HomeMy WebLinkAboutRes 04-21 Establish Commerical Development Low-Income Mitigation FeeCITY OF PALM DESERT
STAFF REPORT
REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO. 04- 21
AMENDING ITS RESOLUTION NO. 90-130, ESTABLISHING A
COMMERCIAL . DEVELOPMENT LOW INCOME HOUSING
MITIGATION FEE FOR ALL COMMERCIAL DEVELOPMENTS
WITHIN THE CITY OF PALM DESERT
SUBMITTED BY: TERESA L. LAROCCA, DIRECTOR OF HOUSING
DATE: MARCH 25, 2004
CONTENTS: CITY COUNCIL RESOLUTION NO. 04-21
Recommendation:
By Minute Motion, that the City Council approve Resolution No. 04- 21 ,
amending its Resolution No. 90-130 establishing a commercial
development low income housing mitigation fee for all commercial
developments within the City of Palm Desert.
Executive Summary:
Approval of this request will allow the Agency to broaden the use of the housing
mitigation fee to produce, improve, subsidize and preserve affordable housing within the
City. The original resolution restricted the use to employee rental subsidies for housing.
Discussion:
In September of 1990, Council authorized Resolution No. 90-130 establishing a
commercial development low income housing mitigation fee for all commercial
developments within the City of Palm Desert. At that time the City's Affordable Housing
Program encompassed mostly rental housing through an agreement with the County of
Riverside. Since that time, the City has ventured into many different types of assistance
for affordable housing. This includes for -sale housing, self-help housing, for -rent
housing and Acquisition, Rehab and Resale.
In keeping with the overall goals of the affordable housing program as it is designed
today, it is necessary to amend the previous resolution to broaden the use of the
housing mitigation fee to include all types of affordable housing uses. With the approval
Staff Report
Approval of City Council Resolution No. 04- 21 amending Resolution No. 90-130
Page 2 of 2
March 25, 2004
of this resolution, monies collected will be used for the purpose of producing, improving,
subsidizing and preserving affordable housing for very low and low income Palm Desert
households, defined as persons who work in Palm Desert.
A nexus study prepared in September of 1990 and adopted on September 13, 1990
identified the need to mitigate housing needs for families of very low and low income
created by commercial development. The study concluded as follows:
1. There exists a severe shortage of low and very low income housing within the
City of Palm Desert and surrounding communities.
2. Commercial development projected to occur within the City over the next 20
years will generate substantial new demand for affordable low and very low
income employee housing.
Submitted by:
Director of Housing
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Approval:
Carlos L. Orte
, City Manager
Approval:
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G:\RDA\Maria Hunt\WPDATA\LAROCCA\STFRPTS\ccresoamndg90-130..doc
RESOLUTION NO. 04- 21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT AMENDING ITS RESOLUTION NO. 90-130 ESTABLISHING A
COMMERCIAL DEVELOPMENT LOW INCOME HOUSING MITIGATION
FEE FOR ALL COMMERCIAL DEVELOPMENTS WITHIN THE CITY OF
PALM DESERT
THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. Section 3 of Resolution No. 90-130 of the City Council of the
City of Palm Desert is hereby amended to read as follows:
"Section 3. Accounting and Disbursement of Fees. Fees paid pursuant
to this resolution shall be placed in a special fund of the City of Palm
Desert and may be drawn upon from time to time by the Finance Director
of the City and the Treasurer of the Palm Desert Redevelopment Agency
and allocated and expended solely for the purpose of increasing,
producing, improving and preserving affordable housing for low and very
low income Palm Desert employee households, defined as persons who
work in Palm Desert, including without limitation, by acquiring and
disposing of real property, constructing buildings and structures, improving
real property with onsite and offsite improvements, and providing
subsidies to or for the benefit of such households."
PASSED, APPROVED AND ADOPTED this 25th day of March 2004, by
the following vote to wit:
AYES:
NOES:
ABSENTS:
ABSTAINS:
Attest:
Robert A. Spiegel, Mayor
Rachelle D. Klassen, City Clerk
P6402-0001\762542v2.doc