The Pasadena City Council’s Economic Development and Technology (EDTech) Committee is expected to endorse a resolution Tuesday, May 18, that would authorize Pasadena to become a member of the California Statewide Communities Development Authority (CSCDA).
Such a move would pave the way for the issuance of bonds by the CSCDA, which would then allow more low- and moderate-income households in Pasadena to access affordable rental housing.
Once the resolution is adopted, a Public Benefit Agreement between Pasadena and the CSCDA will also be executed for the acquisition by CSCDA of existing apartment units at Westgate Apartments, Phase II and III, located at 231 S. DeLacey Ave., and at The Hudson, located at 678 E. Walnut St., Pasadena.
Under the proposed agreement, the CSCDA will rent out up to 340 units at Westgate Apartments and 173 units at The Hudson, through an appointed project sponsor or administrator, to low- and moderate-income households.
Currently, the low- and moderate-income range for a family of four in Los Angeles County is $90,080 to $135,120, according to the California Tax for Credit Allocation Committee.
No existing tenants will be displaced, but all new tenants would need to “income-qualify,” that is, qualify according to income, before entering a lease, according to information provided by the Pasadena Department of Housing.
The Housing Department also disclosed that Waterford Property Company is the proposed project sponsor/administrator. The Newport Beach-based company has owned and managed over 2,000 affordable rental units, including those In Southern California cities. It will be responsible for tenant selection, compliance with the regulatory agreements, and general project operations.
By entering into a Public Benefit Agreement with CSCDA, the city would be participating in the Authority’s Workforce Housing Program, through which government bonds are issued to acquire market-rate apartment buildings, such as Westgate and The Hudson. These properties will be converted to income and rent-restricted units for moderate- or middle-income households, which are those that generally earn from 80 percent to 120 percent of “area median income” or AMI.
Under the Public Benefit Agreement, the city will have no initial ownership in any of these projects, the Housing Department said. The city, however, maintains an option to force a sale or refinance of the project starting in year 15 of the agreement. The city would not have a fee interest in the projects and would not be a direct party to the real estate or financial transactions.
After endorsement by the EDTech Committee, the resolution and the proposed Public Benefit Agreement will be forwarded to the full City Council for adoption.
Members of the community may access the EDTech Committee’s video-conference on Tuesday through http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 as well as through www.pasadenamedia.org.
The meeting begins at 4 p.m.