HomeMy WebLinkAbout1995-01-17; Housing & Redevelopment Commission; 265; Village Housing Replacement Planbo HOUSING AND R-)EVELOPMENT COMMISSI(- - AGENDA BILL 1
AB# 265 v
TITLE: VILLAGE HOUSING REPLACEMENT DEPT. HD.b
MT& ;I-/ ?- .%- PLAN CITY ATTY
DEPT. RED. E CITY MGR.
RECOMMENDED ACTION:
That the Housing and Redevelopment Commission adopt Resolution No. 7& 2
APPROVING the Village Housing Replacement Plan for the Redevelopment Project
Area as required by AB1290.
ITEM EXPLANATION:
The California Community Redevelopment Law, Health and Safety Code Sections 33000
et seq. states that one of the fundamental purposes of redevelopment is to increase and
improve the commumty’s supply of low and moderate income housing. This is
accomplished in part through three different but interrelated requirements imposed on the
Agency by California Law. These three requirements provide for the production,
improvement and preservation of housing for low and moderate income persons. These
requirements are:
0 Twenty (20) percent of tax increment revenue must be expended to increase,
improve and preserve the supply of low and moderate income housing within the
community (Health and Safety Code Section 33334.2);
0 The Agency must replace low and moderate income housing which is removed
as a result of a redevelopment project which is known as “the replacement rule”
(Health and Safety Code Section 33413[a]); and,
0 A fixed percentage of all housing constructed in a Redevelopment Project Area
must be affordable to low and moderate income persons and families which is
known as “the inclusionary rule” (Health and Safety Code Section 33413[b]).
Health and Safety Code Section 33413(b)(4) requires that each redevelopment agency
adopt a plan to comply with the requirements of the inclusionary rule. This compliance
plan is outlined within the Village Redevelopment Implementation Plan required by
AB1290 and to be approved under separate action of the Housing and Redevelopment
Agency.
Health and Safety Code Sections- 33413.5 and 33334.5 require replacement housing plans
for compliance with the replacement rule noted above. The Housing Replacement Plan
provided as Exhibit 2 to this agenda bill outlines how the Carlsbad Redevelopment
Agency intends to comply with the replacement rule for projects within the Village
Redevelopment Project Area which were implemented prior to July 1, 1994.
AB# 2&i
Page 2
PLAN REQUIREMENTS
Per Health and Safety Code Section 33413.5, the Carlsbad Redevelopment Agency is
required to adopt a resolution; following a public hearing, approving a replacement
housing plan which indicates how the agency will comply with the requirements of the
replacement rule. The Replacement Plan must include:
0 Location of replacement housing; 0 Means of financing replacement housing; 0 Compliance with Article 34;
l Number of affordable units planned for construction; and, a Timetable for meeting replacement housing objectives.
HOUSING REPLACEMENT REQUIREMENTS FOR THE VILLAGE
Due to direct Agency involvement in construction of a public parking lot on the corner
of Roosevelt Street and Carlsbad Village Drive, two (2) single family homes were
demolished. There is no documentation on file which indicates the units were affordable
to very low, low or moderate income households prior to demolition (June, 1990). Also,
these housing units were in a very deteriorated condition and were not occupied prior to
City purchase of property for the construction of the public parking lot. However, since
the Redevelopment Agency has no documentation to indicate that the units could not be
rehabilitated and returned to the low and moderate income housing stock. The Agency
has decided that it should accept the responsiblity to replace these two (2) units under the
redevelopment law “replacement rule”.
The two (2) demolished units will be replaced within the La Terraza Affordable Housing
Project to be located at 9156 El Camino Real. Although this project is located outside
the Village Redevelopment Area, the project will provide 344 apartment units with
restricted rents affordable to low and very low income families. The Housing and
Redevelopment Commission has previously made the appropriate findings to indicate that
the subject affordable housing project benefits the Village Redevelopment Area. The
Redevelopment Agency and City of Carlsbad have contributed over $4 million to ensure
construction of this project. The project will be complete by early 1996.
The. Agency/City does not intend to participate in any other projects over the next five
(5) years which will result in the removal of housing units from the supply currently
available within the Village Redevelopment Area. However, if the Agency/City does
decide to become directly. involved with a housing project within the redevelopment
project area which does, in fact, result in the removal of housing units affordable to low
and/or moderate income households, the Agency will amend this plan and meet the
replacement requirement as outlined.
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AB# 26
Page 3
ENVIRONMENTAL REVIEW
The adoption of an implementation plan is not a “project” requiring review under the
California Environmental Quality Act (“CEQA”). Subsequent action on specific projects
will be subject to CEQA if not already covered by a recent EIR for the redevelopment
plan or a program EIR adopted in connection with a particular project or program.
FISCAL IMPACT
No fiscal impact created by adoption of this plan. The funding for the La Terraza
Apartment Project has been approved by previous action of the City Council and the
Housing and Redevelopment Commission.
EXHIBITS:
l- Housing and Redevelopment Commission Resolution No. 2 6 2
2- Village Housing Replacement Plan.
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HOUSING & REDEVELOPMENT COMMISSION RESOLUTION NO. 262
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA
ADOPTING THE HOUSING REPLACEMENT PLAN FOR
PREVIOUS PROJECTS WITHIN THE VILLAGE REDEVELOPMENT
PROJECT AREA.
WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to
as “Agency”, is a Community Redevelopment Agency organized and existing under the Community
Redevelopment Law, Health and Safetv Code Section 33000, et.seq., hereinafter referred to as the “Act”;
and
WHEREAS, the Agency is authorized to implement the Redevelopment Plan for the
Carlsbad Village Redevelopment Project Area; and
WHEREAS, Sections 33413.5 and 33334.5 of the Act require that the Carlsbad
Redevelopment Agency adopt a Housing Replacement Plan for redevelopment activities which result in
the loss of low and moderate income housing; and
WHEREAS, the Housing Replacement Plan shall be adopted following a public hearing
conducted pursuant to section 6063 of the Government Code and after proper notice.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and
Redevelopment Commission of the City of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. That pursuant to California Health and Safety Code Sections 33413.5 and 33334.5 the
Carlsbad Revelopment Agency hereby adopts the “Village Redevelopment Project Area
Housing Replacement Plan”, for redevelopment activities implement prior to July 1,
1994.
3. That the Housing and Redevelopment Commission authorizes the Executive Director of
the Carlsbad Redevelopment Agency and designated staff to administer the adopted
Housing Replacement Plan.
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HRC Resolution No. 262
Page 2
4. That no review of the subject implementation plan is required under the California
Environmental Quality Act (CEQA) because the plan is not an approval of a
specific project under CEQA. All future specific projects will be subject to CEQA
review.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Housing and Redevelopment Commission of the City of Carlsbad, California, held on the
17th day of January, 1995, by the following vote, to wit:
AYES: Commissioners Lewis, Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
ABSTAIN: None
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- EXHIBIT 2
VILLAGE REDEVELOPMENT PROJECT AREA
HOUSING REPLACEMENT PLAN
December 12, 1994
Prepared by
Housing and Redevelopment Department
City of Carlsbad
VILLAGE REDEVELOPMENT PROJECT AREA
Housiw Redacement Plan
The California Comrntmity Redevelopment Law, Health and Safety Code Sections 33000 et
seq. states that one of the fundamental purposes of redevelopment is to increase and improve
the community’s supply of low and moderate income housing. This is accomplished in part
through three different but interrelated requirements imposed on the Agency by California
Law. These three requirements provide for the production, improvement and preservation of
housing for low and moderate income persons. These requirements are:
0 Twenty (20) percent of tax increment revenue must be expended to increase, improve
and preserve the supply of low and moderate income housing within the community
(Health and Safety Code Section 33334.2);
0 The Agency must replace low and moderate income housing which is removed as a
result of a redevelopment project which is known as “the replacement rule” (Health
and Safety Code Section 33413[a]); and,
0 A fixed percentage of all housing constructed in a Redevelopment Project Area must
be affordable to low and moderate income persons and families which is known as
“the inclusionary rule” (Health and Safety Code Section 33413[b]).
Health and Safety Code Section 33413(b)(4) requires that each redevelopment agency adopt a
plan to comply with the requirements of the inclusionary rule. This compliance plan is
outlined within the Village Redevelopment Implementation Plan required by AB1290.
Health and Safety Code Sections 33413.5 and 33334.5 require replacement housing plans for
compliance with the replacement rule noted above. This separate Plan outlines how the
Carlsbad Redevelopment Agency intends to comply with the replacement rule for projects
within the Village Redevelopment Project Area which were implemented prior to July 1,
1994.
THE REPLACEMENT RULE
Health and Safety Code Section 33413(a) requires that whenever dwelling units which house
persons and families of low or moderate income are destroyed or removed from the low and
moderate income housing market as part of a redevelopment project subject to a written
agreement with the agency, the Redevelopment Agency is required to ensure that an equal
number of replacement dwelling units are developed within four (4) years of the removal of
the dwelling units.
VILLAGE HOUSING REPLACEMENT PLAN
For affordable units removed prior to September 1, 1989, replacement units must be
available at an affordable housing cost to persons and families of low and moderate income,
without regard to the specific income of the person or family originally occupying the
removed dwelling unit. However, for units removed after September 1, 1989, California Law
requires that seventy-five (75) percent of the replacement units be affordable to the same
income groups that occupied the units that were removed.
Health and Safety Code Section 33413(c) requires that replacement, as well as inclusionary,
units remain available at an affordable housing cost to the income levels indicated for the longest feasible time, which includes but is not limited to an unlimited duration. When
housing units are developed or assisted with money from the Agency’s twenty percent (20%)
affordable housing set-aside fund, the Redevelopment Agency is required by State Law to
ensure that those housing units remain affordable for the longest feasible time, but for not
less than fifteen (15) years for rental units or ten (10) years for owner-occupied units.
It is the policy of the Carlsbad Redevelopment Agency and the City of Carlsbad that Very
Low Income, Lower Income and Moderate Income units developed anywhere within the City
pursuant to the inclusionary or replacement housing rule shall remain affordable for the
longest feasible time but not less than thirty (30) years.
Per Health and Safety Code Section 33413.5, the Carlsbad Redevelopment Agency is
required to adopt a resolution approving a replacement housing plan which indicates how the
agency will comply with the requirements of the replacement rule. The Replacement Plan
must include:
0 Location of replacement housing; 0 Means of financing replacement housing; 0 Compliance with Article 34; 0 Number of affordable units planned for construction; and, 0 Timetable for meeting replacement housing objectives.
VILLAGE REDEVELOPMENT AREA HOUSING REPLACEMENT PLAN
Since adoption of the Village Redevelopment Plan in 1981, there have been only two (2)
housing units demolished as a result of direct action taken by the Carlsbad Redevelopment
Agency. The Agency will replace these units as required.
VILLAGE HOUSING REPLACEMENT PLAN
GENERAL LOCATION OF REPLACEMENT HOUSING
Replacement housing units related to implementation of the Village Redevelopment Project
Area Plan may be located city-wide unless those units are also be counted for purposes of
compliance with the inclusionary housing requirements. If replacement units are be counted
for compliance with the inclusionary housing requirements, the units will be newly
constructed or rehabilitated and located within the Village Redevelopment Project Area.
Otherwise, the replacment units may be located in affordable housing projects outside the
Village Redevelopment Project Area at a 2: 1 ratio (two replacement units for each 1 unit
removed from the project area).
Replacement units will be developed within in-fill housing projects within the Village
Redevelopment Project Area and/or as part of other affordable housing projects (or market
rate projects) both inside and outside the project area.
MEANS OF FINANCING REPLACEMENT UNITS
The Carlsbad Redevelopment Agency will use its twenty percent (20%) affordable housing
set-aside funds in working with private for-profit and non-profit housing developers to
produce and/or preserve affordable housing units both inside and outside the Village
Redevelopment Project Area.
The Agency also intends to use all other state, federal and local sources of funding to assist
in the effort to provide the replacement housing units. Funding sources include, but are not
limited to: 1) Federal Community Development Block Grant funds; 2) Inclusionary Housing
Impact Fees and In-Lieu Fees, if established by the City; 3) Mortgage Revenue Bonds and
Mortgage Credit Certificates; 4) federal or state HOME funds; 5) federal or state Tax Credit
financing; and/or 6) other state and/or federal programs for financing housing projects which
may become available to the Agency and/or City of Carlsbad.
To be successful in producing affordable housing units, the Carlsbad Redevelopment Agency
as well as the City of Carlsbad cannot rely on a single source of funding. Affordable housing
must be produced through the utilization of a number of different funding sources. The
Agency will leverage its set-aside funds with other sources of funding for the production of
affordable housing replacement units, as appropriate.
The form of the Agency’s assistance may include, but is not limited to, the following:
0 land acquisition; 0 site demolition, grading and preparation; 0 relocation; 0 on-site and off-site improvements;
VILLAGE HOUSING REPLACEMENT PLAN
0 deferred development fees; 0 mortgage buy-down and down payment assistance programs; 0 direct subsidies; 0 implementation or coordination of local, state or federal low income and first time
homebuyer programs; 0 loans, advances or other indebtedness; and, 0 bond programs and other leveraging opportunities.
COMPLIANCE WITH ARTICLE 34
Article 34 of the State Constitution was originally approved by the voters for the specific
purpose of providing a mechanism for community residents to express concern regarding the
development, acquisition, or construction of federally subsidized conventional public housing
projects. The projects typically looked different from market rate housing projects and were
occupied entirely by persons of low income. These type of projects were generally not seen
as desirable. However, since approval of Article 34, new forms of housing assistance have
provided housing for persons of low income in a manner which is consistent with and
supportive of optimum community improvement. Such forms of assistance have allowed for
mixed income occupancy in developments representative of and competitive with similar
market rate developments provided entirely by the private sector. Recognizing that these new
forms of housing assistance provide new approaches and opportunities for providing desirable
housing for persons of low income, the State Legislature has found and declared Health and
Safey Code Sections 37001, 37001.3 and 37001.5 are necessary to clarify ambiguities
relating to the scope of the applicability of Article 34.
To date, the Carlsbad Redevelopment Agency and City of Carlsbad have not developed, nor
intend to develop, any low income affordable housing which is subject to Article 34. All
housing units developed within the City of Carlsbad, as well as those contemplated for the
immediate future, are anticipated to be exempt from the requirement of Article 34.
Housing units which are specifically exempted from the requirements of Article 34 are
located in projects where:
1) The development is privately owned housing, receiving no ad valorem property tax
exemption, other than exemptions granted pursuant to subdivision (f) or (g) of Section
214 of the Revenue and Tax Code, not fully reimbursed to all taxing entities; and not
more than 49 percent of the dwellings, apartments or other living accommodations of
the development may be occupied by persons of low income.
2) The development is privately owned housing, is not exempt from ad valorem taxation
by reason of any public ownership, and is not financed with direct long-term financing from a public body.
VILLAGE REPLACEMENT HOUSING PLAN
3)
4)
5)
6)
7)
The development is intended for owner-occupancy, which may include a limited
equity housing cooperative as defined in Section 50076.5 of the Health and Safety
Code, or cooperative or condominium ownership, rather than for rental-occupancy.
The development consists of newly constructed, privately owned, one to four family
dwellings not located on adjoining sites.
The development consists of existing dwelling units leased by the state public body
from the private owner of these dwelling units.
The development consists of the rehabilitation, reconstruction, improvement or
addition to, or replacement of, dwelling units of a previously existing low rent
housing project, or a project previously or currently occupied by lower income
households, as defined in Section 50079.5 of the Health and Safety Code.
The development consists of the acquisition, rehabilitation, reconstruction,
improvement, or any combination thereof, of a rental housing development which,
prior to the date of the transaction to acquire, rehabilitate, reconstruct, improve, or
any combination thereof, was subject to a contract for federal or state public body
assistance for the purpose of providing affordable housing for low income households
and maintains, or enters into, a contract for federal or state public body assistance for
the purpose of providing affordable housing for low income households.
The key to application of the requirements of Article 34 is whether or not a state public body
(i.e, the Carlsbad Redevelopment Agency or City of Carlsbad) “develops, constructs or
acquires” a housing project where more than 49% of the units will be occupied by low
income households. Based on judicial and legislative interpretations of the meaning of
“develop, construct or acquire”, Article 34 shall not apply to an activity where the Agency or
City:
1) Provides financing, secured by a deed of trust or other security instrument to a private
owner of existing housing; or acquires a development, for which financing previously
has been provided, as a temporary measure to protect security and with an intention
to change the ownership so that it will not continue to be the owner of a low rent
housing project;
2) Acquires or makes improvements to land which is anticipated to be sold, ground
leased, or otherwise transferred to a private owner prior to its development as a low
rent housing project, provided the land and improvements thereon are not subject to
an exemption from property taxation by reason of public ownership for more than five
years following acquisition or improvement by the state public body,. or such an exemption from property taxation persists beyond the five year period and no
alternative use is designated for the land or improvements, but any property tax
revenues lost by affected taxing agencies on
VILLAGE REPLACEMENT HOUSING PLAN
3)
4)
5)
6)
7)
account of the exemption of land or improvements from property taxes by reason of
public ownership of the property, or any interest in the property after the five year
period, are fully reimbursed by payments in lieu of taxes following the expiration of
the five year period;
Leases existing dwelling units from the private owner of such units, provided the
lease or a subtenancy thereunder does not result in a decrease of property tax
revenues with respect to the dwelling units leased;
Provides assistance to the private owner or occupant of existing housing which
enables an occupant to live in decent, safe, and sanitary housing at a rent he or she
can afford to pay;
Provides assistance to a low rent housing project and monitors construction or
rehabilitation of such project and compliance with conditions of such assistance to the
extent of: carrying out routine governmental functions, performing conventional
activities of a lender; imposing constitutionally mandated or statutorily authorized
conditions accepted by a grantee of assistance;
Provides assistance to a development prior to its becoming a low rent housing project
without intending or expecting that the development will become a low rent housing
project; and/or,
Provides financing for a low rent housing project pursuant to Chapter 6.7
(commencing with Section 5 1325 of the Health and Safety Code) of Part 3 of Division
31.
All of the affordable housing units assisted by the Redevelopment Agency, developed
pursuant to an agreement with the Agency, or contemplated to be assisted by the Agency to
date are, or will be, exempt from the requirements of Article 34 based on the information
provided above. The Agency and/or the City of Carlsbad do not intend to produce or assist
in the production of any affordable housing units over the next five years which would
trigger the requirements of Article 34. However, if the Agency and/or the City of Carlsbad
do participate in the development of affordable housing for low income households in a manner which does, in fact, trigger the requirements of Article 34, the Agency and/or City
of Carlsbad will fully comply with the regulations and place the project on the election ballot
for a vote by the registered voters of Carlsbad.
VILLAGE REPLACEMENT HOUSING PLAN
NUMBER OF UNITS AND INCOME LEVELS TO BE REPLACED
The Carlsbad Redevelopment Agency has a legal requirement according to the “replacement
rule”, pursuant to Section 33413(a) of the Health and Safety Code, to replace a total of two
(2) units of housing affordable to low and/or moderate income households for the period
1981 through 1994. Due to direct Agency involvement in construction of a public parking lot
on the corner of Roosevelt Street and Carlsbad Village Drive, two (2) single family homes
were demolished. These units will be replaced within the La Terraza Affordable’ Housing
Project located on El Camino Real and outside the Village Redevelopment Area.
The Agency/City does not intend to participate in any other projects over the next five (5)
years which will result in the removal of housing units from the supply currently available
within the Village Redevelopment Area. However, if the Agency/City does decide to become
directly involved with a housing project within the redevelopment project area which does, in
fact, result in the removal of housing units affordable to low and/or moderate income
households, the Agency will amend this plan and meet the replacement requirement as
outlined.
TIMETABLE FOR MEETING REPLACEMENT OBJECTIVES
The Agency will make every effort to meet its obligation to provide replacement affordable
housing within four (4) years of the date housing units are removed from the Village
Redevelopment Project Area.
To date, the Agency has participated in only one (1) redevelopment project, construction of a
public parking lot, which has resulted in the demolition of housing units. The total number of
housing units demolished were two (2) single family homes. There is no documentation on
file which indicates the units were affordable to very low, low or moderate income
households prior to demolition (June, 1990). These housing units were in a very deteriorated
condition and were not occupied prior to City purchase of property for the construction of
the public parking lot. However, since the Redevelopment Agency has no documentation to
indicate that the units could not be rehabilitated and returned to the low and moderate income
housing stock. The Agency decided to accept the responsiblity to replace these two (2) units.
The units will be replaced within the La Terraza Affordable Housing Project to be located at
9156 El Camino Real. Although this project is located outside the Village Redevelopment
Area, the project will provide 344 apartment units with restricted rents affordable to low and
very low income families. The Housing and Redevelopment Commission has made the
appropriate findings to indicate that the subject affordable housing project benefits the Village
Redevelopment Area. The Agency and City of Carlsbad have contributed over $4 million to
ensure construction of this project. The project will be complete by early 1996.