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Home My WebLink AboutRDA RES 575RESOLUTION NO. 575 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE REPLACEMENT HOUSING PLAN FOR SAGECREST APARTMENTS NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency ("Agency") is required to adopt a Replacement Housing Pian that details the measures the Agency will take to replace affordable housing units within four years of removal of said units ("four-year period"). Section 2. As part of the Sagecrest Apartments project ("projecY'), the Agency has proposes to remove 14 apartment units, of which 2 were available to very low, low, and moderate income households. Section 3. The Agency hereby adopts the Replacement Housing Plan (the "Plan") attached hereto and incorporated herein by this reference, which details the measures the Agency will take to replace all affordable housing units removed in connection with the project, including a description of the number of affordable housing units that were already available in the Agency's inventory of such units. when the 2 units were removed in connection with the project. Section 4. The Plan describes the affordable housing units, existing and/or approved for construction, that will be available within the four-year period to replace all affordable housing units removed as part of the project. Section 5. The Executive Director of the Agency shall have the authority to implement and administer the Plan in accordance with its terms so long as such action is not inconsistent with the Plan's intent. PASSED. APPROVED AND ADOPTED by the Palm Desert Redevelopment Agency, this 24th day of June 2010 by the following vote, to wit: AYES: BENSON, FERGUSON, KELLY, SPIEGEL, and FINERTY NOES: NONE ABSENT� NONE ABSTAIN: NONE ATTEST: RA HELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENC [This page has intentionally been left blank.] RESOLUTION NO. 575 Repl acement for the Prope 73-775 the Ci ty H ousi ng PI an rty Located at S�a n t a Ro sa W ay i n of Palm Desert :,=---✓T --=:.� /� ' � 4 ��: `,�, tf;c� ,i �i ��t i � �S'i lt� ��i� ��1 �'r.. _ , :y� FYepared for.� City of Palm Desert Redevelopment Agency 73510 Fred Waring Drive Palm Desert, CA 92260-2524 Pl�epared by: 4� 1590 D REvv Av�, Sl1 �TE 120 DAvis, CA 95618 ,UNE2010 RESOLUTION NO. 575 TABLE O F CO N TBV TS Introduction................................................................................................................................ Jr�irs fo Be Replaced ................................................................................................................ Ar�nual Income Restrictions ..................................................................................................... Location Of Replacement Housing ....................................................................................... Financing the Replacement Housing .................................................................................... Non-Applicability of Article XXXIV of the California Constitution .................................... Time iable for Replacement Housing ................................................................................... Sun�n�ary .......................... ............................................................... Aadendu�7� I- ExK�ecteu Loc�fion of incuine Restrictec� R�placement Units ............. LJ ST O F TABL6 Table I: Replacement Housing Requirements by Bedroom Size 8� Income Level .......... iable 2: Housing Eligibility by Annual Income Level .............................................................. iable 3: Affordable Housing Projects/Banked Units & Bedrooms ....................................... .............1 .............2 .............3 .............3 .............4 .............4 .............4 .............5 .............6 .....2 .....3 ..... 4 City of Palm Desert SagecresY Apartments March 2010 Rleplacement Housng Plan RESOLUTION NO. 575 INTRODUCTION lhis Kep�c�c:en�er.t Hous:ng Pl;�n !"Re�lac�n��nt I-{�using Plan") is being prepared on behalf of the I'rau�r� ues�;�1 Rcac;veiopme��t Ayerc:y � ngency'I in conjunction with the demolition of fourteen n�ulti-fGmily unit properfy and redevelo�rrient of the property currently known as the Sagecrest Apartments (the "Project"). The Project is located at 73-775 Santa Rosa Way (also known as 44200 Sar� Pc�scual Avenue) in Palm Desert, California. Attachment 1 shows the location of the Project. The Agency owns the property. �his Replacement Housing Plan (the "Plan") has been prepared by the Agency as a result of the planned removal of the 14 units described above and in order to satisfy the requirements for replc�cement housing contemplated under the Community Redevelopment Law. The Agency intc.�nds tc� rnc�ke this Replacernenf I lousing Plan available for review and comment. Ih�s Plar� desc�ibes the follow�r�g, per Conimunity Redevelopment Law ("CRL"): . lhe general location of the replacement housing (see Section D below); • An adequate means of financing the replacement housing (see Section E below�; • A finding that the replacement housing is in compliance with Article XXXIV of the California Constitution (see Section G below); . The number oi ieplacen��ent r��using units planned for construction and rehabilitation (see Section D k�el�w); Unci • The timetable for meeting the replacement housing objectives (see Section F below). ihe Agency's goal in preparing this Replacement Housing Plan is to demonstrate that providing replacement housing in accordance with the requirements of federal law and the CRL is teasible. Section 33413(a) of the Community Redevelopment Law (Health and Safety Code Section 33000, et se . requires that wher�eve� dwelling units housing persons and families of low or moderate income are destroyed or removed frorn the iow and rnoderate income housing market as part of a redevelopment project, which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided, the agency shall within four years of the destruction or removal, rehabilitate, develop, construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the c�gency. when dwelling units are removed after January 1, 2002, 100�/0 of ihe replacement dwelling �nits shall be available at c�ffordable housing cost to persons in the same or a lower income category, as 1Y�e persons displUced fron�� thosc� aestroyec� or removed units. Section 3341 "3.5 of the Community Redevelopment Law requires an agency to adopt a replacement housing plan whenever the agency executes an agreement for acquisition of real property, or an agreement for the disposition and development of property or an owner participation agreement which would lead to the destruction or removal of dwelling units from the low and moderate income housing market. The plan shall identify the impacts that a parficular redeveloprr�ent project will have or� the community's supply of low and moderate income housing City of Palm Desert Sagecrest Apartments .A�ne 2010 Replacement Housing Plan 1 RESOLUTION NO. 575 and cietail the rneasures that the agency will take to ensure that the appropriate replacement housing is produCec7 wilhin the `o�r year tin�e lin��it. ReplUcement Units must hc�v� an equal or greater number of bedrooms as the removed units. The replc�cement urtiits must k�e within the agency's jurisdiction and in siandard condition, and must be affordable to low and moderate income households, tor the longest feasible time, as determined by the agency, but for r�ot less than 45 years for ownership units and 55 years for rental units. U N ITS TO BE R�LAC� iwo of the fourteen units to be removed have been identified as affordable, low to moderate- ir�corne f�ouseholds. These units were occupied by low and moderate income tenants at the tirr�e of p�operty acq�isition and vacated on May 7, 2010 and June 3, 2010. Further, at the time of property acquisition, two units were vacant arid determined to be not habitable. Ten units were vacated following property acquisition and were not re-rented, as they were also deferrrlined to be not habitable. Iwo of the 14 dwelling units to be removed have been determined to be affordable units and, per the Community Redevelopment Law, both units shall r�e replUced with dwelling units having an equal or greater number of bedrooms. Both units to be replaced are two-bedroom units. As a result, the replacement units must consist of at least four bedroor�s. Based on the income levels of the persons displaced from the units, both of the �ep;acen��n! unifs rnust be available at affordable housing cost to very-low income households. lhe units are anticipated to be reri�oved in tlie year 2010. iherefore all replacement units must be available by 2014, within 4 years after removal of the units. Table 1 defines the replacement housing obligation by income level. The numbers under each household income category indicate the total units to be replaced and the numbers in parenthesis indicate the total number of bedrooms destroyed for each income level. TA� 1: R�LACBNHJT HOU9NG f�EL1UIRBNBVTSBY B�ROOM S�ZE� INCOMELEV� Unit Size Very-Low Income l.ow Income Moderate Incane Totals Two Bedroom 2 0 0 2 (4) (0) (0) (4) Sagecrest Apartments Replacement Housing Plan Cify of Palm Dese�'t .Lne 2010 2 RESOLUTION NO. 575 ANNUAL I NCOME RE-�TRICTIONS Califomia Health and Safeiy Cod� �ections 50079.5 and SO105 provide that the moderate, low ar�d very-low income lin�its estc�blished by the U. S. Department of Housing and Urban Development ('I�UD ) are ihe state limits for those income categories. Sections 50079.5 and 50105 direct the ueparinient of Housing and Community Development ("HCD") to publish the income limits. The following figures, shown in Table 2, are approved for use in the County of Riverside to define and determine housing eligibility by income level: T,4� 2 : HOU9NG BJGIBILJTYBYANNUALINCOMELEV� I ncome Category F�ctremely Low (30",% of Median) Very Low (50% of inedian) Low er � Meciian _ �Moaerate --- - - -- Are�� Median Income: S64.500 �URCE HCD. April "1009. 1 Person � 2 Person � 3 Person � 4 Person � 5 Person � 6 Person � 7 Person � 8 Person 14,000 ! 16,000 � 18,000 � 20,000 � 21,600 � 23,200 � 24,800 � 26,400 23,300 26,650 29,950 33,300 35,950 38,650 41,300 43,950 37,300 42,650 47,950 53,300 57,550 61,850 66,100 70,350 ' 45.150 ' S1,600 � 58,050 i 64.500 69,650 i 74,800 80,000 85,150 54.200 61.90U 69,650 77,400 ; 83,600 89,800 96,000 � 102.150 LOCATION OF R�LAC6VIBdT HOU9NG Ihe Agency has several options available to provide replacement housing, including acquisition, ; er�abilitation. new cor�struction, and the allocation of "banked" dwelling units from prior developn�ent activity. Ihe �gency hc�s F��o�siy r�r,aea or caused to be developed, affordable I�ousing projects that provide surplus dwelling units and bedroon�s that can be allocated by the Agency for future housing obligations. The Agency has a number of "banked" dwelling units/bedrooms to satisfy the replacement housing obligation. Such units together with the approved units that have not yet been constructed, (identified in Table 3 and Addendum 1) constitute a sufficient number of replacement units. As described in Table 3, the following affordable housing units/bedrooms have been developed, or c�re pianned to be developed by 2010, within the Agency's jurisdiction. All such units are/will be Uvcailable at an atfordable housing cost to low or moderate income households and subject to a restrictive covenant ensurinc� such affordability for not less than 55 years for rental units and 45 years for owner �ccu�ied ��;i�s. Addendum l, at the end of the Plan, outlines the locations or proposed locations oi thes� aftordabl� units. City of Palm Desert Sagecrest Apartments .,�ne 2010 Rieplacement Housng Plan 3 RESOLUTION NO. 575 T� 3: AFFO RD ABLE H O U 9 N G PRO.KTSI BAN FC� U N I TS 8� B� RO O M S Very L�ow Moderate U nit Size I ncome Low I ncome I ncane Net Bankea (F�c�stiny) Un�ts N� of Beclrooins 3/9 0/0 10/20 FYojects Unit�Bedroomsto be provided U/0 (Approved but not yet constructed) 0/0 23/32 Required Replacement Units/ No. of Bedrooms 2/4 0/0 0/0 FINANCING THE R�LACBVIBVT HOU9NG ii�e Agency is authc;�izec: to r�narce its act:vities witr� rnoneys from various sources, including the Cify of f'c�ln� D�serf �'are of C:u�if�rn�u Ur:it�u States Government, property tax increment funds, interest income: Agency r�onds, or otner c�vailable sources. 1 he existing units to be used for replacement units, have been acquired, constructed or rehabilitated with various funding sources including tax increment funds; below market rate tinancing through the sale of tax exempt mortgage revenue bonds; redevelopment twenty percent set-aside funds; and developer funds. Funding for ihe development of affordable housing units identified in the preceding section as 'approved but not yet constructed' may utilize a variety of sources including: State or Federal grants and loans, tax increment funds; below market rate financinq through ihe sa��e of tUx exenipt n��rfgage revenue bonds; redevelopment twenty percent scr-aside func�s: and dev�loper funds. Spe�ific funding for future replacement housing units may be !hrough the use of Uny combinc�tior� of fhe above described methods and sources. As replacement units, ir�e Agency may cour�t units developed by private developers pursuant to the City's Density Bonus program provided that units are subject to a restrictive affordable housing covenant enforceable by the Agency. N O N-APPLJ CABI LJ N O F ARTI CLE XXXI V O F TH E CAU FO RN I A CO N STI TU TI O N It is hereby f�und and determined fhaf the replacement housing identified in this replacement I�ousing plar� c��c;s nor re�7uire app�ovc]! �f the voters of the City of Palm Desert pursuant to Ariicie XXXIV of tl�e Ccalif��n�U � onst;tutio��. A porfion of the hous+ng identified in this replacement ho�sing plan is not subject to the voter Uppr�vc�l requirements of Article XXXIV because such housing is or will be privately owned, not exempt from real properfy taxes by reason of public ownership, and not financed with direct long term financing from a public body. In addition, the Agency will not ' develop. construct, or acquire" housing as described in Section 1 of Arficle XXXIV of the California Cor�stitution because in providing assistance to developers, the Agency will only monitor construction or rehabilitation of the project and compliance with conditions of the assistance to tne extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions. Sagecrest Apartments City of Palm Desert Replacement Housng Plan ..trne 2010 4 RESOLUTION NO. 575 TI M E TABLE FO R R�LAC BVI BV T H O U SI N G I he Agency has provided a considerable degree of continuing support in the construction ar�d/or rehabilitation of replacement housing units sufficient to address the replacement requirements of affordable housing discussed in this Plan. It is the intent of the Agency to use banked" previously developed housing units as well as housing units that have been approved but not yet constructed to fulfill its replacement housing requirement. Tl�e Ac�ency acknowledc�es thaf replacement housing units must be affordable in the same, or �ower inc.orY�e catec�ories thc�n fhose being removed from the low and moderate income ho��sing n�arket c�nd will ensuie that this result is realized. Further, Gny units developed as replacement housing units will be completed within four years and will �en�c�in income-restricted for the appropriate period as required by law. SUMMARY l; � summc�ry a tofal of 28 bedrooms in 14 dwelling units will be removed; four bedrooms in two ;:�fiordrb�e dwell�ng units will b� repiaced. Based on tl�e 100°o rep�acen�ent criteria by income level, the Agency through a variety of �eplacenient housing opfions will replace the four bedrooms affordable to low to moderate �r�corne households by using previously developed housing units as well as units that have been approved but not yet constructed. The result of the above actions will yield the required number of replacement dwelling units as mandated under Community Redevelopment Law. The Agency recognizes its legal and community responsibilities in this matter and will make a sincere, good-faith effort to accomplish these goals. The Agency retains its option to use other approaches and sirc�tegies nei discussed hcrein to fulfill its repiacement housing obligations in a timely manner. City of Palm Desert Sagecrest Apariments ..�ne 2010 R�eplacement Housng Plan 5 RESOLUTION NO. 575 AD D BV D U M 1- EXPE.�T� LO CATI O N O F I N CO M E-RESf Po CT� I�LACBVI BV T U N I TS lhe iollowing are the actual cna expected locations of incorne-restricted units which will be �sed to n�eet the Agency's replacernent obligation of two units with not less than four bedrooms. Bedrooms & Income: Replacemerrt Scheduled Loca6on: Completion: Very Low Incorr�e Lee Carel ar�d Sandra Carel 73-735 Santa Rosa way Ar:d Habitat for Humanity 43-101 Virginia Street And Habitat for Humanity 74-065 Goleta Avenue Completed Completed June 30, 2010 '! is ihe adopted policy o� �I,e Agency te promote the assimilation of affordable housing fhroughout the City to the mGximum extent possible in order to avoid concentrations of lower- incom� housing in ccrtain neighborhoods. Sagecrest Apartments Replacement Housng R'an City of Palm Desert .une 2010 �