HomeMy WebLinkAboutRes No. 566 - 5yr Implementation Plan - Affordable Housing Production PlanPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: RESOLUTION NO. 566 A RESOLUTION OF THE PALM
DESERT REDEVELOPMENT AGENCY APPROVING A FIVE-
YEAR IMPLEMENTATION PLAN FOR THE AGENCY'S
REDEVELOPMENT PROJECT AREAS; AND ADOPTING THE
AFFORDABLE HOUSING PRODUCTION PLAN, AND MAKE
FINDINGS APPROVING THE AGGREGATION OF NEW OR
SUBSTANTIALLY REHABILITATED DWELLING UNITS AMONG
THE PROJECT AREAS
SUBMITTED BY: Janet Moore, Director of Housing
Veronica Tapia, Redevelopment Accountant
Catherine Walker, Senior Management Analyst
DATE: November 12, 2009
CONTENTS: Resolution No. 566
Fourth Five -Year Implementation Plan
Housing Compliance Plan
Recommendation
Waive further reading and adopt.
Executive Summary
In 1993, the State of California enacted Assembly Bill 1290 adding Section 33490 to the
California Community Redevelopment Law (CRL) requiring that a Redevelopment
Agency adopt an Implementation Plan every five years which includes the following:
goals and objectives for the Project Areas, programs, potential projects, proposed
expenditures, and the impact to the elimination of blight.
The CRL also requires that this Implementation Plan address the Agency's affordable
housing production and replacement housing needs and achievements.
Background
In December of 1994, December of 1999, and November 2004, the Agency adopted its
first three Implementation Plans. All previous and current 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 CRL, the Agency has held a mid-term public hearing on the progress of each Five-
Staff Report
Resolution No.566 , Fourth Five -Year Implementation Plan
November 12, 2009
Page 2 of 4
Year Implementation Plan and has subsequently prepared a Progress Report for each
plan.
This fourth Five -Year Implementation Plan ("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 Plan 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. The Housing
Compliance Plan 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.
REDEVELOPMENT ACTIVITIES
The fourth Five -Year Implementation Plan (provided under separate cover) has been
prepared as a composite plan for the Agency's four redevelopment project areas. 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: core commercial revitalization, preservation of open space, land acquisition,
infrastructure improvements, and community programming. Opportunities are commonly
encountered during the course of administering the redevelopment plans during the
five-year period. In this case, the Implementation Plan may be amended to effectuate its
purposes.
AFFORDABLE HOUSING ACTIVITIES
The Five -Year Implementation Plan -Housing Component (2009-10 through 2013-14)
and Ten -Year Affordable Housing Compliance Plan ("Compliance Plan") (2004-05
through 2013-14) have been prepared to address the demand for very low, low and
moderate income housing and better utilize both physical and financial resources
available. This Compliance Plan is focused on meeting or exceeding the inclusionary
housing unit production requirements of the CRL. Please refer to the attached
Affordable Housing Compliance Plan Update for further information regarding the
G.\rda\Cathy Walker\Word Data\Final 5-Yr Implementation Plan 11-12-09.doc
Staff Report
Resolution No. 566 , Fourth Five -Year Implementation Plan
November 12, 2009
Page 3 of 4
Agency's compliance with all provisions established under CRL.
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
(but are not limited to): rehabilitation, reconstruction, new construction, single-family
home rehabilitation, multi -family rehabilitation, and provide developer incentives for
affordable housing creation. Programs identified in the City's Housing Element and
programmed for implementation over the next five years include: the Mortgage Subsidy
Program, the Rental Subsidy Program, and the Home Buyers Program.
AGGREGATION OF HOUSING UNITS AMONG THE PROJECT AREAS.
Consistent with the CRL, the Affordable Housing Compliance Plan provides that the
Agency adopt a policy allowing it to meet its 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, as represented in the attached resolution.
Therefore, staff recommends approval of the resolution making findings approving the
aggregation of new or substantially rehabilitated dwelling units among the project areas;
adopting a Five Year Implementation Plan for the Agency's Redevelopment Project
Areas; adopting the Affordable Housing Compliance Plan.
G:\rda\Cathy Walker\Word Data\Rnal 5-Yr Implementation Plan 11-12-09.doc
Staff Report
Resolution No. 566 ,
November 12, 2009
Page 4 of 4
Fiscal Analysis
Fourth Five -Year Implementation Plan
The attached report provides the fiscal analysis for the Agency over the next five years,
however all projects must be approved by the Agency Board prior to implementation.
VISubDitted by:
Veronica Tapia,
44'('0
RDA Accountant
Department Head:
ne oore, Director of Housing
Approves
Joh"/ Wohlmuth, City Manager
�1z� AA&�
Catherine Walker, Sr. Management Analyst
iy, ACM for evelopment
4W RDA
ON )/-)0,-()r
VERiFIED BY Kok_ l i%j}'�
Original on file with City miler` SOffice
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G:\rda\Cathy Walker\Word Data\Final 5-Yr Implementation Plan 11-12-09.doc
RESOLUTION NO. 566
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, California Health and Safety Code Section 33490(a)(1)(A)
requires all redevelopment agencies to adopt an Implementation Plan every five
years, following a duly noticed public hearing; and
WHEREAS, California Health and Safety Code Section 33490(a)(1)(A)
requires the Implementation Plan to 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 California Health and Safety Code Sections 33334.2, 33334.4,
33334.6, and 33413; and
WHEREAS, pursuant to California Health and Safety Code Section 33490,
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, California Health and Safety Code 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 12, 2009, 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:
P6402/0001 /1182170v1 1
for very low, low and moderate income families. As most housing is
to be developed in Project Area No. 2, the effect of such
development will be to more evenly distribute the concentration of
persons of all races, ethnicities and income levels.
C. Each Project Area is of a different size and shape, and 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 2,401 units can be constructed. Project
Area No. 1 (Original and Added Territory) is second with a potential
342 units. Project Area No. 3 follows with 554 potential units and
Project Area No. 4 has the potential for an additional 148 units. The
remaining units to be constructed in Project Area No. 1 (Original
and Added Territory), Project Area No. 3 and Project Area No. 4 will
continue to mimic the racial, ethnic and income characteristics of
the City and Project Areas. Project Area No. 2, which has a vast
amount of potential units, will experience 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.
WHEREAS, the Agency seeks more flexibility to assist affordable housing
units in various areas in 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,
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, 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 day of 2009, by the following vote:
Ayes:
Noes:
P6402/0001/1182170v1 3
Absent:
Abstain:
Chairperson of the Palm Desert
Redevelopment Agency
ATTEST:
Secretary of the Agency
P6402/0001/1182170v1
EXHIBIT B
City of Palm Desert
Percentage of Population by Racial Category 2009
Total Population
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Total Population
Hispanic Oriqin (Any Race)
PA No. 1
PA No. 2
PA No. 3
PA No. 4
23,607
2,877
2,820
10,212
80.06%
90.41 %
87.77%
83.07%
1.21 %
1.36%
1.70%
1.58%
0.56%
0.17%
0.43%
0.41 %
3.47%
2.82%
2.80%
2.85%
0.17%
0.07%
0.00%
0.07%
11.14%
3.23%
4.15%
8.12%
3.38%
1.98%
3.16%
3.92%
28.84%
8.62%
17.13%
19.37%
Source: ESRI Business Analyst Online
City of Palm Desert
Median Household Income 2000-2009
PA No. 1 PA No. 2 PA No. 3
2000 $44,080 $63,944 $50,439
2009 $54,319 $73,805 $61,023
Source: ESRI Business Analyst Online
TABLE 1
City-wide
47,047
83.11 %
1.37%
0.45%
3.28%
0.11%
8.41 %
3.26%
100.00%
21.96%
TABLE 2
PA No. 4 City-wide
$46,221 $48,144
$58,363 $60,345
City of Palm Desert
Percent of Households Below City-wide Median Income 2000 & 2009
2000
2009
Households
% of Households
Households
Total
Below City-wide
Below City-wide
Total
Below City-wide
Households
Median Income
Median Income
Households
Median Income
PA No. 1
9,652
5,338
55.3%
10,454
5,638
PA No. 2
840
311
37.0%
1,394
522
PA No. 3
839
413
49.2%
1,252
613
PA No. 4
4,197
2,199
52.4%
4,829
2,482
City-wide
19,184
10,001
52.1%
21,775
10,803
Notes:
The City of Palm Desert's median income in 2000 and 2009 is $48,144 and $60,345, respectively.
Due to the use of income brackets, percentages are approximations
Source: ESRI Business Analyst Online
TABLE 3
% of Households
Below City-wide
Median Income
53.9%
37.4%
49.0%
51.4%
49.6%
P6402/0001 /1182170vl 5
NOTICE OF PUBLIC HEARING
Notice of Public Hearing Regarding the Fourth
Five -Year Implementation Plan for the Palm Desert Redevelopment Agency
The Palm Desert Redevelopment Agency (the "Agency") is in the process of formulating and
adopting its fourth five-year redevelopment implementation plan for the Agency's four
redevelopment project areas covering fiscal years 2009-10 through 2013-14. The Agency's
redevelopment project areas include Project Area No. 1, Project Area No. 2, Project Area No. 3,
and Project Area No. 4 (the "Project Areas"). As required by Section 33490 of the California
Community Redevelopment Law, Health and Safety Code Sections 33000 et seq. (the "Law"),
the Implementation Plan will contain the Agency's goals and objectives for the Project Areas,
the proposed projects and expenditures for the next five -years, and an explanation of how these
goals, objectives, projects, and expenditures will eliminate blight within the Project Areas and
Implement the requirements of the Law. The Implementation Plan will also contain a Housing
Component that will include a five year plan for housing activities as well as the Agency's Ten
Year Affordable Housing Compliance Plan pursuant to Section 33413(b)(4) of the Law.
This public hearing will also address the Agency's consideration to aggregate new or
substantially rehabilitated dwelling units among all of the Project Areas as permitted by Section
33413(b)(2)(A)(V) of the Law. The Law provides that redevelopment agencies, after
consideration at a public hearing, may aggregate such units in one or more project areas, if they
find, based upon substantial evidence, that the aggregation will not cause or exacerbate racial,
ethnic, or economic segregation.
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD IN CONNECTION
WITH THE PROPOSED IMPLEMENTATION PLAN:
WHAT: Palm Desert Redevelopment Agency's Public Hearing on its Fourth Five -Year
Implementation Plan (Fiscal Years 2009-10 through 2013-14)
WHERE: City of Palm Desert
City Council Chambers
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760)346-0611
WHEN: Thursday, November 12, 2009
4:00 PM
Residents or other interested parties may attend this public hearing to offer comments on the
proposed Fourth Five -Year Implementation Plan. The proposed Draft Implementation Plan will
be available for public review after October 9, 2009 at the City Clerk's office, City of Palm
Desert, 73-510 Fred Waring Drive, Palm Desert, California, 92260. A map of the four
redevelopment project areas accompanies this notice.
If you wish to obtain further information about the proposed Implementation Plan, please contact
Ms. Catherine Walker, Palm Desert Redevelopment Agency at (760)346-0611 ext. 415.
5
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1987;
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Projs, t Area tits. •i hY,c.
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City of Palm Desert
L ._s cry Limits
Project Area No. 1 - Original (1975)
0 Project Area No. 1 - Added Territory (1982) p 1 2
Project Area No. 2 (1987) �
Redevelopment Agency = Project Area No. 3(1991) Miles
Project Areas 0 Project Area No. 4 (1993) November, 2005
Dated this 7th day of October, 2009.
PUB: October 9, 16, & 23, 2009
RA HELLE D. KL SEN, C Y CLERK
CITY OF PALM DESERT, CALIFORNIA
FIVE-YEAR
IMPLEMENTATION PLAN
PALM DESERT REDEVELOPMENT AGENCY
2009-10 THROUGH 2013-14
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346 -0611
Adopted November 12, 2009
Resolution No. 566
i
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
CITY OF PALM DESERT
REDEVELOPMENT AGENCY BOARD
Robert A. Spiegel, Chairperson
Cindy Finerty, Vice Chairperson
Jean M. Benson, Agency Member
James Ferguson, Agency Member
Richard Kelly, Agency Member
REDEVELOPMENT AGENCY STAFF
John M. Wohlmuth, Executive Director
William Strausz of Richards Watson & Gershon, Agency Attorney
Justin McCarthy, Assistant City Manager/Redevelopment
Paul S. Gibson, Finance Director/Treasurer
Janet M. Moore, Director of Housing
Rachelle D. Klassen, City Clerk
Martin Alvarez, Redevelopment Manager
Veronica Tapia, Redevelopment Accountant
Catherine Walker, Senior Management Analyst
ii
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................ 1
BACKGROUND ......................................................................................................................... 3
2010-2014 IMPLEMENTATION GOALS & OBJECTIVES ........................................................ 7
PROJECT AREA NO. 1 .................................................................................................. 8
PROJECT AREA NO. 1 MAP ......................................................................................... 8
PROJECT AREA NO. 1 ACCOMPLISHMENTS ........................................................... 10
PROJECT AREA NO. 1 PROPOSED REDEVELOPMENT PROGRAM ...................... 14
PROJECT AREA NO. 1 BUDGET ................................................................................ 19
PROJECT AREA NO. 2 ........................................................................................................... 21
PROJECT AREA NO. 2 MAP ....................................................................................... 21
PROJECT AREA NO. 2 ACCOMPLISHMENTS ........................................................... 23
PROJECT AREA NO. 2 PROPOSED REDEVELOPMENT PROGRAM ...................... 26
PROJECT AREA NO. 2 BUDGET ................................................................................ 31
PROJECT AREA NO. 3 ........................................................................................................... 34
PROJECT AREA NO. 3 MAP ....................................................................................... 34
PROJECT AREA NO. 3 ACCOMPLISHMENTS ........................................................... 36
PROJECT AREA NO. 3 PROPOSED REDEVELOPMENT PROGRAM ...................... 38
PROJECT AREA NO. 3 BUDGET ................................................................................ 41
PROJECT AREA NO. 4 ........................................................................................................... 43
PROJECT AREA NO. 4 MAP ....................................................................................... 43
PROJECT AREA NO. 4 ACCOMPLISHMENTS ........................................................... 45
PROJECT AREA NO. 4 PROPOSED REDEVELOPMENT PROGRAM ...................... 48
PROJECT AREA NO. 4 BUDGET ................................................................................ 51
ELIMINATION OF BLIGHT ...................................................................................................... 53
IMPLEMENTATION PLAN HOUSING REQUIREMENTS ....................................................... 54
ADMINISTRATION OF THE IMPLEMENTATION PLAN ......................................................... 55
1
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
INTRODUCTION
Redevelopment is an economic tool allowed under California State Law (specifically California
Health & Safety Code Section 33000 et seq. also known as Community Redevelopment Law
(the “Law” or “CRL”)) which assists local governments in eliminating blight from a designated
area, commonly referred to as a project area. Blight consists of both physical and economic
conditions that contribute to a project area’s deterioration. Redevelopment encourages new
development, reconstruction and rehabilitation, creates jobs and generates tax revenues by
helping develop partnerships between local governments and private entities. Redevelopment
can help a community implement a revitalization effort for particular areas such as downtowns,
neighborhoods or industrial areas. Furthermore, the CRL requires that no less than twenty
percent (20%) of tax increment revenue derived from a redevelopment project area be used to
increase, improve, and preserve the supply of housing for very low, lo w and moderate-income
households. Because redevelopment plans are created and adopted on a local level, they
respond to a community’s unique needs and vision. Over 400 cities and counties in California
have adopted redevelopment plans with the goal of revitalizing their communities.
One of the major revenue sources that funds the Agency redevelopment and housing activities
is tax increment revenue. Tax increment revenue is property tax revenue generated from the
growth in a project area’s total property value above the base year property value (determined
when the project area is adopted ) which is allocated to a redevelopment agency to fund
redevelopment efforts. When development (or redevelopment) occurs on a property and/or a
property is sold, it results in an increase in the property’s assessed value and in turn an
increase in property tax that is captured by a redevelopment agency as tax increment. Tax
increment is also generated from properties that are not sold or where no new development
occurs when their assessed value is increased by the annual application of the Proposition 13
annual inflationary increase (which is limited to two percent per year). Redevelopment
agencies are entitled to collect tax increment revenue to repay any debt involved in a specific
project or to reinvest the dollars in redevelopment activities within the project area. Of the total
tax increment revenue received by an agency, 20 percent of tax increment revenue must be
allocated to a housing fund specifically to finance increasing or improving housing affordable to
low to moderate income persons or households.
CRL Code Section 33490 requires that redevelopment agencies adopt a five -year
Implementation Plan (“Implementation Plan or Plan”) demonstrating how the goals and
objectives, proposed programs and projects, and planned expenditures for their project areas
will lead to the elimination of blight and implement low and moderate -income housing
requirements.
This Plan is intended to provide an overview of the Agency’s goals and activities to address
the alleviation of blight over the next five years. The Plan is not meant to detail a specific
course of action or to restrict Agency activities to those projects identified within the plan since
market conditions, resources, and priorities change from time to time; rather, this Plan sets
forth Agency “policy” for each project area. This Plan is a “planning document” and does not
2
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
constitute approval of any specific project, program or expenditure; as such, the Agency may
amend this Plan as needed. This Plan must be updated at least once within the five-year
period with the purpose of evaluating the progress of the projects, programs, goals and
objectives towards the elimination of blight. When adopting five-year plans, agencies must
conduct a public hearing and hear testimony of interested parties. The purpose of the hearing
is to review the redevelopment plan and the corresponding Plan for each redevelopment
project area within the jurisdiction and evaluate the progress of the redevelopment projects
and programs.
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
Board. 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.
3
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
BACKGROUND
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 D ecember of 1999 (FY
1999-2004). The third Five-Year Implementation Plan was adopted in November of 2004 (FY
2004-2009). All Five-Year Implementation Plans cover the four (4) adopted redevelopment
project areas that encompass an estimated 11,771 acres in the City’s incorporated territory.
Additionally, pursuant to the requirements of the California Redevelopment Law (“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.
This document is the fourth Five-Year Implmentation Plan for the Palm Desert Redevelopment
Agency (“Agency”) of the City of Palm Desert (“City”) for fiscal years 2009-10 thorugh 2013-14.
This is the Agency’s fourth implementation plan prepared since the enactment of Assembly Bill
1290 which amended the 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 Decemeber 30,1994 with subsequent implementation plans
adopted every 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
revitalizations efforts has been channeled through the adoption and implementation of its
Redvelopment Plans. The Agency is governed by a five-member board which consists of all
the members of the City Council. The Mayor who is appointed by the City Council acts as the
Chairperson for the Agency.
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 Area. The Agency has also made
a substantial effort to improve and increase the City’s supply of affordable housing. The four
4
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
(4) adopted redevelopment project areas encompass an estimated 11,771 acres of the City’s
incorporated territory. Locations of the Agency’s Project Areas are illustrated in Figure 1.
The Redevelopment Plans have been amended from time to time to ensure compliance with
the Law. The most recent amendments eliminated the time limit to incur debt and extended the
life of the Project Areas and their term to collect tax increment by an additional year. Table 1
presents the time and financial limits of each Project Area’s Redevelopment Plan.
Section 33490 of the 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 Proejct Areas and will improve, increase, and preserve 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 Comliance Plan, which is found at the end of this Implementation Plan as Appendix 1.
The Implementation Plan document conforms to the City of Palm Desert’s General Plan and
has been prepared according to guidelines established in the programs and goals outlined in
the current Housing Element of the General Plan.
5
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Figure 1
6
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
The Redevelopment Plans for each of the Project Areas sets forth time and financial
limitations. Table 1 identifies the time and financial limits in each Project Area. It should be
noted that the Agency does not have eminent domain authority.
Redevelopment Plan Limitations Table 1
Plan Limits
Project Area No. 1
Original Area
Project Area No. 1 -
Added Territory
Project Area
No. 2
Project Area
No. 3
Date of Adoption July 16, 1975 November 25, 1981 July 15, 1987 July 17, 1991
Effectiveness of Plan1 & 2 July 16, 2016 November 25, 2022 July 15, 2028 July 17, 2032
$800,000,0004
$1,534,916,881
(2009 adjusted for
CPI)
$150,000,0009
$287,796,915
(2009 adjusted for
CPI)
Time Limit to Incur Debt11 Eliminated Eliminated Eliminated Eliminated
Time Limit on Receiving Tax
Increment and Paying
Indebtedness1 & 2
July 16, 2026 November 25, 2032 July 15, 2038 July 17,2042 July 19, 2044
Tax Increment Dollar Limit $758,000,000 $500,000,0003
$600,000,000-Gross
$200,000,000-Net6
Eliminated
Bonded Debt Limit None7
Project Areas
Project Area No. 4
July 19, 1993
July 19, 2034
1 Pursuant to Assembly Bill 1290 all pre 1994 redevelopment projects were required to adopt specific time limitation.On December 8,1994 the City
Council adopted Ordinances 765, 766, 767, and 768 establishing such limits for the Project Areas No. 1, 2, 3 & 4, respectively.
2 Pursuant to Senate Bill 1045 (Statutes of 2003,Chapter 260),which was enacted into law in 2003,the City Council adopted Ordinances 1082,1083,
1084,and 1085 on December 9,2004 to extend the Redevelopment Plan effectiveness and the time period to collect tax increment of each Project Area
No. 1, 2, 3 & 4, respectively, by one year.
9 The Redevelopment Plan for the Project Area No.2 sets a cap on total bonded indebtedness that may be outstanding at any one time of $150 million.
The Plan also provides for the annual adjustment of the bonded indebtedness cap,expressed in 1987 dollars,in accordance with the changes in the
region’s CPI. Expressed in current dollars, the cap is set at $289,959,266.
5 Project Area No.3 has a net tax increment of limitation of $360 million.Net tax increment is gross tax increment less amounts that are passed through
to taxing agencies and amounts set-aside into the Agency's Low and Moderate Income Housing Fund.
6 The total gross amount of tax increment revenue that may be allocated to the Agency from Project Area No.4 cannot not exceed $600 million.
Additionally,the number of tax dollars,which may be divided and allocated to the Agency,also may not exceed the amount of $200 million,net of the
funds required to be set-aside into the Agency Low and Moderate Income Housing Fund and payments to the Project Area’s taxing agencies pursuant to
cooperative agreements.Both the $600 million gross cap and the $200 million net cap may not be changed except by amendment of the redevelopment
plan for the Project Area.
10 The Redevelopment Plan for the Project Area No.4 places a cap on total bonded indebtedness,which may be outstanding at any one time at $135
million.Such net limitation is exclusive of (1)the amount of any bonded indebtedness issued on behalf of or the proceeds of which are used for the
benefit of the taxing agencies to alleviate financial burden,or detriment made by the Agency pursuant to Section 512 of the Redevelopment Plan;and (2)
the amount of any bonded indebtedness payable from any monies deposited in the Agency’s Low and Moderate Income Housing Fund.
11 City Council adopted Ordinance No.1035,1036,1062,and 1063 amending the Redevelopment Plans for Project Areas No.1,2 ,3 &4,respectively,to
eliminate the time limit to incur debt, pursuant to Senate Bill 211(Statues of 2001 Chapter 741), which was enacted into law in 2001.
3 Per the Sixth Amendment to the Redevelopment Plan for the Added Territory of Project Area No.1,which set a limit of $200 million to the Added
Territory's bonded indebtedness and $500 million to the Added Territory's total tax increment,the Added Territory's tax increment 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.
8 Per the Sixth Amendment to the Redevelopment Plan for Project Area No.1 for the Added Territory adopted on January 24,1991,the Bonded Debt Cap
is exclusive of bonds issued to finance the acquisition of land, construction of buildings, facilities, structures or improvements for taxing agencies.
4 The total tax increment limit for Project Area No.2 is $800 million,adjusted annually based upon the Consumer Price Index (“CPI”).This limit is
expressed in 1987 dollars and is adjusted in accordance with the changes in the region’s CPI . Expressed in current dollars, the limit is $1,546,449,418.
7 At the time of the Adoption of the Original Area of Project No.1 there was no requirement for the Redevelopment Plan to have a Bond Debt Limit.This
requirement for older redevelopment plans has not been changed.
$200,000,0008
$360,000,0005
$100,000,000 $135,000,00010
7
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
2010-2014 IMPLEMENTATION GOALS & OBJECTIVES
Community Reinvestment and Revitalization
The following goals and objectives generally correspond to those included in the
Redevelopment Plans for all Project Areas. 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 and Coordinate Stakeholder Particip ation and Investment. To encourage the
cooperation and participation of residents, businesspersons, public agencies, and community
organizations in the revitalization of the Project Area. To encourage private sector investment
in the development and redevelopment of the Project Area. To coordinate revitalization efforts
in the Project Area with other public programs offered by the City and other public agencies.
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 Responsible Development For Our Community. To encourage the development
of commercial and residential environments which positively relate to adjacent land uses, and
upgrade and stabilize existing uses. To expand the resource of developable land by making
underutilized land available for redevelopment. 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, Infrastructure, and Traffic Circulation. To provide needed
improvements to the community's education, cultural and other community facilities to better
serve the Project Area. To provide needed improvements to the utility infrastructure and public
facilities that service the Project Area. To improve traffic circulation through the reconstruction
and improvement of existing streets in the Project Area. To provide for necessary public
parking to address parking deficiencies.
Initiate Green Projects and Programs. To move energy conservation / efficiency objectives
beyond discourse and demonstration projects to achieve significant quantifiable energy
reduction. To invest municipal resources in measurable sustainable programs.
Provide and Improve Affordable Housing Opportunities. To improve housing and assist
low and moderate-income persons and families to obtain homeownership. To promote the
rehabilitation of existing housing stock where appropriate and promote development of quality,
affordable housing.
8
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 1
Figure 2 – PROJECT AREA NO. 1 MAP
9
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Project Area No. 1 (the “Original Area”) was established by the City Council with approval of
the adopting Ordinance 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;
lots 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 core along El Paseo and
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 existed 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), are
illustrated on the preceding page in Figure 2.
Since its inception, Project Area No. 1 (as amended) has experienced a diversity of
development. The heart of the City’s retail commercial development is located within its
boundaries. Additionally, residential development within the Project Area has been significant .
Specific projects include: One Quail Place, an affordable housing apartment project with 384-
units; Palm Lake Village, a 220-unit apartment project; Hacienda De Monterey, a 180-unit
congregate care facility; 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.
The primary objectives of the Redevelopment Plan for Project Area No. 1 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 , open space, and
other public improvements.
10
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 1 ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
In the last five years, the Agency has completed many successful projects and programs in
Project Area No. 1. Below are descriptions of just a few of these project s. A detailed listing of
all the projects and programs completed between FY2004-05 through FY2008-09 in Project
Area No. 1 is outlined in Table 2 on the following page.
Henderson Community Building
On one of the five parcels which
resulted from the redevelopment of the
Entrada del Paseo Site, the Agency
assisted in funding the design and
development of the Henderson
Community Building. The Community
Building houses the Chamber of
Commerce and has additional space
for various community-based activities.
Catalina Community Room
The Agency assisted in funding
improvements to the Catalina
Community Room, which provides
varied assistance and organizes
events for residents of Agency-owned
affordable housing properties.
El Paseo Revitalization
The revitalization of the El Paseo business
corridor is a phased project, with the
conceptual design complete.
Palm Desert Visitor's
Information Center
On one of the five parcels which
resulted from the Entrada del
Paseo Site, the Agency assisted in
funding the design and
development of the Palm Desert
Visitor's Information Center. The
Visitor's Center is a 8,200 sqf
facility that acts as the City's
primary public information center.
The center is utilized for resident
services, community programming,
and visitor information for Palm
Desert.
Portola Bridge
The purpose of this project was to
provide for City flood control,
improved traffic conditions, and
improved access to the I-10
freeway. The project included the
construction of a four lane bridge
over the Whitewater Storm
Channel, installation of
landscaping to the adjacent areas,
and construction a sound
attenuation wall on the northern
side of Portola to mitigate noise for
adjacent residential communities.
11
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 2 provides a detailed listing of the Agency’s accomplishments in Project Area No. 1
between FY 2004-05 and FY 2008-09.
Table 2
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Utility Undergrounding -
Silver Spur
The Palm Desert Silver Spur Undergrounding replaced all
overhead wires with an underground electrical system
which accommodates various utilities.The Agency
contributed a portion of the project funding for the new
public infrastructure.
January 2005 $3,367,602
Palm Desert Highlands UG
Assessment District
Facilitated conduit financing for residential component of
utility undergrounding.January 2005 $0
Wallaroo Child Care Center
The Agency acquired,renovated,and leased the building,
previously utilized for child care and education,to the
Desert Sands Unified School District for the purpose of an
early childhood education center.
November 2005 $949,194
Palm Desert Visitor's
Information Center
On one of the five parcels which resulted from the Entrada
del Paseo Site,the Agency assisted in funding the design
and development of the Palm Desert Visitor's Information
Center.The Visitor's Center is a 8,200 sq.ft facility that
acts as the City's primary public information center.The
center is utilized for resident services,community
programming, and visitor information for Palm Desert.
January 2006 $4,324,896
Utility Undergrounding -
Highlands
The Palm Desert Highlands Undergrounding replaced all
overhead wires with an underground electrical system
which accommodates various utilities. The Agency
contributed 50% of the project funding for the new public
infrastructure.
June 2007 $3,534,958
Catalina Community Room
The Agency assisted in funding improvements to the
Catalina Community Room,which provides varied
assistance and organizes events for residents of Agency-
owned affordable housing properties.
August 2007 $1,424,217
Living Desert
The Agency purchased easements to provide for public
parking,improving access to environmental and cultural
programming at the Living Desert Zoo and Gardens.The
public parking also provides access to recreational hiking
and biking trails.
January 2008 $1,250,000
2004-05 through 2008-09
Agency Accomplishments in Project Area No.1
12
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 2
(Cont.)
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Portola Bridge
The purpose of this project was to provide for City flood
control,improved traffic conditions,and improved access
to the I-10 freeway.The project included the construction
of a four lane bridge over the Whitewater Storm Channel,
installation of landscaping to the adjacent areas,and
construction a sound attenuation wall on the northern side
of Portola to mitigate noise for adjacent residential
communities.
May 2008 $6,600,000
Palm to Pines East
A portion of the City of Palm Desert's central business
district along HWY 111,from Palms to Pine,was
revitalized.The project included major improvements to
the public infrastructure affecting traffic circulation and
parking deficiencies.
January 2009 $2,157,820
Entrada del Paseo Site
Configuration
The project site is strategically located along the City's
main arterial,HWY 111,and lies adjacent to the City's
central business district,bounded by El Paseo and Fred
Waring.The ill-configured site was successfully
redeveloped by dividing the parcel into five development
pads,all of which were master planned to compliment and
enhance the existing businesses along the Hwy 111
business corridor.The pads provided for a public
information center,public open space,business
development, and a community building.
January 2009 $4,999,075
Eric Johnson Gardens
On one of the five parcels which resulted from the
redevelopment of the Entrada del Paseo Site,the Agency
assisted in funding the design and development of the
Eric Johnson Gardens.The gardens provide for public
open space,community recreational areas,and
preservation of indigenous desert plant life.
January 2009 $3,679,436
Aquatic Center Feasibility &
Design
This is a proposed development,which is under review by
both the City Council and Agency Board.The proposed
public pool/recreational facility is a phased project.The
Agency assisted in funding the initial feasibility study and
concept design which were completed for the purpose of
facilitating a comprehensive project review.
In Progress $63,413
Agency Accomplishments in Project Area No.1
2004-05 through 2008-09
13
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 2
(Cont.)
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Henderson Community
Building
On one of the five parcels which resulted from the
redevelopment of the Entrada del Paseo Site,the Agency
assisted in funding the design and development of the
Henderson Community Building.The Community Building
houses the Chamber of Commerce and has additional
space for various community-based activities.
In Progress $5,668,813
Indian Springs
The Agency is participating in this project by funding the
installation of infrastructure to facilitate the implementation
of a sewer system in a low income residential
development.
In Progress $629,476
Alessandro Alleyway -
Acquisitions
The Alessandro Alleyway project has been scheduled to
be accomplished in phases,with Phase I Acquisitions
complete.The purpose of the project is to improve traffic
circulation,provide accessible public parking,and
reconfigure adjacent arterial access.
In Progress $1,934,863
El Paseo Revitalization The revitalization of the El Paseo business corridor is a
phased project, with the conceptual design complete.In Progress $258,336
El Paseo Courtesy Carts
The Agency initiated an economic development program
which provides free transit to the public within a shopping
corridor.The program also provides information regarding
public access to both commercial and retail centers
throughout the City of Palm Desert as well as Agency
project activity throughout the corridor.
On-Going $897,485
Acquisitions
The Agency acquired parcels of land to promote the
following activities:promote compatible development,
improve surrounding community,revitalize dilapidated
property,rehabilitate the City's central business
districts/commercial corridor/retail corridor,improve
resident access to services,and mitigate blighted
conditions throughout the City.
Portola/Haystack April 2005 $1,259,103
Desert Springs Market Place - Balance Paid in PA2 June 2007 $4,876,412
Larkspur Property April 2007 $4,527,000
Pueblos East January 2008 $737,553
Mc Cormick December 2008 $614,743
Adobe Villas $1,511,208
San Pascual $561,819
Portola Properties $849,014
Total Expenditure 2004-05 through 2008-09:$56,676,436
Agency Accomplishments in Project Area No.1
2004-05 through 2008-09
14
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 1 PROPOSED REDEVELOPMENT PROGRAM
Five Year Work Program for Reinvestment & Revitalization
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 3 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, timing and the Redevelopment Plan goal
or goals that would be achieved1.
1 Costs are subject to change, and completion of these projects may require future action by the Agency.
15
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 1 Table 3
2009-10 through 2013-14
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Portola Avenue Wall &
Sidewalk Improvements
This project will improve the block wall on the east
side of the Portola Avenue Arterial,from Fred
Waring Dr.to Rutledge Way.Sidewalks,
landscaping,and potentially underground utilities
will also be installed.
Public improvements &
Inadequate utilities
September 2009 $974,135 Bonds
Entrada Henderson
Community Building - 12
Acres Site
The project site is strategically located along the
City's main arterial,HWY 111,and lies adjacent to
the City's central business district,bounded by El
Paseo and Fred Waring.The ill-configured site was
successfully divided into five development pads,all
of which were master planned to reflect the existing
businesses along the Hwy 111 business corridor.
The pads provided for a public information center,
public open space,business development,and a
community building.The community building
houses the Chamber of Commerce and space for
various community-based activities.
Impaired development due
to irregular shaped lot &
Public improvements
December 2009 $904,343 Bonds
Fire Station Renovation #33 This project will improve a public facility.
Improvements will include concrete replacement,
bathroom remodels,roof renovation,installation of
ceiling fans,exterior façade improvements,
installation of a patio,remodel of the barracks,and
floor/apparatus refinishing.
Building which is unsafe
and unhealthy for persons
to work & Public
improvements
December 2009 $900,000 Bonds
16
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 1 Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Monterey Ave Widening-Fred
Waring-Ford
This project entails widening a major north/south
arterial street to facilitate the ease of movement
throughout the City,improve traffic flow,and access
to business and future residential developments.
Also,due to the growth in the northern section of
the City,Monterey Ave will benefit from the medians
and turn pockets being constructed as a means of
increasing safety and controlling left turns.
Sidewalks will be built to provide a safe pedestrian
environment.Minor storm drain improvements will
also be added to provide for City flood control.
These improvements will encourage commercial
and residential growth.
Public Improvements &
Depreciated or stagnant
property values
October 2010 $1,000,000 Bonds
Fred Waring Drive Turn-
Pockets
Agency funds will be used to improve traffic
circulation on this major arterial,from San Pasqual
Ave.to Monterey Ave.and from Monterey Ave.to
Magnesia Falls Dr.
Public improvements &
Inadequate utilities
December 2010 $572,710 Bonds
El Paseo Revitalization This project will assist in the revitalization of the City
of Palm Desert’s central business district and
commercial corridor.Located off of Hwy 111,El
Paseo is a densely populated commercial district,
which provides pedestrian access to both retail and
business services for both Palm Desert residents
and visitors.The landscape and lighting
revitalization will encourage energy efficient lighting
and water efficient landscape while maintaining
continuity on the street as a whole.The
revitalization will present a pedestrian friendly
corridor,and aesthetically enhance the public right
of way.The conceptual design is currently in
process.
Public improvements &
Depreciated or stagnant
property values
December 2011 $500,000 Bonds
Public Safety Academy The Agency will contribute to $2M to College of the
Desert for the construction of a 19,000 square foot
public safety academy.
Public improvements June 2012 $500,000 Bonds
17
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 1 Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Community Center This project will enhance and provide additional
recreation facilities for the community.
Public improvements &
Crime
April 2014 $20,000,000 Unfunded
Alessandro Alleyway-
Frontage Road
The Alessandro Alleyway project has been
scheduled to be accomplished in phases,with
Phase I Acquisitions complete.The purpose of the
project is to improve traffic circulation,provide
accessible public parking,and reconfigure adjacent
arterial access.
Public improvements &
Conditions preventing the
viable use of a building or
lot
June 2014 $5,562,655 Bonds
Child Care/Early Education
Program
Provide assistance with capital improvements at
child care facility.
Public improvements June 2014 $500,000 Unfunded
Core Commercial
Rehabilitation
This program will focus on funding projects that
improve access to core commercial areas,including
public infrastructure and parking improvements as
well as other improvements at and around Westfield
shopping center, Highway 111 and El Paseo.
Public improvements &
Depreciated or stagnant
property values
June 2014 $5,000,000 Bonds
Desert Willow Clubhouse This project will fund renovations to a public
recreation facility available for resident use.
Public improvements &
Crime
June 2014 $12,000,000 Unfunded
Desert Willow Hotel This project will provide for infrastructure,parking,
conference center,and public improvements
contiguous to a hotel site to encourage economic
development.
Public improvements &
Depreciated or stagnant
property values
June 2014 $10,000,000 Unfunded
18
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 1 Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Down Payment Assistance
(Indian Springs)
Agency funds will be used to assist in the
installation of infrastructure to facilitate the
implementation of a sewer system in a low income
residential development.Funds will also provide
down payment assistance to qualified residents who
prefer to purchase their units.
Public improvements &
Inadequate utilities &
Depreciated or stagnant
property values
June 2014 $698,340 Cash
Land/Property Acquisition The Agency will acquire property for the purpose of
encouraging economic development,affordable
housing, and open space.
Depreciated or stagnant
property values
June 2014 $15,000,000 Cash /
Bonds /
Unfunded
McCallum Theatre This project will provide for improvements to a
community theatre in order to provide access to
cultural amenities for residents and children's
programs.
Public improvements June 2014 $10,000,000 Bonds /
Unfunded
El Paseo Courtesy Carts This is an economic development program
providing free transit to the public within a shopping
corridor.The program also provides information
regarding public access to both commercial and
retail centers throughout the City of Palm Desert as
well as information of Agency project activity
throughout the corridor.
Public improvements &
High vacancy and low lease
rates
Ongoing Program $1,200,000 Cash
19
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 1
Five Year Work Plan Budget
Table 4 presents the Agency’s five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 1 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected project/program costs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund (“ERAF”) payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a $350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a $5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a $2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or “SERAF”) is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency’s ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
20
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
The cash flow analysis indicates that the Agency will have a negative cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
implemented with alternative funding sources or as a replacement of canceled projects.
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
PROJECT AREA NO. 1 (ORIGINAL AND ANNEX) CASH FLOW ANALYSIS FISCAL YEAR 2010-2014 Table 4
850 2010 2011 2012 2013 2014 BOND FUNDS 5-YEAR TOTAL
Beginning Balances (July 1st)32,263,351 32,626,801 23,980,344 17,769,275 (236,823) 20,875,863
Tax Increment 49,669,931 48,676,532 48,676,532 49,650,063 50,643,064 247,316,122
Other Income 1,531,046 1,119,536 712,078 523,125 520,457 4,406,242
Subtotal - Income 51,200,977 49,796,068 49,388,610 50,173,188 51,163,521 20,875,863 251,722,364
Debt Service 13,533,850 13,542,059 13,539,770 13,548,039 13,554,987 67,718,706
Set-Aside 9,933,986 9,735,306 9,735,306 9,930,013 10,128,613 49,463,224
Pass Thru Payments 21,108,655 20,693,481 20,693,481 21,100,351 21,390,067 104,986,035
Administration 2,897,774 2,749,025 2,749,025 2,778,884 2,809,116 13,983,824
Bond Fund Banking Obligation 1,683,574 1,342,965 1,002,408 1,942,311 2,404,451 8,375,709
Programs/Projects 1,679,688 10,379,688 7,879,688 18,879,688 25,579,688 20,913,843 85,312,283
Subtotal - Expenses 50,837,527 58,442,525 55,599,679 68,179,286 75,866,922 329,839,781
Revenue - Expenditures 363,450 (8,646,457) (6,211,069) (18,006,098) (24,703,401) (37,980) (78,117,418)
Ending Cash Balance (June 30)32,626,801 23,980,344 17,769,275 (236,823) (24,940,224) (37,980) (24,978,204)
1 Additional information on unfunded projects may be found on the Proposed Redevelopment Program List.
Source: Palm Desert Redevelopment Agency
REVENUE
EXPENSES
21
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 2
Figure 3 – PROJECT AREA NO. 2 MAP
22
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
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 preceding page in Figure 3.
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 lots 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 revitalization 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.
23
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 2 ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 2. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 and FY2008-09 in Project Area
No. 2 is outlined in Table 5 on the following page.
CSUSB Health Science Building
The Agency provided for the implementation of
infrastructure and commencement of construction for an
educational facility at the California State University San
Bernardino Campus.
Freedom Park Construction
The Agency provided funding assistance for the
construction of Freedom Park, a regional park, which
directly services two project areas by providing residents
with access to open space and recreational facilities.
24
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 5 provides a detailed listing of the Agency’s accomplishments in Project Area No. 2
between FY2004-05 and FY2008-09.
Agency Accomplishments in Project Area No. 2 Table 5
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Utility Undergrounding-
Sinatra/Portola
The Sinatra Portola Undergrounding replaced all overhead
wires with an underground electrical system which
accommodates various utilities.The Agency contributed to
the project funding for the new public infrastructure.
June 2005 $218,923
Landscape Improvements
The Agency funded landscape improvements to the entry
of the Desert Willow recreational facility in order to meet
new landscape standards as implemented by City
ordinance.
June 2006 $170,449
Via Scena Traffic Signal
Installation
The Agency provided funding for the installation of a new
traffic signal at the entry to a dilapidated commercial
center undergoing redevelopment by a private owner.The
implementation of the signal provided for easy access
from adjacent arterials and provided for access to public
parking.
January 2007 $53,782
Section 29 Assessment
District Bond Issuance
The Agency facilitated conduit financing for private
development of a 260 acre site known as Section 29.April 2007 $0
University Park CFD Bond
Issuance
The Agency facilitated conduit financing for development
of a 258 acre site known as University Park. May 2007 $0
CSUSB Health Science
Building
The Agency provided for the implementation of
infrastructure and commencement of construction for an
educational facility at the California State University San
Bernardino Campus.
May 2007 $4,500,000
Desert Willow Pump
Improvements
The Agency assisted with improvements to the existing
water pump stations/system at the Desert Willow public
recreation facility to improve energy efficiency and water
conservation.
June 2007 $772,577
Freedom Park Construction
The Agency provided funding assistance for the
construction of Freedom Park,a regional park,which
directly services two project areas by providing residents
with access to open space and recreational facilities.
July 2007 $2,592,812
2004-05 through 2008-09
25
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Agency Accomplishments in Project Area No. 2 Table 5
(Cont.)
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Acquisitions
The Agency acquired parcels of land to promote the
following activities:promote compatible development,
improve surrounding community,revitalize dilapidated
property,rehabilitate the City's central business
districts/commercial corridor/retail corridor,improve
resident access to services,and mitigate blighted
conditions throughout the City.
36.5 Acres @ Portola Rd. and Gerald Ford Dr.October 2006 $9,502,512
Desert Springs Marketplace June 2007 $4,876,412
Aquatic Center Feasibility &
Design
This is a proposed development,which is under review by
both the City Council and Agency Board.The proposed
public pool/recreational facility is a phased project.The
Agency assisted in funding the initial feasibility study and
concept design which were completed for the purpose of
facilitating a comprehensive project review.
In Progress $2,247
North Sphere Fire Station
This is a proposed development for a Fire Station in the
northern region of the City of Palm Desert.The Fire
Station would service the northern quadrant of the City
providing emergency and fire assistance to residents.The
Agency provided funding for the initial site plan and
preliminary due diligence.
In Progress $29,464
Monterey Ramp
Modifications
The Agency is assisting in funding improvements to
arterial access from both inbound and outbound directions
of Interstate 10.
In Progress $1,819,422
Desert Willow Well Site
Construction
The Agency is obligated by the Coachella Valley Water
District to provide for well-site development at the Desert
Willow public recreational facility.The well-sites will
accommodate the water usage of future developments in
the surrounding area.
In Progress $105,828
Desert Arc Energy
Easement
The Agency is providing reimbursement for energy
efficiency improvements made at the Desert Arc Facility.
Desert Arc is a local non-profit agency that provides
vocational training,job placement and employment,
residential services,recreational and social opportunities,
and independent living support for those who are
developmentally disabled.The improvements will work to
reduce current energy usage and promote energy
conservation in order to reduce operating costs and
continue to provide assistance to clients.
In Progress $46,071
Desert Willow Pad
Stabilization
The Agency is providing periodic stabilization of open
space located both within and on the perimeter of the
Desert Willow public recreation facility.
In Progress $302,574
Total Expenditure 2004-05 through 2008-09:$24,993,073
2004-05 through 2008-09
26
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 2 PROPOSED REDEVELOPMENT PROGRAM
Five Year Work Program for Reinvestment & Revitalization
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 6 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs and timing, and the Redevelopment Plan
goals that would be achieved2.
2 Costs are subject to change, and completion of these projects may require future action by the Agency.
27
Proposed Projects and Programs for Project Area No. 2 Table 6
2009-10 through 2013-14
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Cal State Street
Improvements
Agency funds will be used to provide for the
implementation of infrastructure and the
commencement of construction for an educational
facility at the California State University San
Bernardino Campus.
Public improvements January 2010 $1,597,368 Bonds
Desert Willow Drive Entry
Landscape
This project is currently in the design process to
install water efficient landscaping improvements
along both sides of Desert Willow Drive to enhance
the aesthetics of the entrance to Desert Willow Golf
Resort.
Public improvements June 2010 $170,000 Bonds
Fire Station Renovation #71 This project will improve a public facility.
Improvements will include concrete replacement,
bathroom remodels,roof renovation,installation of
ceiling fans,exterior façade improvements,
installation of a patio,remodel of the barracks,and
floor/apparatus refinishing.
Public improvements &
Deteriorated and
dilapidated buildings
June 2010 $900,000 Bonds
Desert Willow Improvements-
Greens
The project will provide for renovation of all 18
greens,reshape greenside bunkers and fairway
bunkers,install new bunker drainage improvements,
bunker liners,new sand,and restoration of all lake
edges.
Public improvements September 2010 $909,462 Bonds
28
Proposed Projects and Programs for Project Area No. 2 Table 6
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Monterey Ave Widening-Fred
Waring-Ford
This project entails widening a major north/south
arterial street to facilitate the ease of movement
throughout the City,improve traffic flow,and access
to business and future residential developments.
Also,due to the growth in the northern section of
the City,Monterey Ave will benefit from the medians
and turn pockets being constructed as a means of
increasing safety and controlling left turns.
Sidewalks will be built to provide a safe pedestrian
environment.Minor storm drain improvements will
also be added to provide for City flood control.
These improvements will encourage commercial
and residential growth.
Public Improvements &
Depreciated or stagnant
property values
October 2010 $1,000,000 Bonds
Aquatic Center This is a proposed development,which is under
review by both the City Council and Agency Board.
The proposed public pool/recreational facility is a
phased project,with the initial feasibility study and
concept design completed for the purpose of
facilitating a comprehensive project review.
Public improvements &
Crime
April 2011 $8,000,000 Bonds
Monterey Ave Ramp
Modifications
The project will work to improve arterial access
inbound and outbound from Interstate 10.
Public improvements August 2011 $1,180,578 Bonds
Mid-Valley Bike Path Agency funds will be used for the construction of
6.5 miles of a Class 1 bike path alongside the
railroad and freeway corridor,Monterey Ave.to
Washington St.
Public improvements March 2012 $5,800,000 Unfunded
Gerald Ford Drainage
Improvements
This project will improve regional drainage
infrastructure by installing a new storm drain and
retention basin along Gerald Ford Dr.,from Portola
Rd. to Frank Sinatra Dr.
Public improvements &
Inadequate utilities
June 2012 $4,400,000 Unfunded
Public Safety Academy The Agency will contribute to $2M to College of the
Desert for the construction of a 19,000 square foot
public safety academy.
Public improvements June 2012 $500,000 Bonds
29
Proposed Projects and Programs for Project Area No. 2 Table 6
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Desert Willow Well Sites The Agency will assist with the construction of well-
sites required by CVWD as part of recreation
facilities development.To date,2 of 4 are
complete.
Public improvements &
Inadequate utilities
June 2014 $1,990,435 Cash
Desert Willow Pad
Stabilization
This project consists of periodic stabilization of open
space located within,and on the perimeter of the
Desert Willow public recreation facility.
Public improvements June 2014 $414,422 Cash
North Sphere Fire Station The Agency will assist in funding the construction of
a new four bay University Village Fire
Station/headquarters facility located at the
California State University Palm Desert Campus.
Public improvements June 2014 $7,220,000 Bonds
NS Regional Park This project will facilitate building a regional park on
the north side of town including the following
amenities;sports fields (football,baseball/softball),
concession area,playgrounds,spray features,disc
golf course,picnic areas/shelters,walking paths,
bathrooms and sport courts (example:tennis,
pickleball,volleyball and basketball).The project
may also include a public recreation facility.
Public improvements June 2014 $15,000,000 Unfunded
Country Club Drainage
Improvements
This projected will improve regional drainage
infrastructure along Country Club Dr.,from Cook St.
to Washington St.
Public improvements June 2014 $10,000,000 Unfunded
30
Proposed Projects and Programs for Project Area No. 2 Table 6
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Desert Willow Hotel This project will provide for infrastructure,parking,a
conference center,and public improvements
contiguous to a hotel site to encourage economic
development.
Public improvements June 2014 $12,000,000 Unfunded
Portola @ I-10 The project will work to improve arterial access
inbound and outbound from Interstate 10.
Public improvements June 2014 $4,300,000 Bonds
Core Commercial
Rehabilitation
This program will focus on funding projects that
improve access to core commercial areas,including
public infrastructure and parking improvements as
well as other improvements at and around Westfield
shopping center, Highway 111 and El Paseo.
Public improvements &
Depreciated or stagnant
property values
June 2014 $10,000,000 Bonds
Desert Willow Overflow
Parking Lot
The Agency will assist in funding infrastructure
improvements to accommodate public parking.
Public improvements $950,000 Bonds
31
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 2
Five Year Work Plan Budget
Table 7 presents the Agency’s five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 2 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment received expected to be by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected project/program costs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund (“ERAF”) payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a $350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a $5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a $2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or “SERAF”) is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency’s ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
32
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
The cash flow analysis indicates that the Agency will have a negative cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
implemented with alternative funding sources or as a replacement of canceled projects.
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
PROJECT AREA NO. 2 CASH FLOW PRO FORMA ANALYSIS FISCAL YEAR 2010-2014 Table 7
851 2010 2011 2012 2013 2014 BOND FUNDS 5-YEAR TOTAL
Beginning Balances (July 1st)8,266,097 8,866,242 9,450,264 7,761,976 (7,841,539) 43,926,477
Tax Increment 17,605,015 17,252,915 17,252,915 17,597,973 17,949,933 87,658,751
Other Income 710,779 723,327 735,815 291,750 295,191 2,756,862
Subtotal - Income 18,315,794 17,976,242 17,988,730 17,889,723 18,245,124 43,926,477 90,415,613
Debt Service 6,427,897 6,565,670 6,649,867 6,878,326 7,010,106 33,531,866
Set-Aside 3,521,003 3,450,583 3,450,583 3,519,595 3,589,987 17,531,751
Pass Thru Payments 7,073,248 6,934,838 6,935,438 6,948,986 7,087,965 34,980,476
Administration 618,500 366,130 366,130 367,581 369,052 2,087,393
Programs/Projects 75,000 75,000 2,275,000 15,778,750 23,623,123 44,505,392 86,332,265
Subtotal - Expenses 17,715,649 17,392,220 19,677,018 33,493,237 41,680,233 174,463,750
Revenue - Expenditures 600,145 584,022 (1,688,288) (15,603,514) (23,435,109) (578,915) (84,048,137)
Ending Cash Balance (June 30)8,866,242 9,450,264 7,761,976 (7,841,539) (31,276,647) (578,915) (31,855,562)
1 Additional information on unfunded projects may be found on the Proposed Redevelopment Program List.
Source: Palm Desert Redevelopment Agency
REVENUE
EXPENSES
33
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
34
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 3
Figure 4 – PROJECT AREA NO. 3 MAP
35
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
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 preceding page in Figure 4.
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.
36
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 3 ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 3. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 and FY2008-09 in Project Area
No. 3 is outlined in Table 8 on the following page.
42nd Ave Sidewalk Improvements
The Agency provided funding for public infrastructure and
sidewalk improvements directly benefiting the Hovley
Gardens, Falcon Crest and La Rocca Villas affordable
housing complexes. The improvements provide for
enhanced resident accessibility to transit, community
services, and schools.
37
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 8 provides a detailed listing of the Agency’s accomplishments in Project Area No. 3
between FY2004-05 and FY2008-09.
Agency Accomplishments in Project Area No. 3 Table 8
2004-05 through 2008-09
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
42nd Ave Sidewalk
Improvements
The Agency provided funding for public infrastructure and
sidewalk improvements directly benefiting the Hovley
Gardens,Falcon Crest and La Rocca Villas affordable
housing complexes.The improvements provide for
enhanced resident accessibility to transit,community
services, and schools.
December 2004 $177,405
Public Facility Improvements
The Agency provided for infrastructure development
including the mass grading of a public facility immediately
adjacent to the Hovley Gardens,Falcon Crest and La
Rocca Villas affordable housing complexes.
June 2005 $53,523
Perimeter Landscaping
The Agency assisted in funding the implementation of
landscaping in public rights-of-way in accordance with the
City's landscape ordinance.
June 2005 $16,204
Merle Sewer & Street
Improvements
The Agency provided funding assistance for neighborhood
improvements and the implementation of public sewers
and infrastructure along Merle Street.
June 2005 $845,047
Cook Street Widening
The Agency participated in funding infrastructure and
traffic improvements which will enhance traffic circulation
on a one of the City's major arterial roads.
In Progress $290,828
Total Expenditure 2004-05 through 2008-09:$1,383,007
38
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 3 PROPOSED REDEVELOPMENT PROGRAM
Five Year Work Program for Reinvestment & Revitalization
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 9 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, and the Redevelopment Plan goals that
would be achieved3.
3 Costs are subject to change, and completion of these projects may require future action by the Agency.
39
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 3 Table 9
2009-10 through 2013-14
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Hovley Soccer Park
Improvements
This project will provide for improvements to
infrastructure,landscaping,community gardens,
and parking adjacent to a recreational park.
Public improvements &
Crime
June 2010 $250,000 Cash
Cook Street Improvements Infrastructure improvements will allow for better
traffic flow on Cook Street,from Frank Sinatra Dr.to
Fred Waring Dr.Cook Street is a north/south
arterial that provides for access to the City of Palm
Desert’s central business district,and allows for
traffic to flow to Interstate 10.
Public improvements November 2010 $2,709,171 Bonds
Public Safety Academy The Agency will contribute $2M to College of the
Desert for the construction of a 19,000 square foot
public safety academy.
Public improvements June 2012 $500,000 Bonds
Commercial / Industrial
Rehabilitation
The Project will adress blight among commercial
and industrial uses by developing a program to
assist in the rehabilitation of existing structures.
Deteriorated and
dilapidated buildings
$2,000,000 Unfunded
Desert Willow Hotel This project will provide for infrastructure,parking,
conference center,and public improvements
contiguous to a hotel site to encourage economic
development.
Public improvements June 2014 $3,000,000 Unfunded
40
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 3 Table 9
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Neighborhood Utility
Undergrounding
The Agency is considering the feasibility of a project
for future undergrounding of utilities in Project Area
3 and 4.
Public improvements June 2014 $2,000,000 Bonds
Land/Property Acquisition The Agency will acquire property for the purpose of
encouraging economic development,affordable
housing, and open space.
Depreciated or stagnant
property values
June 2014 $5,000,000 Cash /
Bonds /
Unfunded
Portola @ I-10 The project will work to improve arterial access
inbound and outbound from Interstate 10.
Public improvements June 2014 $8,200,000 Bonds
41
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 3
Five Year Work Plan Budget
Table 10 presents the Agency’s five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 3 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected project/program costs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund (“ERAF”) payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a $350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a $5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a $2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or “SERAF”) is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency’s ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
The cash flow analysis indicates that Agency will have a positive cash flow during the Planning
Period and there is sufficient revenue to support all proposed projects and programs.
42
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
PROJECT AREA NO. 3 CASH FLOW ANALYSIS FISCAL YEAR 2010-2014 Table 10
853 2010 2011 2012 2013 2014 BOND FUNDS 5-YEAR TOTAL
Beginning Balances (July 1st)5,149,710 5,510,423 6,058,988 4,090,135 1,912,996 17,534,706
Tax Increment 4,515,993 4,425,673 4,425,673 4,514,186 4,604,470 22,485,996
Other Income 352,229 361,497 375,456 165,494 173,816 1,428,491
Subtotal - Income 4,868,222 4,787,170 4,801,129 4,679,680 4,778,286 17,534,706 23,914,487
Debt Service 992,323 1,025,923 1,057,300 1,091,140 1,124,428 5,291,113
Set-Aside 903,199 885,135 885,135 902,837 920,894 4,497,200
Pass Thru Payments 2,201,987 2,167,948 2,167,948 2,202,998 2,238,749 10,979,629
Administration 160,000 159,600 159,600 159,845 160,093 799,138
Programs/Projects 250,000 - 2,500,000 2,500,000 3,500,000 14,909,171 23,659,171
Subtotal - Expenses 4,507,509 4,238,605 6,769,982 6,856,820 7,944,163 45,226,251
Revenue - Expenditures 360,713 548,565 (1,968,853) (2,177,139) (3,165,878) 2,625,535 (21,311,764)
Ending Cash Balance (June 30)5,510,423 6,058,988 4,090,135 1,912,996 (1,252,882) 2,625,535 1,372,654
Source: Palm Desert Redevelopment Agency
REVENUE
EXPENSES
43
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 4
Figure 5 – PROJECT AREA NO. 4 MAP
44
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
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 preceding page in Figure
5.
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 southern
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 f reeway 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.
45
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 4 ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
In the last five years, the Agency has completed many successful projects and programs in the
Project Area No. 4. Below are descriptions of just a few of these projects. A detailed listing of
all the projects and programs completed between FY2004-05 and FY2008-09 in Project Area
No. 4 is outlined in Table 11 on the following page.
UCR- Richard J. Heckmann International Center for
Entrepreneurial Management
The Agency provided a loan to the University of California at
Riverside for the purpose of constructing street and
infrastructure improvements at its Palm Desert Campus. The
Agency also provided the land to facilitate the construction of
a graduate studies building for entrepreneurial management,
which is part of the University of California at Riverside's
Graduate Studies Center.
Freedom Park
Provided assistance for the construction of a 40-acre public
park centrally located, allowing for ease of use by both Palm
Desert residents and adjacent schools. The park provides for
local league and recreational play, and is accessible by all
valley residents.
Fred Waring Widening / Sound Wall
The project widened a major east/west arterial to six lanes to
facilitate ease of movement throughout the City, improve traffic
flow, and access to City businesses and schools. As a result
of the widening, a sound wall has been constructed along the
arterial to mitigate noise along the adjacent residential areas.
46
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Table 11 provides a detailed listing of the Agency’s accomplishments in Project Area No. 4
between FY2004-05 and FY2008-09.
Agency Accomplishments in Project Area No. 4 Table 11
2004-05 through 2008-09
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
UCR- Richard J. Heckmann
International Center for
Entrepreneurial
Management
The Agency provided a loan to the University of California
at Riverside for the purpose of constructing street and
infrastructure improvements at its Palm Desert Campus.
The Agency also provided the land to facilitate the
construction of a graduate studies building for
entrepreneurial management,which is part of the
University of California at Riverside's Graduate Studies
Center.
November
2004 $2,000,000
Warner Trail Storm Drain
The Agency provided funds for the implementation of
public infrastructure to accommodate storm water run-off
and prevent flooding of commercial and residential areas.
June 2005 $2,989,570
Property Acquisition-Casey's
The Agency acquired the site currently known as Casey's
Restaurant in order to assist in the rehabilitation of a
dilapidated/blighted structure.The rehabilitation project
will be phased and both façade and structural
improvements will be implemented.
September
2005 $1,040,114
Palm Desert Country Club Provided assistance to allow for additional units in order to
accommodate private development.June 2006 $0
Freedom Park
Provided assistance for the construction of a 40-acre
public park centrally located,allowing for ease of use by
both Palm Desert residents and adjacent schools.The
park provides for local league and recreational play,and is
accessible by all valley residents.
April 2008 $8,022,216
Fred Waring
Widening/Sound Wall
The project widened a major east/west arterial to six lanes
to facilitate ease of movement throughout the City,
improve traffic flow,and access to City businesses and
schools.As a result of the widening,a sound wall has
been constructed along the arterial to mitigate noise along
the adjacent residential areas.
June 2009 $5,000,000
47
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Agency Accomplishments in Project Area No. 4 Table 11
2004-05 through 2008-09 (cont.)
Project Name Project Description/Highlights Completion
Date
Total
Expenditure
Utility Undergrounding-Palm
Desert Country Club
The Palm Desert Country Club Undergrounding is a
proposed project and will be phased once feasibility is
determined.If approved,a plan will be implemented to
replace all overhead wires and provide an underground
electrical system which accommodates various utilities.
Agency funds have been expended on due diligence to
determine project feasibility.This proposed project
requires property owner approval in order to be
implemented.
In Progress $620,000
Total Expenditure 2004-05 through 2008-09:$19,671,899
48
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 4 PROPOSED REDEVELOPMENT PROGRAM
Five Year Work Program for Reinvestment & Revitalization
Over the next five years, the Agency plans to implement the following redevelopment projects
and programs. Table 12 describes the projects and programs proposed, what blighting
conditions would be eliminated, approximate costs, and the Redevelopment Plan goals that
would be achieved4.
4 Costs are subject to change, and completion of these projects may require future action by the Agency.
49
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 4 Table 12
2009-10 through 2013-14
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Casey's Restaurant The Agency acquired the site currently known as
Casey's Restaurant in order to assist in the
rehabilitation of a dilapidated/blighted structure.
This potential project will be phased and both
façade and structural improvements will be
implemented.
Deteriorated or dilapidated
buildings
December 2009 $845,000 Cash
Ballfield Lights This project will utilize Agency funds to improve
public facilities.
Public improvements &
Crime
January 2011 $800,000 Unfunded
Public Safety Academy The Agency will contribute $2M to College of the
Desert for the construction of a 19,000 square foot
public safety academy.
Public improvements June 2012 $500,000 Bonds
Storm Drain Improvements The Agency is considering the feasibility of a project
for future storm drain improvements in Project Area
No. 4.
Public improvements $2,000,000 Unfunded
PA 4 Fire Station The Agency has set aside approximately 0.75 acres
adjacent to the future Country Village Apartments
for the development of a fire/paramedic station to
serve the residents of Project Area 4.
Public improvements June 2014 $4,000,000 Bonds
Land/Property Acquisition The Agency will acquire property for the purpose of
encouraging economic development,affordable
housing, and open space.
Depreciated or stagnant
property values
June 2014 $5,000,000 Cash /
Bonds /
Unfunded
Undergrounding Facilities of
Regional Arterial
The Agency is considering the feasibility of a project
for future undergrounding of utilities of a regional
arterial in Project Area 4.
Public improvements June 2014 $2,500,000 Bonds
50
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
Proposed Projects and Programs for Project Area No. 4 Table 12
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Neighborhood Utility
Undergrounding
The Agency is considering the feasibility of a project
for future undergrounding of utilities in Project Area
3 and 4.
Public improvements June 2014 $13,380,000 Bonds
51
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
PROJECT AREA NO. 4
Five Year Work Plan Budget
Table 13 presents the Agency’s five-year projected cash flow for non-housing redevelopment
activities in Project Area No. 4 during the Planning Period. Tax increment revenue figures
provided are the gross amounts of tax increment expected to be received by the Agency, prior
to deducting housing set-aside and pass through amounts. Tax increment revenue projections
were based upon conservative growth rates, reflective of the current market conditions. The
cash flow also includes other projected revenues, including interest earnings and
reimbursements. Available bond funds and expenditures have also been included in the cash
flow analysis. Expenses include bond debt service payments, housing set-aside deposits,
taxing agency pass through payments, administrative fees, bond fund banking obligations, and
projected project/program costs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund (“ERAF”) payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a $350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a $5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a $2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or “SERAF”) is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency’s ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
52
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
The cash flow analysis indicates that the Agency will have a positive cash flow during the
planning period due to unfunded projects. Projects listed as unfunded will either need to be
implemented with alternative funding sources or as a replacement of canceled projects.
During the five-year period covered by this Plan, it is possible that the Agen cy will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
PROJECT AREA NO. 4 CASH FLOW ANALYSIS FISCAL YEAR 2010-2014 Table 13
854 2010 2011 2012 2013 2014 BOND FUNDS 5-YEAR TOTAL
Beginning Balances (July 1st)6,661,966 6,686,100 8,628,067 5,911,890 3,595,381 20,997,444
Tax Increment 12,776,161 12,520,638 12,520,638 12,771,051 13,026,472 63,614,960
Other Income 1,069,705 2,256,719 1,004,835 644,489 633,816 5,609,564
Subtotal - Income 13,845,866 14,777,357 13,525,473 13,415,540 13,660,288 20,997,444 69,224,524
Debt Service 2,512,285 2,614,231 2,720,491 2,821,921 2,931,791 13,600,720
Set-Aside 2,555,232 2,504,128 2,504,128 2,554,210 2,605,294 12,722,992
Pass Thru Payments 7,547,215 7,406,271 7,406,271 7,544,397 7,685,285 37,589,439
Administration 362,000 310,760 310,760 311,520 312,288 1,607,328
Bond Fund Banking Obligation - - - - - -
Programs/Projects 845,000 - 3,300,000 2,500,000 1,500,000 20,880,000 29,025,000
Subtotal - Expenses 13,821,732 12,835,390 16,241,650 15,732,048 15,034,658 94,545,479
Revenue - Expenditures 24,134 1,941,967 (2,716,177) (2,316,508) (1,374,370) 117,444 (25,320,956)
Ending Cash Balance (June 30)6,686,100 8,628,067 5,911,890 3,595,381 2,221,011 117,444 2,338,455
1 Additional information on unfunded projects may be found on the Proposed Redevelopment Program List.
Source: Palm Desert Redevelopment Agency
REVENUE
EXPENSES
53
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
ELIMINATION OF BLIGHT
The Agency’s proposed projects and programs detailed previously in this Plan are intended to
eliminate blight in the Project Areas as defined by Section 33030 and 33031 of the CRL. The
blighting conditions addressed by the proposed projects and programs include: inadequate
public improvements and/or utilities, depreciated or stagnant property values, conditions
preventing the viable use of a building or lot, impaired development due to irregular shaped
lots, unsafe and unhealthy buildings, high vacancy and low lease rates, and crime. The
following provides a more in depth discussion of how the proposed projects and programs
eliminate the blighting conditions indentified in Tables 3, 6, 9, and 12.
The Agency is proposing to undertake multiple projects and programs that will improve the
aforementioned blighting conditions (within the Project Areas). These projects and programs
include activities such as landscape, streetscape, traffic circulat ion, sidewalk, sewer system,
pedestrian access, and public facilities infrastructure improvements. With the help of
acquisition and construction projects, the Agency will create open space opportunities and
assist in the development of parks and open spaces. Additionally, providing needed public
improvements, public facilities and infrastructure will help correct problems and improve the
health, safety, and welfare of community residents and workers due to improved pedestrian
and vehicular traffic circulation and access. Transportation improvements can have a direct
impact on property values. Another benefit of the installation of the identified public
improvements is the potential for job creation within the community. Crime as a blighting
condition that can be addressed and alleviated through investments in public recreational
facilities. Studies have documented a direct correlation between providing recreational
facilities and a decrease in criminal activity. The Agency is also proposing projects and
programs that will eliminate unsafe and unhealthy buildings by providing needed rehabilitation
to ensure public safety. Acquisition and consolidation of vacant or underutilized properties will
help eliminate blight from properties that have conditions that hinder their viable use or are
irregularly shaped. By successfully implementing the projects and programs detailed in this
Plan the Agency will help eliminate blighting conditions in the Project Area and spur economic
development.
54
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
IMPLEMENTATION PLAN HOUSING REQUIREMENTS
Pursuant to Law Section 33490(a)(1)(A), the Implementation Plan should contain a list of
programs and projects proposed over the next five years. This provision includes both the
Agency’s non-housing and housing project programs. The Agency’s housing
accomplishments over the past five years and the proposed projects and programs anticipated
by the Agency within the Project Areas are located in the Affordable Housing Compliance Plan.
55
Palm Desert Redevelopment Project Areas
Five-Year Implementation Plan 2009-10 through 2013-14
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 and Affordable Housing Compliance Plan.
APPENDIX 1
AFFORDABLE HOUSING COMPLIANCE PLAN UPDATE
PALM DESERT REDEVELOPMENT AGENCY
FY2004 -05 THROUGH FY2013-14
2009 UPDATE
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
(760) 346 -0611
Adopted November 12, 2009
Resolution No. 566
i
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
City of Palm Desert
REDEVELOPMENT AGENCY BOARD
Robert A. Spiegel, Chairperson
Cindy Finerty, Vice Chairperson
Jean M. Benson, Agency Member
James Ferguson, Agency Member
Richard Kelly, Agency Member
REDEVELOPMENT AGENCY STAFF
John M. Wohlmuth, Executive Director
William Strausz of Richards Watson & Gershon, Agency Attorney
Justin McCarthy, Assistant City Manager/Redevelopment
Paul S. Gibson, Finance Director/Treasurer
Janet M. Moore, Director of Housing
Martín Alvarez, Redevelopment Manager
Rachelle D. Klassen, City Clerk
Veronica Tapia, Redevelopment Accountant
Catherine Walker, Senior Management Analyst
ii
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
TABLE OF CONTENTS
APPENDIX 1 .............................................................................................................................. 1
AFFORDABLE HOUSING C OMPLIANCE PLAN UPDATE ...................................................... 1
PALM DESERT REDEVELOPMENT AGENCY ........................................................................ 1
FY2004-05 THROUGH FY2013-14 ............................................................................................ 1
2009 UPDATE ............................................................................................................................ 1
EXECUTIVE SUMMARY ............................................................................................................ 1
COMMUNITY REDEVELOPMENT LAW AND AFFORDABLE HOUSING COMPLIANCE ... 1
Housing Funds ...................................................................................................................... 2
Housing Production Required Under the CRL .................................................................... 2
Terms of Affordability for Assisted Housing ...................................................................... 3
Replacement Housing Requirements .................................................................................. 4
HOUSING STIPULATION ....................................................................................................... 4
OVERALL EFFORTS TO MEET HOUSING NEEDS .............................................................. 4
INTRODUCTION ........................................................................................................................ 6
Background ........................................................................................................................... 6
LEGAL REQUIREMENTS ........................................................................................................ 10
HOUSING PROGRAM GOALS & OBJECTIVES .................................................................... 11
HOUSING ACCOMPLISHMENTS ........................................................................................... 13
HOUSING COMPLIANCE PLAN CATEGORIES .................................................................... 16
HOUSING COMPLIANCE PLAN CATEGORIES .................................................................... 17
2010-2014 HOUSING GOALS & OBJECTIVES ...................................................................... 18
HOUSING PROJECTS AND PROGRAMS .............................................................................. 19
HOUSING PRODUCTION ........................................................................................................ 24
Inclusionary Housing Production Requirements ............................................................. 25
Time Requirements for Affordability Restrictions ............................................................ 26
Inclusionary Unit Need Estimation .................................................................................... 26
Aggregation of Affordable Units Among All Project Areas ............................................. 29
Status of Agency’s Inclusionary Housing Production ..................................................... 29
Inventory of Inclusionary Units .......................................................................................... 29
REPLACEMENT HOUSING ..................................................................................................... 32
HOUSING FUND ...................................................................................................................... 34
EXPENDITURES BY HOUSEHOLD TYPES ........................................................................... 36
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES ......................................................... 39
ADMINISTRATION OF THE IMPLEMENTATION PLAN ......................................................... 41
EXHIBIT A ................................................................................................................................ 42
1
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
EXECUTIVE SUMMARY
This document is the Housing Compliance Plan ("Compliance Plan") for the Palm Desert
Redevelopment Agency ("Agency"). It serves as a blueprint for current and future Agency
activities in the Agency’s efforts to meet its low and moderate income housing responsibilities.
The Compliance Plan has been prepared in conjunction with the Agency’s 2009 Five Year
Implementation Plan to meet the requirements of California Community Redevelopment Law
(the “CRL”) Section 33490. This Compliance Plan amends the Affordable Housing Compliance
Objectives adopted on November 18, 2004 and presents an updated affordable housing plan
through the duration of the Compliance Period defined below. This Compliance Plan covers
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 (the “Project Areas”).
The Compliance Plan incorporates an update of the Agency’s affordable programs and
housing production activities since 2004, and presents an affordable housing production plan
for housing projects over the remainder of the ten-year compliance period beginning in fiscal
year (“FY”) 2004-05 and extending through FY2013-14 (“Compliance Period”). 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 second five year period (FY2009-10
through 2013-14) of the required ten year period, the next ten year period (FY2014-15 through
2018-19) and until the termination of the Redevelopment Plans.
This Compliance Plan document conforms to the City of Palm Desert’s (“City”) General Plan
and has been prepared according to guidelines established in the programs and goals outlined
in the current Housing Element of the General Plan of the City. This Compliance Plan is
focused on meeting or exceeding the inclusionary housing unit production requirements of the
CRL. This document is not required by the CRL to address satisfaction of the Agency’s
Stipulation regarding affordable housing or the City’s Regional Housing Needs Allocation
(“RHNA”) new construction figures.
COMMUNITY REDEVELOPMENT LAW AND AFFORDABLE HOUSING COMPLIANCE
Article 16.5 of the CRL requires all redevelopment agencies to prepare and adopt affordable
housing compliance plans on a ten year cycle, with updates corresponding with adoption of
their five year implementation plans. The housing compliance plan must identify how a
redevelopment agency will achieve the affordable housing production requirements for each of
its redevelopment project areas. The compliance plan must be consistent with the
jurisdiction's housing element and must also be reviewed and, if necessary, amended at least
every five years in conjunction with the cyclical preparation of the housing element or the
agency’s five year implementation plan.
2
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Housing Funds
The CRL provides redevelopment agencies with a finance mechanism (tax increment housing
set-aside revenues) to fund required affordable housing units. It also defines the type of
projects, programs and activities that may be funded with tax increment housing set-aside
revenues. The CRL requires the mandatory set aside of a least 20% of the tax increment
revenue (“set-aside revenue”) received by an agency from its redevelopment project areas into
a special fund for housing (“Housing Fund”). Housing Funds are required by the CRL to be
utilized to increase, preserve, and improve the community’s supply of affordable housing.
Housing assisted with set-aside revenue must be made available to qualified or targeted
income groups at affordable housing costs pursuant to CRL.1 The Agency pursuant to findings
made at the time of the adoption of the Project Areas has the authority to expend Housing
Fund dollars either inside or outside the Project Areas and aggregate its housing production
activities among all four Project Areas. The Agency with the adoption of its 1999 and 2004
Housing Compliance Plan has taken action to aggregate its new and substantially rehabilitated
units among all Project Areas to more effectively meet housing program objectives.2 The
Agency will consider similar action at the Public Hearing scheduled to consider the adoption of
the 2009 Implementation and Housing Compliance Plan. 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, will not cause or exacerbate racial, ethnic, or economic
segregation.
Housing Production Required Under the CRL
The Agency is obligated under Section 33413(b)(1) of the CRL to ensure that over the life of all
redevelopment plans 30% of all redevelopment agency developed or substantially rehabilitated
units are made available at affordable housing costs to, and occupied by persons and families
of low or moderate income (“targeted income groups”), at least 50% of which must be available
at affordable housing cost to, and occupied by, very low income households.3 Additionally,
1 The CRL 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.
2 Section 33413(b)(2)(A)(ii) of the CRL 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. Section 33413 (b)(2)(A)(v) of the
CRL 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.”
3 Section 50052.5 of Health and Safety Code defines affordable housing cost , as adjusted for family size, 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
3
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Section 33413(b)(2) provides that 15% of all redevelopment agency developed or substantially
rehabilitated units are made available at affordable housing costs to, and occupied by persons
and families of low or moderate income, at least 40% of which must be available at affordable
housing cost to, and occupied by, very low income households.
The Agency’s inclusionary housing unit need was initially established by a detailed review of
housing units built or substantially rehabilitated in the Project Areas from adoption through
June of 1994. Additionally projections of units to be built or substantially rehabilitated from July
of 1994 through June of 2004 were developed and provided in the first Compliance Plan
adopted by the Agency in December of 1994. Since 1994, the 1999 and 2004 Compliance
Plans have reassessed and updated both the number of units constructed or substantially
rehabilitated as well as those anticipated to be developed over the various five, ten year and
remaining life of each of the Project Areas to establish and update the Agency’s inclusionary
housing production unit need.
This Compliance Plan has updated the inclusionary unit need assessment for the Project
Areas, establishing that as of the end of the prior five year period (June of 2009) a total of
8,826 units had been constructed within the Project Areas, since adoption, creating an
affordable housing unit obligation of 1,390 units. The Agency has made an exemplary effort to
meet its housing obligations under the CRL. To date the Agency has provided, by reserving
existing units or developing or assisting new units, a total of 1,707 affordable units of which
1,580 have been credited to meet the Agency’s inclusionary housing need . The Agency has
planned future projects and programs that should result in development or reservation of 200
affordable units over the next five years. The Agency’s efforts to produce affordable housing
since the inception of its housing program in conjunction with its planned housing projects and
programs for the next five year period is expected to result in a surplus of 272 affordable units
at the end of this ten year period. The CRL allows the Agency to carry these units over to the
next five year and ten year periods.
Terms of Affordability for Assisted Housing
In addition to providing the affordable units to targeted income groups, affordable units
developed or assisted with the Agency’s Housing Funds must carry covenants to ensure
affordability and availability. Pursuant to the CRL, units created after 2001 must carry 45-year
affordability covenants for ownership units and 55-years for rental 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 (for the purpose of meeting the Agency’s inclusionary housing unit need).
The Agency may also purchase 55-year affordability covenants on existing multifamily rental
units. Additionally, the Agency may aggregate housing units between all four Project Areas to
satisfy affordable housing requirements.
30% of 110% for rental projects) of the County median household income. Affordability amounts under the
Stipulation for Very Low Income are 25% of 50%.
4
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Replacement Housing Requirements
The CRL requires that whenever housing occupied by low and moderate income persons or
households are destroyed or removed from the low and moderate income housing market as
part of a redevelopment agency project that is subject to a written agreement with the agency
or where financial assistance has been provided by the agency; the redevelopment agency is
responsible for providing replacement units. Replacement units must provide at least the
same number of bedrooms destroyed, and 100% of the replacement units must be affordable
to the same income categories as those removed. Replacement units may be provided at full
credit anywhere within the community.
The Agency has funded and developed a number of projects over the years that have resulted
in the need for replacement housing units. The Agency has followed CRL by assessing the
need and providing and implementing a “Replacement Housing Plan” to provide the required
units in a timely fashion. This Compliance Plan details the Agency’s activities to meet its
housing replacement needs.
HOUSING 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 Western 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 Case No. Indio 51143, entitled City of Palm Springs v. All
Persons Interested on May 15, 1991 and the subsequent 1997 and 2002 Stipulation
Amendments to the 1991 Stipulation for Entry of Judgment (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. The Agency needed to produce 1,205 affordable units by
2006 per the Stipulation. The Agency has produced the required 1,205 units. The Agency will
continue its efforts to meet the requirements of the Stipulation.
OVERALL EFFORTS TO MEET HOUSING NEEDS
The City and the Agency have worked successfully together in meeting the various housing
requirements provided for under the CRL, the Stipulation and the City’s current Housing
Element. Since the adoption of the first Housing Plan in 1993 (the “1993 Housing Plan”), the
Agency with the assistance of the City’s Housing Authority has actively pursued projects,
programs, and activities that meet the Agency’s needs and housing goals. The projects,
programs and activities identified in this Compliance Plan have been designed to significantly
5
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
increase the number of affordable 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.
6
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
INTRODUCTION
This document amends the Agency’s ten year 2004 Housing Compliance Plan (“Compliance
Plan”) for the Palm Desert Redevelopment Agency adopted in November of 2004. In
compliance with Section 33490 of the CRL this document serves as the Housing Component
for the Agency’s Five-Year (2009-10 through 2013-14) Implementation Plan. The Compliance
Plan incorporates an update of the Agency’s affordable programs and housing production
activities since 2004, and presents an affordable housing production plan for housing projects
over the remainder of the ten-year compliance period. 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 low and moderate income
persons or families over the second five year period (2009-10 through 2013-14) of the required
ten year period covered by this Compliance Plan (fiscal years 2004-05 through 2013-14). It
also projects future affordable housing needs for the next ten year period (2014-15 through
2023-24) and until the termination of the Redevelopment Plans.
This Compliance Plan collectively covers 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
This Compliance Plan specifically reviews the need for affordable housing within the
community as it relates to the Agency’s obligations under the CRL. It also acknowledges that
the Agency has additional obligations for affordable housing agreed to under the Stipulation.
This Compliance Plan was adopted along with the Implementation Plan by the Agency
following a duly noticed public hearing held November 12, 2009.
Background
The City Council of the City of Palm Desert (“City”) took action in October of 1974 to establish
the Palm Desert Redevelopment Agency by adopting Ordinance No. 53. With this action the
City embarked on a comprehensive effort to eliminate blighting and a dverse 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
7
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
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. The Agency is governed by a five-member board
which consists of all the members of the City Council. The Mayor who is appointed by the City
Council acts as the Chairperson for the Agency.
The Redevelopment Plans have been amended from time to time to ensure compliance with
the CRL. Most recent amendments eliminated the time limit to incur debt and extended the life
of the Project Areas and their term to collect tax increment by an additional year. It should be
noted that the Agency does not have eminent domain authority. The following table
summarizes the financial and time limitation of each of the Project Areas’ Redevelopment
Plans.
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Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Redevelopment Plan Limitations Table 1
Plan Limits
Project Area No. 1
Original Area
Project Area No. 1 -
Added Territory
Project Area
No. 2
Project Area
No. 3
Date of Adoption July 16, 1975 November 25, 1981 July 15, 1987 July 17, 1991
Effectiveness of Plan1 & 2 July 16, 2016 November 25, 2022 July 15, 2028 July 17, 2032
$800,000,0004
$1,534,916,881
(2009 adjusted for
CPI)
$150,000,0009
$287,796,915
(2009 adjusted for
CPI)
Time Limit to Incur Debt11 Eliminated Eliminated Eliminated Eliminated
Time Limit on Receiving Tax
Increment and Paying
Indebtedness1 & 2
July 16, 2026 November 25, 2032 July 15, 2038 July 17,2042
$360,000,0005
$100,000,000 $135,000,00010
10 The Redevelopment Plan for the Project Area No.4 places a cap on total bonded indebtedness,which may be outstanding at any one time at $135
million.Such net limitation is exclusive of (1)the amount of any bonded indebtedness issued on behalf of or the proceeds of which are used for the
benefit of the taxing agencies to alleviate financial burden,or detriment made by the Agency pursuant to Section 512 of the Redevelopment Plan;and (2)
the amount of any bonded indebtedness payable from any monies deposited in the Agency’s Low and Moderate Income Housing Fund.
11 City Council adopted Ordinance No.1035,1036,1062,and 1063 amending the Redevelopment Plans for Project Areas No.1,2 ,3 &4,respectively,to
eliminate the time limit to incur debt, pursuant to Senate Bill 211(Statues of 2001 Chapter 741), which was enacted into law in 2001.
3 Per the Sixth Amendment to the Redevelopment Plan for the Added Territory of Project Area No.1,which set a limit of $200 million to the Added
Territory's bonded indebtedness and $500 million to the Added Territory's total tax increment,the Added Territory's tax increment 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.
8 Per the Sixth Amendment to the Redevelopment Plan for Project Area No.1 for the Added Territory adopted on January 24,1991,the Bonded Debt Cap
is exclusive of bonds issued to finance the acquisition of land, construction of buildings, facilities, structures or improvements for taxing agencies.
4 The total tax increment limit for Project Area No.2 is $800 million,adjusted annually based upon the Consumer Price Index (“CPI”).This limit is
expressed in 1987 dollars and is adjusted in accordance with the changes in the region’s CPI . Expressed in current dollars, the limit is $1,546,449,418.
7 At the time of the Adoption of the Original Area of Project No.1 there was no requirement for the Redevelopment Plan to have a Bond Debt Limit.This
requirement for older redevelopment plans has not been changed.
1 Pursuant to Assembly Bill 1290 all pre 1994 redevelopment projects were required to adopt specific time limitation.On December 8,1994 the City
Council adopted Ordinances 765, 766, 767, and 768 establishing such limits for the Project Areas No. 1, 2, 3 & 4, respectively.
2 Pursuant to Senate Bill 1045 (Statutes of 2003,Chapter 260),which was enacted into law in 2003,the City Council adopted Ordinances 1082,1083,
1084,and 1085 on December 9,2004 to extend the Redevelopment Plan effectiveness and the time period to collect tax increment of each Project Area
No. 1, 2, 3 & 4, respectively, by one year.
9 The Redevelopment Plan for the Project Area No.2 sets a cap on total bonded indebtedness that may be outstanding at any one time of $150 million.
The Plan also provides for the annual adjustment of the bonded indebtedness cap,expressed in 1987 dollars,in accordance with the changes in the
region’s CPI. Expressed in current dollars, the cap is set at $289,959,266.
5 Project Area No.3 has a net tax increment of limitation of $360 million.Net tax increment is gross tax increment less amounts that are passed through
to taxing agencies and amounts set-aside into the Agency's Low and Moderate Income Housing Fund.
6 The total gross amount of tax increment revenue that may be allocated to the Agency from Project Area No.4 cannot not exceed $600 million.
Additionally,the number of tax dollars,which may be divided and allocated to the Agency,also may not exceed the amount of $200 million,net of the
funds required to be set-aside into the Agency Low and Moderate Income Housing Fund and payments to the Project Area’s taxing agencies pursuant to
cooperative agreements.Both the $600 million gross cap and the $200 million net cap may not be changed except by amendment of the redevelopment
plan for the Project Area.
Project Areas
Project Area No. 4
July 19, 1993
July 19, 2034
July 19, 2044
Tax Increment Dollar Limit $758,000,000 $500,000,0003
$600,000,000-Gross
$200,000,000-Net6
Eliminated
Bonded Debt Limit None7 $200,000,0008
9
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
The following map illustrates the location and boundaries of the Project Areas with the City.
10
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
LEGAL REQUIREMENTS
The required housing portion of this Implementation Plan (Housing Compliance Plan) serves
as a blueprint for current and future Agency activities to meet its affordable housing production
and other responsibilities. This Compliance Plan 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 CRL. Specifically, it presents a reconciliation of the Agency’s
replacement housing obligations. It provides a forecast of the number of housing units that are
or will be reserved and affordable to very low, low and moderate income persons or families
over the second five years of the ten year planning period (fiscal years 2009-10 through 2013-
14), the next ten year period and until the termination of the Redevelopment Plans.
The Compliance Plan also addresses the requirement that at least 20% of all tax increment
revenues allocated from the Project Areas are reserved and deposited into a special fund for
increasing, improving and preserving the community supply of affordable housing dedicated to
persons or families of low or moderate income.4 Such housing must additionally be made
affordable to these targeted income groups at affordable housing costs as defined by the
California Health and Safety Law.5 The Compliance Plan must disclose the current balance
and projected annual deposits of set-aside and other revenue into the Housing Fund for the
Plan’s five year period. It must enumerate the Agency’s Housing Program and show annual
estimates of Housing Fund expenditures. It must provide descriptions of how the Agency’s
Housing Program shown in the Compliance Plan will expend Housing Funds to meet the
CRL’s targeting requirements by household types (very low income, low income, moderate
income and persons regardless of age) proportionate to community need. The Compliance
Plan must show the amounts of Housing Funds used over the last five years to assist
extremely low, very low, and low income units. It must identify the number, location, and level
of affordability of newly constructed units with other locally controlled government assistance
(no redevelopment agency assistance) that are required to be affordable to, and occupied by,
low, very low, or extremely low income persons for 55 years (rental) or 45 years (for-sale).
Finally it must provide the number, location, level of affordability, and amount of Housing
Funds used to assist units available to all persons regardless of age over the last five years.
4 The CRL 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.
5 Section 50052.5 of the California 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
110% for rental projects) of the County median household income. Affordability amounts under the Stipulation for
Very Low Income are 25% of 50%.
11
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
HOUSING PROGRAM GOALS & OBJECTIVES
The Agency’s Goals for the term of this Compliance Period 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 the Law.
§ To leverage the Agency’s Housing Funds with other resources in order to promote
affordable housing.
§ To ensure 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.
Objectives of the Compliance Plan
§ Provide an assessment of the Agency’s compliance with all aspects of the CRL’s
various affordable housing requirements and replacement housing requirements,
including current and future need for inclusionary units and the use of housing s et-
aside funds.
§ Account for the number of affordable dwelling units, either constructed or
substantially rehabilitated, in the Project Areas since adoption;
12
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
§ Forecast the estimated number of dwelling units to be privately developed or
substantially rehabilitated between fiscal years 2009-10 to 2013-14, 2014-15 to
2024-25 and over the duration of the Redevelopment Plans;
§ Forecast the estimated number of dwelling units to be developed or substantially
rehabilitated by the Agency between fiscal years 2009-10 to 2013-14, 2014-15 to
2024-25 and over the duration of the Redevelopment Plans;
§ Account for any low or moderate income housing units destroyed through the
Agency’s implementation of the Redevelopment Plans;
§ Verify the number and type of replacement units provided by the Agency in response
to any units destroyed through Agency action;
§ Provide estimates of the amount of Housing Fund revenues available to fund
affordable housing production;
§ Establishment of a timeline for implementing this Compliance Plan to ensure that the
requirements of CRL Section 33413 are met during the five year period between
fiscal years 2009-10 through 2013-14;and
§ To confirm the consistency of Agency affordable housing goals, objectives, and
programs pursuant to the City of Palm Desert’s current Housing Element.
13
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
HOUSING ACCOMPLISHMENTS
The Public Value & Benefit of Redevelopment
During the last five years, the Agency has developed many numerous housing projects and
implemented many successful housing programs within the Project Areas and the City. Below
are descriptions of just a few of these programs. A detailed listing of all the housing projects
and programs completed in the Project Areas is provided in Table 1 on the following page.
Falcon Crest / La Rocca Villas
The project is a blended affordable development of 93 for-sale single family homes and 27 senior rental units,
developed with the intention of encouraging social, economic, and household composition diversity. The
Agency assisted in the development and helped subsidize rents and sales of the units which are all affordable.
Sagecrest Senior Apartments
The Agency acquired the existing 14 unit property
in order to increase the availability of affordable
units in the City.
California Villas Acquisition /
Renovation
The Agency acquired the property in 2003 and
renovated an existing multi-family complex that
exhibited substandard conditions. The complex
has 141 units which are available to very low,
low and moderate income households.
14
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Sares Regis-Enclave (64 units)
As part of a density bonus, the Agency entered
into agreements with a private developer in
2004 to include affordable housing throughout
the development.
Laguna Palms Acquisition / Renovation
The Agency acquired the property in 2003 and
renovated an existing multi-family complex that
exhibited substandard conditions. The complex
has 48 units which are available to very low, low
and moderate income households.
Palm Village
Acquisition/Construction
Agency funds were used to construct a
new 36 unit multi-family affordable
housing complex, available to very low
and low-income households
Habitat for Humanity
The Agency donated property to Habitat for
Humanity to provide housing to very low and
low-income households in exchange for an
affordable restriction placed on the property.
15
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Table 1 provides a detailed listing of the Agency’s housing accomplishments between FY2004-
05 through FY2008-09.
Agency Housing Accomplishments Table 2
2004-05 through 2008-09
Project Name Project Description/Highlights Completion Date Total Gross
Expenditure
Desert Pointe Improvements
Agency funds were used to upgrade the interior hallways
to eliminate health and safety electrical concerns and to
enhance a wall façade in order to decrease the damage
from tenant ingress and egress.
March 2005 $156,636
One Quail Place Carports
The Agency replaced the deteriorated carport roof system
at a 384 unit affordable housing complex owned by the
Agency.The units are available to very low,low and
moderate-income households.
June 2006 $503,255
Candlewood The Agency acquired this existing 30 unit property in order
to eliminate their "at risk" affordable housing units status.July 2006 $3,253,759
Hill Property
The Agency acquired a blighted property adjacent to
Country Village Apartments for expansion of the
availability of affordable housing.
November 2006 $1,890,998
One Quail Place Signage
Agency funds were used to improve signage which will
enhance safety vehicle site identification as well as
provide better access to the site.
June 2007 $41,366
Sagecrest 1 The Agency acquired this existing 15 unit property in order
to increase the availability of affordable units in the City.February 2008 $1,909,878
Falcon Crest/La Rocca
Villas
The project was a blended affordable development of 93
for-sale single family homes and 27 senior rental units
which was developed with the intention of encouraging
social,economic,and household composition diversity.
The Agency assisted in the development and helped
subsidize rents and sales of the affordable units.
April 2008 $31,960,876
Homebuyer Subsidies-
Falcon Crest
The Agency provided first-time homebuyer assistance to
restricted income households for a 93 units for sale
development.
April 2008 $3,228,001
Habitat for Humanity The Agency donated property to Habitat for Humanity to
provide housing to very low and low-income households.May 2008 $254,067
Laguna Palms
Acquisition/Renovation
The Agency acquired the property in 2003 and renovated
an existing multi-family complex that exhibited
substandard conditions.The complex has 48 units which
are available to very low,low and moderate income
households.
June 2008 $10,328,950
16
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Agency Housing Accomplishments Table 2
2004-05 through 2008-09 (Cont.)
Project Name Project Description/Highlights Completion Date Total Gross
Expenditure
Palm Village
Acquisition/Construction
Agency funds were used to construct a new 36 unit multi-
family affordable housing complex,available to very low
and low-income households.In addition to Agency funds,
$600,000 of HOME funds were used to assist with this
project.
November 2008 $8,342,909
Sagecrest Sr The Agency acquired the existing 14 unit property in order
to increase the availability of affordable units in the City.February 2009 $2,160,639
California Villas
Acquisition/Renovation
The Agency acquired the property in 2003 and renovated
an existing multi-family complex that exhibited
substandard conditions.The complex has 141 units which
are available to very low,low and moderate income
households.
June 2009 $16,592,219
Country Village
Acquisition/Renovation
The Agency acquired the property in order to maintain the
property's viability and to increase the affordable housing
in the City.The existing 66 units have been
deconstructed and the Agency has relocated the affected
tenants in anticipation of a proposed project consisting of
approximately 72 affordable residential units.
In Progress $5,140,783
Taos Palms Renovation
The Agency is funding the redesign for interior
renovations of deteriorated apartment units which are
available to very low,low,and moderate income
households.
In Progress $20,082
Compliance Programs
The Agency has created programs to provide assistance
to homebuyers,renters and residents that need home
improvements or access to affordable housing.
In Progress
Acquisition, Rehabilitation, and Resale $1,641,236
Home Improvement Program $283,904
Rental Assistance $22,314
Resale Program $126,296
First Time Homebuyer Program $161,062
Developer Agreements for
Affordable Housing
Agreements between the Agency and private developers
require implementation of affordable housing throughout
their developments.
On-Going
Sares Regis-Enclave (64 units)Agreement Dated
8/10/2004 Unknown
Falling Waters (49 units)Agreement Dated
4/16/2007 Unknown
Vineyards (52 units + option for 51 additional units)Agreement Dated
3/27/2008 Unknown
Bernard (4 units)Agreement Dated
10/22/2007 Unknown
Emerald Brook (21 units)Pending Unknown
L & T Investments (4 units)Agreement Dated
7/20/1989 Unknown
Total Gross Expenditure 2004-05 through 2008-09:$88,019,230
Note: Gross Expenditures in Table 2 do not reflect loan receivables.
17
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
H OUSING COMPLIANCE PLAN CATEGORIES
The housing component of a redevelopment agency’s implementation plan establishes ten-
year objectives to achieve compliance with the housing requirements of CRL. The housing
component (unlike the non-housing portion of an implementation plan) must address both a
five and ten year period, setting forth an agency’s affordable housing projects and programs
over these periods. Because of the examination of past efforts, future need and future
expenditures and programs the document is commonly referred as the housing compliance
plan or compliance plan. A compliance plan must address specific requirements that are set
out in Section 33490 of the CRL which generally fall into three categories which will be
addressed in the Compliance Plan. They are:
1. Housing Production – A redevelopment agency is required to ensure that a specific
percentage of housing units are made available and affordable to low and moderate
income households within a project area over the life of the redevelopment plan
governing the project area. These required affordable units are typically referred to as
“Inclusionary Units” and are based on the number of housing units constructed or
substantially rehabilitated within a redevelopment project area over a five and ten-year
period and the over the remaining effectiveness (term) of a redevelopment plan.
2. Replacement Housing – Another legal obligation of a redevelopment agency is to
ensure that any housing units occupied by low or moderate income persons destroyed
or removed as a result of an agency action are replaced within four years with a like
number of units with the same total number of bedrooms for the specific income (or
lower) groups being displaced. Potential projects must be identified as well as the
replacement units or plans that will result in the replacement of the destroyed units.
3. Housing Fund & Expenditures by Household Types – A redevelopment agency is
required to specify the amount of housing set-aside funds an agency must set aside and
spend over a five and ten-year period on housing affordable to very low income
households, low income households, and housing for residents regardless of age.
18
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
2010-2014 HOUSING GOALS & OBJECTIVES
Community Reinvestment and Revitalization
The following goals and objectives generally correspond to those included in the
Redevelopment Plan for each of the Project Areas. These goals in conjunction with the
Housing Goals and Objectives provided on the prior pages of this Compliance Plan formulate
the overall strategy for this Compliance 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 and Coordinate Stakeholder Participation and Investment. To encourage
the cooperation and participation of residents, businesspersons, public agencies, and
community organizations in the revitalization of the Project Area. To encourage private
sector investment in the development and redevelopment of the Project Area. To
coordinate revitalization efforts in the Project Area with other public programs offered by the
City and other public agencies.
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 Responsible Development For Our Community. To encourage the
development of commercial and residential environments which positively relate to adjacent
land uses, and upgrade and stabilize existing uses. 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. To expand the resource of developable land by
making underutilized land available for redevelopment.
Improve Community Facilities, Infrastructure, and Traffic Circulation. To provide
needed improvements to the community's education, cultural and other community facilities
to better serve the Project Area. To provide needed improvements to the utility
infrastructure and public facilities that service the Project Area. To improve traffic circulation
through the reconstruction and improvement of existing streets in the Project Area. To
provide for necessary public parking to address parking deficiencies.
Initiate Green Projects and Programs. To move energy conservation / efficiency
objectives beyond discourse and demonstrates projects that achieve significant quantifiable
energy reduction. To invest municipal resources in measurable sustainable programs.
Provide and Improve Affordable Housing Opportunities. To improve housing and
assist low and moderate-income persons and families to obtain homeownership. To
promote the rehabilitation of existing housing stock where appropriate and promote
development of quality, affordable housing.
19
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
HOUSING PROJECTS AND PROGRAMS
FY 2009-10 through FY 2013-14
The Agency will continue implementation of affordable housing projects throughout the Project
Areas and Citywide over the balance of the Compliance Period. The Agency’s housing
production activities over the last five years have resulted in a substantial number of affordable
housing units being created, reserved or produced. The Agency’s future housing activities will
follow this Plan’s goals and objectives by continuing to concentrate efforts producing additional
affordable units to meet the Agency’s inclusionary requirements. Future affordable housing
implementation activities will fall into the following categories:
1. Multi-Family Housing Rehabilitation – The Agency will provide for both internal and
external renovations and upgrades to deteriorated apartments. Improvements will be
performed on units that are available to very low, low, and moderate income
households.
2. Property Acquisition – The Agency will acquire property for the purpose of creating
both single and multi-family affordable housing projects. The Agency will focus on
acquiring dilapidated multi-family apartments complexes that can be rehabilitated for the
purpose of affordable housing.
3. New Construction of Affordable Housing – The Agency may construct or may help
finance housing projects yielding affordable housing units with restrictive covenants by
providing developer subsidies.
4. Affordable Housing Subsidies – The Agency will provide subsidies to assist first time
homebuyers purchasing affordable housing, assist property owners rehabilitating
deteriorated affordable housing.
Table 3 contains a specific list of programs and projects proposed by the Agency to meet
affordable housing requirements during the remaining Compliance Period. Table 3 presents
the anticipated expenditures, funding source, blight elimination, estimated timeframe,
redevelopment goal achieved by each of the projects and programs listed. Each project and
program will assist in increasing the availability of affordable units in the City.
20
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Proposed Housing Projects and Programs Table 3
2009-10 through 2013-14
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Taos Palms Rehabilitation Agency funds will provide for the design of interior
renovations to deteriorated apartment units which
are available to very low,low,and moderate income
households.
Unsafe or unhealthy
buildings & Affordable
housing
December 2009 $500,000 Bonds
Calif. Villas Landscape The landscape renovation project will address all
exterior site improvements including the
incorporation of drought tolerant landscaping,ADA
accessibility throughout the site,site lighting,
parking lot improvements,installation of carports
and a new maintenance facility.
Conditions that prevent or
substantially hinder the
viable use or capacity of a
building or lot & Public
improvements & Affordable
housing
December 2009 $3,347,004 Cash /
Bonds
Palm Village Apts Agency funds will provide for additional capital
improvements to finish the site.
Affordable housing June 2010 $633,288 Cash /
Bonds
Self Help Housing (20 Acre
Site)
The Agency Staff is requesting approval from the
Agency Board to go begin the Request for Proposal
process for the development of 14-Self Help homes
at Merle Street.The 14 parcels were identified as
part of a master site that identified Falcon Crest,La
Rocca Villas, and the Hovely Gardens development.
Affordable housing June 2012 $1,400,000 Cash
Desert Pointe This project will upgrade deteriorating conditions at
one of the Agency's affordable housing properties.
Unsafe or unhealthy
buildings & Affordable
housing
June 2012 $4,000,000 Cash /
Bonds
Catalina Rehabilitation This project will upgrade deteriorating conditions at
one of the Agency's affordable housing properties.
Unsafe or unhealthy
buildings & Affordable
housing
June 2013 $500,000 Cash
21
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Proposed Housing Projects and Programs Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Sagecrest The Agency will fund the rehabilitation of this
existing 15 unit property
Affordable housing June 2013 $6,000,000 Cash
Down Payment Assistance
(Indian Springs)
Agency funds will be used to assist in providing for
the installation of infrastructure to facilitate the
implementation of a sewer system in a residential
development that includes low and moderate
income households.Funds will also provide down
payment assistance to qualified residents who
prefer to purchase their units.
Inadequate utilities &
Depreciated or stagnant
property values &
Affordable housing
June 2014 $5,000,000 Cash
Buy-Down Subsidies This program will provide subsidies to developers or
first time homebuyers for the provision of affordable
housing.
Affordable housing June 2014 $21,075,578 Cash
Falcon Crest II (1st year only)This program will provide subsidies to first time
homebuyers for the provision of affordable housing.
Affordable housing June 2014 $5,262,587 Cash
Land/Property Acquisition The Agency will acquire property for the purpose of
affordable housing opportunities.
Affordable housing June 2014 $17,665,000 Cash /
Bonds /
Unfunded
Multi-Family Acquisition The Agency will acquire existing multi-family
residential properties to up uphold its primary goal
to provide decent,safe,sanitary,and affordable
housing as well as to preserve and improve the
existing older neighborhoods in the City of Palm
Desert.
Affordable housing June 2014 $40,000,000 New Bonds
Carlos Ortega Villas
Consruction
Agency funds will be used to finance the
construction of approximately 70 units for the
purpose of affordable housing.
Affordable housing June 2014 $20,000,000 Cash /
Bonds
22
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Proposed Housing Projects and Programs Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Multi-Family Improvement
Program
The Agency will provide assistance to qualified
duplex and triplex owners for improvements and
maintenance for affordable housing.
Conditions that prevent or
substantially hinder the
viable use or capacity of a
building or lot & Affordable
housing
Ongoing Program $103,040 Cash
PDHA Properties Subsidies The Agency will provide subsidies to cover
operations shortfalls for Agency owned affordable
housing complexes.
Affordable housing Ongoing Program $125,026 Cash
Acquired Unit Subsidies The Agency will continue to offer subsidies for the
purpose of providing affordable housing.
Affordable housing Ongoing Program $206,080 Cash
Acquisition Rehabilitation
and Resale
The Agency will acquire dilapidated properties and
rehabilitate them for the purpose of increasing or
preserving affordable housing.
Affordable housing Ongoing Program $1,470,266 Cash
Preservation of At-Risk Units The Agency will continue to improve and maintain
blighted properties for the purpose of increasing or
preserving affordable housing.
Affordable housing Ongoing Program $226,080 Cash
Home Buyer Assistance
Program
The Agency will continue to provide assistance to
restricted income households for the purpose of
affordable housing.
Affordable housing Ongoing Program $1,881,160 Cash
Rental Assistance
Program/Relocation
This program provides assistance to very low and
low-income households for the purpose of
affordable housing,as well as for providing
relocation benefits where appropriate.
Affordable housing Ongoing Program $1,216,655 Cash
23
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Proposed Housing Projects and Programs Table 3
2009-10 through 2013-14 (Cont.)
Project Name Description
Blighting Condition
Addressed
Anticipated
Completion
Anticipated
Expenditure Source
Redevelopment Goal
Achieved
Mortgage Assistance
Program
This program provides assistance to qualified
homebuyers and homeowners for the purpose of
mortgage affordability,and reduction in foreclosures
and defaults.
Affordable housing Ongoing Program $113,040 Cash
Home Improvement Program This program offers a variety of grants and loans to
qualifying households that would otherwise not be
available to maintain and improve the current
housing condition or help with code violations.
Affordable housing Ongoing Program $768,241 Cash
24
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
HOUSING PRODUCTION
The Agency’s inclusionary housing unit need was initially established by a detailed review of
housing units built or substantially rehabilitated in the Project Areas from adoption through
June of 1994. Additionally, projections of units to be built or substantially rehabilitated from July
of 1994 through June of 2004 were developed and utilized in the first Compliance Plan
adopted by the Agency in December of 1994. Since 1994, the 1999 and 2004 Compliance
Plans have reassessed and updated both the number of units constructed as well as those
anticipated to be developed or substantially rehabilitated over the various five, ten year and
remaining life of each of the Project Areas to establish and update the Agency’s inclusionary
housing production unit need.
To update the number of housing units that need to be affordable to low or moderate income
households, the Agency determined the total number of units constructed or substantially
rehabilitated over the last five years within each of the Project Areas. Estimates of units to be
newly constructed or substantially rehabilitated in future years were calculated and the
required affordable units were determined by applying the formulas pursuant to the CRL. The
following inclusionary housing analysis takes into account all residential construction or
substantial rehabilitation that occurred within the Project Areas since their adoptions to
determine affordable housing production needs. Housing production figures are calculated for
existing residential construction and substantial rehabilitation, and include projections for the
number of additional dwelling units to be constructed or substantially rehabilitated during the
Compliance Period, the next ten years, and over the life of the Project Areas.
The following narrative defines "new construction" and "substantially rehabilitated" as required
by CRL, as well as describes the methodology used for collecting data on both existing and
projected housing units for completion of the Compliance Plan.
New Construction - The Agency and City Planning staff provided the original construction
statistics used in prior Housing Compliance Plans. Because the 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”. Counts of new dwelling units developed from 2005 through 2009 were based
upon Certificates of Occupancy and Final Inspection records of the City’s Building and Safety
Department.
Future Projections 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
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. Projections of substantially rehabilitated units have been included
for the remaining Compliance Period based on the Agency’s proposed projects detailed in
25
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Table 11. No projections of substantially rehabilitated or Agency developed units have been
included past the Compliance Period. Projections of future Agency developed and substantially
rehabilitated units will be reevaluated at the midterm review and updated the preparation of
future implementation plans.
Agency Developed Units – Historically, the Agency has directly developed or rehabilitated
dwelling units triggering the thirty percent (30%) affordable housing requirement of Section
33413(b)(l) of CRL. During the remaining term of the Project Areas, where appropriate, the
Agency may directly develop or rehabilitate dwelling units to meet its inclusionary housing unit
need. Additionally, 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.
Privately Developed Units – Dwelling units constructed within the Project Areas by private
developers will trigger the fifteen percent (15%) affordable housing requirement of Section
33413(2)(A)(i) of the CRL.
Substantial Rehabilitation - The CRL, 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” (Section 33413(b) (2) (A) (IV)).
As defined by CRL "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" (Section 33413(b) (2) (A) (iii)).
Inclusionary Housing Production Requirements
As previously described, Section 33413(b) of the CRL 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 periods as well as the period remaining on the life
of the Redevelopment Plans, be affordable to low or moderate income households. CRL also
requires that of the 30% Units, at least 50% of these and at least 40% of the 15% Units be
specifically reserved for, and affordable to, very low income households. The affordable
housing production requirements for this Compliance Plan should be met during the ten year
period which ends on June 30, 2014.
Table 3 summarizes the production requirements over various time periods as required by the
CRL. The number of affordable units required is based on statutory thresholds. Pursuant to
the CRL, the Agency is responsible for ensuring that the appropriate number of affordable
units is created during the Compliance Period. Exhibit A provides a glossary of terms related
to affordable housing covenants, affordability limits, and inclusionary unit satisfaction.
26
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Time Requirements for Affordability Restrictions
Effective as of January 1, 2002, all units assisted by the Housing Fund including replacement
housing units and inclusionary housing units must be affordable for 55 years for rental units or
45 years for owner-occupied units. Units assisted, rehabilitated or constructed prior to January
1, 2002 may have shorter time limits as provided by the CRL at the time of their production.
Inclusionary Unit Need Estimation
Tables 4 through 8 presented below provide documentation of the number of housing units
produced or projected to be produced over the Compliance Periods as well as over the life of
the Project Areas. The Tables also provide an assessment of the number of inclusionary units
required to meet the standards of the CRL over the Compliance Periods as well as over the life
of the Project Areas. Table 4 provides a summary of collective housing unit calculation for all
of the Project Areas. Tables 5 through 8 provide separate details for each of the four Project
Areas.
Inclusionary Housing Obligation Table 4
Number
of Units Total Units1 VL Units L/M Units
Summary of All Project Areas
Adoption Through 1994 5,121 778 314 464
1994 Through 2003-04 3,019 485 201 284
Adoption Through 2004 8,140 1,263 515 748
2004-05 Through 2008-09 686 126 56 70
2009-10 Through 2013-14 285 119 55 64
2004-05 Through 2013-14 971 245 111 134
2014-15 Through 2018-192 1,250 188 75 113
2019-20 Through End of Plan 1,424 214 85 128
All Project Areas Adoption through End of Plan 11,785 1,909 786 1,123
2 Units projected during next planning period.
Housing Units Constructed or Substantially Rehabilitated
(Inclusive of both Agency and Private Developed Units)
Inclusionary Units Required
1 Number of inclusionary units required is calculated based on 15% of the privately developed units and 30% of the Agency developed units.
27
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Inclusionary Housing Obligation Table 5
Project Area No. 1
Number
of Units Total Units1 VL Units L/M Units
Date of Adoption Through 6-30-94
Agency Developed: Adoption through 6-30-94 (30% Requirement)64 19 10 9
Privately Developed: Adoption through 6-30-94 (15% Requirement)3,600 540 216 324
SUBTOTAL Date of Adoption Through 6-30-94 3,664 559.0 226 333
Agency Developed 1994-2004 (30% Requirement)68 20 10 10
Privately Developed 1994-2004 (15% Requirement)1,092 164 66 98
SUBTOTAL 1994-2004 1,160 184.0 76 108
TOTAL Adoption through June 20, 2004 4,824 743.0 302 441
Agency Developed 2004-05 thru 2008-09 2 (30% Requirement)36 11 5 5
Privately Developed 2004-05 thru 2008-09 (15% Requirement)233 35 14 21
SUBTOTAL 2004-05 Through 2008-09 2 269 46 19 26
Agency Developed 2009-10 through 2013-14 (30% Requirement)3 17.0 5 3 2
Privately Developed 2009-10 through 2013-14 (15% Requirement)50.0 8 3 5
SUBTOTAL Estimated 2009-10 through 2013-14 67 13 6 7
TOTAL 2004-05 through 2013-14 336 59 25 33
2014-15 through 2018-194 250 38 15 23
Through End of Plan (Orig. 2016, Added 2022)25 4 2 2
Project Area No. 1 Adoption Through End of Plan 5,601 843 344 499
2 This number includes 12 substantially rehabilitated units.
3 Includes the Sagecrest project.
4 Units projected during the next planning period.
Inclusionary Units RequiredHousing Units Constructed or Substantially Rehabilitated
1 Number of inclusionary units required is calculated based on 15% of the privately developed units and 30% of the Agency developed units.
Inclusionary Housing Obligation Table 6
Project Area No. 2
Number
of Units Total Units1 VL Units L/M Units
Date of Adoption Through 6-30-94
Agency Developed: Adoption through 6-30-94 (30% Requirement)0 0 0 0
Privately Developed: Adoption through 6-30-94 (15% Requirement)1,159 173.9 70 104
SUBTOTAL Date of Adoption through 6-30-94 1,159 174.0 70.0 104
Agency Developed 1994-2004 (30% Requirement)0 0 0 0
Privately Developed 1994-2004 (15% Requirement)238 35.7 14 21
SUBTOTAL 1994-2004 238 35.7 14.3 21
TOTAL Adoption through June 20, 2004 1,397 209.7 84.3 125.4
Agency Developed 2004-05 through 2008-09 (30% Requirement)0 0 0 0
Privately Developed 2004-05 through 2008-09 (15% Requirement)127 19 8 11
SUBTOTAL 2004-05 through 2008-09 127 19 8 11
Agency Developed 2009-10 through 2013-14 (30% Requirement)51 15 8 7
Privately Developed 2009-10 through 2013-14 (15% Requirement)30 5 2 3
SUBTOTAL Estimated 2009-10 through 2013-14 81 20 10 10
TOTAL 2004-05 through 2013-14 208 39 18 21
Privately Developed 2014-15 through 2018-19 2 (15% Requirement)930 140 56 84
Thru End of Plan (2028)1,390 209 83 125
Project Area No. 2 Adoption Through End of Plan 4,164 597 241 355
2 Units projected during the next planning period.
3 Includes the Vineyards project.
Housing Units Constructed or Substantially Rehabilitated Inclusionary Units Required
1 Number of inclusionary units required is calculated based on 15% of the privately developed units and 30% of the Agency developed units.
28
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Inclusionary Housing Obligation Table 7
Project Area No. 3
Number
of Units Total Units1 VL Units L/M Units
Date of Adoption Through 6-30-94
Agency Developed: Adoption through 6-30-94 (30% Requirement)0 0 0 0
Privately Developed: Adoption through 6-30-94 (15% Requirement)80 12 5 7
SUBTOTAL Date of Adoption through 6-30-94 80 12 5 7
Agency Developed 1994-2004 (30% Requirement)2 1 1 0
Privately Developed 1994-2004 (15% Requirement)541 81 32 49
SUBTOTAL 1994-2004 543 82 33 49
TOTAL Adoption through 2004 623 94 38 56
Agency Developed 2004-05 through 2008-09 (30% Requirement)120 36 18 18
Privately Developed 2004-05 through 2008-09 (15% Requirement)109 16 7 9
SUBTOTAL 2004-05 through 2008-09 229 52 25 27
Agency Developed 2009-10 through 2013-14 (30% Requirement)3 45.0 13.5 6.8 7.0
Privately Developed 2009-10 through 2013-14 (15% Requirement)10 2 1 1
SUBTOTAL Estimated 2009-10 through 2013-14 55 15 27 36
TOTAL 2004-05 through 2013-14 284 67 45 63
2014-15 through 2018-192 10 2 1 1
Through End of Plan (2032)3 0.5 0.2 0.3
Project Area No. 3 Adoption through End of Plan 920 163 84 120
2 Units projected during the next planning period.
3 Includes the Self Help Housing Merle Street and Canterra Phase II projects.
Housing Units Constructed or Substantially Rehabilitated Inclusionary Units Required
1 Number of inclusionary units required is calculated based on 15% of the privately developed units and 30% of the Agency developed units.
Inclusionary Housing Obligation Table 8
Project Area No. 4
Number
of Units Total Units1 VL Units L/M Units
Date of Adoption Through 6-30-94
Agency Developed: Adoption through 6-30-94 (30% Requirement)0 0 0 0
Privately Developed: Adoption through 6-30-94 (15% Requirement)218 33 13 20
SUBTOTAL Date of Adoption through 6-30-94 218 33 13 20
Agency Developed 1994-2004 (30% Requirement)141 42 21 21
Privately Developed 1994-2004 (15% Requirement)937 141 56 85
SUBTOTAL 1994-2004 1,078 183 77 106
TOTAL Adoption through 2004 1,296 216 90 126
Agency Developed 2004-05 through 2008-09 (30% Requirement)0 0 0 0
Privately Developed 2004-05 through 2008-09 (15% Requirement)61 9 4 5
SUBTOTAL 2004-05 through 2008-09 2 61 9 4 5
Agency Developed 2009-10 through 2013-14 (30% Requirement)3 72 21.6 11 11
Privately Developed 2009-10 through 2013-14 (15% Requirement)10 2 1 1
SUBTOTAL Estimate 2009-10 through 2013-14 82 24 12 12
TOTAL 2004-05 Thru 2013-14 143 33 16 17
2014-15 through 2018-194 60 9 4 5
Through End of Plan (2034)6 1 0 1
Project Area No. 4 Adoption Through End of Plan 1,505 259 110 150
2 This number includes 12 substantially rehabilitated units.
3 Includes the Country Village project.
4 Units projected during the next planning period.
1 Number of inclusionary units required is calculated based on 15% of the privately developed units and 30% of the Agency developed units.
Housing Units Constructed or Substantially Rehabilitated Inclusionary Units Required
29
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Aggregation of Affordable Units Among All Project Areas
Section 33413 (b)(2)(A)(v) of the CRL 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.”
Status of Agency’s Inclusionary Housing Production
Table 9 presents reconciliation of the Agency’s affordable housing production requirement for
the prior and the remaining Compliance Period, as well as over the next ten years, and the
entire duration of each of the Project Areas. The information provided in Table 9 is based upon
the housing production numbers presented in Tables 4 through 8 and the Agency’s inventory
of affordable housing projects completed to date (detailed in Tables 10 and 11).
Reconciliation of Affordable Housing Units
Low/Mod VL Total Low/Mod VL Total Low/Mod VL
1st Ten Year Period (Inc. pre 94 Units)
Plan Adoption through 19941 5,121 464 314 778 429 271 699 (36)(44)
1994-95 through 2003-04 3,019 284 201 485 311 328 639 27 127
1st Ten Year Total (Inc. pre 94 Units)8,140 748 515 1,263 740 599 1,338 (9)84
2nd Ten Year Period (2004-2014)
2004-05 through 2008-09 686 70 56 126 206 36 242 136 (20)
2009-10 through 2013-14 (Estimated)285 64 55 119 147 53 200 83 (2)
(9)84
2nd Ten Year Period 971 134 111 245 353 89 442 210 62
5Yr Period- 2014-15 through 2018-19 1,250 113 75 188 0 0 0 (113)(75)
2019-20 through End of Plans2 1,424 128 85 214 0 0 0 (128)(85)
210 62
Total 11,785 1,123 786 1,909 (31)(99)
Project No. 2: 2028, Project No. 3: 2032, Project No. 4: 2034.
Table 9
Inclusionary Requirement (see
Tables 4-8)
Inclusionary Production (see
Tables 10 & 11)
Inclusionary
(Need)/Surplus
2Duration of Redevelopment Plans are as follows: Original Project 1: 2016, Added Territory: 2022,
Total New or
Substantially
Rehabilitated
Units
compliance period (1995-2004) was sufficent to meet this need.
Surplus/(Deficit) from 1st Ten Years
Estimated 2014 through End of Plans
Surplus/(Deficit) from 2nd Ten Years
1This inclusionary housing unit deficit was created in the Pre 1994 period. The Agency's housing production in the first ten year
As shown in Table 9 and based upon projections, the Agency anticipates a surplus of 210 low
and moderate income units and a surplus of 62 very low income units at the end of this ten
year period of the Compliance Plan. Details of production of affordable housing units for the
first five year period and the current and second five year period of this Compliance Plan is
shown in Table 11.
Inventory of Inclusionary Units
As previously described, Section 33413(b) of the CRL requires that not less than 30% of any
Agency-developed units or 15% of privately developed units must be made affordable to low
30
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
and moderate income households. Table 10 below details the Agency’s production or
reservation of affordable housing units through June 2004.
Inclusionary Housing Projects Table 10
Total Credited Total Credited Total Credited
PC-A One Quail Place 384 384 133 133 191 191 60 60 Full
PC-A Pueblos 15 15 13 13 1 1 1 1 Full
PC-A Neighbors 24 24 14 14 3 3 7 7 Full
PC-A Catalina Gardens 72 72 49 49 8 8 15 15 Full
PC-A Las Serenas1 123 61.5 71 35.5 21 10.5 31 15.5 50%
NC CV Self Help Housing 11 11 0 0 11 11 0 0 Full
SR-A Desert Pointe 64 64 26 26 14 14 24 24 Full
RC-A San Tropez 103 51.5 0 0 103 51.5 0 0 50%
RC Shadow Hills Estates 6 6 0 0 0 0 6 6 Full
RC Shadow Hills Estates 10 10 0 0 0 0 10 10 Full
812 699 306 270.5 352 290 154 138.5
Total Credited Total Credited Total Credited
SR-A Santa Rosa Apartments 20 20 20 20 0 0 0 0 Full
PC-A Taos Palms 16 16 12 12 3 3 1 1 Full
MH-OU Portola Palms Mobile Home Pk 39 39 29 29 6 6 4 4 Full
NC Desert Rose SF Homes 161 161 24 24 105 105 32 32 Full
NC Building Horizons SF Homes 2 2 0 0 2 2 0 0 Full
NC Habitat for Humanity 3 3 3 3 0 0 0 0 Full
NC Rebecca Road 2 2 0 0 2 2 0 0 Full
SR-A California Villas 141 141 97 97 26 26 18 18 Full
SR-A Laguna Palms 48 48 27 27 5 5 16 16 Full
NC Hovely Gardens 130 130 62 62 67 67 1 1 Full
MA-A Candlewood 26 26 23 23 0 0 3 3 Full
NC Villas on the Green 15 15 0 0 8 8 7 7 Full
NC Canterra Phase 1 31 31 31 31 0 0 0 0 Full
NC Pacific Assisted Living 2 2 0 0 2 2 0 0 Full
RC 74-047 San Marino Circle 1 1 0 0 0 0 1 1 Full
NC River Run One 2 2 0 0 2 2 0 0 Full
639 639 328 328 228 228 83 83
Notes:
NC: Units created by new construction
RC: Restricted covenants imposed as a condition of development
OU: Home ownership assistance
SR: Units created through the rehabilitation of existing units with the imposition of affordability covenants
MA: Maintain affordability of income-restricted units
1 Las Seranas contains 24 units that will be counted as replacement houisng units for the Country Villages and have not been included.
Source: Palm Desert Redevelopment Agency
SUBTOTAL
SUBTOTAL
PC/PC-A: Affordable units created from existing units through the purchase of units with affordability covenants. "A" indicates units are owned by
Agency.
Project
Type
Number of
Moderate
Units
Plan Adoption
through 1994
Number of Low
Units
Full or
50%
Credit
July 1994- June 2004
Project Name
Total
Affordable
Units in
Project
Number of VL
Units
Total
Units
Credited
The Agency anticipates development of affordable housing projects in the Project Areas over
the Compliance Period that may result in sufficient units to meet the housing production
requirements, thereby achieving these housing production requirements. Table 11 below
31
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
details the Agency’s affordable housing units created during the first five year period of the
Compliance Plan as well as units projected to be built, rehabilitated or reserved during the final
five year period of this 10 Year Plan. Legislative changes to the CRL in 2006 require the
Agency to publish on the City’s website a list of all inclusionary units created by the Agency. A
complete list of inclusionary housing units covenanted to the Agency may be found on the
Agency’s website at http://www.cityofpalmdesert.org/Index.aspx?page=504.
Inclusionary Housing Projects Table 11
2004-2009 Total Credited Total Credited Total Credited
1 NC - SR-A
Palm Village Apartments:
Substantial Rehab 12 units and
addition of 24 units
36 36 18 18 18 18 0 0 Full 2006
3 NC-A La Rocca Villas 27 27 13 13 14 14 0 0 Full 2008
1 MA-A Sagecrest Senior 14 14 3 3 10 10 1 1 Full 2009
3 NC-OU Falcon Crest 93 93 0 0 13 13 80 80 Full 2008
2 RC The Vineyards 52 52 0 0 0 0 52 52 Full 2009
N/A RC The Enclave (Sares Regis)28 14 0 0 0 0 28 14 50%2007
1 MA-A Candlewood 4 4 0 0 4 4 0 0 Full 2007
1 NC-OU Habitat for Humanity 1 1 1 1 0 0 0 0 Full 2006
4 NC-OU Habitat for Humanity 1 1 1 1 0 0 0 0 Full 2007
256 242 36 36 59 59 161 147
2010-2015 Total Credited Total Credited Total Credited
Total Credited Total Credited Total Credited
3 NC Self Help Housing Merle Street 14 14 14 14 0 0 0 0 Full 2011
N/A RC Emerald Brook 21 10.5 0 0 0 0 21 10.5 50%2012
3 RC Canterra Phase II 31 31 0 0 31 31 0 0 Full 2012
2 PC The Vineyards 51 51 0 0 0 0 51 51 Full 2014
1 PC-A Sagecrest 17 17 7 7 9 9 1 1 Full 2014
N/A NC Habitat for Humanity 2 2 2 2 0 0 0 0 Full 2014
N/A NC Cooperative 2 2 0 0 2 2 0 0 Full 2014
4 NC-A Carlos Ortega Villas 72 72 30 30 30 30 12 12 Full 2013
200 53 53 72 72 85 74.5
Notes:
NC: Units created by new construction
RC: Restricted covenants imposed as a condition of development
OU: Home ownership assistance
SR: Units created through the rehabilitation of existing units with the imposition of affordability covenants
MA: Maintain affordability of income-restricted units
Source: Palm Desert Redevelopment Agency
PC/PC-A: Affordable units created from existing units through the purchase of units with affordability covenants. "A" indicates units are owned by
Agency.
Project Name
Total
Affordable
Units in
Project
Total
Units
Credited
SUBTOTAL
SUBTOTAL
Project
Area
Project
Type
Full or
50%
Credit
Number of
Moderate
Units
Estimated FY of
Completion
Total Units
in Project
Total
Units
Credited
Number of VL
Units
Number of Low
Units
Project
Area
Project
Type Project Name
Full or
50%
Credit
FY of CompletionNumber of VL
Units
Number of Low
Units
Number of
Moderate
Units
32
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
REPLACEMENT HOUSING
The CRL requires that whenever housing occupied by low and moderate income persons or
households are destroyed as part of a redevelopment agency action; 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 units must be affordable to the same (or lower) income categories
(i.e. very low, low, and moderate) as those removed. Redevelopment agencies receive full
credit for replacement units created within the community whether inside or outside of a project
area6.
The Palm Desert Redevelopment Agency has actively pursued redevelopment and the
provision of affordable housing. To that end the Agency has during the last five years removed
low and moderate income units in the context of providing additional affordable housing.
Specifically, 66 units, consisting of 56 very low, low, and moderate income housing units , from
the Country Village apartments were removed and deconstructed . Pursuant to the CRL, the
Agency is required to replace these units within four years of their removal. These 56 units
include 56 bedrooms that must be replaced. The Agency had several options available to
provide the required replacement, including acquisition, rehabilitation, new construction, and
the allocation of “banked” dwelling units from prior development activity. The Agency in
compliance with the CRL adopted a Replacement Housing Plan for the Country Village Senior
Apartments Project which outlined the measures that the Agency would take to ensure that the
replacement housing is completed within the four year time period.
Table 12 illustrates how the Agency anticipates satisfying replacement housing needs
generated by the removal of Country Village apartment units. The Agency anticipates creating
90 replacement units with a total of 117 replacement bedrooms through the eight projects
detailed in Table 12. The Agency’s actions as detailed in Table 12 confirm that it will meet the
anticipated replacement housing obligation. Additionally, housing produced as part of
replacement activities will create a surplus of one very low and 13 moderate income units (14
units total) created by the replacement units. There will also be a surplus of 61 bedrooms
generated by the replacement units. Creation of the replacement units have been completed
with the exception of Bernard and Emerald Brook projects, which have been approved and will
begin construction soon.
The Agency does not currently anticipate demolishing or removing any other low or moderate
income housing units during the remaining Compliance Period. However, should a project
arise that requires the removal of such units the Agency will follow CRL procedure by adopting
a replacement housing plan that ensures replacement of the units within the time period
prescribed by the CRL.
6 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.
33
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Replacement Housing Obligations Table 12
Units Removed
Country Village 66 56 56 10 20 26
Replacement Units
Las Serenas 24 24 10 14
Bernard 4 4 2 2
Sares Regis (1B units)19 19 19
Sares Regis (2B units)17 34 17
L and T Investments 4 4 4
Carel, Lee and Sandra (2B unit)1 2 1
Emerald Brook/W NRA (1B units)12 12 12
Emerald Brook/W NRA (2B units)9 18 9
Total Replacement Units 90 117 11 20 59
Source: Palm Desert Redevelopment Agency
Very Low
Income
Units
Low
Income
Units
Moderate
Income
Units
Project Total
Units
VL, L, Mod
Income
Units
Total No.
of
Bedrooms
34
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
H OUSING F UND
Five Year Work Plan Budget
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 (the Housing
Fund). The CRL requires that these funds be used to increase, improve, and preserve the
community’s supply of affordable housing available, to persons and families of very low, low,
and moderate incomes. Other sources of Housing Fund revenues include interest earnings,
bond proceeds, land sale proceeds, grants, and loan repayments.
Table 13 presents the Agency’s Housing Fund, five-year projected cash flow for housing
activities during the remaining Compliance Period. Housing set-aside tax increment revenue is
deposited from all four Project Areas into the Housing Fund. Tax increment revenue shown in
Table 13 is the 20% housing set-aside revenue generated from the total tax increment
received by the Agency. Tax increment revenue projections were based off conservative
growth rates, reflective of the current market conditions. Other sources of Housing Fund
revenues include interest earnings, land sale proceeds, grants, and loan repayments.
Available bond funds and expenditures have also been included in the cash flow analysis. The
Agency has previously issued tax allocation bonds secured by its housing set-aside revenues.
This action was taken to ensure that sufficient capital was available to the Agency to advance
its housing projects and programs.
Expenses shown in the Housing Fund’s cash flow shown on Table 13 include bond debt
service payments, administrative fees, and projected project/program costs. The cash flow
analysis indicates that Agency will have a positive cash flow during the Compliance Period and
there is sufficient revenue to support all proposed projects and programs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make Educational Revenue Augmentation Fund (“ERAF”) payments during
the planning period. In 2008-2009 the State of California approved the budget contingent upon
a $350 million shift of Tax Increment monies from Redevelopment Agencies to be applied to
ERAF. This amounted to a $5,250,496 payment from the Agency to fund the ERAF shift. The
California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies
asserting that the take from redevelopment was unconstitutional based on the Law. On April
30, 2009 a superior court judgment in favor of redevelopment agencies was rendered,
affirming that the take was unconstitutional and therefore illegal. The State appealed the
decision but subsequently dropped its appeal.
The State of California approved the FY2009-2010 budget relying on a $2.05 billion ERAF shift
from redevelopment agencies over the next two years. The additional shift to ERAF (referred
to as the Supplemental Educational Revenue Augmentation Fund or “SERAF”) is estimated to
result in a payment of $25,502,408 in 2009-2010, and $5,250,496 in 2010-2011 from the
Agency. Within the budget, there is a provision by which the Agency has the option to
suspend the 2009-2010 20% housing set-aside contribution in order to assist the SERAF shift
in that year; however the loan will need to be repaid by June 30, 2015. The loan could
35
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
potentially delay many of the housing programs and projects anticipated over the next five year
period.
While the California Redevelopment Association believes this shift of tax increment from
redevelopment falls under the same circumstances as the previous attempt, the Agency
potentially could lose up to $30 million to SERAF shifts over the next two years. These shifts of
dollars from redevelopment will severely impact the Agency’s ability to complete many of the
projects both committed and anticipated over the next five year period. The California
Redevelopment Association has filed another lawsuit in an effort to thwart this and future takes
from redevelopment.
HOUSING FUND CASH FLOW ANALYSIS FISCAL YEAR 2010-2014 Table 13
870 2010 2011 2012 2013 2014 BOND FUNDS 5-Year Total
Beginning Balances (July 1st)38,103,528 32,567,510 19,953,848 14,648,690 13,002,443 25,536,590
Housing Set Aside - Combined 16,972,910 16,633,452 16,633,452 16,966,121 17,305,444 84,511,379
Other Income 778,071 397,332 272,628 221,038 294,049 1,963,118
Subtotal - Income 17,750,981 17,030,784 16,906,080 17,187,159 17,599,493 25,536,590 86,474,497
Debt Service 9,082,704 9,080,986 9,082,014 9,081,387 9,082,912 45,410,003
Administration 1,545,822 1,573,460 1,617,424 1,666,624 1,718,117 8,121,447
Programs/Projects2 12,658,473 18,990,000 11,511,800 8,085,396 8,471,540 25,378,948 85,096,157
Subtotal - Expenses 23,286,999 29,644,446 22,211,238 18,833,407 19,272,569 138,627,606
Revenue - Expenditures (5,536,018) (12,613,662) (5,305,158) (1,646,248) (1,673,076) 157,642 (52,153,109)
Ending Cash Balance (June 30)32,567,510 19,953,848 14,648,690 13,002,443 11,329,367 157,642 11,487,009
1 Additional information on unfunded projects (land is partially funded) may be found on the Proposed Redevelopment Program List.
Source: Palm Desert Redevelopment Agency
REVENUE
EXPENSES
During the five-year period covered by this Plan, it is possible that the Agency will undertake
some but not all of the listed projects. All costs and time frames listed for the programs and
projects are estimates only and may differ from the actual costs and time frames. In the event
that a program or a project is included in the list for one Project Area but is not included in the
list of another Project Area (or other Project Areas), but the Agency later determines that the
program or project would also benefit the latter, the Agency may use funds available from the
latter Project Area (or Project Areas) to finance all or a portion of such program or project.
Specific projects may also be modified or added depending on actual circumstances, including
but not limited to changing needs of the Project Areas, actual costs of the projects and the
availability of funding.
36
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
EXPENDITURES BY HOUSEHOLD TYPES
Effective January 2002 and as amended in 2006, expenditures of housing set-aside revenues
are subject to certain requirements imposed by the CRL. At a minimum, the Agency’s Housing
Fund revenues are to be expended in proportion to the community’s need for low and
moderate income housing.7 Additionally, expenditures for senior housing is limited.
The community’s proportionate need is based on statistics from Southern California
Association of Governments or “SCAG”, used by local government to meet state requirements
for affordable housing by category, and the US Department of Housing and Urban
Development’s (“HUD”) Comprehensive Housing Affordability Strategy (“CHAS”) allocation
numbers.
Based on the Community’s proportionate housing needs, the Agency’s Housing Fund dollars
must be expended over the Compliance Period (as shown in Table 15) in a manner consistent
with a minimum of 41% of the funds spent to assist very low income persons or households
and at a minimum of 28% spent on low income persons or households. The remaining 31%
may be allocated either to the combined very low, low or moderate income groups, but not to
exceed this percentage spent on moderate income persons or households.
The limitations or targeting requirements also address the amounts of Housing Fund dollars
spent during the Compliance Period to assist all persons regardless of age in at least the same
proportion as the number of low-income households with a member under the age of 65 bears
to the total number of low income with in the Community. RSG has calculated the percentage
of low income households and low income senior households based upon information taken
from HUD’s CHAS for the City of Palm Desert (see Table 14 below). Based upon the current
CRL regulations, the Agency is limited to expending a maximum of 46% of its Housing Funds
during this Compliance Period on housing limited to Senior/Elderly Households.
Table 14
LIMITATIONS ON FUNDS SPENT FOR SENIOR HOUSING
Low Income Households1
Number of
Households % of Total
Elderly/Senior 2,670 46%
Family Other 3,182 54%
Total 5,852 100%
1 As computed from the US department of Housing and Urban Development's
Comprehensive Housing Affordability Strategy ("CHAS")
Table 15 represents the minimum and maximum Housing Fund expenditure thresholds for low
and moderate income groups and the maximum Housing Fund expenditure thresholds for
7 Required proportions of funds to be expended are based upon the City’s Regional Housing Need as provided by
Southern California Association of Governments. The number of units required for very low, low and moderate
income households provide the basis for the targeting calculation as required by Section 33334.4 of the
Redevelopment Law.
37
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
households 65 years of age, over the term of the Compliance Period. The chart specifically
details the Agency’s Housing Fund expenditures during each of the five year periods that
comprise the Compliance Period.
This Compliance Plan represents the Agency’s overall plan to meet its housing obligations for
the next five year period. The Projects and Programs detail constitute the Agency’s approach
and plan to meeting the requirements of the CRL. The Agency anticipates meeting its Housing
Fund targeting requirements by the end of the Compliance Period by implementing the
projects and programs listed in Table 3. Housing Fund expenditures detailed in Table 13 have
been allocated to projects and programs in accordance with targeting requirements.
38
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Income Targeting
Category Requirement 2004-05 2005-06 2006-07 2007-08 2008-09 Expenditure3 %2009-10 2010-11 2011-12 2012-13 2013-14 Expenditure %Expenditure %
Very Low 41%$147,349 $9,212,325 $280,880 $5,510,141 $8,327,564 $23,478,349 42%$7,105,176 $9,641,882 $6,645,765 $5,272,987 $5,427,694 $34,093,505 40%$57,571,854 41%
Low 28%$461,857 $7,560,722 $142,695 $4,292,804 $4,749,123 $17,207,201 31%$4,655,220 $6,317,238 $4,354,220 $3,454,794 $3,556,156 $22,337,629 26%$39,544,830 28%
Unrestricted
(VL, L & M)1 31%$261,481 $1,285,518 $73,566 $12,285,973 $1,558,176 $15,464,715 28%$5,973,866 $8,106,669 $5,587,604 $4,433,405 $4,563,479 $28,665,023 34%$44,129,738 31%
Total 100%$870,687 $18,058,566 $497,141 $22,088,918 $14,634,863 $56,150,265 100%$17,734,263 $24,065,790 $16,587,590 $13,161,186 $13,547,329 $85,096,157 100%$141,246,422 100%
Age Targeting
Category Requirement Expenditure3 % Expenditure %Expenditure %
Non-Senior 54%$765,666 $14,696,960 $433,174 $18,353,283 $11,912,215 $47,051,875 84%$6,200,033 $8,413,583 $5,799,147 $4,601,251 $4,736,249 $29,750,263 35%$76,802,138 54%
Senior1,2 46%$105,021 $3,361,606 $63,967 $3,735,635 $2,722,648 $9,098,390 16%$11,534,230 $15,652,207 $10,788,442 $8,559,935 $8,811,080 $55,345,893 65%$64,444,283 46%
Total 100%$870,687 $18,058,566 $497,141 $22,088,918 $14,634,863 $56,150,265 100%$17,734,263 $24,065,790 $16,587,590 $13,161,186 $13,547,329 $85,096,157 100%$141,246,422 100%
Source: SCAG, HUD, Palm Desert Redevelopment Agency
2004-05 to 2013-14
Table 15
3 Annual expenditures reflected during the 2004-05 through 2008-09 are felected based on unit completion date and may vary from actual year of expenditure.
2 Data of low income households under the age of 65 is not readily available from the Census. The nearest metric for such Census data represents households under the age of 62 (available via the Comprehensive Housing Affordability Strategy at
1 The targeting limits for Moderate Income Units and Senior Age Restricted Units are maximimum thresholds may not be exceeded for those categories.
2004-05 through 2013-14 Proportional Project and Program Expenditures
2004-05 to 2013-142009-10 to 2013-142004-05 to 2008-09
2004-05 to 2008-09 2009-10 to 2013-14
39
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
P RIOR FIVE-YEAR HOUSING FUND EXPENDITURES
Units Assisted by Housing Set Aside Fund
CRL requires that the Compliance Plan provide a recap of the number of the projects assisted
by the Housing Fund to create extremely low, very low, and low units over the past
implementation plan period (2004-05 through 2008-09). CRL also requires a recap of the
number, location, level of affordability and the amount of Housing Funds expended on multi-
family units. Table 16 summarizes these statistics:
Housing Fund Expenditures: 2004-05 through 2008-09 Table 16
Project
Palm Village 18 $4,171,455 18 $4,171,455 0 $0 36 $8,342,909
La Rocca Villas Senior 13 1,773,774 14 1,910,218 0 - 27 3,683,992
Sagecrest Senior 3 462,994 10 1,543,314 1 154,331 14 2,160,639
Falcon Crest1 0 - 13 1,639,661 80 10,090,224 93 11,729,885
Habitat for Humanity 2 254,067 0 - 0 - 2 254,067
Carlos Ortega Villas/Country Village2 30 2,141,993 30 2,141,993 12 856,797 72 5,140,783
Sagecrest3 7 786,420 9 1,011,112 1 112,346 17 1,909,878
California Villas*97 6,959,745 26 1,865,499 18 1,291,499 141 10,116,743
Laguna Palms*27 3,705,327 5 686,172 16 2,195,749 48 6,587,248
Candlewood Senior*23 2,494,549 4 433,835 3 325,376 30 3,253,759
One Quail Place 185 262,383 166 235,435 33 46,803 384 544,621
Desert Pointe 40 97,898 17 41,606 7 17,132 64 156,636
Compliance Programs
Acquisiton, Rehabiliation, and Resale 2 100,364 27 1,269,599 4 271,273 33 1,641,236
Home Improvement Program 41 235,845 14 63,987 2 11,188 57 311,020
Desert Rose 2 9,222 28 104,496 3 19,755 33 133,473
First Time Homebuyer Program 0 - 3 88,821 1 72,241 4 161,062
Rental Assistance 2 22,314 0 - 0 - 2 22,314
Total 492 $23,478,349 384 $17,207,201 181 $15,464,715 1,057 $56,150,265
Expenditures for programs in progress4:$1,911,080
Total Expenditures $58,061,345
$ Spent on $ Spent on
Age Assisted VL Units Low Units Mod Units Total Exp.
Units for Seniors 66 $4,731,317 28 $3,887,366 4 $479,707 71 $9,098,390
Units for Families with Children 426 $18,747,032 356 $13,319,835 177 $14,985,008 959 $47,051,875
Total 492 $23,478,349 384 $17,207,201 181 $15,464,715 1,057 $56,150,265
1 The Falcon Crest includes development costs, homebuyer subsidy costs, and loan receivables.
2 Expenditures include acquistion costs for Country Village and the unit allocation is based on the proposed Carlos Ortega Villas development.
3 Expenditures include acquistion and the unit allocation is based on the proposed Sagecrest development.
4 Programs in progess include Taos Palm Renovation and Hill Property.
Notes:
*These properties have been acquired, and are being renovated. The inclusionary units were counted when the properties were acquired.
Expenditures detailed in this table include net values inclusive of loan recievables.
Low
Units
Mod
Units
Total
Affordable
Units
Assisted
Total
Affordable
Units
Total
Expenditures
Low Inc.
Units
$ Spent on
Low Inc.
Units
Mod Inc.
Units
$ Spent on
Moderate
Income Units
$ Spent on VL
Very
Low Inc.
Units
$ Spent on
Very Low Inc.
Units
40
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Affordable Housing Units Constructed
During Prior Implementation Plan without Agency Assistance
Since fiscal year 2004-05, no affordable units featuring long term covenant restricted units
(affordable units with covenants of at least 45 years for ownership housing or 55 years for
rental housing) have been created without the use of Housing Funds.
41
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
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 noticed 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 and Affordable Housing Compliance Plan.
42
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
EXHIBIT A
Affordable Housing Glossary of Terms
Inclusionary Housing Production
There are many ways in which the Agency may create inclusionary units that satisfy the
requirements outlined in Law Section 33413 including new construction of for-sale and rental
housing, substantial rehabilitation, and the purchase of covenants on multifamily rental
housing.
New Construction & Substantial Rehabilitation: For-sale (affordable) inclusionary units or
inclusionary multifamily rental housing may be created by assisting new construction or
providing financing for purchasers of new housing, and by substantially rehabilitating such
units per the Law definition. To be counted toward the Agency inclusionary unit need, for sale
units must be covered by a 45-year affordability covenant and rental units by a 55-year
affordability covenant.
Purchase of Covenants: The Agency may use the Housing Fund to subsidize multifamily units
that are not substantially rehabilitated or newly constructed, by the purchase of an affordability
covenant. The affordability covenants on multifamily units would restrict such units for a
period of 55 years. Such units must be occupied by and affordable to very low and low income
households. The Agency may only meet up to 50% of their required inclusionary unit need in
this manner. Furthermore, 50% of the covenants purchased must be affordable to very low
and low income households. Inclusionary units secured by the Agency through the purchase of
covenants, substantial rehabilitation, and new construction that are located within the Project
Area boundaries can be counted on a one-for-one basis. If the units are located outside of the
Project Area they only receive one-half (½) credit (counted on a two-for-one basis). Mutual
self-help housing units receive a 1/3 credit towards satisfying inclusionary unit production
requirements.
Mutual Self-help Housing: Mutual self-help housing refers to very low or low income, owner-
occupied housing units where residents have contributed at least 500 hours of work on the unit
to ensure safe and sanitary housing. Mutual self-help housing units must be deed restricted
for at least 15 years. Each housing production unit must have a covenant recorded with the
county pursuant to Law Section 33334.3 in order to be counted.
Duration of Affordability Covenants
Prior to January 1, 2002: for no less than the period of land use controls established in the
redevelopment plan.
43
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
After January 1, 2002: for the longest feasible time, but not less than 55 years for rental
housing and 45 years for owner occupied housing.
Under Section 33413, rental housing units may be replaced prior to the expiration of the 55 -
year period with equally affordable and comparable rental units in an other location within the
City if (i) the replacement units are available for occupancy prior to the displacement of any
persons residing in the subject units and (ii) the comparable replacement units are not
developed using moneys in the Housing Fund.
Under Section 33413, owner-occupied units may be sold prior to the expiration of the 45-year
period for a price in excess of what would otherwise be allowed if the units are subject to an
equity sharing agreement or some other program that protects the Agency’s investment of
Housing Fund moneys. The Agency must deposit the excess proceeds in the Housing Fund
and within three years from the date of the sale of the units, spend funds to make affordable an
equal number of units at the same income` level as the units sold. Only the units originally
assisted by the Agency can be counted towards the Agency’s obligations under Section
33413.
Affordability Income and Cost Levels
Section 50052.5 of Health and Safety Code defines affordable housing cost (adjusted for
family size appropriate for unit) as:
§ Extremely Low – Not more than 30% of 30% of the County median household income.
§ Very Low - Not more than 30% of 50% of the County median household income. The
Agency’s Housing Stipulation requires that rental units be calculated as not more than
25% of 50% of the County median household income.
§ Low - Not more than 30% of 70% (or 30% of 60% for rental projects) of the County
median household income.
§ Moderate - Not more than 35% of 110% (or 30% of 110% for rental projects) of the
County median household income.
The following tables detail affordable housing costs for rental and ownership units in Palm
Desert based on the 2009 Riverside County Area Median Income.
44
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Affordable Housing Analysis for Rental Units
Palm Desert Redevelopment Agency
Very Low
Income1
Low
Income
Moderate
Income
County Median Income ( 4 Person Household )$64,500 $64,500 $64,500
% of County Median Income 50%60%110%
Annual Gross Income $32,250 $38,700 $70,950
% of Income to Housing 25%30%30%
Annual Housing Cost $8,063 $11,610 $21,285
Monthly Housing Cost $672 $968 $1,774
Less:Utilities ($108)($108)($108)
Available for Monthly Rent $564 $860 $1,666
Average Rent for a 3 Bedroom Unit2 $1,316 $1,316 $1,316
Unfunded Gap (between affordable and median rent)($752)($457)n/a
1 The Housing Stipulation requires the very low income rental units be calculated as 25% of 50% Area Median Income.
2 Palm Desert apartment rent survey.
Source: State Income Limits for 2009 published by the Californing Department of Housing and Community Development; and
Rent Survey
45
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
Affordable Housing Analysis for Ownership Units
Palm Desert Redevelopment Agency
Very Low
Income
Low
Income
Moderate
Income
County Median Income ( 4 Person Household )$64,500 $64,500 $64,500
% of County Median Income 50%70%110%
Annual Gross Income $32,250 $45,150 $70,950
% of Income to Housing 30%30%35%
Annual Housing Cost $9,675 $13,545 $24,833
Monthly Housing Cost $806 $1,129 $2,069
Less:Property Taxes 1.15%($56)($101)($234)
Insurance 0.30%($53)($53)($53)
HOA fees ($200)($200)($200)
Utilities ($214)($214)($214)
Available for Mortgage $284 $561 $1,369
Qualified Mortgage (30 year amortizing loan)6.50%$44,913 $88,757 $216,620
Down Payment 5.00%$2,364 $4,671 $11,401
Total Affordable Home Price $47,277 $93,428 $228,021
Condominiums
Median Cost of Condominiums in City of Palm Desert1 $233,000 $233,000 $233,000
Unfunded Gap (between affordable price and median cost)($185,723)($139,572)($4,979)
Single Family Residences
Median Cost of SFR in City of Palm Desert1 $290,000 $290,000 $290,000
Unfunded Gap (between affordable price and median cost)($242,723)($196,572)($61,979)
1 DQNews.com June 2009 value
Source: State Income Limits for 2009 published by the Californing Department of Housing and Community Development
46
Palm Desert Redevelopment Project Areas
Housing Compliance Plan 2009-10 through 2013-14
RIVERSIDE COUNTY2009 Affordable Income Limits(Income figures based on Department of Housing and Community Development Income Limits dated April 2, 2009)1 Person Household2 Person Household3 Person Household4 Person Household1Median Income:$45,150Median Income:$51,600Median Income:$58,050Median Income:$64,500Income CategoryAnnual Income (1)Income CategoryAnnual IncomeIncome CategoryAnnual IncomeIncome CategoryAnnual IncomeVery Low$23,300Very Low$26,650Very Low$29,950Very Low$33,300Low$37,300Low$42,650Low$47,950Low$53,300Moderate$54,200Moderate$61,900Moderate$69,650Moderate$77,4005 Person Household6 Person Household7 Person Household8 Person HouseholdMedian Income:$69,650Median Income:$74,800Median Income:$80,000Median Income:$85,150Income CategoryAnnual IncomeIncome CategoryAnnual IncomeIncome CategoryAnnual IncomeIncome CategoryAnnual IncomeVery Low$35,950Very Low$38,650Very Low$41,300Very Low$43,950Low$57,550Low$61,850Low$66,100Low$70,350Moderate$83,600Moderate$89,800Moderate$96,000Moderate$102,1501 Annual income limits may be adjusted for household size per the Department of Housing and Community Development, differing from the affordable housing costs identified in Health and Safety Code Section 50052.5.