Despite challenges, affordable housing still a goal in Agoura Hills
By Stephanie Bertholdo bertholdo@theacorn.com

Affording a home or condominium in the city of Agoura Hills is an impossible dream for many people. But city officials hope a new, affordable housing plan will help turn the ownership dream into a reality for many more people.

Under the California Redevelopment Law, 15 percent of the total number of housing units developed in specified redevelopment project areas must be made available to low-to-moderate income households, said Mike Kamino, Agoura Hills' director of planning and community development.

Of that percentage, 40 percent must be targeted to very lowincome households, Kamino said.

"This reflects a requirement of 100 units set aside as affordable, of which 40 must be for very lowincome households," Kamino said.

Rosenow Spevacek Group Inc. worked with the city's redevelopment agency over the past year to develop the "Affordable Housing Implementation Strategy Report." The findings were presented to council members at their June 27 meeting.

The report outlined how the city can meet the housing needs of verylow, low and moderatelylow income families.

Kamino presented examples of approximate income limits for qualification for the program. A four-person household with an annual income of $35,000 is considered "very low income," and a low income limit is $56,000. To be designated "moderate," a family of four would generate annual earnings of $68,000.

These income levels don't mesh well with housing market conditions. According to Data Quick Information Systems, the median price for single-family homes is $740,000 and $414,000 for a condominium.

To afford a single-family home, a family needs to earn about $140,000 per year; for a condominium, earnings must reach $78,660. Even the average apartment rentals are too high for lowincome families. The average cost to rent an apartment in Agoura Hills is $1,833 per month, which requires an annual income of $73,320.

"These incomes are 250 percent and 155 percent higher than the 2006 area median income identified by the Department of Housing and Urban Development and the California Housing and Community Development Department," the report states. The figure for apartment rentals is 145 percent the average median income.

Now that the report is complete, the city hopes to begin several programs.

Incentives to build- This approach will provide developers with a subsidy from a redevelopment "set-aside" fund to help make up the difference between what their construction costs are and the cost of selling units designated as affordable.

Kamino said most of the homes built under this scenario would be multi-family units in the Agoura Village area south of the 101 Freeway. (Agoura Village is poised to become a town center with a mix of retail, residential and commercial businesses.)

Low-income housing tax credit-rental housing- Under this plan, developers will receive a 10-year stream of tax credits, Kamino said.

"The value of these credits is usually converted into equity in the project, resulting in reduced debt and more affordable rents, thus helping to close the cost gap," he said.

Lifting affordability restrictions- Under this scenario, the city would give a stipend to owners of rental units in exchange for keeping the units affordable over an established period of time for lower income levels.

Home buyer assistance loans- Home buyers who qualify for the affordable units in the redevelopment project area would be eligible for to receive a loan from the city to help finance their purchase.

Participation with private and public property owners- The city will look at underutilized properties in the redevelopment area and try to form partnerships with private property owners to develop affordable housing.

The programs will be used in combination, and there will be variations within each of the programs, Kamino said. He said the city is expected to take a "handson approach in dealing with specific developers and property owners regarding financial assistance, whether it's for securing long-term deed restrictions or developing affordable housing." City officials will prepare and review financial statements, secure additional funding, leverage the funding and negotiate with developers.

In the meantime, the city's Redevelopment Agency funds continue to grow. Currently the RDA has $2.6 million in the 20 percent housing set-aside fund, also know as the Low-Moderate Income Housing fund, and is projected to have nearly $7.4 million by 2012. Kamino said the city's "inclusionary housing in-lieu fund" has $1.6 million.

Developer Ted Snyder, who owns property in the proposed Agoura Village area, isn't happy with the discussions about affordable housing. At the June meeting, Snyder told council members that not only will he be required to "give away" units under the plan, he will have to subsidize homeowner association fees.

David Hilliard owns property on the southwest corner of Kanan and Agoura roads. He said the gap will cost him $150,000 per lowincome unit, and under the terms of the program he stands to lose $2.2 million.

Hilliard suggested low-income units be built "off-site" to counter high infrastructure costs.

"We can do more units if we do them off-site," Hilliard said.

Councilmember Denis Weber agreed with the developers and said the $8-million loss on their projects was "an enormous amount of money."

"They're required to suffer a loss," Weber said.

Kamino said individual development projects will be evaluated by city staff and said the affordable housing program will offer a "toolbox" of options to developers. "We have to individualize and customize every site," he said.

"I don't want the toolbox to have only one tool," Weber said.

Agoura Village was meant to be a mixed-use area, said Mayor Dan Kuperberg. Pushing housing off-site wasn't in the plan, he said.

The city council approved the affordable housing plan, four to one, with Weber opposing.