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HomeMy WebLinkAboutResolution - RDA 12-02 STATE OF CALIFORNIA ) RESOLUTION NO. RDA 12-02 COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE SAN JACINTO REDEVELOPMENT AGENCY APPROVING AND ADOPTING A REPLACEMENT HOUSING PLAN IN CONJUNCTION WITH THE ACQUISITION OF CERTAIN PROPERTIES ON SOUTH STATE STREET AND KUHNS DRIVE, EAST FIRST STREET, AND WEST SEVENTH STREET WHEREAS, pursuant to the Community Redevelopment Law (Health & Saf. Code, § 33000 et seq.) ("CRL"), the City Council of the City of San Jacinto ("City") created the San Jacinto Redevelopment Agency ("Agency"); and WHEREAS, the Agency has been responsible for implementing the Redevelopment Plan for the San Jacinto Redevelopment Project covering certain properties within the City; and WHEREAS, in accordance with the CRL and the Redevelopment Plan, the Agency has acquired the following properties within the San Jacinto Redevelopment Project Area: 610, 620, 630, 640, 650, 665, 667, 670 and 680 (A, B, C, D) West Kuhns Drive; 1085, 1103, and 1107 South State Street; 599 East First Street; and 239 West Seventh Street ('Properties"); and WHEREAS, the acquisition of the Properties will lead to the destruction or removal of dwelling units from the low- and moderate-income housing market; and WHEREAS, in accordance with the CRL and the Redevelopment Plan, the Agency desires to develop a housing project consisting of approximately 100 units, of which 20 to 50 would be reserved for low- and moderate-income families located in the City of San Jacinto ("Housing Project'); and WHEREAS, CRL Sections 33413(a) and 33413.5 require redevelopment agencies to develop and adopt, by resolution, a replacement housing plan prior to executing any agreement which will result in the destruction or removal of dwelling units from the low and moderate income housing market; and WHEREAS, pursuant to CRL Sections 33413(a) and 33413.5, the Agency has prepared a replacement housing plan which is attached to this Resolution as Exhibit A and incorporated herein by reference ("Replacement Housing Plan") in connection with the acquisition of the Properties and the proposed Housing Project; and WHEREAS, the Replacement Housing Plan was made available for public review on January 27, 2012; and WHEREAS, the Agency has reviewed the Replacement Housing Plan and considered all comments and public testimony thereon, and determined that the Replacement Housing Plan complies with the requirements of the CRL and is in the best interest of the City and the health, safety and welfare of the City's citizens; and WHEREAS, the Agency has determined that the requirements of Article XXXIV of the California Constitution, which requires an election to be held in the City in the event of the acquisition, construction, development of a low-rent housing project, does not apply to the Properties or the Housing Project because: (i) the replacement of the housing on the Properties involves the replacement of previously existing housing currently occupied by low and moderate income households, including lower-income households as defined in CRL Section 50079.5; and (ii) Agency assistance is limited to monitoring construction and compliance with conditions of such assistance to the extent of: (1) carrying out routine governmental functions; (2) performing conventional activities of a lender; or (3) imposing statutorily authorized conditions accepted by the grantee of assistance; WHEREAS, the Agency has determined that the acquisition of the Properties and the Housing Project conforms to the City's general plan; and WHEREAS, in accordance with the California Environmental Quality Act (California Public Resources Code Section 21000, et seq.) ("CEQA") and State CEQA Guidelines, the Agency has determined approval of the Replacement Housing Plan is exempt from the requirements of CEQA and the State CEQA Guidelines pursuant to State CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that such approval will not result in a potentially significant physical impact on the environment; and WHEREAS, pursuant to the foregoing, the Agency has determined that a notice of exemption ("Notice of Exemption") for approval of the Replacement Housing Plan should be filed pursuant to CEQA, the State CEQA Guidelines and the Agency's Local CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Governing Board of the San Jacinto Redevelopment Agency ("Governing Board") as follows: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. CEQA Compliance. The amendment of the EOPS through this Resolution does not commit the Agency to any action that may have a significant effect on the environment. As a result, action does not constitute a project subject to the requirements of the California Environmental Quality Act. The Agency directs Agency staff to file a Notice of Exemption within five (5) days following adoption of this Resolution with the Clerk of the Board of Supervisors of the County of Riverside. Section 3. Approval of Replacement Housing Plan. The Agency hereby approves and adopts Replacement Housing Plan in substantially the form attached hereto as Exhibit A. Section 4. Other Actions. The Executive Director, or his or her designee, is hereby authorized and directed to implement and carry out the Replacement Housing Plan and to execute and approve any documents and take any other actions necessary or convenient for the proper accomplishment of the purposes of the Replacement Housing Plan. Section 5. Effective Date. This Resolution shall become effective upon its adoption. PASSED, APPROVED AND ADOPTED this 27th day of January, 2012. AYES: Bartel, Ledezma, Miller, Kotyuk NAYS: None ABSENT: Di Memmo ABSTAINED: None San Jacinto Redevelopment Agency ndrew . Kotyuk, Chairman ATTEST: Richard Miller, Agency Secretary CERTIFICATION I, Richard Miller, Secretary of the City of San Jacinto Redevelopment Agency, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the Governing Board of the City of San Jacinto Redevelopment Agency, at a special meeting thereof held on the 27th day of January, 2012, by the following vote of the Governing Board: AYES: Bartel, Ledezma, Miller, Kotyuk NAYS: None ABSENT: Di Memmo ABSTAINED: None WITNESS MY HAND AND OFFICIAL SEAL this 27th day of January 2012. ,�a� Ric c Miller, City Clerk City of San Jacinto State of California EXHIBIT A REPLACEMENT HOUSING PLAN [Attached behind this page] REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO 595 SOUTH SAN JACINTO AVENUE SAN JACINTO, CA 92583 REPLACEMENT HOUSING PLAN STATE STREET/KUHNS DRIVE PROPERTIES I� 239 WEST SEVENTH STREET 599 EAST FIRST STREET PSG January 25, 2012 ROSENOW SPEVACEK GROUP, INC. www.webrsg.com REPLACEMENT HOUSING PLAN STATE STREET/KUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO INTRODUCTION ............................................................................................................................. 1 ReplacementHousing Plan.............................................................................................................. 1 Replacement Housing Plan Requirements....................................................................................... 1 EXISTING CONDITIONS AND REDEVELOPMENT PROJECT ......................... ............................ 2 TheProperties.................................................................................................................................2 TheRedevelopment Project.............................................................................. .............................. 3 LOCATION, TIMING, AND FINANCING OF REPLACEMENT HOUSING.............. ......................... 3 ReplacementHousing Obligations................................................................................................... 3 Replacement Housing Development....................................... .............. ... .............. ......................4 Timetable for Replacement Housing Development................................... .............._ ..................... 4 Means of Financing the Replacement Housing Obligations..............................................................4 Article XXXIV of the California Constitution Requirements...............................................................4 RSC-1 REPLACEMENT HOUSING PLAN STATE STREETIKUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO INTRODUCTION The Redevelopment Agency of the City of San Jacinto ("Agency") has acquired the following properties within the Merged San Jacinto Redevelopment Project Area: • 610, 620, 630, 640, 650, 665, 667, 670, and 680(A,B,C,D)West Kuhns Drive; • 1085, 1103, and 1107 South State Street; 4 239 West Seventh Street; and • 599 East First Street. The properties listed above ("Properties") contained a total of 17 affordable rental units. The Properties consist of 15 multi-family units and two (2) single family units. All of the 17 units are currently unoccupied, and the tenants have been relocated by the Agency pursuant to State legal requirements. One single family residence (239 West Seventh Street) was previously vacant and demolished by the Agency and is assumed to have been available to very low income households. Thirteen (13) of the units were previously being rented to and occupied by persons or families of extremely low, very low, and low income households. The remaining four (4) units were unoccupied but are assumed to be available to persons or families of very low and low income households based on the rents of the other units at the same property or in the general area. Due to the California Supreme Court decision on December 29, 2011, pertaining to the validity of Assembly Bills 1x26 and 1x27, redevelopment agencies will be dissolved as of February 1, 2012. On January 9, 2012, the City Council of the City of San Jacinto elected to become the successor agency to the Agency, as provided in Health and Safety Code Sections 341710) and 34173. The housing functions and assets of the Agency are anticipated to be transferred to the City's Housing Authority prior to February 1, 2012. After this time, it is anticipated that these units will be demolished and removed from the housing market. Replacement Housing Plan This document is the Replacement Housing Plan ("Plan") for the Properties and serves as the baseline for compliance with Health & Safety Code Section 33413(a) and Section 33413(f) of California Community Redevelopment Law, Health and Safety Code Section 33000 et seq. ("Law'). Replacement housing obligations are tied to formulas for matching lost units according to income category and total bedroom count on a one-for-one basis. Replacement housing units must be(1) within the Agency's territorial jurisdiction, (2) in standard condition, and (3) for rental units, designed to remain affordable to low and moderate income households for no less than 55 years. Replacement Housing Plan Requirements Pursuant to the Law, when an agency assists a project that causes the removal or displacement of affordable housing units, it is required to provide for the replacement of those units. Specifically, the Agency must provide an equal number of replacement dwelling units that have an equal or greater number of bedrooms as the displaced or removed units. In addition, for rental units, the replacement dwellings must be available at a rent affordable to, and occupied by, persons in the same or lower income category as the displaced units. The Agency must replace the units within four years of their removal or displacement. The thirteen (13) occupied units at the Properties were occupied by extremely low, very low, or low income rents, as shown in Table 1.' For the purposes of this Plan, it is assumed that the four (4) vacant units would be rented at equivalent rents as those previously occupied or similar to those rents in the general area. Therefore, as it is anticipated that the 17 rental units affordable to very low, low, and moderate income r households will be removed, the Law requires the Agency to prepare this Plan that details how the 17 rental 1 Based upon the income limits set forth by the Department of Housing and Community Development O RSL 1 REPLACEMENT HOUSING PLAN STATE STREET/KUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO units will be replaced within a four-year period. Section 33413.5 of the Law requires that this Plan address the following: • The general location of housing to be rehabilitated, developed, or constructed to serve as the replacement units for the 17 rental units; ■ The number of dwelling units housing persons and families of extremely low, very low, low, or moderate income planned for construction or rehabilitation; • The timetable for meeting the replacement housing plan's relocation, rehabilitation, and replacement housing obligations; • A description of the means of financing such rehabilitation, development or construction; and • A finding that the replacement housing does or will not require voter approval pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. EXISTING CONDITIONS AND REDEVELOPMENT PROJECT This section presents the data that was used in developing this Plan. It details the type of units that will be removed and the household income levels the units previously served. The Properties The Properties are currently improved with 17 multi-family and single family rental units. Details regarding these properties are presented below. • State Street/Kuhns Drive — the Agency entered into escrow to purchase these properties in September 2010. The properties are located on Assessor Parcel Numbers 435-211-001 and 435- 211-003. These properties represent a total lot square footage of approximately 154,2032 . • 239 West Seventh Street — the Agency closed escrow on this property in October 2008. The Assessor Parcel Number is 437-094-006 and the lot square footage is 7,840. ■ 599 East First Street — the Agency closed escrow on this property in June 2011. The Assessor Parcel Number is 434-292-016 and the lot square footage is approximately 40,075 square feet.3 The income categories for 12 of the 15 units at the State Street/Kuhns Drive property were provided in the relocation documentation prepared by Overland, Pacific and Cutler, Inc. It is assumed, based upon asking rents for these 12 units, that the income categories for the remaining 3 units would fall in under the very low and low income categories. The total number of units by bedroom and affordability count is contained on Table 1 on the following page. 2 Obtained parcels and square footages from tax roll data available through First American CoreLogic, Inc. -MetroScan 3 Obtained parcels and square footages from tax roll data available through First American CoreLogic, Inc. -MetroScan O - -' 2 REPLACEMENT HOUSING PLAN STATE STREETIKUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO Units To Be Removed Table 1 Extremely Units Low Very Low Low Moderate Total State Street/Kuhns Drive 1 11 3 0 15 239 West Seventh Street* 0 1 0 0 1 599 East First Street 0 1 0 0 1 Total 1 13 31 0 17 Bedrooms State Street/Kuhns Drive 3 15 5 0 23 239 West Seventh Street 0 2 0 0 2 599 East First Street 0 0 2 0 2 Total 31 171 7 01 27 ' Unit has been removed. The Redevelopment Protect The Agency originally acquired the Properties for the purpose of implementing redevelopment activities within the San Jacinto Redevelopment Project Area. Details regarding a specific development project are not available at this time. With the passage of AB 1x26 and AB 1x27 in 2011, and the subsequent decision by the California Supreme Court on December 29, 2011, all redevelopment agencies will cease to exist in the State of California as of February 1, 2012. Given these events, it is not known at this time what project will occur on the Properties. LOCATION, TIMING, AND FINANCING OF REPLACEMENT HOUSING The Agency had aggressively implemented affordable housing mandates prescribed by the Law. To date, the Agency had secured 282 units with affordability covenants according to the Agency's 2009-10 through 2013- 14 Five-Year Implementation Plan. It is anticipated that housing functions and assets will be assumed by the City's Housing Authority. It is anticipated that the Housing Authority will continue to pursue a planned residential development project that the Agency had been in preliminary discussions to implement. This development would occur on 4.92 acres of land once owned by the Agency and may consist of 100 multi- family units, of which 20% to 50% are anticipated to be affordable to persons and families of very low, low and moderate income. This property is located on the south side of Seventh Street between Donna Way and Mountain Avenue, just outside of the San Jacinto Merged Project Area. The Assessor Parcel Numbers associated with this property include the following: a 433-180-029 a 433-180-031 a 433-180-032 a 433-180-034 This development would allow the replacement housing obligations generated by removal of units at the Properties to be met. Replacement Housing Obligations Pursuant to the Law, the Agency must replace 100% of the number of destroyed or removed affordable units at an affordable housing cost to persons in the same or lower income category as those of the persons O RSG 3 REPLACEMENT HOUSING PLAN STATE STREETIKUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO displaced. However, this replacement housing obligation may be satisfied with a fewer number of units if the replacement program meets both of the following criteria: (1) the total number of bedrooms in the replacement units equals or exceeds the number of bedrooms in the destroyed or removed units, and (2) the replacement units are affordable to the same income categories as those persons displaced from the destroyed or removed units. It is anticipated that the City's Housing Authority will be implementing these provisions to satisfy the replacement housing obligation, thereby generating an equal amount of replacement bedrooms to those removed, at income levels at or lower than the households that were displaced and relocated. Replacement Housing Development As discussed above, the Agency had been in discussions with an affordable housing developer to construct a multi-family project on 4.92 acres of Agency-owned land. The project would consist of approximately 100 units, with a portion of these units available to very low and low income households in order to fulfill the replacement housing requirement. As mentioned previously, the City's Housing Authority will assume the Agency's housing functions and assets, and is anticipated to implement this development project. Table 2 on the following page presents the replacement housing obligations. Replacement Units Table 2 Units Bedrooms Extremely Very Low Low Moderate Extremely Very Low Low Moderate Total Low Income Income Income Income Total Low Income Income Income Income Units Removed State Street/Kuhns Drive 15 1 11 3 0 23 3 15 5 0 239 West Seventh Street 1 0 1 0 0 2 0 1 0 0 599 East First Street 1 0 0 1 0 2 0 0 2 0 Total 17 1 12 4 0 27 3 17 7 0 Replacement Units 17 1 12 4 0 27 3 17 7 0 Total 17 1 12 4 0 27 3 17 7 0 Timetable for Replacement Housing Development Given AB 1x 26 and the transfer of the Agency's housing functions and assets to the City's Housing Authority, it is hoped that this replacement housing project can proceed with the oversight of the Housing Authority within the required four-year time frame. Means of Financing the Replacement Housing Obligations It is anticipated that the replacement housing obligations will be funded through the City's Housing Authority. Article XXXIV of the California Constitution Reauirements Article XXXIV of the California Constitution provides that no low-rent housing project may be developed, constructed, or acquired by a state public body without the majority of voter approval. Pursuant to the Section 37001.5 of the Public Housing Election Implementation Law, Health and Safety Code Section 37000 et seq. ("PHEIL"), which implements and governs when a rental housing project must comply with Article XXXIV, the words "developed, constructed, or acquired" do not apply, and therefore no voter approval is required when a R S C 4 REPLACEMENT HOUSING PLAN STATE STREETIKUHNS DRIVE PROPERTIES 239 WEST SEVENTH STREET 599 EAST FIRST STREET REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO State public body provides assistance to a low-rent housing project and monitor construction or rehabilitation of a project while complying with the following conditions of such assistance to the extent of: Carrying out routine governmental functions. Performing conventional activities of a lender. Imposing constitutionally mandated or statutorily authorized conditions accepted by the grantee of assistance. Additionally, Section 37001 of the PHEIL provides that a "low-rent housing project" does not include any development of residential dwellings or living accommodations that consist of the rehabilitation, replacement, improvement or reconstruction of a previously existing low rent project, or residential projects previously or currently occupied by low income households. Based on the provisions in the PHIEL, including those cited above, the replacement housing to be developed and constructed pursuant to this Plan does not require approval of the voters of the City of San Jacinto under Article XXXIV The housing units lost will be replaced, and by providing assistance to these replacement housing projects and monitoring their construction or rehabilitation, as proposed in this Plan, the City's housing authority will be complying with conditions that are imposed by the Law and thereby carrying out routine governmental functions. O RSv 5