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Home My WebLink About403 RDA_CCv0001.pdf RESOLUTION NO. 403 RESOLUTION OF THE REDLANDS REDEVELOPMENT AGENCY APPROVING A REPLACEMENT HOUSING PLAN FOR 607 W. STUART STREET — PROMENADE RETAIL CENTER PROJECT WHEREAS, Health and Safety Code Section 33413.5 requires that the Agency shall adopt by resolution a replacement housing plan not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low- and moderate-income housing market; and WHEREAS, the Redevelopment Agency of the City of the City of Redlands (the "Agency") intends to enter into an agreement with General Growth Partners, Inc., a Delaware Limited Partnership,for the purpose of facilitating the development of a proposed Promenade Retail Center; and WHEREAS, the construction of the Promenade Retail Center would lead to the removal of a single family dwelling unit at 607 W. Stuart Street; and WHEREAS, the Agency has determined that the dwelling unit at 607 W. Stuart Street is currently unoccupied, having been vacant and boarded up for a period of over one year; and WHEREAS, the Agency has prepared a Replacement Housing Plan for 607 W. Stuart Street in conformance with Health and Safety Code Section 33413.5. NOW, THEREFORE, IT IS HEREBY RESOLVED by the Redevelopment Agency of the City of Redlands as follows: SECTION 1: The Agency finds the "Replacement Housing Plan - 607 W. Stuart Street — Promenade Retail Center Project" to be adequate for providing replacement housing within the territorial jurisdiction of the Redlands Redevelopment Agency in accordance with Health and Safety Code Section 33413.5. SECTION 2: Pursuant to California Health and Safety Code Section 33413.5, the Agency hereby adopts that document entitled "Replacement Housing Plan—607 W. Stuart Street — Promenade Retail Center Project," a true and correct copy of which is attached hereto and marked Exhibit "A" and incorporated herein by this reference as the Replacement Housing Plan. SECTION 3: The Secretary of the Agency shall certify to the adoption of this resolution. ADOPTED, SIGNED AND APPROVED on this 1St day of August, 2006. J Harrison,`Chairperson fittest: LorrPoyzer, A,oby)Secretary I, Borrie Poyzer, Secretary of the Redevelopment Agency of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the Redevelopment Agency at a regular meeting thereof held on the 1 st day of August, 2006, by the following vote: AYES: Members Gilbreath, Gallagher, Aguilar; Chairperson Harrison NOES: None ABSENT: Member Gil ABSTAIN: None Lorrieoyzer, Secrar' Adopted: August 1, 2006 Resolution No. 403 Replacement Housing Plan for 607 W. Stuart Street (Promenade Retail Center Project) REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS GRC REDEVELOPMENT CQN(SULTANT(S 71 .Parker Street 6uite 7400 Cir--"e,CA T.W t ,. r TABLE OF CONTENTS 1.0 Introduction.....................................................................1 2.0 Definitions........................................................................3 3.0 Replacement Housing Requirements..............................7 4.0 Project Description ..........................................................8 5.0 Residential Units to be Removed and Replaced .............9 6.0 General Location of Housing to be Rehabilitated, Developed or Constructed..............................................10 7.0 Financing of Replacement Housing ..............................11 8.0 Time Table for Development of Replacement Housing..........................................................................13 9.0 Compliance with Article XXXIV of the California Constitution ..14 10.0 Provision for Public Review and Comment...................15 ,z G12C Redevelopment Agency of the City of Redlands 1 .0 INTRODUCTION This Replacement Housing Plan (the "Replacement Housing Plan") for 607 W. Stuart Street ("Subject Property") has been prepared pursuant to Section 33413.5 of the California Health and Safety Code for the Redevelopment Agency of the City of Redlands (the "Agency"). Section 33413.5 requires that, not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low- and moderate-income housing market, the Agency shall adopt by resolution a replacement housing plan. In addition, Section 33413.5 mandates that the Replacement Housing Plan shall include the following components: 0 The number of dwelling units housing persons and families of low- or moderate-income to be removed and replaced by construction or rehabilitation; • The general location of housing to be rehabilitated, developed or constructed pursuant to Section 33413; # An adequate means of financing such rehabilitation, development, or construction; 0 The timetable for meeting the Replacement Housing Plan's relocation, rehabilitation, and replacement housing objectives; and GUC Redevelopment Agency of the City of Redlands I I WIN Replacement Housing Plan for 607 W.Stuart Street • A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. IM G�2C Redevelopment Agency of the City of Redlands 2.0 DEFINITIONS Very-Low-Income Household Persons and families whose gross incomes do not exceed 50 percent of the area median income adjusted for family size. Low-Income Household Persons and families whose gross incomes exceed 50 percent but do not exceed 80 percent of the area median income adjusted for family size. Moderate-Income Household Persons and families whose gross incomes exceed 80 percent but do not exceed 120 percent of the area median income adjusted for family size. Affordable Owner-Occupied Housing Cost Section 50052.5 of the California Health and Safety Code states that for any owner-occupied housing, "affordable housing costs" shall not exceed the following: (1) For very-low-income households the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (2) For lower-income households whose gross incomes exceed the maximum income for very- low income households and do not exceed 70 f GSC Redevelopment Agency of the City of Redlands Replacement Housing Plan for 607 W Stuart Street percent of the area median income adjusted for family size, the product of 30 percent times 70 percent of the area median income adjusted for family size. In addition, for any lower-income household that has a gross income that equals or exceeds 70 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 30 percent of the gross income of the household. (3) For moderate-income households whose gross incomes exceed the maximum income for lower- income households and do not exceed 110 percent of the area median income adjusted for family size, the product of 35 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for any moderate-income household that has a gross income that equals or exceeds 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 35 percent of the gross income of the household. Affordable Renter-Occupied Housing Cost Section 50053 of the California Health and Safety code states that for any rental housing development, "affordable rent," including a reasonable utility allowance, shall not exceed: (1) For very-low-income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (2) For lower-income households whose gross incomes exceed the maximum income for very- low-income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower-income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable Redevelopment Agency of the City of Redlands Replacement Housing Plan for 607 W Stuart Street rent be established at a level not to exceed 30 percent of gross income of the household. (3) For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. Replacement Dwelling Unit For this Replacement Housing Plan, "Replacement Dwelling Unit" means a dwelling unit developed or constructed within the territorial jurisdiction of the Redevelopment Agency pursuant to §33413 in replacement of a dwelling unit destroyed or removed from the low- and moderate-income housing market by the Agency, or subject to a written agreement with the Agency where financial assistance has been provided by the Agency, and which is decent, safe, and sanitary, contains at least the same number of bedrooms and other living areas as the dwelling unit destroyed or removed, and is available at affordable housing cost to low- and moderate-income households. NO GQC Redevelopment Agency of the City of Redlands 5 7101 3.0 REPLACEMENT HOUSING REQUIREMENTS Section 33413(a) of the California Health and Safety Code requires that whenever low- or moderate-income household dwelling units are destroyed or removed from the housing market as part of a project which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low- or moderate-income, an equal number of replacement dwelling units which have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the Agency. When dwelling units are destroyed or removed on or after January 1, 2002, 100 percent of the replacement dwelling units shall be available at affordable housing cost to persons in the same or lower income category (low, very low, or moderate), as the persons displaced from those destroyed or removed units. Section 33413(f) of the California Health and Safety Code modifies these requirements as follows: Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: Redevelopment Agency of the City of Redlands GQC1 Replacement Housing Plan for 607 W Stuart Street (1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom. (2) The replacement units are affordable to the same income level of households as the destroyed or removed units. GQCJ KIM!, Redevelopment Agency of the City of Redlands IN 4.0 PROJECT DESCRIPTION The Subject Property was a former rental property, and has remained vacant and boarded-up for over a year. The property is being purchased by a developer for the new Promenade Retail Center Project ('Project"). The assemblage of property and all new construction will be in accordance with the City of Redlands General Plan, the Redlands Redevelopment Project Area Plan, and current City zoning requirements. low, GIZC Redevelopment Agency of the City of Redlands 5.0 RESIDENTIAL UNITS TO BE REMOVED AND REPLACED The Subject Property consists of an 800 s.f., two- bedroom residential unit. The property was previously a rental unit, but has remained boarded-up and vacant for approximately one year. Although income verification of the previous tenants was not possible, the Agency has concluded, given the location, size, and condition of this property, that the property has been rented to a Very Low-Income household. This unit will be removed for the Project and replaced in kind per the California Health and Safety Code. Redevelopment Agency of the City of Redlands 9 6.0 GENERAL LOCATION OF HOUSING TO BE REHABILITATED, DEVELOPED OR CONSTRUCTED All of the Replacement Dwelling Units as defined in California Health and Safety Code Section 33411.2, to be developed or caused to be developed by the Agency because of the Promenade Retail Center Project shall be located within the territorial jurisdiction of the Agency. GQCJ Redevelopment Agency of the City of Redlands 7.0 FINANCING OF REPLACEMENT HOUSING In accordance with Health and Safety Code §33334.2, the Agency sets aside 20% of its annual tax increment m� into its Housing Fund for the purpose of increasing, improving, and preserving the community's supply of low- and moderate-income housing. Current Redlands Redevelopment Agency programs funded by set-aside tax increment revenues include the following: • First-Time Home Buyer's Down Payment Assistance Program; • Housing Rehabilitation Loan and/or Grant Program; • Housing Emergency Rehabilitation Grant Program In addition, the creation or rehabilitation of replacement dwelling units can be financed through a variety of means other than set-aside tax increment revenues, including: • Affordable Housing In-Lieu Fees • State of California Cal Home Program funds; • State of California HELP Program funds; • State of California CHFA Tax-Exempt Mortgage Revenue Bond Program funds; • Federal HOME Program Funds; • Mortgage Credit Certificate Program; and • Conventional bank loans GQC Redevelopment Agency of the City of Redlands 11 Replacement Housing Plan for 607 W Stuart Street As is often the case, the creation of replacement housing depends on a number of financing sources, and the Agency will endeavor assist in the creation of the required Replacement Housing as necessary. 70 R I EN MT GPCj MC Redevelopment Agency of the City of Redlands 12 II!' 8.0 TIME TABLE FOR DEVELOPMENT OF REPLACEMENT HOUSING Within four years of the destruction or removal of any low or moderate income housing, the Agency will rehabilitate, develop or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to low or moderate income families replacement dwellings for those units lost as a result of the Project's implementation. In no event will replacement housing be available later than four years from the adoption of this Housing Replacement Plan. IN 131 GQCJ I Redevelopment Agency of the C4 of Redlands FOR, SO 9.0 COMPLIANCE WITH ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION Article XXXIV of the California Constitution requires voter approval of all low-rent housing projects that are developed, constructed, or acquired by a public entity. Under Section 37001 of the California Health and Safety Code, the Project is not a "low-rent housing project" as defined in Section 2 of Article XXXIV of the California Constitution because the housing units are being developed to replace dwelling units previously or currently occupied by lower-income households. Therefore, the proposed replacement housing does not require the approval of voters pursuant to Article XXXIV of the California Constitution. GICI Redevelopment Agency of the City of Redlands WIN, 10.0 PROVISION FOR PUBLIC REVIEW AND COMMENT In accordance with Section 33413.5, a draft of the Replacement Housing Plan has been made available for review and comment by the general public and other public agencies. In addition, this Plan has been reviewed by the Project Area Committee at its meeting on July 11, 2006, in accordance with Section 33385 of the California Health & Safety Code. LW 01 Redevelopment Agency of the City of Redlands 15