HomeMy WebLinkAboutRplcmnt Housing Pln - Adobe Villas 45330 Ocotillo DrSUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY / PALM DESERT HOUSING AUTHORITY
JOINT CONSIDERATION
STAFF REPORT
REQUEST:
SUBMITTED BY
DATE:
ADOPT SARDA RESOLUTION NO. 034 AND
NO. 63 APPROVING THE REPLACEMENT
ADOBE VILLAS APARTMENTS
PDHA RESOLUTION
HOUSING PLAN FOR
Jessica Gonzales, Management Analyst - Housing
May 22, 2014
CONTENTS: SARDA Resolution No. 034
PDHA Resolution No. 63
Adobe Villas Apartments Replacement Housing Plan
Recommendation
By Minute Motion, That the Successor Agency to the Palm Desert
Redevelopment Agency ("SARDA") and the Palm Desert Housing Authority
("PDHA") Boards waive further reading and adopt SARDA Resolution No. 034
and PDHA Resolution No. ��, which resolutions approve the Replacement
Housing Plan for the Adobe Villas Apartments, substantially in the form attached
to the resolutions.
Executive Summary
The former Palm Desert Redevelopment Agency ("Agency") was required by law to adopt a
Replacement Housing Plan ("RHP") whenever the Agency took action that would lead to the
destruction or removal of dwelling units from the low and moderate income housing market.
As part of the proposed development of a public parking lot on the Adobe Villas Apartments
property ("Project"), the former Agency proposed the removal of 12 apartment units, of which 5
units were available to low and moderate income households. Pursuant to applicable provisions
of the Community Redevelopment Law, such removal required that the former Agency "replace"
those units within four years. A meeting of the Agency was scheduled and noticed for July 14,
2011, at which the RHP (which identifies the designated replacement units that were and/or
would be available to replace the 5 units within the required time period) would have been
considered.
On July 14, 2011, the former Agency Board continued the consideration of the adoption of the
RHP to an unspecified date due to pending enactment of AB X1 26, which prohibited the former
Agency from adopting a redevelopment housing plan. With the passage of AB X1 26,
redevelopment agencies were dissolved on February 1, 2012 and the Project was placed on
hold.
In anticipation of the Successor Agency to the Palm Desert Redevelopment Agency ("SARDA")
Long-Range Property Management Plan ("PMP") being approved by the Department of Finance
Staff Report
Adobe Villas SARDA Resolution No. 034 and PDHA Resolution No.��
May 22, 2014
Page 2 of 3
-("DOF"), the SARDA and Palm Desert Housing Authority ("Housing Authority") as successors to
the former Agency are jointly herein considering the adoption of the RHP that was previously
noticed by the former Agency on June 9, 2011 as required pursuant to Health and Safety Code
Sections 33413 and 33413.5.
The subject property is designated for governmental use in the PMP and the previously
contemplated Project is scheduled to proceed upon approval of the PMP.
Backqround
In April 14, 2011, the Palm Desert City Council and former Agency Board 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 former Agency provided relocation assistance and
benefits to these tenants. The former Agency proposed the removal of the existing 12
apartment units that make up the Adobe Villas Apartments.
Pursuant to Health and Safety Code Sections 33413 and 33413.5, the former Agency was
required to adopt a Replacement Housing Plan ("RHP") whenever the former Agency took
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 or destroyed housing will be
replaced. The law further required the former Agency to replace the removed or destroyed
housing units within four years.
The former Agency 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 low and moderate income
households at the time the former Agency approved the redevelopment of the property to
construct the Project. Accordingly, the former Agency must replace these 5 units within the
four-year time limit. The tenants occupying these 5 units vacated the units by July 30, 2011 and
since then, the property has remained vacant.
On July 14, 2011, the former Agency Board continued Resolution No. 587 that considered the
adoption of the Replacement Housing Plan ("RHP") to a date uncertain due to pending passage
of AB X1 26. With the Governor's enactment of ABX1 26, redevelopment agencies were
dissolved on February 1, 2012 and the Project was placed on hold.
In anticipation that the SARDA Long-Range Property Management Plan ("PMP") will be
approved by the Department of Finance ("DOF"), the SARDA and Housing Authority as
successors to the former Agency are jointly herein considering the adoption of the RHP that was
previously noticed by the former Agency and the City of Palm Desert on June 9, 2011 as
required pursuant to Health and Safety Code Sections 33413 and 33413.5.
The RHP previously prepared by the former Agency and herein being considered, 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
Staff Report
Adobe Villas SARDA Resolution No
May 22, 2014
Page 3 of 3
034 and PDHA Resolution No. 63
meeting the RHP's relocation, rehabilitation, and replacement housing objectives.
The RHP has been available for review by the public since June 9, 2011.
Staff therefore recommends that the SARDA and Housing Authority Board approve the RHP,
substantially in the form as presented to comply with the requirements of Health and Safety
Code Sections 33413 and 33413.5.
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 Replacement Housing Plan and the relocation
assistance benefits to the tenants.
Submitted by:
Department Head:
� -
en�lyst anet . Moore, Director of Housing
��
Paul
� Y �
irector of Finance Y��� �3Y SA RDA ��
ON � 5 ` ,�� • �(1/
.� ������n s� �
�/%, r--�! Orz�z�aal �� fil� vv�� C;n�,� �`:Ie '� �3��cc�
n M. Wohlmuth, City Manager/Executive Director
�
�' BY HQUSG AUTH � "U
oN � - d ' �Oi
w ��
VERIFt�C) Bl�. ���--
C7riginal c�n fil� with City G k's Offic�
(AYES: Benson, Harnik, Spiegel, Weber,
and Tanner; NOES: None)
G:\HOUSING\Patty Leon\JMM\staff reportWdobe Villas Apartments - Staff Report 5-15-14.doc
RESOLUTION NO. SA-RDA 034
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY APPROVING THE
REPLACEMENT HOUSING PLAN FOR ADOBE VILLAS
APARTMENTS
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE PALM
QESERT REDEVELOPMENT AGENCY HEREBY �INDS, DETERMINES,
RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The former Palm Desert Redevelopment Agency ("Agency")
proposed 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 2. The former Agency was required to adopt a Replacement
Housing Plan ("RHP") that details the measures the Agency would take to
replace, within four years, the 5 units to be removed from the Iow and moderate
income housing market.
Section 3. As part of the Project the former Agency proposed to remove
the 12 multi-family apartment units at the Property of which 5 were available to
lower and moderate income households.
Section 4. On June 9, 2011, the former Agency provided public notice
of its consideration of the adoption of the RHP pertaining to the Project as
required by Health and Safety Code Sections 33413 and 33413.5. The RHP
provided the measures the former Agency would take to replace the 5 housing
units to be removed from low and moderate income housing market in
connection with the Project.
Section 5. On July 14, 2011, at its regularly scheduled meeting of the
Agency Board, consideration of the RHP was continued to an unspecified date
due to pending enactment of AB X1 26.
Section 6. With the Governor's enactment of AB X1 26, redevelopment
agencies were prohibited from adopting redevelopment housing plans. On
February 1, 2012, the former Agency was dissolved.
Section 7. On February 9, 2012, the City adopted Resolution SA-RDA
No. 2012-001 declaring the Successor Agency to the Palm Desert
Redevelopment Agency ("SARDA") as the successor entity to the former Agency
to perform the obligations under the dissolution legislation and wind down the
affairs of the Agency.
RESOLUTION NO. SA-RDA 034
Section 8. As part of the dissolution, the SARDA is required to prepare a
long-range Property Management Plan ("PMP") which outlines the disposition
strategies for all properties owned by the former Agency. The PMP identified this
property to be retained for government use. Upon approval of the PMP by the
State Department of Finance, the Project will move forward as contemplated by
the former Agency.
Section 9. The SARDA, now hereby adopts the RHP substantially in
the farrn a�tached hereto and incorparat�d herein by this reference pursuant to
Health and Safety Code Section 33413 and 33413.5. The RHP details the
measures the Palm Desert Housing Authority ("Housing Authority") will take to
replace the housing units removed from low and moderate income housing
market in connection with the Project.
PASSED, APPROVED AND ADOPTED by the Successor Agency to the
Palm Desert Redevelopment Agency, this day of 2014 by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Van G. Tanner, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
G:IHOUSING1Patty Leon1JMMlstaff reportlSARDA\RESOLUTIONS1Reso Replacement Housing Plan - Adobe Villas 520-11 Revised 5-9-14 for SARDA.doc
RESOLUTION NO. HA-63
A RESOLUTION OF THE PALM DESERT HOUSING
AUTHORITY APPROVING THE REPLACEMENT HOUSING
PLAN FOR ADOBE VILLAS APARTMENTS
THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The former Palm Desert Redevelopment Agency ("Agency")
proposed 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 2. As part of the Project the former Agency proposed to remove
the 12 multi-family apartment units at the Property of which 5 were available to
low and moderate income households.
Section 3. The former Agency was required to adopt a Replacement
Housing Plan ("RHP") that details the measures the Agency would take to
replace, within four years, the 5 units to be removed from the low and moderate
income housing market.
Section 4. On June 9, 2011, the former Agency provided public notice of
its consideration of the adoption of the RHP pertaining to the Project as required
by Health and Safety Code Sections 33413 and 33413.5. The RHP provided the
measures the former Agency would take to replace the 5 housing units to be
removed from the low and moderate income housing market in connection with
the Project.
Section 5. On July 14, 2011, at its regularly scheduled meeting of the
Agency Board, consideration of the RHP was continued to an unspecified date
due to pending enactment of AB X1 26.
Section 6. With the enactment of AB X1 26, redevelopment agencies
were prohibited from adopting redevelopment housing plans. On February 1,
2012, the former Agency was dissolved.
Section 7. On February 9, 2012, the City Council adopted Resolution No.
2012-07 designating the Palm Desert Housing Authority ("Housing Authority") as
the successor in interest by operation of law to all housing activities and assets of
the former Agency. On October 11, 2012, the Housing Authority Board adopted
Resolution No. HA-47 accepting the housing functions and housing assets of the
former Agency.
RESOLUTION NO. HA-63
Section 8. The Housing Authority hereby adopts the RHP substantially in
the form attached hereto and incorporated herein by this reference pursuant to
Health and Safety Code Sections 33413 and 33413.5. The RHP details the
measures the Housing Authority will take to replace the housing units removed
from the low and moderate income housing market in connection with the
Project.
Section 9. The Executive Director of the Housing Authority 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 Housing
Authority, this day of 2014 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, Secretary
Van G. Tanner, Chairman
G:\HOUSING1Patty Leon\JMM\staff repoR\RESOLUTIONSVIdobe Villas apartments - Resolution.doc
12812-0001 \1712216v3.doc
NOTICE OF PROPOSED ADOPTION OF REPLACEMENT HOUSING PLAN AND
AVAILABILITY OF REVIEW
IVQTtCE IS HEREBY GtVEN that the Successor Ager�cy to the Palm Desert Redevelopment
Agency {"SARDA") as successor to the former Palm Desert Redevelopment Agency ("PDRDA") and the
Palm Desen Flousing Authority ("Authority") as housing successor to the former PDRDA wiil jointly
consider the adoption of a Replacement Hausing Plan ("RHP") for the proposed demolitian of a twelve
muiti-far`nily unit prr�perty and r�development of the property currently known as the AdpbB Villas
Apartments (the "Property"j located at 45-330 Ocotillo Drive in Palm Desert, Cal'rfornia and identified as APN
627-232-005 at its meeting of May 22, 2014.
The time, date and place of the meeting is as follows:
TIME: 4:00 p.m.
DATE: May 22, 2014
PLACE: Palm Desert City Hall Chambers
73-510 Fred Waring Drive
Palm Desert, California 92260
At this meeting, the SARDA and Authority as successors will jointly consider the adoption of the RHP that
was previously noticed by the PDRDA and the City of Palm Desert on June 9, 2d11 as required pursuant
to Health and Safety Code Sections 33413 and 33413.5, in connection with the redevelopment and
removal of the Adobe Villas Apartments located at 45-300 Ocotillo Drive, Palm Desert and identified as
APN 627-232-005. Any of the units that are required to be replaced must be replaced within the four-year
time limit pursuant to California Ffealth and Safety Code Section 33413. The RNP includes (1) the
general focation of housing to be rehabilitated, developed, or constructed; (2j 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 Caiifornia 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 RHP's
relocation, rehabilitation, and replacement housing objectives.
A copy of the above-referenced RHP is available for publ+c 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 RHP may appear at the
May 22, 2014 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 SARDA and/or Authority meeting or other services offered by the City of Palm Desert,
please contact the City Cterk'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 12th day of Mav, 2014
t
Ra e D. Klassen, Secretar o the Successor
Agency to the Palm Desert Redevelopment
Agency and Patm Dese�t Housing Authority
1234545v1 G�CflyClrr\GIor4 Sancnex\l[GAL NOTiC[S�Notice -11vw o� I1
plunnl XeuMn{ iIn - AApEe Vllla�. 0511M1� Eo<
F I NAL Replacement
Housing Plan
for the Property Loc�ted
45-330 Ocoti I lo D rive i n
Cit of Palm Des�rt
v
at
the
Prepared by:
City of Palm Desert Redevelopment Agency
73510 Fred Waring Drive
PALM DESERT, CA 92260-2524
Ju�Y 2011
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 .....................................b
LIST OF TABLES
Table 1: Replacement Housing Requirements by Bedroom Size 8� Income Level ...........................2
Table 2: Housing Eligibility by Annuai Income �eve1 ...............................................................................3
Table 3: Affordable Housing Projects/Banked Units & Bedrooms ........................................................4
Adobe Villas Apartments
Replacemenf Housing Plan
City of Palm Desert
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 b27-232-005. The Agency pnd/or the City of Paim Desert ("�ity") are proposing to develop
a public parking lot on the Property ("Project"). Attachment 1 shows the location of the Project.
The City owns the properfy.
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 repiacement 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 repiacement 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 Arficle XXXIV of the California Constitution (see Section F
belowJ;
• The number of repiacement 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 hausing in accordance with fhe requirements of federal law and the CRL.
Section 33413(a) of the CommunityRedevelopment Law (Health and Safety Code Section 33000, et se .
requires that whenever dwelling units housing persons and families of lower or moderate income are
destroyeci or removed from the lower and moderate income ho�sing 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, #or rental or sale to persons and families of lower or moderate income,
an equal number of repiacement dweliing units that have an equal or greater number of bedrooms
as those destroyed or removed units at affordabie housing costs within the territorial jurisdiction of the
agency. When dweliing 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
repiacement 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 Apartmenfs Cify of Palm Desert
Replacement Housing Plan Ju/y 2011
lower and moderate income housing market. The replacement housing plan shall identify the
impacts that a parficular 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
replace�nent units must be wi#hin the agency's jurisdiction �nd in sl�ndard 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 pnd 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, tour of the replacement units must be available at affordable housing cost
to lower income househoids and one of the replacement units must be available at affordabie
housing cost to a moderate income household.
The units are anticipated to be removed in the year 201 1. Therefore, all replacement units must
be available by 2015, within 4 years after removai of the units.
Table 1 defines the replacement housing obligation by income level. The numbers under each
household income category indicate the totai units to be replaced and the numbers in parenthesis
indicate the total number of bedrooms destroyed for each income level.
T�B�E 1
REPLACEMENT HOWSING REQUIREMENTS BY BEDROOM SIZE & INCOME LEVEL
Unit Size Very-Low Income Low Income Moderate Income Totals
One Bedroom �� � �� � 0 �2�
Two Bedroom 1 1 1 3
�2) c2) c2) i6)
Adobe Villas Apartmenfs City of Palm Desert
Replacemenf Housing Plan July 2011
C. ANNUAL (NCOME RESTRICTIONS
California Heaith 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
foliowing figures, shown in Tcble 2, are opproved for use in the Gounty of Riverside to d�fine and
determine housing eligibility by income level:
TABLE 2
HOUSING ELIGIBILITY BY ANNUAL INCOME LEYEL
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 22,750 26,000 29,250 32,500 35,100 37,700 40,300 42,900
(50% of inedian)
Lower
36,400 41,600' 46,800 52,000 56,200 75,400 64,500 68,650
(80% of inedian)
Median
(100% of inedian)
45,500 52,000 58,500 65,OQQ 70,200 75,400 80,600 85,800
Moderate 102,95
54,600 62,400 70,200 78,000 84,250 90,500 96,700
(120% of inedian) 0
Area Median lncome: $65,000
SOURCE: HCD, June 2010.
D. LOCATION OF REPLACEMENT HOUSING
The Agency has severai options avpilal�le to provide replacement housing, inciuding 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 tagether 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 ViNas Aparfinents City of Palm Desert
Replacement Housing Plan July 2011
Table 3
Affordable Housing Projects/Banked Units 8� Bedrooms
Very Low Moderate
Unit Size Income Low Income Income
Net Banked (Existing) Units / No. of Bedrooms 2i3 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 fram various sources, including the
City of Palm Deserf, State of California, United States Government, properfy tax increment funds,
interest income; Agency bonds, or other available sources.
The existing units to be used for replacement units, hpve been acquired, constructed or
rehabilitated with various funding sources inciuding tax inerement funds; below market rate
financing through the sale of tax exempt morfgage 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 repiacement housing units may be
through the use of any combination of #he 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 #ound and determined that the replacement housing identitied 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 porfion of the housing identified in this RHP is not subject to the voter
approval requirements of Article XXXIV because such housing is or wili be privately owned, not exempt
from real properfy taxes by reason of public ownership, and not financed with direct long term
financing from a public body. In addition, the Agency will not "develop, construct, or acquire"
housing as described in Section 1 of Arficie XXXIV of the California Constitution because in providing
assistance to developers, the Agency witl only monitor construction or rehabilitation of the
project and compliance with conditions of the assistance to the extent of carrying out routine
governmentai functions, performing conventional activities of a lender, and imposing
constitutionally mandated or statutorily authorized conditions.
Adobe Vi!!as Apartments Cify of Palm Deserf
Rep/acement 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 repiacement housing units sufficient to address the replacement
requirements of affordabie housing discussed in this RHP. It is the intent of the Agency to use
"banked" previousiy developed housing units and if necessary housing units that have been
approved but not yet constructed to fuifill its replacement housing requirement.
The Agency acknowledges that replacement housing units must be a#fordable in the same, or
lower income categories than those being removed from the lower and moderate income
housing market and will ensure that this resuit is realized.
Further, any units developed as replacement housing units will be complefied 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 Cammunity Redevelopment Law.
The Agency recognizes its legal and community responsibilities in this matter and will make a sincere,
good-faith effort to aceomplish these goals. The Agency retains its option to use other approaches and
strategies not discussed herein to fulfilt its replacement housing obligations in a timely manner.
Adobe Vi(las Apartments
Replacement Housing Plan
City of Palm Desert
Ju/y 2011
N7
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.
Bec�ooms & Income: Replacement
locc�'iar
Very Low Income
Low Income:
Las Serenas
73-315 Country Ciub Drive
Paim Village
73-650 Santa Rosa Way
Las Serenas
73-315 Country Club Drive
Palm Village
73-650 Santa Rosa Way
Canterra Apartmentsdl
74-401 Hovley Lane
Scheduled
Completion:
Completed
Completed
Completed
Cornpleted
To be completed
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
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