05B GAMAT Affordable Housing - City Council - City of Davis

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Update on Rental of City-owned Affordable GAMAT Units & Continued Management Contract with Boschken Properties 2. Begin the outreach and recertification process early in 2013 to give existing tenants adequate notice in case they wish to relocate. 3. Standardize all rents to $1,117 for two bedroom units and $1,217 for three bedroom units, bringing rent amounts that were previously “grandfathered in” to a standard rent amount for all GAMAT Homes. 4. Wait to consider any increase in rents above the current $1,117 and $1,217 amounts until after a year of standardizing the amounts in all GAMAT Homes. With the affordability maximum at rental rates affordable to low-income (80% of Area Median Income) households, the rents could increase by $50-$60 based on current income limits. The City Council has indicated a desire to preserve a greater level of affordability in these units. In order to get all of the GAMAT Homes to the same starting place, staff recommends waiting until after the 13-14 lease year to initiate any increases to the $1,117 and $1,217 rent amounts. 5. Include a background check as part of the application and recertification process. Staff did not want to initiate this requirement mid-way with new tenants and not require existing tenants to comply. As part of the recertification process, this check will be included to review criminal and credit history of potential and existing tenants. Based on the direction to lease the twenty homes through August 31, 2014, staff recommends amending the existing management contract with Boschken Properties to extend it through that lease period and include the option for a one year renewal through August 2015. Staff makes this recommendation based on the performance of Boschken Properties to date and in an effort to maintain continuity in the marketing, income qualifying, and leasing underway. Alternatively, the City Council could choose to initiate another Request for Qualifications process, but based on the limited response to the March 2011 RFQ and the good performance of Boschken Properties, staff is supportive of maintaining the existing management company. Attachments 1. Resolution Extending Property Management Contract with Boschken Properties for GAMAT Affordable Homes 04-09-13 City Council Meeting 05B - 4
RESOLUTION NO. 13-XXX, SERIES 2013 Attachment 1 RESOLUTION AUTHORIZING EXTENSION OF THE PROPERTY MANAGEMENT CONTRACT WITH BOSCHKEN PROPERTIES FOR GAMAT AFFORDABLE HOMES THROUGH AUGUST 31, 2014 WITH OPTION FOR A ONE YEAR RENEWAL WHEREAS, the twenty single-family affordable units held by the Redevelopment Agency of the City of Davis from July 2010 until March 2011 and have since been held by the City of Davis were acquired through foreclosure but were originally provided within the City’s inclusionary housing program and were originally financed by the City and Agency, and then refinanced by the Agency with the goal of sustaining the units as affordable housing; and WHEREAS, the twenty units located at 2019 Arena Drive, 3159 Albany Circle, 3165 Albany Circle, 3186 Albany Circle, 3192 Albany Circle, 3198 Albany Circle, 2301 Glacier Place, 2303 Glacier Place, 2305 Glacier Place, 2307 Glacier Place, 2309 Glacier Place, 2311 Glacier Place, 5524 Marden Street, 5503 Tufts Street, 5509 Tufts Street, 5515 Tufts Street, 5521 Tufts Street, 5527 Tufts Street, 5533 Tufts Street, and 5539 Tufts Street were provided as low-moderate income housing units under the City’s inclusionary housing ordinance; and WHEREAS, the City indicated in its November 13, 2012 motion that it sees value in filling the vacant units with low-income tenants in order to provide affordable housing opportunities and increase revenue for the purposes of covering costs of repairs and management of this City-held asset; and WHEREAS, the City does not have adequate staffing to manage these twenty units itself and needs to contract with a professional management company for these services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Davis that the City Council approves extending the current contract with Boschken Properties for management of the properties stated above and commonly known as the GAMAT Homes through August 31, 2014, with option for a one-year renewal based upon mutual agreement. This contract with Boschken Properties will continue to include the completion of unit preparation repair work and obtaining rental occupancy of all twenty units. The management fee will remain at nine percent of rents collected, plus the cost of maintenance repairs, and additional costs associated with tenant eviction and/or collections. A fee of ten percent will continue to be added onto all substantial work contracts that exceed typical maintenance and repairs. BE IT FURTHER RESOLVED that the City Council approves the necessary contracts/agreements and budget adjustments for the revenue and expenses relating to the property management of the twenty GAMAT units. 04-09-13 City Council Meeting 05B - 5
Page 1 and 2: DATE: April 9, 2013 TO: City Counci
Page 3: Update on Rental of City-owned Affo

05B GAMAT Affordable Housing - City Council - City of Davis

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