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HomeMy WebLinkAboutResolution - 04-02 STATE OF CALIFORNIA ) RESOLUTION NO. RDA 04-02 COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO ADOPTING A FIVE-YEAR IMPLEMENTATION PLAN FOR THE AGENCY'S SAN JACINTO AND SOBOBA SPRINGS REDEVELOPMENT PROJECT AREAS; AND ADOPTING THE HOUSING COMPLIANCE PLAN, AND MAKING FINDINGS THAT THE AGENCY MAY MEET ITS AFFORDABLE HOUSING REQUIREMENTS IN THE AGGREGATE AMONGST ALL OF THE AGENCY'S PROJECT AREAS. WHEREAS, Section 33490(a)(1)(A) of the California Community Redevelopment Law, Health and Safety Code 33000 et.see . ("Law") requires all redevelopment agencies to adopt an Implementation Plan every five years, following a duly noticed public hearing; and WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the specific goals and objectives of the agency for the project areas, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project areas- and -implement- the requirementsof-Sections--33334.2,--33334.4,- 33334.6, and 33413 of Law; and WHEREAS, pursuant to Section 33490 of the Law, the Redevelopment Agency of the City of San Jacinto ("Agency") has prepared a Five-Year Implementation Plan, including a Ten Year Affordable Housing Compliance Plan, for the San Jacinto and Soboba Springs Redevelopment Projects, contained herewith as Exhibit A; and WHEREAS, California Health and Safety Code Section 33413(b)(2)(A)(i) requires that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income; and WHEREAS, Section 33413(b)(2)(A)(v) authorizes the Agency to aggregate new or substantially rehabilitated dwelling units in one or more project areas if the Agency finds, based on substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic or economic segregation; and WHEREAS, the Agency held, on December 16, 2004, a noticed public hearing at which it determined that aggregation of the San Jacinto and Soboba Springs Redevelopment Projects would not cause or exacerbate racial, ethnic or economic segregation; and 1 of 3 WHEREAS, Section 33334.2 of the Law requires that not less than twenty percent of all taxes so allocated be used by the Agency for the purpose of increasing, improving, and preserving the community's supply of low- and moderate- income housing at affordable housing cost; and WHEREAS, Agency staff has determined review of the Implementation Plan is exempt from review under the California Environmental Quality Act (California Public Resources Code Section 2100 et seq.) ("CEQA") pursuant to State CEQA Guidelines Section 15061 (b)(3), because it can be seen with certainty that there is no possibility that the review of the Implementation Plan will have a physical effect on the environment; and WHEREAS, the Agency has conducted a duly noticed public hearing. NOW, THEREFORE, BE IT RESOLVED, ORDERED AND DETERMINED BY THE GOVERNING BOARD OF THE THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO AS FOLLOWS: SECTION 1. The Agency hereby adopts the Five-Year Implementation Plan and Housing Compliance Plan for the San Jacinto and Soboba Springs Redevelopment Projects, attached herewith as Exhibit A. SECTION 2. In accordance with California Health and Safety Code Section 33413(b)(2)(A)(v), the aggregation of the San Jacinto and _ Soboba Springs Redevelopment Projects will not cause or exacerbate racial, ethnic or economic segregation. SECTION 3. The approval and adoption of the Implementation Plan does not constitute approval of a specific program, project, or expenditure, and does not change the need to obtain any required approval of a specific program, project, or expenditure form the Agency or the City. APPROVED, PASSED AND ADOPTED this 16t" day of December, 2004, by the following vote: Ayes: Ayres, Ritchie, Shaw, Stubblefield, Buydos Nays: None Absent: None Abstain: None Redevelopment Agency of the City of n Ja By Chris Carlso uydos, Chairperson 2 of 3 ATTEST: D othy L. C ouinard, Agency Secretary t APPROVED AS TO FORM: BEST BEST AND KRIEGER LLP (men ouns� ` Best Best & Krieger LLP CERTIFICATION 1, Dorothy L. Chouinard, Secretary of the Redevelopment Agency of the City of San Jacinto, hereby certify that the foregoing Resolution No. 04-02 was duly passed and adopted by the Governing Board of the Redevelopment_Agency of the City of San Jacinto at a regular meeting thereof held on the 16th day of December 2004, and that the foregoing is a full and correct copy of said resolution. Witness my hand and official seal this 17t" day of December, 2004. D rothy L. Ch9pinard, Agency Secretary U 3of3 The Redevelopment Agency of the City of San Jacinto 12/OU4 Third FivewYear Implementaflon Plan (FY 2OW5 through 2008=09) kv San Jacinto Redevelopment Plan Soboba Springs Redevelopment Plan Adopted , 2004 Prepared For. The RedevelopmentAgem y of the City of San Jacinto 201 East Main Street San Jacinto, CA 92583 Prepared By: RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 WEST 4TH STREET SANTA ANA,CALIPORNIA 927101-4502 PHONE(714)541-4585 FAX: (714) 541-1175 E-MAIL:INFO WEBRSG.COM REDEVELOPMENT AGENCY BOARD Chris Carlson Buydos, Chairperson Dale Stubblefield, Vice Chairperson Jim Ayres, Member Robert Ritchie, Member Ken Shaw, Member REDEVELOPMENT AGENCY STAFF t, Peter Cosentini, Executive Director Tim Hulls, Community Development Director Steven Pasarow, Redevelopment Operations Manager Dorothy Chouinard, Agency Secretary TUN 1� 1plenwntaflon Plan San Jacinto Redevelopment Pr(Aects Talft of contanft Introduction oduction................................ ................................ ............... 1 �Y i Contents of the Implementation Strategy............................................. /2 Background......................➢......... ................................ ............... 6 Plan!_imitations.......................................................................................5 Blighting Conditions...............................................................................6 Goals and Objectives for all Project Areas...........................................7 San Jacinto Redevelopment Project Area................................ 9 Prior Plan Period Accomplishments and Remaining Blighting Conditions.............................................................................................. 10 Anticipated Planning Period Projects and Programs........................13 Soboba Springs Redevelopment Project Area........................14 Prior Plan Period Accomplishments and Remaining Blighted Conditions.............................................................................................. 14 Administration of the Implementation Plan...........................16 Implementation Plan Adoption Process.................................................... 16 Mid-Term Implementation Plan Review Process..................................... 16 Appendices Appendix A—Housing Compliance Plan GAMSMACWT0120M WPLEHENTATM PI?NWEW REPORT&SAN 3AC24TO2 D4-2M RVLLENENTA1XN PLAN DOC Third Fnre-Year Implementation Man San Jacinto Redevelopment Projects Introduction , This document is the Third Five-Year Implementation Strategy ("Implementation Strategy") for the San Jacinto Redevelopment Agency ("Agency"). it covers the period from July 1, 2004 to June 30, 2009. The Implementation Plan covers the following redevelopment. projects: • San Jacinto Redevelopment Project o Adopted on June 28, 1983 o Amendment No. 1 —December 28, 1993 o Amendment No. 2—December 20, 1994 o Amendment No. 3—February 1996 • Soboba Springs Redevelopment Project o Adopted November 1983 This Plan presents the Agencys goals,_ objectives, anticipated projects, programs, and estimated expenditures for the five-year planning period fiscal years (FY 200"5 through 2008-09). This Plan was adopted by the Agency following a duly noticed public hearing held on December 16,2004. The above mentioned redevelopment projects are to be collectively referred to as the "the Project Areas". The Implementation Strategy serves as a blueprint for current and future Agency activities to eliminate blight and the Agency's implementation of its low and moderate income housing responsibilities. The Implementation Strategy is divided Into two separate components; a Redevelopment Component and a Housing Component. The Redevelopment Component; 1) reviews the goats and objectives of each Redevelopment Project Plan; 2) identifies the Agency's strategy to achieve these goals and objectives; 3) presents the projects, programs, and expenditures (other than those relating to low and moderate income housing) that have been developed as a means to attain the goals and objectives; and 4) describes how the goals and objectives, projects, programs, and expenditures will eliminate blight within the Project Area. Additionally, pursuant to Section 33490 of the CRL, an implementation plan must explain how the components of the plan will implement various requirements regarding low and moderate income housing. Generally, the goals, activities, and expenditures included in the Redevelopment Component of the Implementation Strategy do not implement the housing requirements of the CRL. The activities that do implement these requirements are contained in the Housing Component. The Housing Component shows how the Agency's goals and objectives for low and moderate Income housing preservation and production will be implemented and how the statutory requirements for the set-aside and expenditure of tax increment revenues for housing purposes will be met. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE The Implementation Strategy is a general statement of"direction" rather than an "unalterable course of action". It was prepared to set priorities for redevelopment activities within the redevelopment project areas for the five-year period covered by the plan and incorporates then currently known financial constraints In developing a program of activities to accomplish essential near-term revitalization efforts. However, new issues and opportunities are commonly encountered during the course of administering the redevelopment plans during the five-year period. Therefore, the Implementation Strategy may be amended if necessary to effectuate its purposes. CONTENTS OF THE IMPLEMENTATION STRATEGY Section 33490 of the Califomia Community Redevelopment Law, Health and Safety Code Section 33000 et seq. {°Law"), requires this Plan to Include the following: A Specific Agency goals and objectives for the Project Areas; ® Specific programs, potential projects, and estimated expenditures proposed by the Agency over the five-year planning period:and • An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight within the Project Areas and improve and increase the supply of housing affordable to very low,low,and moderate income households. The CRL_also requires_that this Implementation Strategy address the Agency's affordable housing production and replacement housing needs and achievements. These items are specifically addressed in the Housing Component and Ten-Year Affordable Housing Compliance Plan,attached hereto as Appendix"A'. t 1NP fW -' 'mt£,-s The City Council of the City of San Jacinto took action in June, 1983 to establish the Redevelopment Agency of the City of San Jacinto. With this action the City embarked on a comprehensive effort to eliminate blighting and adverse conditions within the City. The focus of the Citys revitalization efforts have been channeled through the adoption and implementation of its Redevelopment Plans. The Agency's first redevelopment project area, the San Jacinto Project Area, was adopted in 1983. Since then, the Agency has adopted one additional Redevelopment Project Area, the Soboba Springs Redevelopment Project Area. Over the past twenty years,the Agency has accomplished numerous redevelopment, development, and Infrastructure projects that have revitalized properties within the Project Areas. Unfortunately, many of the blighting conditions that required the adoption of the Project Areas still exist or have been exacerbated over time. The effect of the recent recession has impacted redevelopment efforts and the activities of both private and public sector. However, the recent escalation in home values has served to offset the lack of redevelopment activities. Additionally, the Agency, by Invoking the tools, mechanisms, and powers provided by the CRL,continues to pursue the revitalization of the Project Areas. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE 2 On December 6, 1994, the Agency adopted its first Five-Year Implementation Plan (FY 1994-1999). The second Five-Year Implementation Plan was adopted in December 1999 (FY 1999-2004), Both Five-Year Implementation Plans cover the two (2) adopted redevelopment project areas that encompass an estimated 3,858 acres of the City's incorporated territory. Additionally,pursuant to the requirements of the CRL, the Agency has held a mid-term public hearing on the progress of Five Year Implementation Plan and has subsequently published a Progress Report for each plan. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE t A map of the Project Areas is presented on Figure 1 below: L � F e a. ®/ C6 $ � ® 7F 2 x a SUP aLS ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE4 PLAN UMIT aTIONS Each Redevelopment Project Area is subject to its own time and financial limits as required by the Law. These limitations are summarized below. Table 1 summarizes the time and financial limits in the Redevelopment Plan. Y� � c'i• r.�� �g :�.i' ''./ Y�iF� .f -n"� �' t�..I'".i�"'. �, �-�'rt�'��%'1 J"-' b Collect Eminent Incur New Plan Tax Domain Debt Duration Increment San Jacinto Redevelopment Project Area Expired 6/28/2003 6/28/2023 6/28/2033 Amendment No, 1 Expired Modified by Amendment No.3 Amendment No. 2 (AB 1290 Conformance) NIA. Amendment No. 3 2/1/2006 12/28/2013 12/26/2033 12/28/2043 Soboba Springs Redevelopment Project Area Expired 11/1/2028 '" 'Section 700.80 Financing Limitations in the Soboba Springs Redevelopment Plan establishes a limitation of$5 Million of taxes which may be divided and allocated to the Agency. Section 700.80 Financing Limitations in the Saboba Springs Redevelopment Plan establishes a limitation of$5 Million on the amount of bonded indebtedness,which can be outstanding at one time without an amendment to the Plan. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE 5 BLIGHTING CONDITIONS This section of the implementation Plan has been included to identify the legal blight definition at the time each plan was adopted. As defined by Sections 33031 and 33032 of the California Health and Safety Code, in 1983, the year both Redevelopment Plans were adopted,a blighted area was characterized by one or more of the following conditions: 1. Structural Blight The existence of buildings and structures used, or intended to be used,for living, commercial,industrial,or other purposes, or any combination of such uses which are unfit or unsafe to occupy for such purposes and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime because of any one or a combination of the following factors: a. Defective design and character of physical construction; b. Faulty interior arrangement and exterior spacing; c. High density of population and overcrowding; d. Inadequate provision for ventilation, light, sanitation, open spaces, and recreational facilities; and/or e. Age, obsolescence, deterioration, dilapidation, mixed character, or sht ing of uses. 2. Economic Blight --- -- Properties that suffer economic dislocation, deterioration, or disuse because of one or more of the following factors: a, An economic dislocation, deterioration or disuse resulting from faulty planning; b. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development; c. The laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions; d. The existence of Inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without redevelopment; e. A prevalence of depreciated values, impaired investments, and social and economic maladjustment;and/or; f. The existence of lots or other areas that are subject to being submerged by water provided that any ecologically valuable existing features in such areas shall, to be maximum extent feasible,be preserved. Such conditions,one or more,must cause the following: 1. A reduction of,or lack of, proper utilization of the area; 2. To such an extent that it constitutes a serious physical, social, or economic burden on the community;and/or 3. Which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE 6 GOALS AND OBJECTIVES FOR ALL PROJECT AREAS The primary reason for the establishment of Redevelopment Project Areas is the need to eliminate blight within Project Area boundaries including problems relative to circulation, inadequate community infrastructure, and to assist the private sector in providing the type of development that will maximize the development of property within the Project Area boundaries and prevent the recurrence of the blight conditions. The following represent the goals and objectives of the Redevelopment Agency, as stated in each of the Plans, to alleviate blight conditions in each of the project areas: 1. The elimination of existing blighted conditions, be they properties or structures, and the prevention of recurring blight in and about the Project Area. 2. The development of property within a coordinated land use pattern of residential, commercial, industrial, recreational, and public facilities, in the Project Area consistent with the goals, policies, objectives, standard, guidelines, and requirements,as set forth in the City's adopted General Plan and Zoning. 3. The development of public services and facilities including, but not limited to, recreational, maintenance, and operational services and facilities as are necessary and required for the development of the Project Area. . 4. The elimination of environmental deficiencies including inadequate street Improvements, inadequate utility systems, and Inadequate public services; and mitigation of freeway or highway impacts, including its circulation movement and its potential social,physical,and-environmental characteristics of blight. 5. The development of a more efficient and effective circulation corridor system, free from hazardous vehicular, pedestrian, and bicycle interfaces, designed to their ultimate circulation flow. 6. The implementation of techniques to mitigate blight characteristics resulting from exposure to freeway, highway, and/or public right-of-way corridor activity which affect adjacent properties within the Project Area. 7. Beautification activities to eliminate all forms of blight including, but not limited to, visual blight in order to encourage community identity. 8. The encouragement, promotion, and assistance in the development and expansion of local commerce and needed commercial and industrial facilities, increasing local employment prosperity, and improving the economic climate within the Project Area, particularly in the Central Business District, and within industrial and commercial areas and the various other isolated vacant and/or underdeveloped properties with the Project Area. 9. The acquisition, assemblage, and/or disposition of sites of usable and marketable sizes and shapes for commercial, industrial, recreational, and public facility development within the Project Area. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE 10. The creation of a more cohesive and unified San Jacinto community by strengthening the physical, social, and economic ties between residential, commercial, Industrial, recreational, and public land uses within and about the Project Area. 11. The acquisition and disposition of property for the purpose of providing relocation housing,as may be required to Implement the objectives of this Plan. 12. To provide for very low-, low-, and moderate-income housing availability, as required by State law and requirements, as necessary and desirable, consistent with the goals and objectives of the community. 13. To encourage the coordination, cooperation, and assistance of other local agencies, as may be deemed necessary, to ensure that projects undertaken by this Agency are implemented to their fullest and practical extent. 14. The achievement of a physical environment reflecting the high level of concern of architectural and urban design principals deemed important by the San Jacinto community. 15. To encourage community involvement and citizen participation in the adoption of policies, programs, and projects so as to ensure that the Redevelopment Plan is implemented in accordance with the goals and objectives of the San Jacinto General Plan. 16. To provide a procedural and financial mechanism by which the Agency can assist complement, and coordinate public and private development, redevelopment,revitalization,and enhancement of the San Jacinto community. Additional Objectives applicable to the implementation of the Redevelopment Plans for the Project Areas include: • Eliminate and prevent the reoccurrence and spread of blight and deterioration within the Project Areas. ® Continue programs which promote the rehabilitation of the existing housing stock where appropriate. • Provide, improve, or preserve low and moderate income housing as is required to satisfy the needs and requirements of the various age and Income groups of the community, maximizing the opportunity for Individual choice, and meeting the requirements of State law. Enhance and upgrade the physical, social and economic conditions within the area thereby improving the quality of life for San Jacinto residents. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY IMPLEMENTATION PLAN PAGE 8 The Redevelopment Plan for the San Jacinto Redevelopment Project Area("Project Area") was approved and adopted by the City Council of the City of San Jacinto {"City Council") on June 28, 1983, by Ordinance No.754. The Redevelopment Plan has been subsequently amended on three occasions. Amendment No. 1 was approved and adopted by the City Council on December 28, 1993 to add territory to the Project Area, Amendment No. 2 brought the Redevelopment Plan into conformance with the requirements of AB 1290, codified in Section 33333.6 of the California Redevelopment Law( Lavf), with the approval and adoption of Ordinance No. 1006 on December 23, 1994. Amendment No. 3 was adopted in February 1996, pursuant to a 1995 agreement by and among the City of San Jacinto, the Resources Agency of Cal'Ifomia, the California Farm Bureau Federation, the Riverside County Farm Bureau, Virgal T. Wooffolk, and Harry E. Bryan Jr. The amendment deletes certain territory form the San Jacinto Redevelopment Project Area. The San Jacinto Redevelopment Project Area totals approximately 3,393 acres and is comprised of noncontiguous areas situated along the Citys commercial corridors and older neighborhoods. The boundaries of the San Jacinto Redevelopment Project Area are shown on the Redevelopment Project Area on Page 4. Adoption of this Plan does not approve any of the proposed programs or projects. Programs and projects to be undertaken by the Agency are subject to discretionary approvals by the Agency, as well as environmental clearance as determined by staff. Pursuant to Section 33490(a)(1)(B), adoption of an implementation plan shall not constitute a "project"within the meaning of the California Environmental Quality Act(Public Resources Code Section 21000 at s and inclusion of an project or program in the implementation plan shall not eliminate -- seq.), y p J P aJ p environmental analysis that would otherwise be required. FIVE-YEAR IMPLEMENTATION PLAN OBJECTIVES The Agency will begin several projects during the next Five-Year Implementation Plan. Economic development activities will remain a priority for the Agency, to facilitate and encourage new development and businesses within the Project Area. In FY 2004-2005, a Fagade Program to facilitate commercial facade improvements in the downtown area will be implemented. The Agency will continue to fund a portion of a Code Enforcement Officer to continue to address biight within the Project Area during Fiscal Years 2004-2005 and 2005-2006. Two new projects will also be initiated to encourage, promote, and assist in the development and expansion of local commerce and needed commercial development on the Sanderson/Ramona Expressway Corridor and along State Street. The Sanderson/Ramona Expressway Corridor is a major thoroughfare within the project area, which lacks infrastructure and has underdeveloped properties. The first phase is to develop a master plan for the Corridor, followed by completion of environmental documents which will provide for the ease of future development. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 9 The State Street Project is to develop a plan for future improvements and to begin infrastructure improvements,including street,curb,gutter,and missing sidewalks. Additionally during the term of this Plan,the Agency will repay existing debt and obligations. PRIOR PLAN PERIOD ACCOMPLISHMENTS AND REMAINING BLIGHTING CONDITIONS The Agency has actively pursued redevelopment of the San Jacinto Redevelopment Project Area (including the amendment area)since the original adoption of the Redevelopment Plan in 1983. The Agency completed various improvements, including the "SuperblocW, La Entrada Median Improvements, Sallee Park Pool, the General Plan Update, the Estudillo Mansion Porch and Balcony Restoration,and several agreements for financial assistance. TABLE 1-1 PRt]JECT SLIGHT f2ERAOVAL YEAR FUNDING Virginia Lee Economic 1999 $340,750 Main Street Improvement Plans InfrastructurelEconornic 2000/2001 $34.603 La Erttrads Median Infrastruclure/Econornic 20002001 $50,000 Commercial Fagade Loan—MaggWs Structural and Economic 200012001 $25,000 Business Development Loan—Precision Economic 200/02001 $20,000 Concepts General Plan Update StructuraUEamon»cc 2000/2004 $75,000 Estudillo Mansion—Porch and Balcony Resbation and Neighbodiood 2001t2002 $75,000 Restoration Improvement Commercial Fagade Loan—Miller Jones Structural and Economic 2001/2002 $10,000 915Industrial Way Property Sale Eco norntc 2001/2002 $280,000 Tony's Sea Landing Sate Ec on rnic/Business 2001/2002 $175,000 Ramona Expressway/Sanderson Structural and Economic(Project 2002/2003 EDA Grant Waterline and Sewer Project c oadination) Economic Development Market Materials Economic 200212003 $25,000 Ramona/Taquitz Curb and Gutter PhysicaitNeighborhood 200212003 $48,087 Commercial Facade—National Scent Structural and Economic 2002/2003 $20,000 ROSENOWSPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 10 During the Five-Year Implementation period, the Agency moved toward addressing and removing blight within the Redevelopment Project Area. Limited funding, due to property value decreases, constricted the Agency's ability to complete a number of projects planned. As a result, many projects listed in the 1999/2004 implementation Plan were not completed. Future projections also showed limited Tax Increment available, therefore, the projects were re-evaluated and a determination made not to move forward on the uncompleted projects. Although funding was limited during the Plan period, the Agency moved forward on its economic development and marketing efforts,which resulted in the sale of several properties, both of which resulted in new businesses moving Into the Project Area. In addition, staff worked closely on developing new marketing materials and working with developers on the development of a 25 acre commercial site and the potential sale of a remaining Agency owned parcel adjacent to the Superblock. FINANCIAL RESOURCES The first Five-Year implementation Plan Identified a number of projects and programs, as well as corresponding expenditures,which the Agency believed were most likely to occur over the First Five-Year Implementation Plan period. The second Five-Year Implementation Plan was limited in its ability to generate surplus tax increment given the recession and reduction in property values. This contributed to the Agency's limited ability to develop new projects and/or programs during this second Five- Year Implementation Plan. Table 2 on the following page presents the revenues (excluding low/moderate_housing revenues)the Agency may have available over the next five(5)years to fund Implementation Plan activities. The projections are based on a 2% annual increase In secured assessed values over the five (5)year period. No growth rates were assumed for unsecured or utility values. Outlined In the tables are projected tax increment receipts, loan and debt service payments, and projected Agency administration costs. Funds available to implement future programs are identified as the remaining funds net of these operation and debt service obligations. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 11 REVENUE AND PROJECTIONS TABLE TABLE 2 FIVE YEAR IMPLEMENTATION PLAN -SAN JACINTO NONHOUSING 1 2 3 4 5 Total 2004-05 2005-08 2006-07 2007-08 2008109 Beginning Cash Balance 88.705 18,797 3,654 8,536 9,003 88,705 Revenues Tax increment Revenue(net of housing) $2,295,000 $2,340,900 $2.387,718 $2,435,472 $2,484,182 $ 11,943,272 TOTAL AVAILABLE FUNDS $2,383,705 $2,359,697 $2,391,372 $2,444,008 $2,493,185 $12,031,977 Operations&Debt Service Costs Debt Service $1.218,388 $1,216,388 $1,214,388 $1,212,38B $1,210,388 $6,071,940 Taxing Agency Pass Through Payments 559,555 570,746 582,161 593,804 605,680 $2,911,947 Administration,Maintenance& Overhead 361,675 368,909 376,287 383,812 391,489 $1,882,171 ERAF 100,000 100,000 - $200.000 TOTAL $2,239,618 $2,256,043 $2,172,836 $2,190,005 $2,207,557 $11,066,058 FUNDS AVAILABLE FOR PROJECTS $144,087 $103,654 $216,536 $254,003 $285,628 $1,005,910 Projects&Programs Costs $125,290 $100,000 $210,000 $245,000 $260,000 $940,290 TOTAL COSTS $2,364,908 $2,356,043 $2,382,836 $2,435.005 $2,467,557 $12,006,348 FUND BALANCE SURPLUS!(SHORTFALL) $18,797 $3,654 $8,356 $9,003 $25,628 ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 12 ANTICIPATED PLANNING PERIOD PROJECTS AND PROGRAMS The following summary matrix for the San Jacinto Project Area describes the proposed non- housing programs and projects planned for the next five years (see Table 2-1). The matrix describes each proposed program, gives the projected time frame for implementation, identifies Agency goal's to be achieved,and identifies the blighting conditions the program will address. Anticipated program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY 2008-09. Greater or lesser funding may be available; depending upon actual assessed valuation changes in the San Jacinto Project Area. Anticipated expenditures are based upon preliminary staff estimates and are subject to change based upon available funding. r s Estimated Program Time Frame Goals Achieved Blight Mitigated Agency Cost Farads Grant program 2004.05 Goal 1-Elimination of blighted conditions Structural Blight $90,000 Code Enforcement Program 2004t05 Goal 1-Elimination of blighted conditions Structural Blight $35,290 Sanderson/Ramona Expressway 2005f06 Goal -Encourage development and commerce Economic Blight $64,000 Code Enforcement Program 2005t06 Goal 1-Elimination of blighted conditions Structural Blight $36,000 Sanderson/Ramona Expressway 2006t07 Goal 8-Encourage development and commerce Economic Blighl $210,000 State Street Master Plan 2007108 Goat 8-Encourage devolopnent and commerce Economic Blight $245,000 State Street Master Plan 2008109 Goal 8-Encourage development and commerce Economic Blight $260,000 GRAND TOTAL FIVE YEAR NON-HOUSING PROGRAM COST $940 290 ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE13 The Redevelopment Plan for the Soboba Springs Redevelopment Project Area ("Project Area") was approved and adopted by the City Council of the City of San Jacinto ("City Council")In November of 1983. The Redevelopment Plan has not been amended. The Soboba Springs Redevelopment Project Area encompasses approximately 465 acres. The anticipated initial projects list for the Project Area included the construction of a bridge across the San Jacinto River at Main Street and take Park Drive, and the necessary extension to accompany the bridge. This project was completed in FY 2001/2002 and no additional projects are planned at this time. Tax Increment generated by the Soboba Springs Redevelopment Project Area will be used for repayment of bonds and debt service for the Bridge Project. PRIOR PLAN PERIOD ACCOMPLISHMENTS AND REMAINING BLIGIHfING CONDITIONS The Agency has actively pursued the construction of the Lake Paris Bridge in the Soboba Springs Redevelopment Project Area. TABLE 3 n / PROJECT BLIGHT REMOVAL YEAR FUNDING Lake Park Bridge Improvements Infrasht#urelEwnwicc 1999/2000 $1,998.839 20DWO01 $4,293,895 Lake ParkWaff InfrasbucturelEconomic 2001/2002 $51,908 Lake Park Improvements Infrastruc turelEconondc 2001/2002 $285,499 FINANCIAL RESOURCES Table 2 on the following page presents the revenues (excluding lowimoderate housing revenues)the Agency may have available over the next five(5)years to fund bond and debt service for the Lake Park Bridge Project. The projections are based on a 2%n annual increase in secured assessed values over the five (5)year period. No growth rates were assumed for unsecured or utility values. outlined in the tables are projected tax increment receipts, loan and debt service payments,and projected Agency administration costs. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 14 REVENUES&PROJEC71ONS TABLE 3-1 NMI I--, mom m Milos 1 2 3 4 5 Total 2004-05 2005.06 2006-07 2007-08 2008f09 Beginning Cash Balance 122,337 22,040 83,477 133,527 171,482 Revenues <177,308> Tax Increment Revenue(net of housing) $472,500 $481,950 $491,589 $501,421 $511,449 $2,458,909 TOTAL $472,500 $481,950 $491,589 $501,421 $511,449 $2,458,909 TOTAL AVAILABLE FUNDS $422,529 $503,990 $575,066 $634,931 $682,931 $2,819,464 Operations&Debt Service Costs Sobaba Project $0 $0 $0 $0 $0 $0 Saboba Debt 400,489 420,513 441,539 463,616 486,791 $2,212,955 Administration,Maintenance& __-Overhead ERAF TOTAL $400,489 $420,513 $441,539 $463,616 $486,791 $2,212,955 FUND BALANCE SURPLUSI(SHORTFALL) $22,040 $83,477 $133,527 $171,482 $196,134 t ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 15 As detailed in the Introduction of this Plan, the Agency is required to produce an Implementation Plan every five years. After adoption of the first implementation plan, a new plan is to be adopted every five years either in conjunction with the housing element cycle or the implementation plan cycle. MWLBFENTA7M PLAN ADoFnoN PROCESS Each Implementation Plan must be presented and adopted at a duly notice public hearing of the Agency. Notice of the public hearing must be conducted pursuant to this Section 33490 of the Law. The Notice must be published pursuant to Section 6063 of the Government Code,mailed at least three weeks in advance to all persons and agencies that have requested notice, and posted in at least four permanent places within the Project Area for a period of three weeks. Publication, mailing,and posting shall be completed not less than 10 days prior to the date set for hearing. The Agency may amend the implementation plan at any time after conducting a public hearing on the proposed amendment. 1ERM IlIffin"ENTAMON PLAN REVIEW PROCESS At least once within the five-year term of this Implementation Plan, the Agency must conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation for each redevelopment project. This hearing must take place no earlier than two years and no later than three years after the adoption of the Implementation Plan. ALLEVIATION OF BLIGHTING CONDITIONS The Agency proposes the implementation of programs and projects to provide a comprehensive program to stimulate new development and property rehabilitation in each of the project areas. The programs detailed above include: 1. Commercial facade rehabilitation for blight removal and revitalization. 2. Rehabilitation programs and new development activities to improve the City's stock of low and moderate-moderate-income housing. 3. Rehabilitation and construction of infrastructure. 4. Programs to rehabilitate old or obsolete structures to accommodate modem uses. 5. Enhancing the business community and community economic base. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 16 Successful implementation of the programs and projects Wit result in expanded economic activity in the City and the project areas. Such activity Will increase the number of local employment opportunities,expand the City tax base for the support of essential services,and reduce the costs to the community in providing such services. In addition, implementation of the above projects will alleviate detrimental physical conditions, including the need for re- parcelization, replacement of deteriorating and dilapidated land uses, and providing the nestled public Improvements for both project areas. ROSENOW SPEVACEK GROUP,INC. SAN JACINTO REDEVELOPMENT AGENCY THIRD FIVE-YEAR IMPLEMENTATION PLAN PAGE 17 The Redevelopment Agency of the City of San Jacinto Five Year Implementation Ian-Housing Component (2004/05 through 2008109) Ten-Year Affordable Housing Compliance Plan (2004/05 through 2013/14) December 16, 2004 s Prepared For: The Redevelopment Agency of to City of San Jacinto Agency 201 East Main Street San Jacinto, CA 92583-4292 Prepared By: RSG INTELLIGENT COMMUNITY DEVELOPMENT ROSENOW SPEVACEK GROUP INC. 309 WEST 4TH STREET SANTA ANA,CALIFORNIA 92701-4502 PHONE:(714)541-4585 FAX:(714)541-1175 E-MAIL: INFOCIWj BRSG.COM Musing CmMonent tothe Rue Year Inqxwormstation i° if The Redevelopment Agency of the City of San Jacinto Introduction................................ ...........................1.... .................... I Legal Requirements for Housing Compliance Plans................................. 1 Compliance with AB 637 and SB 701........................................................2 Contents of the Housing Compliance Plan.................................................3 Purpose...........................................................................................................3 Methodology and Data Compilation............................................................4 Housing Goals and Objectives.....................................................................4 Affordable Housing Production Deeds................................ ........... 6 Definitions and Data Compilation................................................................ 6 Units Constructed or Substantially Rehabilitated Within the Project Areas............................................................................................................... 7 Aggregation of Affordable Housing Units Amongst All Project Areas....8 Affordable Housing Provided Outside of the Project Areas.....................9 Inclusionary Housing Obligation Status.....................................................9 Inventory of Existing Deed-Restricted Units............................................. 10 Affordable Units Required..........................................................................12 Past Induslonary Unit Need.................................................................... 14 Current Five&Ten Year Period Incluslonary Unit Need......................... 14 Replacement Housing Production Needs................................ .... 15 Estimated Housing Fund Resources & Projected Expenditures .17 Low and Moderate Income Housing Fund................................................17 Targeting of Housing Fund Expenditures.................................................19 4 G:kRSG%SANJACENTO=5IMPLEMENTATION PLAMNEW REPORTStSAN JACINTO HOUSING PLAN.DOC Income Categories Assisted.................................................................... 19 Family and Senior Housing...................................................................... 20 Other Funding Sources for Housing Programs.......................................21 Other City/Agency Revenues..................................................................22 Federal/State Revenue Sources.............................................................22 Proposed Implementation Initiatives................................ ........... 23 Future Housing Projects and Programs....................................................23 Single Family Residential Rehabilitation Programs.................................23 Infill Housing Program..................................................................:...........24 Developer Proposed Projects................................................................246 DensityBonus..........................................................................................25 inclusionary Housing Ordinance..............................................................25 FairHousing..................................................... .......25 Affordable Housing Geographic Distribution ...........................................26 Housing Housing Fund Expenditures 1999/00 through 2003104................ 26 Housing Element Consistency................................ ..................... 27 Housing C01111113011MINd 1 ' nPlan The RedevelopmentAncy of the City of San Jacinto This document is the Housing Component for the 2004-05 the Redevelopment Agency of the City of San Jacinto ("the Agency'') Five-Year Implementation Plan and Ten Year Affordable Housing Compliance Plan (the "Housing Compliance Plan). This Housing Compliance Plan accompanies the Agency's Five Year Implementation Plan, which was adopted along with this Housing Compliance Plan by the Agency following a duly noticed public hearing held on December 16, 2004. This Housing Compliance Plan covers collectively the Agency's two Redevelopment Project Areas: A San Jacinto Redevelopment Project Area ® Soboba Springs Redevelopment Project Area All of the above mentioned redevelopment projects are collectively referred to as the"the Project Areas". The Agency's first redevelopment project area, the San Jacinto Redevelopment Project Area,was adopted in 1983. The Soboba Springs Redevelopment Project Area was also adopted in 1983. The two (2) adopted Project Areas encompass an estimated 3,858 acres of the City s incorporated territory. The Housing Compliance Plan serves as a blueprint for current and future Agency activities outlining how It will meet its low and moderate income housing responsibilities and eliminate blight This Housing Compliance Plan presents a summary of the Agency's inclusionary and replacement housing program as mandated by Sections 33413(b)(4) and 33490(a)(2) and (3) of the California Community Redevelopment Law, Health and Safety Code Section 33000-et sec. ("Law"). Specifically, it presents a forecast of the number of affordable housing units that may be needed over the ten year planning period (fiscal years 2004-05 through 2013-14) and the Agency's plans to facilitate the creation of the required number of affordable housing units within this timeframe. Legall ReciLdirenvinft for HouskV Compliance Plans Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the Law, this Housing Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low, low, and moderate-income housing units will be produced as a result of new construction or substantial rehabilitation. In addition, this Housing Compliance Plan is to address the Agency's plans to develop replacement housing destroyed or removed as a result of Agency participation in a redevelopment project, ROSENOW SPEVACEK GROUP,INC. PAGE 1 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Compliance with AB 637 and SS 701 This Housing Compliance Plan is consistent with recent changes enacted into the Law pursuant to Assembly Bill 637 (Lowenthal) and Senate Bill 701 (Todakson). Among these significant amendments are: ➢ Periods of Affordability Restriction_: That an agency must adopt and periodically update an affordable housing production plan to ensure compliance with the Law specifically addressing the lengthen restrictive periods of affordability for assisted low and moderate income housing units. ➢ 55/45 Year Minimum Affordability Periods: Effective January 1, 2002, all units assisted by the Housing Fund, replacement housing, and production housing must be affordable for 55 years (rental units)or 45 years (owner- occupied units). Units assisted, rehabilitated or constructed prior to January 1,2002 may have shorter time limits. ➢ Substantial Rehabilitation: Between January 2002 and January 2006, a redevelopment agency Is only required to include in its housing production obligations those numbers of units generated by the substantial rehabilitation units assisted by the agency. Outside of this time frame, substantial rehabilitation of single family units assisted by the agency and any multifamily units count towards the production requirement. y Replacement Hbusinq` All redevelopment project areas adopted after January 1976 replace one (1) for one (1) each unit destroyed by an agency. Effective January 1, 2002, 100% of all replacement housing units must be affordable to the same income categories as those displaced by an Agency project. Previously, only 75% of the units had to match the displaced units income group. ➢ Targeting Housing Fund Expenditures: Effective January 2003, the Law now requires that Housing Fund assistance during the 10-year Housing Compliance Plan mirror the communitys needs, both in terms of the income categories needed, and the number of family (versus senior) housing needed.' (The Law provides an additional five years to meet this requirement if an agency deposited less than $2 million over the first five years of the Housing Compliance Plan.) Allocation of a redevelopment agenay'a tax Increment housing set aside dollars must at a minimum be allocated to very low and low Income parsons at least in the same proportion to the very low,low and moderate Income unit need identified in the ttmmuraVs lousing element (as estaWlshed by the regions housing reads allocation). Additionally horsing set aside funds allocated for person 65 years of age or older must not exceed the proportion of there number to the general population. ROSENOW SPEVACEK GROUP,INC. PAGE 2 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY ConterAs of the 1401111SIng COrripililance Plan This Housing Compliance Plan has been developed to accomplish the following goals; ® To account for the number of affordable dwelling units, either constructed, or substantially rehabilitated, in the Project Areas since adoption; • To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 2004-05 and 2013-14 and over the duration of the Redevelopment Plan; ® To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal years 2004-05 and 2013-14; • To project the availability of Agency revenue for funding affordable housing production; • To identify implementation policies/programs and potential sites for affordable housing development; ® To establish a timeline for implementing this Housing Compliance Plan to ensure that the requirements of Section 33413 are met during the ten-year period between fiscal years 2004-05 and 2013-14;and ® To review the consistency of Agency affordable housing goals, objectives, and programs pursuant to the City of San Jacinto Draft Housing Element. Purpose Since 1976, redevelopment agencies have been required to assure that at least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low-income households. Further, for all units developed in the project area by entitles other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated dwelling units within the Project Area be made available at affordable costs to low or moderate income households. Of these, not less than 40% of the dwelling units are required to be available at affordable costs to very low-income households. These requirements are applicable to housing units as aggregated,and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. In 1994, the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how the agency would achieve the aforementioned affordable housing mandates. Commonly referred to as a Housing Compliance Plan, the Law also requires agencies to update the Compliance plan every five years in conjunction with the preparation of their Five Year implementation Plan. ROSENOW SPEVACEK GROUP,INC. PAGE 3 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SANJACINTO REDEVELOPMENT AGENCY M This Housing Strategy takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoption. Information from both the Planning and Building Divisions of the City's Community Development Department was provided and reviewed in order to account for such units and thereby calculate the Agency's overall affordable housing production needs. The Strategy accounts for existing residential construction and substantial rehabilitation, and includes projections of new dwelling units that may be constructed or substantially rehabilitated during the ten-year planning period and over the remaining period for which each of the, Project Areas Redevelopment Plans are effective. H The housing goals and objectives for the term of this Housing Compliance Plan are: ❖ To Increase, improve, and preserve the Community's supply of low and moderate income housing citywide. To comply with the replacement and inclusionary housing requirements mandated by Law. ❖ To leverage the Agene}/s Housing Funds with other resources In order to promote affordable housing. -- To insure that the dollars spent for general administrative activities are not disproportionate to the amounts actually spent to produce, increase, and preserve housing. •:•. To give priority to housing proposals that will eliminate or prevent the spread of blight Citywide and decrease excess demands on public services such as police,code enforcement,and building and safety within the Project Areas. 4• To continue efforts to stimulate the construction of affordable infill housing units on a community wide basis. ❖ To encourage the development and rehabilitation of affordable multifamily rental housing units. To utilize the goals and policies established in the City's Draft Housing Element to guide the efforts of the Agency in its development of future affordable housing programs. To assist the City in the development and implementation on an Inclusionary Housing Ordinance that would require at least 15% of all new housing units be restricted and affordable to persons and families that are classified as very low,low and moderate income. ROSENOW SPEVACEK GROUP,INC. PAGE 4 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY To provide financial incentives to enable Inclusionary Housing Units produced by the City's proposed inclusionary Ordinance to contain restrictive covenants consistent with the CRL, ensuring that such units remain affordable for 45 years for ownership units and 55 years for rental units. Since the adoption of the first Housing Compliance Plan in 1994, the Agency through the efforts of the Community Development Department has actively pursued projects, programs, and activities that meet the Agency's goals as set out above. The City's comprehensive housing program will continue to be Implemented through the Housing Compliance Plan. The programs included are designed to significantly improve and upgrade the Community's housing stock and improve the overall quality of life of San Jacinto residents. r ROSENOW SPEVACEK GROUP,INC. PAGE 5 HMMft CMMMMA to the Frio Year InwbMentivan w The y$ RedeveiapmentAgency of the City of San Jacinto This section describes the Agency's production needs for the ten year planning period (2004-05 through 2013-14) and over the duration of the Redevelopment Plan. rum This Housing Compliance Plan takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoptions In order to determine affordable housing production needs. This Housing Compliance Plan Includes figures for existing residential construction and substantial rehabilitation, and projections for the number of additional dwelling units to be constructed or substantially rehabilitated during the next ten (10) years. The following sections define "new construction" and "substantially rehabilitated" as used in this Housing Compliance Plan, as well as the methodology used for collecting data on both existing and projected housing units. 9 New Construcfion. _ Agency staff and City Planning staff provided original construction statistics used in the 1994 Housing Compliance Plan. The Law does not provide a clear definition for new construction. For the purposes of this Housing Compliance Plan, new construction represents building permits issued for the construction of new dwelling units actually built since the respective adoption dates of the Project Areas until the 1994 Housing Compliance Plan preparation were counted and considered to be new construction dwelling units; therefore, these units would fall under the requirements for production of affordable housing within the Project Areas pursuant to Section 33413 of the Law. Projections of new units from 1994 through 2004 have been based upon the established projections and estimates contained in the 1994 Housing Compliance Plan. o Projections are affected by numerous complex factors such as: the general health of the local, regional, and national economy; employment levels; competition; practices and health institutions and inventory of existing housing. Based upon the recent economic trends, projection of the number of new units to be constructed over the next ten (10)years is difficult. Table 1 accounts for all units constructed through June of 2004, with Inclusionary unit numbers adjusted accordingly. o Future projections of new units have been based once again on draft General Plan and current development projects. Staff does not anticipate that the Project Areas will experience build out within the next ten (10) year time frame (2004/05 through 2008109) covered by this Housing Compliance Plan but will within the term of each of the Redevelopment ROSENOW SPEVACEK GROUP,INC. PAGE 6 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Plans. Projections of future units have been evenly distributed over the remaining life of each of the Project Areas. 9 Substantial Rehabilitation. The CRL, as amended by AB 1290, defines "substantial rehabilitation"as: ® "....rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value." 33413(b)(2)(A)(ly) As defined by the CRL"substantially rehabilitated dwelling units"means: a "On or after January 1, 2002, ......substantially rehabilitated dwelling units means all units substantially rehabilitated, with agency assistance. Prior to January 1, 2002 substantially rehabilitated dwelling units means multifamily rented dwelling units with three or more units or substantially rehabilitated regardless of whether there is agency assistance and, with agency assistance, single-family dwelling units with one or two units." 33413(b)(2)(A)(111) Uruft Consft=ted or Substantaffy Rehabillidated VAffidn the Project Areas Table 1 on the following page details by Project Area the number of units built or substantially rehabilitated within the Project Areas since adoption of the respective Redevelopment Plans. ROSENOW SPEVACEK GROUP,INC. PAGE 7 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY TABLE 1 UNITS CONSTRUCTED OR REHABILITATED Units through.December 1994 San Jacinto and Soboba Project Total Areas Units Constructed Aqency Developed Units 0 0 Privately Developed Units 854 854 SUBTOTAL 854 854 Units Substantially Rehabilitated TOTAL NEWIREHABILITATED UNITS 854 854 Units January 1.1995-December 1999 Substatiat Rehabilitation Jordan Street and Shaver 3 3 640 S.Shaver 10 10 New Construction Brown Street Habitat 3 3 Third Street 6 6 Dana Court 3 3 Sixth Street 6 6 Privately Developed Units 52 52 SUBTOTAL 83 83 Units J nuary 1 2000-June 2004 Substatial Rehabilitation 0 New Construction Habitat For Humanity 2 2 Privately Developed Units 198 198 SUBTOTAL 200 200 TOTAL NEWIREHABILITATED UNITS 1,1371 1 137 Aggregathm of AffordaMe Housing Units Anumgst AN Project Areas Section 33413(b)(2)(A)(v)provides that redevelopment agencies may"aggregate new or substantially rehabilitated dwelling units in one or more project areas if the agency, finds based upon substantial evidence, after a public hearing, that the aggregation will not cause or exacerbate racial, ethnic, or economic segregation." ROSENOW SPEVACEK GROUP.INC. PAGE 8 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY The Agency will consider action at the Public Hearing to consider for adoption this Housing Compliance Plan, it Is anticipated that based upon the evidence provided the Agency will find that the aggregation of its affordable housing obligations between its Project Areas, is of benefit to the Project Areas and the community, and that such aggregation will not cause or exacerbate racial, ethnic, or economic segregation. Project Section 33413(bX2)(A)(ii) provides that the Agency's obligations under Section 33413 may be met by providing affordable housing outside the project areas on a two-for-one basis. During the adoption process for each of the Project Areas, the Agency adopted appropriate resolutions that allow the Agency to expend its twenty percent(20%)housing set-aside money outside of each respective Project Area by making findings that it will be of benefit to each Project Area. Incluslonary Housing o Table 2 below details the Agency's inclusionary housing obligation status with updated total units constructed to date in the Project Areas, and those expected to be constructed from 2004 through the term expiration of each of the Redevelopment Plans. The inclusionary information is expected to be updated with the completion of the inclusionary Housing Ordinance and analysis. TABLE 2 Inclusionary Housing Obligation Status Private Development Total Number L Number of Very Low, VI-Units Units Project Area Developedl of Units �8o Required Rehabilitated Moderate Over Required Produced We of Over ire Units Plan of Plan We R ukred San Jacinto and Soboba Built from date of adopt throu h December 31 1994 Private/15% 854 128 51 77 SUBTOTAL 854 128 51 77 Substantially oCD Rehabilitated Prtvate/15% 0 0 0 0 New Construction Privatell5% 250 38 15 23 SUBTOTAL 250 38 15 23 uy Substantially v Q Rehabilitated Privatel15% 50 8 3 5 c ^ New ' a Construction Prtvate/15% 1500 225 90 135 SUBTOTAL 1550 233 93 140 Units Expected to be Built/Provided Over Remaining Project Term 2500 375 150 225 TOTAL UNITS OVER TERM OF PLAN 5154 773 309 464 ROSENOW SPEVACEK GROUP,INC. PAGE 9 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY The Agency is obligated under 33490 to ensure that 15% of non-Agency developed units (and 30% of all Agency developed units) are affordable to very low, low and moderate Income households,featuring covenants that extend to at least the duration of the Redevelopment Plan. To satisfy the Agency's production needs, units that are either developed or substantially rehabilitated must be covered by restrictive covenants. Housing units created or assisted after 2001 must carry 45-year covenants for single family units and 55-year affordability covenants on multifamily units z Units may be constructed inside or outside the Project Area, but units provided outside a project area count on a 2-for-1 basis. The Agency may also purchase 55-year affordability covenants on multifamily units. '45 years for ownership units or55 years for rental units. Prior to January 1,20DZaflordabiity covenants could be as little as the duration of the redevelopment plan to count for meeting a redevelopment agency's affordable housing production requirements. ROSENOW SPEVACEK GROUP,INC. PAGE 10 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY TABLE 3 LIST OF 1NCLUSIONARY HOUSING UNITS YYlthint $ U #Untta #Unib Terms Outmldo Protects Sneak Very Low Law #of Units Mod Total#otUnks of PA'a Fug down CCBR or 50% Credit Through 1994 Total Credit Total Credit Total Credit Total Credit Total Un Area- We 55 55 40 40 48 48 143 143.0 known wide Subtotal 55 55 40 40 48 48 143 143 1995&1996 Jordan and 3 10- Shaver 3 bdrm 1 3 3 0.0 year 640 S. Shaver(10 10 5 5 0.0 10- Units year rehab Brown 3 Street 3 bdrm 3 3 3 3.0 oar Full Third Street 3 bdrm 6 6 0.0 year Subtotal 3 3 8 0 6 D i7 3 1997 Dana Court 3 bdtm i i 1 3 0.0 par Subtotal 1 0 1 0 1 0 3 0 1998 Homebuyar 8 _ 6 0.0 10 Loans year Subtotal 0 0 0 0 6 0 6 0 1999 Hpmebuyer 10- Loans 1 5 0 6 0.0 year Subtotal 0 0 1 0 5 0 6 0 2000 Subtotal 0 0 0 0 1 0 0 1 0 0 20b1 Subtotal 0 0 0 0 0 0 0 0 2002 Old 3 bdim Street cord 1 0.5 1 1 0.5 55- year 500/0 Subtotal 1 0.5 0 0 0 0 1 0.5 0.5 2003 Sixth Street 3 bdrm 1 1 1 1.0 55-Ye r Full Subtotal 1 1 0 0 0 0 1 1 20" Subtotal 0 0 0 0 0 0 0 0 TOTAL B7 59,5 50 40 66 48 f77 147.5 ROSENCW SPEVACEK GROUP,INC. PAGE 11 TEN YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY As required by Section 33490 of the Law,Table 3 on the previous page presents an Inventory of the Agencys existing deed-restricted affordable units. To date, the Agency's efforts have yielded 177 affordable units. The Agency's inclusionary unit need has been credited with 147.5 restricted units. 3 Of the 147.5 credited restricted units provided, 59.5 affordable units are reserved for very low income, 40 are low income units and 48 are moderate Income units. Section 33413(b) of the Law requires that not less than 30% of any Agency- developed units C30% Units) or 15% of privately developed units C15010 Units) produced during the next five and ten year period be affordable to low and moderate income households. The Law also requires that 50% of the 30% Units and 40% of the 15% Units be specifically limited and affordable to very low income households. These affordable housing production requirements should be met during the next two 5-year periods, which ends on June 30 of fiscal year 2013-14. Based upon the forecast of housing construction presented earlier and inventory of affordable housing projects completed to date, Table 4 presents the computation of the Agencyrs affordable housing production requirement for the 10-year planning period, as well as the entire duration of each of the Redevelopment Plans. 'Pursuant to section 33413(bV)of the Law,the Agency may provide two tndusionary units outside the Project Areas foreach required restricted Variable uniL ROSENOW SPEVACEK GROUP,INC. PAGE 12 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY `.fe Fes^ +sniciing jo() f n fs n ys PwN ksuWnpulgum -, : oxs0 to a uolpnpnud n +i a v m r: uolpnpad o 0 in 0 00 m m — 0 m o to t0 O r '�N'i r '3 r coim h- m Povtfmol UOWMPcud sv � �*r"�� v n ' a N 4v Rv co m N m r AzsuOlanhnl }u� �annh to 3 a m y ami a vco I a iueww!nk r. 'PpYY(mol e I.uawwlnf»2l N N ° m v yg o N n a cav N keuol8nmi .y o � � � ✓..m M �� tq 0 CW1 O O O O IgWl mm m m to Mmm w oao ® � .M- �" u0i o O. Muaim co4B4eN lBllunlBQnSs uolpMsuoD"N co to m r o U,' 3uL) n " ? Z m m g Nth G J tl 0 g ry 4 } ' 9 :3 co m d z c 0 0 lzcc m m e3 m m C { e3 y-vm m, m m c o n , c ce c3 Q, s - o c o o !l no 4 a 4 Q c m c m > Q OTC 'D wdda ° CL m � � o o � �O r " m n $ a rs c m a n d a to o o c m w 2 3 F r Q a ^� r r r 4 Q. V/ G. Q a M F a � Q m t° n a` ►° ROSENOW SPEVACEK GROUP,INC. PAGE 13 FkxssbV Component to the Me Year Impkunenlafm Plan The Redevelopment Agency of the City of San Jacinto Past Inclusionary Unit Need The Agency has worked to produce the required number of inclusionary units over the last ten years,producing 177 units (with a credit of 147.5 units-see Table 3). However,-the Agency's prior ten-year assessment of required inclusionary units was substantially less than the update figure that appears in Table 4 above, This increase in the number of affordable units needed is the result of the housing boom that has occurred over the last five years with a concentration of home construction occurring over the three years and anticipated future development. Much of the new housing built in San Jacinto and the Project Areas, has been affordable to moderate income households, although they have not been covered by restrictive covenants. This accelerated building of new units has exacerbated the Agenc}r's inclusionary unit need. To the Agencys credit their efforts at creating affordable housing has focused on the very low income category, producing a total of 59.5 affordable very low income units for a total inclusionary credit of 59.5 very low income units. Therefore, as compared to the number of units produced during the planning period, the Agency will still need to implement additional affordable housing programs to meet the units needed for low and moderate income households to address the unit deficit. To addresses this additional unit need,282 inclusionary units must be developed. The Agency will utilize its Housing Rehabilitation need to provide approximately 50 units, however additional units will need to be provided by private development. The Agency will work with the City in the development and implementation of an Inclusionary Housing Ordinance that requires at least 15% of all new units be reserved and restricted as affordable to very low, low and moderate income persons or families. The City and Agency are working to complete the Inclusionary Housing Ordinance. It is anticipated that the Inclusionary Housing Ordinance will be enacted in 2005. The Agency will utilize its Housing Fund dollars to insure that these Incluslonary Units are reserved for the time periods required by the CRL. Current Five&Ten Year Period lnciuslonary Unit Neer! As detailed in Table 4, for the next five years (2004105 through 2008/09), the Agency must create or provide a total of 59 restricted very low, low and moderate affordable housing units. The ten year projected need(2004/05 through 2013/14) identified by this Compliance Plan is 107 restricted very low, low and moderate affordable housing units. Additionally, as required by Section 33413 (b)(4) of the Law, the Agency will address the unmet units need from the prior 10 year period during this 10 Year (2004105 -2013/14) Housing Compliance Plan period. ROSENOw SPEVACEK GROUP,INC. PAGE 14 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Therefore, during the Agency's 1st 5-Year period (2004105-08109) the Agency must create, preserve and restrict a total of 135 affordable units. The Agency's 10-year affordable dousing need is for a total of 282 restricted affordable units. During the next 5-Year period, the Agency intends to focus its efforts on creating and preserving very low Income affordable units. Since very low income units are the most difficult to create and reserve both logistically and financially, Agency staff Intends to its concentrate its efforts on these difficult units. it Is assumed that with the adoption of the City s InclusioriM Housing Ordinance,the Agency will be able to use this tool to achieve its needed low and moderate Income housing units. The Law requires that whenever housing units occupied by low and moderate income persons or households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated within the community. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement un& must be affordable to the same income categories (i.e. very low, tow, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Area. The Agency has participated in redevelopment projects that have resulted in the loss affordable units through. Table 5 presents a summary of the affordable housing units destroyed. TABLE 5 DWELLING UNITS DESTROYED OR REMOVED DIRECTLY OR INDIRECTLY BY THE AGENCY PRIOR TO 1999 Units Very Project Area` Destrojj Low Low Units Moderate Units Removed Units Jordan and Shaver Street 5 5 TOTAL 5 a 5 0 UNITS REMOVED FROM 1999 THROUGH 6-30-2004 Units Very Low Low Address Destroyed/ Income Income Moderate Units Removed Units Units 252 W Sixth Street 1 1 TOTAL 1 I 1 0 0 'Prior to January 1,2002,75%of al ragecmnent unRs nttrst be of the same h=e category as those daplaced. ROSENOW SPEVACEK GROUP,INC. PAGE 15 TEN YEARAFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Table 6 below, identifies those replacement units the Agency has created or reserved to meet its replacement housing obligations as summarized in Table 5. TABLE 6 INVENTORY OF REPLACEMENT HOUSING UNITS d of Unlft 7 otal at Very - Applied Bedroom Units Units Units Total of Demolished Housing Units 5 Unknown 5 Prior to 19" able I-All Replacement Units(under 75%rule San Jordan Street Jacinto 3 3 bedroom 3 San Brown Street Jacinto 3 3 bedroom 3 San Third Street Jacinto 6 3 bedroom 6 Table l-A Replacement Need Met 12 3 9 0 . Very Project 0 Of Units Total 0 Of Law- Lour- rate- Areai. ApplW Sedizxxns- Units Units unit Total of Demolished Housing Units From 1999 to 2002 able I-B Replacement Units at 100%of same income type or lower) San Sixth Street Jacinto 1 3 bedroom 1 Table I-B Replacement Need Met 1 1 0 0 REPS 4CMENT NEED OR CREW The Agency does not anticipate demolishing or removing any additional affordable dwelling units during this five and ten year planning period. ROSENOW SPEVACEK GROUP,INC. PAGE 16 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Low and Rioderate IrA=m Housing Fund One of the Agency's primary sources of revenues for housing program implementation Is the annual 20% housing set-aside deposits. These deposits reside in the Agency's Low and Moderate income Housing Fund (the"Housing Fund"). The Law requires that not less than 20% of all tax increment revenue allocated to the Agency must be used to increase, Improve, and preserve the community's supply of housing available, at affordable housing cost, to persons and families of very low, low, and moderate incomes. Other sources of Housing Fund revenues include interest earnings, loan repayments, federal HOME and HELP funds,and developer loan proceeds. Table 7 presents staffs forecast of Housing Fund revenues and debt service for this five year Implementation Plan period. Pursuant to the requirements of Section 33490, Table 7 identifies estimated amounts of available Housing Fund dollars expected to be deposited into the Housing Fund during each of the nerd five years. it also estimates the number of new, rehabilitated, or price-restricted units to be assisted as well as expenditures of Housing Fund monies during each of the five years. ROSENOW SPEVACEK GROUP,INC. PAGE 17 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY MENEM RProRofR!ev!eln-ul-arml-xpendiWmsandAffordableUnfts Total Component Year i Year 2 Year 3 Year 4 Year 5 5-Year 2W"5 2005-06 2006A7 2007-08 200MO Period Tau increment Set Aside Revenue $475,000 $484,500 $494,190 $504,074 $514,M $2471,919 Prior Year Fund 1,4W,313 W4,924 22,927 20,791 23,611 1,480,313 Land Sale Proceeds TOTAL $1 935 13 TOTAL AVAILABLE FUNDS $1,935,313 $99SA24 517,117 524,864 537,766 $3,932,232 e e Operations,Administration S Other Costs' $305,369 $241,497 $246,327 $251,253 $256,278 $1,300,744 TOTAL $305,389 $241,497 $246,327 $251,253 $256,278 $1,300,744 NET REVENUE AVAILABLE FOR PROJECTS $1629 924 $747 927 $270 791 $273 611 $281A88 $2 631 486 Housing t]evela»pment: »»» » _ _ __ __ - Single Farruly Retiabiktahon Program f700,000 $200,Oia0 *�225,ODD 6 "V200,005 _$1,550.DD0 Other Housing Programs(Rental Rehabidatioia) 400,000 - - - - $40D,000 Emergency Grant Program 25,000 25,0D0 25,000 25,000 25,000 125,000 _R_ental RehabSitation Prnram»» » »» - 500,000 $500�000 Subtotal _ w _. $1.125.000 $725,000 $250,000 $250,00D $225.U00 $2,E5,000 Housing Programs Other Costs �� » » NIA Subtotal TOTAL EXPENDITURES $1,125 000 $725,000 $250,000 $250,000» $225,000 $2,575 000 $504 24 $22,927 $20,791 $23,611 $56,488 $56,488 Notas: Administration for FY 20 4fW05 included budgets for advertising and the 14cusIng Elament as one time wpenditures, Number of Affordable Units Reserved/Total Number of Very Low Units Reserved Total $2,575,000 ROSENOW SPEVACEK GROUP,INC. PAGE 18 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY TargetIM of Housing Fund Expencilliluirm As set forth by Section 33333.4 of the Law, each agency shall expend, over the duration of the Housing Compliance Plan, the moneys In the Housing Fund in proportion to the community need,both In terms of the Income categories and the number of senior households assisted. i Pursuant to Section 33334.4(a) of the taw, Housing Fund dollars must be expended for very low and low income person in at least the same proportion to the City's fair share unit need as established by the Regional Housing Need Assessment(RHNA)for very low, law and moderate income units. The number of units in each Income category in the City's RHNA figures may be adjusted for units not assisted by the Agency that feature 55 or 45 year covenants. According to the City s Draft Housing Element, the current RHNA figures for the City cover the time period of 1998 through 2005. Table 8 indicates a Citywide need for 1,795 upper income units, 1,267 moderate Income units, 898 low Income units, and 1,379 very low income units. Table-04dftes the unit need by Income to arrive at the proportional spending minimums-imposed by the 2002 changes made in the Law. Based on these figures, the Agency's Housing Fund expenditures over the next 10 years must be at a minimum directed as follovvs: 26% must be allocated to projects or programs for very low Income persons and 17%for low Income persons. The remaining 57% of Housing Fund dollars may be allocated among very low, low and moderated income persons at the Agency's discretion. Table 8 City of San Jacinto Regional Housing Needs by Income Group(RHNA) 1998-2005 Income Housing Percent o Units oftiotai Very Low(0-50%County median income) 1,379 26% Low(50-80%County median income) 898 17% Moderate (80-120% County median income) 1,267 24% Upper over 120%County median income 1,795 34% Total Housing UnIW1 5 339 100% Source: City of San Jacinto 2004 Housing Element of the General Plan based upon SCAG's Regional Housing Needs Assessment. 1/Figures have been updated through 2001.Current RHNA time frame is January 11998 through June 30,2005. ROSENOW SPEVACEK GROUP,INC. PAGE 19 TEN YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY 'table 9 Housing Fund 10 Year Allocation of Resources Goal Proportional Allocation of Set-Aside Funds/Per Housing Element RHNA RemWng Income,' Fib i Wng Per to Total Very Low(0-50% County median income) 1,365 26% Low(50-80%County median Income) 0 17% Moderate(80-120%County median income) 2,368 57% Total Housigg Units 3 733 100% Family and Sedoir Housing Section 33334.4(b) requires that Housing Fund expenditures for senior housing also be In proportion to the community's population of that age, according to the most recent Census. According to the 2000 Census, 4,090 (17.2%)of the City$ 23,779 residents were over the age of 65. As such, not more than 17.2% of the Agency available housing fund revenues may be expended on senior housing projects. Table 10 City of San Jacinto 2004-05 through 2013114 Ten Year Housing Fund Restrictions on Over Allocation of Resources to Elderly Totaf.' _ Mum of Ali6=Moq of Horsing Persons`= Set-Patda Fund Under 65 Years of Age 19,689 82.8% 65 Years of A e or older 4,090 17.2% Total Persons 23,779 100.0% Table 11 presents a summary of the Agency+'s projected available dollar resources for the 10-year period with estimates of the proportional expenditures based upon the City's current RHNA needs (see Table 9). Additionally, pursuant to 33334.4 (b) of the Law, it is projected that over the 10 year period the Agency shall limit it expenditure for housing reserved for seniors (65 years of age or older) to 17.2%as shown In Table 11 below. ROSENOW SPEVACEK GROUP,INC. PAGE 2Q TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY 3=,,.-,fi �n�.�tF.z''t*�A�•..: s9 .ntr..,E .N, :,�ii�: Beginning Cash Balance $1,460,313 Tax Increment Set Aside Revenue $5,201,117 Interest Income Loans& Misc. TOTAL $6 661 430 TOTAL AVAILABLE FUNDS $6,661,430 Total Debt Service/Admin&Operations $2,661,000 NET REVENUE AVAILABLE FOR PROJECTS $4,000,430 26.0% Very Low Income $1,040,112 0.0% Low Income $0 74.o% Unrestricted(vea low,low and moderate $2,960 318 100.0% TOTAL PROJECTED FUNDS AVAILABLE $4,000,430 Senior Population Limitation 165 years and older % $688 074 Othw FurWM9 Sources for Housing Program All potential sources of funding will be actively pursued by the Agency in its efforts to Implement the Ctty's Draft Housing Element and Housing Activities. Key to this effort continues to be the establishment of relationships between public entities (especially the City) and the private sector. In recent years, San Jacinto's real estate market has improved due to the strong economy and increased demand for relatively affordable housing outside of Orange and Los Angeles County. San Jacinto's housing program recognizes that the"market"will drive certain aspects of producing affordable housing. Market factors have, and will continue to impact the amount of housing the Agency can effectuate given current revenues. Therefore, efforts to cooperate with other public entities and especially with the private sector,continues to be a priority. The goal being to produce, improve and protect the City's housing stock utilizing the Agency funds as leverage. In particular, the Community Development Department will actively pursue the rehabilitation of single family units and multifamily projects,as a vehicle to engage the private sector. ROSENOW SPEVACEK GROUP,INC. PAGE 21 TEN-YEAR AFFORDABLE HOUSING COMPUANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY City/Agencyodw Existing Agency funding requirements for the non-housing redevelopment funds Include outstanding bonded debt obligations; pass through payments to taxing agencies, required programs/projects, rent and administrative costs. Because of these heavy funding commitments, no revenue from the Agencys Redevelopment(non-housing) Fund will be available to assist with the implementation of affordable housing projects. FederallIftate RevenLo Sourc= Federal Programs The City of San Jacinto receives Community Development Block Grant funding from the County of Riverside Economic Development Agency. The City of San Jacinto uses these federal funds to leverage additional public and private Investment to fund activities that benefit very low to moderate income households. U Community Development Block Grant The Community Development Block Grant(CDBG)Program was established under the Housing and Community Development Act of 1974. The City of San Jacinto is a participating city under the Riverside County Economic Development Agency. Use of CDBG funds must primarily benefit low to moderate income households.The City uses CDBG program funds primarily for infrastructure and supportive services in low-income areas. The City's CDBG allocation from Riverside County in FY 2004-2005 was$235,000. 0 State Programs. The Agency may utilize available affordable housing resources administered by the State Department of Housing and Community Development. Potential State housing programs,which could be utilized,include: o CartCamia Hplryinv Finance Agency (CHFA} Mtrlltiitaamtly Housing Rental Program: Provides below market rate financing through the issuance of tax-exempt bonds to builders and developers of multi-family and eiderty rental housing. n CHFA Home Mortgage Ptrr base Procrram: CHFA sells tax- exempt bonds to make below market interest rate loans to first time homebuyers. The program operates through participating lenders who originate loans for CHFA purchase. o Caftmia Housina Rehabilitation Program Owner Occupant Component (CHPRO): Provides low interest loans for the rehabilitation of substandard homes owned and occupied by lower-income households. City and non-profits sponsor housing rehabilitation projects. o Ar1r�lBfamil� Affordable Housing Program (MAP): Provides permanent financing monies for the acquisition, rehabilitation, preservation and new construction of affordable rental housing. ROSENCMr SPEVACEK GROUP,INC. PAGE 22 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY ® Other Fjnenclal R�rces o Low Income Housing Tax Credit: As part of the 1986 Tax Reform Act, units rent limited at 60% of median Income and below are eligible to receive financial assistance under the tax credit program. The tax credit allocation process Is extremely competitive both on a statewide and regional basis. o Tax Exempt Multifamily Mortgage Revenges Bonds: Use of the Mortgage Revenue Bonds Is possible if one of the following criteria Is met: at least twenty percent (20%) of the completed units are rented to households at or below fifty percent (50%) of the area median gross income; or at least forty percent (40%) of the units are rented to households at or below sixty percent(60%) of the area median gross Income. Rents on tax credit units cannot exceed thirty percent(30%)of the maximum income limits based upon household size. ® Agency Financing. The Agency has the legal power to issue taxable or tax exempt bonds and notes for the development(including rehabilitation) of both single family and multifamily housing. Such said bonds would be Issued under established federal and state requirements. o Affordable Housing Program WP) Ora nt: AHP provides grants through Federal_Reserve_banks for the preservation and creation of affordable housing opportunities for families of very low and low income. Though the Agency anticipates that the following additional affordable housing projects will be undertaken, in order to meet long-term affordable housing needs for the Project Area and the community as a whole. These projects are described below. F Single?Fanft Housing RehabMitnUon Progrmn The Agency is involved in several single family rehabilitation programs geared towards major and minor repairs and renovations. The Housing Rehabilitation Program provides grants up to$30,000 to rehabilitate owner occupied single-family homes. The Program includes the provisions for forty-five(45)affordability covenants. ROSENOW SPEVACEK GROUP,INC. PAGE 23 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SANJAC€NTURECEVELQPMENTAGENCY The Emergency Grant Program provides $3,000 grants to income qualified homeowners for emergency repairs such as unsanitary plumbing, hazardous electrical, sewer line or septic failures, or other catastrophic damage to the home. Though this activity would not result in significant rehabilitation to assist in meeting long-tern affordable housing production goals,these efforts are critical to reducing the number of deteriorating andlor at-risk housing units In the City. Single-family Rehabilitation$2,550,0001Emergency Grant $250,000 Anticipated Expenditures During Planning Period..........................$2,80,,000 RenW Housing RehabMaMon Program The Agency is developing a Rental Housing Rehabilitation Program geared towards major repairs and renovations,primarily for multi-family housing projects. The Rental Housing Rehabilitation Program will provide loans to rehabilitate rental housing grits. The Program includes the provisions for fifty-five (55) affordability covenants. Anticipated Expenditures During Planning Period..........................$1,200,000 ProgramCode Entorcenvent As part of the City's Neighborhood Strategy, Code Enforcement staff uses proactive techniques to improve the physical condition of the City's homes and neighborhoods. The City may fund a portion of Code Enforcement activities, to address the removal of blight and Improve housing conditions within the Redevelopment Project Areas. Agency general fund expenditures are contributed to this project during this planning period.Addfiional Project funding will be provided by the City General Fund and Community Development Bloch Gant Funds. In ill Housing Program This program Is designed to develop quality single family detached hoes on small tract(1-10 acres) Infill parcels located within targeted areas in San Jacinto. The Agency will encourage private development of infiil housing within the Project Areas. No Agency expenditures are contributed to this project during this planning period ROSENOW SPEVACEK GROUP,INC. PAGE 24 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN ,` _._ __ __-_. . ......... . ..... .- SAN JACINTO REDEVELOPMENT AGENCY This program facilitates the acquisition, rehabilitation, and management of large- scale multifamily projects by private developers. (Ancillary to the Rental Housing Rehabilitation Program). No Agency expendhures are contributed to this project during this planning period DevellopnKmt of SecoM Units an SlInVe Family Loft The City will continue to Implement its Second Unit Ordinance, which allows for the construction of a second unit on lots with an eAsttng residential unit, if it meets the conditions outlined in the Ordinance. No Agency expenditures are contributed to this project during this planning period- The City allows an increase In density of at least 25%, plus an additional incentive(s)or equivalent financial Incentives,to housing developers who agree to construct at least: 20% of the units affordable to lower Income households, 10% of the units to very low Income households, or 50% of the units for senior citizen housing. No Agency expenditures are contributed to this project during this planning period Project funding will be provided by the Clay General Fund. Incl The City is in the process of developing an inclusionary housing ordinance that would require up to 15 percent of the total number of units constructed In all future housing projects larger than ten units or lots to be affordable to lower Income households. The ordinance would require that lower income units be constructed In similar locations as market rate housing. No Agency expenditures are contributed to this project during this planning period Project funding will be provided by the City Genera/Fund Fair HouslIng Fair Housing services are provided through Riverside County Economic Development Agency, No Agency expenditures are contributed to this project during this planning period i ROSENOW SPEVACEK GROUP,INC. PAGE 25 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY Affonfable Housing Geograp1hic The City's housing rehabilitation efforts are targeted to the San Jacinto Redevelopment Project Area, a portion of which includes census tracts that are identified as having concentrations of tow and moderate income families. These efforts are intended to eliminate slum and blight, encourage private investment into the community, and achieve a balanced community. The City program Is also available city-w€de,subject to funding availability. Section 33490 (aXC)(Iv) requires agencies to report the amounts of dousing Fund dollars uti€izes to assist affordable units over the previous Implementation Plan Period (prior 5 year period). The following table Identifies Housing Fund dollars expended on affordable housing projects since 1999. Please refer back to Table 3 for a break down of restricted units by income group and their term of restriction. PROJECT YEAR FUNDING Wrtgage Assistance Program 1999,2000 $6,000 Habitat For Humanity 1999/2000 $8,114 Valley Foundation for the Developmentally Disabled 19992000 $26,403 Qd 2ieStreet Sewer(Habitat) 200=001 $12,644 $74,524 Camino Los Banos Sewer 2001/2002 $15,980 Park Manor Property Acquisition 20W/2001 $614,958 Park Manor Demolition 2001/2002 $18,695 Salle Park Pool 2001/2002 $50,000 Habitat For Humanity—Sixth Street 2003C2004 $20,000 Housing Rehabilitation Program 200312004 PMMM DevekpW ROSENOW SPEVACEK GROUP,INC. PAGE 26 TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN SAN JACINTO REDEVELOPMENT AGENCY As this Housing Compliance flan focuses on providing affordable housing for lower inane households who are generally the most difficult segment of the community to house, it is consistent with the Draft Housing Elements goals of assisting In the development of a housing supply, which Is affordable to all segments of the community and conserving,improving,and rehabilitating exdsting housing to meet the future needs of San Jacinto residents. Both this Housing Compliance Plan and the Housing Element of San Jacinto state there is a definite need to assure an adequate supply of housing for the louver income segments of the community. Uke the Draft Housing Element, this Housing Compliance Plan emphasized the need to increase the supply of affordable housing units in the Project Area and citywide. The Housing Compliance Ilan is also consistent with the Draft Housing Element regarding what revenue sources would be available to subsidize affordable housing projects. Both made it dear that all viable revenue sources need to be utilized to assist with alleviating affordable housing problems in the City. A major focal point of the goals, policies, and objectives of the Draft Housing Element is to provide housing for all economic segments of the City, especially lower income families. Because the major goal of this Housing Compliance Plan is also to provide affordable housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing In the City presented in this Housing Compliance Plan are similar to plans and policies of the Draft Housing Element. Since the Housing Element is currently in a draft farm, it Is anticipated the Housing Compliance flan will be reviewed with the Final Housing Element and a determination of consistency made. ROSENOW SPEVACEK GROUP,INC. PAGE 27