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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 3/16/2005AGENDA ITEM March 16, 2005 TO: Chairman and Members of the Redevelopment Agency Board FROM. Steven G. Pasarow, Redevelopment Operations Manager SUBJECT: Proposal by Habitat for Humanity to Acquire +/- 509 Gross Acres on Seventh Street: APN's 433-180-029; 031, 032; and 034 for Affordable Housing RECOMMENDATION: Authorize staff to open negotiations with Habitat for Humanity to acquire +/- 5.09 gross acres on Seventh Street east of Donna Way for the purpose of building affordable single family housing units. Habitat for Humanity has proposed a partnership with the Redevelopment Agency of the City of San Jacinto, itself and potentially several local home builders to acquire Agency land, consolidate parcels, prepare a subdivision map and provide infrastructure improvements to allow the development of affordable single family housing units: BACK9ROUN0: On January 26, 2006 and February 14, 2006, Community Development staff met with members of the Habitat for Humanity Board of Directors and their Executive Director regarding a proposal for the Agency to assist Habitat in the acquisition of vacant land which would allow them to construct affordable single family housing units over a five year period. In these meetings staff indicated that the Agency owed a parcel of land zoned for single family residential units of approximately 5.09 acres on Seventh Street, south of Donna Way and north of North Mountain Middle School: Staff indicated that should the Agency be interested that the Agency may consider providing assistance ti Approvals City Manager Finance Director Page 1 of 2 parcel to include funding for the transfer of the land, consolidation of the several small parcels into one sub -dividable parcel, preparation of a subdivision map, grading of the site to provide individual building pads and providing the infrastructure such as streets, sewers, water and electrical to the individual pad, Habitat would work with its partners, including several of the prominent local housing development firms such asLennarHomes, Young Homes, Gruen Communities, D.R. Horton and others for donations of material, manpower and management expertise to build affordable single family housing units on the pads. Habitat would also select the families topurchase the finished homes and place restrictive covenants on the title of the homes to ensure that the homes remain affordable for the longest feasible time as required by State law when receiving Agency assistance. In return the Agency will receive credit for providing assistance for the construction of affordable units which it is required to do with its housing trust funds. The Agency will be able to report to the State Department of Housing and Community Development in its annual report that it is assisting in providing new construction of affordable units. ALTERNATIVES: 1) Authorize Staff to work with Habitat to develop a workable plan to develop these parcels ; and begin negotiation with Habitat on a Disposition and Development Agreement to detail the responsibilities of the two parties for the development of the finished tots. 2) Workwith Habitat to develop a plan whereby Habitat . acquires the parcels from the Agency but does not receive additional assistance from the Agency and which Habitat develops agreements with local housing developers to provide for the soft costs associated with the development, and infrastructure for theme. parcels. 3) Take no a alternatives ion on FISCAL IMPACT: Costs to the Agency are unknown at this time. Costs will be associated with the level of development assistance provided by the Agency at the time of the actual need for assistance. his proposa or provide, direction to sta on other ATTACHMENTS: Letter from Habitat forHumanity Proposal from Habitat for Humanity Location Map Assessor's Parcel Map age 2 of 2 abitat for it ai pity e et/San Jacinto February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment Operations Manager 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any further suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, Sharon Desgro Executive Director 515 E. Kimball Avenue • Hemet, CA 92543 P.0 Box 1574 • San Jacinto, CA 92581-1574 (909) 658-0235 abitat for ms` anety a et/San Jaeint February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chairman 248 East Main Street San Jacinto, CA 92583 Prop saA: Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue • Hemet, CA 92543 P.O Box 1574 • San Jacinto, CA 92581-1574 • (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim Hults, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the low income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with them. They build over 100 houses per year with Habitat. Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are beingapproached for house sponsorship are: Fidelity Homes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured homes to San Bernardino Affiliate. They will be approached in the near future. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, , Sharon Desgro Executive Director Construction Disc proposalsj. 02-21-06 LOCATION MAP 02004 ThoiBros: tvlaps im„ WIRMIt wenn 17 431:/8 T.R.A. 010,i 056 010- Wit 61.* 90, RAW 0, 71177 lit !MAIO t)77 t site le ,I4 ti 7,4,5 ft gilt 1,11 tt 5/78 t it 87 • lit 77 4iitt soiible Veit I AA I•ftl 77 7.7 31,$ AO, At .90,49 MAY ,I950 SAN LIACINTO VEIO TINS MAP TS MAP ASSESSMENT PaitPOSES 010.7 SUBJECT PROPERTY SEVENTH •-,STRECT 77.77777 Mt .7 eX it 3 •,.# Fix 17 A A 0+0- 0,0 AA IPMA wilta 70477 SMEET--- -SHAVER- Mg 8/51 Kuniler Ranch Tract Addillon M.B. 8/386 5.0 H.THewinq Plo/ of Son Jarinfo PLAT MAP AtrAi A ',tie, at Atieti MAT NV., timir,Atro A$SESSOR:5 MAP 8/1433 /447/8 RIVERSIDE cativrr, cAur Message Page 1 ot 2 Steven Pasarow SZJva24 on-,- v1,1_60 kr c -ea Vwc-ta,. p)(c_ 4-cci LAAA• i/a-ca” t,0 5 • From: Dorothy Chouinard Sent: Sunday, March 05, 2006 12:17 PM To: Steven Pasarow Subject: RE: Habitat Closed Session Item for March 16th Steven: From the e-mail I'm going to assume it is RDA agenda only. Let me know if it is supposed to be CC, too. Dorothe L. Choui //La K2; Cite CZerle Cite .07 1. SR A-JR el -pi -to g Ma IA- Street SOfrb_lo civi.to, CA 9.253 dchouinard©sanjacintoca.us Phone (951) 487-7339 Fax (951) 654-3728 From: Steven Pasarow Sent: Friday, March 03, 2006 9:17 AM To: Dorothy Chouinard Cc: Laura Cuthbert Subject: FW: Habitat Closed Session Item for March 16th Dorothy, Laura, this is the language for my closed session RDA item for March 16th with Habitat. This was prepared by Jeff Ballenger's office at my request so we would have the proper language for the agenda. Steven. From: Mary K. ardike [mailto:Mary,Stracke@bbklaw.corn] Sent: Friday, March 03, 2006 9:02 AM To: Steven Pasarow Cc: Jeff S. Ballinger Subject Habitat Closed Session Item for March 16th CONFERENCE WITH REAL PROPERTY NEGOTIATORS Properties: Assessor Parcel Numbers 433-180-029; 433-180-031; 433-180-032; 433- 180-034 Agency Negotiator: Steven Pasarow, Redevelopment Operations Manager Negotiating Party: Habitat for Humanity Hemet/San Jacinto Under Negotiation: Price and terms Original Message ----- From: Jeff S. Ballinger Sent: Wednesday, March 01, 2006 5:17 PM 3/13/2006 AGENDA T NSMITTAL FO TO: Dorothy L. Chouinard, City Clerk Enclosure: Staff Report for Redevelopment Agency Meeting of March 16, 2006. XX Closed Session RDA: Proposal by Habitat to Acquire -14- 5.09 gross acres on Seventh Street; APN's 433-180-029; 031; 032 & 034 for Affordable Housing Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item : Attachments include: A. Cover Letter from Sharon Desgro, Habitat Executive Director B. Proposal from Sharon Desgro, Habitat Executive Director C. Location Map Other: Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary m••••.• Comments: DATE: 3(2/2-00 [Name], [Title] TZ2 k) 0 ft,Js, MqR • \\SanJacl\Users\SPasarow\Agenda - CC Transmittal Form.doc AGENDA ITEM March 16, 2005 TO: Chairman and Members of the Redevelopment Agency Board FROM: Steven G. Pasarow, Redevelopment Operations Manager SUBJECT: Proposal by Habitat for Humanity to Acquire +/- 5.09 Gross Acres on Seventh Street: APN's 433-180-029; 031; 032; and 034 for Affordable Housing RECOMMENDATION: Authorize staff to open negotiations with Habitat for Humanity to acquire +/- 5.09 gross acres on Seventh Street east of Donna Way for the purpose of building affordable single family housing units. SUMMARY; Habitat for Humanity has proposed a partnership with the Redevelopment Agency of the City of San Jacinto, itself and potentially several local home builders to acquire Agency land, consolidate parcels, prepare a subdivision map and provide infrastructure improvements to allow the development of affordable single family housing units. BACKGROUND: On January 26, 2006 and February 14, 2006, Community Development staff met with members of the Habitat for Humanity Board of Directors and their Executive Director regarding a proposal for the Agency to assist Habitat in the acquisition of vacant land which would allow them to construct affordable single family housing units over a five year period. DISCUSSION: In these meetings staff indicated that the Agency owed a parcel of land zoned for single family residential units of approximately 5.09 acres on Seventh Street, south of Donna Way and north of North Mountain Middle School. Staff indicated that should the Agency be interested that the Agency may consider providing assistance to Approvals City Manager: Finance Director: Page 1 of 2 parcel to include funding for the transfer of the land, consolidation of the several small parcels into one sub -dividable parcel, preparation of a subdivision map, grading of the site to provide individual building pads and providing the infrastructure such as streets, sewers, water and electrical to the individual pad. Habitat would work with its partners, including several of the prominent local housing development firms such as Lennar Homes, Young Homes, Griffin Communities, D.R. Horton and others for donations of material, manpower and management expertise to build affordable single family housing units on the pads. Habitat would also select the families to purchase the finished homes and place restrictive covenants on the title of the homes to ensure that the homes remain affordable for the longest feasible time as required by State law when receiving Agency assistance. In return the Agency will receive credit for providing assistance for the construction of affordable units which it is required to do with its housing trust funds. The Agency will be able to report to the State Department of Housing and Community Development in its annual report that it is assisting in providing new construction of affordable units. ALTERNATIVES: 1) Authorize Staff to work with Habitat to develop a workable plan to develop these parcels and begin negotiation with Habitat on a Disposition and Development Agreement to detail the responsibilities of the two parties for the development of the finished lots. 2) Work with Habitat to develop a plan whereby Habitat acquires the parcels from the Agency but does not receive additional assistance from the Agency and which Habitat develops agreements with local housing developers to provide for the soft costs associated with the development, and infrastructure for these parcels. 3) Take no action on this proposal or provide direction to staff on other alternatives FISCAL IMPACT: Costs to the Agency are unknown at this time. Costs will be associated with the level of development assistance provided by the Agency at the time of the actual need for assistance. ATTACHMENTS: Letter from Habitat for Humanity Proposal from Habitat for Humanity Location Map Assessor's Parcel Map Page 2 of 2 Habitat for Humanity Hemet/San Jacinto February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment Operations Manage 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any further suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, Sharon Desgro Executive Director 515 E. Kimball Avenue Hemet, CA 92543 P.O Box 1574 San jacinio, CA 92581-1574 (909) 658-0235 Habitat for Humanity Hemet/San Jacinto February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chaiiivan 248 East Main Street San Jacinto, CA 92583 Proposal: Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue Hemet, CA 92543 P.0 Box 1574 San Jacinto, CA 92581-1574 (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim HuIts, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the low income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with them. They build over 100 houses per year with Habitat. Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are being approached for house sponsorship are: Fidelity Homes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured homes to San Bernardino Affiliate. They will be approached in the near future,. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, Sharon Desgro Executive Director Construction Disc proposalsj. 02-2 -06 LOCATION MAP 431:18 7:8 A. 010-056 010-09 co' 21312 aLa W. difiV I� 11/22 3,4 443,1114 2/72 17 2/7 who 12 04 2,4,2 KVA it 21 22 23 2112 it • 112 .210, , /2 • ti 1311-0i0 4447 ell, OD -30,41 44 AlAr,1.950 POR RO. SAN JACINTO VIEJO 4 f /./ e e 04, .Dx.ass 1.0 .4“n# —6H4VER- • • sr —sr -WREST- 41.8 8/51 Kwnler Ranch Tod Addition m.s. 8/38850 firliewih4 P/o1 of Son ,A7:ilnlo 7711.$' AMP IS AMP A55625meivr PCIRPOSa crity SUBJECT PROPERTY 44744A4.444,744 4M4.6.4itt4d/44 942•P,444.4 ASSESSCIR 42AP 8/(43.3 fi6le R11/685405cawrr, CALIF ore PLAT MAP February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment Operations Manager 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any further suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, Sharon Desgro Executive Director 515 E, Kimball Avenue • Hemet, CA 92543 P.O Box 1574 • San Jacinto, CA 92581-1574 • (909) 658-0235 February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chairman 248 East Main Street San Jacinto, CA 92583 Proposal: Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue • Hemet, CA 92543 P,O Box 1574 • San Jacinto, CA 92581-1574 • (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim Hults, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the low income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with them. They build over 100 houses per year with Habitat. i:::: 1:: Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are being approached for house sponsorship are: Fidelity Homes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured homes to San Bernardino Affiliate. They will be approached in the near future. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, Sharon Desgro Executive Director Construction Disc proposalsj. 02-21-06 ChyCouncil Minutes Deoember1O.2OO4 Paqe23of23 Approved as amended �� AGENDA ITEM 3 2005 TO: Chairman and Members of the Redevelopment Agency Board FROM Steven G. Pasarow, Redevelopment Operations Manager SUBJECT: Proposal by Habitat for Humanity to Acquire +/- 509 Gross Acres on Seventh Street: APN's 433-180-029; 031; 032; and 034 for Affordable Housing RSCQMMENDATI©N: Authorize staff to open negotiations with Habitat for Humanity to acquire +/- 5.09 gross acres on Seventh Street east of Donna Way for the purpose of building affordable single family housing units. ARV; Habitat for Humanity has proposed a partnership with the Redevelopment Agency of the City of San Jacinto, itself and potentially several local home builders to acquire Agency land, consolidate parcels, prepare a subdivision map and provide infrastructure improvements to allow the development of affordable single family housing units. BACKGROUND; On January 26, 2006 and February 14, 2006, Community Development staff met with members of the Habitat for Humanity Board of Directors and their Executive Director regarding a proposal for the Agency to assist Habitat in the acquisition of vacant land which would allow them to construct affordable single family housing units over a five year period. DISCUSSION: In thesemeetings staff indicated that the Agency owed a parcel of land zoned for single family residential units of approximately 5.09 acres on Seventh Street, south of Donna Way and north of North Mountain Middle School. Staff indicated that should the Agency be interested that the Agency may consider providing assistance ti Page 1 of2 parcel to include funding for the transfer of the land, consolidation of the several small parcels into one sub -dividable parcel, preparation of a subdivision map, grading of the site to provide individual building pads and providing the infrastructure such as streets, sewers, water and electrical to the individual pad, Habitat would work with its partners, including several of the prominent local housing development firms such as Lennar Homes, Young Homes, Griffin Communities, D.R. Horton and others for donations of material, manpower and management expertise to build affordable single family housing units on the pads. Habitat would also select the families topurchase the finished homes and place restrictive covenants on the title of the homes to ensure that the homes remain affordable for the longest feasible time as required by Statelaw when receiving Agency assistance. In return the Agency will receive credit for providing assistance for the construction of affordable units which it is required to do with its housing trust funds. The Agency will be able to report to the State Department of Housing and Community Development in its annual report that it is assisting in providing new construction of affordable un ALTERNATIVES: 'f) Authorize Staff to work with Habitat to develop aworkableplan to develop these parcels and begin negotiation with Habitat on a Disposition acid Development Agreement to detail the responsibilities of the two parties for the developmentofthefinishedlots.: 2j Work with Habitat to develop a plan whereby Habitat acquires the parcels from the Agency but does not receive additional assistance from the Agency and which Habitat develops agreements with local housing developers to provide for the soft costs associated with the development, and infrastructure for ° these parcels. ake no action on Iternatives FISCAL IMPACT: Costs to the Agency are unknown at this time. Costs will be associated with the level of development assistance provided by the Agency at the time of the actual need for assistance. his . proposal or. ovide direction to staff on other A'TACHMEN' Letter from Habitat for Humanity Proposal from Habitat for Humanity Location Map Assessor's Parcel Mal abitat for unity e et/Sa Jacinto February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment evelopment Operations Manager 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any further suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, ✓i.�':L'��-mot_ Sharon Desgro Executive Director 515 E. Kimball Avenue ® Hemet, CA 92543 P.O Box 1574 ® San Jacinto, CA 92581-1574 ® (909) 658-0235 February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chaiiman 248 East Main Street San Jacinto, CA 92583 Prop saL Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue Hemet, CA 92543 P.O Box 1574 San Jacinto, CA 92581-1574 (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim Hults, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the low income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with them. They build over 100 houses per year with Habitat. Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are being approached for house sponsorship are: )Fidelity Homes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured homes to San Bernardino Affiliate. They will be approached in the near future. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, Sharon Desgro Executive Director Construction Disc proposalsj. 02-21-06 W w ,_ Pt-U" 43b/ 18 na w. 11/72 3,e hew NO. 11111.1119 21711 n Or76 It .1i • A...6 .A9 �. BI 15 • JI Js.Y6 T.R.A. 010- 056 010.039 MAY, n3PO POR. RC7. SAN JACINTO V/EJO M.8.. 8/5/ Komle/ Roach Tract Addition M.B. 8/386 S.0 H. rld'w/// s Pln/ or Srm d rm10 7713S MAP IS MAP ASSESSMENT P+ PaSES ()NU SUBJECT PROPERTY a PLAT MAP ASSESSOR'S MAP PK 433 Fq. 19 RACPS! caivrY, CAU Message Page 1 of 2 Steven Pasarow From: Dorothy Chouinard Sent: Sunday, March 05, 2006 12:17 PM To: Steven Pasarow CZA/\--,k/4 kit T--N 01,5w-4.6 wr(.1,1_61-SP t 4-c p)(c_ Subject: RE: Habitat Closed Session Item for March 16th Steven: From the e-mail I'm going to assume it is RDA agenda only. Let me know if it is supposed to be CC, too. Dn-rthei. Chot.riv,Rra, Cite clerle cite of.samjacikt-to .24g E maim -Street SaviJacigto, CA _925g.3 dchouinard@sanjacintoca.us Phone (951) 487-7339 Fax (951) 654-3728 From: Steven Pasarow Sent: Friday, March 03, 2006 9:17 AM To: Dorothy Chouinard Cc: Laura Cuthbert Subject: FW: Habitat Closed Session Item for March 16th Dorothy, Laura, this is the language for my closed session RDA item for March 16th with Habitat. This was prepared by Jeff Ballenger's office at my request so we would have the proper language for the agenda. Steven. From: Mary K. Stracke [mailto:Ma .5tracke@bbklaw.corn] Sent: Friday, March 03, 2006 9:02 AM To: Steven Pasarow Cc: Jeff S. Ballinger Subject Habitat Closed Session Item for March 16th CONFERENCE WITH REAL PROPERTY NEGOTIATORS Properties: Assessor Parcel Numbers 433-180-029; 433-180-031; 433-180-032; 433- 180-034 Agency Negotiator: Steven Pasarow, Redevelopment Operations Manager Negotiating Party: Habitat for Humanity Hemet/San Jacinto Under Negotiation: Price and terms Original Message ----- From: Jeff S. Ballinger Sent: Wednesday, March 01, 2006 5:17 PM 3/13/2006 AGENDA T NS TTAL FO TO: Dorothy L. Chouinard, City Clerk Enclosure: Staff Report for Redevelopment Agency Meeting of March 16, 2006. XX Closed Session RDA: Proposal by Habitat to Acquire +/- 5.09 gross acres on Seventh Street; APN's 433-180-029; 031; 032 & 034 for Affordable Housing Consent Calendar Item Public Hearing Item: Notice required yes no Copy attached yes no Published (date(s)) Notices sent (date(s) City Departments Item : Attachments include: A. Cover Letter from Sharon Desgro, Habitat Executive Director B. Proposal from Sharon Desgro, Habitat Executive Director C. Location Map Other: - Please provide a fully executed copy of documents to: Please record and return conformed copy Your IMMEDIATE attention is necessary Comments: DATE: 36400 [Name], [Title] %) • 0 rt.'s, ivlq P. • \\San.Jacl \Users\SPasarow\Agenda - CC Transmittal Form.doc AGENDA ITEM March 16, 2005 TO: Chairman and Members of the Redevelopment Agency Board FROM: Steven G. Pasarow, Redevelopment Operations Manager SUBJECT: Proposal by Habitat for Humanity to Acquire +/- 5.09 Gross Acres on Seventh Street: APN's 433-180-029; 031; 032; and 034 for Affordable Housing RECOMMENDATION: Authorize staff to open negotiations with Habitat for Humanity to acquire +/- 5.09 gross acres on Seventh Street east of Donna Way for the purpose of building affordable single family housing units. SUMMARY: Habitat for Humanity has proposed a partnership with the Redevelopment Agency of the City of San Jacinto, itself and potentially several local home builders to acquire Agency land, consolidate parcels, prepare a subdivision map and provide infrastructure improvements to allow the development of affordable single family housing units. BACKPROUND: On January 26, 2006 and February 14, 2006, Community Development staff met with members of the Habitat for Humanity Board of Directors and their Executive Director regarding a proposal for the Agency to assist Habitat in the acquisition of vacant land which would allow them to construct affordable single family housing units over a five year period. DISCUSSION: In these meetings staff indicated that the Agency owed a parcel of land zoned for single family residential units of approximately 5.09 acres on Seventh Street, south of Donna Way and north of North Mountain Middle School. Staff indicated that should the Agency be interested that the Agency may consider providing assistance ti Approvals City Manager: Finance Director: Page 1 of 2 parcel to include funding for the transfer of the land, consolidation of the several small parcels into one sub -dividable parcel, preparation of a subdivision map, grading of the site to provide individual building pads and providing the infrastructure such as streets, sewers, water and electrical to the individual pad. Habitat would work with its partners, including several of the prominent local housing development firms such as Lennar Homes, Young Homes, Griffin Communities, D.R. Horton and others for donations of material, manpower and management expertise to build affordable single family housing units on the pads. Habitat would also select the families to purchase the finished homes and place restrictive covenants on the title of the homes to ensure that the homes remain affordable for the longest feasible time as required by State law when receiving Agency assistance. In return the Agency will receive credit for providing assistance for the construction of affordable units which it is required to do with its housing trust funds. The Agency will be able to report to the State Department of Housing and Community Development in its annual report that it is assisting in providing new construction of affordable units. ALTERNATIVES: 1) Authorize Staff to work with Habitat to develop a workable plan to develop these parcels and begin negotiation with Habitat on a Disposition and Development Agreement to detail the responsibilities of the two parties for the development of the finished lots. 2) Work with Habitat to develop a plan whereby Habitat acquires the parcels from the Agency but does not receive additional assistance from the Agency and which Habitat develops agreements with local housing developers to provide for the soft costs associated with the development, and infrastructure for these parcels. 3) Take no action on this proposal or provide direction to staff on other alternatives FISCAL IMPACT: Costs to the Agency are unknown at this time. Costs will be associated with the level of development assistance provided by the Agency at the time of the actual need for assistance. ATTACHMENTS: Letter from Habitat for Humanity Proposal from Habitat for Humanity Location Map Assessor's Parcel Map Page 2 of 2 Habitat for Humanity Hemet/San Jacinto February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment Operations Maria- 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any farther suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, 71* Sharon Desgro Executive Director 515 E. Kimball Avenue Hemet, CA 92543 P.0 Box 1574 San Jacinto, CA 92581-1574 (909) 6.38-0235 February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chairman 248 East Main Street San Jacinto, CA 92583 Proposal: Reference: Habitat for Humanity Hemet/San Jacinto Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue a Hemet, CA 92543 P.O Box 1574 • San Jacinto, CA 92581-1574 (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim HuIts, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the tow income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with them. They build over 100 houses per year with Habitat. Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are being !u proached for house sDon.so hzp are. Fidelity Ho nes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured horses to San Bernardino Affiliate. They will be approached in the near future. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, Sharon Desgro Executive Director Construction Disc proposalsj. 02-21-06 LOCATION MAP sow INERNIMa 1"2 43381:18 78. A. 010,-016 010.039 5K it 111.0 w 00,00 3 17 win 12 .14 0/TI 9 411 rp 918 tit 4/90 20 2191F 23 4.$.1 19 1* 9 07 017 2RRO SAN JACINTO VIE/0 " 0,0-1,4c„ esr_svm,, a MAY, IMO Me 8/51 Kumler Ranch Tract Addition N.B. 8/386 5Q H.T. Newt? t Pk7/ of Sun Jacinto PLAT MAP 77002 0000' AS MN. Assessmewr ORPOSES aver SUBJECT PROPERTY 25 immins.,4x,00 a.,,ve.61,i0s.00r00 Imr.r,40.4 A.995:550#5 MAP 8K 435 M e RA/ER.57De COUNTY, CAUP February 23, 2006 City of San Jacinto Steven G. Pasarow Redevelopment Operations Manager 248 East Main Street San Jacinto, CA 92583 Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Pasarow: Thank you for meeting with members of the Habitat for Humanity Board of Directors and myself on January 26, 2006 and again on February 14, 2006. We appreciate your time and input of information in connection with the City of San Jacinto's project East of North Mountain Middle School. Enclosed is the proposal that Habitat for Humanity is submitting in reference to the above mentioned property as we understood it. If you have any further suggestions, please contact the office at 658-0235. We would like to present as strong a Proposal as possible. Thank you again for your help on these matters. We appreciate all that you do for us. Sincerely, Sharon Desgro Executive Director 515 E Kimball Avenue • Hemet, CA 92543 P.O Box 1574 • San Jacinto, CA 92581-1574 • (909) 658-0235 ci February 23, 2006 City of San Jacinto Redevelopment Agency Dale Stubblefield, Chairman 248 East Main Street San Jacinto, CA 92583 Proposal: Reference: Property East of North Mountain Middle School APN 433-180-029 APN 433-180-031 APN 433-180-032 APN 433-180-034 Dear Mr. Stubblefield and Members of the Redevelopment Agency: It has come to Habitat's attention that the City of San Jacinto is interested in partnering with us on a project which would help to satisfy the State of California's "Inclusionary House Ordinance" and Habitat's mission. As the City is aware, Habitat For Humanity builds simple decent houses for very low and low income families that cannot qualify for a home loan in the conventional manner. The majority of the work is done by volunteers, current homeowners and the selected family. Each family is required to put in at least 500 hours of "Sweat Equity" or labor on theirs and their neighbors house. Habitat for Humanity empowers low-income families by partnering with them to build affordable housing. The homes are not given away, but they are sold to the families in need for NO INTEREST/NO PROFIT. The mortgage payments are arranged to fit into the families' budget, then the mortgage payments are recycled to build more homes. The Hemet/San Jacinto Affiliate has built twelve homes and is working on the thirteenth house locally and has built ten international houses through the tithe program. Habitat for Humanity International has completed over 200,000 homes world wide which provide shelter for over one million people. The majority of family members whose lives improve through Habitat housing are children. For them, a decent place to live makes all the difference in the world. 515 E. Kimball Avenue • Hemet, CA 92543 P,O Box 1574 • San Jacinto, CA 92581-1574 • (909) 658-0235 Hope is the foundation for Habitat for Humanity's daily work. We have hope and vision that someday all people will have a place to call home. We have hope that every child will have a safe place to sleep each night. We have hope that communities will come together as partners in this mission to end poverty housing. We see this project as a very positive step for the people of San Jacinto and a beautiful opportunity to build a Habitat community where everyone in the neighborhood is on the same economic level. Project: As we understand the project, after a meeting with the Redevelopment Operations Manager, Steven Pasarow, and The Community Development Director, Tim Hults, the City would do all of the soft costs of the project. Which would include the following: consolidate the four parcels, have a subdivision survey done, design the lots, hire an engineer to do the subdivision map, do the grading plan, do the curbs, gutters, sidewalks, streets, street lights, bring the utilities up to the lot line and generally prepare the lots for building. Then the lots would be released to Habitat in increments as needed or the lots would be release as the houses are completed. Developers would have property with which they could satisfy the Cities' requirements for Inclusionary Housing. They would be encouraged to build or provide labor, or donate materials , funding, or other resources which they possess. Habitat would provide the house designs: the low income potential homeowners from San Jacinto, who have been residents for at least a year; all of the materials, labor, and supervision to build the houses in conjunction with the local developers. We see this project as a five year venture from the time the of the first incremental release. If the pads are completed as described above, we believe that Habitat could build three houses the first year without the help of out side developers. With the help of developers we could build more depending on the developers participation. Some of the Developers that Habitat has contacted are: Alexander Communities Meritage Homes Heritage Pacific Homes (Santa Bella Griffin Communities D. R. Horton Lennar Homes (Centex Homes) Young Homes Habitat International also has a list of companies that partner with Habitat to finance and build hundreds of homes per year. Some of the companies that will be approached are: Citigroup has helped finance three Habitat houses in this area. One on Sixth Street in San Jacinto. We expect a long and continued relationship with their. They build over 100 houses per year with Habitat. Thrivent Build a Lutheran association that builds Habitat houses. Their Corporate Office provides 70% of the financing, the local office provides 10%. Thrivent has approached us for the 2007 round of financing. A Lutheran grant was used to finance the house on Old Second Street in San Jacinto. The Home Depot has sponsored one and a half houses in this area. Old Second Street was one of their houses. They have continued their support of Habitat across the nation. Coldwell Bankers are celebrating their centennial anniversary and are building one hundred homes for Habitat to celebrate their success. Washington Mutual is getting ready to sponsor a house. They have given this Affiliate several large donations. Other contacts that are being approached for house sponsorship are: Fidelity Homes has built two Habitat houses for the San Bernardino Affiliate and is coming to Hemet. Skylines Mobil Homes has donated several manufactured homes to San Bernardino Affiliate. They will be approached in the near future. The Churches in the Valley have raised enough funds for half a house in the past and they will be approached for more participation. The Board of Directors and I would like to thank the City of San Jacinto and each person involved with this project for this consideration. We welcome the opportunity to work with the City of San Jacinto once again. Habitat will need an instrument from the Agency to show potential donors and house sponsors the arrangement. In partnership, Sharon Desgro Executive Director Construction Disc proposalsj. 02-21-06