HomeMy WebLinkAboutResolution 587 Replacement Housing Plan for Adobe Villas ApartmentsPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 587 APPROVING THE REPLACEMENT
HOUSING PLAN FOR ADOBE VILLAS APARTMENTS
SUBMITTED BY: Jessica Gonzales, Management Analyst - Housing
DATE: July 14, 2011
CONTENTS: Resolution No. 587
Adobe Villas Apartments Replacement Housing Plan
Recommendation
That the Agency Board waive further reading and adopt Resolution No. 587 ,
approving the Replacement Housing Plan for the Adobe Villas Apartments,
substantially in the form attached.
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 lower and moderate income housing market.
As part of the proposed development of a public parking lot on the Adobe Villas Apartments
property ("Project"), the Agency will remove 12 apartment units, of which 5 units were
available to lower and moderate income households. Pursuant to applicable provisions of
the Community Redevelopment Law, such removal requires that the Agency "replace" those
units within four years. The Replacement Housing Plan has been prepared to identify
designated replacement units that are and/or will be available to replace these 5 units within
the required time period.
Backqround
In April 14, 2011, the City Council and Agency approved a Relocation Plan ("Plan") for
Adobe Villas Apartments. Only 7 of the 12 units were occupied at the time the City/Agency
approved the Plan. The Project would require the displacement of the tenants occupying
these 7 units. The Agency is providing relocation assistance and benefits to these tenants.
The Agency proposes to remove the existing 12 apartment units that make up the Adobe
Villas 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 housing lower and moderate income household
from the housing market in order to ensure that the removed housing will be replaced. The
law further requires the Agency to replace the removed housing within four years.
The Agency has prepared a RHP based on the redevelopment and removal of the Adobe
Villas Apartments located at 45-330 Ocotillo Drive, Palm Desert (identified as APN 627-232-
005). Five of the twelve units at Adobe Villas were occupied by lower and moderate income
Staff Report
Adobe Villas Apartments Replacement Housing Plan
July 14, 2011
Page 2 of 2
households at the time the Agency approved the redevelopment of the property to construct
the Project. Accordingly, the Agency must replace these 5 units within the four-year time
limit. The Agency anticipates that the tenants occupying these 5 units will vacate the units
by July 30, 2011.
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 lower or moderate income planned for construction or
rehabilitation, and (5) the timetable for meeting the RHP's relocation, rehabilitation, and
replacement housing objectives.
In addition, the RHP has been available for review by the public since June 9, 2011.
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 Analysis
No further fiscal impact is anticipated at this time with the exception of the previously
approved consultant costs for the development of the Plan and the relocation assistance
benefits to the tenants.
Submit
t by:
Jes i a Gonzales anagement Analyst
Approval: /
o
Ju n cCarthy, A ed 3velopment
Department He .
(Joet Moore, Director of Housing
ohn M. ohlmuth, Executive Director
G \rda\HOUSING\RENTAL\Adobe Villas Apts\Adobe Villas Relocation -Replacement Project\Staff report Replacement Housing Plan (Adobe Villas) 071411 doc
RESOLUTION NO. 587
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING THE REPLACEMENT HOUSING PLAN FOR ADOBE VILLAS
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 units
housing lower and moderate -income households within four years of removal of said units
("four-year period").
Section 2. The Agency is proposing to develop a public parking lot on the Adobe
Villas Apartments property ("Project"). The property is located at 45-330 Ocotillo Drive in Palm
Desert, California and identified as APN 627-232-005 (the "Property").
Section 3. As part of the Project the Agency proposes to remove the 12 multi -family
apartment units at the Property of which 5 were available to lower and moderate income
households.
Section 4. The Agency hereby adopts the Replacement Housing Plan (the "RHP")
attached hereto and incorporated herein by this reference. The RHP details the measures
the Agency will take to replace the housing units removed in connection with the Project.
The RHP also includes a description of the number of housing units that were available to
lower and moderate -income households that will be removed in connection with the Project.
Section 5. The RHP describes the 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 6. The Executive Director of the Agency shall have the authority to
implement and administer the RHP in accordance with its terms so long as such action is not
inconsistent with the RHP's intent.
PASSED, APPROVED AND ADOPTED by the Palm Desert Redevelopment Agency,
this _ day of _ 2011 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Jean Benson, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
G.\rda\HOUSING\RENTALWdobe Villas Apts\Adobe Vilas Relocation -Replacement Project\Reso Replacement Housing Plan - Adobe Villas 7-14-11 doc
FINAL
Plan
for the
45-330
City of
Replacement Housing
Property Located at
Ocotillo Drive in the
Palm Desert
Prepared by:
City of Palm Desert Redevelopment Agency
73510 Fred Waring Drive
PALM DESERT, CA 92260-2524
JULY 2011
G:\rda\HOUSING\RENTAL\Adobe Villas Apts\Adobe Villas Relocation -Replacement Project\FINAL Adobe Villas Replacement Housing Plan 7-14-11.doc
TABLE OF CONTENTS
A. Introduction.................................................................................................................................................. 1
B. Units to Be Replaced...................................................................................................................................2
C. Annual Income Restrictions......................................................................................................................3
D. Location Of Replacement Housing.........................................................................................................3
E. Financing the Replacement Housing......................................................................................................4
F. Non -Applicability of Article XXXIV of the California Constitution.......................................................4
G. Time Table for Replacement Housing.....................................................................................................5
H. Summary .......................................................................................................................................................5
Addendum 1 - Expected Location of Income -Restricted Replacement Units.....................................6
LIST OF TABLES
Table 1: Replacement Housing Requirements by Bedroom Size & Income Level ...........................2
Table 2: Housing Eligibility by Annual Income Level...............................................................................3
Table 3: Affordable Housing Projects/Banked Units & Bedrooms........................................................4
Adobe Villas Apartments City of Palm Desert
Replacement Housing Plan July 2011
A. INTRODUCTION
This Replacement Housing Plan ("RHP") is being prepared by the Palm Desert Redevelopment
Agency ("Agency") in conjunction with the demolition of a twelve unit multi -family property and
subsequent redevelopment of the property currently known as the Adobe Villas Apartments (the
"Property"). The Property is located at 45-330 Ocotillo Drive in Palm Desert, California and identified
as APN 627-232-005. The Agency and/or the City of Palm Desert ("City") are proposing to develop
a public parking lot on the Property ("Project"). Attachment 1 shows the location of the Project.
The City owns the property.
This RHP has been prepared by the Agency as a result of the planned removal of the 12 units
described above and in order to satisfy the requirements for replacement housing
contemplated under the Community Redevelopment Law. The Agency intends to make this RHP
available for review and comment for the prescribed period of 30 days.
This RHP describes the following, per Community Redevelopment Law ("CRL"):
• The general location of the replacement housing (see Section D below);
• An adequate means of financing the replacement housing (see Section E below);
• A finding that the replacement housing does not require the approval of the voters of the
City of Palm Desert pursuant to Article XXXIV of the California Constitution (see Section F
below);
• The number of replacement housing units planned for construction and rehabilitation (see
Section D below); and
• The timetable for meeting the replacement housing objectives (see Section G below).
The Agency's goal in preparing this RHP is to demonstrate that it is feasible to provide
replacement housing in accordance with the requirements of federal law and the CRL.
Section 33413(a) of the Community Redevelopment Law (Health and Safety Code Section 33000, et seg.
requires that whenever dwelling units housing persons and families of lower or moderate income are
destroyed or removed from the lower and moderate income housing market as part of a
redevelopment project, which is subject to a written agreement with a redevelopment agency
or where financial assistance has been provided, the agency shall within four years of the
destruction or removal, rehabilitate, develop, construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families of lower or moderate income,
an equal number of replacement dwelling units that have an equal or greater number of bedrooms
as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the
agency. When dwelling units are removed after January 1, 2002, 100% of the replacement dwelling
units shall be available at affordable housing cost to persons in the same or a lower income category,
as the persons displaced from those destroyed or removed units.
Section 33413.5 of the Community Redevelopment Law requires an agency to adopt a
replacement housing plan whenever the agency executes an agreement for acquisition of real
property, or an agreement for the disposition and development of property or an owner
participation agreement which would lead to the destruction or removal of dwelling units from the
Adobe Villas Apartments City of Palm Desert
Replacement Housing Plan July 2011
lower and moderate income housing market. The replacement housing plan shall identify the
impacts that a particular redevelopment project will have on the community's supply of lower and
moderate income housing and detail the measures that the agency will take to ensure that the
appropriate replacement housing is produced within the four year time limit.
Replacement Units must have an equal or greater number of bedrooms as the removed units. The
replacement units must be within the agency's jurisdiction and in standard condition, and must be
affordable to lower 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.
B. UNITS TO BE REPLACED
At the time the City and Agency approved the Project, seven of the twelve units to be removed
were occupied. The Agency expects that these units will be vacated by July 30, 2011. Five of
the seven occupied dwelling units have been determined to be units occupied by lower to
moderate -income households. Pursuant to the Community Redevelopment Law, these five units
shall be replaced with dwelling units having an equal or greater number of bedrooms. The units to
be replaced consist of 2 one -bedroom units and 3 two -bedroom units. As a result, the
replacement units must consist of at least eight bedrooms. Based on the income levels of the persons
displaced from the units, four of the replacement units must be available at affordable housing cost
to lower income households and one of the replacement units must be available at affordable
housing cost to a moderate income household.
The units are anticipated to be removed in the year 2011. Therefore, all replacement units must
be available by 2015, within 4 years after removal of the units.
Table t defines the replacement housing obligation by income level. The numbers under each
household income category indicate the total units to be replaced and the numbers in parenthesis
indicate the total number of bedrooms destroyed for each income level.
TABLE 1
REPLACEMENT HOUSING REQUIREMENTS BY BEDROOM SIZE & INCOME LEVEL
Unit Size Very -Low Income Low Income Moderate Income
One Bedroom 1 1 0
Two Bedroom 1 1 1
(2) (2) (2)
Adobe Villas Apartments
Replacement Housing Plan
Totals
2
(2)
3
(6)
City of Palm Desert
July 2011
C. 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 INCOME LEVEL
Income Category 1 2 3 4 5 6 7 8
Person Person Person Person Person Person Person Person
Extremely Low 13,650 15,000 17,550 19,500 21,100 22,650 24,200 25,750
(30% of Median)
Very Low
(50% of median)
22,750
26,000
29,250
32,500
35,100
37,700
40,300
42,900
Lower
36,400
41,600
46,800
52,000
56,200
75,400
64,500
68,650
(80% of median)
Median
45,500
52,000
58,500
65,000
70,200
75,400
80,600
85,800
000% of median)
Moderate
102,95
(120% of median)
54,600
62,400
70,200
78,000
84,250
90,500
96,700
0
Area Median Income: $65,000
SOURCE: HCD, June 2010.
D. LOCATION OF REPLACEMENT HOUSING
The Agency has several options available to provide replacement housing, including units subject
to a restrictive covenant, acquisition, rehabilitation, new construction, and the allocation of
"banked" dwelling units from prior development activity. The Agency has previously funded,
restricted or caused to be developed, affordable housing projects that provide surplus dwelling units
and bedrooms that can be allocated by the Agency for future housing obligations. The Agency
has a number of "banked" dwelling units/bedrooms to satisfy the replacement housing
obligation. Such units together with the approved units that have not yet been constructed,
(identified in Table 3 and Addendum 1) constitute a sufficient number of replacement units.
As described in Table 3, the following affordable housing units/bedrooms have been developed, or
are planned to be developed, within the Agency's jurisdiction. All such units are/will be available at
an affordable housing cost to lower or moderate income households and subject to a restrictive
covenant ensuring such affordability for not less than 55 years for rental units and 45 years for
owner occupied units. Addendum 1, at the end of the RHP, outlines the locations or proposed
locations of these affordable units.
Adobe Villas Apartments City of Palm Desert
Replacement Housing Plan July 2011
3
Table 3
Affordable Housing Projects/Banked Units & Bedrooms
Very Low Moderate
Unit Size Income Low Income Income
Net Banked (Existing) Units / No. of Bedrooms 2/3 2/3 8/16
Projects Units/Bedrooms to be provided
0/0 31/52 31/50
(Approved but not yet constructed)
Required Replacement Units / No. of Bedrooms 2/3 2/3 1/2
E. FINANCING THE REPLACEMENT HOUSING
The Agency is authorized to finance its activities with moneys from various sources, including the
City of Palm Desert, State of California, United States Government, property tax increment funds,
interest income; Agency bonds, or other available sources.
The existing units to be used for replacement units, have been acquired, constructed or
rehabilitated with various funding sources including tax increment funds; below market rate
financing through the sale of tax exempt mortgage revenue bonds; redevelopment twenty percent
set -aside funds; and developer funds. Funding for the development of affordable housing units
identified in the preceding section as "approved but not yet constructed" may utilize a variety of
sources including: State or Federal grants and loans, tax increment funds; below market rate
financing through the sale of tax exempt mortgage revenue bonds; redevelopment twenty percent
set -aside funds; and developer funds. Specific funding for future replacement housing units may be
through the use of any combination of the above described methods and sources. As replacement
units, the Agency may count units developed by private developers pursuant to the City's Density
Bonus program provided that units are subject to a restrictive affordable housing covenant
enforceable by the Agency.
F. NON -APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION
It is hereby found and determined that the replacement housing identified in this RHP does not
require approval of the voters of the City of Palm Desert pursuant to Article XXXIV of the
California Constitution. A portion of the housing identified in this RHP is not subject to the voter
approval requirements of Article XXXIV because such housing is or will be privately owned, not exempt
from real property taxes by reason of public ownership, and not financed with direct long term
financing from a public body. In addition, the Agency will not "develop, construct, or acquire"
housing as described in Section t of Article XXXIV of the California Constitution because in providing
assistance to developers, the Agency will only monitor construction or rehabilitation of the
project and compliance with conditions of the assistance to the extent of carrying out routine
governmental functions, performing conventional activities of a lender, and imposing
constitutionally mandated or statutorily authorized conditions.
Adobe Villas Apartments City of Palm Desert
Replacement Housing Plan July 2011
G. 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
requirements of affordable housing discussed in this RHP. It is the intent of the Agency to use
"banked" previously developed housing units and if necessary 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 lower 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.
H. SUMMARY
In summary, a total of 18 bedrooms and 12 dwelling units will be removed; eight bedrooms in
five units occupied by lower and moderate income households will be replaced.
Based on the 100% replacement criteria by income level, the Agency through a variety of
replacement housing options will replace the eight bedrooms affordable to lower to moderate
income households by using previously developed housing units as well as units that have been
approved but not yet constructed. The result of the above actions will yield the required number
of replacement dwelling units as mandated under Community Redevelopment Law.
The Agency recognizes its legal and community responsibilities in this matter and will make a sincere,
good -faith effort to accomplish these goals. The Agency retains its option to use other approaches and
strategies not discussed herein to fulfill its replacement housing obligations in a timely manner.
Adobe Villas Apartments City of Palm Desert
Replacement Housing Plan July 2011
ADDENDUM 1 - EXPECTED LOCATION OF INCOME -RESTRICTED REPLACEMENT UNITS
The following are the proposed and expected locations of income -restricted units which will be
used to meet the Agency's replacement obligation of five units with not less than eight bedrooms.
Bedrooms & Income: Replacement Scheduled
Locate Completion:
Very Low Income: Las Serenas Completed
73-315 Country Club Drive
Palm Village Completed
73-650 Santa Rosa Way
Low Income: Las Serenas Completed
73-315 Country Club Drive
Palm Village Completed
73-650 Santa Rosa Way
Canterra Apartments II To be completed
74-401 Hovley Lane
Moderate Income: Sares Regis
35-751 Gateway Drive Completed
Palm Desert 103 To be completed
(Formerly Emerald Brook/WNRA)
It is the adopted policy of the Agency to promote the assimilation of affordable housing
throughout the City to the maximum extent possible in order to avoid concentrations of lower -
income housing in certain neighborhoods.
Adobe Villas Apartments
Replacement Housing Plan
City of Palm Desert
July 2011
t: