HomeMy WebLinkAboutRes 496 Third Five-Year Implementation Plan/Affordable Housing Strategy & Compliance PlanPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPTION OF THE THIRD FIVE-YEAR IMPLEMENTATION PLAN AND
AFFORDABLE HOUSING COMPLIANCE PLAN FOR THE PALM DESERT
REDEVELOPMENT AGENCY'S PROJECT AREAS
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
CATHERINE WALKER, SENIOR MANAGEMENT ANALYST
DATE: NOVEMBER 18, 2004
CONTENTS: AGENCY RESOLUTION NO. 496
THIRD FIVE-YEAR IMPLEMENTATION PLAN
HOUSING COMPLIANCE PLAN
Recommendation:
By Minute Motion that the Agency Board approves Resolution No. 496 , adopting a
Five -Year Implementation Plan for the Agency's Project Area No. 1 (Original and
Added Territory), Project Area No. 2, Project Area No. 3, and Project Area No. 4; and
adopting the Affordable Housing Compliance Plan, and making findings that the
Agency may meet its affordable housing requirements in the aggregate amongst all
of the Agency's Project Areas.
Discussion:
In 1993, the State of California enacted Assembly Bill 1290 adding Section 33490 to the California
Redevelopment Law. Section 33490 of the California Community Redevelopment Law, Health and
Safety Code Section 33000 et seq. ("Law"), requires this Implementation Plan to include the following:
• Specific Agency goals and objectives for the Project Areas;
• Specific programs, potential projects, and estimated expenditures proposed by the Agency over
the five-year planning period; and
• An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight
within the Project Areas and improve and increase the supply of housing affordable to very low,
low, and moderate income households.
The Law also requires that this Implementation Strategy address the Agency's affordable housing
production and replacement housing needs and achievements. These items are specifically
addressed in the Housing Component ("Affordable Housing Plan and Strategy Compliance Plan").
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).
Both Five -Year Implementation Plans cover the four (4) adopted redevelopment project areas that
encompass an estimated 11,771 acres of the City's incorporated territory. Additionally, pursuant to
the requirements of the 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.
Staff Report
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This Third Five -Year Implementation Plan serves as a blueprint for current and future Agency
activities to eliminate blight and the Agency's implementation of its low and moderate income housing
responsibilities. The Implementation Strategy is divided into two separate components; a
Redevelopment Component and a Housing Component. The Redevelopment Component: 1) reviews
the goals and objectives of each Redevelopment Project Plan; 2) identifies the Agency's strategy to
achieve these goals and objectives; 3) presents the projects, programs and expenditures (other than
those relating to low and moderate income housing) that have been developed as a means to attain
the goals and objectives; and 4) describes how the goals and objectives, projects, programs and
expenditures will eliminate blight within the Project Area. Additionally, Pursuant to Section 33490 of
the Law, an implementation plan must explain how the components of the plan will implement various
requirements regarding low and moderate -income housing. Generally, the goals, activities and
expenditures included in the Redevelopment Component of the Implementation Strategy do not
implement the housing requirements of the Law. The activities that do implement these requirements
are contained in the Housing Strategy. The Housing Strategy shows how the Agency's goals and
objectives for low and moderate income housing preservation and production will be implemented and
how the statutory requirements for the set -aside and expenditure of tax increment revenues for
housing purposes will be met.
The Implementation Strategy is a general statement of "direction" rather than an "unalterable course
of action". It was prepared to set priorities for redevelopment activities within the redevelopment
project areas for the five-year period covered by the plan and incorporates then currently known
financial constraints in developing a program of activities to accomplish essential near -term
revitalization efforts. However, new issues and opportunities are commonly encountered during the
course of administering the redevelopment plans during the five-year period. Therefore, the
Implementation Strategy may be amended, if necessary, to effectuate its purposes.
REDEVELOPMENT ACTIVITIES,
The Third Five -Year Implementation Plan (provided under separate cover) has been prepared as a
composite plan for 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). It contains goals
and objectives for each project area, an assessment of conditions of blight, and a proposed five-
year program of projects, projected resources and expenditures. Projects and programs anticipated
to address redevelopment efforts include:
Proiect Area No. 1 (Orioinal and Added Territory):
Agency Projects
• Business Enhancement Program
• Portola Avenue Bridge construction
• Living Desert parking lot improvements
• Desert Willow Hotel construction
• Frontage Road infrastructure improvements
• Acquisition of the San Marino property
• Acquisition of 12 Acres at Entrada del Paseo and
Development
Bond Funded Projects
• College of the Desert Public Pool
• Construction of the Catalina Recreation Center
• Infrastructure Improvements to El Dorado Street
• Undergrounding of utilities
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• Palms to Pines Central Infrastructure Improvements
• Palms to Pines West Infrastructure Improvements — West Highway 111
• Landscape improvements throughout Project Area
• Fred Waring Drive infrastructure improvements
• 12-Acres — Entrada del Paseo — Design, Construction, Development and
Implementation of Palm Desert Visitors Center
Proiect Area No. 2:
Agency Projects
• Desert Willow Pads
• CVWD Desert Willow
• Land Acquisition — Open Space
Bond Funded Projects
• Landscape Improvements
• Desert Willow Improvements
Project Area No. 3:
Agency Projects
■ 42nd Avenue Sidewalks
• Sewer improvements on Merle
■ Perimeter Landscaping
• Soccer Park
• El Dorado
Proiect Area No. 4:
Agency Projects
■ Fred Waring Drive beautification, widening and wall construction
• Construction of Freedom Park
• Construction of CVAG interchanges
• Warner Trail storm drainage improvements
• University of California Riverside Graduate Facility
■ Underground unsightly utilities
AFFORDABLE HOUSING ACTIVITIES
The Five -Year Implementation Plan -Housing Component (2004/05 through 2008/09) and Ten -Year
Affordable Housing Compliance Plan (2004/05 through 2013/14) have been jointly prepared as the
Affordable Housing Plan and Strategy intended to address the demand for very low, low and
moderate income housing and better utilize both physical and financial resources available. This
strategy is focused on meeting or exceeding the inclusionary housing unit production requirements
of California Community Redevelopment Law ("Redevelopment Law"), the Stipulation regarding
affordable housing, and the Regional Housing Needs Allocation (RHNA) new construction figures.
Community Redevelopment Law
The Housing Strategy presents a summary of the Agency's affordable housing programs. 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 moderated income persons or over the next ten years (fiscal years 2004/05 through 2013/14)
and until the termination of the Redevelopment Plans. The Agency's efforts to produce affordable
housing over the last 10 years (1994/95 through 2003/04) have resulted in the Agency exceeding
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their 10-year affordable housing unit requirements.
The Agency's prior 10-year inclusionary housing unit need was established by a detailed review of
housing units built in the Project Areas from adoption through June of 1994 and projections of units
to be built from July of 1994 through June of 2004. It was estimated that the prior 10-year unit need
was for 868 affordable housing units of which 354 were required to be specifically restricted for very
low-income households. During this period, the Agency successfully created or facilitated the
restriction of 1,349 units affordable to low and moderate -income households with 594 of these
reserved for very low income households. The Agency's 10-year production of affordable units has
created a surplus of 481 units, which Redevelopment Law allows the Agency to carry over to the
next 10-year period (2004/05 - 2013/14). Additionally, the Agency is currently developing and/or
supporting private projects that will result in the restriction of 134 new affordable units.
Projections for the current 10-year period, 2004/05 through 2013/14 has established an inclusionary
housing unit need of 899 affordable units, of which 361 must be restricted as affordable to very low-
income households. The 899-unit figure does not account for the Agency's carry over units and
those new units currently underway. Therefore, after accounting for these credits and units
underway, the Agency's remaining 10-year unit need is for 284 affordable units, 95 of which must be
restricted for the very low income.
Stipulation
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 Westem 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 the
Case (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. Current accounting indicates a Stipulation Production need of 1,205 affordable units by
2006. The Agency has provided 1,152 units leaving a deficiency of 53 units, which must be produced
by 2006.
Housing Element RHNA Housing Units
The Housing Element of the City of Palm Desert General Plan establishes a housing program that
sets a 5-year schedule to achieve goals and objectives. The Housing Element identifies suitable
sites for the development of housing units, quantifies the number of units to be created by income
level, and estimates the amount of funds available for housing programs to meet the RHNA figures.
Additionally, the Housing Element identifies additional policies and programs to meet the housing
needs of Palm Desert. Current RHNA housing unit numbers cover the period of 1998 through 2005.
The total unit need for this period is 443 units of which 229 must be provided for very low, low and
moderate income persons or households. To date the City has provided 127 units leaving a
deficiency of 102 units to be provided during the next 13 months.
Housing Programs and Projects
The City and Agency will continue to be proactive in ensuring that affordable housing is developed
within the four Redevelopment Project Areas and citywide. Projects and programs anticipated to
address the City and Agency's housing responsibilities include:
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• Affordable Housing Proiects underway: Palm Village Apartments, -Substantial Rehabilitation
and reconstruction of 12 units and construction of an additional 24 units of which all are to be
two -bedrooms. Self Help Housing -Merle Street — will produce 14 three -bedroom ownership
dwellings, all reserved for very low-income households.
• New Construction of Ownership Units: Construction of 95 large family single-family homes on
an 18-acre site. The 3 and 4 bedroom homes will be reserved for low and moderate -income
households.
• Development of Senior Citizen Housina: The Agency will pursue the development of 26 new
senior housing units within the community. This project is targeted to reserve 13 affordable units
for the very low income and 13 units for the low-income senior.
• Sinale-Familv Rehabilitation: The Agency will continue its successful single-family rehabilitation
program. It is estimated that 30 units of affordable housing will be produced during the next five
years.
• Multi-familv Rehabilitation: The Agency will purchase and rehabilitate suitable rental properties,
thereby providing affordable units. Thirty percent of the total number of units are required to be
for very low and low income of which not less than 50% will be very low-income affordable
• Provide Developer Incentives for Affordable Housing — The Agency will provide financial
assistance were necessary and appropriate to secure restricted covenants on privately
development new single-family and multi -family housing units.
Programs identified in the City's Housing Element that are anticipated for implementation during the
next ten year period that are currently under development by Agency staff are:
• Mortaaae Subsidy Proaram - Very low, low and moderate -income owners of single-family homes,
condominiums and mobile homes may receive assistance if their mortgage payment exceeds
30% of their income. Assistance will be provided directly by the Redevelopment Agency. In
exchange for the assistance, the homeowner will be required to enter into a recorded agreement
with the Agency assuring affordability of the home for up to 45 years.
• Rental Subsidy Proaram - Owners of single-family homes, condominiums, mobile homes or
apartments who rent to very low, low, and moderate -income tenants may receive direct rental
payment assistance from the Agency. The owner must, in exchange for the assistance, enter into
a recorded agreement with the Agency assuring affordability of the rental units for up to 55 years.
• Homebuvers Proaram - The Agency will provide assistance to very low, low, and moderate
income persons in the form of low interest loans to be applied to down payment, non -recurring
closing costs, reduction of the interest rate on the first trust deed, or any other cost associated
with the purchase of a home.
AGGREGATION OF HOUSING UNITS AMONG THE PROJECT AREAS
Consistent with the Law, the Affordable Housing Plan and Strategy provides for the Agency to adopt a
policy allowing it to meet it's affordable housing production obligation in the aggregate amongst all of
the Project Areas, pursuant to the Agency's finding that based, on the nature of the ethnic and
economic make-up of the City and the Project Areas, the aggregation will not cause or exacerbate
racial, ethnic, or economic segregation. According to data obtained from the Mapinfo/Anysite
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database, the City of Palm Desert is 88.2% white; 1.1 % Black; 2.25% Asian; and approximately 6.5%
of Palm Desert is of some other race. Included within the racial categories are persons of Hispanic
origin equaling 20.47%. The distribution of racial and ethnic groups is further detailed by project area
in Table 1 below. The median family income and percentage of families living below the median
income for the City of Palm Desert is provided for each Project Area and the City itself on Table 2.
The table provides income characteristics for both 2000 and 2004. The percentage increase of
families in each Project Area with incomes below the City's median income from 2000 through 2004 is
consistent with the increase for the City itself.
Total Population
White Alone
Black Alone
American Ind/Alask
Asian Alone
Hawaiian/Pac. Island
Other Race Alone
Two or More Races
Total
Persons of Hispanic
Hispanic
Origin (Any Race)
26.55%
PA No. 1 PA No. 2 PA No. 3 PA No. 4 Palm Desert
25312 2306 2573 10500 58587
84.61% 92.76% 91.26% 87.81%
1.12% 1.21 % 1.44% 1.40%
0.56% 0.17% 0.35% 0.35%
2.71 % 2.04% 2.10% 2.11%
0.15% 0.04% 0.00% 0.06%
8.40% 2.39% 2.76% 5.62%
2.45% 1.39% 2.10% 2.65%
100.00% 100.00% 100.00% 100.00%
12.10%
88.19%
1.10%
0.41%
2.25%
0.09%
5.84%
2.10%
100.00%
16.36% 18.70% 20.47%
Area No. 1 Area No. 2 Area No. 3 Area No. 4 City of Palm Desert
Median Income
2000 $44,3431 $63,8001 $50,171 $46,5561 $46,785
2004 $47,743 $69,326 $53,37$50,793 $50,594
% of Households below City of Palm Desert Median Income
2000 50.62%
2004 51.93%
33.50%I
34.75%
45.53%
47.11%
48.73%
49.31%
48.29%
49.44%
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ON FILE IN THE CITY CLERK'S OFFICE:
Five -Year Implementation Plan
Affordable Housing Plan and Strategy
Submitted by:
J net oore
H mg Authority Administrator
Department Head:
�t L PI/6p—)
Dave Yrigoy "
Director of Redevelopment/Housing
Carlos L. Orteg
xecutive Director
Catherine Walker
Senior Management Analyst
Approval:
McCarthy
edevelopment
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RESOLUTION NO. 496
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY ADOPTING A FIVE-YEAR IMPLEMENTATION
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, Section 33490(a)(1)(A) of the California Community
Redevelopment Law, Health and Safety Code 33000 et.seq. ("Law") requires all
redevelopment agencies to adopt an Implementation Plan every five years,
following a duly noticed public hearing, and
WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan
contain the 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
project areas and implement the requirements of Sections 33334.2, 33334.4,
33334.6, and 33413 of Law, and
WHEREAS, pursuant to Section 33490 of the Law, the Palm Desert
Redevelopment Agency ("Agency") has prepared a 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, contained herewith as Exhibit A, and
WHEREAS, 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 racial, ethnic or economic segregation, and
WHEREAS, the Agency held, on November 18, 2004, 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
WHEREAS, substantial evidence has been presented to the Agency which
demonstrates that:
A. The population of the City of Palm Desert is 88.19% white; 1.1% Black;
20.47% Hispanic; 2.25% Asian; and approximately 6.34% of the Palm
Desert population is of some other race. The distribution of racial and
ethnic groups is further detailed by Project Area in the attached Exhibit 1.
The data provided in Exhibit 1 demonstrates that the racial makeup of
each Project Area, with the exception of Project Area No. 2, is like that of
RESOLUTION NO.496
the City itself. However it cannot be assumed that racial, ethnic or
economic segregation has developed or will be exacerbated. The
population of Project Area No 2 is 92.76% white; 1.21% Black; 12.10%
Hispanic; 2.04% Asian; and approximately 2.6% of Project Area No. 2 is of
some other race. As Project Area No. 2 has the smallest current
population of any Project Area and the majority of developable land for
housing of any Project Area 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.
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 Exhibit 2. This exhibit details the
income characteristics for both 2000 and 2004 populations. The
percentage increase of families in each Project Area with incomes below
the City's median income from 2000 through 2004 is consistent with the
increase for the City itself, with the exception of Project Area No. 2. As
Project Area No. 1 (Original and Added Area), 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 clearly evident that the aggregation of units 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
estimated 2,767 units can be constructed. Many of these units would be
reserved for very low, low and moderate income families. In fact,
aggregation will have little effect in Project Area No. 2 as most housing is
to be developed in this Project Area and the effect of such development
will be to more evenly distribute race, ethnicity and income.
C. Each Project Area is of a different size and shape, 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 2,767 units can be constructed. Project Area No. 1
(Original and Added Territory) is second with a potential 777 units, Project
Area No. 3 follows with 554 potential units and Project Area No. 4 has the
potential for an additional 76 units. The remaining units to be constructed
in Project Area No. 1 (Original and Added Area), Project Area No. 3 and
Project Area No. 4 will continue to mimic the racial, ethnic and income
characteristics of the City and Project Area. Project Area No. 2 which has
the vast amount of potential units will see the most significant change in
its racial, ethnic and economic structure. 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.
2
RESOLUTION NO.496
WHEREAS, the Agency seeks more flexibility to assist affordable housing units
in various areas within 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
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.
Adopted at the regular meeting of the Palm Desert Redevelopment Agency on the
18th day of November, 2004, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Robert A. Spiegel, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
3
RESOLUTION NO. 496
Total Population
White Alone
Black Alone
American Ind/Alask
Asian Alone
Hawaiian/Pac. Island
Other Race Alone
Two or More Races
Total
Persons of Hispanic
Hispanic
PA No. 1 PA No. 2
25312 2306
84.61%
1.12%
0.56%
2.71%
0.15%
8.40%
2.45%
100.00%
Origin (Any Race)
26.55%
92.76%
1.21%
0.17%
2.04%
0.04%
2.39%
1.39%
100.00%
12.10%
PA No. 3
Area No. 1 Area No. 2 Area No. 3
Median Income
2000 $44,3431 $63,8001
2004 $47,743 $69,326
2573
91.26%
1.44%
0.35%
2.10%
0.00%
2.76%
2.10%
100.00%
16.36%
Area No. 4
PA No. 4 Palm
10500
87.81%
1.40%
0.35%
2.11%
0.06%
5.62%
2.65%
100.00%
18.70%
$50,1711 $46,5561
$53,379 $50,793
% of Households below City of Palm Desert Median Income
2000 50.62%I
2004 51.93%
33.50%I
34.75%
45.53%I
47.11%
48.73%
49.31
Desert
58587
88.19%
1.10%
0.41%
2.25%
0.09%
5.84%
2.10%
100.00%
City of Palm Desert
$46,785
$50,594
48.29%
49.44%
20.47%
4
Palm Desert RedevelopmentAgency
Third Five -Year Implementation Plan
(FY 2004.05 through 2008-09)
• Project Area No. 1
• Project Area No. 2
• Project Area No. 3
• Project Area No. 4
Adopted , 2004
Palm Desert RedevelopmentAgency
73-510 Fred Waring Drive
Palm Desert, CA 92260
RSG
INTELLIGENT COMMUNITY DEVELOPMENT
ROSENOW SPEVACEK GROUP INC.
309 West 4th Street
Santa Ana, California 92701-4502
Phone: (714) 541-4585
Fax: (714) 541-1175
E-Mail: infoewebrsa.c;om
City of Palm Desert
REDEVELOPMENT AGENCY BOARD
Robert A. Spiegel, Chairperson
Buford Crites, Vice Chairperson
Jean M. Benson, Agency Member
James Ferguson, Agency Member
Richard Kelly, Agency Member
REDEVELOPMENT AGENCY STAFF
Carlos L. Ortega, Executive Director
William Strausz of Richards Watson & Gershon, AgencyAttomey
Justin McCarthy, Assistant City Manager/Redevelopment
Paul S. Gibson, Finance Director/Treasurer
David L. Yrigoyen, Director of Redevelopment & Housing
Janet M. Moore, Housing Authority Administrator
Rachelle D. Klassen, City Clerk
Dennis M. Coleman, Redevelopment & Housing Finance Manager
Jose Luis Espinoza, Assistant Finance Director
Lauri Aylaian, Redevelopment Manager
Catherine Walker, Senior Management Analyst
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
Table of Contents
Introduction 1
Contents of the Implementation Plan 2
Background 2
Project Area No. 1 (Original and Added Territory) 7
Anticipated Planning Period Projects and Programs 12
Five -Year Budget 16
Project Area No. 2 18
Anticipated Planning Period Projects and Programs 22
Five -Year Budget 25
Project Area No. 3 27
Anticipated Projects and Programs 29
Five -Year Budget 31
Project Area No. 4 33
Anticipated Projects and Programs 36
Five -Year Budget 38
Appendices
Appendix 1— Affordable Housing Compliance Plan
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
Introduction
This document is the third Five -Year Implementation Plan for the Palm Desert Redevelopment
Agency (the "Agency") of the City of Palm Desert (the "City") for fiscal years 2004-2005 through
2008-2009. This is the Agency's third implementation plan prepared since the enactment of
Assembly Bill 1290 which amended the California Redevelopment 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 December 30, 1994
with subsequent implementation plans adopted each 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
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 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 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.
ROSENOW SPEVACEK GROUP, INC. PAGE 1
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
CONTENTS OF THE IMPLEMENTATION PLAN
Section 33490 of the California Community Redevelopment Law ("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 Project Areas and will improve and increase the supply of
housing affordable to very low, low, and moderate income households.
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 Compliance Plan, which is found at the end of this Implementation Plan.
Background
The Agency was established pursuant to the California Community Redevelopment Law, Health
& Safety Code Section 33000 et seq. (the "Law"). The City Council adopted Ordinance No. 53
on October 24, 1974, which activated the Agency. The Agency is governed by a five (5)
member board, which consists of all members of the City Council. The Mayor, who acts as
Chairperson of the Agency, is appointed by the City Council. As previously stated, the Agency
has four (4) adopted redevelopment project areas encompassing an estimated 11,771 acres of
the City's incorporated territory. The Agency's four (4) redevelopment project areas are Project
Area No. 1 (the Original and Added Territory), Project Area No. 2, Project Area No. 3, and
Project Area No. 4 (collectively referred to as the "Project Areas"). Over the past 28 years, the
Agency has accomplished numerous redevelopment, development, and infrastructure projects
that have revitalized many properties within all of its Project Areas.
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). Both Five -Year Implementation Plans cover the four (4) adopted redevelopment
project areas that encompass an estimated 11,771 acres of the City's incorporated territory.
Additionally, pursuant to the requirements of the 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.
ROSENOW SPEVACEK GROUP, INC. PAGE 2
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
A map of the Project Areas is presented on Figure 1 below:
Palm Desert Redevelopment Agency
Project Areas
w
ROSENOW SPEVACEK GROUP, INC. PAGE 3
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
PLAN LIMITATIONS
Each Redevelopment Project Area is subject to its
the Law. These limitations are summarized below.
Table 1 summarizes the time and financial limits in
Area.
TABLE 1
PALM DESERT REDEVELOPMENT AGENCY
own time and financial limits as required by
the Redevelopment Plans for the Project
_R
ent Plan Lnations
Plan Limits
Date of Adoption
Effectiveness of Plan/1/2
Tax Increment
Bonded Debt Limit /3
Limit to Incur Debt
Limit on Receiving Tax
Increment and Paying
Indebtedness/2
Original Area
July 16, 1975
July 16, 2016
$758, 000, 000
None
Eliminated/4
July 16, 2026
Added Territory
November 25, 1981
November 25, 2022
$500,000,000 /3
$200,000,000 /5
Eliminated/4
November 25, 2032
Project Area No. 2
July 15, 1987
July 15, 2028
$800,000,000/5
$150,000,000/5
Eliminated/4
July 15, 2038
Project Area No. 3
July 17, 1991
July 17, 2032
360,000,000/3
100, 000, 000/3
Eliminated/4
July 17, 2042
Project Area No. 4
July 19, 1993
July 19, 2034
$200,000,000 /3
$600,000,000 Gross
$135, 000, 000/3
Eliminated/4
July 19, 2044
1. Pursuant to Assembly Bill 1290 all pre 1994 redevelopment projects were required to adopt specific time limitations. On December 8, 1994 the City
Council adopted the required Ordinances establishing such limits for each Project Area.
2. Pursuant to Senate Bill 1045 (Statutes of 2003, Chapter 260), which was enacted into law in September of 2003, the City Council will have the ability to
extend each Project Areas Plan's effectiveness for the time period to collect tax increment by one year.
3. Tax increment cap and/or bonded debt limit is exclusive of amounts paid to taxing agencies and exclusive of amounts paid directly or indirectly by the
Agency or any taxing entity to finance the acquisition of land, construction of buildings, facilities, structures or improvements for such taxing agencies.
4. Pursuant to Senate Bill 211(Statues of 2001 Chapter 741) the City Council adopted the required Ordinance amending the Project Areas
Redevelopment Plans to eliminate the time limits to incur debt.
5. Amounts adjusted annually by Consumer Price Index (CPI)
BLIGHTING CONDITIONS
Redevelopment projects are established to remedy conditions of blight as defined by the Law
that is in effect at the time a redevelopment project is adopted. The Law's definition of what
constitutes blight has changed substantially since the Project Areas were established in 1975,
1981, 1987, 1991 and 1993. The Law's current blight definition is set forth below:
■ Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it is unsafe or
unhealthy for persons to live or work. These conditions can be caused by serious
building code violations, dilapidation and deterioration, defective design or physical
construction, faulty or inadequate utilities, or other similar factors.
• Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings.
Factors that prevent or substantially hinder the economically viable use or capacity of
buildings or Tots. This condition can be caused by a substandard design, inadequate
size given present standards and market conditions, lack of parking, or other similar
factors.
ROSENOW SPEVACEK GROUP, INC. PAGE 4
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
• Incompatible Uses. Adjacent or nearby uses that are incompatible with each other and
which prevent the economic development of those parcels or other portions of the
project area.
• Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownership. The
existence of subdivided lots of irregular form and shape and inadequate size for proper
usefulness and development that are in multiple ownership.
• Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or
stagnant property values or impaired investments, including, but not necessarily limited
to, those properties containing hazardous wastes that require the use of agency
authority as specified in Article 12.5 (commencing with Section 33459).
• High Business Turnovers and Vacancies/Low Lease Rates/Abandoned
BuildingsNacant Lots. Abnormally high business vacancies, abnormally low lease
rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area
developed for urban use and served by utilities.
• Lack of Neighborhood Commercial Facilities. A lack of necessary commercial
facilities that are normally found in neighborhoods, including grocery stores, drug stores,
and banks and other lending institutions.
• Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess
of bars, liquor stores, or other businesses that cater exclusively to adults, which has led
to problems of public safety and welfare.
• High Crime Rates. A high crime rate that constitutes a serious threat to the public
safety and welfare.
The Law also characterizes inadequate public improvements as blight when one or more of the
above physical conditions and one or more of the economic conditions are also present.
Despite the success of redevelopment activities to date, many of the blighting conditions that
were prevalent in the Project Areas when they were adopted are still present today. A recent
review of the Project Areas has confirmed that the Projects still contain the following blighting
conditions as defined by the Law's definitions in place at the time of each Project Areas'
adoption:
• Buildings or structures suffering form age, obsolescence and deterioration.
• Some properties within the Project Areas suffer from defective design and character of
physical construction and lack adequate parking, loading and storage facilities.
• Some properties within the Project Areas suffer from economic maladjustment,
dislocation, and disuse and are substandard in design.
• Some properties within the Project Areas exhibit characteristics of faulty interior and
exterior arrangement.
• The Project Areas suffer from inadequate public improvements, traffic, circulation
facilities and blighting conditions.
• The Project Areas suffer from a lack of infrastructure and community facilities.
ROSENOW SPEVACEK GROUP, INC. PAGE 5
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
• The Project Areas contain properties that suffer from depreciated or stagnant property
values that impair private investment and the Agency's ability to pursue revitalization.
■ Some properties within the Project Areas suffer from high vacancy rates, high business
or rental turnover rates, and low rental rates.
• Within the Project Areas properties suffer from inadequate flood control and drainage
improvements.
• Within the Project Areas properties suffer from conflicting land uses, and irregular parcel
shape.
While the Agency has been extremely successful in its revitalization efforts, the conditions
identified above continue to persist within various areas of the Project Areas. These conditions
continue to inhibit economic growth, and are beyond the capacity of the private sector or public
sector to correct, acting alone without the powers of redevelopment.
ROSENOW SPEVACEK GROUP, INC. PAGE 6
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
PROJECT AREA NO. 1 (Original and Added Territory)
The Ordinance adopting Project Area No. 1 (the "Original Area") was approved by the City
Council 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; Tots 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 strip, Highway 111. The Original Area is
generally bounded by portions of Fred Waring and Alessandro Drives to the north, El 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 is 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), is illustrated on
the following page.
Since its inception, Project Area No. 1 (as amended) has experienced a diversity of
development. Residential development has been predominant. Specific projects include: One
Quail Place, an apartment project with 384-units; Palm Lake Village, a 220-unit apartment
project; Hacienda De Monterey, a 180-unit congregate care, 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.
Adoption of this Implementation Plan does not approve any of the projects detailed in this
Implementation Plan. Projects to be undertaken by the Agency are subject to discretionary
approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant
to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a "project"
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.
ROSENOW SPEVACEK GROUP, INC. PAGE 7
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Palm Desert Redevelopment Agency
Project Area No. 1
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FRED WARING DR
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ROSENOW SPEVACEK GROUP, INC.
PAGE 8
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
GOALS AND OBJECTIVES OF THE AGENCY
The following goals and objectives address the blighting conditions still found within Project
Area No. 1. 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 accordance with the
Redevelopment Plan and Annual Work Programs.
• Encourage Stakeholder Participation. To encourage the cooperation and
participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area.
• Encourage Private Sector Investment. To encourage private sector investment in the
development and redevelopment of the Project Area.
• Diversify and Expand Economic Base and Employment Opportunities. To promote
the economic well being of the Project Area by encouraging the diversification and
development of its economic base and employment opportunities.
• Promote Compatible Commercial and Residential Development. To encourage the
development of commercial and residential environments which positively relate to
adjacent land uses, and upgrade and stabilize existing uses.
• Facilitate Revitalization Of the Core Commercial Area. To provide for the
revitalization and full development of the City's core commercial area, to attain
consistent image and character, and to enhance their economic viability.
• Improve Community Facilities. To provide needed improvements to the community's
education, cultural and other community facilities to better serve the Project Area.
• Expand Resources for Land Development. To expand the resource of developable
land by making underutilized land available for redevelopment.
• Coordinate Revitalization and Community Development Activities. To coordinate
revitalization efforts in the Project Area with other public programs offered by the City
and other public agencies.
• Improve Public Infrastructure. To provide needed improvements to the utility
infrastructure and public facilities that service the Project Area.
• Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation
through the reconstruction and improvement of existing streets in the Project Area.
Provide for necessary public parking to address parking deficiencies.
■ Provide Affordable Homeownership Opportunities. To improve housing and assist
low and moderate -income persons and families to obtain homeownership.
ROSENOW SPEVACEK GROUP, INC. PAGE 9
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
■ Increase and Improve the Community's Supply Of Affordable Housing. To promote
the rehabilitation of existing housing stock where appropriate and promote development
of quality, affordable housing.
REVIEW OF THE PRIOR IMPLEMENTATION PLAN
The Agency's second implementation plan, adopted in December 1999, delineated a series of
non -housing and housing projects and programs for Project No. 1, the majority of which were
initiated or fully implemented during the planning period. The Agency's achievements over the
past five years include the following:
Fred Waring Drive Widening: Widened Fred Waring from 4
to 6 lanes including a Baja California Themed Walking Park.
Entrada Del Paseo: Completed water, sewer,
civil infrastructure and parking lot facilities.
ROSENOW SPEVACEK GROUP, INC. PAGE 10
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Westfield Shoppingtown Public Expansion -Phases I and II:
Construction of two Parking Garages totaling 1,000 added
parking spaces, the expansion of Robinsons-May and Macy's
along with an additional 40,000 s.f. of retail space including
Barnes & Noble.
Below is a listing of additional Agency achievements completed over the past Five Year
Implementation Plan period.
• President Plaza III - Additional parking
• Land Acquisition — Open Space
• Palma Village — Utility undergrounding along Highway 74
• Develop Open Space Master Plan (Benefit to all Project Areas)
• Fred Waring Strip Park — Pocket Park
• CVAG Payments for 1-10 Interchange
• Improvements to the Multi -Agency Library
• Placements of utilities underground at Magnesia Falls and Portola
• Placements of utilities underground at Silver Spur Residential Area in partnership with
residents
• Public Parking at Living Desert
• JFK Clinic
• Mc Callum Theatre
• Civic Center Park parking improvements
ROSENOW SPEVACEK GROUP, INC. PAGE 11
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Anticipated Planning Period Projects and Programs
The following summary matrices for Project Area No. 1 describe the proposed non -housing
programs and projects planned for the next five years (Table 1-1). Table 1-2 identifies those
projects to be undertaken with bond funding. The matrices describe each proposed program,
gives the projected time frame for implementation, identifies Agency goal's to be achieved, and
identifies the blighting conditions the program will address. Anticipated program expenditures
are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and
bond funding. Greater or lesser funding may be available; depending upon actual assessed
valuation changes in the Project Area No. 1.
ROSENOW SPEVACEK GROUP, INC. PAGE 12
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ROSENOW SPEVACEK GROUP, INC.
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Five -Year Budget - Project Area No. 1
Table 1-3 presents the Implementation Plan's preliminary five-year redevelopment activity
budget for the Project Area No. 1 (non -housing programs). Tax increment revenues provided
are net of housing set aside amounts and taxing agency pass through payments. They were
estimated based on a conservative increase in secured and unsecured assessed values with
verifiable new development values added. The budget also contains other project revenues,
including interest eamings and taxing agency reimbursements. Expenditures were based on
the 2004-05 budget and proceeds from a previous bond issuance, and include bond debt
service, required payments to Riverside County, and administrative costs.
In total, the Agency anticipates expending $71,002,452 on redevelopment or non -housing
programs that will benefit and address the needs of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 16
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ROSENOW SPEVACEK GROUP, INC.
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
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 following page.
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 Tots 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 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.
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,
as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B),
adoption of an implementation plan shall not constitute a "project" 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.
GOALS AND OBJECTIVES OF THE AGENCY
The following goals and objectives address the blighting conditions still found within Project
Area No. 2. 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 accordance with the
Redevelopment Plan and Annual Work Programs.
• Encourage Stakeholder Participation. To encourage the cooperation and
participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 18
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Palm Desert Redevelopment Agency
Project Area No. 2
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ROSENOW SPEVACEK GROUP, INC. PAGE 19
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
• Encourage Private Sector Investment. To encourage private sector investment in the
development and redevelopment of the Project Area.
• Diversify and Expand Economic Base and Employment Opportunities. To promote
the economic well being of the Project Area by encouraging the diversification and
development of its economic base and employment opportunities.
• Promote Compatible Commercial and Residential Development. To encourage the
development of commercial and residential environments which positively relate to
adjacent land uses, and upgrade and stabilize existing uses.
• Facilitate Revitalization by Acquiring Property to Provide Public Facilities. To
provide needed improvements to the community's recreation, education, cultural, and
other community facilities to better serve the Project Area
• Improve Community Facilities. To provide needed improvements to the community's
education, cultural and other community facilities to better serve the Project Area.
• Expand Resources for Land Development. To expand the resource of developable
land by making underutilized land available for redevelopment.
• Improve Public Infrastructure. To provide needed improvements to the utility
infrastructure and public facilities that serve the Project Area.
• Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation
through the reconstruction and improvement of existing streets in the Project Area.
Provide for necessary public parking to address parking deficiencies.
• Provide Affordable Homeownership Opportunities. To improve housing and assist
low and moderate -income persons and families to obtain homeownership.
• Increase and Improve the Community's Supply of Affordable Housing. To promote
the rehabilitation of existing housing stock where appropriate and promote development
of quality, affordable housing.
REVIEW OF THE PRIOR IMPLEMENTATION PLAN
The Agency's second implementation plan, adopted in December 1999, delineated a series of
non -housing and housing projects and programs for Project No. 2, the majority of which were
initiated or fully implemented during the planning period. The Agency's achievements over the
past five years include the following:
Desert Willow Hotel/Resort and Golf Course
ROSENOW SPEVACEK GROUP, INC.
PAGE 20
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Cook Street Improvements: Paid from Project Area No. 1 and Project Area No. 4
CITY OF PALM DESERT
ow...w«. CALL
rpeMa irn /PAO
California State University San Bernardino: Loan funding and land grant of 200 acres for first
building of Palm Desert campus and University of California Riverside satellite campus
ROSENOW SPEVACEK GROUP, INC.
PAGE 21
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Below is a listing of additional Agency achievements completed over the past Five Year
Implementation Plan period.
• Acquire Land for Controlled Redevelopment of 5 Acre Parcels from Frank Sinatra Drive
to Gerald Ford Drive - 145 acres purchased
• Underground Unsightly Utilities (Projects 23, 24, 27)
• Corporate Office Park Redevelopment
• Acquisition of land for controlled redevelopment of 170 acres
• Education Facility Enhancement
• Frank Sinatra Drive - Landscape Medians
Anticipated Projects and Programs - Project Area No. 2
The following summary matrices for Project Area No. 2 describe the proposed non -housing
programs and projects planned for the next five years (Table 2-1). Table 2-2 identifies those
projects to be undertaken with bond funding. The matrices describe each proposed program,
gives the projected time frame for implementation, identifies Agency goal's to be achieved, and
identifies the blighting conditions the program will address. Anticipated program expenditures
are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and
bond funding. Greater or lesser funding may be available; depending upon actual assessed
valuation changes in the Project Area No. 2.
ROSENOW SPEVACEK GROUP, INC. PAGE 22
EAR IMPLEMENTATION PLAN -PROJECT AREA N • . 4
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GRAND TOTAL FIVE YEAR NON -HOUSING PROGRAM COST
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IMPLEMENTATION PLAN -PROJECT AREA Ns. .
ERT REDEVELOPMENT A k
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ROSENOW SPEVACEK GROUP, INC.
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Five -Year Budget - Project Area No. 2
Table 2-3 presents the Implementation Plan's preliminary redevelopment activity budget for the
Project Area No. 2 (non -housing programs). Tax increment revenues provided are net of
housing set aside amounts and taxing agency pass through payments. They were estimated
based on a conservative increase in secured and unsecured assessed values with verifiable
new development values added. The budget also contains other project revenues, including
interest earnings and loan repayments. Expenditures were based on the 2004-05 budget and
proceeds from a previous bond issuance, and include bond debt service, required payments to
Riverside County, and administrative costs.
In total, the Agency anticipates expending $ 53,502,626 on redevelopment or non -housing
programs that will benefit and address the needs of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 25
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ROSENOW SPEVACEK GROUP, INC.
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
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
following page.
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.
Adoption of this Implementation Plan does not approve any of the projects detailed in this
Implementation Plan. Projects to be undertaken by the Agency are subject to discretionary
approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant
to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a "project"
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.
GOALS AND OBJECTIVES OF THE AGENCY
The following goals and objectives address the blighting conditions still found within Project
Area No. 3. 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 accordance with the
Redevelopment Plan and Annual Work Programs.
• Encourage Stakeholder Participation. To encourage the cooperation and
participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 27
CITY LIMITS
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Palm Desert Redevelopment Agency
Project Area No. 3
g
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ROSENOW SPEVACEK GROUP, INC. PAGE 28
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
• Encourage Private Sector Investment. To encourage private sector investment in the
development and redevelopment of the Project Area.
• Diversify and Expand Economic Base and Employment Opportunities. To promote
the economic well being of the Project Area by encouraging the diversification and
development of its economic base and employment opportunities.
• Promote Compatible Commercial and Residential Development. To encourage the
development of commercial and residential environments which positively relate to
adjacent land uses, and upgrade and stabilize existing uses.
• Facilitate Revitalization by Acquiring property to Provide Public Facilities. To
provide needed improvements to the community's recreation, education, cultural, and
other community facilities to better serve the Project Area
• Improve Community Facilities. To provide needed improvements to the community's
education, cultural and other community facilities to better serve the Project Area.
• Expand Resources for Land Development. To expand the resource of developable
land by making underutilized land available for redevelopment.
• Improve Public Infrastructure. To provide needed improvements to the utility
infrastructure and public facilities that service the Project Area.
• Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation
through the reconstruction and improvement of existing streets in the Project Area.
Provide for necessary public parking to address parking deficiencies.
• Provide Affordable Homeownership Opportunities. To improve housing and assist
low and moderate -income persons and families to obtain homeownership.
• Increase and Improve the Community's Supply of Affordable Housing. To promote
the rehabilitation of existing housing stock where appropriate and promote development
of quality, affordable housing.
REVIEW OF THE PRIOR IMPLEMENTATION PLAN
The Agency's second implementation plan, adopted in December 1999, delineated a series of
non -housing programs for Project Area No. 3. Improvements completed during this period
included; construction of sidewalks on 42nd Street, start of construction of sewer and street
improvements and Merel Street.
Anticipated Projects and Programs - Project Area No. 3
The following summary matrix for Project Area No. 3 describes the proposed non -housing
programs and projects planned for the next five years as well as identifies those projects to be
undertaken with bond funding (Table 3-1). The matrix describes each proposed program, gives
the projected time frame for implementation, identifies Agency goal's to be achieved, and
identifies the blighting conditions the programs will address. Anticipated program expenditures
are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09 and
bond funding. Greater or lesser funding may be available; depending upon actual assessed
valuation changes in the Project Area No. 3.
ROSENOW SPEVACEK GROUP, INC.
PAGE 29
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ROSENOW SPEVACEK GROUP, INC.
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Five -Year Budget — Project Area No. 3
Table 3-2 presents the Implementation Plan's preliminary redevelopment activity budget for the
Project Area No. 3 (non -housing programs). Tax increment revenues provided are net of
housing set aside amounts and taxing agency pass through payments. They were estimated
based on a conservative increase in secured and unsecured assessed values with verifiable
new development values added. The budget also contains other project revenues, including
interest earnings and loan repayments. Expenditures were based on the 2004-05 budget and
proceeds from a previous bond issuance, and include bond debt service, required payments to
Riverside County, and administrative costs.
In total, the Agency anticipates expending $ 8,248,124 on redevelopment or non -housing
programs that will benefit and address the needs of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 31
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ROSENOW SPEVACEK GROUP, INC.
Third Five -Year Implementation Plan
Palm Desert Redevelopment Projects
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 following page.
Project Area No. 4 generally includes the territory bounded on the west by El 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 southem
boundary with Washington Street being the eastern limit. Country Club Drive is the northern
boundary running from Washington Street westward to El 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.
Adoption of this Implementation Plan does not approve any of the projects listed herein.
Projects to be undertaken by the Agency are subject to discretionary approvals by the Agency,
as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B),
adoption of an implementation plan shall not constitute a "project" 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.
ROSENOW SPEVACEK GROUP, INC. PAGE 33
ti
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4
NOVLEYLN E
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Palm Desert Redevelopment Agency
Project Area No. 4
FRANK SINATRAOR
COUNTRY CLUB OR
RDA
Project
Area No. 4.
1993
FRED WARING DR
STATEHWY 111
CITY LIMITS
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ROSENOW SPEVACEK GROUP, INC. PAGE 34
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
GOALS AND OBJECTIVES OF THE AGENCY
The following goals and objectives address the blighting conditions still found within Project
Area No. 4. 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 accordance with the
Redevelopment Plan and Annual Work Programs.
• Encourage Stakeholder Participation. To encourage the cooperation and
participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area.
• Encourage Private Sector Investment. To encourage private sector investment in the
development and redevelopment of the Project Area.
• Diversify and Expand Economic Base and Employment Opportunities. To promote
the economic well being of the Project Area by encouraging the diversification and
development of its economic base and employment opportunities.
• Promote Compatible Commercial and Residential Development. To encourage the
development of commercial and residential environments which positively relate to
adjacent land uses, and upgrade and stabilize existing uses.
Facilitate revitalization by acquiring property to provide public facilities. To
provide needed improvements to the community's recreation, education, cultural, and
other community facilities to better serve the Project Area
• Improve Community Facilities. To provide needed improvements to the community's
education, cultural and other community facilities to better serve the Project Area.
• Expand Resources for Land Development. To expand the resource of developable
land by making underutilized land available for redevelopment.
• Improve Public Infrastructure. To provide needed improvements to the utility
infrastructure and public facilities that serve the Project Area.
• Address Traffic Circulation and Parking Deficiencies. To improve traffic circulation
through the reconstruction and improvement of existing streets in the Project Area.
Provide for necessary public parking to address parking deficiencies.
• Provide Affordable Homeownership Opportunities. To improve housing and assist
low and moderate -income persons and families to obtain homeownership.
• Increase and Improve the Community's Supply of Affordable Housing. To promote
the rehabilitation of existing housing stock where appropriate and promote development
of quality, affordable housing.
ROSENOW SPEVACEK GROUP, INC. PAGE 35
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
REVIEW OF THE PRIOR IMPLEMENTATION PLAN
The Agency's second implementation plan, adopted in December 1999, delineated a series of
non -housing and housing projects and programs for Project No. 4, the majority of which were
initiated or fully implemented during the planning period. The Agency's achievements over the
past five years include the following:
• Construct wall along Hovely Avenue
■ Payments to CVAG for I-10 Interchange
• Acquisition of land for regional park/design of regional park
• Design and start of construction of storm drain improvements — Warner Trail
• Loan to University of Califomia Riverside for graduate campus
■ Storm Drain Improvements
Anticipated Projects and Programs — Project Area No. 4
The following summary matrix for Project Area No. 4 identifies those projects to be undertaken
with bond funding within Project Area No. 4 (Table 4-1). The matrix describes each proposed
program, gives the projected time frame for implementation, identifies Agency goals to be
achieved, and identifies the blighting conditions the programs will address. Anticipated program
expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY
2008-09 and bond funding. Greater or lesser funding may be available; depending upon actual
assessed valuation changes in the Project Area No. 4.
ROSENOW SPEVACEK GROUP, INC. PAGE 36
IV YEAR IMPLEMENTATION PLAN -PROJECT AREA •
Estimated Agency Cost
Blight Mitigated
Goals Achieved
Time Frame
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ROSENOW SPEVACEK GROUP, INC
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
Five -Year Budget -Project Area No. 4
Table 4-2 presents the Implementation Plan's preliminary redevelopment activity budget
for the Project Area No. 4 (non -housing programs). Tax increment revenues provided
are net of housing set aside amounts and taxing agency pass through payments. They
were estimated based on a conservative increase in secured and unsecured assessed
values with verifiable new development values added. The budget also contains other
project revenues, including interest eamings and loan repayments. Expenditures were
based on the 2004-05 budget and proceeds from a previous bond issuance, and include
bond debt service, and administrative costs.
In total, the Agency anticipates expending $ 25,757,114 million on redevelopment or
non -housing programs that will benefit and address the needs of the Project Area.
ROSENOW SPEVACEK GROUP, INC. PAGE 38
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ROSENOW SPEVACEK GROUP, INC.
I
THIRD FIVE-YEAR IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT PROJECTS
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.
ROSENOW SPEVACEK GROUP, INC. PAGE 40
City of Palm Desert
Palm Desert Redevelopment Agency
Affordable Housing Sirategy &
Compliance Plan
Appendix 1-Five Year Implementation Plan -Housing Component
Ten-YearAffordable Housing Compliance Plan
(2004-05 through 2013-14)
Draft Plan Reviewed byAgency: November 18, 2004
Palm Desert RedevelopmentAgency
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
Affordable Housing Shategy & Compliance Plan
Palm Desert RedevelopmentAgency
Table of Contents
Executive Summary 1
Introduction 4
Legal Requirement for Meeting Agency's Housing Obligations 4
Compliance with AB 637 and SB 701 5
Summary of City's Housing Obligations 6
The Stipulation Regarding Affordable Housing 7
Objectives of the Housing Strategy 7
Methodology and Data Compilation 8
Aggregation of Affordable Housing Units Among All Project Areas 9
Affordable Housing Provided Outside of the Project Areas 9
Housing Goals 9
Redevelopment Plan Limitations 10
Affordable Housing Production Needs 12
Definitions and Data Compilation 12
Inventory of Existing Deed -Restricted Units 15
Affordable Units Required 16
Past Inclusionary, Current Five & Ten Year Inclusionary Unit Need 17
Replacement Housing Production Needs 18
Estimated Housing Fund Resources 19
Housing Set Aside Tax Increment Funds 19
Targeting of Housing Fund Expenditures 20
Income Categories Assisted 20
Family and Senior Housing 21
G:IRSGPA.LNDST120041bPPLANWOUSINGCONPUANCEPLAN 2004PAUVDESTHOUSINGPLANFlNA.L 11-0.DOC
Projected Housing Fund Expenditures 22
Potential Affordable Units by Year 23
Other Funding Sources for Housing Programs 23
Proposed Affordable Housing Initiatives 23
Planning Period Housing Projects and Programs 24
Housing Fund Expenditures 1999/00 through 2003/04 25
Housing Stipulation 27
Housing Element Consistency 28
Affordable Housing Strategy & Compliance Plan
Palm Desert RedevelopmentAgency
Executive Summary
Providing affordable housing has become an ever-increasing problem for communities
within the State of Califomia. The City of Palm Desert is experiencing a substantial
demand for housing with an ever-increasing demand for affordable very low, low and
moderate income housing. To address this need and to better utilize both physical and
financial resources, the City of Palm Desert ("City") and the Palm Desert
Redevelopment Agency ("Agency") have prepared an Affordable Housing Plan and
Strategy. This strategy is focused on meeting or exceeding the inclusionary housing
unit production requirements of Califomia Community Redevelopment Law
("Redevelopment Law"), the Stipulation regarding affordable housing and the Regional
Housing Needs Allocation (RHNA) new construction figures.
This document, the Affordable Housing Plan and Strategy serves as the Agency's Five
Year (2004/05-2008/09) Implementation Plan's Housing Component and Ten Year
(2004/05-2013/14) Housing Compliance Plan.
Community Redevelopment Law
The Housing Strategy serves as a blueprint for current and future Agency activities to
meet its low and moderate income housing responsibilities. The Housing Strategy
presents a summary of the Agency's affordable housing programs. 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 next ten years (fiscal
years 2004/05 through 2013/14) and until the termination of the Redevelopment Plans.
The Agency's efforts to produce affordable housing over the last 10 years (1994/95
through 2003/04) have resulted in the Agency exceeding its 10 year affordable housing
unit requirements.
The Agency's prior 10-year inclusionary housing unit need was established by a
detailed review of housing units built or substantially rehabilitated in the Project Areas
from adoption through June of 1994 and projections of units to be built or substantially
rehabilitated from July of 1994 through June of 2004. It was estimated that the prior 10
year unit need was for 868 affordable housing units of which 354 were required to be
specifically restricted for very low-income households. During this period, the Agency
successfully created or facilitated the restriction of 1,349 units affordable to low and
moderate income households with 594 of these reserved for very low income
households. The Agency's 10 year production of affordable units has created a surplus
of 481 units which Redevelopment Law allows the Agency to carry over to the next 10
year period (2004/05 - 2013/14). Additionally, the Agency is currently developing
and/or supporting private projects that I will result in the restriction of 134 new affordable
units.
Projections for the current 10 year period, 2004/05 through 2013/14 have established
an inclusionary housing unit need of 899 affordable units, of which 361 must be
restricted as affordable to very low income households. The 899 unit figure does not
ROSENOW SPEVACEK GROUP, INC. PAGE 1
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
account for the Agency's carry over units and those new units currently underway.
Therefore, after accounting for these credits and units underway the Agency's
remaining 10 year unit need is for 284 affordable units, 95 of which must be restricted
for the very low income.
Stipulation
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 Westem Center on Law
and Poverty, Inc, the Califomia Rural Legal Assistance, Jonathan Lehrer-Craiwer and
the City and Redevelopment Agency of Palm Desert (the "Parties"). The Judgment
incorporated terms of a Stipulation for Entry of Judgment in the Case (the "Stipulation").
The Stipulation and subsequent amendments imposes 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. Current accounting indicates a Stipulation
Production need of 1,205 affordable units by 2006. The Agency has provided 1,152
units leaving a deficiency of 53 units, which must be produced by 2006.
Housing Element RHNA Housing Units
The Housing Element of the City of Palm Desert's General Plan establishes a housing
program that sets a 5-year schedule to achieve goals and objectives. The Housing
Element identifies suitable sites for the development of housing units, quantifies the
number of units to be created by income level, and estimates the amount of funds
available for housing programs to meet the RHNA figures. Additionally, the Housing
Element identifies additional policies and programs to meet the housing needs of Palm
Desert. Current RHNA housing unit numbers cover the period of 1998 through 2005.
The total unit need for this period is 443 units of which 229 must be provide for very
low, low and moderate income persons or households. To date the City has provided
127 units leaving a deficiency of 102 units to be provided during the next 13 months.
Housing Programs and Projects
The City and Agency are proactive in ensuring that affordable housing is developed
within the four Redevelopment Project Areas and citywide. Projects and programs
anticipated to address the City and Agency's housing responsibilities include:
ROSENOW SPEVACEK GROUP, INC. PAGE 2
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
• Affordable Housing Proiects underway: Palm Village Apartments, -
Reconstruction/Substantial Rehabilitation of 12 units and construction of an
additional 24 two -bedroom units. Self Help Housing -Merle Street — will produce 14
three -bedroom ownership dwellings, all reserved for very low income households.
• New Construction of Ownership Units: Construction of 95 large family single
family homes on an 18 acre site. The three and four bedroom homes will be
reserved for low and moderate income households.
• Development of Senior Citizen Housing: The Agency will pursue the
development of 26 new senior housing units within the community. This project
is targeted to reserve 13 affordable units for the very low income and 13 units
for the low-income senior.
• Single Family Rehabilitation: The Agency will continue its successful single-
family rehabilitation program. It is estimated that 30 units of affordable housing
will be assisted during the next five years.
• Multifamily Rehabilitation: The Agency will purchase and rehabilitate suitable
rental properties, thereby providing affordable units. 30% of the total number of
units are to be for low and very low income persons of which not less than 50%
of these units will be very low-income affordable housing units.
• Provide Developer Incentive — The Agency will provide financial assistance
were necessary and appropriate to secure restricted covenants on privately
development new single family and multi -family housing units.
Programs identified in the City's Housing Element that are anticipated for
implementation during the next ten year period that are currently under development by
Agency staff are:
• Mortgage Subsidy Program - Very low, low and moderate income owners of
single-family homes, condominiums and mobile homes may receive assistance
if their mortgage payment exceeds 30% of their income. Assistance will be
provided directly by the Redevelopment Agency. In exchange for the
assistance, the home owner will be required to enter into a recorded agreement
with the Agency assuring affordability of the home for 45 years.
• Rental Subsidy Program - Owners of single-family homes, condominiums,
mobile homes or apartments who rent to very low, low, and moderate income
tenants may receive direct rental payment assistance from the Agency. The
owner must, in exchange for the assistance, enter into a recorded agreement
with the Agency assuring affordability of the rental units for 55 years.
• Homebuvers Program - The Agency will provide assistance to very low, low,
and moderate income persons in the form of low interest loans to be applied to
down payment, non -recurring closing costs, reduction of the interest rate on the
first trust deed, or any other cost associated with the purchase of a home.
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
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Introduction
This document is the 2004/05 Affordable Housing Plan and Strategy ("Housing
Strategy") for the City of Palm Desert and the Palm Desert Redevelopment Agency
and serves as the Housing Component for the Agency's Five -Year (2004/05-2008/09)
Implementation Plan and Ten Year (2004/05-2013/14) Affordable Housing Compliance
Plan. This Housing Strategy accompanies the Agency's Five Year Implementation
Plan, which was adopted along with this Housing Strategy by the Agency following a
duly noticed public hearing held on November 18, 2004.
This Housing Strategy reviews the need for affordable housing within the community as
detailed in the City's General Plan's Housing Element.'It also addresses issues related
to the Agency's obligations for affordable housing agreed to under the 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
Amending the 1991 Stipulation for Entry of Judgment ("The Stipulation Regarding
Affordable Housing").
Serving as the required housing compliance plan, this Housing Strategy covers
collectively 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
The City Council of the City of Palm Desert established the Agency in October of 1974.
The Agency's first redevelopment project area, Project Area No. 1, was adopted in July
of 1976 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 Areas. The Agency has also made a substantial effort to improve and
increase the City's supply of affordable housing. The Agencys four (4) adopted
redevelopment project areas encompass an estimated 11,771 acres of the City's
incorporated territory.
Legal Requirement for Meeting Agency's Housing Obligations
The required housing portion of the Implementation Plan (Housing Strategy) serves as
a blueprint for current and future Agency activities to meet its low and moderate income
' The City's Housing Element was adopted by the City Council on February 14, 2002 and
certified as conforming to State Law by the State Department of Housing and Community
Development on May 22, 2002.
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housing responsibilities. This Housing Strategy 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 Califomia Community Redevelopment Law,
Health and Safety Code Section 33000 et. seq.. Specifically, it presents a reconciliation
of the Agency's replacement housing obligations. It provides a forecast of the number
of housing units2 that are or will be reserved and affordable to very low, low and
moderate income persons or families over the ten year planning period (fiscal years
2004-05 through 2013-14) and until the termination of the Redevelopment Plans.3
This Agency plans to facilitate the creation of the required number of affordable
housing units within this timeframe.
Compliance with AB 637 and SB 701
This Housing Strategy is consistent with recent changes enacted into Redevelopment
Law pursuant to Assembly Bill 637 (Lowenthal) and Senate Bill 701 (Torlakson).
Among these significant amendments are:
➢ 55/45 Year Minimum Affordability Periods: Effective January 1, 2002, all units
assisted by the Housing Fund including replacement housing units and production
housing must be affordable for 55 years (rental units) or 45 years (owner -occupied
units). Units assisted, rehabilitated or constructed prior to January 1, 2002 may
have shorter time limits.
➢ Substantial Rehabilitation: Between January 2002 and January 2006, a
redevelopment agency is only required to include in its housing production
obligations those numbers of units generated by the substantial rehabilitation of
multifamily units assisted by the agency. Outside of this time frame, substantially
rehabilitated dwelling units means substantially rehabilitated multi -family rental
dwelling units with three or more units regardless of whether there is agency
assistance, or single family units substantially rehabilitated with agency assistance.
➢ Targeting Housing Fund Expenditures: Effective January 2002, the
Redevelopment Law now requires that Housing Fund assistance during the
Implementation Plan period mirror the community's needs, both in terms of the
income categories needed, and the number of family (versus senior) housing
2 The Redevelopment Law defines Affordable Housino 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 120% for rental projects) of the County
median household income.
3 The Redevelopment Law 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.
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
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needed.4 (The Redevelopment Law provides an additional five years to meet this
requirement if an agency deposited less than $2 million over the first five years of
the ten year period covered by the housing portion of an implementation plan.)
Summary of City°s Housing Obligations
State law requires each local city and county in the state to have an adopted
comprehensive general plan for the community's physical development. The State also
mandates that one of the required elements of the general plan is a housing element.
The state law also requires that the housing element of a community address the
housing needs, both existing and projected, of all economic segments of the
community. The housing element must address land use and regulatory issues that will
provide opportunities for the development of all types of housing. It establishes the
community's goals and objectives with regard to housing production, rehabilitation, and
conservation to meet the identified needs. The Housing Element also defines the
policies and programs that the community will implement to achieve the stated goals
and objectives. The City's Housing Element must provide the following information or
detail the actions necessary to meet specific outlined goals:
➢ Quantify projected housing needs of the community utilizing the regional
housing need allocation model ("RHNA"), produced by the Southern California
Association of Governments ("SCAG")
➢ Make a diligent effort to achieve public participation in the preparation of the
document.
➢ Assess housing needs and analyze resources and constraints.
➢ Estimate amount of funds available for housing programs (project
redevelopment housing set -aside tax increment funds and other sources of
housing funding)
➢ Establish a housing program that sets a 5-year schedule to achieve goals and
objectives
➢ City's Housing Program must identify adequate sites -with appropriate zoning,
development standards and public facilities that:
• encourage development of housing for all income levels;
• provide for development of all housing types (multifamily rental, mobile
home, farm worker, factory -built, and emergency shelters;
• assist in development of housing to meet needs of low and moderate -
income households;
4 Allocation of a redevelopment agency's tax increment housing set aside dollars must at a
minimum be allocated to very low and low income persons at least in the same proportion to the very
low, low and moderate income unit need identified in the community's housing element (as
established by the regions housing needs allocation). Additionally housing set aside funds allocated
for person 65 years of age or older must not exceed the proportion of their number to the general
population.
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
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• address governmental constraints;
• promote equal housing opportunities for all; and
• preserve assisted low and moderate -income housing from risks of market
conversion.
➢ Quantify objectives (units) by income levels for:
• Construction
• Rehabilitation
• Conservation
➢ Programs must be consistent with other elements of General Plan
The City of Palm Desert's Housing Element of the General Plan was adopted by the
City Council on February 14, 2002 and certified as meeting the requirements of State
Law by the State Department of Housing and Community Development on May 22,
2002.
The Stipulation Regarding Affordable Housing
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 Westem Center on Law
and Poverty, Inc, the Califomia Rural Legal Assistance, Jonathan Lehrer-Craiwer and
the City and Redevelopment Agency of Palm Desert (the "Parties"). The Judgment
incorporated terms of a Stipulation for Entry of Judgment in the Case (the "Stipulation").
The Stipulation and subsequent amendments imposes certain ongoing obligations on
the Agency with respect to affordable housing within the City. It also provides that the
Court continues 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, housing units affordable to low
income persons or families in specific amounts during specified time periods.'
Objectives of the Housing Strategy
This Housing Strategy has been developed to accomplish the following objectives:
➢ An assessment of the Agency's compliance with all aspects of the Redevelopment
Law'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.
5 Restricted income categories required by the Stipulation are more restrictive than those
required by Redevelopment Law.
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• To account for the number of affordable dwelling units, either constructed or
substantially rehabilitated, in the Project Areas since adoption;
• To forecast the estimated number of dwelling units to be privately
developed or substantially rehabilitated between fiscal years 2004/05 -
2008/09 and 2013/14 and over the duration of the Redevelopment Plan;
• To forecast the estimated number of dwelling units to be developed or
substantially rehabilitated by the Agency between fiscal years 2004/05 -
2008/09 and 2013/14 and over the duration of the Redevelopment Plans;
• To account for any low or moderate income housing units destroyed
through the Agency's implementation of the Redevelopment Plan;
• To verify the number and type of replacement units provided by the Agency
in response to any units destroyed through Agency action;
• To project the availability of Agency revenue for funding affordable housing
production;
• To establish a timeline for implementing this Housing Strategy to ensure
that the requirements of Section 33413 are met during the ten-year period
between fiscal years 2004/05 and 2013/14;and
• To review the consistency of Agency affordable housing goals, objectives,
and programs pursuant to the City of Palm Desert's Housing Element.
➢ To examine the issues associated with the mandatory imposition of inclusionary
affordability obligations on all new housing projects constructed in the Project
Areas.
➢ To assess the City's and Agency's current housing programs and regulations to
determine how well they contribute to meeting the Agency's housing obligations
under the Redevelopment Law.
➢ To recommend housing strategies, potential programs and specific projects that will
meet the Agency's and the City's housing obligations.
➢ To identify implementation policies/programs and potential sites for affordable
housing development.
➢ To quantify the affordable housing requirements imposed upon the City and
Agency by the Stipulation.
Methodology and Data Compilation
This Housing Strategy takes into account all residential construction or substantial
rehabilitation that has occurred within the Project Areas since their adoption.
Information from both the Planning and Building Divisions of the City's Community
Development Department was provided and reviewed in order to account for such units
and thereby calculate the Agency's overall affordable housing production needs. The
Strategy accounts for existing residential construction and substantial rehabilitation, and
includes projections of new dwelling units that may be constructed or substantially
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
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rehabilitated during the ten-year planning period and over the remaining period for
which each of the Project Areas Redevelopment Plans are effective.
Aggregation of Affordable Housing Units Among All Project Areas
Section 33413 (b)(2)(A)(v) of the Redevelopment Law 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."
The Palm Desert Redevelopment Agency with the adoption of its 1999 Housing
Compliance Plan has previously taken action to aggregate its new and substantially
rehabilitated units among all of its (four) Project Areas. The Agency will consider similar
action at the Public Hearing scheduled to consider the adoption of this Housing
Strategy. 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, is of
benefit to the Project Areas and the community, and that such aggregation will not
cause or exacerbate racial, ethnic, or economic segregation.
Affordable Housing Provided Outside of the Project Areas
Section 33413(b)(2)(A)(ii) of the Redevelopment Law 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. To date, the Agency has created or reserved the vast majority of its
affordable units within the Project Areas. However, the Agency will, if appropriate,
consider funding affordable housing projects or programs outside of the Project Areas
when necessary.
Housing Goals
The housing goals for the term of this Housing Strategy 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 Redevelopment Law.
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➢ To leverage the Agency's Housing Funds with other resources in order to promote
affordable housing.
> To insure 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.
> To continue to meet the affordable unit requirements set forth in the Stipulation.
Since the adoption of the first Housing Plan in 1993 (the "1993 Housing Plan"), the
Agency through the efforts of the Housing Authority has actively pursued projects,
programs, and activities that meet the Agency's goals as set out above. The projects,
programs and activities have been designed to significantly increase the number of
affordable very low, low and moderated income 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.
Redevelopment Plan Limitations
Redevelopment Law provides that certain limitations on redevelopment and financing
activities must be imposed on the Redevelopment Plans. Additionally, changes in the
Redevelopment Law have and may continue changes in individual Project Area
limitations. These limitations affect the term that the Agency may pursue revitalization
efforts and among other things the amounts of tax increment revenue available for
housing activities. The following Table 1 summarizes the Project Areas
Redevelopment Plan limitations.
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TABLE 1
PALM DESERT REDEVELOPMENT AGENCY
Plan Limits
Date of Adoption
Effectiveness of Plan/1/2
Tax Increment
Bonded Debt Limit /3
Limit to Incur Debt
Limit on Receiving Tax
Increment and Paying
Indebtedness/2
Original Area
July 16, 1975
July 16, 2016
$758,000,000
None
Eliminated/4
July 16, 2026
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
levelopment Plan Limitations
Added Territory
November 25, 1981
November 25, 2022
$500, 000, 000 /3
$200,000,000 /5
Eliminated/4
Project Area No. 2
July 15, 1987
July 15, 2028
$800,000,000/5
$150,000,000/5
Eliminated/4
November25, 2032 July 15, 2038
Project Area No. 3
July 17, 1991
July 17, 2032
360,000,000/3
100, 000, 000/3
Eliminated/4
Project Area No. 4
July 19, 1993
July 19, 2034
$200,000,000 /3
$600,000,000 Gross
$135,000,000/3
Eliminated/4
July 17, 2042 July 19, 2044
1. Pursuant to Assembly Bill 1290 all pre 1994 redevelopment projects were required to adopt specific time limitations. On December 8, 1994 the City
Council adopted the required Ordinances establishing such limits for each Project Area.
2. Pursuant to Senate Bill 1045 (Statutes of 2003, Chapter 260), which was enacted into law in September of 2003, the City Council will have the ability to
extend each Project Areas Plan's effectiveness for the time period to collect tax increment by one year.
3. Tax increment cap and/or bonded debt limit is exclusive of amounts paid to taxing agencies and exclusive of amounts paid directly or indirectly by the
Agency or any taxing entity to finance the acquisition of land, construction of buildings, facilities, structures or improvements for such taxing agencies.
4. Pursuant to Senate Bill 211(Statues of 2001 Chapter 741) the City Council adopted the required Ordinance amending the Project Areas
Redevelopment Plans to eliminate the time limits to incur debt.
5. Amounts adjusted annually by Consumer Price Index (CPI)
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Affordable Housing Production Needs
This section describes the Agency's housing production needs for the next ten years,
which is comprised of two five-year planning periods (2004/05-2008/09 and 2009/10-
2013/14) and over the duration of the Redevelopment Plans.
Definitions and Data Compilation
This Housing Strategy takes into account all residential construction or substantial
rehabilitation that has occurred within the Project Areas since their adoptions in order to
determine affordable housing production needs. This Housing Strategy includes
figures for existing residential construction and substantial rehabilitation, and projections
for the number of additional dwelling units to be constructed or substantially
rehabilitated during the next ten (10) years and over the life of the Plans. The following
sections define "new construction" and "substantially rehabilitated" as used in this
Housing Strategy, as well as the methodology used for collecting data on both existing
and projected housing units.
➢ New Construction. The Agency and City Planning staff provided the original
construction statistics used in the 1993,1994 and 1999 Housing Plans.
Because Redevelopment 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 unit" was utilized to account for units considered
developed from the respective adoptions of the Project Areas until the 1993
Housing Plan preparation. Therefore, all units constructed during this time
period would fall under the requirements for the production of affordable
housing units within the Project Areas pursuant to Section 33413 of the
Redevelopment Law. Counts of new dwelling units developed from 1994
through 2004 were based upon an examination of City building permit records.
➢ 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 his 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. The results of this review determined that within the
next ten years Project No. 1 (Original and Added Territory), Project Area No. 3
and Project Area No. 4 will reach build out. Only Project Area No. 2 will still
have remaining vacant land that may generate additional new dwelling units.
➢ Aaencv Developed Units. It should be noted with the exception of the Palm
Village Apartments, a new construction/substantial rehabilitation affordable
housing project now underway, projections for future dwelling units in the
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Project Areas do not include units to be developed by the Agency. According to
Agency staff, the Agency does not anticipate directly developing or
rehabilitating any dwelling units which would trigger the thirty percent (30%)
affordable housing requirement of Section 33413(b) (I) within the ten (10) year
time frame of this Housing Strategy. However, 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.
> Substantial Rehabilitation. The Redevelopment Law, as amended by AB
1290, defines "substantial rehabilitation" as:
"...rehabilitation, the value of which constitutes 25 percent of the after
rehabilitation value of the dwelling, inclusive of the land value."
33413(b) (2) (A) (IV)
> As defined by the Redevelopment Law "substantially rehabilitated dwelling
units" means:
"On or after January 1, 2002, substantially rehabilitated dwelling unit's
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." 33413(b) (2) (A) (iii)
Table 2 below, details the Agency's "Inclusionary Housing Obligation Status" with
updated total units constructed to date in the Project Areas, and those expected to be
constructed from 2004 through the term of expiration of each of the Redevelopment
Plans.
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Project Area
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Table 2
Palm Desert Redevelopment Agency
Inclusionary Housing Obligation Status
Developed or Number of Total Number VL Units L & M Units
Substantially Units Units Required Required Required
Rehabilitated Produced
Project Area No. 1
Built from date of adopt through June 30, 1994 Privately/ 15% 3,600 540 216 324
Substantially Rehabilitated Agency/30% 64 19 10 9
SUBTOTAL 3,664 559 226 333
6 g 1Substantially Rehabilitated Agency/30% 68 20 10 10
m cs, 1NewConstruction Private/15% 1,092 164 66 98
SUBTOTAL 1,160 184 76 108
T o
1SubstantiallyRehabilitated ' Agency/30% 12 4 2 2
v INewConstruction Agency/30% 24 7 4 4
g A 5 INew Construction Private/15% 741 111 44 67
SUBTOTAL 7771 122 50 72
To Be Bullt/Provided Over RemaininQProlect Term Private/15% 0 0 0 0
TOTAL UNITS OVER TERM OF PLAN 5,601 865 351 514
Project Area No. 2
Built from date of adopt through June 30, 1994
Substantially Rehabilitated Private/15% 0 0 0 0
New Construction Private/15% 1,159 173.9 69.5 104.3
SUBTOTAL 1,159 174 70 104
4 4 1SubstantiallyRehabilitated
Private/15% 0 0 0 0
N (New Construction Private/15% 238 35.7 14.3 21.4
SUBTOTAL 238 35.7 14.3 21.4
o g Q (Substantially Rehabilitated Private/15% 0 0 0 0
CVi N 1- INew Construction Private/15% 2,000 300.0 120.0 180.0
SUBTOTAL 2,000 300 120 180
To Be Built/Provided Over RemaininQProject Term Private/15% 767 115 46 69
TOTAL UNITS OVER TERM OF PLAN 4,164 625 250 375
Project Area No. 3
Built from date of adopt through June 30, 1994
Substantially Rehabilitated Private/15% 0 0.0 0.0 0.0
New Construction Private/15% 80 12.0 4.8 7.2
SUBTOTAL 0 0 0 0
d I Substantially Rehabilitated Private/15% 2 1.0 0.5 0.5
-i
0
v
g i CN 8 m- INewConstruction Private/15% 554 83 33 50
SUBTOTAL 554 83 33 50
To Be Built/Provided Over Remaining Protect Term Private/15% 0 0 01 0
TOTAL UNITS OVER TERM OF PLAN 1,097 165 66 99
Project Area No. 4
Built from date of adopt through June 30, 1994
Substantially Rehabilitated Private/15% 0 0.0 0.0 0.0
New Construction Private/15% 218 33 13 20
SUBTOTAL 218 33 13 20
4 g I Substantially Rehabilitated Agency/30% 141 42 21 21
i - N i New Construction Private/15% 937 141 56 84
SUBTOTAL 1 1,078 183 77 105
ui
� � Substantially Rehabilitated Private/15% 0 0 0 0
a ` v
N r N `r New Construction Private/15% 76 11.4 4.6 6.8
SUBTOTAL 76 11 5 7
To Be BuIlUProvlded Over Remaining Protect Term Private/15% 0 0 0 0
TOTAL UNITS OVER TERM OF PLAN 1,372 227 95 132
TOTAL ALL PROJECT AREAS -SUMMARY OF UNITS
SUBTOTAL PRIOR TO 12/31/94 5,041 766 308 457
SUBTOTAL- 1ST TEN YEARS 3,019 485 200 285
SUBTOTAL -2ND TEN YEARS 3,407 516 208 309
To Be Built/Provided Over Remaining Project Term Private/15% 767 115 46 69
TOTAL UNITS Ovcn r cru i ur ra-AN 12,234 1,882 762 I 1,119
N New Construction Private/15% 541 81.2 32.5 48.7
SUBTOTAL 543 82 33 49
ISubstantiallyRehabilitated Private/15% 0 0 0 0
1/ Includes projects currently under construction.
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Inventory of Existing Deed -Restricted Units
The Agency is obligated under Section 33413 (b) of the Redevelopment Law to ensure
that 30% of all Agency developed or substantially rehabilitated units within the Project
Areas are made available at affordable housing costs to very low, low and moderate
income persons or households6. Additionally this section of the Redevelopment Law
provides that 15% of all units developed or substantially rehabilitated within the Project
Area must be made available at affordable housing costs to very low, low and moderate
income persons or households.
To satisfy the Agency's production needs, units that are either developed or
substantially rehabilitated must be subject to covenants. Units created after 2001 must
carry 45-year affordability covenants for single family units and 55-year affordability
covenants on multifamily 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. The Agency
may also purchase 55-year affordability covenants on multifamily units.
Table 3 below presents an inventory of the existing deed -restricted units that meet
these requirements. In total, the Agency's affordable housing program has yielded
1,458 affordable units, of which the Agency's inclusionary unit need can be credited
with 1,349 restricted units.8 The 1,349 affordable restricted units are allocated as
follows; 594 are restricted for very low income persons or households, 538 are
restricted for low income and 217 for moderate income. (These figures exclude
manager's units that are included as a part of multifamily housing projects, as well as
units projected to be produced as the Agency continues implementing its affordable
housing program.)
6 Section 50052.5 of 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 120% for rental projects) of the County
median household income.
' 45 years for ownership units or 55 years for rental units. Prior to January 1, 2002, affordability
covenants could be as little as the duration of the redevelopment plan to count for meeting a
redevelopment agency's affordable housing production requirements.
8
Pursuant to Section 33413 (b) (ii) of the Redevelopment Law, the Agency may provide two
indusionary units outside the Project Areas for each required restricted affordable unit.
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AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
TABLE 3
PALM DESERT REDEVELOPMENT AGENCY & PALM DESERT HOUSING AUTHORITY
UST OF INCLUSIONARY HOUSING UNITS
Projects Unit Breakdown
Total Units aR of Units of I of Units of 6 of Units of Total i of
in Project Very Low Low Mod Affordable Units
Through June 1994 Total
PC -A One Quail Place/72-600 Fred Wanng Dnve 156/1 BR, 228/2 BR 384 133
PC -A Pueblos/ 73-695 Santa Rosa Way 15/1 BR 15 13
PC -A Neighbors/ 73-535 Santa Rosa Way 24/2 BR 24 14 I
PC -A Catalina Gardens•/ 73-600 Catalina Way 48/ Studio, 24/1 BR 72 49
PC -A 150/1 BR 150/147 81
Las Serenas*/ 73-315 Country Club Dr./1 Applied
NC CV Self Help HousingNarious Location 11/3 BR 11 0
SR -A Desert Pointe/43-805 Monterey Ave 34/ Studio, 24/1 BR, 64 26
2/2 BR
RC -A San Tropez Apts. 73-373 Country Club Dr. 38/ 1BR, 65/ 2 BR 103 0
IRC Shadow Hills Estates 45-DeepCanyon Unknown 0 I
IRC Shadow HMIs Estates 74-582 Deep Canyon Unknown 0 1
I Subtotal 673 316 1
IJuly 1994 through June 2004
ISR-A
Santa Rosa Apartments 20/ 2BR I 20
PC -A Taos Palms 44-830n Las Palmas Ave 16/ 2BR I 16
MH-OU PPVr ola Palms Mobile Home Pk 43-155 Portola 142 MIS 39 Assisted Ij 142
NC Desert Rose SF Homes 1 124/ 3BR 37/ 4BR 1 161
Building Horizons SF Homes 73-378 & 386
NC Royal Palms 2/ 3BR 2
NC Habitat For Humanities 3/4BR 3
NC IRebecca Road 42-662 &42-740 1 2/2BR I 2
SR -A (California Villas 77-107 Califomia Ave 141/ 1BR 141
SR -A Laguna Palms 73-805 Santa Rosa Way
NC Hovely Gardens 74-501 42nd Ave/1
RC Candlewood Shadow Mountain
NC Villas on the Green 77-120 Calif. Dnve
NC
NC
RC
NC
20
12
29
24
0
3
0
97
4/ Studio, 18/ 1 BR, 48 I 27
26/ 2BR
18/4BR,73/ 2 BR, 72/ 162/130 62
3BR Applied
i 26 1 13
3/Studio, 10/ 1 BR, 2/ I 15 I 0
2BR
Cantena Phase 1 12/ 1 BR31B7R2 BR, 2/I 306 31
Pacific Assisted Living 73-685 Catalina Way 1 2/ 1 BR I Unknown 1 0
74-047 San Marino Cir 1/2BR I Unknown 1 0
River Run One 44-555 San Raphael Ave 2/ Studios I Unknown 1 0
Subtotal 1 1 882 1 318
TOTAL UNITS
Credited Total I Credited Total
133 191 I 191 60
13 1 I 1 1
14 3 I 3 7
49 8 8 15
40.5 35 17.5 31
O 11 11 0
26 14 14 24
0 103 51.5 0
0 0 0 6
O 0 0 10
275.5 366 I 297 154
20 0
12 3
29 6
24 105
0 2
3 0
O 2
97 26
27
62 67
13 1 13
O I 8
31 I 0
O I 2
O I 0
O 1 2
0
3
6
105
2
0
2
0
1
4
32
0
Terms of CCSRs
Within/
Outside PA's
Full or 50%
Credit
Credited Total I Credited
60 384 I 384 0 At least 55 Yrs. Full
1 15 I 15 0 At least 55 Yrs. Full
7 24 I 24 0 At least 55 Yrs. Full_
15 72 I 72.0 At least 55 Yrs Full
15.5 147 73.5 At least 55 Yrs 50%
O 11 11.0 30 Yrs from 1991 Full
24 64 64.0 At least 55 Yrs Full
O 103 51.5 30 Yrs. From 1984 50%
6 6 6 30 Yrs From 1984 Full
10 10 10 30 Yrs From 1984 Full
138.5 836 I 711
O 20
1 0
4 39
32 161
O 2
O 0 3
O 0 2
26 18 18 141
5 16
67 0
13 0
8 7
O 0
2 0
O 1
2 I 0
318 I 241 241 I 79
I 1555 1834
593.5 1 607
Private Development with Agency Funded Assistance Currently Underway
NC - Palm Village Apartments 73-610 - 688 Santa
SR Rosa Wy/Substantial Rehab 12 units -addition of 36/ 2 BD 36 18 18 18
24 units
NC Self Help Housing Mede Street 14/ 3 BR 14 14 14 0
INC 18 Acre SFD 47/ 3 BR, 47/ 4 BR 94 0 0 47
NC 26 Unit Rental Senior Housing 26/ 1 BR 26 13 13 13
Subtotal 170 27 27 60
TOTAL 1726 661 620.5 667
538 1 233
18 0
0
47 47
13 0
60 47
696 280
16 48
O 129
O 26
7 15
O I 31
O I
1 I
O I 2
79 1622
20.0 55 years from 1999 Full
16.0 At least 55 Yrs I Full
39.0 30 Yrs/form 1994 I Full
161 0 1 30 Yrs./from 1996 I Full
2.0 130 Yrs From 1998 I Full
3.0 3/30 Yrs. & 1/20 I Full
Yrs
2 0 130 Yrs. From 2000 I Full
141.0 I Full
48.0 155 years from 2003I Full
129.0 55 years from 20031 Full
26.0 I HUD Financed I Full
15.0 30 yrs/or useful Ide I Full
of building
31 0 130 Yrs. From 2002 I Full
2 I 30 Years + 1 Full
1 I 45 Years I Full
2.0 I 30 Years + I Full
638.0 1 I
217.5 11458 1 1349.0 I
O 36
0 1 0
36 55 years Full
14 14 45 Years Full
47 94 94 45 Years Full
0 26 26 55 Years Full
47 170 170
264.E 1628 1519
Key'
PC- PC -A. Affordable units created from existing units through the purchase of affordability covenants. "A" indicated units are owned by Agency.
INC-Units created by new construction.
IRC-Restnctwe Covenant imposed as a condition of development
IMH-OU Mobile home -Horne ownership assistance.
[SR -Units created through the rehabilitation of existing units with the imposition of affordability covenants.
Affordable Units Required
As previously described, Section 33413(b) of the Redevelopment Law 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 period (the
"Planning Period") be affordable to low and moderate income households. The
Redevelopment Law also requires that 50% of the 30% Units and 40% of the 15%
Units be specifically limited and affordable to very low income households. These
ROSENOW SPEVACEK GROUP, INC. PAGE 16
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
affordable housing production requirements should be met during this planning period,
which ends on June 30, 2014.
Based upon the forecast of housing construction presented earlier and the Agency's
inventory of affordable housing projects completed to date, Table 4 presents the
computation of the Agency's affordable housing production requirement for the
planning period, as well as the entire duration of each of the Redevelopment Plans.
PALM DESERT REDEVELOPMENT AGENCY
RECONCILIATION OF AFFORDABLE INCLUSIONARY UNITS
SECOND TEN YEAR HOUSING STRATEGY ( COMPLIANCE) PLAN
2004/05-2009/09 & 2009/10.2013/14
TIME FRAME
Through 6-30-94 (Actual) Agency Developed 1/
Through 6-30-94 (Actual) Privately Developed 1/
Total Pre 1994/95
Pre 94/94Affordable Inclusionary Units Produced and Restricted
1st 10-Year Planning Period (1994/95 - 2003/04)
Pre 94/95 deficit units allocated for 1st 10 yrs (50% of Needed Units)
Agency Developed -
Privately Developed
Total 1st 10 Yr. Planning Period
2nd 10 -Year Planning Period (2004/05-2013/14)
11ST 5 YEARS -2004/05 -08/09
Pre 94/95 deficit units allocated for 2nd 10 yrs(50% of Needed Units)
Projected Units
Agency Developed -
Pri vatelt Developed
SUBTOTAL
12ND 5 YEARS -2009/10-13114
Pre 94/95 deficit units allocated for 2nd 10 yrs(50% of Needed Units)
Projected Units
Agency Developed -
Privately Developed
SUBTOTAL
Total 2nd 10 -Year Planning Period (2004/05-2013/14)
From 2nd 10 Year End to End of Plans
Duration of Redevelopment Plans 2/
Notes:
1/ Since deficit was created over penod from adoption of the Original Project 1 through 1994, the unit deficit identified under "Pre-1994 will be addressed over a 20 year period.
2/ Duration of Redevelopment Plans are as follows: Original Project 1-2016, Added Territory 2022; Project No. 2 - 2028; Project No. 3 - 2032, and Project No 4-2034.
New Construction
Substantial Rehab.
64 64
4,977 4,977
4,9771 641 5,041
0
2091 2091
19
747
7661
383
631
2,8081 21 2,8101 4221
2,808 2111 3,0191 8681
10
448
458
2291
311
253
513
10
299
308
711.0
638.0
Low/Mod Production
Very Low Production
435.5 275.5
320.0 318.0
TABLE 4
0
d+
Z ' z
Z, a
Q , J (%
O
7 O N
0
154
31
1691
3541 1,3491 755.5 593.5 4811
FIRST 10 YEAR PERIOD INCLUSIONARY NEED ACHIEVED
Carry Over Units = 481 242 2391 1
Units Under Way = 170 107 271
191 114 77
24 12 36 11 5 6
2,892 0 2,892 434 260 174
2,9161 12 2,928 636 380 257
Carry Over Units =
192 115 76
0
479
1 4791
1 3,3951
7671
239
651.21 349.1 266.2 15.6 1 9.6
15.6 1 (31.0) 9.6
0 0 0 0 0
0 479 71.9 43 29
01 479 2641 158 105 (248)
121 3,407 899 538 361 I
01 767 115 69 46 1
1 1,882 1,1211 762t-------1
(189)1
Past Inclusionary, Current Five & Ten Year Inclusionary Unit Need
(95)1
The Agency has actively worked to produce the required number of inclusionary units
over the last ten years, producing over 1,458 affordable units (with an inclusionary
credit of 1,349 units).9 As detailed in Table 4, the Agency has more than met their
inclusionary housing needs for the prior 10 year period (1994/95 through 2003/04).
The Agency has produced a surplus of 481 affordable units that they will apply to this
planning period's projected affordable unit need. Additionally, the Agency has entered
into agreements or undertaken construction of 134 units of affordable housing that will
9 Pursuant to Section 33413 (b) (ii) of the Redevelopment Law, the Agency may provide two
inclusionary units outside the Project Areas for each required restricted affordable unit.
ROSENOW SPEVACEK GROUP, INC. PAGE 17
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
substantially meet their 5-Year unit need. As shown on Table 4, the Agency will
continue its efforts to facilitate the construction or restriction of the remaining 284 units
that will be required to meet the ten year planning period's affordable housing unit
obligation.
Replacement Housing Production Needs
The Redevelopment Law requires that whenever housing occupied by low and
moderate income persons or households are destroyed as part of an Agency project,
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% of the replacement units10 must be
affordable to the same income categories (i.e. very low, low, and moderate) as those
removed. The Agency receives a full credit for replacement units created inside or
outside the Project Areas.
Since the adoption of the last Implementation Plan, the Agency has provided funding
for a necessary infrastructure project that resulted in the destruction of housing
occupied by low and moderate income persons or households.
REPLACEMENT HOUSING OBLIGATIONS
REPLACEMENT HOUSING UNITS REQUIRED
No. of Units Removed/ No. Total No. of Very Low
Total No. of VL, L & M
Project Year of Units Occupied by VL, L Bedrooms Income Income
or M Income Units Units
Widening of Fred Waring
Drive
Hovely Gardens 74-501
42nd Ave/
Las Serenas*/ 73-315
Country Club Dr./1
2000
41/35 91 35 11
REPLACEMENT UNITS PROVIDED -AT 100% OF INCOME TYPE OR LOWER
162 unit project-32
allocated to
replacement
obligation
150 unit project -3-1
bed allocated to
replacement
obligation
Replacement Housing Need Met
32 Units (8-2BD, 21-3BD, 3-
4BD)
3 Units (1 BD)
46
Low
Income
Units
TABLE 5
Moderate
Income
Units
15 1 9
91 32 11 21 0
3 3 0 0 3
94 35 11 21 3
Table 5 above, details the very low, low and moderate income units destroyed by the
widening of Fred Waring Drive in 2000 and the units produced by the Agency to meet
its replacement housing obligation.
The Agency does not anticipate demolishing or removing any additional affordable
dwelling units during this five and ten year planning period.
10 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.
ROSENOW SPEVACEK GROUP, INC. PAGE 18
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Estimated Housing Fund Resources
Housiig Set Aside Tax Increment Funds
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 ("Housing Fund"). The Redevelopment Law requires that these funds be used to
increase, improve, and preserve the community's supply of housing available, at
affordable housing cost, to persons and families of very low, low, and moderate
incomes. Other sources of Housing Fund revenues include interest eamings, bond
proceeds, land sale proceeds, loan repayments, and developer loan proceeds.
Table 6 below, presents staffs forecast of Housing Fund revenues and expenditures for
the first five years of this planning period. The forecast accounts for operational and
project expenditures based on the current budget and are subject to change.
ROSENOW SPEVACEK GROUP, INC. PAGE 19
FIVE YEAR IMPLEMENTATION PLAN -HOUSING COMPONENT
PALM DESERT REDEVELOPMENT AGENCY
1
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
TABLE 6
HOUSING STRATEGY PROGRAM
2 3 4 5 Total
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Beginning Available Fund Balance 14,831,906 6,760,562 5,699,028 8,403,438 14,183,591
Revenues
Tax Increment Revenue 1/ 11,626,760 12,037,086 12,490,830 12,964,207 13,458,197 62,577,081
Interest Eamings 296,638 120,060 83,313 122,271 223,137 845,420
Housing Mitigation 160,000 160,000 160,000 150,000 150,000 780,000
Bond Proceeds -
Other Income - Loan Payoffs 24,000 26,000 28,000 30,000 32,000 140,000
Other Income -1st Trust Deeds - 9,500,000 5,000,000 - - 14,500,000
Subtotal 12,107,398 21,843,147 17,762,143 13,266,478 13,863,335 78,842,500
Total Resources 26,939,304 28,603,709 23,461,171 21,669,916 28,046,926
Expenditures
Bond Debt Service Payments /2 4,299,330 4,301,813 4,300,393 4,294,858 4,299,535 21,495,929
Administrative Costs 3/ 924,915 1,029,911 1,075,000 1,122,184 1,171,562 5,323,572
SB 2557 fee 4/ 176,912 184,367 192,140 200,243 208,692 962,354
New Bond Debt Service
Subtotal 4,476,242 4,486,180 4,492,533 4,495,101 4,508,227 22,458,283
Projects & Programs Costs
Rental Assistance Program (CP) 50,000 260,000 525,200 795,704 1,071,618 2,702,522
Acquisition Rehabilitaion and Resale 250,000 260,000 275,000 280,500 286,110 1,351,610
Mortgage Assistance Program (CP) - 50,000 101,000 153,020 206,080 510,100
Self Help Housing - 450,000 450,000 - - 900,000
Home Buyer Assistance Program (CP) 300,000 300,000 300,000 300,000 300,000 1,500,000
Multi -Family Rehabi/itatlon(OwnerOccupied) - 25,000 25,000 - 50,000
Home Improvement Program Comp 1 to 6 350,000 300,000 300,000 300,000 300,000 1,550,000
Property Acquisition -Senior Housing New Construction 4,000,000 - 2,000,000 6,000,000
Desert Rose Cost to maintain affordability (loci 2TD increases) 50,000 65,000 80,000 95,000 110,000 400,000
Portola Palms Mobile Home Park 2,500 2,500 2,500 2,500 2.500 12,500
New Multi -Family Acquisition -- -
City Reimb 40 Acres + Int/Site Prep 2,700,000 - 2,700,000
Projects Slated from Non -Taxable Bond Issue:
Palm Village Apts Purch/Rehab & Subsidy - 6,000 7,500 7,500 7,500 28,500
Mutli-FamilyAcq/ Rehab (Country Club Estates, Laguna Palms) 3,000,000 1,700,000 500,000 5,200,000
Future Projects:
New Construction for Sale (Balance of 18 acres) 9,000,000 15,000,000 4,000,000 28,000,000
New Multi -Family Construction - 1,000,000 13,500, 000 14,500,000
New Construction Subsidies 24,000 32,000 40,000 96,000
Subtotal 15,702,500 18,418,500 10,565,200 2,991,224 17,823,808 65,501,232
87,959,516
Total Expenditures 20,178,742
Ending Available Fund Balance 6,760,562
1/ For Tax Increment Revenue growth @ 3% per annum
21 Based upon City
3/ Admin. Costs growth at 5, professional services growth at 2.5%
4/ Represents net SB 2557 fee. Housing Fund is charged its proportional share of this County Charge.
22,904,680
15,057,733
7,486,325
5,699,028 8,403,438 14,183,591
22,332.035
5,714,891
Targeting of Housing Fund Expenditures
As set forth by Section 33334.4 of the Redevelopment Law, each agency shall expend,
over the duration of the compliance plan, the moneys in the Housing Fund in proportion
to the community need, both in terms of the income categories and the number of
senior households assisted.
Income Categories Assisted
According to the City's 2004 Housing Element, the current RHNA figures for the City
cover the time period of 1998 through 2005. Table 7, taken form the Housing Element,
ROSENOW SPEVACEK GROUP, INC. PAGE 20
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
shows the Citywide need for 215 high income units, 85 moderate income units, 67 low
income units, and 77 very low income units.
TABLE 7
City of Palm Desert
Future Housing Needs by income
(RHNA Needs per SCAG)
1998-2005
Income Category Units
Very Low Income 77
Low Income 67
Moderate Income 85
High Income 214
Total Units 443
Pursuant to Section 33334.4(a) of the Redevelopment Law, Housing Fund
expenditures over the period of the Implementation Plan must be expended for very low
and low income persons at a minimum in the same proportion to the City's fair share of
the Regional Housing Need Assessment (RHNA) unit need for very low, low and
moderate income units. Based on the figures detailed in Table 8 below, the Agency's
Housing Fund expenditures must be allocated so that at a minimum 29.3% of the funds
are expend to assist low income persons and at a minimum of 33.6% are expended on
very low income persons .
Table 8
Housing Set Aside Funds
10 Year Funding Target Allocation
Based Upon 1998-2006 RHNA
Income Units Minimum
Category % Allocation
Very Low 77 33.6%
Low 67 29.3%
no
Moderate 85 minimum
Total 229
Family and Senior Housing
Pursuant to Section 33334.4(b) of the Redevelopment Law, Housing Fund
expenditures for senior housing over the period of the Implementation Plan must be
expended in proportion to the community's population of that age, according to the
most recent Census. According to the 2000 Census, 11,410 (27.4%) of the City's
41,284 residents were 65 years of age or more. As such, not more than 27.4% of the
Agency available housing fund revenues may be expended on senior housing projects
during this Planning Period.
ROSENOW SPEVACEK GROUP, INC. PAGE 21
Age
Under 65
65 or Over
Total Units
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
TABLE 9
City of Palm Desert
Population Distribution of Persons
65 Years of Age or Older
Number of Persons
29,874
11,410
41,284
Source 2000 US Census data
Projected Housing Fund Expenditures
ok
72.4%
27.6%
100.0%
Table 10 presents a summary of the Agency's proportional housing expenditures based
on planned projects described in the next section of this Housing Strategy, and the
thresholds set forth above.
TABLE 10
10 Year Housing Strategy Plan Projected
Projected Housing Fund Resources 10 Year
Totals
Beginning Cash Balance $14,831,906
Projected Tax Increment Set -Aside Rev. 136,172,020
Other Revenue Income to Housing Fund 2,669,561
Subtotal $153,673,487
Total Debt Service/Admin & Operations (49,221,023)
Net Revenue Available for Projects & Programs $104,452,464
10 Year Estimated Allocation of Funds by Income Group
RHNA %
33.62%
29.26%
37.12%
100.00%
Income Group/ Minimum Expenditures
Very Low
Low
Unrestricted (very low, low & moderate)
Senior Citizen Housing Allocation
Senior Population % (Limitation) 27.6%
Project Amount
$35,121,571
30, 560, 328
38,770, 565
$104,452,464
$28,828,880
•
ROSENOW SPEVACEK GROUP, INC. PAGE 22
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Potential Affordable Units by Year
Table 11 presents the Agency's estimate of affordable housing units that will be produced or provided
during the next 5 year period.
TEN YEAR AFFORDABLE HOUSING COMPLIANCE PLAN TABLE 11
PALM DESERT REDEVELOPMENT AGENCY INCLUSIONARY HOUSING PRODUCTION TIMELINE
(Program / Project Affordable Units Produced by Year
2004-05 2005-06 2006-07 2007-08 2008-09 Total
VL L/M VL UM VL UM VL 1 UM VL UM VL 1 UM
Palm Village Apartments
18 Acre Housing Development/ Single Family
Self -Help Housing Program
Senior Housing Rental Project
Senior Housing Rental Project
Sares Regis Project Density Bonus
(TOTAL PROGRAM
18
18
14
94
13
13
0 32
5 5
18 18
0 94
14 0
13 13
5 5
0 32
181 18 141 94 13 45 51 51 0 0 501 162
TOTAL AFFORDABLE (NITS 212
Other Funding Sources for Housing Programs
All potential sources of funding will be actively pursued by the Agency in its efforts to
implement the Citv's Housina Element and Housing Strateay. Key to this effort
continues to be the establishment of relationships between public entities (especially
the City) and the private sector.
Proposed Affordable Housing Initiatives
Despite the fact that the Agency's housing program has produced a surplus of housing
units above the Redevelopment Law's requirements for the last 10-Year Planning
Period the Agency will continue to implement its housing program in the City to provide
additional affordable housing units to meet the current Planning Period's inclusionary
unit need. The current projects and programs proposed by the Agency include the
following.
ROSENOW SPEVACEK GROUP, INC. PAGE 23
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Planning Period Housing Projects and Programs
The Agency will continue implementation of affordable housing projects throughout the
Project Areas and Citywide over the balance of the 10-year planning period. In that, the
Agency's recent housing production activities have resulted in a substantial number of
affordable housing units being created, reserved or produced. During the current planning
period, the Agency will concentrate its efforts in generating additional units to meet its
inclusionary requirements and Housing Element goals Citywide. Future implementation
activities will fall into the following categories:
• Palm Village Apartments: 73-610-688 Santa Rosa Way- Reconstruction/Substantial
Rehabilitation of 12 units and construction of an additional 24 units of which all are to
be 3 bedrooms. All Units will be restricted and affordable for a period of not less
than 55 years. It is anticipated that 18 units will be reserved for very low households
and 18 units will be reserved for low income households
• Self Help Housing -Merle Street - The Agency will continue its self-help housing
program, producing 14 3 bedroom ownership dwellings, all reserved for very
low income households. The homes will be covered by a 45 year affordability
covenant.
• Construction of 95 large family single family homes on an 18 acre site. The 3
and 4 bedroom homes will be reserved for low and moderate income
households. The homes will be covered by a 45 year affordability covenant.
• Senior Citizen Housing - The Agency will pursue the development of 26 new
senior housing units within the community. This project is targeted to reserve
13 affordable units for the very low income and 13 units for the low-income
senior. All Units will be restricted and affordable for a period of not less than 55
years.
• Single Family Rehabilitation — The Agency will continue its successful single-
family rehabilitation program. It is estimated that 30 units of affordable housing
will be produced.
• Multifamily Rehabilitation — The Agency will purchase and rehabilitate suitable
rental properties, thereby providing affordable units. 30% of the total number of
units are to be for low and very low income persons of which not less than 50%
of these units will be very low-income affordable housing units.
• Provide Developer Incentive — The Agency will provide financial assistance
were necessary and appropriate to secure restricted covenants on privately
development new single family and multi -family housing units.
Programs identified in the City's Housing Element that are anticipated for
implementation during the next ten year period that are currently under development by
Agency staff are:
ROSENOW SPEVACEK GROUP, INC. PAGE 24
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
• Mortgage Subsidy Program - Very low, low and moderate income owners of
single-family homes, condominiums and mobile homes may receive assistance
if their mortgage payment exceeds 30% of their income. Assistance will be
provided directly by the Redevelopment Agency. In exchange for the
assistance, the home owner will be required to enter into a recorded agreement
with the Agency assuring affordability of the home for45 years.
• Rental Subsidy Program - Owners of single-family homes, condominiums,
mobile homes or apartments who rent to very low, low, and moderate income
tenants may receive direct rental payment assistance from the Agency. The
owner must, in exchange for the assistance, enter into a recorded agreement
with the Agency assuring affordability of the rental units for 55 years.
• Homebuyers Program - The Agency will provide assistance to very low, low,
and moderate income persons in the form of low interest loans to be applied to
down payment, non -recurring closing costs, reduction of the interest rate on the
first trust deed, or any other cost associated with the purchase of a home.
Housing Fund Expenditures 1999/00 through 2003/04
Section 33490 (a)(C)(iv) requires agencies to report the amounts of Housing Fund
dollars utilized to assist affordable units over the previous Implementation Plan Period
(prior 5 year period). The Agency's Housing staff has identified Housing Fund dollars
expended on affordable housing projects since 1999. The following Table 12 details
the Housing Funds spent during this period.
ROSENOW SPEVACEK GROUP, INC. PAGE 25
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
TABLE 12
Housing Fund Expenditures by Residential Project 1999/2000 through 2003/04
Projects
HOUSING FUND 870 20% SET ASIDE
Actual Expenditures Debt Service Admin/Prof Exp 1 Total by Project
One Quail Place/72-600 Fred Waring Drive 8,489,219 8,489,219
Pueblos/ 73-695 Santa Rosa Way 17,687 266,567 284,254
Neighbors/ 73-535 Santa Rosa Way 520,956 520,956
Catalina Gardens*/ 73-600 Catalina Way 17,687 934,102 951,789
Las Serenas*/ 73-315 Country Club Dr./1 2,817,900 2,817,900
CV Self Help HousingNarious Location 1,173 1,173
Desert Pointe/43-805 Monterey Ave 1,046,987 1,046,987
San Tropez Apts. 73-373 Country Club Dr. -
Shadow Hills Estates 45-Deep Canyon -
Shadow Hills Estates 74-582 Deep Canyon - -
Subtotal 35,374 14,075,731 1,173 14,112,278
Santa Rosa Apartments $ 72,178 72,178
Taos Palms 44-830n Las Palmas Ave 270,627 270,627
Portola Palms Mobile Home Pk 43-155 Portola Ave 736,025 736,025
Desert Rose SF Homes 425,170 425,170
Building Horizons SF Homes 73-378 & 386 Royal Palms
Habitat For Humanities
Rebecca Road 42-662 &42-740 251,171 251,171
California Villas 77-107 California Ave 567,605 2,386 569,991
Laguna Palms 73-805 Santa Rosa Way 2,869,370 629 2,869,999
Hovely Gardens 74-501 42nd Ave/1 7,634,701 7,634,701
Candlewood Shadow Mountain - -
Villas on the Green 77-120 Calif. Drive
Canterra Phase 1 -
Pacific Assisted Living 73-685 Catalina Way 864 - 864
74-047 San Marino Cir 166,193 166,193
River Run One 44-555 San Raphael Ave - - -
Subtotal 1 12,155,671 838,232 3,015 12,996,918
TOTAL UNITS
Palm Village Apartments 73-610 - 688 Santa Rosa
Wy/Substantial Rehab 12 units -addition of 24 units 1,050,680 177,001 1,227,681
Self Help Housing Merle Street
18 Acre SFD 2,151,313 2,151,313
26 Unit Rental Senior Housing
Transitional Housing 10,000
Subtotal 3,201,993 177,001 3,378,994
Administrative Costs I 7,733,334 7,733,334
Professional Services ' 1,115,487 1,115,487
HIP Program 240,552 240,552
Subtotal 1 7,973,886 - 1,115,487 9,089,373
TOTAL 1 23,366,924 14,913,963 1,296,676 39,677,582
*Indicates Senior Project
**This is a Note Receivable provided under a Development Agreement and payments are only due when there is Positive Net Cash Flow from the property
with a balloon payment for all amounts due in 30 years.
ROSENOW SPEVACEK GROUP, INC. PAGE 26
AFFORDABLE HOUSING STRATEGY & COMPLIANCE
PALM DESERT REDEVELOPMENT AGENCY
Housing Stipulation
On May 15, 1991, the Riverside County Superior Court entered a final judgment
incorporating a Stipulation for Entry of Judgment among the Agency, the Westem
Center on Law and Poverty, Inc. and California Rural Legal Assistance in connection
with litigation filed over the adoption of the Redevelopment Plan for Project Area No. 1.
On June 18, 1997 (Amendment No. 1) and again on September 20, 2002,
(Amendment No. 2) the Court entered amendments to its 1991 judgment, incorporating
Stipulations Amending Stipulation for Entry of Judgment. Under the terms of the
Stipulation, as amended, the Agency has generally agreed to use its 20 percent set
aside funds, and other tax increment revenues, if necessary, to develop, rehabilitate, or
otherwise financially assist a certain number of affordable housing units and to meet
certain housing needs of the City.
TABLE 13
HOUSING STIPULATION PRODUCTION NEEDS
Income Housing Production Requirements Total Housing Requirements
Level Stipulation Production Future Construction Need Stipulation and Future
Required by 2006 Based on RHNA Construction Need
Need Provided Deficiency Need Provided Deficiency Need Provided Deficiency
Very Low 578 505 73 77 56 21 655 561 94
Low 505 453 52 67 71 -4 572 524 48
Moderate 122 194 -72 85 0 85 207 194 13
Total 1,205 1,152 53 229 127 102 1,434 1,279 155
Table 13 above details the Agency's progress to date in meeting the unit requirements
of the Stipulation. Agency activities as outlined in this Strategy are designed to meet
the dual requirements of the Redevelopment Law's inclusionary housing production
standards and the units required under the Stipulation.
ROSENOW SPEVACEK GROUP, INC. PAGE 27
Affordable Housing Strategy & Compliance Plan
Palm Desert RedevelopmentAgency
Housing Element Consistency
Because this Housing Strategy focuses on providing housing for very low, low
and moderate income households who are generally the most difficult segment of
the community for whom to provide housing, it is clearly consistent with the
Housing Element's goal to provide housing for all economic groups within the
Project Area. Both this Strategy and the Housing Element state there is a definite
need to assure an adequate supply of housing for the lower income segments of
the community.
A major focal point of the goals, policies, and objectives of the Housing Element is
to provide housing for all economic segments of the Project Areas, especially
lower income families. Because the major goal of this Strategy is also to provide
housing for these lower income households, and the proposed plans and
programs for improving the supply of affordable housing in the Project Area
presented in this Strategy are similar to plans and policies of the Housing
Element, there is clearly consistency between this Compliance Plan and the
Housing Element.
ROSENOW SPEVACEK GROUP, INC. PAGE 28