Oakland renovation schemes may displace hundreds from their housing

Oakland renovation schemes may displace hundreds from their housing

(The Renovation / OCHI Property Transfer Scheme)

By Lynda Carson

Oakland - The City of Oakland has asked a number of local housing developers to work with the City in taking over properties owned by Oakland Community Housing, INC. (OCHI), since the housing organization became insolvent in recent past months. OCHI has 25 housing developments citywide.

Under the guise of major renovation work to be done at OCHI properties, the City is offering huge loans to developers that are willing to takeover OCHI's renter occupied properties. The City wants to transfer ownership of OCHI's properties to the developers in the process.

Needing a reason to grab the properties for transfer, the City is suddenly claiming that OCHI's properties are in need of major renovations, which may place hundreds of low-income renters at risk in the process if the renovation schemes take place.

Whether or not the renovations really need to be done, the City is trying to give away properties it does not own by offering millions in loans to local developers, plus $5,000 per unit in developers fees for each housing site up to $150,000, including free legal fees for the developers that may be challenged in court during their takeover bid of OCHI's properties, which may be considered as hostile takeovers by some lienholders or stakeholders in the properties.

A number of agenda items go before Oakland's Community and Economic Development Agency at 2pm on March 10, being part of the process to authorize the transfer of OCHI properties to local developers. This includes the authorization of millions of dollars in loans to assist in the takeover of OCHI properties under the guise of major renovations that may displace hundreds. The full City Council votes on the OCHI transfer scheme at the 6pm March 17, Oakland City Council meeting.


OCHI TENANTS PLACED AT RISK OF DISPLACEMENT BY RENOVATIONS

1) Eldridge Gonaway Commons Project Located At 1165 Third Avenue, Oakland (40 units).

2) Marin Way Court Apartments Project Located At 2000 International Boulevard, Oakland (20 units).

3) The Oaks Hotel Project Located At 587 15th Street, Oakland (84 SROs).

4) The Slim Jenkins Court Project Located At 700 Willow Street, Oakland (32 units).

See Oakland's 2pm March 10 CEDA meeting agenda below for full details and more on Oakland's renovation schemes that will displace hundreds in coming months from numerous other affordable housing sites filled with low-income renters...


(PUBLIC RECORDS)
Meeting Agenda
City of Oakland Office of the City Clerk
Oakland City Hall
1 Frank H. Ogawa Plaza
Oakland, California 94612

LaTonda Simmons, City Clerk

*Concurrent Meeting of the Redevelopment Agency
and Council Community & Economic Development
Committee

Oakland City Hall, 1 Frank H. Ogawa Plaza, Oakland, California 94612

City of Oakland Website: http://www.oaklandnet.com

2:00 PM Tuesday, March 10, 2009 Hearing Room One - 1st Floor

DEFINITION OF TERMS:
Consent Item: any action item that a subject matter Committee has forwarded to the full Council
with unanimous recommendation for approval and is not controversial, and does not have a high
level of public interest as determined by the Rules Committee.

Non-Consent Item: any action that a subject-matter Committee has forwarded to the full Council
without unanimous recommendation for approval, or having a high level of public interest, or is
controversial as determined by the Rules Committee.

Action Item: any resolution, ordinance, public hearing, motion, or recommendation requiring
official vote and approval of the City Council to be effective.

Informational Item: an item of the agenda consisting only of an informational report that does not
require or permit Council action.

Roll Call / Call to Order

COMMITTEE MEMBERSHIP:

President Jane Brunner, District 1; Patricia Kernighan, District 2; Larry
Reid, District 7; Chairperson Vice Mayor Ignacio De La Fuente, District 5

1 Approval of the Draft Minutes from the Committee Meeting held on February 24, 2009.

2 Determination of Schedule of Outstanding Committee Items
(ced 3102009)

3 Subject: Ambassadors Program Implementation

From: Council President Brunner and Councilmember Kaplan
Recommendation: Receive A Report And Recommendation On The Implementation Of
The Oakland Ambassador Program
(09-0060)

4 Subject: Central City East And Coliseum Project Areas Security

From: Community and Economic Development Agency

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*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009

Recommendation: Adopt The Following Pieces Of Legislation:

1) An Agency Resolution Authorizing A Professional Services Agreement For An
Amount Not To Exceed $180,000 With International Services Incorporated Or DTM
Corporation To Provide Unarmed Security Patrol Services In The Central City East And
Coliseum Redevelopment Areas, Allocating A Contract Compliance Fee To The City
Under The Cooperation Agreement In The Amount Of 3% Of The Contract Amount,
And Amending Resolution No. 2008-0034 To Provide That The Officers Under The
Central City East Commercial Security Pilot Program And The Coliseum Commercial
Security Pilot Program Will Be Unarmed; And
(07-1778)

2) An Agency Resolution Authorizing A Professional Services Agreement For An
Amount Not To Exceed $180,000 With International Services Incorporated Or DTM
Corporation To Provide Armed Security Patrol Services In The Central City East And
Coliseum Redevelopment Areas, And Allocating A Contract Compliance Fee To The City
Under The Cooperation Agreement In The Amount Of 3% Of The Contract Amount
(07-1778-1)

5 Subject: Affordable Housing Development Activities

From: Community and Economic Development Agency
Recommendation: Adopt The Following Pieces Of Legislation:

1) A Resolution Authorizing An Affordable Housing Development Loan In An Amount
Not To Exceed $3,850,344 To Bridge Housing Corporation For the St. Joseph's Family
Phase IIB Project Located At 2647 International Boulevard And Appropriating
$3,850,344 In Fiscal Year 2009-2010 Home Investment Partnership Grant Funds;
(09-0091)

2) A Resolution Authorizing An Affordable Housing Development Loan In An Amount
Not To Exceed $3,850,344 To Affordable Housing Associates For The 6th And Oak
Senior Homes Project Located At 609 Oak Street;
(09-0091-1)

3) A Resolution Amending Resolution No. 80477 C.M.S. To Extend By One Year The
Time Funds Are Reserved For An Affordable Housing Development Loan In An Amount
Not To Exceed $3,991,000 To Bridge Housing Corporation For The St. Joseph's Senior
Apartments Project Located At 2647 International Boulevard;
(09-0091-2)

4) An Agency Resolution Appropriating $4,225,390 From Fund Balance In Low And
Moderate Income Housing Funds To The Housing Development Program;
(09-0091-3)

5) An Agency Resolution Appropriating $464,467 Of Investment Earnings From The
2000 Subordinated Affordable Housing Bond Issue And $2,564,240 Of Investment
Earnings From The 2006 Housing Bond Proceeds Fund For Housing Development
Activities;

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*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009
(09-0091-4)

6) An Agency Resolution Authorizing An Affordable Housing Development Loan In An
Amount Not To Exceed $3,019,656 To Bridge Housing Corporation for The St. Joseph's
Family Phase IIB Project Located At 2647 International Boulevard;
(09-0091-5)

7) An Agency Resolution Authorizing An Affordable Housing Development Loan In An
Amount Not To Exceed $3,699,656 To Affordable Housing Associates For the 6th And
Oak Senior Homes Project Located At 609 Oak Street;
(09-0091-6)

8) An Agency Resolution Authorizing An Affordable Housing Development Loan In An
Amount Not To Exceed $584,000 To Paul Wang Enterprises, For The Golf Links Road
Homeownership Project Located At 8379, 8395 And 8477 Golf Links Road And To
Allow Resales Of Project Units To Households Up To 120% Of Area Median Income;
(09-0091-7)

9) An Agency Resolution Amending Resolution No. 2007-0026 C.M.S. To (1) Increase
The Amount Of An Affordable Housing Development Loan To Home Place Initiatives
Corporation By $990,000, For The Sausal Creek Homes Project Located At 2464-2470
26th Avenue For A Total Loan Amount Of $3,980,000, (2) Reduce The Affordability
Term From Perpetuity To 45 Years, And (3) Allow Resales Of Project Units To
Households Up To 120% Of Area Median Income;
(09-0091-8)

10) An Agency Resolution Amending Resolution No. 2007-0022 C.M.S. To Increase The
Amount Of An Affordable Housing Development Loan To Bridge Housing Corporation
For The St. Joseph's Senior Apartments Project Located At 2647 International Boulevard
By $850,000 For A Total Agency Loan Amount Of $4,639,000, And To Extend For 12
Months The Time Funds Are Reserved For The Project;
(09-0091-9)

11) An Agency Resolution Amending Resolution No. 2007-0020 C.M.S. To Allow An
Extension Of Time For An Existing Commitment Of Funds, Reduce The Funding
Commitment From $4,450,000 To $1,600,000, Reduce The Number Of Units From 42
To 20, And Change The Address For The Project Pride Development To Be Located At
2545 San Pablo Avenue;
(09-0091-10)

12) An Agency Resolution Amending Resolution No. 2007-0021 C.M.S. To Extend By
One Year The Time Funds Are Reserved For An Affordable Housing Development Loan
In An Amount Not To Exceed $5,133,000 To Oakland Housing Initiatives And Christian
Church Homes Of Northern California Jointly For The Harrison Street Senior Housing
Project Located At 1633 Harrison Street And 321 17th Street;
(09-0091-11)

13) An Agency Resolution Amending Resolution No. 2007-0023 C.M.S. To Extend The
Time Funds Are Reserved For An Affordable Housing Development Loan In An Amount

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*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009
Not To Exceed $1,868,000 To East Bay Habitat For Humanity For The Tassafaronga
Village Homeownership Project Located At 949 85th Avenue; And
(09-0091-12)

14) An Agency Resolution Amending Resolution No. 2008-0019 C.M.S. To Extend The
Time Funds Are Reserved For An Affordable Housing Development Loan In An Amount
Not To Exceed $2,910,000 To FHP Housing Associates For The Foothill Plaza Rental
Project Located At 6311 Foothill Boulevard
(09-0091-13)

This item is scheduled as a Public Hearing on the March 17, 2009 City
Council Agenda

6 Subject: Rehabilitation Of Existing Affordable Housing
From: Community and Economic Development Agency
Recommendation: Adopt The Following Pieces Of Legislation:

1) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $840,000 To Resources For Community Development For The
Drachma Housing Project Located At 1428 8th Street, 1510 9th Street, 1711 Goss
Street, 1030 Wood Street, 1479 12th Street, 1107 Center Street, 1503 12th Street, And
Authorizing Loan Extensions And/Or Changes In Terms For Existing Agency Loans For
The Project;
(09-0092)

2) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,257,000 To East Bay Asian Local Development Corporation
For The Effie's House (Ivy Hill) Project Located At 829 East 19th Avenue, And
Authorizing Loan Extensions And/Or Changes In Terms For Existing Agency Loans For
The Project;
(09-0092-1)

3) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,655,000 To Resources For Community Development For The
Eldridge Gonaway Commons Project Located At 1165 Third Avenue, And Authorizing
Loan Extensions And/Or Changes In Terms For Existing Agency Loans For The Project;
(09-0092-2)

4) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,200,000 To Resources For Community Development For The
Marin Way Court Apartments Project Located At 2000 International Boulevard, And
Authorizing Loan Extensions And/Or Changes In Terms For Existing Agency Loans For
The Project;
(09-0092-3)

5) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,100,000 To Affordable Housing Associates For The Oaks
Hotel Project Located At 587 15th Street, And Authorizing Loan Extensions And/Or
Changes In Terms For Existing Agency Loans For The Project.

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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009
(09-0092-4)

6) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,122,000 To East Bay Asian Local Development Corporation
For The Hugh Taylor House Project Located At 1935 Seminary Avenue, And
Authorizing Loan Extensions And/Or Changes In Terms For Existing Agency Loans For
The Project
(09-0092-5)

7) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $1,920,000 To East Bay Asian Local Development Corporation
For The Slim Jenkins Court Project Located At 700 Willow Street, And Authorizing
Loan Extensions And/Or Changes In Terms For Existing Agency Loans For The Project;
(09-0092-6)

8) An Agency Resolution Authorizing A Preservation And Rehabilitation Loan In An
Amount Not To Exceed $450,000 To The Unity Council For The Posada De Colores
Apartments Project Located At 2221 Fruitvale Avenue, And Authorizing Loan
Extensions And/Or Changes In Terms For Existing Agency Loans For The Project;
(09-0092-7)

9) An Agency Resolution Authorizing The Agency Administrator To Take Actions To
Facilitate The Transfer Of Affordable Housing Properties Owned By Oakland Community
Housing, Inc. ("OCHI") Or OCHI Affiliates To New Ownership, Including Foreclosing
On Agency Loans, Acquiring Properties At Foreclosure Sale, Transferring Properties
Affordable Housing Entities, And Assigning Agency Loans Or Lien Rights To Affordable
Housing Entities;
(09-0092-8)

10) A Resolution Authorizing Loan Extensions And/Or Changes In Terms Of Existing
City Loans For The Effie's House (Ivy Hill) Apartment Project Located At 829 East 19th
Avenue;
(09-0092-9)

11) A Resolution Authorizing Loan Extensions And/Or Changes In Terms Of Existing
City Loans For The Marin Way Court Apartments Project Located At 2000 International
Boulevard;
(09-0092-10)

12) A Resolution Authorizing Loan Extensions And/Or Changes In Terms Of Existing
City Loans For The Oaks Hotel Project Located At 587 15th Street;
(09-0092-11)

13) A Resolution Authorizing Loan Extensions And/Or Changes In Terms Of Existing
City Loans For The Slim Jenkins Court Apartments Project Located At 700 Willow
Street; And
(09-0092-12)

14) An Ordinance Authorizing The City Administrator To Take Actions To Facilitate The
Transfer Of Affordable Housing Properties Owned By Oakland Community Housing, Inc.

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*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009

14 continued from page 5 above)
("OCHI") Or OCHI Affiliates To New Ownership, Including Foreclosing On City Loans,
Acquiring Properties At Foreclosure Sale, Transferring Properties To Affordable Housing
Entities, And Assigning City Loans Or Lien Rights To Affordable Housing Entities
(09-0092-13)

This item is scheduled as a Public Hearing on the March 17, 2009 City
Council Agenda

7 Subject: Small Business Assistance Center - Implementation

From: Community and Economic Development Agency
Recommendation: Adopt The Following Pieces Of Legislation:

1) An Agency Resolution Authorizing A Contribution Of $ 469,716 From Coliseum
Redevelopment Project Funds, West Oakland Redevelopment Project Funds, Central
District Redevelopment Project Funds, Oakland Army Base Redevelopment Project
Funds And Central City East Redevelopment Project Funds, To The City of Oakland
Under The Cooperation Agreement, For Staffing, Build-Out, Operations/Leasing,
Equipment, Marketing And Contingencies For The Oakland Business Assistance Center;
And
(09-0006)

2) A City Resolution Appropriating And Allocating Up To $100,000 Of Community
Development Block Grant Funds, And Authorizing The City Administrator Or His
Designee To Hire Staff And Negotiate And Execute Agreements For Build-Out,
Operations/Leasing, Equipment, Marketing And Contingencies For The Oakland Business
Assistance Center, And Accepting A Contribution Of $469,716 For This Purpose From
The Oakland Redevelopment Agency Under The Cooperation Agreement
(09-0006-1)

This item was contineud from the February 10, 2009 Community and
Economic Development Committee Agenda

This item is scheduled as a Public Hearing on the March 17, 2009 City
Council Agenda

Open Forum (TOTAL TIME AVAILABLE: 15 MINUTES)

Adjournment

* In the event of a quorum of the City Council participates on this Committee, the meeting
is noticed as a Special Meeting of the City Council; however no final City Council action
can be taken.

NOTE: Americans With Disabilities Act
If you need special assistance to participate in Oakland City Council and Committee
meetings please contact the Office of the City Clerk. When possible, please notify the
City Clerk 48 hours prior to the meeting so we can make reasonable arrangements to
ensure accessibility. Also, in compliance with Oakland's policy for people with

Page 6 Printed on 2/27/09 City of Oakland
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
*Concurrent Meeting of the Redevelopment
Agency and Council Community & Economic
Development Committee
Tuesday, March 10, 2009

environmental illness or multiple chemical sensitivities, please refrain from wearing
strongly scented products to meetings.
Office of the City Clerk - Agenda Management Unit
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(TDD)

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LATONDA SIMMONS
Agency Secretary/City Clerk
and Clerk of the Council
ORA - Oakland Redevelopment Agency
S - Supplemental Item
Page 7 Printed on 2/27/09 City of Oakland