Golden Gate Village Redevelopment Framework

November 2022

Golden Gate Village (GGV) is a traditional public housing property owned and managed by the Marin Housing Authority (MHA). GGV is located in Marin City, CA, and MHA serves all of Marin County.

Like many public housing properties, GGV needs to be preserved as affordable rental housing and recapitalized to address physical needs. MHA has created a Redevelopment Plan to address the physical, financial, and social needs of GGV. This memo details the context and plans for the redevelopment of GGV.

Preserving GGV as affordable rental housing for current and future residents is in the best interest of residents and MHA. 

Marin County is faced with a tremendous shortage of affordable housing. GGV provides 296 units of rental housing to the general public. Maintaining this open availability is critical to future residents, both those on the waiting list and those yet to come. 

MHA’s plan to preserve GGV will maintain income and rent restrictions. HUD and the state of California will regulate GGV as affordable housing for at least 55 years following the start of construction. With MHA as the managing general partner, the MHA board controls the future ownership and operations of GGV.  Keeping control in the public realm ensures public policy is the controlling interest for the future use of the property.

Completing the maximum amount of rehabilitation possible is in the best interest of the residents and MHA. Affordable housing by definition is financially constrained. Attracting the greatest amount of capital to invest in physical improvements is good housing policy.

Marin City, and the Black community in Marin City, have experienced disinvestment and harm for decades. Racist actions toward the Black community have come from government policy and private citizens alike. MHA’s plan will both invest in the physical and social fabric of Marin City and offer residents from communities of color the choice to make a decision that is in the best interest of their families.

1.0 Golden Gate Village Description

Marin Housing Authority (MHA) owns and operates GGV. The property includes a total of 300 units in 29 buildings. Of the 300 units, 294 operate as dwelling units, including 44 one-bedroom units, 132 two-bedroom units, 111 three-bedroom units, and 9 four-bedroom units. The site is 29.8 acres on two parcels. 

GGV is income and rent-restricted. Incomes at initial occupancy are limited to 80% of the area median, adjusted for household size. Rents are restricted to 30% of the household’s adjusted income.

In 1957, MHA chose Frank Lloyd Wright's protege, Aaron Green, and another noted local architect, John Carl Warnecke, to design GGV. Construction was completed in 1961. In 2017, GGV was listed on the National Register of Historic Places.

Significant deferred maintenance and capital improvement are needed at the property. A 2021 Capital Needs Assessment completed by AEI Consultants reported $63,750,526 of immediate rehabilitation costs. This report relied on national construction cost data as the basis for estimating the cost of rehabilitation. This data provides the average construction cost in the country. The estimated total rehabilitation cost has not been adjusted by the geographic location factor for Marin County or inflation. 

2.0 Preferred Repositioning Option: Section 18 Disposition

The obsolescence threshold will likely be met and the FMRs are nearly more than double RAD rents.  Therefore, Section 18 Obsolescence is the most economically advantageous approach for GGV.

Under Section 18 Obsolescence, MHA is eligible to receive a net new Section 8 Tenant Protection Voucher (TPV) for every occupied unit. These TPVs can be used to enter a project Based Voucher (PBV) contract resulting in the leverage capital needed to make physical improvements. PBV contracts also require income and rent restrictions, and so will preserve affordable housing in Marin City. 

Based on eligibility, economic analysis, and desired outcomes, Section 18 Obsolescence is the preferred Repositioning option for GGV.

3.0 GGV Redevelopment Plan

Using information received from residents and stakeholders, a review of affordable housing needs and trends in Marin County, an analysis of GGV needs, and financing options, MHA staff created a framework for redeveloping GGV. 

Much of this plan embraces the goals and outcomes expressed by GGV residents. When completed, we will have accomplished a comprehensive renovation of GGV, incorporating “deep green” features, and preserving the historic integrity of the property.

-      Preserve affordability for current and future residents.

-      Bring resident services to GGV.

-      Work with the Resident Council to enhance resident empowerment.

-      Create pathways to homeownership and wealth creation.

The remainder of this section will describe the Redevelopment Framework created for GGV. 

3.1 Guiding Principles

In 2009, MHA’s board of commissioners adopted the Guiding Principles for the redevelopment of GGV. Having been adopted by the MHA Board, these Guiding Principles are policy statements that will inform the process and outcomes of a GGV redevelopment.

Protect Existing Golden Gate Village Households and Residents

Adopting resident protection mechanisms and using them throughout the process is critical to achieving this and must be a priority in any revitalization process.

Restore Golden Gate Village Economic Sustainability

This requires creating a focus on the development of resident skills and access to "Good Jobs" and enhanced connections to job training and employment opportunities in growth areas and industries.

Assure Resident Participation Throughout the Planning and Revitalization Process

Participation looks like enhanced and increased resident outreach, engagement, and inclusion of residents in the process as both members of decision-making bodies, and through participation at meetings and convenings.

Preserve Historic Marinship Heritage

Adopting resident protection mechanisms and using them through the Preservation of this unique heritage should occur through inclusion in design (ex: art, architecture, infrastructure e.g. naming and signage, etc.) and through facilities (ex: kiosks) that teach about the area’s unique history as a manufacturing hub and home to a vibrant African American community. Throughout the process is critical to achieving this and must be a priority in any revitalization process.

Promote High Quality Open Space

These open spaces must be accessible, accommodate a wide variety of uses (ex: hiking, biking, play spaces, etc.) and be conducive to building community.

Collaborate with the Marin County Community to Expand Economic Development and Job Training/Education Opportunities for GGV Residents

Expanded economic development, job training, and education opportunities must create pipelines to growth industries and relevant education pathways.

3.2 Project Goals & Objectives

Goal 1: Preserve Golden Gate Village as affordable rental housing for current and future residents.

     Objective A: Make physical improvements that address the capital needs at GGV.

     Objective B: Invest in measures resulting in reduced consumption of energy and water, increase climate resiliency, and improved indoor air quality.

     Objective C: Complete renovation in a manner appropriate to the historic designation of GGV.

Goal 2: Protect Residents’ Rights. Strengthen and Expand Affordable Housing as a Social Safety Net.

     Objective A: All GGV residents have a right to return after renovation. No current GGV resident will lose their housing because of Repositioning.

     Objective B: Create a preference for former Marin City residents to return to GGV. 

     Objective C: Work with residents to create a plan for resident involvement during the development/construction phase and long-term operating phase of GGV.

     Objective D: Recognize the role of the GGV Resident Council and sign an agreement with the GGV Resident Council memorializing roles, expectations, and outcomes. 

     Objective E: Recommend and advocate with Marin County for the passage of an anti-displacement ordinance protecting existing regulated affordable rental housing in the county.

Goal 3: Create Economic Opportunity for GGV Residents

     Objective A: Work with Marin County, service providers, and GGV residents to develop a resident services plan focused on residents' needs.

     Objective B: Establish a Resident Services endowment with up to $5,000,000 commitment from Marin County.

     Objective C: Work with Marin County to provide additional investment in fee-simple homeownership opportunities for residents of Marin City.

     Objective D: Increase utilization of the Family Self Sufficiency program combined with a match savings account program (aka Individual Development Accounts) to assist GGV residents with creating wealth.

3.3 Resident Involvement in Plan

The involvement of residents of GGV is necessary for a successful redevelopment and harmonious community thereafter. MHA will work with residents of GGV to create an involvement plan that centers the needs of the residents in the redevelopment of the site and management of the community once the redevelopment is complete. This may include the creation of a training series that informs residents of the typical redevelopment process and overall management of a site such as GGV, so that residents may be fully informed participants in conversations with MHA and developers. In addition, the Plan will also include the joint creation of a Memorandum of Understanding between MHA and the Resident Council that outlines the function and responsibilities of each party.

MHA intends to enter into an agreement with the Resident Council formalizing its role at GGV following conversion from public housing. This agreement will ensure that all interactions and communications with GGV residents will be carried out in an equitable manner, including holding meetings outside of normal business hours, providing necessary supports like childcare for residents to participate in discussions, and providing stipends to residents who attend training and participate in the drafting of agreements, policies, and operating procedures.

Specifically, MHA will seek the Resident Council’s input in the selection of a developer partner for GGV. This will include seeking input on the Request for Qualifications and having a representative on the selection committee. MHA anticipated clear and measurable outcomes and process requirements for the project to be included in the RFQ.

MHA intends to work with the Resident Council to set specific and measurable outcomes for public benefits during the construction phase. This could include a number of resident construction-related jobs, or a percentage of construction contracts awarded to minorities, women, or emerging small businesses.

MHA also intends to work with the Resident Council to establish specific roles and outcomes for residents and the Resident Council post-rehabilitation. This could include contracts with the Resident Council or resident-owned businesses for the work to affirmatively further fair housing, landscaping, or an answering service. Additionally, MHA would like to establish a protocol for the review of operating budgets for resident services to ensure year-over-year input from residents on programs and budgets.

4.0 Implementation Approach

To achieve the Project Goals and Objective identified above, MHA should use three techniques available and common for Repositioning public housing. These are Section 18 Disposition, co-development and partnership with a developer partner, and leverage of capital using Low Income Housing Tax Credits (LIHTC) and debt. Combined use of these three techniques offers the best opportunity to redevelop GGV for the best interest of the residents (current and future) and MHA.

Section 18 Disposition: Obsolescence:

As a public housing authority, MHA will submit the Disposition application to HUD. Several elements of the application’s submittal requirements and process are bulleted below.

• Obsolescence evaluation requires the submission of a capital needs assessment. HUD will accept immediate capital needs, defined as within three years. An updated capital needs assessment will be required.
• Total Development Cost (TDCs) calculations for GGV should be based on the San Jose figures published by HUD rather than San Francisco. While San Francisco is closer geographically, the built environment of San Jose is more like Marin and therefore offers a better basis for determining setting TDCs.
• HUD’s NEPA Compliance is a submittal requirement for the Section 18 application. Section 18 utilizes HUD’s Part 58 Environmental Review process. Due to the scope of work proposed, it is reasonable for the Responsible Entity to reach a Determination of Categorical Exclusion (DCE). Under the GGV Redevelopment Framework, square footage is not being added or removed, the use of the budlings is unchanged, and residents are provided a right to return.
• Despite setting the sale price of buildings / real estate by MHA to the limited partnership at the appraised value, the financing terms will be based on less than the market value, which will cause HUD to determine the sale is at less than Fair Market Value. As a result, HUD will require a Use Restriction against the property restricting occupancy to households earning less than 80% of the area median income for 30 years.
• While GGV is operating and regulated as traditional public housing, HUD's regulations prohibit the property from being used as collateral for financing. Because of these regulations, comprehensive capital improvements cannot occur until after the property is sold and the current HUD Declaration of Trust is released. Section 18 requires property transfer to a separate legal entity. The limited partnership created to make use of LIHTCs is a legal entity separate from MHA. When the property is sold and the existing HUD Declaration of Trust is removed, the real estate is available to be used as collateral for a loan.