HomeMy WebLinkAboutRes 575 - Rplcmnt Housing Pln for Sagecrest AptsPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 575 APPROVING THE REPLACEMENT
HOUSING PLAN FOR SAGECREST APARTMENTS
SUBMITTED BY: Martin Alvarez, Redevelopment Manager
Jessica Gonzales, Management Analyst
DATE: June 24, 2010
CONTENTS: Resolution No. 575
Sagecrest Apartments Replacement Housing Plan
Recommendation
By Minute Motion that the Agency Board waive further reading and adopt
Resolution No. 575 , approving the Replacement Housing Plan for the Sagecrest
Apartments, substantially as to form.
Executive Summary
The Redevelopment Agency is required by law to adopt a Replacement Housing Plan whenever
the Agency takes action that would lead to the destruction or removal of dwelling units from the
low and moderate income housing market.
As part of the Sagecrest Apartment project, the Agency will remove 14 apartment units, of which
2 units were available to low and moderate income households. According to Community
Redevelopment Law, such removal requires that the Agency "replace" those units within four
years. The Replacement Housing Plan has been created to identify designated replacement
units that are and/or will be available to replace these 2 units within the required time period.
Backaround
In February of 2010, the Agency approved a Relocation and Replacement Housing Plans
("Plans") for Sagecrest Apartments. Only 2 of the 14 units were occupied at the time the
Relocation Plan was approved. All of the tenants occupying these units were relocated. The
Agency proposes to remove the existing 14 apartment units that make up the Sagecrest
Apartments.
Pursuant to Health and Safety Code Section 33413, the Agency is required to adopt a
Replacement Housing Plan ("RHP") whenever the Agency takes action that would lead to the
destruction or removal of dwelling units from the low and moderate income housing market in
order to ensure that the removed housing will be replaced. The law further states that such
replacement housing will be created within four years.
The Agency has prepared a RHP based on the redevelopment and removal of the Sagecrest
Apartments located at 73-775 Santa Rosa Way, Palm Desert (also known as 44-200 San
Staff Report
Adopt Resolution No. 575 Approving the RHP for Sagecrest
June 24, 2010
Page 2 of 2
Pasqual Avenue, Palm Desert). Two of the fourteen units at Sagecrest were available to low
and moderate income households at the time of acquisition and must be replaced within the four
year time limit. The tenants occupying these 2 units vacated the units on May 7, 2010, and June
3, 2010. Further, at the time of property acquisition, 2 units were vacant and determined to need
substantial modifications. When the remaining occupied units were vacated, they were not re -
rented because they would need substantial modifications including accessibility and drainage
that could not be accomplished with the exiting structural conditions.
The RHP describes and details the housing units (existing and/or approved) that will be used to
`replace' the housing units removed. The RHP includes (1) the general location of housing to
be rehabilitated, developed, or constructed; (2) an adequate means of financing such
rehabilitation, development, or construction, (3) a finding that the replacement housing does not
require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that
such approval has been obtained, (4) the number of dwelling units housing persons and families
of low or moderate income planned for construction or rehabilitation, and (5) the timetable for
meeting the Plan's relocation, rehabilitation, and replacement housing objectives.
The Housing Commission has reviewed the Plan as an information item at its regular meeting of
June 9, 2010. In addition, the Plan has been available for review by the public since June 10,
2010.
Staff therefore recommends that the Agency Board approve the RHP as presented to comply
with the requirements of Health and Safety Code Section 33413.
Fiscal Analvsis
No further fiscal impact is anticipated at this time with the exception of the previously approved
consultant costs for the development of the Plans.
Submitted by:
(--�0..n-0
J V
ica donzal s, anagement Analyst
Dora m t Head: �)1
�_ S'Ae- —
Janet Modre, Director of Housing
Approval:
cCarthy, ACM
;artin Alvarez, Redevelopment Manager
I BY RDA�-
ON
VERIFIED BY
I-J
Original on file with City Clerk's Office
n M. Wohlmuth, Executive Director
staff report Replacement Housing Plan (Sagecrest) - 061010.DOC
RESOLUTION NO. 575
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING THE REPLACEMENT HOUSING PLAN FOR
SAGECREST APARTMENTS
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The Palm Desert Redevelopment Agency ("Agency") is required to
adopt a Replacement Housing Plan that details the measures the Agency will take to
replace affordable housing units within four years of removal of said units ("four-year
period").
Section 2. As part of the Sagecrest Apartments project ("project"), the Agency has
proposes to remove 14 apartment units, of which 2 were available to very low, low, and
moderate income households.
Section 3. The Agency hereby adopts the Replacement Housing Plan (the "Plan")
attached hereto and incorporated herein by this reference, which details the measures
the Agency will take to replace all affordable housing units removed in connection with
the project, including a description of the number of affordable housing units that were
already available in the Agency's inventory of such units, when the 2 units were removed
in connection with the project.
Section 4. The Plan describes the affordable housing units, existing and/or approved for
construction, that will be available within the four-year period to replace all affordable
housing units removed as part of the project.
Section 5. The Executive Director of the Agency shall have the authority to implement
and administer the Plan in accordance with its terms so long as such action is not
inconsistent with the Plan's intent.
PASSED, APPROVED AND ADOPTED by the Palm Desert Redevelopment
Agency, this _ day of _ 2010 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, Secretary
Cindy Finerty, Chairman
GArda\HOUSING\RENTAL\Sagecrest Apts\REPLACEMENT PLAN\Reso Replacement Housing Plan - Sagecrest.doc
REPLACEMENT HOUSING PLAN
FOR THE PROPERTY LOCATED
73-775 SANTA R
THE CITY OFF
ALM
WAY IN
ESERT
Prepared for:
CITY OF PALM DESERT REDEVELOPMENT AGENCY
73510 FRED WARING DRIVE
PALM DESERT, CA 92260-2524
Prepared by:
Ipmc"
1590 DREW AVE, SUITE 120
DAVIS, CA 95618
JUNE 2010
G:\rda\HOUSING\RENTAL\Sagecrest Apts\REPLACEMENT PLAN\Palm Desert Sagecrest Replacement Housing Plan- FINAL (AB).doc
TABLE OF CONTENTS
Introduction........................................................................................................................................................ 1
Unitsto Be Replaced........................................................................................................................................2
AnnualIncome Restrictions.............................................................................................................................3
Location Of Replacement Housing...............................................................................................................3
Financing the Replacement Housing...........................................................................................................4
Non -Applicability of Article XXXIV of the California Constitution............................................................4
Time Table for Replacement Housing...................................................................................................4
Summary................................................................................................................................................... 5
Addendum 1 - Expected Location of Income -Restricted Rep[ e its.....................................6
LIST OF TABLES
Tc
Tc
Tc
City of Palm Desert
June 2010
eLe ....................... 2
.............. ............... 3
........................................ 4
Sagecrest Apartments
Replacement Housing Plan
INTRODUCTION
This Replacement Housing Plan ("Replacement Housing Plan") is being prepared on behalf of the
Palm Desert Redevelopment Agency ("Agency") in conjunction with the demolition of fourteen
multi -family unit property and redevelopment of the property currently known as the Sagecrest
Apartments (the "Project"). The Project is located at 73-775 Santa Rosa Way (also known as 44200
San Pascual Avenue) in Palm Desert, California. Attachment 1 shows the location of the Project. The
Agency owns the property.
This Replacement Housing Plan (the "Plan") has been prepared by
planned removal of the 14 units described above and in order
replacement housing contemplated under the Community R
intends to make this Replacement Housing Plan available for
This Plan describes the following, per Community Red
• The general location of the replacement
• An adequate means of financing the replacement
• A finding that the replacement ho
Constitution (see Section G below);
• The number of replacement
Section D below); and
• The timetable for m
The Agency's goal in
replacement housing
feasible.
Section 334
requires,jiloWenev
or wh
destru
is in compliance
agency as a result of the
isfy the requirements for
ment Law. The Agency
of the California
and rehabilitation (see
g objectives (see Section F below).
Plan is to demonstrate that providing
ents of federal law and the CRL is
mmun devef v (Health and Safety Code Section 33000, et se .
(ling ousing persons and families of low or moderate income are
the and moderate income housing market as part of a
-nt project, whi s subje a written agreement with a redevelopment agency
ancial assistanc as bee provided, the agency shall within four years of the
or removal, re ilitate, develop, construct, or cause to be rehabilitated,
develope , onstructed, f ntal or sale to persons and families of low or moderate income, an
equal numbe placeme elling units that have an equal or greater number of bedrooms as
those destroyed mov its at affordable housing costs within the territorial jurisdiction of the
agency. When dw are removed after January 1, 2002, 1007o of the replacement dwelling
units shall be available ordable housing cost to persons in the same or a lower income category,
as the persons displaced from those destroyed or removed units.
Section 33413.5 of the Community Redevelopment Law requires an agency to adopt a
replacement housing plan whenever the agency executes an agreement for acquisition of real
property, or an agreement for the disposition and development of property or an owner
participation agreement which would lead to the destruction or removal of dwelling units from the
low and moderate income housing market. The plan shall identify the impacts that a particular
redevelopment project will have on the community's supply of low and moderate income housing
M
removed
City of Palm Desert Sagecrest Apartments
June 2010 Replacement Housing Plan
and detail the measures that the agency will take to ensure that the appropriate replacement
housing is produced within the four year time limit.
Replacement Units must have an equal or greater number of bedrooms as the removed units. The
replacement units must be within the agency's jurisdiction and in standard condition, and must be
affordable to low and moderate income households, for the longest feasible time, as determined by
the agency, but for not less than 45 years for ownership units and 55 years for rental units.
UNITS TO BE REPLACED
Two of the fourteen units to be removed have been identified a rdable, low to moderate -
income households. These units were occupied by low and to income tenants at the
time of property acquisition and vacated on May 7, 2010 a n 010. Further, at the time
of property acquisition, two units were vacant and dete d to b t habitable. Ten units
were vacated following property acquisition and V not re -rent s they were also
determined to be not habitable. Two of the 14 ng units to be r ved have been
determined to be affordable units and, per the Co it Redev ment L oth units shall
be replaced with dwelling units having an equal or gre num bedrooms. units to be
replaced are two -bedroom units. As a result, the repla its must consist t least four
bedrooms. Based on the income levels of the persons ed from the units, both of the
replacement units must be available at aff able housing cost ry-low income households.
The units are anticipated to be removed in 10. Therefo II replacement units must
be available by 2014, within 4 years after re val o
Table 1 defines the replacernaai housing obli i income I. The numbers under each
household income categ kkthe total u be replaced and the numbers in parenthesis
indicate the total numb edroo estroved ach income level.
Unit Size
Sagecrest Apartments
Replacement Housing Plan
Very -Low Income
N*
TABLE
IREMENTS
Low Income
0
(0)
SIZE & INCOME LEVEL
Moderate Income
0
(0)
Totals
2
(4)
City of Palm Desert
June 2010
2
ANNUAL INCOME RESTRICTIONS
California Health and Safety Code Sections 50079.5 and 50105 provide that the moderate, low
and very -low income limits established by the U. S. Department of Housing and Urban Development
("HUD") are the state limits for those income categories. Sections 50079.5 and 50105 direct the
Department of Housing and Community Development ("HCD") to publish the income limits. The
following figures, shown in Table 2, are approved for use in the County of Riverside to define and
determine housing eligibility by income level:
TABLE 2:
HOUSING ELIGIBILITY BY ANNUAL INCO EL
Income Category 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
Extremely Low 14,000 16,000 18,000 V21,60 23,200 00 26,400
(30% of Median)Very Low 23,300 26,650 29,950 33,338,650 41,3 43,950
(50% of median)
Area Median Income: $64,500
SOURCE: HCD, April 2009.
LOCATION OF REPLA T HOUSI
The Agency has several . ns ble to provid placement housing, including acquisition,
rehabilitation, new constr e allocat of "banked" dwelling units from prior
developme The Ag nded or caused to be developed, affordable
housing a . e sur dwelling unl s and bedrooms that can be allocated by the
Agen r future ho obli s. The Agency has a number of "banked" dwelling
unit rooms to satisfy repla nt housing obligation. Such units together with the
appr units that have n et bee constructed, (identified in Table 3 and Addendum 1)
constitu sufficient number replacement units.
As described ble 3, the f ing affordable housing units/bedrooms have been developed, or
are planned to develo by 2010, within the Agency's jurisdiction. All such units are/will be
available at an a using cost to low or moderate income households and subject to a
restrictive covenant g such affordability for not less than 55 years for rental units and 45 years
for owner occupied its. Addendum 1, at the end of the Plan, outlines the locations or
proposed locations of these affordable units.
City of Palm Desert Sagecrest Apartments
June 2010 Replacement Housing Plan
3
TABLE 3:
AFFORDABLE HOUSING PROJECTS/BANKED UNITS & BEDROOMS
Very Low
Unit Size Income Low Income
Net Banked (Existing) Units / No. of Bedrooms 3/9 0/0
Projects Units/Bedrooms to be provided 0/0
(Approved but not yet constructed) Atff
0/0
Required Replacement Units/ No. of Bedrooms 2/4 0/0
FINANCING THE REPLACEMENT HOUSING
The Agency is authorized to finance its activities with
City of Palm Desert, State of California, United States
interest income; Agency bonds, or other available so
The existing units to be used for rer
rehabilitated with various funding soul
financing through the sale of tax exempt
set -aside funds; and developer funds. I
identified in the preceding section as '(
sources including: State or grai
financing through the sal P
set -aside funds; and d er funds.
through the use of an bination o
units, the Agency may units I
Bonus program provide t a
enforceable b aencv.
NON
BILITY OF
Moderate
Income
10/20
23/32
0/0
ncluding the
knent funds,
sits, have'91111liken acquired, constructed or
tax incre funds; below market rate
baue bonds; r twenty percent
ment%elopment
affordable housing units
Pax
e cted' may utilize a variety of
incre t funds; below market rate
venue bonds; redevelopment twenty percent
for future replacement housing units may be
ibed methods and sources. As replacement
kdevelopers pursuant to the City's Density
restrictive affordable housing covenant
It is y found and dete ed th e replacement housing identified in this replacement
housing does not requir pproval of the voters of the City of Palm Desert pursuant to
Article XX f the California nstitution. A portion of the housing identified in this replacement
housing plan t subject to voter approval requirements of Article XXXIV because such housing
is or will be priv owned, exempt from real property taxes by reason of public ownership, and
not financed with t I erm financing from a public body. In addition, the Agency will not
"develop, construct, uire" housing as described in Section 1 of Article XXXIV of the California
Constitution because providing assistance to developers, the Agency will only monitor
construction or rehabilitation of the project and compliance with conditions of the assistance to
the extent of carrying out routine governmental functions, performing conventional activities of a
lender, and imposing constitutionally mandated or statutorily authorized conditions.
TIME TABLE FOR REPLACEMENT HOUSING
The Agency has provided a considerable degree of continuing support in the construction
and/or rehabilitation of replacement housing units sufficient to address the replacement
Sagecrest Apartments City of Palm Desert
Replacement Housing Plan June 2010
4
requirements of affordable housing discussed in this Plan. It is the intent of the Agency to use
"banked" previously developed housing units as well as housing units that have been approved
but not yet constructed to fulfill its replacement housing requirement.
The Agency acknowledges that replacement housing units must be affordable in the same, or
lower income categories than those being removed from the low and moderate income
housing market and will ensure that this result is realized.
Further, any units developed as replacement housing units will be completed within four years and will
remain income -restricted for the appropriate period as required by law.
SUMMARY
In summary, a total of 28 bedrooms in 14 dwelling units
affordable dwelling units will be replaced. 'A
Based on the 100% replacement criteria by incoNbc
replacement housing options will replace the four income households by using previously developed happroved but not yet constructed. The result of the a
of replacement dwelling units as mandatel6Lnder Community
The Agency recognizes its legal and commul
good -faith effort to accomplish these goals. TI-
strategies not discussed herein to fulfill its repla
City of Palm Desert
June 2010
bedrooms in two
variety of
moderate
well as units thWhave been
will yield the required number
elopment Law.
r and will make a sincere,
e other approaches and
in a timely manner.
Sagecrest Apartments
Replacement Housing Plan
ADDENDUM 1 - EXPECTED LOCATION OF INCOME -RESTRICTED REPLACEMENT UNITS
The following are the actual and expected locations of income -restricted units which will be
used to meet the Agency's replacement obligation of two units with not less than four bedrooms.
Bedrooms & Income: Replacement Scheduled
L.ocaliom Completio
Very Low Income: Lee Carel and Sandra Carel Co
It is
thrc
incc
Sagecrest Apartments
Replacement Housing Plan
73-735 Santa Rosa Way 4v Ilk
of affordable housing
;oncentrations of lower -
City of Palm Desert
June 2010
1511
NOTICE OF PROPOSED ADOPTION OF REPLACEMENT HOUSING PLAN AND AVAILABILITY
OF REVIEW OF PLAN
NOTICE IS HEREBY GIVEN that the Palm Desert Redevelopment Agency will consider the
adoption of a Replacement Housing Plan ("Replacement Plan") for the proposed development of
new housing units on the real property identified as 73-775 Santa Rosa Way, Palm Desert,
California ("Project") at its meeting of June 24, 2010.
The time, date and place of the meeting is as follows:
TIME: 4:00 p.m.
DATE: June 24, 2010
PLACE: Palm Desert City Hall Chambers
73-510 Fred Waring Drive
Palm Desert, California 92260
At this meeting, the Agency will consider the adoption of the Replacement Plan in connection with
the redevelopment and removal of the Sagecrest Apartments located at 73-775 Santa Rosa Way,
Palm Desert (also known as 44-200 San Pasqual Avenue, Palm Desert). Any of the units that are
required to be replaced must be replaced within the four-year time limit pursuant to California Health
and Safety Code Section 33413. The Plan includes (1) the general location of housing to be
rehabilitated, developed, or constructed; (2) an adequate means of financing such rehabilitation,
development, or construction, (3) a finding that the replacement housing does not require the
approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval
has been obtained, (4) the number of dwelling units housing persons and families of low or moderate
income planned for construction or rehabilitation, and (5) the timetable for meeting the Plan's
relocation, rehabilitation, and replacement housing objectives.
A copy of the above -referenced Replacement Plan is available for public review and copying
at the office of the City Clerk of the City of Palm Desert located at the above address.
Any person wishing to be heard regarding the proposed adoption of the Replacement Plan
may appear at the June 24, 2010 meeting or may send written comments to the undersigned at the
address shown above.
In compliance with the Americans with Disabilities Act, if you need special assistance to
participate in a Palm Desert Redevelopment Agency meeting or other services offered by this City of
Palm Desert, please contact the City Clerk's Office at (760) 346-0611. Notification at least 48 hours
prior to the meeting or time when services are needed will assist the City staff in assuring that
reasonable arrangements can be made to provide accessibility to the meeting or service.
Signed this day, the 9th day of June, 2010
i RACHE`aE D. KLASSEN, SECRETA .
,�% PALM DESERT REDEVELOPMENT AGENCY
Martinez, Gloria
From: Moeller, Charlene [CMOELLER@palmspri.gannett.com]
Sent: Wednesday, June 09, 2010 9:08 AM
To: Martinez, Gloria
Subject: RE: Legal Notice - Rplcmnt Housing Pin & Availability of Rvw of Pin (Sagecrest)
Ad received and will publish on date(s) requested.
Charlene Moeller
Public Notice Customer Service Rep.
The Desert Sun Newspaper
750 N. Gene Autry Trail, Palm Springs, CA 92262
(760) 778-4578, Fax (760) 778-4731
Desert Sun lepalsO-thedesertsun.com
& Desert Post Weekly dowleaalsCcDthedesertsun.com
The Coachella Valley's #1 Source in News & Advertising! Visit us at mydesert.com
NOTE: Starting on March 29th, there will be a $10 affidavit processing fee added to the cost of each Public Notice
From: gmartinez@cityofpalmdesert.org [mailto:gmartinez@cityofpalmdesert.org]
Sent: Wednesday, June 09, 2010 9:04 AM
To: tds-legals
Cc: mloredo@cityofpalmdesert.org; pleon@cityofpalmdesert.org; jgonzales@cityofpalmdesert.org
Subject: Legal Notice - Rplcmnt Housing Pin & Availability of Rvw of Pin (Sagecrest)
PLEASE PUBLISH THE FOLLOWING:
LEGAL NOTICE
Notice of Proposed Adoption of Replacement Housing Plan for the Proposed Development of New Housing
Units on the Real Property Identified as 73-775 Santa Rosa Way, Palm Desert, California at its Regular
Meeting of June 24, 2010.
TWICE IN THE DESERT SUN
Friday, June 11, 2010
Thursday, June 17, 2010
If you have any questions or require additional information, please give me a call.
Thank you, CharleneM
Records Technician G
City of Palm Desert
73-510 Fred Waring Drive