HomeMy WebLinkAboutLegislative Review - SB 654 - Redevelopment Agencies' Housing FundsCITY OF PALM DESERT
OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: APPROVE THE PALM DESERT LEGISLATIVE REVIEW
COMMITTEE'S RECOMMENDATION TO PROVIDE A LETTER
OF SUPPORT FOR SB 654 (STEINBERG).
SUBMITTED BY:
DATE:
CONTENTS:
Recommendation
Stephen Y. Aryan, Risk Manager
February 23, 2012
Recommended Letter of Support
By Minute Motion, approve the recommended letter of support for SB 654
(Steinberg).
Committee Recommendation
On January 31, 2012, the Palm Desert Legislative Review Committee recommended
that the City Council approve a letter of support for SB 654 (Steinberg).
Background
Senate Bill 654 (Steinberg) would allow a city, county, or city and county of a dissolving
redevelopment agency (RDA) to retain the funds on deposit in the agency's low and
moderate income housing fund and expand the types of agency loans from the host city
or county that are consider enforceable obligations.
More than 98,000 units of affordable housing have been constructed or rehabilitated
through redevelopment since 1993, more than 1,500 affordable units created in Palm
Desert alone. This helps balance housing to jobs.
One such local project to benefit from SB 654 is the Carlos Ortega Villas, a proposed 73
unit affordable senior project in Palm Desert. The project is being designed to be Net
Zero Energy and earn LEED Silver certification at minimum. The location is perfect for
affordable housing answering the on -going demand for senior housing in the desert. It is
an infill project benefiting from walking distance to amenities such as retail, clinics,
parks and transportation.
Staff Report: SB 654 (Steinberg)
February 23, 2011
Page 2 of 2
Fiscal Analysis
The passage of SB 654 (Steinberg) is significant as it would retain the funds on deposit
in the former Agency's low and moderate income housing fund.
Submitted By:
Steplon Y. A y6n, Risk
Approval:
Paul S. Gibson, Director of Finance
CITY COtJNCIL ACTION
APPROVED � DENIED
RECEIVED
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MEETING DATE 2-2J-<" I
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NOES:
ABSENT:
ABSTAIN: c4c
VERIFIED BY:
Original on File with City Clerk's C 14 ce
February 23, 2012
The Honorable Brian Nestande
California State Assembly
73-710 Fred Waring Drive, Ste.116
Palm Desert, CA 92260
Dear Assemblyman Nestande:
On behalf of the City of Palm Desert, I am pleased to support SB 654 (Steinberg), which
would specify that the balances in redevelopment agencies' housing funds shall be
used for housing construction and other housing -related purposes. This bill clarifies
conflicting provisions of last year's AB 26x and has received bi-partisan support.
More than 98,000 units of affordable housing have been constructed or rehabilitated
through redevelopment since 1993, more than 1,500 affordable units created in Palm
Desert alone. This helps balance housing to jobs. Without this funding mechanism,
employees will be forced into longer commutes, an outcome directly at odds with the
goals of AB 32 and SB 375.
Preserving the housing balances for their original intended use will allow thousands of
developments in the pipeline to be completed. One such project is the Carlos Ortega
Villas, a proposed 73 unit affordable senior project in Palm Desert. The project is being
designed to be Net Zero Energy and earn LEED Silver certification at minimum. The
location is perfect for affordable housing answering the on -going demand for senior
housing in the desert. It is an infill project benefiting from walking distance to amenities
such as retail, clinics, parks and transportation.
SB 654's provisions are consistent with Governor Brown's original 2011 proposal to
dissolve redevelopment agencies, in which he recommended these funds be preserved
for housing development. His proposed 2012-13 budget also assumes these monies
will remain in the housing fund.
SB 654 Correspondence
February 24, 2012
Page 2of2
Although not a substitute for the $1 billion in annual funding lost through redevelopment's
demise, SIB 654 will permit completion of some pipeline projects. The resulting jobs and
affordable places to live are desperately needed by members of our community and others
facing rising rents and income challenges.
Thank you in advance for your support of SIB 654.
Sincerely,
Robert A. Spiegel
Mayor
cc: The Honorable Darrell Steinberg, California State Senate President pro Tern
City Council
John M. Wohlmuth, City Manager
Paul S. Gibson, Director of Finance
Stephen Y. Aryan, Risk Manager