HomeMy WebLinkAboutRes No. 558 - Placement Housing Pln 4 Country Village Apts.PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 558 APPROVING THE
REPLACEMENT HOUSING PLAN FOR COUNTRY VILLAGE
APARTMENTS
SUBMITTED BY: JANET MOORE, DIRECTOR OF HOUSING
DATE: APRIL 23, 2009
CONTENTS: RESOLUTION NO. 558
REPLACEMENT HOUSING PLAN
Recommendation:
That the Agency Board waive further reading and adopt Resolution
No. 558 , approving the Replacement Housing Plan for the Country
Village Apartments.
Executive Summarv:
The Redevelopment Agency is required by law to adopt a Replacement Housing Plan
whenever the Agency takes action that would lead to the destruction or removal of
dwelling units from the low and moderate income housing market.
As part of the Country Village Apartment project, the Agency has removed 66 apartment
units, of which 56 units were available to low and moderate income households.
According to redevelopment law such removal requires that the Agency 'replace' those
units within four years. The Replacement Housing Plan has been created to identify
designated replacement units that are and/or will be available within the required time
period.
Discussion:
In April of 2008, the Agency approved a Relocation Plan for Country Village
Apartments. All tenants have now been relocated and the Agency has removed the
existing 66 apartment units.
Pursuant to Health and Safety Code Section 33413, the Agency is required to adopt a
Replacement Housing Plan whenever the Agency takes action that would lead to the
destruction or removal of dwelling units from the low and moderate income housing
market in order to ensure that the removed housing will be replaced. The law further
states that such replacement housing will be created within four years.
Staff Report
Adopt Resolution No. 558 approving the Replacement Housing Plan for Country Village
Page 2 of 2
April 23, 2009
A Replacement Housing Plan (the "Plan") has been prepared as a result of the
redevelopment and removal of the Country Village Apartments located at 42-455
Washington Street. Fifty-six of the sixty-six units at Country Village were available to
low and moderate income households and must be replaced within the four year time
limit. The Plan describes and details the housing units (existing and/or approved) that
will be used to 'replace'the housing units removed.
The Country Village site is located within the Project Area No. 4 boundaries and fronts
Avenue of the States. The Project Area No. 4 Committee will review and comment on
the plan at its regular meeting of April 20, 2009. The Housing Commission reviewed the
plan as an informational item at its regular meeting of April 8 th , 2009. In addition, the
plan has been available for review by the public since April 2 nd 2009.
Staff therefore recommends that the Agency Board approve the Replacement Housing
Plan as presented to comply with the requirements of Health and Safety Code Section
33413.
Submitted by:
ihoolmoore
Director of Housing
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RESOLUTION NO. 558
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING THE REPLACEMENT HOUSING PLAN FOR
COUNTRY VILLAGE APARTMENTS
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The Palm Desert Redevelopment Agency ("Agency") is required to
adopt a Replacement Housing Plan that details the measures the Agency will take to
replace affordable housing units within four years of removal of said units ("four-year
period").
Section 2. As part of the Country Village Apartments project ("project"), the Agency has
removed 66 apartment units, of which 56 were available to very low, low, and moderate
income households.
Section 3. The Agency hereby adopts the Replacement Housing Plan (the "Plan")
attached hereto and incorporated herein by this reference, which details the measures
the Agency will take to replace all affordable housing units removed in connection with
the project, including a description of the number of affordable housing units that were
already available in the Agency's inventory of such units, when the 56 units were
removed in connection with the project.
Section 4. The Plan describes the affordable housing units, existing and/or approved for
construction, that will be available within the four-year period to replace all affordable
housing units removed as part of the project.
Section 5. The Executive Director of the Agency shall have the authority to implement
and administer the Plan in accordance with its terms so long as such action is not
inconsistent with the Plan's intent.
PASSED, APPROVED AND ADOPTED by the Palm Desert Redevelopment
Agency, this _ day of _ 2008 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, Secretary
Robert A. Spiegel, Chairman
RESOLUTION NO. 558
REPLACEMENT HOUSING PLAN
FORTHE
COUNTRY VILLAGE APARTMENTS
42-455 Washington Street
Prepared for
THE PALM DESERT REDEVELOPMENT AGENCY
By
Overland, Pacific & Cutler, Inc.
41555 Cook Street, Suite 250
Palm Desert, California 92260
(760) 776-1238
March 25, 2009
Replacement Housing Plan v3.040309
RESOLUTION NO. 558
1. INTRODUCTION
11. PROPOSED DEVELOPMENT CONCEPT 3
111. UNITS TO BE REPLACED 5
IV. ANNUAL INCOME RESTRICTIONS 7
V. LOCATION OF REPLACEMENT HOUSING 8
VI. FINANCING THE REPLACEMENT HOUSING 9
V11. NON -APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION 10
VIII. TIME TABLE FOR REPLACEMENT HOUSING 11
IX. SUMMARY 12
Replacement Housing Plan
RESOLUTION NO. 558
The Palm Desert Redevelopment Agency ("Agency") acquired a 66 unit multi -family housing
development located at 42-455 Washington Street in 2005. The property was in need of substantial
deferred maintenance. In early 2006, the Agency engaged a professional consulting firm to undertake a
detailed technical evaluation of the existing improvements and an overall assessment of the site to
determine its best use. As a result of the evaluation, the Agency determined that the physical condition
of the property did not make it cost effective to retain the existing structures and rehabilitate it. Instead,
the Agency has demolished the existing improvements.
Section 33413(a) of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.)
requires that whenever dwelling units housing persons and families of low or moderate income are
destroyed or removed from the low and moderate income housing market as part of a redevelopment
project, which is subject to a written agreement with a redevelopment agency or where financial
assistance has been provided, the agency shall within four years of the destruction or removal,
rehabilitate, develop, construct, or cause to be rehabilitated, developed, or constructed ' for rental or
sale to persons and families of low or moderate income, an equal number of replacement dwelling units
that have an equal or greater number of bedrooms as those destroyed or removed units at affordable
housing costs within the territorial jurisdiction of the agency. When dwelling units are removed after
January 1, 2002, 100% of the replacement dwelling units shall be available at affordable housing cost to
persons in the same or a lower income category, as the persons displaced from those destroyed or
removed units.
Section 33413.5 of the Community Redevelopment Law requires an agency to adopt a replacement
housing plan whenever the agency executes an agreement for acquisition of real property, or an
agreement for the disposition and development of property or an owner participation agreement which
would lead to the destruction or removal of dwelling units from the low and moderate income housing
market. The plan shall identify the impacts that a particular redevelopment project will have on the
community's supply of low and moderate income housing and detail the measures that the agency will
take to ensure that the appropriate replacement housing is produced within the four year time limit.
Replacement Units must have an equal or greater number of bedrooms as the removed units. The
replacement units must be within the agency's jurisdiction and in standard condition, and must be
affordable to low and moderate income households, for the longest feasible time, as determined by the
agency, but for not less than 45 years for ownership units and 55 years for rental units.
Replacement Housing Plan Page 1
RESOLUTION NO. 558
56 of the removed units at the 66-unit development described above were determined to be affordable
and 10 were market rate. The units were removed in March of 2009 and the replacement units must be
provided within a four year time frame. Therefore, all replacement units must be available by March
2013.
This Replacement Housing Plan (the "Plan") has been prepared by the Agency as a result of the removal
of the 56 units described above in order to satisfy the requirements for replacement housing
contemplated under the Community Redevelopment Law.
This Plan describes the following:
1) Proposed Development Concept,
2) General location of the very -low, low and moderate income dwelling units which were removed
or destroyed,
3) General location and intentions for the development of the replacement housing,
4) Means of financing such development,
5) Schedule for the construction of the replacement housing, and
6) Period for which these units will remain affordable.
Replacement Housing Plan Page 2
RESOLUTION NO. 558
PROPOSED DEVELOPMENT CONCEPT DESCRIPTION
The Agency is proposing to develop an affordable senior rental apartment complex of approximately 70
units at 42-455 Washington Street, the Agency -owned site where the 56 removed units were located.
The contemplated design concept will incorporate a blend of studios and one -bedroom units in a
neighborhood friendly design.
PROPOSED DEVELOPMENT LOCATION
The 42-455 Washington Street site is located in the southeastern portion of the City of Palm Desert,
west of Washington Street and north of Highway 111 and south of 1-10 Freeway. The City of Palm Desert
is located in Riverside County, approximately 110 miles east of downtown Los Angeles. Neighboring
communities are Rancho Mirage, Palm Springs and Indian Wells. (see Figure 1, following).
C A L I F 0 k N I A
LIC-
PF-11
PIN
77
Figure 1: Regional Development Setting
Replacement Housing Plan Page 3
RESOLUTION NO. 558
The specific site location is at the southwestern corner of Avenue of the States and Washington Street;
generally bounded by Avenue of the States on the north, Washington Street on the east, Dudley Drive
on the south and Warner Trail on the west (see Figure 2, following).
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Michigan Or
EaOlhavan Rd
Woodhaven Or S
42nd Aye
S,.b,e,o Ct
Avenue of the St%,,
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Missouri Or U, 6� Dudley Or
17,
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Edintionough St 1
61
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Figure 2: Development Site Location
Replacement Housing Plan Page 4
RESOLUTION NO. 558
Per the Community Redevelopment Law, 100% of the 56 removed affordable dwelling units shall be
replaced with dwelling units having an equal or greater number of bedrooms. The 56 removed units
were all studio units.
As a result, the replacement units must have at least 56 bedrooms. Based on the income levels of the
persons displaced from the destroyed units, at least 10 of the replacement units must be available at
affordable housing cost to very low income households and at least 20 additional replacement units
must be available at affordable housing cost to very low or low income households. An additional
36 replacement units may be available at an affordable housing cost to moderate income households,
low income households or very low income households.
Table I defines the number of displaced households by income level. The numbers under each
household income category indicate the total households displaced (the number of dwelling units) and
the numbers in parenthesis indicate the total number of bedrooms destroyed for each income level.
Table 1: Displaced Households by Bedroom Size & Income Level
Household Size Very -Low Income Low Income Moderate Income Totals
Studio/One 10 20
Bedroom
(10) (20)
(# Bedrooms)
Replacement Housing Plan Page 5
26 56
(26) (56)
RESOLUTION NO. 558
As described in Table 2, through December 31, 2008 the following affordable housing units/bedrooms
have been developed, or are planned to be developed by 2010, within the Agency's jurisdiction. All such
units are/will be available at an affordable housing cost to low or moderate income households and
subject to a restrictive covenant ensuring such affordability for not less than 55 years for rental units
and 45 years for owner occupied units. Addendum 1, at the end of the Plan, outlines the locations or
proposed locations of these affordable units.
Table 2: Affordable Housing Projects/Banked Units & Bedrooms (December 2008)
Very Low Moderate
Unit Size I Income Low Income Income
Net Banked (Existing) Units/Bedrooms 11/12 18/18 36/53
Projects Units/Bedrooms to be provided 2/2 23/32
(Approved but not yet constructed)
Required Replacement Units At least 10 At least 20 No more than 26
Replacement Housing Plan Page 6
RESOLUTION NO. 558
California Health and Safety Code Sections 50079.5 and 50105 provide that the moderate, low and very -
low income limits established by the U. S. Department of Housing and Urban Development ("HUD") are
the state limits for those income categories. Sections 50079.5 and 50105 direct the Department of
Housing and Community Development ("HCD") to publish the income limits. HUD released new income
limits in February 2008. Accordingly, HCD has filed with the Office of Administrative Law, amendments
to Section 6932 of Title 25 of the California Code of Regulations. The amendments contain the new HUD
income limits prepared by HCD.
The following figures, shown in Table 3, are approved for use in the County of Riverside to define and
determine housing eligibility by income level:
Table 3: Housing Eligibility by Annual Income Level
Area Median: $62,000
Family Size
Very Low
Lower
Median
Moderate
1 Person
$23,300
$37,300
$43,400
$52,100
2 Person
$26,650
$42,650
$49,600
$59,500
3 Person
$29,950
$47,950
$55,800
$67,000
4 Person
$33,300
$53,300
$62,000
$74,400
5 Person
$35,950
$57,550
$67,000
$80,400
6 Person
$38,650
$61,850
$71,900
$86,300
7 Person
$41,300
$66,100
$76,900
$92,300
8 Person
$43,950
$70,350
$81,800
$98,200
Replacement Housing Plan Page 7
RESOLUTION NO. 558
The Agency has several options available to provide replacement housing, including acquisition,
rehabilitation, new construction, and the allocation of "banked" dwelling units from prior development
activity. The Agency has previously funded or caused to be developed, affordable housing projects that
provide surplus dwelling units and bedrooms that can be allocated by the Agency for future housing
obligations. The Agency has a number of "banked" dwelling units/bedrooms to satisfy the majority of its
replacement housing obligation. Such units together with the approved units that have not yet been
constructed, (identified in Table 2 and Addendum 1) constitute a sufficient number of replacement
units.
Replacement Housing Plan Page 8
RESOLUTION NO. 558
The Agency is authorized to finance its activities with moneys from various sources, including the City of
Palm Desert, State of California, United States Government, property tax increment funds, interest
income, Agency bonds, or other available sources.
The existing units to be used for replacement units, have been acquired, constructed or rehabilitated
with various funding sources including, tax increment funds; below market rate financing through the
sale of tax exempt mortgage revenue bonds; redevelopment twenty percent set -aside funds; and
developer funds. Funding for the development of affordable housing units identified in the preceding
section as 'approved but not yet constructed' may utilize a variety of sources including: State or Federal
grants and loans, tax increment funds; below market rate financing through the sale of tax exempt
mortgage revenue bonds; redevelopment twenty percent set -aside funds; and developer funds. Specific
funding for future replacement housing units may be through the use of any combination of the above
described methods and sources. As replacement units, the Agency may count units developed by
private developers pursuant to the City's Density Bonus program provided that units are subject to a
restrictive affordable housing covenant enforceable by the Agency.
Replacement Housing Plan Page 9
RESOLUTION NO. 558
It is hereby found and determined that the replacement housing identified in this replacement housing
plan does not require approval of the voters of the City of Palm Desert pursuant to Article XXXIV of the
California Constitution. A portion of the housing identified in this replacement housing plan is not
subject to the voter approval requirements of Article XXXIV because such housing is or will be privately
owned, not exempt from real property taxes by reason of public ownership, and not financed with direct
long term financing from a public body. In addition, the Agency will not "develop, construct, or acquire"
housing as described in Section 1 of Article XXXIV of the California Constitution because in providing
assistance to developers, the Agency will only monitor construction or rehabilitation of the project and
compliance with conditions of the assistance to the extent of carrying out routine governmental
functions, performing conventional activities of a lender, and imposing constitutionally mandated or
statutorily authorized conditions.
Replacement Housing Plan Page 10
RESOLUTION NO. 558
The Agency has provided a considerable degree of continuing support in the construction and/or
rehabilitation of replacement housing units sufficient to address the replacement requirements of
affordable housing discussed in this Plan. It is the intent of the Agency to use "banked" previously
developed housing units as well as housing units that have been approved but not yet constructed to
fulfill its replacement housing requirement.
The Agency acknowledges that replacement housing units must be affordable in the same, or lower
income categories than those being removed from the low and moderate income housing market and
will ensure that this result is realized.
Further, any units developed as replacement housing units will be completed within four years and will
remain income -restricted for the appropriate period as required by law.
Replacement Housing Plan Page 11
RESOLUTION NO. 558
In summary, a total of 56 bedrooms in 56 affordable dwelling units have been removed.
Based on the 100% replacement criteria by income level, the Agency through a variety of replacement
housing options will replace the 56 bedrooms affordable to very -low to moderate income households by
using previously developed housing units as well as units that have been approved but not yet
constructed. The result of the above actions will yield the required number of replacement dwelling
units as mandated under Community Redevelopment Law.
The Agency recognizes its legal and community responsibilities in this matter and will make a sincere
good -faith effort to accomplish these goals. The Agency retains its option to use other approaches and
strategies not discussed herein to fulfill its replacement housing obligations in a timely manner.
Replacement Housing Plan Page 12
RESOLUTION NO. 558
Addendum I
EXPECTED LOCATION OF
INCOME -RESTRICTED REPLACEMENT UNITS
The following are the actual and expected locations of income -restricted units which will be used to
meet the Agency's replacement obligation of 56 units with not less than 56 bedrooms.
Bedrooms & Income:
Replacement
Scheduled
Location:
Completion:
26 Moderate Income:
Bernard
12/2010
73-582 Catalina Way
and
Sares Regis
Completed
35-751 Gateway Drive
20 Low Income:
Las Serenas
Completed
73-315 Country Club Drive
and
Bernard
12/2010
73-582 Catalina Way
and
L and T Investments
Completed
73-625 Catalina Way
10 Very Low Income
Las Serenas
Completed
73-315 Country Club Drive
It is the adopted policy of the Agency to promote the assimilation of affordable housing throughout the
City to the maximum extent possible in order to avoid concentrations of lower -income housing in
certain neighborhoods.
Replacement Housing Plan Page 13