CC - Item 5A - PresentationSan Gabriel Valley Council of GovernmentsRegional Early Action Planning (REAP) 2.0 Affordable Housing IncubatorHART PROPERTIES (APNs: 8594-022-900, -901, -902 & 8594-027-900)Site AnalysisPrepared by Harris & Associates CITY OF ROSEMEAD | CITY COUNCIL | JUNE 23, 2026
PROJECT BACKGROUND4,612Rosemead's 6th Cycle RHNA Obligation (2021–2029)December 2023City Acquired the Properties•Four vacant parcels along Hart Avenue.•Identified as key opportunity sites to support RHNA housing goals.August 2025SGVCOG Technical Assistance•Partnered with SGVCOG for technical assistance.•Study focused on affordable housing opportunities for the sites.November 2025Project Initiation •Harris retained conduct a comprehensive economic analysis, develop site designs, and present implementable project plans for consideration by City Council.Affordable Housing Incubator — Hart Properties | June 23, 20262
METHODOLOGY•Site Characteristics & Zoning•Unit Capacity and TypeDevelop Project Prototypes•Affordable vs. Market-Rate Unit Mix•Targe income levels (110% AMI)Define Assumptions•Projected sales revenue and development costs•Funding gapsAnalyze Financial Feasibility•Funding needs and sources•Next StepsEvaluate ResultsAffordable Housing Incubator — Hart Properties | June 23, 20263
SITE 1 — Marshall St. & Hart Ave. 3 (APNs: 8594-022-900, -900, -902)Parcels0.84 acresLot Size (Acres)Single Family Residential (R-1)Current ZoningPlanned Development (P-D)Proposed ZoningHigh Density Residential (proposed)GP Designation6 (30 proposed)Max Density (du/ac)6 (25 proposed)Max Unit Capacity1 (APN: 8594-027-900)Parcels0.18 acresLot Size (Acres)Medium Multiple Residential (R-3) / Design Overlay (D-O)Current ZoningNoneProposed ZoningHigh Density ResidentialGP Designation30Max Density (du/ac)5Max Unit CapacitySITE CHARACTERISTICSSITE 2 — Ramona Blvd. & Hart Ave.Affordable Housing Incubator — Hart Properties | June 23, 20264
•30 total housing units developed for fee simple ownership •5 units moderate-income units •Require usage of density bonus law, concessions, and waivers.PROPOSED SITE PLANSAffordable Housing Incubator — Hart Properties | June 23, 20265
PROTOTYPESSITE 1/PROTOTYPE ASITE 2/PROTOTYPE BAffordable Housing Incubator — Hart Properties | June 23, 20266
PROTOTYPE CHARACTERISTICSPrototype BPrototype APrototype Characteristics:21Site01Lot Area (ac)33Stories10P0107P1255P2309P3403P45624Total Units3528Density (du/ac)1148Garage Spaces67,23534,284Residential SF7N/A1,500Open Space SFN/A1,690Courtyard SF1,9609,450Driveways SFN/A162Open Parking Spaces SF1,1605,010Landscaping SF10,35552,096Total SFAffordable Housing Incubator — Hart Properties | June 23, 20267
Two Affordability ScenariosScenario 1 — 80/2080% market-rate + 20% moderate-incomeSimilar to an inclusionary housing requirement. Higher revenue/value, smaller funding gap.Scenario 2 — 50/5050% market-rate + 50% moderate-incomeMore homes for moderate-income families. Larger funding gap, needs more public support.AFFORDABILITYAffordable Housing Incubator — Hart Properties | June 23, 20268
Project ValueRevenue from sellingall completed homes(market-rate + affordable)−Development CostsConstruction + permits+ soft costs + financing+ entitlement costs=Residual Land Value (RLV)What remains to payfor the land aftercovering all other costsThen compare the RLV to the market cost of land → this tells us whether the project is financially viable:RLV ≥ Land Cost✓Project is FEASIBLERLV < Land CostFunding Gap ExistsFEASIBILITY ANALYSISAffordable Housing Incubator — Hart Properties | June 23, 20269
KEY FINDINGSMarshall St. & Hart Ave. | 24 Townhome UnitsRamona Blvd. & Hart Ave. | 6 Townhome UnitsAffordable Housing Incubator — Hart Properties | June 23, 202610
PROTOTYPE A80/20 Scenario 50/50 ScenarioKEY FINDINGS – SITE 1 (PROTOTYPE A)Marshall St. & Hart Ave. | 24 Townhome Units
80/20 Scenario50/50 ScenarioKEY FINDINGS – SITE 2 (PROTOTYPE B)Ramona Blvd. & Hart Ave. | 6 Townhome Units
Every prototype under every scenario requires additional financial support. Gap Per UnitFunding GapLand CostRLVScenarioUnitsPrototype / Site($149K)($3.6M)$3.9M$280K80/2024Prototype A (Site 1)($248K)($6.0M)$3.9M($2.1M)50/5024Prototype A (Site 1)($118K)($707K)$785K$77K80/206Prototype B (Site 2)($216K)($1.3M)$785K($514K)50/506Prototype B (Site 2)Prototype B on Site 2 has a lower gaps in each scenario than Prototype 1 on Site A80/20 Scenario consistently has a lower gapFINDINGS SUMMARYAffordable Housing Incubator — Hart Properties | June 23, 202613
A layered approach is recommended — combining strategies that reduce project costs with programs that help homebuyers afford the purchase.REDUCE DEVELOPMENT COSTSEVELOPMENT COSTS1Land Write-Down / Contribution2Community Housing Development Organization (CHDO)HOMEBUYER ASSISTANCE4CalHFA MyHome & CalPlus5Direct Down Payment Assistance6Employer-Assisted HousingFUNDING STRATEGIES3Community Land Trust (CLT)Affordable Housing Incubator — Hart Properties | June 23, 202614
•Change zoning to Planned Development (P-D) Zone and Land Use Designation to High Density Residential (HDR) to allow for more development on Site 1.NEXT STEPSAffordable Housing Incubator — Hart Properties | June 23, 202615
•Evaluate the State Density Bonus Law concessions andwaivers needed to allow more units and improve project feasibility.•Explore ways to sell or lease City-owned properties for development,including partnering with a Community Housing DevelopmentOrganization (CHDO) or a Community Land Trust (CLT).•Continue identify funding options for development and potentialhomeowners.•Issue a Request for Proposals (RFP)ADDITIONAL STEPSAffordable Housing Incubator — Hart Properties | June 23, 202616
DISCUSSIONQuestions?Affordable Housing Incubator — Hart Properties | June 23, 202617