COUNTY OF SAN MATEO

Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY

DATE:

February 9, 2005

BOARD MEETING DATE:

March 8, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Director of Environmental Services

SUBJECT:

Consideration of an Affordability Agreement for 31 Affordable Apartments at La Terrazza at Colma Station.

RECOMMENDATION:

1.

Adopt a resolution authorizing an Agreement between the County, Colma Apartment Associates, L.P., and SamTrans to provide long-term affordable apartments at La Terrazza at Colma Station (Attachment A).

2.

Direct staff to record the Agreement (Attachment B).

VISION ALIGNMENT:

Commitment: Offer a full range of housing choices.

Goals 9 and 11: Housing exists for people at all income levels and for all generations of families, and new housing is clustered with jobs and commercial services along transportation corridors.

The Agreement furthers the above commitment/goals by securing for 55 years 31 affordable apartments for very low income households in a transit oriented development near the Colma BART Station.

Performance Measure:

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Percentage of the required affordable units occupied by very low-income households.

100% (31 units) occupied or reserved for very low-income households.

100% (31 units) occupied by very low-income households.

BACKGROUND:

In 2002, the County granted Design Review approval for a 153-unit multi-family housing project including 31 affordable units and 3,000 sq. ft. of ground floor retail space on a 2.1-acre site located on El Camino Real, between Nevin Way and Albert M. Teglia Boulevard, in an unincorporated area adjacent to the Colma BART Station. The project, La Terrazza at Colma Station, is a high-density transit oriented development consistent with the Colma BART Station Area Plan adopted in 1994. The site is owned by the San Mateo County Transit District (SamTrans) and is leased to the developer, Colma Apartment Associates, L.P. Construction of the project began in March 2003, and it is now nearly complete, with final occupancy expected in March, 2005. As a condition of the approval, and as required by the County’s Density Bonus Ordinance, prior to final occupancy, the developer is required to enter into an agreement with the County to maintain 31 units as affordable housing.

DISCUSSION:

Staff from the Planning Division, the Office of Housing and County Counsel have worked cooperatively to develop the proposed agreement. The Agreement (Attachment B) provides that the units will be continuously affordable to very low-income households (those earning 50% or less of median income) for 55 years from the date the Agreement is recorded. The Agreement also establishes a certification and selection process for qualified tenants, to be conducted by the developer, as set forth in Exhibit C. Annual monitoring by the Housing Department to ensure compliance with the affordability restrictions is also provided for in the Agreement. To offset the County’s cost to monitor compliance, the project owner will be required to pay an annual fee.

County Counsel, the Office of Housing, and Real Property have reviewed the staff report.

FISCAL IMPACT:

The cost of monitoring compliance of the agreement over a period of 55 years will equal $85,250 which will be adjusted upward according to the Consumer Price Index. The monitoring fee will be paid by the owner.