That the Housing Authority:
A.  Approve the removal of an unoccupied, uninhabitable mobile home and authorize its replacement with a new manufactured home at 1731 West Lambert Road, Space 78;

B.  Authorize Augusta Communities to act as the licensed retailer on behalf of the Housing Authority under Section 3.3 of the Asset and Mobile Home Park Management Agreement between the Housing Authority and Augusta Communities dated November 4, 2019;

C.  Authorize the Executive Director to sign, and/or approve any documents including but not limited to bids, proposals, agreements, invoices and purchase orders needed for the removal of the existing manufactured home, as well as the purchase and installation of the new manufactured home; including construction cost; and,

D.  Approve a budget appropriation of $164,352 from the Housing Authority Fund.

The La Habra Housing Authority owns and operates two mobile home parks in the City of La Habra: Park La Habra and View Park Mobile Home Estates ("View Park"). The owner of the mobile home located at space 78 in View Park recently sold their mobile home without getting the new applicant pre-approved by park management. In reviewing the application, once it was filed, park management determined that the prospective new owner was not qualified to purchase the unit. The original owner of the unit informed park management that they would arrange to have the mobile home removed from the park, but unfortunately the mobile home was never removed.  Subsequent legal action was taken by park management, and space 78 went into a lien sale on February 1, 2021.  There were no bidders for the mobile home and the Housing Authority filed paper work to become the legal owner of the unit.
 
The mobile home currently occupying space 78 was manufactured in 1963 and is in uninhabitable condition.  The work that would need to be performed to make the mobile home habitable would include, but is not limited to: repair or replacement of the roof, subflooring, flooring, two sets of stairs, HVAC, plumbing, electrical and siding.  A complete renovation of the kitchen and bathroom is also necessary. Given the declining values of manufactured homes as they age, the substantial renovation cost would not likely yield a return of investment.  On the other hand, a brand-new manufactured home would be equipped with modern conveniences and would meet applicable code and energy standards.

The Manufacturing Housing Act of 1980 and later amendments requires that a person be a licensed retailer with the State Department of Housing and Community Development (HCD) in order to transact business related to the purchase and sale of new manufactured homes, mobile homes, multi-family manufactured homes and commercial modular.  If the Authority Board approves this action, a licensed retailer will oversee the removal of the old mobile home, the purchase and installation of the new manufactured home, and ensure any necessary upgrading of utilities.  Augusta Communities (Augusta) is an experienced licensed retailer and is able to complete the aforementioned project elements pursuant to Section 3.3 of the Agreement by and between the Housing Authority and Augusta Communities.

The long-term goal of the Housing Authority to provide sustainable affordable housing opportunities for the community will be furthered is this project is approved. Furthermore, this project will supplement the acquisition and installation efforts for new manufactured home units at the Authority's two mobile home parks, providing potential options for affordable housing programs, such as:

Permanent Supportive Housing

Homelessness is a growing crisis that continues to impact communities throughout California, including those in Orange County.  To help meet the challenge, the City of La Habra has been an active participant in the North Service Planning Area, working in close collaboration with other North Orange County cities to provide funding for short and mid-term homeless sheltering and housing.  While more shelter beds are becoming available, there remains a lack of longer-term supportive housing for individuals who seek a path out of homelessness. 

Staff has been working to develop a supportive housing program, and in the event a program is approved by the City Council, the Housing Authority would have another tool with which to provide qualified and eligible individuals a potential exit from homelessness, one that offers longer-term housing and social services options that can lead to greater independence and self-sufficiency. 

Extremely-Low Income Housing
Many families and individuals in La Habra, along with those from many Southern California communities, struggle to pay market rate rents.  An extremely-low income household typically makes 30 percent of the area median income.  For example, in 2021 an extremely-low income level for a household of four in Orange County is $40,350 per year according to the U.S. Department of Housing and Urban Development (HUD).  The same income for a household of one would be $28,250.  By creating housing options restricted to qualified extremely-low income households, La Habra could help prevent additional homelessness. 

An extremely-low income housing program could be designed that emphasizes the following:
1.  Families of four or less (could be larger families depending on the unit size) that meet the income restrictions;
2.  Elderly or disabled residents who meet the income restrictions;
3.  Veterans who meet the income restrictions.
 
Relocation of Occupants of the Apartment located in Park La Habra
There is an apartment located above the Clubhouse in Park La Habra.  In 2018 staff conducted an inspection of the apartment and found the unit to be in need of a complete rehabilitation.  Currently, a family of four rents the apartment and in order to rehabilitate the apartment, the family would need to be relocated.  The proposed manufactured home, could be utilized to relocate the residents of the apartment.  Once the apartment is vacated it can be renovated and either re-leased or used as housing for a full time onsite manager.

Staff will continue to evaluate options for affordable housing and provide recommendations to the Authority for discussion and approval at a future date.

The estimated project cost for the removal of the existing manufactured home, and the purchase and installation of a new 1,120 square foot, three-bedroom two-bath manufactured home is $164,352, including a contingency.  Below is a breakdown of the cost:

 

Staff recommends the use of available, unencumbered Housing Authority funds to pay for the costs associated with the purchase and installation of the new manufactured home.  There are sufficient funds in the Housing Authority budget to cover this expense.  A budget appropriation of $164,352 from the Housing Authority is necessary to complete the proposed project.