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1010 Pacific Avenue and 1280 Shaffer Road Market Rate and Affordable Housing

1010 Pacific Avenue 1Updated 12/05 - Project Completed

New Rental Information:

Project Description

The Redevelopment Agency provided significant financial assistance in the development of two affordable housing developments which were completed in 2004 in downtown Santa Cruz at the corner of Pacific Avenue and Cathcart Street (1010 Pacific Avenue), and on the West Side at 1280 Shaffer Road, near the town limit.

The two projects known as the Monarch Village Apartments (at 1280 Shaffer Road) and 1010 Pacific Apartments were constructed by Pacific Union Apartments, Inc., a developer with extensive experience in producing multi-family housing.

Overall, the projects meet a number of the City's housing goals, including provision of affordable housing units, new residential development in the South of Cathcart area, and infill development adjacent to the Metro Center.

Agency Involvement: Affordable Units

While these projects are privately funded and constructed, the Redevelopment Agency provided financial support for the project. In exchange for that financial support, the community will receive affordable housing units, mixed with market rate units in each project. In May of 2001, the Redevelopment Agency entered into an Exclusive Negotiating Agreement with the developer of the project in order to negotiate the scope of the Agency's and City's financial involvement. The next step was entering into an Owner Participation Agreement (OPA) with the developer in January 2002 to formalize the Agency's and City's support of the project. Through the OPA, the Agency has pledged to contribute the Tax Increment generated by the new projects back into thefinancing of the project in exchange for guaranteeing that a certain number of the apartment units are maintained as affordable units for people of moderate and low and very low income levels. Simultaneously, the Agency cooperated with the developer in obtaining Low Income Tax Credits to help fund the project, and in the issuance of mortgage revenue bonds issued to assist with project funding. The tax increment funds being contributed to the projects will be paid directly to the Trustee for the bonds to assist in the rent subsidy for the affordable units. The City and Agency entered into a Cooperation Agreement by which the City agreed to defer building fees, planning fees, water and sewer, and parks and recreation fees for the project to further assist in its funding, while the Agency will pay a number of these fees on behalf of the developer.

1010 Pacific Avenue Apartments

The project at 1010 Pacific Avenue resulted in a 5-story signature downtown building designed to harmonize with the University Town Center located diagonally across the intersection of Pacific and Cathcart which was completed in the late 1990's. The project contains 113 rental units, 43 of which are affordable to households of very low income levels and to households of moderate income levels, leaving approximately 70 market rate units. The building includes subterranean parking containing 66 spaces, an exercise room, landscaped courtyard, 111 bicycle parking spaces, and approximately 6,550 square feet of ground floor retail space in addition to housing units. All of the retail space is currently occupied.

The 1280 Shaffer Road Project

1010 Pacific Avenue 2The project at 1280 Shaffer Road known as Monarch Village Apartments is a 206 unit apartment complex, including an approximately 2,500 square foot community building and a private community recreation area. Twenty-one of the rental apartments will be affordable to households of very low income and 62 to households of low income, leaving 123 units of market rate housing.

The Agency is proud of its contribution to the projects resulting in producing over 120 units of affordable housing for a city which suffers from an acute housing affordability crisis. These affordability convenants run for a period of 55 years.

 

Last updated: 9/28/2009 3:54:41 PM