central City and three large family housing developments as priority targets for repositioning that will provide the greatest potential return on investment to the Housing Authority. Officials emphasize implementation of a long-term asset repositioning strategy can take five to 10 years. In the short term, immediate strategies will focus on addressing single family homes, vacant lot sales and non-residential assets. A timeline for implementation is expected to be presented for review and approval by spring 2008. Alder Grove is one of several large housing communities identified as priority sites for Housing Authority asset repositioning that may provide high potential return on investment. SHRA HOMEBUYER ASSISTANCE PROGRAMS If you can dream it, we can help make it happen First-time Homebuyer Program $40,000 for down payment and closing costs or reduce the amount of a first mortgage American Dream Down Payment Initiative $10,000 for down payment and closing costs for first home purchase Mortgage Credit Certificates 20% tax credit on mortgage interest to reduce federal taxes and qualify for a larger mortgage Do you know someone who’s dreaming about becoming a homeowner? Call Homeownership Services at (916) 264-1500 and find out how to make the dream come true! “One Community, One Vision www.shra.org SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY PAGE 6 COMMUNITY VISIONS SOUTHERN CALIFORNIA DEVELOPER BRINGS HIGH QUALITY AFFORDABLE APARTMENTS TO NORTH SACRAMENTO A new community of 80 affordable apartments and townhomes in North Sacramento’s Del Paso Heights Redevelopment Area was the site of a ribbon cutting and grand opening on September 20 with city redevelopment officials and representatives of Simpson Housing Solutions (www.simpsonsolutions.com). “This is something that we absolutely need in District 2,” said City Council Member Sandy Sheedy who represents the area. “The commitment to affordable housing and quality of this housing that Simpson Housing gives to the community is fantastic and I appreciate that very much.” North Avenue Apartments at 999 North Avenue has a combination of two- and three-bedroom apartments and two- bedroom townhomes affordable to households with incomes between 30 and 60 percent of the area median income. Rents range from $313 to $755 for a two-bedroom apartment and $355 to $865 for three bedrooms. The development is 96 percent occupied. Senior Vice-President Moe Mohanna says Simpson’s development projects start with a promise to build quality housing and deliver a community so that residents can enjoy life. “What we provide is the ability to have this quality of home and not to pay and arm and a leg,” said Mohanna. “Not to have a significant portion of your income go out on just rent but to be able to put it towards the needs of the family and towards saving.” Financing for the $17 million project included a $525,000 loan from the Sacramento Housing and Redevelopment Agency, including $240,000 in Del Paso Heights tax North Avenue Apartments at 990 North Avenue in Del Paso Heights, North Sacramento increment Housing Set-Aside funds and $285,000 in City Housing Trust Funds, $100,000 in City fee waivers, 9 percent tax credit equity, and loans from Wells Fargo Bank and Washington Mutual. “We value your partnership and willingness to work with us to make sure we reach a number of important community objectives to help low income people have a good place to live where they can have hope and a future,” said Anne M. Moore, SHRA executive director. LINC Housing Corporation provides management services for residents including computer training, health and wellness seminars, and after-school programs for school-age children. Management also maintains a directory of local community resources available to residents. SHRA PARTNERS WITH COUNSELING AGENCIES TO PROVIDE RESOURCE INFORMATION FOR HOMEOWNERS FACING FORECLOSURE AND MORTGAGE DEFAULT Are you having trouble making your mortgage payment? The most important thing for you to do is to contact your lender as soon as possible. Your lender may be willing to work with you to avoid foreclosure. Additionally, there are many agencies and resources available to assist you. Local Housing Counseling Agencies Home Loan Counseling Center of Sacramento 2003 Howe Avenue, Suite 100 Sacramento, CA 95825 (916) 646-2005 NeighborWorks HomeOwnership Center 2400 Alhambra Boulevard Sacramento, CA 95817 (916) 452-5356 ByDesign Financial Solutions 4636 Watt Avenue, 2nd Floor North Highlands, CA 95660 (800) 750-2227 Other Web Resources U.S. Department of Housing and Urban Development Links: Avoiding Foreclosure (En Espanol) How To Avoid Foreclosure Brochure(pdf) Help For Homeowners Facing The Loss Of Their Home (En Espanol) Veterans Administration Link: (VA) – Trouble Making Payments Freddie Mac (FHLMC) Link: What if You Cannot Pay Your Mortgage? (En Espanol) “One Community, One Vision www.shra.org