BREA : Council, Agency to Hear Condo Proposal

A proposal by Habitat for Humanity of Orange County to build a four-unit condominium complex on city-owned land will go before the City Council and the Brea Redevelopment Agency tonight.

The public hearing will mark the first time since the Redevelopment Agency was created in 1971 that it will not be composed entirely of council members. Until Councilman Carrey J. Nelson resigned from the Redevelopment Agency on Jan. 7, the City Council had sat as the Redevelopment Agency.

Former Mayor Gene Leyton, who replaced Nelson on the Redevelopment Agency, will be participating in his first agency meeting at the 7 p.m. hearing. Leyton will serve the remaining two years of Nelson’s term.

Nelson retains his seat on the council. He resigned from the agency because he owns property near the downtown redevelopment district and in the past two years had frequently had to abstain from voting on issues affecting the district.

The council and the Redevelopment Agency will vote separately on Habitat for Humanity’s proposal. Officials warn that there may be some problems in how the two agencies handle tonight’s public hearing.

“This is a first run-through for us,” City Clerk Elaine M. Capps said. “Every step we take, there will be some questions. This is like trial and error.”

Habitat for Humanity, a nonprofit, ecumenical housing ministry, is proposing to build two three-bedroom condominiums and two four-bedroom condominiums on city land on Flower Avenue. The units will be sold to families with very low income. Priced at $55,000 each, they will require a 1% down payment and have no-interest 20-year mortgages.

Families of very low income are those earning $26,350 or less a year. The median household income for Orange County is $52,700, according to a city report.

In addition to the down payment, the buyers will be required to contribute more than 600 hours of “sweat equity” to building the project.

Habitat for Humanity relies on cash and in-kind donations as well as volunteer labor and services to keep costs down.

In a report to the council, City Manager Frank Benest said the project will cost the city $291,765, of which $236,092 was used to buy the land. He added that $43,173 was spent on permit fees and demolition costs and $12,500 for improvements.

However, Benest said, the city expects to earn an estimated $48,000 in taxes over 10 years as a result of the increase in property value.

If the council and the Redevelopment Agency approve the proposal, construction is expected to start next month, officials said.