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Home My WebLink AboutRDA RES 558RESOLUTION NO. 558 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE REPLACEMENT HOUSING PLAN FOR COUNTRY VILLAGE APARTMENTS NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency ("Agency") is required to adopt a Replacement Housing Plan that details the measures the Agency will take to replace affordable housing units within four years of removal of said units ("four-year period"). Section 2. As part of the Country Village Apartments project ("projecY'), the Agency has removed 66 apartment units, of which 56 were available to very low, low, and moderate income households. Section 3. The Agency hereby adopts the Replacement Housing Plan (the "Plan") attached hereto and incorporated herein by this reference, which details the measures the Agency will take to replace all affordable housing units removed in connection with the project, including a description of the number of affordable housing units that were already available in the Agency's inventory of such units, when the 56 units were removed in connection with the project. Section 4. The Plan describes the affordable housing units, existing and/or approved for construction, that will be available within the four-year period to replace all affordable housing units removed as part of the project. Section 5. The Executive Director of the Agency shall have the authority to implement and administer the Plan in accordance with its terms so long as such action is not inconsistent with the Plan's intent. PASSED, APPROVED AND ADOPTED by the Palm Desert Redevelopment Agency, this 23`� day of Aqril 2009 by the following vote, to wit: AYES: BENSON, FERGUSON, FINERTY, KELLY, and SPIEGEL NOES: NONE ABSENT: NONE „ ; ABSTAIN: NONE ' ' �-� — � " j1 G . � -��;, -; f�-1� R BERT A. IE EL, CHAI ' MAN ATTEST: RA EL D. KL SEN, ECRE ARY PALM DESERT REDEVELOPMENT AGENCY [This page has intentionally been left blank.] RESOLUTION N0. 558 REPLACEMENT HOUSING PLAN FOR THE COUNTRY VILLAGE APARTMENTS 42-455 Washington Street Prepared for THE PALM DESERT REDEVELOPMENT AGENCY BY Overland, Pacific & Cutler, Inc. 41555 Cook Street, Suite 250 Palm Desert, California 92260 (760) 776-1238 March 25, 2009 Replacement Housing Plan v3 .040309 RESOLIITION N0. 558 I. INTRODUCTION II. PROPOSED DEVELOPMENT CONCEPT III. UNITS TO BE REPLACED IV. ANNUAL INCOME RESTRICTIONS V. LOCATION OF REPLACEMENT HOUSING Vi. FINANCING THE REPLACEMENT HOUSING 1 3 5 7 8 .� VII. NON-APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION 10 VIII. TIME TABLE FOR REPLACEMENT HOUSING IX. SUMMARY 11 12 Replacement Housing Plan RESOLDTION NO. 558 The Palm Desert Redevelopment Agency ("Agency") acquired a 66 unit multi-family housing development located at 42-455 Washington Street in 2005. The property was in need of substantial deferred maintenance. In early 2006, the Agency engaged a professional consulting firm to undertake a detailed technical evaluation ot the existing improvements and an overall assessment of the site to determine its best use. As a result of the evaluation, the Agency determined that the physical condition of the property did not make it cost effective to retain the existing structures and rehabilitate it. Instead, the Agency has demolished the existing improvements. Section 33413(a) of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided, the agency shall within four years of the destruction or removal, rehabilitate, develop, construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. When dwelling units are removed after January 1, 2002, 100% of the replacement dwelling units shall be available at affordable housing cost to persons in the same or a lower income category, as the persons displaced from those destroyed or removed units. Section 33413.5 of the Community Redevelopment Law requires an agency to adopt a replacement housing plan wheneve� the agency executes an agreement for acquisition of real property, or an agreement for the disposition and development of property or an owner participation agreement which would lead to the dest�uction or removal of dwelling units from the low and maderate income housing market. The plan shall identify the impacts that a particular redevelopment project will have on the community's supply of low and moderate income housing and detail the measures that the agency wi{I take to ensure that the appropriate replacement housing is produced within the four year time limit. Replacement Units must have an equal or greater number of bedrooms as the removed units. The replacement units must be within the agency's jurisdiction and in standard condition, and must be affordable to low and moderate income households, for the longest feasible time, as determined by the agency, but for not less than 45 years for ownership units and 55 years for rental units. Replacement Housing Plan Page 1 RESOLUTION N0. 558 56 of the removed units at the 66-unit development described above were determined to be affordable and 10 were market rate. The units were removed in March of 2009 and the replacement units must be provided within a four year time frame. Therefore, ail replacement units must be available by March 2013. This Replacement Housing P/an (the "Plan") has been prepared by the Agency as a result of the removal of the 56 units described above in order to satisfy the requirements for replacement housing contemplated under the Community Redevelopment Law. This Plan describes the following: 1) Proposed Development Concept, 2) General location of the very-low, low and moderate income dwelling units which were removed or destroyed, 3) General location and intentions for the development of the replacement housing, 4) Means of financing such development, 5) Schedule for the construction of the replacement housing, and 6) Period for which these units will remain affordable. Replacement Housing Plan Page 2 RESOLIITION N0. 558 PROPOSED DEVELOPMENT CONCEPT DESCRIPTION The Agency is proposing to develop an affordable senior rental apartment complex of approximately 70 units at 42-455 Washington Street, the Agency-owned site where the 56 removed units were tocated. The contemplated design concept wifl incorporate a blend of studios and one-bedroom units in a neighborhood friendly design. PROPOSED DEVELOPMENT LOCATION The 42-455 Washington Street s+te is located in the southeastern portion of the City of Palm Desert, west of Washington Street and north of Highway 111 and south of I-10 Freeway. The City of Palm Desert is located in Riverside County, approximately 110 miles east of downtown Los Angeles. Neighboring communities are Rancho Mirage, Palm Springs and Indian Wells. (see Figure 1, following). ^ ��- — — -- ; ��. ;:,�:,... �..� �....,. ��s�.��. I,,1.,�. �'"'� �iM[M � -0�� IA6 vwref r w� , .1 v�nY„ �u Ct�b Iaes� � . . .By��V�, ptinfYllwM l��Ct�R�6� � .. p , ; -- � •�...,.. � ��-.,�w,r� Lo�MO�(i-J��,,�,�g1•j+� .._'S� ` yy'W�G�'�"R � I...�,�.�. °�v - ,.,.�,, a..,. -4� �� — — — -- �„— --� ;�.« ...� �t�. -i ~ '�.� :.. -... 'b� ,Ibrrv� ' � �� r Or�i ' i� / ��YY�Y�. ' t� � iMr � J�ntr�:i�r hwnib �;��^` � �n .w.� • n.., � N� l I F U R M 1 � +n �4 • l�n�wxls0 .�Ob�W .'••. na Ow� 41M.Je �.. ��q�q �� 4s�.v b ;,�� ;:�..: �.��, ° � I �� .ww M'.w�w..�o: � � � �.:.�f �"^s�j ..e�_. MMu�In�NwbMfik TM�IIc�� f �r �� nr. � i�ii , �ns�ae �� fn � NnMtii �� I e _ g 4• I..u��v � t!� o `c4�.:.1l,�R.,� . ""r� �a"� N"'i°. � B�i �-e� � �M�� •�rv..i..e.�...'jlt�' ' Lr ... u°`u�' �srw-:. I �i. f .,, _.. «. ... rs� n'a i� � �� .. . � :� �....i��.�u. w.rc.Mw..ti i. �«r.�.�' ni �. �� Lwh rrw�°.., a . `. fwttiw�r-, w..w.+..�. ' � �..a k3, �+.r� w�.�.,. � ICtiw.r�YNW • • • �:.u.' .. w �.. S s�1se/�P P• e I I / i O� ��_� � �^M e�} I � �V�� '�� o-�.�..r�w.v�� . . n.:t .i .�i.t: yWfy� v � b�� ' � a hw^Mw�N �..{l:ic) lY�Yf�:', .; i�M � slml : : �. : -.G 0TP4�1Q7:OSMtr%'t�:G!+�Pa_y3.r�.iPSYF��I�L�.'-0^�i.!Si�-9_ _. �":. � 4r✓v- Figure 1: Regional Development Setting ra �w:: � . .... �� "�... � ,4`�Y I �ii �aWbM w� s�. .an. .� � t+c+� I �MM`d �r' ,. . ._.. ._ _ I Replacement Housing Plan Page 3 RESOLUTION N0. 558 The specific site location is at the southwestern corner of Avenue of the States and Washington Street; generally bounded by Avenue of the States on the north, Washington Street on the east, Dudley Drive on the south and Warner Trail on the west (see Figure 2, following). �� s§ g �QM Trxi � � yy�p,� Dr 5 0 be,s�n..n� ae � � d"1nd Ave j � � d� Som6rerc �t � I 0 �d. � � Palm De�wt Michqan Or L+r Mawn ', Vwt AWr�e Of I�p SIa,� � ca�a��na o� � I 4 M�ssoun Or N — , Oudiey Or ttl�Morou} SI N = m " I � Aw ,Cop�rigY.107005��n��'ICorpm,Norn;wF'Pliqrt,lUingMcrpsenea .,. .,,__ Figure 2: Development Site Location N � ' r aean a�r ea m � I �. ___' Replacement Housing Plan Page 4 RESOLUTION N0. 558 Per the Community Redevelopment Law, 100% of the 56 removed affordable dwelling units shall be replaced with dwelling units having an equal or greater number of bedrooms. The 56 removed units were all studio units. As a result, the replacement units must have at least 56 bedrooms. Based on the income levels of the persons displaced from the destroyed units, at least 10 of the replacement units must be available at affordable housing cost to very low income households and at least 20 additional replacement units must be available at affordable housing cost to very low or low income households. An additional 36 replacement units may be available at an affordable housing cost to moderate income households, low income households or very low income households. Table 1 defines the number of displaced households by income level. The numbers under each household income category indicate the total households displaced (the number of dwelling units) and the numbers in parenthesis indicate the total number of bedrooms destroyed for each income level. Table 1: Displaced Households by Bedroom Size & Income Level Household Size Very-Low Income Low Income Moderate Income Totals Studio/One 10 20 26 56 Bedroom (10) (20) (26) (56) (# Bedrooms) Replacement Housing Plan Page S RESOLDTION N0. 558 As described in Table 2, through December 31, 2008 the following affordable housing units/bedrooms have been developed, or are planned to be developed by 2010, within the Agency's jurisdiction. All such units are/will be available at an affordable housing cost to low or moderate income households and subject to a restrictive covenant ensuring such affordability for not less than 55 years for rental units and 45 years for owner occupied units. Addendum 1, at the end of the Plan, outlines the locations or proposed locations of these affordable units. Table 2: Affordable Housing Projects/Banked Units & Bedrooms (December 2008) Very Low Moderate Unit Size Income Low Income Income Net Banked (Existing) Units/Bedrooms 11/12 18/18 36/53 Projects Units/Bedrooms to be provided (Approved but not yet constructed) 2�2 23/32 Required Replacement Units At least 10 At least 20 No more than 26 Replacement Housing Plan Page 6 RESOLIITZON NO. 558 California Health and Safety Code Sections 50079.5 and 50105 provide that the moderate, low and very- low income limits established by the U. S. Department of Housing and Urban Development ("HUD") are the state limits for those income categories. Sections 50079.5 and 50105 direct the Department of Housing and Community Development ("HCD") to publish the income limits. HUD released new income limits in February 2008. Accordingly, HCD has filed with the Office of Administrative Law, amendments to Section 6932 of Title 25 of the California Code of Regulations. The amendments contain the new HUD income limits prepared by HCD. The following figures, shown in Table 3, are approved for use in the County of Riverside to define and determine housing eligibility by income level: Table 3: Housing Eligibility by Annual Income Level Area Median: $62,000 Family Size Very Low Lower Median Moderate 1 Person $23,300 $37,300 $43,400 $52,100 2 Person $26,650 $42,650 $49,600 $59,500 3 Person $29,950 $47,950 $55,800 $67,000 4 Person $33,300 $53,300 $62,000 $74,400 5 Person $35,950 $57,550 $67,000 $80,400 6 Person $38,650 $61,850 $71,900 $86,300 7 Person $41,300 $66,100 $76,900 $92,300 8 Person $43,950 $70,350 $81,800 $98,200 Replacement Housing Plan Page 7 RESOLDTION N0. 558 The Agency has several options available to provide replacement housing, including acquisition, rehabilitation, new construction, and the allocation of "banked" dwelling units from prior development activity. The Agency has previously funded or caused to be developed, affordable housing projects that provide surplus dwelling units and bedrooms that can be allocated by the Agency for future housing obligations. The Agency has a number of "banked" dwelling units/bedrooms to satisfy the majority of its replacement housing obligation. Such units together with the approved units that have not yet been constructed, (identified in Table 2 and Addendum 1) constitute a sufficient number of replacement units. Replacement Housing Plan Page 8 RESOLUTION NO. 558 The Agency is authorized to finance its activities with moneys from various sources, including the City of Palm Desert, State of California, United States Government, property tax increment funds, interest income, Agency bonds, or other available sources. The existing units to be used for replacement units, have been acquired, constructed or rehabilitated with various funding sources including, tax increment funds; below market rate financing through the sale of tax exempt mortgage revenue bonds; redevelopment twenty percent set-aside funds; and developer funds. Funding for the development of affordable housing units identified in the preceding section as 'approved but not yet constructed' may utilize a variety of sources including: State or Federal grants and loans, tax increment funds; below market rate financing through the sale of tax exempt mortgage revenue bonds; redevelopment twenty percent set-aside funds; and developer funds. Specific funding for future replacement housing units may be through the use of any combination of the above described methods and sources. As replacement units, the Agency may count units developed by private developers pursuant to the City's �ensity Bonus program provided that units are subject to a restrictive affordable housing covenant enforceable by the Agency. Replacement Housing Plan Page 9 RESOLIITION N0. 558 It is hereby found and determined that the replacement housing identified in this replacement housing plan does not require approval of the voters of the City of Palm Desert pursuant to Article XXXIV of the California Constitution. A portion of the housing identified in this replacement housing plan is not subject to the voter approval requirements of Article XXXIV because such housing is or will be privately owned, not exempt from real property taxes by reason of public ownership, and not financed with direct long term financing from a public body. In addition, the Agency will not "develop, construct, or acquire" housing as described in Section Z of Article XXXIV of the California Constitution because in providing assistance to developers, the Agency will only monitor construction or rehabilitation of the project and compliance with conditions of the assistance to the extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions. Replacement Housing Plan Page 10 RESOLUTION NO. 558 The Agency has provided a considerable degree of continuing support in the construction and/or rehabilitation of replacement housing units sufficient to address the replacement requirements of affordabte housing discussed in this Plan. It is the intent of the Agency to use "banked" previously developed housing units as well as housing units that have been approved but not yet constructed to fulfill its replacement housing requirement. The Agency acknowledges that replacement housing units must be affordable in the same, or lower income categories than those being removed from the low and moderate income housing market and will ensure that this result is realized. Further, any units developed as replacement housing units wil) be completed within fou� years and will remain income-restricted for the appropriate period as required by law. Replacement Housing Plan Page 11 RESOLDTION N0. SS$ In summary, a total of 56 bedrooms in 56 affordable dwelling units have been removed. Based on the 100% replacement criteria by income level, the Agency through a variety of replacement housing options will replace the 56 bedrooms affordable to very-low to moderate income households by using previously developed housing units as well as units that have been approved but not yet constructed. The result of the above actions will yield the required number of replacement dwelling units as mandated under Community Redevelopment Law. The Agency recognizes its legal and community responsibilities in this matter and will make a sincere, good-faith effort to accomplish these goals. The Agency retains its option to use other approaches and strategies not discussed herein to fulfill its replacement housing obligations in a timely manner. Replacement Housing Plan Page 12 RESOLIITION NO. 55$ Addendum 1 EXPECTED LOCATION OF INCOME-RESTRICTED REPLACEMENT UNITS The following are the actual and expected locations of income-restricted units which will be used to meet the Agency's replacement obligation of 56 units with not less than 56 bedrooms. Bedrooms & Income: Replacement location: 26 Moderate Income Bernard 73-582 Catalina Way and Sares Regis 35-751 Gateway Drive 20 Low Income: 10 Very Low Income LasSerenas 73-315 Country Club Drive and Bernard 73-582 Catalina Way and L and T Investments 73-625 Catalina Way Las Serenas 73-315 Country Club Drive Scheduled Completion: 12/2010 Completed Completed 12/2010 Completed Completed It is the adopted policy of the Agency to promote the assimilation of affordable housing throughout the City to the maximum extent possible in order to avoid concentrations of lower-income housing in certain neighborhoods. Replacement Housing Plan Page 13