HomeMy WebLinkAboutRDA RES 566RESOLUTION NO. 566
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY ADOPTING A FIVE-YEAR IMPLEMEN�'ATION PLAN
FOR THE AGENCY'S REDEVELOPMENT PROJECT AREAS;
AND ADOPTING THE AFFORDABLE HOUSING PRODUCTION
PLAN, AND MAKING FINDINGS APPROVING THE
AGGREGATION OF NEW OR SUBSTANTIALLY
REHABILITATED DWELLING UNITS AMONG THE PROJECT
AREAS
WHEREAS, California Health and Safety Code Section 33490(a)(1)(A)
requires all redevelopment agencies to adopt an Implementation Plan every five
years, following a duly noticed public hearing; and
WHEREAS, California Health and Safety Code Section 33490(a)(1)(A)
requires the Implementation Plan to contain the specific goals and objectives of
the agency for the project areas, the specific programs, inciuding potential
projects, and estimated expenditures proposed to be made during the next five
years, and an expianation of how the goals and objectives, programs, and
expenditures will eliminate blight within the project areas and implement the
requirements of California Health and Safety Code Sections 33334.2, 33334.4,
33334.6, and 33413; and
WHEREAS, pursuant to California Health and Safety Code Section 33490,
the Palm Desert Redevelopment Agency ("Agency") has prepared a Five-Year
Implementation Pian, including a Ten Year Affordable Housing Compliance Plan,
for Project Area No. 1(Original and Added Territory), Project Area No. 2, Project
Area No. 3 and Project Area No. 4, contained herewith as Exhibit A; and
WHEREAS, California Health and Safety Code Section 33413(b)(2)(A)(v)
authorizes the Agency to aggregate new or substantially rehabilitated dwelling
units in one or more project areas if the Agency finds, based on substantial
evidence, after a public hearing, that the aggregation will not cause or
exacerbate raciai, ethnic or economic segregation; and
WHEREAS, the Agency held, on November 12, 2009, a noticed public
hearing regarding the Implementation Plan and regarding the aggregation of new
or substantially rehabilitated dwelling units in Project Area No. 1, As Amended,
Project Area No. 2, Project Area No. 3, and Project Area No. 4; and
RESOLUTION NO. 566
WHEREAS, substantial evidence has been presented to the Agency
which demonstrates that:
A. The 2009 population of the City of Palm Desert is 83.11 % White;
1.37% Black; 0.45% American Indian; 3.28% Asian; 0.11 % Pacific
Islander; 8.41 % some other race alone; 3.26% two or more races;
and 21.96% of the population is of Hispanic origin. The distribution
of racial and ethnic groups is further detailed by Project Area in the
attached Exhibit B, Table 1. The data provided in Exhibit B
demonstrates that the racial makeup of each Project Area, with the
exception of Project Area No. 2, is like that of the City itself.
However, it cannot be assumed that raciai, ethnic or economic
segregation has developed or will be exacerbated by the
aggregation of Project Areas. The 2009 population of Project Area
No. 2 is 90.41 % White; 1.36% Black; 0.17% American Indian;
2.82% Asian; 0.07% Pacific Islander; 3.23°/o some other race alone;
1.98% two or more races; and 8.62% of the population is of
Hispanic origin. As Project Area No. 2(along with Project Area No.
3 which is the smallest geographically and has limited residentiai
areas) has the smallest current population of any of the Project
Areas and the majority of developable land for housing of the
Project Areas, it can be inferred that as this Project Area is built out,
it will take on the demographic characteristics of the City much like
the other Project Areas which have already seen significant
development. Between 2004 and 2009, the population of Whites
in Project Area No. 2 decreased while the population of Blacks,
Asians and persons of some other race or races increased, which
is consistent with the changes in the overall City population
between 2004 and 2009.
B. The median family income and percentage of families living below
the median income for the City of Palm Desert is documented for
each Project Area and the City itself in the attached Exhibit B
Tables 2 and 3. This exhibit details the income characteristics for
both 2000 and 2009 populations. The percentage of families with
incomes below the City's median income decreased from 2000
through 2009 for the City as well as for each Project Area other than
Project Area No. 2. However, the increase for Project Area No.2
was only 0.4%. As Project Area No. 1(Original and Added
Territory), Project Area No. 3 and Project Area No. 4 are consistent
with the City in their median income levels and percentage of
population living below the City median income it is clear that the
aggregation of units has not and will not cause or exacerbate racial,
ethnic or economic segregation. Project Area No. 2 has yet to
benefit from substantial housing development and, in fact, has the
greatest amount of developable land of any Project Area. An
P6402/0001 /1182170v1 2
RESOLUTION NO. 566
estimated 2,401 units can be constructed in Project Area No. 2 from
July of 2009 through the end of the term of the Redevelopment Plan
for Project Area No. 2 in 2028. Many of these units will be reserved
for very low, low and moderate income families. As most housing is
to be developed in Project Area No. 2, the effect of such
development will be to more evenly distribute the concentration of
persons of all races, ethnicities and income levels.
C. Each Project Area is of a different size and shape, and each has its
own capacity for housing development. Presently, a majority of
developable land for residential units is available in Project Area No.
2 where approximately 2,401 units can be constructed. Project
Area No. 1(Original and Added Territory) is second with a potential
342 units. Project Area No. 3 follows with 554 potential units and
Project Area No. 4 has the potential for an additional 148 units. The
remaining units to be constructed in Project Area No. 1(Original
and Added Territory), Project Area No. 3 and Project Area No. 4 will
continue to mimic the racial, ethnic and in�ome characteristics of
the City and Project Areas. Project Area No. 2, which has a vast
amount of potential units, will experience the most significant
change in its racial, ethnic and economic structu��. However, this
change will not cause or exacerbate racial, ethnic, or economic
segregation, but will in fact lead to a more diverse area mimicking
that of Project Area No.1 (Original and Added Area), Project Area
No. 3, Project Area No. 4 and the City itself.
WHEREAS, the Agency seeks more flexibility to assist affordabie housing
units in various areas in the City of Palm Desert;
NOW, THEREFORE, the Palm Desert Redevelopment Agency does
hereby find, determine and resolve as follows:
Section 1. The Agency hereby adopts the Five-Year Implementation Plan,
including a Ten Year Affordable Housing Compliance Plan, for Project Area No. 1
(Original and Added Territory), Project Area No. 2, Project Area No. 3 and
Project Area No. 4, attached hereto as Exhibit A.
Section 2. Based on information and testimony presented to the Agency,
the Agency hereby finds, in accordance with California Health and Safety Code
Section 33413(b)(2)(A)(v), the aggregation of new or substantially rehabilitated
dwelling units in Project Area No. 1(Original and Added Territory), Project Area
No. 2, Project Area No. 3 and Project Area No. 4 will not cause or exacerbate
racial, ethnic or economic segregation.
P6402/0001 /1182170v1 3
RESOLUTION NO. 566
Adopted at the regular meeting of the Palm Desert Redevelopment Agency on
the 12th day of November 2009, by the following vote:
AYES: BENSON, FERGUSON, FINERTY, KELLY, and SPIEGEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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•�; • , • - •�S(• ,
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ATTEST:
RA HELLE D. K! ,qSSEN, CRETARY
PALM DESERT REDEVE�OPMENT AGENCY
P6402/0001/1182170v1 4
RESOLUTION NO. 566 EXHIBIT A
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FIVE-YEAR
IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT AGENCY
� 2009-10 THROUGH 2O13-14
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Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346 -0611
Adopted November 12, 2009
Resolution No. 566
CITY OF PALM DESERT
REDEVELOPMENT AGENCY BOARD
Robert A. Spiegel, Chairperson
Cindy Finerty, Vice Chairperson
Jean M. Benson, Agency Member
James Ferguson, Agency Member
Richard Kelly, Agency Member
REDEVELOPMENT AGENCY STAFF
John M. Wohlmuth, Executive Director
William Strausz of Richards Watson & Gershon, Agency Attorney
Justin McCarthy, Assistant City Manager/Redevelopment
Paul S. Gibson, Finance Director/Treasurer
Janet M. Moore, Director of Housing
Rachelle D. Klassen, City Clerk
Martin Alvarez, Redevelopment Manager
VeronicaTapia, RedevelopmentAccountant
Catherine Walker, Senior Management Analyst
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TABLE OFCONTENTS
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INTRODUCTION ........................................................................................................
BACKGROUND.........................................................................................................
2010-2014 IMPLEMENTATION GOALS & OBJECTIVES ........................................
PROJECT AREA NO. 1 ..................................................................................
PROJECT AREA NO. 1 MAP .........................................................................
PROJECT AREA NO. 1 ACCOMPLISHMENTS .............................................
PROJECT AREA NO. 1 PROPOSED REDEVELOPMENT PROGRAM ........
PROJECT AREA NO. 1 BUDGET ..................................................................
PROJECT AREA NO. 2 .............................................................................................
PROJECT AREA NO. 2 MAP .........................................................................
PROJECT AREA NO. 2 ACCOMPLISHMENTS .............................................
PROJECT AREA NO. 2 PROPOSED REDEVELOPMENT PROGRAM ........
PROJECT AREA NO. 2 BUDGET ..................................................................
PROJECT AREA NO. 3 .............................................................................................
PROJECT AREA NO. 3 MAP .........................................................................
PROJECT AREA NO. 3 ACCOMPLISHMENTS .............................................
PROJECT AREA NO. 3 PROPOSED REDEVELOPMENT PROGRAM ........
PROJECT AREA NO. 3 BUDGET ..................................................................
PROJECTAREA NO. 4 .............................................................................................
PROJECT AREA NO. 4 MAP .........................................................................
PROJECT AREA NO. 4 ACCOMPLISHMENTS .............................................
PROJECT AREA NO. 4 PROPOSED REDEVELOPMENT PROGRAM ........
PROJECT AREA NO. 4 BUDGET ..................................................................
ELIMINATION OF BLIGHT ........................................................................................
IMPLEMENTATION PLAN HOUSING REQUIREMENTS .........................................
ADMINISTRATION OF THE IMPLEMENTATION PLAN ...........................................
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INTRODUCTION
Redevelopment is an economic tool allowed under California State Law (specifically California
Health & Safety Code Section 33000 et seq, also known as Community Redevelopment Law
(the "Law" or "CRL")) which assists local governments in eliminating blight from a designated
area, commonly referred to as a project area. Blight consists of both physical and economic
conditions that contribute to a project area's deterioration. Redevelopment encourages new
development, reconstruction and rehabilitation, creates jobs and generates tax revenues by
helping develop partnerships between local governments and private entities. Redevelopment
can help a community implement a revitalization effort for particular areas such as downtowns,
neighborhoods or industrial areas. Furthermore, the CRL requires that no less than twenty
percent (20%) of tax increment revenue derived from a redevelopment project area be used to
increase, improve, and preserve the supply of housing for very low, low and moderate-income
households. Because redevelopment plans are created and adopted on a local level, they
respond to a community's unique needs and vision. Over 400 cities and counties in California
have adopted redevelopment plans with the goal of revitalizing their communities.
One of the major revenue sources that funds the Agency redevelopment and housing activities
is tax increment revenue. Tax increment revenue is property tax revenue generated from the
growth in a project area's total property value above the base year property value (determined
when the project area is adopted) which is allocated to a redevelopment agency to fund
redevelopment efforts. When development (or redevelopment) occurs on a property and/or a
property is sold, it results in an increase in the property's assessed value and in turn an
increase in property tax that is captured by a redevelopment agency as tax increment. Tax
increment is also generated from properties that are not sold or where no new development
occurs when their assessed value is increased by the annual application of the Proposition 13
annual inflationary increase (which is limited to two percent per year). Redevelopment
agencies are entitled to collect tax increment revenue to repay any debt involved in a specific
project or to reinvest the dollars in redevelopment activities within the project area. Of the total
tax increment revenue received by an agency, 20 percent of tax increment revenue must be
allocated to a housing fund specifically to finance increasing or improving housing affordable to
low to moderate income persons or households.
CRL Code Section 33490 requires that redevelopment agencies adopt a five-year
Implementation Plan ("Implementation Plan or Plan") demonstrating how the goals and
objectives, proposed programs and projects, and planned expenditures for their project areas
will lead to the elimination of blight and implement low and moderate-income housing
requirements.
This Plan is intended to provide an overview of the Agency's goals and activities to address
the alleviation of blight over the next five years. The Plan is not meant to detail a specific �
course of action or to restrict Agency activities to those projects identified within the plan since
market conditions, resources, and priorities change from time to time; rather, this Plan sets
forth Agency "policy" for each project area. This Plan is a"planning documenY' and does not
constitute approval of any specific project, program or expenditure; as such, the Agency may
amend this Plan as needed. This Plan must be updated at least once within the five-year
period with the purpose of evaluating the progress of the projects, programs, goals and
objectives towards the elimination of blight. When adopting five-year plans, agencies must
conduct a public hearing and hear testimony of interested parties. The purpose of the hearing
is to review the redevelopment plan and the corresponding Plan for each redevelopment
project area within the jurisdiction and evaluate the progress of the redevelopment projects
and programs.
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Adoption of this Implementation Plan does not approve any of the projects detailed herein.
Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency
Board. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not
constitute a"projecY' within the meaning of the California Environmental Quality Act (Public
Resources Code Section 21000 et seq.), and inclusion of any project or program in the
Implementation Plan shall not eliminate environmental analysis that would otherwise be
required.
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BACKGROUND
In December of 1994, the Agency adopted its first Five-Year Implementation Plan (FY 1994-
1999). The second Five-Year Implementation Plan was adopted in December of 1999 (FY
1999-2004). The third Five-Year Implementation Plan was adopted in November of 2004 (FY
2004-2009). All Five-Year Implementation Plans cover the four (4) adopted redevelopment
project areas that encompass an estimated 11,771 acres in the City's incorporated territory.
Additionally, pursuant to the requirements of the California Redevelopment Law ("Law"), the
Agency has held a mid-term public hearing on the progress of each Five-Year Implementation
Plan and has subsequently prepared a Progress Report for each plan.
This document is the fourth Five-Year Implmentation Plan for the Palm Desert Redevelopment
Agency ("Agency") of the City of Palm Desert ("City") for fiscal years 2009-10 thorugh 2013-14.
This is the Agency's fourth implementation plan prepared since the enactment of Assembly Bill
1290 which amended the Law by adding Section 33490. The Implementation Plan is divided
into two separate components: a non-housing or redevelopment component and a housing
component, which is presented as the Affordable Housing Compliance Plan attached to this
Implementation Plan as Appendix 1. Section 33490 requires that each redevelopment agency,
which has adopted a redevelopment plan prior to December 31, 1993, adopt, after a public
hearing, an implementation plan that contains the specific goals and objectives of the agency
for its project area(s). The implementation plan must identify the specific programs/projects
and expenditures proposed to be made during the five (5) year term of the implementation
plan; provide an explanation of how the goals and objectives, programs, and expenditures will
eliminate blight within the agency's project area(s)' and implement the housing requirements
contained in the Law. Pursuant to Section 33490, the implementation plans, where required,
were to be adopted no later than Decemeber 30,1994 with subsequent implementation plans
adopted every five (5) years thereafter.
The City Council of the City of Palm Desert took action in October of 1974 to establish the
Palm Desert Redevelopment Agency. With this action the City embarked on a comprehensive
effort to eliminate blighting and adverse conditions within the City. The focus of the City's
revitalizations efforts has been channeled through the adoption and implementation of its
Redvelopment Plans. The Agency is governed by a five-member board which consists of all
the members of the City Council. The Mayor who is appointed by the City Council acts as the
Chairperson for the Agency.
The Agency's first redevelopment project area, Project Area No. 1, was adopted in July of
1975 and subsequently amended in 1982 to add territory. Since then, the Agency has adopted
three (3) additional redevelopment project areas: Project area No. 2— established in 1987;
Project Area No. 3— established in 1991; and Project Area No. 4— established in 1993. The
Agency has accomplished numerous redevelopment, development, and infrastructure projects �
that have revitalized many properties within all of its Project Area. The Agency has also made
a substantial effort to improve and increase the City's supply of affordable housing. The four
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(4) adopted redevelopment project areas encompass an estimated 11,771 acres of the City's
incorporated territory. Locations of the Agency's Project Areas are illustrated in Figure 1.
The Redevelopment Plans have been amended from time to time to ensure compliance with
the Law. The most recent amendments eliminated the time limit to incur debt and extended the
life of the Project Areas and their term to collect tax increment by an additional year. Table 1
presents the time and financial limits of each Project Area's Redevelopment Plan.
Section 33490 of the Law requires that the Implementation Plan include the following
information:
• specific goals and objectives of the Agency for the Project Areas;
the specific programs, including potential projects, and estimated expenditures
proposed to be made during the next five years; and
• an explanation of how the goals and objectives, programs, and expenditures will
eliminate blight within the Proejct Areas and will improve, increase, and preserve the
supply of housing affordable to very low, low, and moderate income households.
C The Law also requires that the Implementation Plan address the Agency's affordable housing
production needs and achievements; these items are specifically addressed in the Affordable
Housing Comliance Plan, which is found at the end of this Implementation Plan as Appendix 1.
The Implementation Plan document conforms to the City of Palm Desert's General Plan and
has been prepared according to guidelines established in the programs and goals outlined in
the current Housing Element of the General Plan.
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Figure 1
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City olPalm Desert
��
Redevelopment Agenry
Project Areos
�, �CiryLimits
�aroleanreallo i-ong�naiiis72i
O Pro�e[I lvea No i-AaOetl Temtory � 19R2�
� Prqec�Afea No 2 (1987)
� Pro�ect Nea No 3 � i59 i)
� am�eC Mea rdo. a � t953)
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November, 2005 �
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5
The Redevelopment Plans for each of the Project Areas sets forth time and financial
limitations. Table 1 identifies the time and financial limits in each Project Area. It should be
noted that the Agency does not have eminent domain authority.
Redevelopment Plan Limitations Table 1
Plan Limits
�.ofAdoption �� � �
:tiveness of Plan"'
Incremenl Dollar Limit
Bonded Debt Limit
�iect wreas
o�ecc Rrea no. i rroJect nrea rvo. �-�, project Area
Original Area Added Territory �i No. 2
July 16, 1975 November 25. �98� July 15. 1987
July i6, 2016 Navember 25. 2022 July 15, 2028
$758,000,000
$500,000,000'
$200,000,OOOe
$800,000.000°
$1,534.916.881
(2009 atlJustetl for
CPI)
$� $��00�,��09
$28%.%96.9� 5
(2009 adjusted for
None'
iime Limit to Inwr Debt" I Eliminated
Project Area project Area No. 4 I
No. 3
July�7,1991 July�9,1993
July �7, 2032 July 19, 2034
$600,000,000-Gmss �
$360,000,000'
$200,000,000-Net6
$100,000,000 $135,000,0001°
Eliminated Eliminated I Eliminated
Eliminated
Time Limit on Receiving Tax i
Increment and Paying July 16, 2026 November 25, 2032 I July 15 2038 ' July 17,2042 July 19, 2044
� Indebtedness1z . . . . ,. _ _ . . _ . . _ __ ____ . __ ___ . .
' Pursuant to Assembty Bill 1290 all pre 1994 retlevelopment projects were required to adopt speafic time limrtat�on. On December 8, 1994 the Ciry
Council adopted Ordinances 765, 766, 767, and 768 establishing such limifs for the Pmject Areas No 1 2, 3 8 4, respectively.
' Pursuant to Senate Bill 1045 (S�atutes of 2003, Chapter 260), which was enactetl into law in 2003, the City Council adopted Ortlinances 1082. 1083,
1084, and �085 on December 9, 2004 �o ex�end ihe Redevelopmenl Plan effecliveness antl Ihe lime period to collect tax increment of each Project Area
No. 1, 2, 3 8 4, respectively, by one year.
' Per ihe Sixth Amendmenl ro ihe�Redevelopment Plan for the Atltletl Territory of Pmject Area No.i, which set a limit of $200 million to lhe Adtletl
Territory's bonded intlebtetlness antl $500 million ro the Added Terrirory's total tax increment, the Added Territory's tax increment limit is excWsive of
amoun�s paid to taxing agencies and exclusive of amounts paid tlirectly or indirec�ly by the Agency or any taxing entiry ro finance the acquisition of land,
consWction of buildings, facilities, stmc[ures or impmvements for such taxing agencies.
I' The rofal tax increment limit for Prqect Area No. 2 is $800 millioq adjusted annualty based upon t�e Consumer Price Index ("CPI"). This limi� is
expressed in 1987 dollars and is adjusted in accordance with Ihe changes in Ihe region's CPI . Expressed in current dollars, Ihe limit is $1.546,449418.
C
' Projecf Area No. 3 has a net tax incremen[ of limitation of $360 million. Net taz inaement is gross [ax increment less amoun[s Nat are passed �hmugh
to [axing agencies antl amounls se4asitle into ihe Agency's Low and Moderete Inwme Housing FunC.
° The total gross amount of tax incremen[ revenue that may be allocated to the Agenty from ProjeIX Area No. 4 cannot not exceetl $fi00 million.
Atltlitionally, the number of tax dollars, which may be dividetl antl allorated to the Agency, also may not exceed the amount of $200 million, net of the
funtls requiretl to be set-aside into the Agency Low and Moderate Income Housin9 Fund and payments ro[he Project Area's taning agencies pursuant to
cooperative agreements. Bo[h the $600 million gmss cap antl the $200 million net cap may not be changed excep[ by amentlment of the redevelopment
plan for the Pmject Area.
'At the [ime o/ the Atloption of the Original Area of Project No. 1 chere was no requiremen� for Ihe Redevelopment Plan to have a Band Deb� Limit. This
requirement hr oltler retlevelopmenl plans has not been changetl.
'B Per Ihe Sixih Amentlment to the Retlevelopment Plan for Project Area No.1 for the Atltletl Territory atlopletl on January 24, 1991, the Bontletl Debt Cap
is exclusive of bonds issued to finance �he acquisi�ion of land. constmction of buildings, facilities. simcNres or improvements for taxing agencies.
�s The Redevelopment Plan for l�e Project Area No. 2 sets a cap on total �ontletl intlebtetlness that may be oulstantling at any one time of $150 million.
�The Plan also provitles for the annual atljusiment of ihe bondetl indebtetlness cap, expressetl in 198'! tlollars, in accordance with lhe changes in the
��,region s CPI. Expressed in curren� dollars. �he cap is set at $289,959,266.
I10 The Retlevelopmen� Plan for the Projec[ Area No. 4 places a cap on total bontletl intlebtetlness, which may be outstantling at any one time at $135
�million. Such net limilalion is exclusive of (1) lhe amount of any bontleC intlebtetlness issuetl on behalf of or the proceeds of which are uutl tor Ihe
benefil of the taxing agencies to alleviate fnancial burden, or detnment made by the Agency pursuant to Section 512 of ihe Redevelopment Plan: and (2)
the amount of any bonded indebtedness payable from any monies deposited in ihe Agency's Low and Motlerete Income Housing Funtl.
° City Council adoptetl Ordinance No. 1035, 1036,1062, antl 1063 amentling Ihe Retlevelopment Plans tor Prolect Areas No. 1, 2, 3 8 4, respectively, to
eliminate Ihe lime limit ro incur debt, pursuant ro Senate Bill 211(Statues of 2001 Chapter 741), which was enacted in�o law in 2001.
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2010-2014 IMPLEMENTATION GOALS & OBJECTIVES
The following goals and objectives generally correspond to those included in the
Redevelopment Plans for all Project Areas. These goals formulate the overall strategy for this
Implementation Plan and will serve as a guide for the Agency's activities during the next five
years.
�Remove Blight. To eliminate and prevent the spread of blight and deterioration, and to
conserve, rehabilitate, and redevelop the Project Area in acwrdance with the Redevelopment
«EqH Plan and Annual Work Programs.
Encourage and Coordinate Stakeholder Participation and Investment. To encourage the
�cooperation and participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area. To encourage private sector investment
couAsow,re in the development and redevelopment of the Project Area. To coordinate revitalization efforts
in the Project Area with other public programs offered by the City and other public agencies.
�.. Diversify and Expand Economic Base and Employment Opportunities. To promote the
91 economic well being of the Project Area by encouraging the diversification and development of
WORK its economic base and employment opportunities.
Promote Responsible Development For Our Community. To encourage the development
Qof commercial and residential environments which positively relate to adjacent land uses, and
upgrade and stabilize existing uses. To expand the resource of developable land by making
underutilized land available for redevelopment. To provide for the revitalization and full
PRESEqVE development of the City's core commercial area, to attain consistent image and character, and
to enhance their economic viability.
Improve Community Facilities, Infrastructure, and Traffic Circulation. To provide needed
� improvements to the community's education, cultural and other community facilities to better
� serve the Project Area. To provide needed improvements to the utility infrastructure and public
facilities that service the Project Area. To improve traffic circulation through the reconstruction
a�cEss and improvement of existing streets in the Project Area. To provide for necessary public
parking to address parking deficiencies.
�Initiate Green Projects and Progrems. To move energy conservation / efficiency objectives
beyond discourse and demonstration projects to achieve significant quantifiable energy
GREEN reduction. To invest municipal resources in measurable sustainable programs.
QProvide and Improve Affordable Housing Opportunities. To improve housing and assist
low and moderate-income persons and families to obtain homeownership. To promote the
rehabilitation of existing housing stock where appropriate and promote development of quality, �
""E affordable housing.
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PROJECT AREA NO. 1
Figure 2— PROJECT AREA NO. 1 MAP
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City of Palm Desert ��
�, �._ QlyLimRs �
�ProleclNeallo.l-Ongit�alfl9]5� �
Redev¢lopment Agency 0 P�oieci nrea No i. nooed remtory I�4e2i nn��es
Project Areos November.2005
Project Area No. 1(the "Original Area") was established by the City Council with approval of
the adopting Ordinance on June 12, 1975. The Agency's Report to the City Council requesting
the proposed Redevelopment Plan for the Original Area indicated that the area had been
selected because of the existence of lots which were subject to being submerged by water;
lots of inadequate size for proper usefulness and development; inadequate streets; a problem
of traffic congestion; faulty interior arrangement of lots and buildings and exterior spacing;
inadequate parking facilities; and mixed character of development and shifting of land uses.
The Original Area encompasses approximately 420 parcels (580 acres) of retail and
office/commercial development along the City's primary commercial core along EI Paseo and
Highway 111. The Original Area is generally bounded by portions of Fred Waring and
Alessandro Drives to the north, EI Paseo and adjoining commercial properties to the south,
and the City limits to the east and west.
On November 25, 1981, the Redevelopment Plan for Project Area No. 1 was amended to add
approximately 10,814 parcels totaling 5,240 acres, thereby creating the "Added Territory". The
Added Territory is made up of a broad range of land uses, including single and multifamily
residential, country club, planned residential, and office/commercial development. The
Agency's Report to the City Council requesting the proposed amendment indicated that the
amendment was necessary to add territory because: (1) there existed commercial property
and residential units subject to being submerged, inundated, damaged or destroyed by flood
waters and accompanying debris; (2) there existed a lack of adequate flood control facilities
designed to protect property, and to ensure access along roadways which cannot be remedied
by private or governmental action without redevelopment; and (3) there existed an economic
dislocation throughout Project Area No. 1(Original and Added Territory), resulting from the
clear and present danger of flash flooding, and threats to the public health, safety and welfare
throughout the area. The boundaries of Project Area No. 1(Original and Added Territory), are
illustrated on the preceding page in Figure 2.
Since its inception, Project Area No. 1(as amended) has experienced a diversity of
development. The heart of the City's retail commercial development is located within its
boundaries. Additionally, residential development within the Project Area has been significant.
Specific projects include: One Quail Place, an affordable housing apartment project with 384-
units; Palm Lake Village, a 220-unit apartment project; Hacienda De Monterey, a 180-unit
congregate care facility; Big Horn, a 600-acre custom home residential development and 99-
bed nursing facility; and Canyon Cove, a 231-unit single-family development. Additionally, a
73-acre Civic Center project, which provides for recreation, law enforcement, and
governmental facilities, has been completed. Project Area No. 1(Original and Added Territory)
contains approximately 11,235 parcels totaling over 5,820 acres.
The primary objectives of the Redevelopment Plan for Project Area No. 1 include the
elimination of conditions of blight; the improvement of traffic circulation; the elimination of
drainage deficiencies; the rehabilitation or removal of substandard buildings; the stimulation of �
private investment; and the provision of needed public improvements and public facilities. The
Redevelopment Plan also provides for the expansion of recreation facilities, open space, and
other public improvements.
16
PROJECT AREA NO. 1 ACCOMPLISHMENTS
In the last five years, the Agency has completed many successful projects and programs in
Project Area No. 1. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 through FY2008-09 in Project
Area No. 1 is outlined in Table 2 on the following page.
Porto/a Bridge
C
� � �
r
3�':, '!� . . .
� —�
-�� .�(it�t
The purpose of this project was to
provide for City flood controi,
improved traffic conditions, and
improved access to the I-10
freeway. The project included the
construction of a four lane bridge
over the Whitewater Storm
Channel, installation of
landscaping to the adjacent areas,
and construction a sound
attenuation wall on the northern
side of Portola to mitigate noise for
adjacent residential communities.
Palm Desert Visitor's
Information Center
On one of the five parcels which
resulted from the Entrada del
Paseo Site, the Agency assisted in
funding the design and
development of the Palm Desert
Visitor's Information Center. The
Visitor's Center is a 8,200 sqf
facility that acts as the City's
primary public information center.
The center is utilized for resident
services, community programming,
and visitor information for Palm
Desert.
� Paseo Revitalization
�.n
� �-i ����•.e revitalization of the EI Paseo business
.� .�:�' corritlor is a phasetl project, with the
conceptual design complete.
10
The Agency assisted in funding
improvements to the Catalina
Community Room, which provides
varied assistance and organizes
events for residents of Agency-owned
affordable housing properties.
On one of the five parcels which
resulted from the redevelopment of the
Entrada del Paseo Site, the Agency
assisted in funding the design and
development of the Henderson
Community Building. The Community
Building houses the Chamber of
Commerce and has additional space
for various community-based activities.
17
Catalina Community Room
Henderson Community Building
Table 2 provides a detailed listing of the Agencys accomplishments in Project Area No. 1
between FY 2004-05 and FY 2008-09.
Agency Accomplishments in Project Area No.1
2004-05 through 2008-09
Project Name
Utility Undergrounding -
Silver Spur
Palm Desert Highlands UG
Assessment District
Project Description/Highlights
The Palm Desert Silver Spur Undergrounding replaced all
overhead wires with an underground electrical system
which accommodates various utilities. The Agency
contributed a portion of the project funding for the new
public infrastructure.
Facilitated conduit financing for residential component of
utility undergrounding.
The Agency acquired, renovated. and leased the building,
previousl utilized for child care and ed caT t th
Table 2
Completion '�, Total
Date Expenditure
January 2005 $3,367,602
January 2005 $0
Child Care Center Y u ioq o e November 2005 $949,194
Desert Sands Unified School District for the purpose of an
eady childhood education center.
On one of the five parcels which resulted from the Entrada
del Paseo Site, the Agency assisted in funding the design
Palm Desert Visitor's and development of the Palm Desert Visitor's Information
Information Center Center. The Visitors Center is a 8.200 sq.ft facility that January 2006 $4,324,896
acts as the City's primary public information center. The
center is utilized for resident services, community
programming, and visitor information for Palm Desert.
The Palm Desert Highlands Undergrounding replaced all
Utility Undergrountling - overhead wires with an undergrountl electrical system
Highlands which accommodates various utilities. The Agency June 2007 $3,534,958
contributed 50% of the project funding for the new public
infrastructure.
The Agency assisted in funding improvements to the
Catalina Community Room Catalina Community Room, which provides varietl
assistance and organizes events for residents of Agency-
owned affordable housing properties.
The Agency purchased easements to provide for public
parking, improving access to emironmental and cultural
Living Desert programming at the Living Desert Zoo and Gardens. The
public parking also provides access to recreational hiking
and biking trails.
August 2007
January 2008
$1,424,217
$1,250,000
�
11
18
�
�
Agency Accomplishments in Project Area No.1
2004-05 through 2008-09
Project Name
Bridge
to Pines East
del Paseo Site
Eric Johnson Gardens
Project Description/Highlights
Table 2
(Cont.)
Completion � Total
Date I Expenditure
The purpose of this project was to provide for City flood
conVol, improved traffic conditions, and improved access
to Ihe I-10 freeway. The project included the construction
of a four lane bridge over the Whitewater Storm Channel, May 2008 $6,600,000
installation of landscaping to the adjacent areas, and �
construction a sound attenuation wall on the northem side
of Portola to mitigate noise for adjacent residential
communities.
A portion of the City of Palm Desert's central business
district along HWY 111, from Palms to Pine, was
revitalized. The project included major improvements to January2009 $2,157,820
the public infrastmcture affecting traffic circulation and
parking tleficiencies.
_ _ _ _�. __—._. .
The project site is sfrategicalty located along the City's
main arterial, HWY 111, and lies adjacent to the City's
central business district, bounded by EI Paseo and Fred
Waring. The ill-configured site was successfully
redeveloped by dividing the parcel into five development �anuary 2009
pads, all of which were master planned to compliment and
enhance the existing businesses along the Hwy 111
business corridor. The patls provided for a public
information center, public open space, business
development, and a communiry building.
$4,999,075
On one of the fve parcels which resulted from the
redevelopment of the Entrada del Paseo Site, the Agency I
assisted in funding the design and development of the �anuary2009 � $3,679436
Eric Johnson Gardens. The gardens provide for public
open space, community recreational areas, and
preservation ot indigenous desert plant life.
This is a proposed development, which is under review by
both the City Council and Agency Board. The proposed
Aquatic Center Feasibility & public pool/recreational facility is a phased project The In Progress
Design Agency assistetl in funding the initial feasibiliry stutly and �
concept design which were completed for the purpose of I
facilitating a comprehensive project review.
12
$63,413
19
Agency Accomplishments in Project Area No.1
2004-05 through 2008-09
Table 2
(Cont.)
Completion Total
Project Name Project DescriptionlHighlights Date . Expenditure
On one of the five parcels which resWted from the
redevelopment of the Entrada del Paseo Site, the Agency
arson Community assisted in funding the design and development of the In Progress $5,668,813
�g Hentlerson Community Building. The Community Building
houses the Chamber of Commerce and has additional
space for various community-based activities.
Indian Springs
Alleyway -
Paseo Revitalization
Paseo Courtesy Carts
The Agency is participating in this project by funding the
installation of infrastructure to facilitate the implementation
of a sewer system in a low income residential
development.
The Alessandro Alleyway project has been scheduled to
be accomplished in phases, with Phase I Acquisitions
complete. The purpose of the project is to improve traffic
circulation, provide accessible public parking, and
reconfigure adjacent arterial access.
The revitalization of the EI Paseo business corridor is a
phased project, with the conceptual design complete.
The Agency initiated an economic development progrem
which provides free transit to the public within a shopping
corridor. The program also provides information regarding
public access to both commercial and retail centers
throughout the City of Palm Desert as well as Agency
projec[ activiry throughout the corridor.
In Progress $629.476
In Progress $1,934,863
In Progress $258,336
Oo-Going $897,485
April 2005
Desert Spnngs Market Place - Balance Paid m PA2 June 2007
Larkspur Property April 2007
Pueblos East January 2008
Mc Cormick December 2008
Adobe Villas
San Pascual � � -
Portola Prooerties �
The Agency acquired parcels of land to promote the
following activities�. promote compatible development.
improve surrounding wmmunity, revitalize tlilapidated
property, rehabilitate the City's central business
districtslcommercial corridodretail corridor, improve
resident access to services, and mitigate blighted
conditions throughout the City.
. Portola/Haystack
$4.876,412
$4.527,000
$737,553
$614,743
$'1.511208
$561.819
$849.014
$56,676,436
__ 20
13
PROJECT AREA N0.1PROPOSED REDEVELOPMENT PROGRAM
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 3 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, timing and the Redevelopment Plan goal
or goals that would be achieved'
�
l�
' Costs are subject to change, and completion of these projects may require future action by the Agency. zl
14
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25
PROJECT AREA NO. 1
Table 4 presents the Agency's five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 1 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected projecUprogram costs.
Due to the State's effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a$350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a$5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a$2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
.�
...
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severelv impact the Agency's ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment. �
�
�
19
26
The cash flow analysis indicates that the Agency will have a negative cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
Y
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
zo
z�
PROJECT AREA NO. 2
Figure 3— PROJECT AREA NO. 2 MAP
�
�
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zs
Palm Desert Redevelopment Agency
� ,� Project Area No. 2
The City Council approved the Ordinance adopting Project Area No. 2 on July 15, 1987.
Project Area No. 2 encompasses approximately 2,927 acres (6,195 parcels) of residential,
hotel and resort, office, and undeveloped uses. Project Area No. 2 is generally bounded by
the City limits and Interstate 10 to the north, a portion of the City limits to the east, Country
Club Drive and Hovely Lane to the south, and Portola and Monterey Avenues to the west. The
boundaries of Project Area No. 2 are illustrated on the preceding page in Figure 3.
The Agency's Report to the City Council requesting the proposed Redevelopment Plan
indicated that the area had been selected because of the existence of lots of inadequate size
for proper usefulness and development; inadequate traffic circulation; numerous obsolete and
dilapidated residential structures subject to mixed character and shifting of land uses; and
above ground voltage transmission lines which are not only unsightly, but because of high
winds in the area, a threat to public safety.
The primary objectives of the Redevelopment Plan for Project Area No. 2 revitalization include
the improvement of traffic circulation; the undergrounding of utilities; the elimination of
drainage deficiencies; the elimination of irregularly shaped and inadequate sized parcels of
land; and the rehabilitation or removal of substandard buildings. The Redevelopment Plan
also provides for the expansion of recreation facilities, open space, and other public
� improvements.
��
29
22
PROJECT AREA NO. 2 ACCOMPLISHMENTS
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 2. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 and FY2008-09 in Project Area
No. 2 is outlined in Table 5 on the following page.
CSUSB Hea/th Science Building
The Agency provided for Ihe implementation of
mfrastructure and commencement of construction for an
educational facility at the California State University San
Bernardino Campus.
�
Freedom Park Construction
The Agency provided funding assistance for the
construction of Freedom Park, a regional park, which
directly services two project areas by providing residents
with access [o open space and recreational facilities.
�
23
�
Table 5 provides a detailed listing of the Agency's accomplishments in Project Area No. 2
between FY2004-05 and FY2008-09.
F
\
�
Agency Accomplishments in Project Area No. 2
2004-05 through 2008-09
Project Name Project Description/Highlights
Table 5
Completion Total
Date Expenditure
The Sinatra Portola Undergrounding replaced all overheatl
Undergrounding- wires with an underground electrical system which �une 2005
a/Portola accommodates various utilities. The Agency contributed to
� the project funding for the new public infrastructure.
Landscape Improvemen[s
Via Scena Traffic Signal
Installation
29 Assessment
Bond Issuance
iN Park CFD Bond
The Agency funded landscape improvements to the entry
of the Desert Willow recreational facility in order to meet
new landscape Standards as implemented by City
ordinance.
The Agency provided funding for the installation of a new
traffic signal at the entry to a dilapidated commercial
center undergoing redevelopment by a private owner. 7he
implementation of the signal provided for easy access
from adjacent arterials and provided for access to public
parking
The Agency facilitated conduit financing for private
development of a 260 acre site known as Section 29. ��
The Agency facilitated conduit financing for development
of a 258 acre site known as Universitv Park.
$218,923
June 2006 $170,449
January 2007 $53,782
Apri12007 $0
May 2007 I $0
The Agency provided for the implementation of
3 Health Science infrastructure and commencement of construction for an May 2007
3 educational facility at the Califomia State University San �
Bernardino Campus.
The Agency assisted with improvements to the existing
WillowPump water pump stationslsystem at the Desert Willow public �une2007
ements recreation facility to improve energy eHiciency and water
conservation.
I The Agency provitled funtling assistance for the
�m Park Construction ' construction of Freedom Park, a regional park, which �uty 2007
directly services two prqect areas by providing residents
with access to open space and recreational facilities.
24
$4,500,000
$772,577
$2,592.812
31
Agency Accomplishments in Project Area No. 2
2004-05 through 2008-09
Project Name Project DescriptionlHighlights
Table 5
(Cont.)
Completion Total
Date Expenditure
The Agency acquired parcels of land m promote the
following activities: promote compatible developmenC
improve surrounding community, revitalize dilapidated
property, rehabilitate the City's central business
tlistricts/commercial corridor/retail corridor, improve
resident access to services, and mitigate blighted
conditions throughout the City.
36.5 Acres @ Portola Rd. and Gerald Ford Dr. October 2006
Desert Springs Marketplace June 2007
This is a proposed development, which is under review by
both the City Council and Agency Board. The proposed
Aquatic Center Feasibility & public pooUrecreational facility is a phasetl project The �n Progress
Design Agency assisted in funding the initial feasibility study and
concept design which were completed for the purpose of
facilitating a comprehensive project review.
This is a proposed development for a Fire Station in the
northem region of the City of Palm Desert. The Fire
North Sphere Fire Station Station would service the northem quadrant of the City
providing emergency antl fire assistance to residents. The
Agency provided funtling for the initial site plan and
preliminary due tliligence.
Monterey Ramp The Agency is assisting in funding improvements to
Modifications arterial access from both inbound and outbound directions
oflnterstate 10.
The Agency is obligated by the Coachella Valley Water
Desert Willow Well Site District to provitle for well-site development at the Desert
Construction Willow public recreational facility. 7he well-sites will
I accommodate the water usage of future developments in
_ the surrounding area.
IThe Agency is providing reimbursement for energy
efficiency impmvements made at the Desert Arc Facility.
Desert Arc is a local non-profit agency that provides
vocational training, job placement and employment,
Desert Arc Energy resitlential services, recreational and social opportunities,
Easement and independent living support for those who are
developmentally disabletl. The improvements will work to
retluce wrrent energy usage and promote energy
conservation in ortler ro reduce operating costs and
continue to provide assistance to clients.
Desert Willow Pad The Agency is providing periodic stabilization of open
Stabilization space located both within and on the perimeter of the
Desert Willow public recreation facility.
Total Expenditure
In Progress
In Progress
In Progress
$9,502,512
$4,876,412
$2,247
�
$29,464 ,�
$1,819,422
$105,828
In Progress $46,071
In Progress $302,574 !�
�ugh 2008-09: $24,993,073 '�II
a�
32
25
PROJECT AREA N0.2PROPOSED REDEVELOPMENT PROGRAM
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 6 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs and timing, and the Redevelopment Plan
goals that would be achievedZ.
�
�
� Costs are subject to change, and completion of these projects may require future action by the Agency. 33
26
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37
PROJECT AREA NO. 2
Table 7 presents the Agency's five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 2 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment received expected to be by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected projecUprogram costs.
Due to the State's effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a$350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a$5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a$2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severelv impact the Agency's ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
I�
31 38
The cash flow analysis indicates that the Agency will have a negative cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
implemented with alternative funding sources or as a replacement of canceled projects.
1
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
32
39
1
�
;�
33
40
�
PROJECT AREA NO. 3
Figure 4— PROJECT AREA NO. 3 MAP
Kif
41
Paim Desert Redevelopment Agency
�,. Project Area No. 3
The City Council approved the Ordinance adopting Project Area No. 3 on July 11, 1991.
Project Area No. 3 encompasses approximately 764 acres (668 parcels) of residential, office,
and industrial uses. Project Area No. 3 is generally bounded by Portola Avenue and Cook
Street to the west, the City boundaries and Carlotta Drive to the east, Hovely Lane and
Running Springs Drive to the north, and the Whitewater River Channel to the South. The
Portola Country Club is not a part of Project Area No. 3. The boundaries of Project Area No. 3
are illustrated on the preceding page in Figure 4.
The Agency's Report to the City Council requesting the proposed Redevelopment Plan
indicated that the area had been selected because of the presence of buildings and structures
suffering from age and physical obsolescence, deterioration, and dilapidation. Also cited were
conditions of defective design and characteristics of physical construction; faulty interior
arrangement and exterior spacing; inadequate provision of light, ventilation, sanitation, and
open space and recreation; and inadequate public improvements and community facilities.
The primary objectives of the Redevelopment Plan for Project Area No. 3 include the
elimination of conditions of blight; the improvement of traffic circulation; the elimination of
drainage deficiencies; the rehabilitation or removal of substandard buildings; the stimulation of
private investment; and the provision of needed public improvements and public facilities. The
Redevelopment Plan also provides for the expansion of recreation facilities and open space.
�
0
35
42
PROJECT AREA NO. 3 ACCOMPLISHMENTS
�
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 3. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 and FY2008-09 in Project Area
No. 3 is outlined in Table 8 on the following page.
� -
� �n "'� � r t �4 �.
� �'�.w�: _. . .
�... ., �..... ..�
� , ..,.E .:.::..;�
. . ... . .....uw
42nd Ave Sidewa/k Improvements
The Agency provided funding for public infrastructure and
sidewalk improvements directly benefiting the Hovley
Gardens, Falcon Crest and La Rocca Villas affordable
housing complexes. The improvements provide for
enhanced resident accessibility to transit, community
services, and schools.
KI:
43
Table 8 provides a detailed listing of the Agency's accomplishments in Project Area No. 3
between FY2004-05 and FY2008-09.
Agency Accomplishments in Project Area No. 3
2004-05 through 2008-09
Table 8
Completion Total
Project Name Project Description/Highlights Date Expenditure
42nd Ave Sidewalk
Improvemenis
Public Facility Improvements
Perimeter Landscaping
Merle Sewer & Street
Improvements
Cook Street Widening
The Agency provided funding for public infras�ructure and
sidewalk improvemenis directly benefting the Hovley
Gardens. Falcon Crest and La Rocca Villas affordable December 2004
housing complexes. The improvements provide for �.
enhanced resident accessibility to transit, community ��
services, and schools. '
The Agency provided for in(rastructure development
including the mass grading of a public facility immediately �une 2005
adjacent to the Hovley Gardens, Falcon Crest and La
Rocca Villas affordable housing complexes.
The Agency assisted in funding the implementation of
landscaping in public righis-of-way in accordance with the
City's landscape ordinance.
The Agency provided funding assistance for neighborhood
improvements and the implementation of public sewers
and intrastructure along Merle Street.
The Agency participated in funding infrastmcture and
traffic improvements which will enhance traffic circulation
on a one of ihe City's major arterial roads.
June 2005
June 2005
In Progress
Expenditure 2004A5 through 2008-09:
$177,405
$53,523
$16204 �
$845,047
$290,828
�
37
44
PROJECT AREA N0.3PROPOSED REDEVELOPMENT PROGRAM
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 9 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, and the Redevelopment Plan goals that
would be achieved3.
�
�
3 Costs are subject to change, and wmpletion of these projects may require future action by the Agency. 45
38
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47
PROJECT AREA NO. 3
Table 10 presents the Agency's five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 3 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected projecUprogram costs.
Due to the State's effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a$350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a$5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a$2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
..r
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severelv impact the Agency's ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment. 8
The cash flow analysis indicates that Agency will have a positive cash flow during the Planning
Period and there is sufficient revenue to support all proposed projects and programs.
41
48
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
1
42
49
PROJECT AREA NO. 4
Figure 5— PROJECT AREA NO. 4 MAP
..
�
�
43
so
Palm Desert Redevelopment Agency
Project Area No. 4
The City Council and the Riverside County Board of Supervisors approved the Ordinances
adopting Project Area No. 4 in July of 1993. Project Area No. 4 encompasses 2,260 acres of
predominantly low-density residential land use with small areas of commercial (10 acres) and
public uses. At the time of adoption only 637 acres of this area was located within the City of
Palm Desert. The remaining portion of the Project Area was located in an adjacent area of the
unincorporated territory of the County of Riverside, which the City of Palm Desert later
annexed. The boundaries of Project Area No. 4 are illustrated on the preceding page in Figure
5.
Project Area No. 4 generally includes the territory bounded on the west by EI Dorado Drive
running southward to the City of Indian Wells boundary line, then eastward to the boundary
point between the then County territory and the City of Indian Wells. The western boundary
follows this boundary line southward to Fred Waring Drive. Fred Waring Drive is the southern
boundary with Washington Street being the eastern limit. Country Club Drive is the northern
boundary running from Washington Street westward to EI Dorado Drive.
Project Area No. 4 was characterized in the Agency's 1993 Report to the City Council as
containing a variety of conditions, which adversely impacted the economic viability, as well as
the health and safety of persons and properties located within Project Area No. 4. In some of
the unincorporated portions of Project Area No. 4 development occurred in a seemingly
unrestricted and unplanned manner. Streets were, and are still, unpaved and residential
dwellings have been developed without regard to standard design and setback requirements.
Further, Project Area No. 4 was characterized by blighting conditions such as the lack of
and/or inadequate public infrastructure improvements, including a poorly designed circulation
system; aging and deteriorating housing; and inadequate public, cultural, and recreational
facilities.
The primary objectives of the Redevelopment Plan for Project Area No. 4 include the
improvement of the traffic circulation system and freeway access; the elimination of drainage
deficiencies; the provision of needed community facilities; the rehabilitation or removal of
substandard buildings; and the rehabilitation of the existing housing stock where needed.
'
51
CLf
PROJECT AREA NO. 4 ACCOMPLISHMENTS
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 4. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-OS and FY2008-09 in Project Area
No. 4 is outlined in Table 11 on the following page.
Fred Waring Widening / Sound Wall
The project widened a major easUwest arterial to six lanes to
facilitate ease of movement throughout the City, improve traffic
flow, and access to City businesses and schools. As a result
of the widening, a sound wall has been constructed along the
arterial to mitigate noise along the adjacent residential areas.
Freedom Park
Provided assistance for the construction of a 40-acre public
park centrally located, allowing for ease of use by both Palm
Desert residents and adjacent schools. The park provides for
local league and recreational play, and is accessible by all
valley residents.
UCR- Richard J. Heckmann /nternational Center for
Entrepreneuria/ Management
The Agency provided a loan to the University of California at
Riverside for the purpose of constructing street and
infrastructure improvements at its Palm Desert Campus. The
Agency also provided the land to facilitate the construction of
a graduate studies building for entrepreneurial management,
which is part of the University of California at Riverside's �
Graduate Studies Center.
�
45
52
Table 11 provides a detailed listing of the Agency's accomplishments in Project Area No. 4
between FY2004-OS and FY2008-09.
Agency Accomplishments in Project Area No. 4
2004-05through 2008-09
Project Name Project DescriptionlHighlights
UCR- Richard J. Heckmann
Intemafional Center for
Enirepreneurial
Management
Warner Trail Storm Drain
�, Property Acquisition-Casey's
Palm Desert Country Club
The Agency provided a loan to the University of California
at Riverside for the purpose of constructing street and
infrastrucNre improvements at its Palm Desert Campus.
The Agency also provided the land to facilitate ihe
consiruction of a graduate studies building for
entrepreneurial management, which is part of the
University of California at Riverside's Graduate Studies
Cenfer.
The Agency provided funds for the implementation of
puhlic infrastructure to accommodate storm water mn-off
and prevent flooding of commercial and residential areas.
Table 11
Completion Total
Date Expenditure
November $2,000,000
2004
June 2005 $2,989,570
The Agency acquired the site currently known as Casey's
Restaurant in order to assist in the rehabilitation of a September
dilapidatedlblighted structure. The rehabilitation projecf p005 $�,040,114
will be phased and both fapade and strucWral
improvements will be implemented.
Provitled assistance to allow for additional units in order to �une 2006 I $0
accommodate private development.
Provitled assisfance for the construction of a 40-acre
public park cenirally located, allowing for ease of use by
Park both Palm Desert residenis and adjacent schools. The Apri12008
park provides for bcal league and recreational play, and is
accessible by all valley residents.
$8,022,216
The project widened a major easUwest arterial to six lanes
'� b facilitate ease o( movement throughou� the City,
Waring improve traffm flow, and access to City businesses and �une 2009 $5.000,000
ning/Sound Wall schools. As a result ot the widening, a sound wall has
been consiructed along fhe arterial to mitigate noise along
the adjacent resitlential areas.
'
�y
53
Agency Accomplishments in Project Area No. 4
2004-05 through 2008-09
Table 11
(cont.)
Project Name Project DescriptionlHighlights Completion Total
Date Expenditure
In Progress $620,000
The Palm Desert Country Club Undergrounding is a
proposed project and will be phasetl once feasibility is
determined. If approved, a plan will be implemented to
Utility Undergrounding-Palm replace all overhead wires and provide an underground
Desert Couniry Club electrical system which accommodates various utilities.
Agency funds have been expended on due diligence to
determine project feasibiliry. This proposed project
requires property owner approval in order to be
implemented.
7otal Expenditure 2004-OS through 2008-09: $79,671,899
'
�
47
54
PROJECT AREA N0.4 PROPOSED REDEVELOPMENT PROGRAM
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 12 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, and the Redevelopment Plan goals that
would be achieved°.
�
��
" Costs are subject to change, and completion of these projects may require future action by the Agency 55
48
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57
PROJECT AREA NO. 4
Table 13 presents the Agency's five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 4 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected projecUprogram costs.
Due to the State's effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a$350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a$5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a$2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the neut five year
period.
�
�,
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumsta�ces as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severelv impact the Agency's ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment. �
�.e
51
58
The cash flow analysis indicates that the Agency will have a positive cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
implemented with alternative funding sources or as a replacement of canceled projects.
,
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
52
59
ELIMINATION OF BLIGHT
The Agency's proposed projects and programs detailed previously in this Plan are intended to
eliminate blight in the Project Areas as defined by Section 33030 and 33031 of the CRL. The
blighting conditions addressed by the proposed projects and programs include: inadequate
public improvements and/or utilities, depreciated or stagnant property values, conditions
preventing the viable use of a building or lot, impaired development due to irregular shaped
lots, unsafe and unhealthy buildings, high vacancy and low lease rates, and crime. The
following provides a more in depth discussion of how the proposed projects and programs
eliminate the blighting conditions indentified in Tables 3, 6, 9, and 12.
The Agency is proposing to undertake multiple projects and programs that will improve the
aforementioned blighting conditions (within the Project Areas). These projects and programs
include activities such as landscape, streetscape, traffic circulation, sidewalk, sewer system,
pedestrian access, and public facilities infrastructure improvements. With the help of
acquisition and construction projects, the Agency will create open space opportunities and
assist in the development of parks and open spaces. Additionally, providing needed public
improvements, public facilities and infrastructure will help correct problems and improve the
health, safety, and welfare of community residents and workers due to improved pedestrian
and vehicular traffic circulation and access. Transportation improvements can have a direct
impact on property values. Another benefit of the installation of the identified public
improvements is the potential for job creation within the community. Crime as a blighting
condition that can be addressed and alleviated through investments in public recreational
facilities. Studies have documented a direct correlation between providing recreational
facilities and a decrease in criminal activity. The Agency is also proposing projects and
programs that will eliminate unsafe and unhealthy buildings by providing needed rehabilitation
to ensure public safety. Acquisition and consolidation of vacant or underutilized properties will
help eliminate blight from properties that have conditions that hinder their viable use or are
irregularly shaped. By successfully implementing the projects and programs detailed in this
Plan the Agency will help eliminate blighting conditions in the Project Area and spur economic
development.
�
53
G�i
IMPLEMENTATION PLAN HOUSING REQUIREMENTS
.
`_J
Pursuant to Law Section 33490(a)(1)(A), the Implementation Plan should contain a list of
programs and projects proposed over the next five years. This provision includes both the
Agency's non-housing and housing project programs. The Agency's housing
accomplishments over the past five years and the proposed projects and programs anticipated
by the Agency within the Project Areas are located in the Affordable Housing Compliance Plan.
54
61
ADMINISTRATION OF THE IMPLEMENTATION PLAN
As detailed in the introduction of this Plan, the Agency is required to produce an
Implementation Plan every five years. After adoption of the first implementation plan, a new
plan is to be adopted every five years either in conjunction with the housing element cycle or
the implementation plan cycle.
Implementation Plan Adoption Process
Each Implementation Plan must be presented and adopted at a duly notice public hearing of
the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of
the Law. The Notice must be published pursuant to Section 6063 of the Government Code,
mailed at least three weeks in advance to all persons and agencies that have requested
notice, and posted in at least four permanent places within the Project Area for a period of
three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior
to the date set for hearing.
The Agency may amend the implementation plan at any time after conducting a public hearing
on the proposed amendment.
Mid-Term Implementation Plan Review Process
At least once within the five-year term of this Implementation Plan, the Agency must conduct a
public hearing and hear testimony of all interested parties for the purpose of reviewing the
redevelopment plan and the corresponding implementation for each redevelopment project.
This hearing must take place no earlier than two years and no later than three years after the
adoption of the Implementation Plan and Affordable Housing Compliance Plan.
�
55
62
RESOLUTION NO. 566 EXHIBIT A
L�
APPENDIX 1
AFFORDABLE HOUSING COMPLIANCE PLAN UPDATE
PALM DESERT REDEVELOPMENTAGENCY
FY2004-05 THROUGH FY2013-14
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j 2009 UPDATE
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Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346 -0611
Adopted November 12, 2009
Resolution No. 566
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City of Palm Desert
REDEVELOPMENT AGENCY BOARD
Robert A. Spiegel, Chairperson
Cindy Finerty, Vice Chairperson
Jean M. Benson, Agency Member
James Ferguson, Agency Member
Richard Kelly, Agency Member
REDEVELOPMENT AGENCY STAFF
John M. Wohlmuth, Executive Director
William Strausz of Richards Watson & Gershon, Agency Attorney
Justin McCarthy, Assistant City Manager/Redevelopment
Paul S. Gibson, Finance Director/Treasurer
Janet M. Moore, Director of Housing
Martin Alvarez, Redevelopment Manager
Rachelle D. Klassen, City Clerk
VeronicaTapia, RedevelopmentAccountant
Catherine Walker, Senior Management Analyst
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TABLE OF CONTENTS
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APPENDIX1 ..............................................................................................................................1
AFFORDABLE HOUSING COMPLIANCE PLAN UPDATE ......................................................1
PALM DESERT REDEVELOPMENT AGENCY ........................................................................1
FY2004-OS THROUGH FY2013-14 ............................................................................................1
2009 UPDATE ............................................................................................................................1
EXECUTIVE SUMMARY ............................................................................................................1
COMMUNITY REDEVELOPMENT LAW AND AFFORDABLE HOUSING COMPLIANCE...1
HousingFunds ..........................................................................
Housing Production Required Under the CRL ........................
Terms of Affordability for Assisted Housing ..........................
Replacement Housing Requirements ......................................
HOUSING STIPULATION ...........................................................
OVERALL EFFORTS TO MEET HOUSING NEEDS ..................
INTRODUCTION ............................................................................
Background...............................................................................
LEGAL REQUIREMENTS ..............................................................
HOUSING PROGRAM GOALS 8 OBJECTIVES ..........................
HOUSING ACCOMPLISHMENTS .................................................
HOUSING COMPLIANCE PLAN CATEGORIES ..........................
HOUSING COMPLIANCE PLAN CATEGORIES ..........................
2010-2014 HOUSING GOALS & OBJECTIVES ............................
HOUSING PROJECTS AND PROGRAMS ....................................
HOUSING PRODUCTION ..............................................................
Inclusionary Housing Production Requirements ...................
Time Requirements for Affordability Restrictions ..................
Inclusionary Unit Need Estimation ..........................................
Aggregation of Affordable Units Among All Project Areas ...
Status of Agency's Inclusionary Housing Production...........
Inventory of Inclusionary Units ................................................
REPLACEMENT HOUSING ...........................................................
HOUSINGFUND ............................................................................
EXPENDITURES BY HOUSEHOLD TYPES .................................
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES ...............
ADMINISTRATION OF THE IMPLEMENTATION PLAN ...............
EXHIBITA ......................................................................................
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EXECUTIVE SUMMARY
This document is the Housing Compliance Plan ("Compliance Plan") for the Palm Desert
Redevelopment Agency ("Agency"). It serves as a blueprint for current and future Agency
activities in the Agency's efforts to meet its low and moderate income housing responsibilities.
The Compliance Plan has been prepared in conjunction with the Agency's 2009 Five Year
Implementation Plan to meet the req�irements of California Community Redevelopment Law
(the "CRL") Section 33490. This Compliance Plan amends the Affordable Housing Compliance
Objectives adopted on November 18, 2004 and presents an updated affordable housing plan
through the duration of the Compliance Period defined below. This Compliance Plan covers
the Agency's four redevelopment project areas; Project Area No. 1(Original and Added
Territory), Project Area No. 2, Project Area No. 3 and Project Area No. 4(the "Project Areas").
The Compliance Plan incorporates an update of the Agency's affordable programs and
housing production activities since 2004, and presents an affordable housing production plan
for housing projects over the remainder of the ten-year compliance period beginning in fiscal
year ("FY") 2004-05 and extending through FY2013-14 ("Compliance Period"). It also presents
a reconciliation of the Agency's replacement housing obligations and provides a forecast of the
number of housing units that are or will be needed to be reserved and affordable to very low,
low and moderate income persons or families over the second five year period (FY2009-10
through 2013-14) of the required ten year period, the next ten year period (FY2014-15 through
2018-19) and until the termination of the Redevelopment Plans.
This Compliance Plan document conforms to the City of Palm Desert's ("City") General Plan
and has been prepared according to guidelines established in the programs and goals outlined
in the current Housing Element of the General Plan of the City. This Compliance Plan is
focused on meeting or exceeding the inclusionary housing unit production requirements of the
CRL. This document is not required by the CRL to address satisfaction of the Agency's
Stipulation regarding affordable housing or the City's Regional Housing Needs Allocation
("RHNA") new construction figures.
COMMUNITY REDEVELOPMENT LAW AND AFFORDABLE HOUSING COMPLIANCE
Article 16.5 of the CRL requires all redevelopment agencies to prepare and adopt affordable
housing compliance plans on a ten year cycle, with updates corresponding with adoption of
their five year implementation plans. The housing compliance plan must identify how a
redevelopment agency will achieve the affordable housing production requirements for each of
its redevelopment project areas. The compliance plan must be consistent with the
jurisdiction's housing element and must also be reviewed and, if necessary, amended at least
every five years in conjunction with the cyclical preparation of the housing element or the
agency's five year implementation plan.
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Housing Funds
The CRL provides redevelopment agencies with a finance mechanism (tax increment housing
set-aside revenues) to fund required affordable housing units. It also defines the type of
projects, programs and activities that may be funded with tax increment housing set-aside
revenues. The CRL requires the mandatory set aside of a least 20% of the tax increment
revenue ("set-aside revenue") received by an agency from its redevelopment project areas into
a special fund for housing ("Housing Fund"). Housing Funds are required by the CRL to be
utilized to increase, preserve, and improve the community's supply of affordable housing.
Housing assisted with set-aside revenue must be made available to qualified or targeted
income groups at affordable housing costs pursuant to CRL.' The Agency pursuant to findings
made at the time of the adoption of the Project Areas has the authority to expend Housing
Fund dollars either inside or outside the Project Areas and aggregate its housing production
activities among all four Project Areas. The Agency with the adoption of its 1999 and 2004
Housing Compliance Plan has taken action to aggregate its new and substantially rehabilitated
units among all Project Areas to more effectively meet housing program objectives.2 The
Agency will consider similar action at the Public Hearing scheduled to consider the adoption of
the 2009 Implementation and Housing Compliance Plan. It is anticipated that based upon the
evidence provided, the Agency will find that the aggregation of its affordable housing
obligations between its Project Areas, will not cause or exacerbate racial, ethnic, or economic
� segregation.
Housing Production Required Under the CRL
The Agency is obligated under Section 33413(b)(1) of the CRL to ensure that over the life of all
redevelopment plans 30% of all redevelopment agency developed or substantially rehabilitated
units are made available at affordable housing costs to, and occupied by persons and families
of low or moderate income ("targeted income groups"), at least 50% of which must be available
at affordable housing cost to, and occupied by, very low income households.' Additionally,
' The CRL defines and limits income categories as follows: Very Low Income - persons or households whose
gross income does not exceed 50% of the area's median income; Low Income - persons or households whose
gross income are greater than 50% but do not exceed 80% of the area's median income�, Moderate-Income —
persons or households whose gross income are greater than 80% but do not exceed 120°/a of the area's median
income.
2 Section 33413(b)(2)(A)(ii) of the CRL provides that the Agency's obligations under Section 33413 may be met by
providing affordable housing outside the project areas on a two-for-one basis. During the adoption process for
each of the Project Areas, the Agency adopted appropriate resolutions that allow the Agency to expend its twenty
percent (20%) housing set-aside money outside of each respective Project Area. Section 33413 (b)(2)(A)(v) of the
CRL provides that redevelopment agencies may "aggregate new or substantially rehabilitated dwelling units in
one or more project areas if the agency finds, based upon substantial evidence, after a public hearing, that the
� aggregation will not cause or exacerbate racial, ethnic, or economic segregation."
' Section 50052.5 of Health and Safety Code defines affordable housing cost, as adjusted for family size, as:-Very
Low — Not more than 30°/o of 50% of the County median household income. -Low — Not more than 30% of 70%
(or 60% for rental projects) of the County median household income.-Moderate — Not more than 35% of 110% (or
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Section 33413(b)(2) provides that 15% of all redevelopment agency developed or substantially
rehabilitated units are made available at affordable housing costs to, and occupied by persons
and families of low or moderate income, at least 40% of which must be available at affordable
housing cost to, and occupied by, very low income households.
The Agency's inclusionary housing unit need was initially established by a detailed review of
housing units built or substantially rehabilitated in the Project Areas from adoption through
June of 1994. Additionally projections of units to be built or substantially rehabilitated from July
of 1994 through June of 2004 were developed and provided in the first Compliance Plan
adopted by the Agency in December of 1994. Since 1994, the 1999 and 2004 Compliance
Plans have reassessed and updated both the number of units constructed or substantially
rehabilitated as well as those anticipated to be developed over the various five, ten year and
remaining life of each of the Project Areas to establish and update the Agency's inclusionary
housing production unit need.
This Compliance Plan has updated the inclusionary unit need assessment for the Project
Areas, establishing that as of the end of the prior five year period (June of 2009) a total of
8,826 units had been constructed within the Project Areas, since adoption, creating an
affordable housing unit obligation of 1,390 units. The Agency has made an exemplary effort to
meet its housing obligations under the CRL. To date the Agency has provided, by reserving
existing units or developing or assisting new units, a total of 1,707 affordable units of which
1,580 have been credited to meet the Agency's inclusionary housing need. The Agency has
planned future projects and programs that should result in development or reservation of 200
affordable units over the next five years. The Agency's efforts to produce affordable housing
since the inception of its housing program in conjunction with its planned housing projects and
programs for the �ext five year period is expected to result in a surplus of 272 affordable units
at the end of this ten year period. The CRL allows the Agency to carry these units over to the
next five year and ten year periods.
Terms of Affordability for Assisted Housing
In addition to providing the affordable units to targeted income groups, affordable units
developed or assisted with the Agency's Housing Funds must carry covenants to ensure
affordability and availability. Pursuant to the CRL, units created after 2001 must carry 45-year
affordability covenants for ownership units and 55-years for rental units. Units may be
constructed inside or outside the Project Areas, but units provided outside a project area count
on a 2-for-1 basis (for the purpose of ineeting the Agency's inclusionary housing unit need).
The Agency may also purchase 55-year affordability covenants on existing multifamily rental
units. Additionally, the Agency may aggregate housing units between all four Project Areas to
satisfy affordable housing requirements.
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30% of 110% for rental projects) of the County median household income. Affordability amounts under the
Stipulation for Very Low Income are 25°/o of 50%.
Replacement Housing Requirements
The CRL requires that whenever housing occupied by low and moderate income persons or
households are destroyed or removed from the low and moderate income housing market as
part of a redevelopment agency project that is subject to a written agreement with the agency
or where financial assistance has been provided by the agency; the redevelopment agency is
responsible for providing replacement units. Replacement units must provide at least the
same number of bedrooms destroyed, and 100% of the replacement units must be affordable
to the same income categories as those removed. Replacement units may be provided at full
credit anywhere within the community.
The Agency has funded and developed a number of projects over the years that have resulted
in the need for replacement housing units. The Agency has followed CRL by assessing the
need and providing and implementing a"Replacement Housing Plan" to provide the required
units in a timely fashion. This Compliance Plan details the Agency's activities to meet its
housing replacement needs.
HOUSING STIPU�ATION
On May 15, 1991, the Superior Court of the State of California for Riverside County entered a
Final Judgment in certain legal actions between the Western Center on Law and Poverty, Inc,
the California Rural Legal Assistance, Jonathan Lehrer-Graiwer and the City and
Redevelopment Agency of Palm Desert (the "Parties"). The Judgment incorporated terms of a
Stipulation for Entry of Judgment in Case No. Indio 51143, entitled City of Palm Springs v. All
Persons Interested on May 15, 1991 and the subsequent 1997 and 2002 Stipulation
Amendments to the 1991 Stipulation for Entry of Judgment (the "Stipulation"). The Stipulation
and subsequent amendments impose certain ongoing obligations on the Agency with respect
to affordable housing within the City. It also provides that the Court continue to have
jurisdiction over the matters covered in the Stipulation for the purposes of enforcement of the
Stipulation.
The Stipulation requires that the Agency develop, rehabilitate or acquire or cause to be
developed, rehabilitated, or acquired, within the City, affordable housing units in specific
amounts during specified periods. The Agency needed to produce 1,205 affordable units by
2006 per the Stipulation. The Agency has produced the required 1,205 units. The Agency will
continue its efforts to meet the requirements of the Stipulation.
OVERALL EFFORTS TO MEET HOUSING NEEDS
The City and the Agency have worked successfully together in meeting the various housing
requirements provided for under the CRL, the Stipulation and the City's current Housing
� Element. Since the adoption of the first Housing Plan in 1993 (the "1993 Housing Plan"), the
Agency with the assistance of the City's Housing Authority has actively pursued projects,
programs, and activities that meet the Agency's needs and housing goals. The projects,
programs and activities identified in this Compliance Plan have been designed to significantly
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increase the number of affordable housing units within the Community and to improve and
upgrade the Community's housing stock and improve the overall quality of life of residents of
Palm Desert.
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INTRODUCTION
This document amends the Agency's ten year 2004 Housing Compliance Plan ("Compliance
Plan") for the Palm Desert Redevelopment Agency adopted in November of 2004. In
compliance with Section 33490 of the CRL this document serves as the Housing Component
for the Agency's Five-Year (2009-10 through 2013-14) Implementation Plan. The Compliance
Plan incorporates an update of the Agency's affordable programs and housing production
activities since 2004, and presents an affordable housing production plan for housing projects
over the remainder of the ten-year compliance period. It also presents a reconciliation of the
Agency's replacement housing obligations and provides a forecast of the number of housing
units that are or will be needed to be reserved and affordable to low and moderate income
persons or families over the second five year period (2009-10 through 2013-14) of the required
ten year period covered by this Compliance Plan (fiscal years 2004-05 through 2013-14). It
also projects future affordable housing needs for the next ten year period (2014-15 through
2023-24) and until the termination of the Redevelopment Plans.
This Compliance Plan collectively covers all of the Agency's Redevelopment Project Areas:
• Project Area No. 1(Original and Added Territory)
• Project Area No. 2
• Project Area No. 3
• Project Area No. 4
This Compliance Plan specifically reviews the need for affordable housing within the
community as it relates to the Agency's obligations under the CRL. It also acknowledges that
the Agency has additional obligations for affordable housing agreed to under the Stipulation.
This Compliance Plan was adopted along with the Implementation Plan by the Agency
following a duly noticed public hearing held November 12, 2009.
Background
The City Council of the City of Palm Desert ("City") took action in October of 1974 to establish
the Palm Desert Redevelopment Agency by adopting Ordinance No. 53. With this action the
City embarked on a comprehensive effort to eliminate blighting and adverse conditions within
the City. The focus of the City's revitalization efforts has been channeled through the adoption
and implementation of its Redevelopment Plans.
The Agency's first redevelopment project area, Project Area No. 1, was adopted in July of
1975 and subsequently amended in 1982 to add territory. Since then, the Agency has adopted
F three (3) additional redevelopment project areas; Project Area No. 2— established in 1987;
� Project Area No. 3— established in 1991; and Project Area No. 4— established in 1993.The
Agency has accomplished numerous redevelopment, development and infrastructure projects
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that have revitalized many properties within all of its Project Areas. The Agency has also
made a substantial effort to improve and increase the City's supply of affordable housing. The
Agency has four (4) adopted redevelopment project areas encompassing an estimated 11,771
acres of the City's incorporated territory. The Agency is governed by a five-member board
which consists of all the members of the City Council. The Mayor who is appointed by the City
Council acts as the Chairperson for the Agency.
The Redevelopment Plans have been amended from time to time to ensure compliance with
the CRL. Most recent amendments eliminated the time limit to incur debt and extended the life
of the Project Areas and their term to collect tax increment by an additional year. It should be
noted that the Agency does not have eminent domain authority. The following table
summarizes the financial and time limitation of each of the Project Areas' Redevelopment
Plans.
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Redevelopment Plan Limitations
of Atloption �
tiveness of Plan' s �
Increment Dollar Limit
Bonded Debt Limit
Original Area
July i6. 1975
July 16. 2�i6
$758,000,000
None'
Added Territory
November25.�98�
November25.2022
$500,000,000'
$200,000.00Oa
Table 1
roject Areas
Project Area Project Area project Area No. 4�I
No.2 '�� No.3 ���
Juty 15. 1987 July 17. 1991 July 19. 1993
July 15. 2028 July 1Z 2032 July 19. 2034
$800,000,000° $600,000,000-Gmss -
$1,534,916,881 $360,000,000'
(2009atljusletlfor $200,000,000-Nets
CPI)
$i 50,000.000s
$287,796,915 I $100,000,000 $135,000,00010
(2009 adjusted forl
CPI)
iime Limit to Incur DebP' Eliminated Eliminatetl I Eliminated Eliminated Eliminated
Time Limit on Receiving Tax
Increment and Paying July 1Q 2026 November 25, 2032 ��� July 15, 2038 July 172042 July 19, 2044
Indebtedness' °' '
.___—_... . . .. . _ .__._— -- . ___._. _ _ ._— _ _ _ .. _. ____ ___._— _.
Pursuant to Assembly Bill 1290 all pre 1994 redevelopment prolects were reqwretl to atlopl specifc time limitation. On December 8, 1994 the City
Council atlopted Ordinances 765. 766, 767, and 768 establishing such limits for the Prol�� �eas No. 1, 2, 3& 4, respectively.
' Pursuanito Senate 8ill 1045 (Statutes of 2003, Chapter 260), which was enactetl into law in 2003.the City Council atloptetl Ortlinances 1082, 1083,
1084, antl 1085 on December 9. 2�04 to extentl ihe ReGevelopmenl Plan effectiveness and Ihe time penotl to collect tax increment of each PrqeIX Area
No. 1, 2. 3 8 4, respedivety, by one year.
° Per the Sixih Amentlment to the Retlevelopment Plan for the Atltletl Territory of Pmjecl Area No.i, which set a limit o( $200 million to ihe Atltletl
Territory's bontletl intlebtetlness anG $500 million ro the Atltletl Territory's total tax incremenL ihe AGGetl Terrilory's tax incremen[ limit is exclusive of
amoun[s paitl to taxing agencies and exGusive of amounts paitl directly or intlirectly by lhe Agency or any taxing entiry ro fnance the acquisition of land,
;onstmction of buildinqs, facilities, SlmcWreS or impmvements for such taxing agencies.
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' The total tax increment limi� for Projec� Area Na 2 is $800 million, adjustetl annually basetl upon the Consumer Price Index ("CPI"). This limit is
sxpressed in 198] dollars and is adlusted in accordance with the changes in the region's CPI . Expressed in current dollars, the limit is $t.5a6,449,ai8.
' Project Area No. 3 has a net tax increment of limitation of $3fi0 million. Net tax increment is gross tax increment less amounis [hat are passetl [hrough
to taxing agencies antl amounts sehaside in[o the Agency's Low anG Moderate Income Housing Funtl.
' The total gross amount of tax increment revenue that may be allocatetl lo Ihe Agency from Prolect Area No. 4 cannot not exceetl $600 million.
Additionally, lhe number of tex dollars, which may be divided and allocatetl ro ihe Agency, also may not enceetl the amount of $200 million, net of the
funds requiretl to be sebasitle into the A9ency Low and Motlerate Income Housing FunG anC paymenls fo the Project Area's taxing agencies pursuant to
coo0eralive agreemenls. Both the $600 million gmss cap and ihe $200 million net cap may not be changed except by amendment of the redevelopment
� At ihe time of the Adoption of ihe Original Area of Pmject No. 1 there was no �equirement for the Redevelopment Plan ro have a Bontl Debt LimiL This
requirement for older redevelopment plans has not been chanqed.
� Per the Sixth Amentlment ro the Redevelopment Plan for Prol� Area No.1 for ihe Atldetl Territory atlopted on January 24, 1991, ihe BondeG Debt Cap
is exclusive of bonds issued to finance the acquisition of land, construction of builtlings, facilities, stmcWres or improvemenis for [axing agencies.
' The Redevelopment Plan for the Pmject Area No. 2 sets a cap on total bontletl intlebtetlness ihat may be outstanding at any one time of $150 million.
The Plan also proviGes for ihe annual adjustment o( ihe bondetl intlebtetlness cap, expressetl in 198] tlollars, in accortlance with the changes in the
region's CPI. Expressetl in current tlollars, the cap Is set at $289,959266.
10 The Redevelopment Plan for the Prolect Area No. 4 places a cap on rotal bondetl intle�tetlness. which may be outstanding at any one time at $135
million Such ne� limitation is exclusive of (1) the amount of any bondetl indebtedness issued on behalf of or the proceetls of which are usetl for the
beneft of the taxing aqencies to alleviate financial burden, or detriment made by the Agency pursuant to Section 512 of the Redevelopment Plart, and (2)
Ihe amount of any bonded indebtedness payable fmm any monies deposi[ed in ihe Agency's Low antl Moderate Income Housing Wnd.
il atloptetl Ortlinance No. �035. 1036,1062, antl 1063 amending ihe Redevelopment Plans for Project Areas No. 1. 2, 3& 4, respectivery, lo
lime limit ro incur debt, pursuant to Senate Bill 211(Statues of 2001 Chapter 741), which was enactetl into law in 2001.
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The following map illustrates the location and boundaries of the Project Areas with the City.
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City ofPalm Desert
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Redev¢lopm¢nt Agenry
Project Areos
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LEGAL REQUIREMENTS
The required housing portion of this Implementation Plan (Housing Compliance Plan) serves
as a blueprint for current and future Agency activities to meet its affordable housing production
and other responsibilities. This Compliance Plan presents a summary of the Agency's
inclusionary and replacement housing programs as mandated by Sections 33413(a) and (b)(4)
and 33490(a)(2) and (3) of the CRL. Specifically, it presents a reconciliation of the Agency's
replacement housing obligations. It provides a forecast of the number of housing units that are
or will be reserved and affordable to very low, low and moderate income persons or families
over the second five years of the ten year planning period (fiscal years 2009-10 through 2013-
14), the next ten year period and until the termination of the Redevelopment Plans.
The Compliance Plan also addresses the requirement that at least 20% of all tax increment
revenues allocated from the Project Areas are reserved and deposited into a special fund for
increasing, improving and preserving the community supply of affordable housing dedicated to
persons or families of low or moderate income.° Such housing must additionally be made
affordable to these targeted income groups at affordable housing costs as defined by the
California Health and Safety Law.S The Compliance Plan must disclose the current balance
and projected annual deposits of set-aside and other revenue into the Housing Fund for the
Plan's five year period. It must enumerate the Agency's Housing Program and show annual
estimates of Housing Fund expenditures. It must provide descriptions of how the Agency's
Housing Program shown in the Compliance Plan will expend Housing Funds to meet the
CRL's targeting requirements by household types (very low income, low income, moderate
income and persons regardless of age) proportionate to community need. The Compliance
Plan must show the amounts of Housing Funds used over the last five years to assist
extremely low, very low, and low income units. It must identify the number, location, and level
of affordability of newly constructed units with other locally controlled government assistance
(no redevelopment agency assistance) that are required to be affordable to, and occupied by,
low, very low, or extremely low income persons for 55 years (rental) or 45 years (for-sale).
Finally it must provide the number, location, level of affordability, and amount of Housing
Funds used to assist units available to all persons regardless of age over the last five years.
° The CRL defines and limits income categories as follows: Very Low Income - persons or households whose
gross income does not exceed 50% of the area's median income; Low Income - persons or households whose
gross income are greater than 50% but do not exceed 80% of the area's median income; Moderate-Income —
persons or households whose gross income are greater than 80% but do not exceed 120% of the area's median
income.
s Section 50052.5 of the California Health and Safety Code defines affordable housing cost as:-Very Low — Not
� more than 30% of 50% of the County median household income. -Low — Not more than 30% of 70% (or 60% for
rental projects) of the County median household income.-Moderate — Not more than 35% of 110% (or 30% of
110% for rental projects) of the County median household income. Affordability amounts under the Stipulation for
Very Low Income are 25% of 50%.
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HOUSING PROGRAM GOALS & OBJECTIVES
The Agency's Goals for the term of this Compliance Period are:
• To increase, improve and preserve the Community's supply of low and moderate
income housing citywide.
• To comply with the replacement and inclusionary housing requirements mandated
by the Law.
• To leverage the Agency's Housing Funds with other resources in order to promote
affordable housing.
• To ensure that the dollars spent for general administrative activities are not
disproportionate to the amounts actually spent to produce, increase, and preserve
housing.
• To give priority to housing proposals that will eliminate or prevent the spread of
blight Citywide and decrease excess demands on public services such as police,
code enforcement and building and safety within the Project Areas.
• To utilize the Palm Desert Housing Authority's ("Housing Authority") resources and
powers as tools to implement and assist with the development of affordable low and
moderate income housing.
• To utilize the Housing Authority's efforts to provide affordable low and moderate
income housing and to stabilize problem multifamily projects and distressed areas.
• To provide direction in the development of housing programs and projects that over
time will enable the City and Agency to meet their combined housing obligations.
Objectives of the Compliance Plan
• Provide an assessment of the Agency's compliance with all aspects of the CRL's
various affordable housing requirements and replacement housing requirements,
including current and future need for inclusionary units and the use of housing set-
aside funds.
• Account for the number of affordable dwelling units, either constructed or
substantially rehabilitated, in the Project Areas since adoption; �
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• Forecast the estimated number of dwelling units to be privately developed or
substantially rehabilitated between fiscal years 2009-10 to 2013-14, 2014-15 to
2024-25 and over the duration of the Redevelopment Plans;
• Forecast the estimated number of dwelling units to be developed or substantially
rehabilitated by the Agency between fiscal years 2009-10 to 2013-14, 2014-15 to
2024-25 and over the duration of the Redevelopment Plans;
• Account for any low or moderate income housing units destroyed through the
Agency's implementation of the Redevelopment Plans;
• Verify the number and type of replacement units provided by the Agency in response
to any units destroyed through Agency action;
• Provide estimates of the amount of Housing Fund revenues available to fund
affordable housing production;
• Establishment of a timeline for implementing this Compliance Plan to ensure that the
requirements of CRL Section 33413 are met during the five year period between
fiscal years 2009-10 through 2013-14;and
• To confirm the consistency of Agency affordable housing goals, objectives, and
programs pursuant to the City of Palm Desert's current Housing Element.
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HOUSING ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
During the last five years, the Agency has developed many numerous housing projects and
implemented many successful housing programs within the Project Areas and the City. Below
are descriptions of just a few of these programs. A detailed listing of all the housing projects
and programs completed in the Project Areas is provided in Table 1 on the following page.
Falcon Crest/La Rocca Villas
F ,�T� i
���.����
�
i.
�y3� a>
i
The project is a blended affordable development of 93 for-sale single family homes and 27 senior rental units,
developed with the intention of encouraging social, economic, and household composition diversity. The
Agency assisted in the development and helped subsidize rents and sales of the units which are all affordable.
The Agency acquired the existing 14 unit property
in order to increase the availability of affordable
units in the City.
13
California Villas Acquisition /
Renovation
The Agency acquired Ihe property in 2003 and
renovated an existing multi-family complex that II
exhibited substandard conditions. The complex ,�
has 141 units which are available to very low,
low and moderate income households. 78
Sagecrest Senior Apartments
�
t � ._
�..-... r��F'�� V;! ,�1�� .
�•5y.' iW ��r. hY� i�� �
. 1 ! M.
� l�"+.r . p A—.,. .
.Ra /" y�
Sares Regis-Enclave (64 units)
As part of a density bonus, the Agency entered
into agreements with a private developer in
2004 to include affordable housing throughout
the development.
..... � +'"'. i°"
I _:. ,,..r/� .� �>
�F � -, { �.� ,� �`1
s
x :� '�� �� �� � _ _
4
i ti � � �
- Y. ' �
1 �!
�. ,�; _ ;
��" "�"-��i��:,.
Palm Village
Acquisiiion/Construction
Agency funds were used to construct a
new 36 unit multi-family affordable
housing complex, available to very low
and low-income households
14
t
_i
��7 �'
Laguna Pa/ms Acquisition / Renovation
The Agency acquired the property in 2003 and
renovated an existing multi-family complex that
exhibited substandard conditions. The complex
has 48 units which are available to very low, low
and moderete income households.
'..�^'� .,..,,..
- — " � � 34: �, _ {
��
� I , �� �` . x ;_�.�,�s�y .�=�
_
�.
Habitat for Humanity
The Agency donated property to Habi[at for
Humanity to provide housing to very low and
low-income households in exchange for an
affordable restriction placed on the property.
79
Table 1 provides a detailed listing of the Agency's housing accomplishments between FY2004-
05 through FY2008-09.
Agency Housing Accomplishments Table 2
2004-OSthrough 2008-09
Project Name Project Description/Highlights
Agency funds were usetl to upgratle �he in�erior hallways
ert Pomte Improvemenls �o eliminate healih and safery electrical concems and to
enhance a wall faFatle in ortler to tlecrease Ihe damage
from tenanl ingress antl egress.
The Agency replacetl t�e tleteriorated carport mof system
o Quail Place Carpons at a 384 unit affortlable housing complex owned by Ihe
Agency. The units are available to very low, low antl
motlerate-income households.
itllewootl The Agency acquired Ihis ezis�ing 30 unit pmperty in ortler
to eliminate their "at risk" affordable housing units staNs.
The Agenry arquired a blighted pmperty atljacenl to
Propetly Couniry Village ApaM1ments for expansion of the
availabiliry of affortlable housing.
Agency funtls were used to impmve si9nage w�ich will
� Quail Place Signage enhance sa(ety vehicle si�e iden(ification as well as
provitle bener access to the site.
lecresl 1 The Agency arquired �his exis�ing 15 uni� property in ortler
�o increase the availabiliry of affordable units in the Ciry.
The project was a blended aHordable tlevelopment of 93
for-sale single (amily hames antl 27 senior rental units
;on CresVLa Rocca w�ich was developed with lhe inteNion of encouraging
is social, economic. antl householtl composition diversiry.
The Agency assisted in ihe development antl helpetl
subsidize ren�s and sales otlhe aftortlable units.
nebuyer Subsitlies- The Agency pmvitletl frs4lime homebuyer assis�ance to
:on Cres� restridetl income households tor a 93 units for sale
development.
iitat for Humaniry The Agenq donated property �o Habita� for Numaniry to
provide housing to very low and low-income householtls.
The Agency acquired Ihe pmpetly in 2003 and renovated
una Palms an existing mNli-family complex that exhibitetl
uisi�ion/Renovation substantlard conditions. The wmplex has 48 units which
are available to very low. low antl moderote income
householtls.
Completion Date ��.
March 2005
June 2006
July 2006
November 2006
June 2007
Febmary 2008
April 2ao8
Apn12008
May 2008
June 2008
$156.636
$503,255
53253,759
$1.890.998
$41.366 �
$1,909.878
$31.960,8]6
53,228,001
$254.067
$10,328.950
�
15
f il]
Agency Housing Accomplishments
2004-OS through 2008-09
Project Name
Palm Village
AcquisitianlCansiruction
Sagecresl Sr
California Villas
Acqu isilion/Renovatio n
Country Village
Acquisition/Renovation
� Taos Palms Renovation
Compliance Programs
Developer Ag2emen[s for
ANordable Housing
�,
'��, Project DescriptioNHighlights
Agency funtls were usetl b constmct a new 36 unit multi-
famity affortlable housing complex, available �o very low
and low-income households. In addition lo Agenq funds,
$600,000 of HOME funds were used to assist with ihis
project.
The Agency acquired �he ezis�ing 14 unit pmperly in order
to increase ihe availabiliry oi aHordable unils in ihe City.
The Agency acquired the property in 2003 antl renovaletl
an existing mW�i-family mmplez ihat exhibiled
substantlartl contli�ions. The complen has 141 unils which
are available to very low, low and modera�e income
househalds.
The Agency acquired �he property in order to maintain Ihe
propertys viabiliry antl to increase the affordable housing
in t�e City. The eaisfing fifi units have been
tleconsimcted antl lhe Agency has relocatetl lhe affectetl
�enan�s in anticipation of a pmposed project consis�ing of
appmxima�ely ]2 affordable residential units.
�i The Agency is funding lhe retlesign for in�erior
I renovations of deteriora�ed apahmen� units whic� are
I available to very low, low, an� moderate income
Ihouseholtls.
IThe Agency has crea�ed programs to provitle assislance
� to homebuyers, renters and resitlen(s that neetl home
� improvemenis or access to affortlable housing.
Arquisilion, Rehabilita�ion, antl Resale
HomelmprovemenlProgram �
Rental Assistance
Resale Program
i First Time Homebuyer Program
i Agreemen�s behveen the Agency and private tlevelopers
require implementation of aHortlable housing thmughout
their developments.
Sares Regis-Enclave (64 units)
I Falling Waters (49 units)
Vineyards (52 units + optlon for 51 atlClHonal units)
Bernartl (4 unlls)
Emeraltl 6rook (21 units)
�, L & T Invesiments (4 units)
Completion Date
November 2008
Febmary 2009
June 2009
In Progress
In Progress
In Pmgress
On-Going
Agreement Daletl
BI10/2004
Agreement Dated
4I16I2007
Agreement Datetl
3I27I2008
Agreement Dated
10/22/2007
Pentling
Total Gross Eapenditure 2004-05 through 2008-09:
Nofe: Gross Expentlitures in Table 2 tlo nof re(lec! loan receivables.
Table 2
(Cont.)
3ross
diture
$8.342.909
$2,160,639
$16,592?19
$5,140 783
$20,082
822.3� 4
$126.296
$161,062
Unknown
Unknown
Unknown
Unknown
Unknown
Unknown
588,079,230
81
16
HOUSING COMPLIANCE PLAN CATEGORIES
The housing component of a redevelopment agency's implementation plan establishes ten-
year objectives to achieve compliance with the housing requirements of CRL. The housing
component (unlike the non-housing portion of an implementation plan) must address both a
five and ten year period, setting forth an agency's affordable housing projects and programs
over these periods. Because of the examination of past efforts, future need and future
expenditures and programs the document is commonly referred as the housing compliance
plan or compliance plan. A compliance plan must address specific requirements that are set
out in Section 33490 of the CRL which generally fall into three categories which will be
addressed in the Compliance Plan. They are:
1. Housing Production — A redevelopment agency is required to ensure that a specific
percentage of housing units are made available and affordable to low and moderate
income households within a project area over the life of the redevelopment plan
governing the project area. These required affordable units are typically referred to as
"Inclusionary Units" and are based on the number of housing units constructed or
substantially rehabilitated within a redevelopment project area over a five and ten-year
period and the over the remaining effectiveness (term) of a redevelopment plan.
2. Replacement Housing — Another legal obligation of a redevelopment agency is to
ensure that any housing units occupied by low or moderate income persons destroyed
or removed as a result of an agency action are replaced within four years with a like
number of units with the same total number of bedrooms for the specific income (or
lower) groups being displaced. Potential projects must be identified as well as the
replacement units or plans that will result in the replacement of the destroyed units.
3. Housing Fund & Expenditures by Household Types — A redevelopment agency is
required to specify the amount of housing set-aside funds an agency must set aside and
spend over a five and ten-year period on housing affordable to very low income
households, low income households, and housing for residents regardless of age.
�
17
m
2010-2014 HOUSING GOALS & OBJECTIVES
The following goals and objectives generally correspond to those included in the
Redevelopment Plan for each of the Project Areas. These goals in conjunction with the
Housing Goals and Objectives provided on the prior pages of this Compliance Plan formulate
the overall strategy for this Compliance Plan and will serve as a guide for the Agency's
activities during the next five years.
�Remove Blight. To eliminate and prevent the spread of blight and deterioration, and to
conserve, rehabilitate, and redevelop the Project Area in accordance with the
CLEAN Redevelopment Plan and Annual Work Programs.
Encourage and Coordinate Stakeholder Participation and Investment. To encourage
�the cooperation and participation of residents, businesspersons, public agencies, and
community organizations in the revitalization of the Project Area. To encourage private
sector investment in the development and redevelopment of the Project Area. To
co��aeoaa.e coordinate revitalization efforts in the Project Area with other public programs offered by the
City and other public agencies.
�.. Diversify and Expand Economic Base and Employment Opportunities. To promote
,� the economic well being of the Project Area by encouraging the diversification and
woaK development of its economic base and employment opportunities.
Promote Responsible Development For Our Community. To encourage the
Qdevelopment of commercial and residential environments which positively relate to adjacent
land uses, and upgrade and stabilize existing uses. To provide for the revitalization and full
development of the City's core commercial area, to attain consistent image and character,
VFESERVE and to enhance their economic viability. To expand the resource of developable land by
making underutilized land available for redevelopment.
Improve Community Facilities, Infrastructure, and Traffic Circulation. To provide
� needed improvements to the community's education, cultural and other community facilities
� to better serve the Project Area. To provide needed improvements to the utility
infrastructure and public facilities that service the Project Area. To improve traffic circulation
"«Es� through the reconstruction and improvement of existing streets in the Project Area. To
provide for necessary public parking to address parking deficiencies.
�Initiate Green Projects and Programs. To move energy conservation / efficiency
objectives beyond discourse and demonstrates projects that achieve significant quantifiable
GREEN energy reduction. To invest municipal resources in measurable sustainable programs.
Q Provide and Improve Affordable Housing Opportunities.
F assist low and moderate-income persons and families to
N promote the rehabilitation of existing housing stock wher
L L1°E development of quality, affordable housing.
G[ ]
To improve housing and
obtain homeownership. To
e appropriate and promote
83
HOUSING PROJECTS AND PROGRAMS
FY 2009-10 through FY 2013-14
The Agency will continue implementation of affordable housing projects throughout the Project
Areas and Citywide over the balance of the Compliance Period. The Agency's housing
production activities over the last five years have resulted in a substantial number of affordable
housing units being created, reserved or produced. The Agency's future housing activities will
follow this Plan's goals and objectives by continuing to concentrate efforts producing additional
affordable units to meet the Agency's inclusionary requirements. Future affordable housing
implementation activities will fall into the following categories:
1. Multi-Family Housing Rehabilitation — The Agency will provide for both internal and
external renovations and upgrades to deteriorated apartments. Improvements will be
performed on units that are available to very low, low, and moderate income
households.
2. Property Acquisitio� — The Agency will acquire property for the purpose of creating
both single and multi-family affordable housing projects. The Agency will focus on
acquiring dilapidated multi-family apartments complexes that can be rehabilitated for the
purpose of affordable housing.
3. New Construction of Affordable Housing — The Agency may construct or may help
finance housing projects yielding affordable housing units with restrictive covenants by
providing developer subsidies.
4. Affordable Housing Subsidies — The Agency will provide subsidies to assist first time
homebuyers purchasing affordable housing, assist property owners rehabilitating
deteriorated affordable housing.
Table 3 contains a specific list of programs and projects proposed by the Agency to meet
affordable housing requirements during the remaining Compliance Period. Table 3 presents
the anticipated expenditures, funding source, blight elimination, estimated timeframe,
redevelopment goal achieved by each of the projects and programs listed. Each project and
program will assist in increasing the availability of affordable units in the City.
u
19
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�
HOUSING PRODUCTION
The Agency's inclusionary housing unit need was initially established by a detailed review of
housing units built or substantially rehabilitated in the Project Areas from adoption through
June of 1994. Additionally, projections of units to be built or substantially rehabilitated from July
of 1994 through June of 2004 were developed and utilized in the first Compliance Plan
adopted by the Agency in December of 1994. Since 1994, the 1999 and 2004 Compliance
Plans have reassessed and updated both the number of units constructed as well as those
anticipated to be developed or substantially rehabilitated over the various five, ten year and
remaining life of each of the Project Areas to establish and update the Agency's inclusionary
housing production unit need.
To update the number of housing units that need to be affordable to low or moderate income
households, the Agency determined the total number of units constructed or substantially
rehabilitated over the last five years within each of the Project Areas. Estimates of units to be
newly constructed or substantially rehabilitated in future years were calculated and the
required affordable units were determined by applying the formulas pursuant to the CRL. The
following inclusionary housing analysis takes into account all residential construction or
substantial rehabilitation that occurred within the Project Areas since their adoptions to
� determine affordable housing production needs. Housing production figures are calculated for
existing residential construction and substantial rehabilitation, and include projections for the
number of additional dwelling units to be constructed or substantially rehabilitated during the
Compliance Period, the next ten years, and over the life of the Project Areas.
The following narrative defines "new construction" and "substantially rehabilitated" as required
by CRL, as well as describes the methodology used for collecting data on both existing and
projected housing units for completion of the Compliance Plan.
New Construction - The Agency and City Planning staff provided the original construction
statistics used in prior Housing Compliance Plans. Because the Law does not provide a clear
definition of new construction, the Agency staff, consultant, and legal counsel have agreed
upon a"definition" for new construction. The definition: "new construction occurs when
building permits are issued for and construction occurs resulting in the development of a new
dwelling uniY'. Counts of new dwelling units developed from 2005 through 2009 were based
upon Certificates of Occupancy and Final Inspection records of the City's Building and Safety
Department.
Future Proiections of New Units - Projections of future new units have been based on General
Plan land use densities and available vacant land. The Community Development Director and
Planning staff have reviewed the General Plan densities of residentially zoned vacant land
within the Project Areas to determine the potential numbers of new and substantially
rehabilitated units that can be expected to be developed over the remaining effectiveness of
the Redevelopment Plans. Projections of substantially rehabilitated units have been included
for the remaining Compliance Period based on the Agency's proposed projects detailed in
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Table 11. No projections of substantially rehabilitated or Agency developed units have been
included past the Compliance Period. Projections of future Agency developed and substantially
rehabilitated units will be reevaluated at the midterm review and updated the preparation of
future implementation plans.
Apencv Develoqed Units - Historically, the Agency has directly developed or rehabilitated
dwelling units triggering the thirty percent (30%) affordable housing requirement of Section
33413(b)(I) of CRL. During the remaining term of the Project Areas, where appropriate, the
Agency may directly develop or rehabilitate dwelling units to meet its inclusionary housing unit
need. Additionally, the Agency will continue to cooperate with and provide assistance and
incentives to private developers, nonprofits, and the Housing Authority in order to meet
affordable housing production goals.
Privatelv Developed Units
developers will trigger the
33413(2)(A)(i) of the CRL.
Substantial Rehabilitation
rehabilitation" as:
- Dwelling units constructed within the Project Areas by private
fifteen percent (15%) affordable housing requirement of Section
The CRL, as amended by AB 1290, defines "substantial
rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of
the dwelling, inclusive of the land value" (Section 33413(b) (2) (A) (IV)).
As defined by CRL "substantially rehabilitated dwelling units" means:
"On or after January 1, 2002, substantially rehabilitated dwelling uniYs means all units
substantially rehabilitated, with agency assistance. Prior to January 1, 2002 substantially
rehabilitated dwelling units shall mean multifamily rental units with three or more units or
substantially rehabilitated with agency assistance, single-family dwelling units with one or two
units" (Section 33413(b) (2) (A) (iii)).
Inclusionary Housing Production Requirements
As previously described, Section 33413(b) of the CRL requires that not less than 30% of any
Agency-developed units ("30% Units") or 15% of privately developed units ("15% Units")
produced during the next five and ten year periods as well as the period remaining on the life
of the Redevelopment Plans, be affordable to low or moderate income households. CRL also
requires that of the 30% Units, at least 50% of these and at least 40% of the 15% Units be
specifically reserved for, and affordable to, very low income households. The affordable
housing production requirements for this Compliance Plan should be met during the ten year
period which ends on June 30, 2014.
Table 3 summarizes the production requirements over various time periods as required by the ,�
� CRL. The number of affordable units required is based on statutory thresholds. Pursuant to
the CRL, the Agency is responsible for ensuring that the appropriate number of affordable °
units is created during the Compliance Period. Exhibit A provides a glossary of terms related
to affordable housing covenants, affordability limits, and inclusionary unit satisfaction.
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Time Requirements for Affordability Restrictions
�
Effective as of January 1, 2002, all units assisted by the Housing Fund including replacement
housing units and inclusionary housing units must be affordable for 55 years for rental units or
45 years for owner-occupied units. Units assisted, rehabilitated or constructed prior to January
1, 2002 may have shorter time limits as provided by the CRL at the time of their production.
Inclusionary Unit Need Estimation
Tables 4 through 8 presented below provide documentation of the number of housing units
produced or projected to be produced over the Compliance Periods as well as over the life of
the Project Areas. The Tables also provide an assessment of the number of inclusionary units
required to meet the standards of the CRL over the Compliance Periods as well as over the life
of the Project Areas. Table 4 provides a summary of collective housing unit calculation for all
of the Project Areas. Tables 5 through 8 provide separate details for each of the four Project
Areas.
Inclusionary Housing Obligation Table 4
Housing Unifs Constructed or Subsfantially Rehabilitated Number Inclusiona Units Required
(Inclusive of both Agencyantl Privab Devalopatl Unitc) of Units Total Unils VL Unita L(M Units
Summary of All Prqect Areas
Adoption Thraugh 1994 5,121 778 314 464
__1994Throuqh2003-04 '___ 3,019 _________485 ________207_ _________284
_______________________________________"""' '
Adop�ion Through 2004 8.140 1,263 515 748
2004-05 Through 2008-09 6H6 126 56 70
2009-70 Through 2073_14 285 179 55 64
""' """""""""""""""..."" __ _______."
2004-OS Through 2013-14 971 245 111 134
2014-15 Through 2018-19' 1,250 188 75 113
2019-20 Throu h End of Plan 1,424 214 85 128
All Pro'ect Areas Atlo tion throu h Entl of Plan 71,785 7,909 786 1,123
i .�.._,._. _..__�.....__..........._ .__...._.._ _..�_..�,.._., �.,...,.. ,._ , �o . ....... ........�„�.......,.i......w .....�.. _... onai_ ,.s ��.., n,.,...,....,.....i....... ...,.��
' Units projec�etl during nec� planning periotl.
�
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�
�V
II
27
92
� This number inclutles 12 substantially rehabilita�ed unils.
� Includes the Sagecresl project.
° Units projec�ed during ihe ne�R planning period.
' Units projectea Ouring �he next planning period.
' Inclutles the Vineyartls project.
Inclusiona Housin Obli ation Table 7
Project Area No. 3
Number Inclusiana Units Required
Housing Units Constructed or SubsGntially RehabiliWted af Units Total Units VL Unils LIM Units
Date ofAdopfion Through 630-94
Agency Developetl: Adoption through 630-94 (30 % Requirement) 0 0 0 0
Privately Developed: Adoption through 630-94 (15 % Requirement) 80 12 5 7
SUBTOTAL Da[e ofAdopfion through 630-94 80 12 5 7
Agency Developed 1994-2004 (30 % Requirement) 2 1 1 0
Privately Devel�ed 19942004 �5 % Reguirement) 541 81 32 49
SUBTOTAL 1994-2004 543 82 J3 49
TOTAL Adop[ion through 2004 623 94 38 56
Agency Developed 2004-05lhrough 2008-09 (30 % Requirement) 120 36 18 78
Privately Developed 2004-OS through 2008-09 (15 % Re_ uirement 109 16 7 9
SUBTOTAL 2004-05 through 2008-09 229 51 25 27
Agency Developed 2009-10 through 20'13-14 (30 % Requirement)' 45.0 13.5 6.8 7.0
Privately Developed 2009-10 through 2013-14 (15 % Requirement) 10 2 1 1
SUBTOTAL Estimated 2009-f0 fhrou h 2013-14 55 15 27 36
TOTAL 2004-05 throu h 2013-14 284 67 45 63
2014-i5through 2018-19' 10 2 1 1
Through End of Plan (2032) 3 0.5 0.2 0.3
Project Area No. 3 Adoption [hrough End of Plan 920 163 84 120
' Number o( inclusionary units required is calculated based on 15 % of ihe Drivately tlevelopetl units antl 3� % of the Agency tlevelopetl units.
' Units projeaetl during ihe next plannin9 periotl.
' InUutles ihe Self Help Housing Metle Streel antl Canterra Phase 11 pmjects.
Inclusiona Housin Obli ation Table 6
Project Area No. 4
Number Inclusiona Units Re uired
Housing Unifs Constructed or SubsWntially Rehabilitated of Units Total Unib VL Units LIM Units
Date oi Adoption 7hrough 6-30-9d
Agency Developed' Adoptian through 630-94 (30 % Requiremenl) 0 0 0 0
Privately Developed: Adaption lhmugh 630-94 (15 % Requiremenl) 218 33 13 20
SUBTOiAL Date ofAdoPtion through 6-J0.94 Ti8 J3 13 20
Agency Developed 1994-2004 (30% Requirement) 141 42 21 21
Privately Developed 1994-2004 (15 % Requirement) 937 141 56 85
SUBiOTAL 1994-2004 1 07H 18J 77 106
TOTAL Adoption throu h 2004 1,296 216 9U 126
Agency Developed 2004-05 through 2008-09 (30 % Requirement) 0 0 0 0
Privately Developed 2004-05 thmugh 2008-09�15 % Requiremenl� 61 9 4 5
SUBTOTAL I00405 through 2008-09'� � 61 9 4 5
Agency Developed 2009-10 through 2013-14 (30% Requirement)' 72 21.6 11 11
Privately Developed 2009-10lhrough 2013-14 (15% Requirement) 10 _ 2 1 1
SUBTOTAL Estimate 2009•10 throu h 2019•14 8Y 24 tY 12
TOTAL 2004-05 Thru 2013-74 143 33 16 17
2014-15through 2078-19° 60 9 4 5
Through End of Plan (2034) 6 1 0 1
Project Area No. 4 Adoption Through End ot Plan 7,505 259 110 150
� Number of inclusionary units required is calculated based on 15°h of ihe privately developed unils antl 30 % of fhe Agency tleveloped units.
` This number includes 12 substantially rehabilitaletl units.
� Inclutles fhe Counlry Village pmjec�.
° Units pmjec�ed tluring �he next planning period.
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Aggregation of Affordable Units Among All Project Areas
Section 33413 (b)(2)(A)(v) of the CRL provides that redevelopment agencies may "aggregate
new or substantially rehabilitated dwelling units in one or more project areas if the agency
finds, based upon substantial evidence, after a public hearing, that the aggregation will not
cause or exacerbate racial, ethnic, or economic segregation."
Status of Agency's Inclusionary Housing Production
Table 9 presents reconciliation of the Agency's affordable housing production requirement for
the prior and the remaining Compliance Period, as well as over the next ten years, and the
entire duration of each of the Project Areas. The information provided in Table 9 is based upon
the housing production numbers presented in Tables 4 through 8 and the Agency's inventory
of affordable housing projects completed to date (detailed in Tables 10 and 11).
As shown in Table 9 and based upon projections, the Agency anticipates a surplus of 210 low
and moderate income units and a surplus of 62 very low income units at the end of this ten
year period of the Compliance Plan. Details of production of affordable housing units for the
first five year period and the current and second five year period of this Compliance Plan is
shown in Table 11.
�
Inventory of Inclusionary Units I�
As previously described, Section 33413(b) of the CRL requires that not less than 30% of any ��
Agency-developed units or 15% of privately developed units must be made affordable to low
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'This inclusionary housing unit deficit was created in ihe Pre 1994 period. The Agency's housing production in the first ten year
compliance period (1995-2004) was sufficent to meet ihis need.
�Duretion of Redevelopment Plans are as follows: Original Project 1: 2016. Atlded Territory: 2022,
Project No. 2�. 2028, Project No. 3 2032, Project No. 4: 2034.
and moderate income households. Table 10 below details the Agency's production or
reservation of affordable housing units through June 2004.
C.
Project
Type
1994
PGA
PC-A
PC-A
PC-A
PC-A
NC
SR-A
RC-A
RC
RC
7994-June 2004
SR-A
PC-A
MH-OU
NC
NC
NC
NC
SR-A
SR-A
NC
MA-A
NC
NC
NC
RC
NC
Project Name
One Quail Place
Pueblos
Neighbors
Catalina Gardens
Las Serenas'
CV Self Help Housing
Desert Pointe
San Tropez
Shadow Hills Estates
Shadow Hills Estates
Santa Rosa Apartments
Taos Paims
Portola Palms Mobile Home Pk
Desert Rase SF Homes
Building Horizons SF Homes
Habitat for Humanity
Rebecca Road
Califomia Villas
Laguna Palms
Hovely Gardens
Candlewood
Villas on the Green
Camerra Phase 1
Pacific Assisted Living
74-047 San Marino Circle
River Run One
Total Total Numberof Full o
Affordable Units NumberofVL NumberoFLow Moderate 50%
Units in Credited Units Units Units Credi
Project
Total Credited Tolal Cretlited Total Credited
384
15
24
72
123
11
64
103
6
10
812
20
16
39
161
2
3
2
141
48
130
26
15
31
2
1
2
384 133 133 191 191 60 60
15 13 13 1 1 1 1
24 14 14 3 3 7 7
72 49 49 8 8 15 15
61.5 71 35.5 21 10.5 31 15.5
11 0 0 11 11 0 0
64 26 26 14 14 24 24
51.5 0 0 103 51.5 0 0
6 0 0 0 0 6 6
10 0 0 0 0 10 1�
699 306 270.5 352 290 154 138.5
Total Credited Total Credited Total Credited
zo zo zo 0 0 0 0
16 12 12 3 3 1 1
39 29 29 6 6 4 4
161 24 24 105 105 32 32
2 0 0 2 2 0 0
3 3 3 0 0 0 0
2 0 0 2 2 0 0
141 97 97 26 26 18 18
48 27 27 5 5 16 16
130 62 62 67 67 1 1
26 23 23 0 0 3 3
15 0 0 8 8 7 7
31 31 31 0 0 0 0
2 0 0 2 2 0 0
1 0 0 0 0 1 1
2 0 0 2 2 0 0
Full
Full
Full
Full
50%
Full
Full
50 %
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
AHordable units created from existing units ihrough the purchase of units with afforaability covenants. "A" indicates units are ownetl by
Units created by new consimction
Resirictetl covenants imposetl as a contlition of Development
Home ownership assis�ance
Units created thmugh lhe rehabili�alion of exis�ing uni�s with the imposilion of affordabiliry covenants
Maintain affordability of income-restric�ed uni�s
Las Seranas contains 24 units thal will be counted as replacement houfsng units for the Country Villages antl have not been inclutletl.
� The Agency anticipates development of affordable housing projects in the Project Areas over
the Compliance Period that may result in sufficient units to meet the housing production
requirements, thereby achieving these housing production requirements. Table 11 below
KI�]
9s
deiails the Agency's affordable housing units created during the first five year period of the
Compliance Plan as well as units projected to be built, rehabilitated or reserved during the final
five year period of this 10 Year Plan. Legislative changes to the CRL in 2006 require the
Agency to publish on the City's website a list of all inclusionary units created by the Agency. A
complete list of inclusionary housing units covenanted to the Agency may be found on the
Agency's website at http://www.citvofpalmdesert.orq/Index.aspx?paqe=504.
Inclusionary Housing Projects Table 11
Total Total Number ot Wil or
Pmjed Pmject Affortlable Number of VL Number of Low
Area Type Pmject Name Uni�s in Units �ni[s Units Moderate 50% FY of Completion
Pmject Cretlitetl Units Cretlit
2004-2009 Total Credited Total Cretlitetl Total Cretlitetl
Palm Village Apartments
1 NC - SR-A Substantial Rehab 12 units antl 36 36 18 18 18 18 0 0 Full 2006
addition of 24 units
3 NC-A La Rocw Villas 2� 27 13 13 14 14 0 0 Full 2008
1 MA-A Sagecrest Senior 14 14 3 3 10 10 1 1 Full 2009
3 NGOU FalconCrest 93 93 0 0 13 �3 8� 80 Full 2008
2 RC The Vineyards 52 52 0 0 0 0 52 52 Full 2009
NIA RC T�e Endave (Sares Regis) 28 14 0 0 0 0 28 1A 50% 200�
1 MA-A Cantllewood 4 4 0 0 4 4 D 0 Full 2007
� NGOU HabitatforHumaniry 1 1 1 1 0 0 0 0 Full 2006
4 NGOU HabitatforHumanity 1 1 1 7 0 0 0 0 Full 2007
SUBTOTAL 256 242 36 3fi 59 59 161 14�
2010-2015 Total Cretlited Total Cretliletl Total Creditetl
Pro'ect Pmed Total Numberof Fullor
I 1 � Total Units Number of VL Number of Low Motlerete 50% Estimatetl FV of
Area T e ProectName inPmect Units Units Units
YP � Cretlited Units Cretli� Completion
Total Cretlitetl Total Cretli�etl Total Credited
3 NG Self Help Housing Merle Street 14 14 14 14 0 0 0 0 Full 2011
N/A RC EmeraltlBrook 21 10b � 0 0 0 21 ID.5 50% 2012
3 RC Canterra Phase II 31 31 0 0 31 31 0 0 Full 2012
2 PC The Vineyartls 51 51 0 0 0 0 51 51 Full 2014
1 PC-A Sagecres� 17 17 7 7 g 9 1 1 Full 2014
NIA NC HabitalforHumaniry 2 2 2 2 p 0 0 0 Full 2014
NlA NC Cooperative 2 2 0 0 2 2 0 � Full 2014
4 NC-A Carlos Ortega Villas 72 72 30 30 30 30 12 12 Full 2013
SUBTOTAL 200 53 53 72 ]2 85 74.5
Notes:
PCIPC-A: ARortlable units createtl (mm existing units �hmug� ihe pumhase of units with aHordaEility ruvenants. "A" intlicates units are mvned by
Agency
NC'. Units createtl by new wnsVudion
RC�. Restritled covenanis imposetl as a mntlition IN tlevelapment
OU'. Home mvnersM1ip assistance
SR�. Units created Ihrough ihe rehabilitation of existing units wiN ihe imposition of afforCability covenants
MA' Malntain attortla0ili�y of inmme-restrictetl units
Source. PalmCese�ReEavelopnenfAgenry
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REPLACEMENT HOUSING
The CRL requires that whenever housing occupied by low and moderate income persons or
households are destroyed as part of a redevelopment agency action; the agency is responsible
for ensuring that an equivalent number of replacement units are constructed or substantially
rehabilitated. These units must provide at least the same number of bedrooms destroyed, and
100°/o of the replacement units must be affordable to the same (or lower) income categories
(i.e. very low, low, and moderate) as those removed. Redevelopment agencies receive full
credit for replacement units created within the community whether inside or outside of a project
area6.
The Palm Desert Redevelopment Agency has actively pursued redevelopment and the
provision of affordable housing. To that end the Agency has during the last five years removed
low and moderate income units in the context of providing additional affordable housing.
Specifically, 66 units, consisting of 56 very low, low, and moderate income housing units, from
the Country Village apartments were removed and deconstructed. Pursuant to the CRL, the
Agency is required to replace these units within four years of their removal. These 56 units
include 56 bedrooms that must be replaced. The Agency had several options available to
provide the required replacement, including acquisition, rehabilitation, new construction, and
the allocation of "banked" dwelling units from prior development activity. The Agency in
compliance with the CRL adopted a Replacement Housing Plan for the Country Village Senior
Apartments Project which outlined the measures that the Agency would take to ensure that the
replacement housing is completed within the four year time period.
Table 12 illustrates how the Agency anticipates satisfying replacement housing needs
generated by the removal of Country Village apartment units. The Agency anticipates creating
90 replacement units with a total of 117 replacement bedrooms through the eight projects
detailed in Table 12. The Agency's actions as detailed in Table 12 confirm that it will meet the
anticipated replacement housing obligation. Additionally, housing produced as part of
replacement activities will create a surplus of one very low and 13 moderate income units (14
units total) created by the replacement units. There will also be a surplus of 61 bedrooms
generated by the replacement units. Creation of the replacement units have been completed
with the exception of Bernard and Emerald Brook projects, which have been approved and will
begin canstruction soon.
The Agency does not currently anticipate demolishing or removing any other low or moderate
income housing units during the remaining Compliance Period. However, should a project
arise that requires the removal of such units the Agency will follow CRL procedure by adopting
a replacement housing plan that ensures replacement of the units within the time period
� prescribed by the CRL.
6 Prior to January 1, 2002, 75% of all replacement units must be of the same income category or a lower income
category as those persons or households displaced. 9�
32
Project
Country Village
Bernard
Sares Regis (16 units)
Sares Regis (2B units)
L and T Investments
Carel, Lee and Sandra (2B unit)
Emerald Brook/W NRA (1 B units)
Emerald Brook/W NRA (2B units)
Total Replacement Units
Source: Palm Desert Redevelooment Aoencv
Total --' -""'-
Units Income
24
4
19
17
4
1
12
9
90
Table 1
al No. Very Low Low Moderat�
of Income Income Income
rooms Units Units Units
56 10 20 26
24
4
19
34
4
2
12
18
117
2 2
19
17
4
1
12
9
11 20 59
�
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�
HOUSING FUND
Five Year Work Plan Budget
The Agency's primary source of funding for housing projects and programs is the annual
deposit of 20% of its tax increment revenue into a special housing set-aside fund (the Housing
Fund). The CRL requires that these funds be used to increase, improve, and preserve the
community's supply of affordable housing available, to persons and families of very low, low,
and moderate incomes. Other sources of Housing Fund revenues include interest earnings,
bond proceeds, land sale proceeds, grants, and loan repayments.
Table 13 presents the Agency's Housing Fund, five-year projected cash flow for housing
activities during the remaining Compliance Period. Housing set-aside tax increment revenue is
deposited from all four Project Areas into the Housing Fund. Tax increment revenue shown in
Table 13 is the 20% housing set-aside revenue generated from the total tax increment
received by the Agency. Tax increment revenue projections were based off conservative
growth rates, reflective of the current market conditions. Other sources of Housing Fund
revenues include interest earnings, land sale proceeds, grants, and loan repayments.
Available bond funds and expenditures have also been included in the cash flow analysis. The
Agency has previously issued tax allocation bonds secured by its housing set-aside revenues.
This action was taken to ensure that sufficient capital was available to the Agency to advance
� its housing projects and programs.
Expenses shown in the Housing Fund's cash flow shown on Table 13 include bond debt
service payments, administrative fees, and projected projecUprogram costs. The cash flow
analysis indicates that Agency will have a positive cash flow during the Compliance Period and
there is sufficient revenue to support all proposed projects and programs.
Due to the State's effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a$350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a$5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a$2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to
` result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
� Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
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potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency's ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
�
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100
EXPENDITURES BY HOUSEHOLD TYPES
Effective January 2002 and as amended in 2006, expenditures of housing set-aside revenues
are subject to certain requirements imposed by the CRL. At a minimum, the Agency's Housing
Fund revenues are to be expended in proportion to the community's need for low and
moderate income housing.' Additionally, expenditures for senior housing is limited.
The community's proportionate need is based on statistics from Southern California
Association of Governments or "SCAG", used by local government to meet state requirements
for affordable housing by category, and the US Department of Housing and Urban
DevelopmenYs ("HUD") Comprehensive Housing Affordability Strategy ("CHAS") allocation
numbers.
Based on the Community's proportionate housing needs, the Agency's Housing Fund dollars
must be expended over the Compliance Period (as shown in Table 15) in a manner consistent
with a minimum of 41°/o of the funds spent to assist very low income persons or households
and at a minimum of 28°/o spent on low income persons or households. The remaining 31%
may be allocated either to the combined very low, low or moderate income groups, but not to
exceed this percentage spent on moderate income persons or households.
The limitations or targeting requirements also address the amounts of Housing Fund dollars
spent during the Compliance Period to assist all persons regardless of age in at least the same
proportion as the number of low-income households with a member under the age of 65 bears
to the total number of low income with in the Community. RSG has calculated the percentage
of low income households and low income senior households based upon information taken
from HUD's CHAS for the City of Palm Desert (see Table 14 below). Based upon the current
CRL regulations, the Agency is limited to expending a maximum of 46°/o of its Housing Funds
during this Compliance Period on housing limited to Senior/Elderly Households.
Number of
Low Income Households' Households % of Total
Elderly/Senior 2,670 46%
Family Other 3,182 54%
' As computed fmm ihe US departmenl of Housing antl Urban DevelopmenYs
Comprehensive Housing Affordability Strategy ("CHAS")
Table 15 represents the minimum and maximum Housing Fund expenditure thresholds for low
and moderate income groups and the maximum Housing Fund expenditure thresholds for
' Required proportions of funds to be expended are based upon the City's Regional Housing Need as provided by
Southem Califomia Association of Governments. The number of units required for very low, low and moderate
income households provide the basis for the targeting calculation as required by Section 33334.4 of the
Redevelopment Law. 101
36
households 65 years of age, over the term of the Compliance Period. The chart specifically
details the Agency's Housing Fund expenditures during each of the five year periods that
comprise the Compliance Period.
This Compliance Plan represents the Agency's overall plan to meet its housing obligations for
the next five year period. The Projects and Programs detail constitute the Agency's approach
and plan to meeting the requirements of the CRL. The Agency anticipates meeting its Housing
Fund targeting requirements by the end of the Compliance Period by implementing the
projects and programs listed in Table 3. Housing Fund expenditures detailed in Table 13 have
been allocated to projects and programs in accordance with targeting requirements.
1
1
37
10z
e
103
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES
Units Assisted by Housing Set Aside Fund
CRL requires that the Compliance Plan provide a recap of the number of the projects assisted
by the Housing Fund to create extremely low, very low, and low units over the past
implementation plan period (2004-OS through 2008-09). CRL also requires a recap of the
number, location, level of affordability and the amount of Housing Funds expended on multi-
family units. Table 16 summarizes these statistics:
Housing Fund Expenditures: 2004-05 through 2008-09 Table 16
Total
Very b Spent on $ Spent on b Spent on Affordable
low Inc. Very Low Inc Law Ina Low Inu Motl Inc. Motlerote Unifs Total
Praject Units Units UnHs Units Units IncomaUnits Assisted Ex endilures
PalmVillage �8 $4,171455 18 54.171A55 0 50 36 58.342.909
La Rocca Villas Senior 13 1,773.774 14 1 910.218 0 - 27 3.683.992
SagecrestSenior 3 462,994 10 L543.314 1 154,331 14 2,i60.fi39
FalconCresf 0 - 13 1639.661 80 14�90,224 93 11,�29.885
HabitattorHumanity 2 254,Ofi7 0 - 0 - 2 254.067
Catlos Ortega Villas/Country Village' 30 2,141,993 30 2,141.993 12 856,797 72 5,140,783
SagecresP ] 786.420 9 1,011.1t2 1 112,346 17 1.909,878
Califomia Villas' 9� 6,959,745 2fi 1,Bfi5.499 18 1,291 499 t41 10.116,743
LagunaPalms' 27 3,705,327 5 686.172 i6 2,195,749 48 6.587,248
Candlewootl Senior' 23 2.494,549 4 433,835 3 325.376 30 3 253 759
One �uail Place 185 262,383 16fi 235,435 33 46,803 384 544,621
DesertPointe 40 97,898 17 41,606 7 1].132 64 15fi.636
Comoliance Proarams
Acquisiron, Rehabiliation, antl Resale 2 100,364 2] 1269,599 4 271.273 33 1,641236
HomelmprovementProgram 41 235,845 14 63,987 2 11,788 57 311.020
Desert Rose 2 9,222 28 104,496 3 19,755 33 133.473
First Time Homebuyer Pmgram 0 - 3 88,821 1 72 241 a 161,062
Rental Assistance 2 22.314 0 - 0 - 2 22.314
7ofal � 492 $23.4�8.349 3B4 S1120Z201 t81 $15A64.]t5 �D5] $56t50265
ExpentliNres for programs In progres5�. ��.9� 1.08�
Total Ex entliWres §58.061.345
Low pBnt on Motl pen on q{{ortlable
Age Assistetl VL Units E S ent on VL UnILa Low Units Units Motl Units llnits Total Exp.
Unitsfor5eniars 66 84.�31.31� 29 53.88]366 4 54797�� ]1 59A98.390
Units for Families with Children 42fi $1874],032 356 513.319,835 177 $14.985.008 959 847.051.875
TOtal 492 $23,478349 389 $17,207,201 181 $ifl464.715 1A5� $56,150,265
� TM1e Falwn Crest inclutles development wsis, homebuyer subsidy cosis, antl loan receivables.
' ExpentliWres inclutle acquistion msts for Country Village antl ihe unit allocation is basetl on Ihe proposed Wrlos Otlega Villas developmen�.
' ExpentliWres include arquistion and �he unit allocaGon is basetl on tM1e proposetl Sagecrest tlevelopment.
° Pmgrams in progess Include Taos Palm Renova[ion antl HIII Property
Noles.
'These pmperties have Eeen acquiretl, antl are Eeing renovated. The Inclusionary anits were wun�etl when the properties vrere acquired.
Ex ndiNres tletailetl in [his table InGude net values inclusive of loan recievables.
^
�
�
39
104
Affordable Housing Units Constructed
During Prior Implementation Plan without Agency Assistance
�
� �1
Since fiscal year 2004-05, no affordable units featuring long term covenant restricted units
(affordable units with covenants of at least 45 years for ownership housing or 55 years for
rental housing) have been created without the use of Housing Funds.
[[�7
ios
ADMINISTRATION OF THE IMPLEMENTATION PLAN
As detailed in the introduction of this Plan, the Agency is required to produce an
Implementation Plan every five years. After adoption of the first implementation plan, a new
plan is to be adopted every five years either in conjunction with the housing element cycle or
the implementation plan cycle.
Implementation Plan Adoption Process
Each Implementation Plan must be presented and adopted at a duly noticed public hearing of
the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of
the Law. The Notice must be published pursuant to Section 6063 of the Government Code,
mailed at least three weeks in advance to all persons and agencies that have requested
notice, and posted in at least four permanent places within the Project Area for a period of
three weeks. Publication, mailing, and posting shall be completed not less than 10 days prior
to the date set for hearing.
The Agency may amend the implementation plan at any time after conducting a public hearing
on the proposed amendment.
Mid-Term Implementation Plan Review Process
At least once within the five-year term of this Implementation Plan, the Agency must conduct a
public hearing and hear testimony of all interested parties for the purpose of reviewing the
redevelopment plan and the corresponding implementation for each redevelopment project.
This hearing must take place no earlier than two years and no later than three years after the
adoption of the Implementation Plan and Affordable Housing Compliance Plan.
106
41
EXHIBIT A
Affordable Housing Glossary of Terms
Inclusionary Housinq Production
There are many ways in which the Agency may create inclusionary units that satisfy the
requirements outlined in Law Section 33413 including new construction of for-sale and rental
housing, substantial rehabilitation, and the purchase of covenants on multifamily rental
housing.
New Construction & Substantial Rehabilitation: For-sale (affordable) inclusionary units or
inclusionary multifamily rental housing may be created by assisting new construction or
providing financing for purchasers of new housing, and by substantially rehabilitating such
units per the Law definition. To be counted toward the Agency inclusionary unit need, for sale
units must be covered by a 45-year affordability covenant and rental units by a 55-year
affordability covenant.
Purchase of Covenants: The Agency may use the Housing Fund to subsidize multifamily units
that are not substantially rehabilitated or newly constructed, by the purchase of an affordability
covenant. The affordability covenants on multifamily units would restrict such units for a
period of 55 years. Such units must be occupied by and affordable to very low and low income
households. The Agency may only meet up to 50°/o of their required inclusionary unit need in
this manner. Furthermore, 50% of the covenants purchased must be affordable to very low
and low income households. Inclusionary units secured by the Agency through the purchase of
covenants, substantial rehabilitation, and new construction that are located within the Project
Area boundaries can be counted on a one-for-one basis. If the units are located outside of the
Project Area they only receive one-half (Yz) credit (counted on a two-for-one basis). Mutual
self-help housing units receive a 1/3 credit towards satisfying inclusionary unit production
requirements.
Mutual Self-help Housinp: Mutual self-help housing refers to very low or low income, owner-
occupied housing units where residents have contributed at least 500 hours of work on the unit
to ensure safe and sanitary housing. Mutual self-help housing units must be deed restricted
for at least 15 years. Each housing production unit must have a covenant recorded with the
county pursuant to Law Section 33334.3 in order to be counted.
Duration of Affordabilitv Covenants
� Prior to January 1, 2002: for no less than the period of land use controls established in the
� redevelopment plan.
io�
�
After January 1, 2002: for the longest feasible time, but not less than 55 years for rental
housing and 45 years for owner occupied housing.
Under Section 33413, rental housing units may be replaced prior to the expiration of the 55-
year period with equally affordable and comparable rental units in another location within the
City if (i) the replacement units are available for occupancy prior to the displacement of any
persons residing in the subject units and (ii) the comparable replacement units are not
developed using moneys in the Housing Fund.
Under Section 33413, owner-occupied units may be sold prior to the expiration of the 45-year
period for a price in excess of what would otherwise be allowed if the units are subject to an
equity sharing agreement or some other program that protects the Agency's investment of
Hausing Fund moneys. The Agency must deposit the excess proceeds in the Housing Fund
and within three years from the date of the sale of the units, spend funds to make affordable an
equal number of units at the same income' level as the units sold. Only the units originally
assisted by the Agency can be counted towards the Agency's obligations under Section
33413.
Affordabilitv Income and Cost Levels
Section 50052.5 of Health and Safety Code defines affordable housing cost (adjusted for
family size appropriate for unit) as:
• Extremely Low — Not more than 30% of 30% of the County median household income.
• Very Low - Not more than 30% of 50°/o of the County median household income. The
Agency's Housing Stipulation requires that rental units be calculated as not more than
25% of 50% of the County median household income.
• Low - Not more than 30% of 70% (or 30% of 60% for rental projects) of the County
median household income.
• Moderate - Not more than 35% of 110% (or 30% of 110% for rental projects) of the
County median household income.
The following tables detail affordable housing costs for rental and ownership units in Palm
Desert based on the 2009 Riverside County Area Median Income.
tos
�l
�unty Median Income ( 4 Person Household )
of County Median Income
nual Gross Income
of Income to Housing
inual Housing Cost
Housing Cost
Less: Utilities
for Monthly Rent
Rent for a 3 Bedroom UnitZ
Unfunded
Very Low
Income'
$64,500
50%
$32,250
25%
$8,063
Low
Income
$64,500
60%
$38,700
30%
$11,610
Moderate
Income
i i o°ia
$70,950
30%
$21,285
$672 $968 $1,774
$( 1p8) $108 ($108)
$564 $860 $1,666
$1,316 $1,316 $1,316
nla
' The Housing Stipulation requires the very low income rental units be calculated as 25% of 50 % Area Median Income.
` Palm Desert apartment rent survey.
Source: State Income Limits for 2009 published by the Californing Department of Housing and Community Development and
G
m
109
nm�
�unty Median Income ( 4 Person Household )
of County Median Income
nual Gross Income
of Income to Housing
inual Housing Cost
Monthly Housing Cost
Less: Property Taxes
Insurance
HOA fees
Utilities
Available for Mortgage
Qualifed Mortgage (30 year amortizing loan)
Down Payment
ToGI Affordable Home Price
1.15%
0.30%
6.50%
5A0%
i Cost of Condominiums in City of Palm Desert'
ded Gap (between affordable price and median cosq
Family Residences
i Cost of SFR ln City of Palm Desert'
State Income Limifs for 2009
Very Low
Income
$64,500
50 %
$32,250
30%
$9,675
$806
($56)
($53)
($200)
($214)
$284
$44,913
$2,364
847,277
Low
Income
$64, 500
70 %
$45,150
30 %
$13,545
$1.129
($101)
($53)
($200)
($214)
$561
$88,757
$4,671
$93,428
$233,000 $233,000
($185,723) ($139,572)
$290,000 $290,000
Moderate
Income
$64,500
110%
$70,950
35%
$24,833
$2,069
($234)
($53)
($200)
($214)
$1,369
$216,620
$11,401
$228,027
$233,000
(84,979)
�
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111
RESOLUTION N0.566
� EXHIBIT B
City of Palm Desert TABLE 1
Percen[age of Population by Racial Category 2009
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
80.06 % 90.41 %
L21% 1.36%
0.56 % 0.17 %
3.47% 2.82 %
0.17 % 0.07 %
11.14% 323%
3.38 % 1.98 %
28.84 % 8.62 %
Source: ESRI Business Analyst Onlrne
8777 % 83.07 % 83.11 %
170 % 1.58 % 1.37 %
0,43% 0.41°/ 0.45%
2.80 % 285°/ 328 %
0.00 % 0.07% 0.11 %
4.15% 8.12% 8.41%
3,16% 3.92°/ 326%
100.00 %
V 13% 1937% 21.96%
City of Palm Desert TABLE 2
Median Household Income 2000-2009
PA No. 1 PA No. 2 PA No. 3 PA No. 4 City-wide
2000 $44,080 $63,944 $50.439 $46,221 $48,144
2009 $54.319 573,805 $61.023 $58,363 $60,345
Source: ESRI Business Analyst Online
City of Palm Desert TABLE 3
Percent of Households Below City-wide Median Income 2000 8 2009
Househo�as °r� of Househoids Housaholtls % of Househoias
Total Below City-wi�e Below Chy-wide Total Below Ciry-wide Below City-witle
Households Median Income Median Income Households' Median Income Median Income
PA No. 1 9.652 5,338 55.3% 10,454 5,638 53.9%
PA Na 2 840 311 37.0 % 1,394 522 37.4%
PA No. 3 839 413 4a2 % �,252 613 49.0 %
PANo.4 4.197 2.199 52Aa 4,829 2.482 5t4%
City-witle 19,184 10,001 52.1% 2�.775 '10,803 49.6%
Na�es.
The Clty ol Palm pesetl's medlan mcome m 2000 antl 2008 Is 548,140 aod $80,345, raspec�ively_
Due �o ine use of mcome breckets. percenlages are appmximatlons
Sowce ESRI Business Analysl Onhne
�
l �
P6402/0001 / 1182170v1 112