FOUNTAIN VALLEY : Neighbors to Protest Affordable Housing

Some residents who live near the location of a proposed affordable housing project on Heil Avenue have been bombarding City Hall with concerns and objections.

The residents have vowed to attend tonight’s City Council meeting for a hearing on the proposal to build 24 two-story townhouses.

To muster support, residents last week circulated flyers in their neighborhoods, urging citizens to attend the council meeting, which will begin at 7 p.m.

As of Friday, the city had received 224 letters from residents who are against the project, said Andrew E. Perea, planning manager.

Residents believe that the project will increase traffic, parking problems and crime in their neighborhood, as well as decrease property values.

Seal Beach-based Olson Co. is proposing the Heil Park project on the one-acre site of a former propane gas company at 11911 Heil Ave.

The developer is proposing 20 two-bedroom and four three-bedroom townhouses, priced between $99,900 to $127,900.

There would be a one-car garage for each townhouse plus 24 outdoor parking spaces for residents and guests.

But neighbors said they fear that the parking is inadequate and will result in overflow parking in their neighborhoods.

Mark Buckland, president of the Olson Co., said he will propose adding four outdoor parking spaces.

In July, 1990, the city bought the property for $650,000 with federal Community Block Grant funds.

The city hoped to develop an affordable housing project, said Lauren Sacco, housing program coordinator.

Under current plans, the Olson Co. would buy the property for $225,000.

The difference between the city’s purchase price and the sale price is the city’s contribution to affordable housing, Sacco said.

“The only reason we can sell this project as affordable is not because we’re cutting corners on construction, it’s because the city is giving us a subsidy,” Buckland said.

Perea said the homes would be sold to people with incomes at or below 80% of Orange County’s median family income of $52,700.

“Some of the concerns in opposition have been that maybe the wrong type of people might move in,” Sacco said.

“It’s not low-income housing; it’s affordable (housing). These people need to be employed and productive individuals to buy the homes.”

Sacco said one of the conditions of the purchase of a townhouse is that it cannot be resold at market-rate prices but must remain affordable housing for 30 years.

If the sale agreement is violated and the home is rented, the homeowner will be required to reimburse the city for the difference of the affordable sale price and the fair market value, she said.

Mayor Laurann Cook said the council decided to consider the proposal by the Olson Co. because of the city’s need for affordable, owner-occupied houses for families.

The city also considered proposals for affordable apartments for large families and housing for senior citizens.

“Every city in the state and county is mandated to provide moderate-income housing, and we are trying fulfill these mandates,” Cook said. “We want a project that the city can be proud of and not impact any neighborhoods.”

City Hall is at 10200 Slater Ave.