Rose Hill Courts Redevelopment Project

Rose Hill Courts Redevelopment Project

Project Description: The existing Rose Hill Courts public housing site is located on 5.24 acres and consists of 14 two-story, wood-frame buildings with townhouse and flat style apartments comprising 100 units and an administration building. The Rose Hill Courts Redevelopment Project (“Project”) will demolish the existing 15 structures and construct a total of 185 residential housing units (183 affordable housing units onsite plus two market-rate managers’ units). The Project includes 88 one-bedroom units, 59 two-bedroom units, 30 three-bedroom units, and eight four-bedroom units; a 6,366-square-foot Management Office/Community Building; and a “Central Park” green space, creating a park-like setting for residents. Accordingly, the Project includes ample open space and recreational amenities to promote continued community outdoor use such as outdoor communal space with shaded seating and grills, children’s play areas with tot lots, paved surfaces, and several courtyards. The Project would provide a total of 174 parking spaces onsite, with at-grade and tuck-under parking; upgraded lighting, fencing, signage, and security features; and storm drain and utility improvements. The new sustainably designed buildings would be energy efficient and the landscaping would include water-efficient irrigation. On November 26, 2019, the Housing Authority of the City of Los Angeles (“HACLA”) Board of Commissioners (“BOC”) certified an Environmental Impact Report for the Project; adopted Environmental Findings of Fact under the California Environmental Quality Act, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program; and approved the Project. The Board of Commissioners also authorized additional predevelopment funding authority of up to $375,000 under the current Predevelopment Loan Agreement with Related Companies of California, LLC (“Developer”) to continue to fund design and engineering expenditures necessary to make Plan check submissions to the City of Los Angeles by December 2019 for Phase I of the Project, and other City Fees necessary for the entitlements. Lastly, the Board approved the Relocation Plan for the Project prepared in accordance with the requirements of the Uniform Relocation and Real Property Acquisition Policies Act of 1970, as Amended and Corresponding Relocation Requirements at 49 CFR Part 24, HUD Handbook 1378, California Government Code section 7260, and Title 25 of the California Code of Regulations. Then, on January 23, 2020, the HACLA BOC authorized the President and CEO to enter into a Disposition and Development Agreement (“DDA”), a long term Ground Lease and Predevelopment Loan documents with Rose Hill Courts Housing Partners Phase I, LP and Rose Hill Courts Housing Partners Phase II, LP for the Project; authorized predevelopment funding for additional design, technical work necessary to finance and develop the Project; and authorized entering into a Consulting Agreement with Related to reimburse up to $500,000 in master planning and predevelopment services. Thereafter, on August 27, 2020, the HACLA BOC adopted a resolution authorizing the President and CEO to enter into a First Amendment to the DDA for Rose Hill Courts – Phase I to provide up to $2,850,000 in additional gap funding to Rose Hill Courts I Housing Partners, L.P. or to make a loan to Housing Promise Corporation in connection with the redevelopment of Rose Hill Courts Phase I and to execute any and all documents and agreements related thereto and to undertake various actions in connection therewith. The additional funding addresses the funding shortfall caused by current economic conditions and increased cost estimates. Most recently, on April 22, 2021, HACLA adopted a resolution approving the terms of a Ground Lease with the developer, Related/Rose Hill Courts I Development Co., LLC, a California limited liability company, a single purpose entity with The Related Companies of California, LLC (“Partnership”), wherein HACLA will lease 1.79 acres of land associated with the Project for the Fair Market Value of $7,100,000 to the Partnership for a period of 75 years with two options at HACLA’s discretion to extend by another 12 years for each option, for a maximum lease term of 99 years. The Department of Housing and Urban Development (“HUD”) will release the public housing Declarations of Trust on the Phase I property and record a Rental Assistance Demonstration Use Agreement and there will be a Section 18 affordability restriction embedded in the Ground Lease. HACLA also negotiated a Purchase Option to acquire the Project from the Partnership after the end of the 15-year tax credit compliance period. The Ground Lease provides that HACLA will have oversight of the Project and an affiliate of the Developer will be the Property Manager.

Los Angeles

Los Angeles

Los Angeles