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HomeMy WebLinkAbout401 RDA_CCv0001.pdf RESOLUTION NO. 401 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS APPROVING AND ADOPTING THE FISCAL YEAR 2005-2009 FIVE-YEAR REDEVELOPMENT IMPLEMENTATION PLAN AND TEN-YEAR HOUSING COMPLIANCE PLAN FOR THE REDLANDS REDEVELOPMENT PROJECT WHEREAS, California Health and Safety Code Subsection 33490(x)(1) provides that on or before December 31, 1994, and each five years thereafter, each redevelopment agency that has adopted a redevelopment plan prior to December 31, 1993, shall adopt, after a public hearing, an implementation plan that shall contain the specific goals and objectives of the agency for the project area, 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 area, and how the requirements of California Health and Safety Code Sections 33334.2, 33334.4, 33334.6, and 33413 will be implemented; and WHEREAS, the Redevelopment Plan (the "Redevelopment Plan") for the Redlands Redevelopment Project (the "Project") was adopted on September 26, 1972, pursuant to Ordinance No. 1500 of the Redlands City Council (the "City Council'); and WHEREAS, the Redevelopment Plan for the Project was subsequently amended in 1976, 1996, 2000 and 2003, pursuant to City Council Ordinance Nos. 1575, 2336, 2464 and 2556, respectively; and WHEREAS, the Redevelopment Agency of the City of Redlands (the "Agency") did prepare a draft document entitled "Five-Year Redevelopment Implementation Plan and Ten- Year Housing Compliance Plan" (the "Implementation Plan"); and WHEREAS, California Health and Safety Code Subsection 33490(d) provides that notice of the public hearing on the Implementation Plan shall be published pursuant to Section 6063 of the Government Code and posted in at least four permanent places within the Project Area for a period of three weeks, and that publication and posting shall be completed not less than ten days prior to the date set for hearing; and WHEREAS, the Agency did cause to be published a notice of public hearing on July 7, 2006, July 14, 2006, and July 21, 2006, regarding the Implementation Plan, and did past a copy of said notice of public hearing in four places in the Project Area; and WHEREAS, on August 1, 2006, the Agency conducted and concluded the above- referenced duly noticed public hearing; and WHEREAS, adoption of the Implementation Plan does not constitute an approval of any specific program, project or expenditure and does not constitute a project within the meaning of Section 21000 of the Public Resources Code requiring environmental documentation pursuant to Section 33490 of the Health & Safety Code, and is also considered to be statutorily exempt under Section 15262 of the California Environmental Quality Act Guidelines; and WHEREAS, the Implementation Plan contains all sections and subject matter required by California Health and Safety Code Section 33490. NOW, THEREFORE, the Redevelopment Agency of the City of Redlands hereby resolves as follows: SECTION 1. Pursuant to California Health and Safety Code Section 33490, the Agency hereby adopts that document entitled "Five-Year Redevelopment Implementation Plan and Ten- Year Housing Compliance Plan," a true and correct copy of which is attached hereto and marked Exhibit "A" and incorporated herein by this reference as the Implementation Plan for the Project area. SECTION 2. The Secretary of the Agency shall certify to the adoption of this resolution. PASSED, APPROVED AND ADOPTED on this 1s' day of August, 2006. /�la�WILII Jp(i Harrison, Chairperson Attest: Lome Rbyzer, Agency cr ta ry - 2 - 1, Lorrie 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 Lorrie P, Secr Redevelopment Agenic / { � Y l Y v a I 1 x � L T. 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'"�.�,",�} �� .� �_�•: '��.. .,�. �, '-�� �^"`"''.,`'�'� .. ��.. } • _wiz. t� '�`i' ,: - 4 t-, `�;`J".. ,crn:. r� �' � �.� '�`.�"°� j:` ,.xis a� yir�s .x„•�' � �- _z�,' z�*`""�rs r"'„ � � Fs'�� �. a �.,,.:` ,fid,: ,� v��^.. �' ��w•� �; p :����. ` ,>„ `�.�r.='�.x+^,',.�' ��, �,""5`,m v� �,� �� rs�="'�: r:: `>s�=`�",� �,„�2�,': u r� =', a- ,e":u. ,� �� �.,. i'..�"•^��°i'e s �' �. �-.u#'” t"�„s�`a' ,.w, ��t � ��� x..:.a - �a,� #,x.,rsr'��� y-��,�;:. '�.., t �.,`� ,mss"' .,sr. ^.F'� r r z r v r J r J v s \ August 2, 2006 Adopted: August 1, 2006 Resolution No, 401 Five-Year Implementation Plan and Ten-Year Housing Compliance Plan RFDFVFI-,OP,%AFNT AGENCY OF THE CITY OF RFDLANDS GQ_ Cl 32 "S REDEVELOPMENT AGENCY BOARD OF DIRECTORS Jon Harrison. Chairperson Pat Gilbreath, Vice Chairperson Gilbert Gil, Board Member Mike Gallagher, Board Member Pete Aguilar, Board Member REDEVELOPMENT AGENCY STAFF John Davidson, Executive Director Don Gee. Redevelopment Director Barbara DeMayo, Redevelopment Project Manager Corrie Poyzer, Agency Secretary Mike Reynolds, Agency Treasurer Daniel J. McHugh, Agency Attorney Tina Kundig, Finance Director i i i 3 [� €!E TABLE OF urmuwu-u- n��u ����/ � nm-/� u ^� � Preface.......................................................................................I 1.0 Introduction.....................................................................3 I.l Intent nfthe Implementation Plan...-- ......... ......8 1.2 ImplementationPlau Requirements--------.4 1.3 Public Participation inthe Implementation Plan Process..................................................— ......___..._7 2.0 Project Area B ,...,...................~,,..^~..~...,~.^.~9 2.1 Blighting Conditions.............. ...... ....... ...................S 2.2 Current Conditions....... .......—........ -- ........... ..Il 2.3 Goals and Objectives.... ... ............ ............. .....—I3 2.4 Agency Activities......................... ......-- ........ .....l5 3.0 Five-Year Implementation Plan Program........,......19 3.1 Economic and Community Development ..... — ... .2O 3�2 Capital Improvements---------------24 3.3 Development Project Review..... ------- .......27 3.4 Program Changes...— .... ...... -----.................2B 3.5 Fundinc, Sources .... ........................................ ......28 zn 4.0 Housing Production Program....................................31 4] Housing Production Requirements..........................32 4.2 Past and Projected Housing Production..................38 4.8 Housing Goals and Objectives--.--------38 4.4 Projected Housing Needs.........................................39 4.5 Housing Production Plan.........................................40 4.8 Housing Sat-Aside —......... .... .... ......42 47 Relationship to Housing Element and Regional HousingNeeds-------------------48 4.8 Agency Monitoring Process....... ----- .............4A 4.9 Demographics. ..... ......... ............ -----'5O Redevelopment Implementation Plan,Housing Compliance Plan 5.0 Administration of the Implementation Plan...........51 5.1 Plan Review ............. ......_....... ..._......_..._............51 5.2 Plan Amendment................. ...... ....... ....__....51 5.3 Financial Commitments Subject to Available Funds................................................. ....... ..............52 5.4 Redevelopment Plan Controls .................................52 LIST OF TABLES 1 Blighting Characteristics in the Project Area Matrix.......................................... ......... ....... ........12 2. Goals Achievement/Blight Elimination Matrix .........26 3. Cash Flow Summary ...._............ ..............................30 4. Housing Activity Production 2000-2005.....................36 5 Replacement Housing Obligations 2005-2010 ....__.37 6. Projected City-Wide Housing Needs ........ 7. Affordable Housing Production Needs 2005-2015 .....40 8, Projected Low and Moderate Income Housing Fund Deposits.................... ........... ......45 LIST OF FIGURES 1. Project Area Map.......... ......... ........ 8 GQC PREFACE This Five-Year Implementation Plan (this "Implementation Plan") was prepared by the Redevelopment Agency of the City of Redlands (the "Agency") pursuant to Section 33490 et seq. of California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "CRU). This Implementation Plan identifies potential Agency-related redevelopment programs and projects, and housing activities targeting low- and moderate-income households, for the Redlands Redevelopment Project (the "Project'." or the "Project Area," as appropriate) during the five-year period beginning in fiscal year 2005/06, and ending in fiscal year 2009/10. The Agency's initial implementation plan, Fit�e-Year In?,plementation Plant, 1995-1999, was adopted on September 5, 1995, and updated on July 24, 2000, with the adoption of Fit,,e- Year Implementation Plan, 1999-2004. This Implementation Plan previously -adopted dates the two -adopted plans, p I This Implementation Plan is generally intended as a policy statement rather than a specific course of action. It identifies priorities for potential programs and projects, and demonstrates how such programs and projects will address essential near-term revitalization objectives for the Project Area. This Implementation Plan is not intended to restrict the Agency to the programs and projects identified herein, since conditions, values, expectations, resources, and the needs of the community may change during the term of this Implementation Plan. It is important to emphasize that the Agency is a mature agency with many years of experience in implementing a broad range of redevelopment activities and programs. The preparation and adoption of an updated Implementation Plan does not mean that the Agency must undertake as sudden change in direction, set new goals, or discontinue on-going GQC Redevelopment Agency of the City of Redlands activities and programs. Accordingly, the emphasis of this Implementation Plan is on maintaining a continuity of actions and consistency with established policies while remaining cognizant of potential activities that may arise or become feasible during the five-year term of this Implementation Plan. This Implementation Plan is presented in the following five sections: Section 1 - Introduction: Provides an overview of the CRL's provisions governing the development of this Implementation Plan. This section also describes the overall intent of the Plan. Section 2 - Project Area Background: Introduces and describes generally the Project Area, including a description of the Project's location, goals, original and remaining blighting conditions, and Agency activities accomplished to date. Section 3 - Five-Year Program: Provides a description of proposed Agency activities, programs, and public improvement projects in the Project Area during the term of this Implementation Plan. Section 4 - Housing Compliance Program: Provides a summary of issues relative to providing low and moderate income housing. Includes descriptions of past housing production activities, current housing needs, housing programs aimed at meeting these needs, and five- and ten- year housing production plans. Total housing production over the remaining lifetime of the Redevelopment Plan is also estimated. Section 5 - Administration of the Implementation Plan: Describes the Implementation Plan review process, including periodic reviews and public hearings. Also includes description of annual financial commitments that will fund the Agency's activities. 2 CIQC 1 .0 INTRODUCTION The City of Redlands has had an active redevelopment program since the Project was adopted in 197 2. The Project was established as a means of addressing conditions of blight that were affecting residential, commercial and public property in the City's downtown core and surrounding areas. The CRI, authorizes the Agency to undertake a wide variety of redevelopment activities in order to accomplish the goals of the Project, which include the funding of public improvements, encouraging commercial investment, and assisting in the development of affordable housing. Current and potential programs and projects in the Project Area described herein represent a continuation of the Agency's redevelopment goals and objectives aimed at revitalizing the Project Area. Given the Agency*s past compliance with the CRL, the requirements outlined in CRL Section 33490 are not expected to have a significant impact on the continued implementation of the Project. 1.1 INTENT OF THE IMPLEMENTATION PLAN On October 6, 1993, Assembly Bill 1290 E"AB 1290") was signed into law by then-governor Wilson. Entitled, the "California Community Redevelopment Law Reform Act of 1993," AB 1290 enacted several changes to the CRL, including the introduction of Section 33490.1 Section 33490 provides, in part, that an implementation plan shall contain the specific goals and objectives of the agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the ensuing five-year period, and an explanation of how the AB 1290 Nos subsequent1v amendcdlin 1994 by Semite Bill 732, G113 Redevelopment Agency of the City of Redlands goals, objectives, programs and expenditures will eliminate conditions of'blight within the project area and implement the requirements of the housing provisions of the CRL. Pursuant to CRL Section 33490, this Implementation Plan provides both a short-range strategy for meeting locally- identified and State-mandated redevelopment objectives and information necessary to measure the Agency's performance in meeting those objectives. 1.2 IMPLEMENTATION PLAN REQUIREMENTS (CRL SECTION 33490) CRL Section 33490 requires redevelopment agencies to produce implementation plans every five years starting in 1994. In accordance with this section, the implementation plan must contain the following: • Specific goals and objectives for the ensuing five-year period. • Specific programs and potential projects, and estimated expenditures planned for the ensuing five-year period. • Explanations of how the plan's goals, objectives, programs, and expenditures will eliminate blight. • An explanation of how the goals, objectives. and expenditures will implement the CRL's affordable housing requirements, • An explanation of how the Low and Moderate Income Housing Fund will be used annually over the term of the implementation plan, along with the amounts now available in the Low and Moderate Income Housing fund, and projected deposits thereto. Also included shall be estimates of the number of units to be assisted in each of the five years. • An estimate of the number of units to be provided over the next five (5) and ten (10) years to meet the Agency's 15% inclusionary housing requirements, if applicable. • An estimate of the number of units to be provided through the end of the Plan's effectiveness to meet the Agency's inclusionary housing requirements. if applicable. • The number of qualifying very low, low., and moderate income units that have been produced in the project area, and the number of additional units that will be required to meet the inclusionary housing requirements. Redevelopment Implementation PlanlHousing Compliance Plan • The number of units that will be developed by the Agency, if any, including the number of units that will be available for ver- y low, low and moderate income households. • If a planned project will result in destruction of existing affordable housing, an identification of proposed locations for the replacement housing the agency will be required to produce (Health and Safety Code Section 33413). • The project area affordable housing production plan required by Health and Safety Code Section 33413(b) (4). 1.2.1 INCLUSIONARY HOUSING PRODUCTION PLAN (CRL SECTION 33413) Under current law, agencies that administer redevelopment project areas or portions of project areas established on or after January 1, 1976, have an obligation to ensure that specified percentages of new or substantially rehabilitated housing are available at affordable cost to very-low, low and moderate income households. In addition, under Section 33413 of the CRL, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, the agency is required to replace those units with an equal number of replacement dwelling units within four years of displacement. The replacement, dwelling units must have an equal or greater number of bedrooms as those units destroyed or removed units, and all must be affordable to very low., low, or moderate income households. In the event that suitable land for residential development cannot be found within a project area, then the CRL permits an agency to count units that are made available at affordable housing cost outside a project area toward the agency's project area housing production requirement, on a two-for-one basis: that is, two affordable units created outside a project area will count the same toward the inclusionary obligation as one unit created inside the project area. State government has declared that the provision of affordable housing outside of redevelopment project areas can be of direct benefit to those projects in helping to accomplish project objectives regarding affordable housing, GIC 5 Redevelopment Agency of the City of Redlands 1.2.2 USE OF LOW AND MODERATE INCOME HOUSING FUND (CRL SECTION 33334) Section 33334 of the CRL addresses a number of financial issues as they apply to affordable housing. These issues are applicable to implementation plans due to the detailed character of the plan, and the strong emphasis placed on providing housing opportunities within the community. Sub-sections of particular importance in regards to the implementation plan include: • §33334.2: Agency obligation to use 20% of tax increment revenue to increase, improve and preserve the community's supply of low and moderate income housing. • §33334.4. Specifies that housing assistance for very low and low income households generally must be in the same proportion as needs for elderly housing, and for very low and low income housing in the community. • §33334.6. States that the provision of housing is a fundamental purpose of the CRL, and that the provision of affordable housing outside a redevelopment project area is still of benefit to the project area. Also sets forth various requirements for the management of the I,ow- and Moderate-Income Housing Fund. CRI, Sections 33334.10 and 33334.12 deal with the issue of excess surplus in the Low and Moderate Income Housing Fund ('-'Housing Fund"), and the plans for its use. While such a plan need not be included in an implementation plan pursuant to Section 33490, the housing production program should also address excess surplus as a practical matter. Under current law, an agency that has accumulated an "excess surplus" in its Housing Fund must expend such surplus within three years or disburse such surplus to the county housing authority or another public agency exercising housing development powers within the agency's territorial jurisdiction. The housing authority or other public entity is then directed to use the transferred surplus within three years of the date of transfer to improve and increase the supply of affordable low and moderate income housing in the community in which the agency operates. An agency has an excess surplus when the unexpended and unencumbered amount in the agency's Housing Fund exceeds the greater of $1,000,000 or the total amount deposited in the agency's housing Fund during the preceding four years. The intent of the excess surplus provisions is to encourage agencies to make timely expenditures of any excess surplus, as well as addressing 2 GQC 6 Redevelopment Implementation Rlanl'Housing Compliance Plan the widespread perception that, collectively, redevelopment agencies are not spending their Housing Fund monies quickly enough. 1.3 PUBLIC PARTICIPATION IN THE IMPLEMENTATION PLAN PROCESS Pursuant to CRL Section 33490, the adoption of an implementation plan must be preceded by a duly noticed public hearing. Notice of the public hearing must be posted in at least four (4) permanent locations in the affected project area for a minimum period of three (3) weeks. In addition, the notice must be published in a newspaper of general circulation serving the affected project area once a week for three (3) successive weeks, and mailed at least three (3) weeks in advance to all persons and agencies who requested such notice. Posting, publication and mailing must be completed at least ten (10) days prior to the public hearing, The Agency has scheduled a public hearing for this Implementation Plan on August 1, 2006. Notices of the public hearing were published in the Redlands Dally Facts on July 7, 2006, July 14, 2006, and July 21, 2006,1and posted in the following locations: 1. Office of the City Clerk of the City of Redlands, 35 Cajon Street, Redlands, California 92373 2. A.K. Smiley Public Library, 125 W. Vine Street', Redlands', California 92373 3. Redlands Fire Department, Fire Station 261, 525 E. Citrus Avenue, Redlands, California 92373 4. Redlands Police Department, Community Policing Station — Downtown, 406 N. Orange Street, Redlands, California 92373 In addition, CRL Section 33490 (c) states that between two and three years after adoption of an implementation plan, an agency must conduct a public hearing to review the redevelopment plan and implementation plan. The purpose of this mid-term review is to assess the extent to which an agency's actual activities conform to the activities described in the current implementation plan. The Agency's mid- term review of this Implementation Plan will be due between 2007 and 2008. GQC 1 7 Redevelopment Agency of the City of Redlands FIGURE 1 PROJECT AREA MAP T! 1? EXISTING PROJECT AREA 1 it I I 1 I ai Ell F iL I411 _ BROCKTON I I �? *• _ _-. . � �' 4 { s �i_t � � f-'� t �:,. �_ I � 1 _ -II I j -M i � 11'i fg „a 11 f I m re 'ii j n - PiU2K— ��„ x'x � i j �I� � 4 '� 4 ` ,„i �f lid''� 7� �}�� l.� � � - � ��r•��? I.f�j-. x 1 II BE �.., . ,.�,...1 I ! r r 1 I Iy[wt; ' l � I z Y. 2.0 PROJECT AREA BACKGROUND The Project was adopted on September 26, 1972, by Ordinance No. 1500 of the Redlands City Council, and was subsequently amended in 1976, 1996, 2000 and 2003, by Ordinance Nos. 1575, 2336, 2464 and 2556, respectively. The Project Area encompasses approximately 860 acres and is generally located in the central portion of the City, including the historic downtown district and surrounding residential, commercial and industrial neighborhoods. The Project Area extends westerly from the downtown area to Alabama Street, south of the Interstate 10 Freeway (1-10) to Vine and Pine Streets, north of 1-10 near the I-10/State Route 30 (SR-30) interchange to Lugonia Avenue on sides of SR-30, and along the south side of Colton Avenue. The downtown business district encompasses the southeastern portion of the Project Area. Retail is the largest component of the district, concentrated along State Street. The City's civic center, including City Hall and public library, other office professional uses, the historically significant Santa Fe Depot and adjacent citrus packing houses, and many more turn-of- the-century buildings, are also located therein, The Project was established with the intent of revitalizing the City's downtown core and surrounding residential and industrial neighborhoods by eliminating conditions of blight and their influences, encouraging reinvestment by property owners, and inviting new investment from, outside sources. 2.1 BLIGHTING CONDITIONS The primary blighting influences in the Project Area at the time of adoption, can be summarized as follows: 2 Redevelopment Agenqv of the City of Redlands • Old, deteriorating, and obsolete structures, defective design and character of physical construction, mixed character and, shifting of uses • Faulty exterior spacing • Depreciated values, impaired investment, and social and economic maladjustment • Parcels of irregular size and/or shaped. • Inadequate public improvements • Inadequate provision for open space and recreational facilities Throughout the Project Area, conditions of' building deterioration and the effects of building age and deferred maintenance were prevalent. The prevalence of older buildings suffering from inadequate maintenance had contributed to a widespread incidence of building obsolescence. Generally, the obsolete units were older, underdeveloped, had insufficient parking, and had outdated signage and facades. These conditions of obsolescence were exacerbated by a pattern of piecemeal development evidenced by numerous free-standing structures that have no architectural unity and typically served by on-street parking or parking areas hidden behind individual buildings. Building deterioration and obsolescence lead to depreciated property values and impaired investments. Per parcel land values for Project Area properties were substantially lower than city-wide averages for similar land uses. In many cases, multiple land uses occupied a single parcel of land. The result of this mixed character and shifting of uses was that areas of the Project Area were affected by circulation problems, incompatibilities among adjacent land uses, circulation and traffic safety problems, noise problems, and inadequate on-site parking, all of which, together with the large number of small and inadequately sized parcels, created a disincentive for private investment on individual parcels. Faulty exterior spacing in the Project Area resulted from poor site planning, inadequate or inefficient on-site parking, faulty design of ingress and egress patterns, and a variety of interior circulation problems. Conditions of faulty exterior spacing were worsened by the large number of small or inadequately shaped lots, and by dispersed property ownership patterns. CIQC OCI Redevelopment Implen7entation Plan1housing Compliance Plan Irregular parcel shapes and small parcels were also prevalent in the Project Area. A large percentage of Project Area properties along commercial corridors were less than 25 feet in width and less than 100 feet in depth. There was also a prevalence of landlocked parcels and flag lots. Such conditions contributed to hindered development or redevelopment opportunities because parcel assembly proved to be extremely difficult or impossible for the private sector acting alone, even though the need for such activity was visibly evident. Although most of the conditions of blight in the Project Area were located on privately-owned property, there were also numerous public facility deficiencies affecting the Project Area. A wide variety of water, sewer, drainage, and street improvements needs had been identified for the Project Area. 2.2 CURRENT CONDITIONS Although the Agency has made substantial progress in addressing blighting conditions in the Project Area through the programs, projects and activities it has implemented, conditions of blight continue to hinder the full development of the Project Area. Key blighting conditions include: n • Physical Conditions - Unsafe buildings - Obsolescence - Lack of parking - Incompatible land uses - Irregularly shaped parcels - Inadequately sized parcels • Economic Conditions - Depreciated or stagnant property values - Economically obsolete buildings/lots - Inadequate public improvements - Abnormally high business vacancies - Abnormally low lease rates The matrix in Table 1, below, sumirnarizes the Current conditions of blight in the Project Area. (The evaluation is based upon the CRL's blight definitions in place at the time n the Project was originally adopted in 1972.) !GQC !11CJ Redevelopment Agency of the City of Redlands Table 1 Implementation Plan—Redlands Redevelopment Project MATRIX OF BLIGHTING CHARACTERISTICS IN THE PROJECT AREA Characteristic of Blightr Defective design and character of physical Yes Minor construction Faulty interior arrangement and exterior spacing Yes Minor High density of population and overcrowding Yes Minor Inadequate provision for ventilation, light, No N/A sanitation, open spaces, and recreation facilities Age, obsolescence, deterioration,dilapidation, Yes Extensive mixed character, or shifting of uses An economic dislocation,deterioration,or Yes Moderate disuse, resulting from faulty planning The subdividing and sale of lots of irregular form Yes Moderate and shape and inadequate size for proper to usefulness and development Extensive The laying out of lots in disregard of the Yes Moderate contours and other physical characteristics of the ground and surrounding conditions The existence of inadequate streets, open Yes Extensive spaces, and utilities The existence of lots or other areas which are No N/A subject to being submerged by water A blighted area is characterized by a prevalence Yes Extensive of depreciated values, impaired investments, and social and economic maladjustment to such an extent that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered In some parts of the blighted area, a growing or Yes Extensive total lack of proper utilization of areas, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety, and welfare In other parts of the blighted area, a loss of Yes Extensive population and reduction of proper utilization of the area, resulting in its further deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere GRC 12 Redevelopment Implementation Plan/Housing Compliance Plan 2.3 GOALS AMC? OBJECTIVES The goals and objectives of the Redevelopment Plan provides for the revitalization of the City's historic downtown core and, in so doing, the alleviation of a number of blighting conditions. The components of this comprehensive revitalization strategy include: establishing an identity for downtown Redlands supporting retail and commercial development; maintaining pedestrian oriented streetscaping, developing an entertainment complex, and promoting the nationally designated Burlington Northern Santa Fe (BNSF) Depot historic district. Continued emphasis on these factors will invigorate the downtown by bringing people to the area to live, work, shop, entertain, and spend time in a pleasant environment which truly reflects Redlands' identity and sense of community. The goals and policies of the Agency, as identified in the Agency's prior Implementation Plan`' and applicable to this Implementation Plan as well, are as follows: Goal #1. Provide a high-quality pedestrian oriented development character consistent with the Downtown area. • Objective 1.1 Encourage high-quality office, retail, entertainment and other related commercial uses. • Objective 1.2 Promote land uses that create local employment opportunities for Redlands residents, stimulate local economic development and reduce the need for local residents to commute to jobs outside the City. • Objective 1.3 Implement development standards and design guidelines that require new development projects to be consistent with the traditional pattern of downtown development. Buildings are to be located at or near the front property line, with parking to the rear or side screened from public view. • Obiective 1.4 Discourage freeway-oriented land uses, drive-through uses, and other activities that generate high traffic volume. • Objective 1.5 Encourage the use of public transportation and emphasize pedestrian circulation throughout the downtown area. Goal #2. Provide opportunities for the expansion and development of small businesses that provide local services. 2 City of Redlan(:ls Redevelopment Agency, Implementabion Plan--200_0July 24,2000, GQC113 Redellelopment Agency of the C4 of Redlands • Objective 2.1 Create a Service Commercial Area that encourages the development of vacant land and under- used properties for business development. • Objective 2.2 Adopt development standards and design Z!) guidelines to insure high-quality projects that are compatible with neighboring residential and commercial uses. • Objective 2.3 Prohibit large-scale manufacturing and assembly, warehousing-storage complexes, large-scale service yards and other land uses that generate significant noise, odor or truck traffic. Locate these activities elsewhere in the City, outside the downtown area. The City and Redevelopment Agency shall work with existing businesses to locate suitable sites for expansion and relocation of these activities. Goal #3. Provide public improvements for traffic circulation, flood control, utility services and aesthetic amenities that will attract new private investment and economic development. • Objective 3.1 Improve collector and local streets as new development occurs. • Objective 3.2 Place emphasis on excellence in streetscape design. Provide high-quality sidewalks, street trees, pedestrian lighting and directional signage. • Objective 3.3 (none) • Objective 3.4 Complete the BNSF Trail shoppers lane. • Objective 3.5 Complete pedestrian alley improvements in the 500 block of Orange Street. Zn • Objective 3.6 Build a linear park along the Mission Zn Zanja from Church Street to Ninth Street. • Objective 3.7 Develop a public parking structure and pedestrian plaza in the BNSF Depot District. • Objective 3.8 Develop the BNSF right-of-way as a pedestrian trail and bike path if the railroad vacates the property or if an easement can be obtained for trail purposes. • Objective 3.9 Make recommended infrastructure improvements to storm drainage, sanitary sewers and utilities throughout the redevelopment plan area. • Objective 3.10 Expand the capacity of the Zanja storm drain by adding a new structure along the abandoned Southern Pacific railroad alignment. GQC —14i Redevelopment Implementation PlanlHousing Compliance Plan Objective 3.11 Install sidewalk, curb, gutter, drainage, handicap facilities and landscape improvements along Redlands Boulevard and related side streets within the downtown area. Goal #4. Preserve historic buildings and sites. • Objective 4.1 Emphasize rehabilitation and adaptive reuse of historic buildings and contributing buildings to the Santa Fe Depot District, developing new activities that contribute to downtown economic vitality. • Objective 4.2 Encourage adaptive reuse and rehabilitation of historic houses in the High Avenue area. • Objective 4.3 Encourage the preservation of other significant historic resources that exist throughout the plan area and have viable uses. Goal #5. Improve the accessibility,, traffic flow, and parking availability within commercial areas. 2.3.1 AGENCY FIVE-YEAR GOALS AND OBJECTIVES The Agency's overriding goals and objectives for the Project Area continue to be the elimination or alleviation of blighting conditions through the provision of needed public improvements, assistance for the development and rehabilitation of existing properties, the provision of low- and moderate-income housing opportunities, and other activities authorized by the CRL. In achieving its goals and objectives, the Agency intends to mitigate the effects of faulty design, deterioration and the lack of inadequate lot sizes and amenities that still exist in the Project Area. In eliminating these blighting conditions., the Agency will facilitate development as contemplated in the Redlands General Plan. 2.4 AGENCY ACTIVITIES As described in Section 2.1 of this Implementation Plan, above, at the time the Project was originally adopted in 1972, there were detrimental physical, social and economic conditions that were negatively impacting the Project Area. Since then, the Agency has used the powers and authorities of redevelopment to alleviate those conditions by undertaking a comprehensive program of public improvements and by providing a variety of development GQC Redevelopment Agency of the City of Redlands incentives intended to stimulate new development and rehabilitation activities in the Project Area. Since the adoption of the 2000-2005 Implementation Plan, the Agency has been actively pursuing a number of community and economic development, and affordable housing projects: 1. The Third Amendment to the Redevelopment Plan for the Project was approved on August 19, 2000. The Amendment re-established. to the Agency's eminent domain authority on non-residential property, updated the Land Use section of the Plan to reflect changes to the City's General Plan, Specific Plan and zoning designations, and prepared a Program Environmental Impact Report for the Project. 9 The Fourth Amendment to the Redevelopment Plan for the Project was approved on October 71, 2003. The Amendment expanded the Agency's eminent domain authority to include residential properties, and established a Project Area Committee to generally advise the Agency on redevelopment issues and policies. 3. The Agency issued a new Tax Allocation Bond in the amount of$17,000,000 to finance future redevelopment activities in the Project Area. 4. Redlands Boulevard Street Improvement Project: Completed in December 2000, at a cost of$51,094. 5. Parking Structure Project planning study to identify n potential sites for a parking structure to serve the City's "Core Block" area, which is located in the Project Area. 6. Hotel, Restaurant and Entertainment Development: The Agency acquired a site on the south side of Stuart Street at Third Street for $264,500 in 2003. Improvements on Stuart Street were completed in 2003 at a cost of$9,400. The Agency also provided assistance in the amount of $57,000 to locate a restaurant at the corner of Orange Street and State Street. 7. Transit Center: The bus stop area along Redlands Boulevard, between Orange Street and Third Street, was improved with median island fencing and landscaping improvements. The intersection of Third Street and Redlands Boulevard was improved with a traffic signal, enhanced paving, pedestrian crossing and handicap ramps. The project was completed in 2001, and funded by Omnitrans with assistance from the Agency. CSC 14 Redevelopment Implementation PlanlHousing Compliance Ran 8. Pedestrian Enhancement Project: In conjunction with the Core Block study, and in order to implement the project, staff met with SAT'BAG and BSNF to discuss the possible elimination or reduction of a portion of the railroad tracks through the Core Block area. 9. Justice Center: A study was completed to identify potential sites within the Project Area for the Center. 10. Great Neighborhoods Program: This program provides low- and moderate-income homeowners with financial assistance for use towards home maintenance and repairs such as building and or Health and Safety Code violations, exterior painting, roof repair, fumigation, landscaping and fencing. Since Fiscal Year 1996-97, the program has committed nearly $1.6 million towards the rehabilitation of 247 sin-ale-family homes, for an approximate investment of$6,300 per unit. During the period between Fiscal Years 2000-01 to 2005-061, the Agency committed $756,000 for improvements to 81 single-family homes, for an approximate investment of $9,300 per unit. 11. Developer Assistance Program: This program assists private sector non-profit and for-profit affordable housing developers to build new affordable housing opportunities both inside and outside the Project Area in return for long-term affordable housing covenants. Since 1995, the program has committed approximately $3.3 million towards the development of 171 units, for an approximate investment of X19,300 per unit. From 1999 to 2004, the Agency committed $8871,000 for the construction of 27 affordable units, for an approximate investment of $32,850 per unit. Pending applications include: 6 units for Habitat for Humanity; 8 units for Neighborhood Housing Services of the Inland Empire; and, 714 senior units for the County Housing Authority. 12. Multi-Family Residential Rehabilitation Program: This program assists very low- and low-income renters and property owners in rehabilitating existing multi-family rental properties. Since 1995, the program has invested $697,000 towards the rehabilitation of 91 units, for an approximate commitment of $7,700 per unit. From 2000 to 2002, the Agency committed $453,000 for improvements to 64 affordable units, for an approximate commitment of$7,100 per unit. 13. First Time Homebuyers Program: This program provides low- and moderate-income first time homebuyers with down payment assistance. The GQC Redevelopment Agency of the City of Redlands program provides an additional $5,000 as an incentive for families purchasing homes in high-risk neighborhoods. Since Fiscal Year 1995-96, the program has provided $1.6 million towards the acquisition of 139 units, an average commitment of approximately $11,300 per unit, and has made them available as affordable units. From Fiscal Years 2000-01 to 2002-03, the Agency has committed $659,000 on 54 units, an average commitment of $12,200 per unit. An additional 33 families are on a waiting list pending new program parameters. GD-C 3.0 FIVE-YEAR IMPLEMENTATION PROGRAM Proposed Agency activities during the term of this Implementation Plan are divided into two distinct categories: programs related to the provision or replacement of affordable housing, and all other non-housing programs that the Agency may pursue under the adopted Redevelopment Plan, such as economic/community development and public improvements. This Chapter of this Report focuses specifically on the Agency's potential non-housing activities during the ensuing five-year period, This Chapter will describe specific projects and expenditures, and explain how said projects and expenditures will address conditions of blight in the Project Area. Totential housing activities are discussed in Chapter 4.0 of this Report.) The Agency's non-housing activities during the ensuing five- year period will continue to generally focus upon economic development and public facilities. The Agency will utilize various tools authorized by the Redevelopment Plan and CRL to facilitate such activities, The Agency may acquire certain real property; demolish certain buildings or improvements; provide relocation assistance to residential and non-residential displaces; install, construct or reconstruct public facilities such as streets, utilities, or landscaping; dispose of property acquired for redevelopment; facilitate the redevelopment or rehabilitation of properties by private developers or public entities; collect tax increment revenues to finance or encourage redevelopment; and sell bonds secured in whole or in part by tax increment revenues to raise capital for redevelopment purposes. Redevelopment Agency of the City of Redlands 3.1 ECONOMIC AND COMMUNITY DEVELOPMENT During the five-year term of this Implementation Plan.. the Agency will continue to offer financial assistance in the Project Area through previously established programs: • Rehabilitation: Improve economic growth opportunities and/or residential neighborhoods by assisting in the rehabilitation of commercial, industrial, public and residential structures to improve building conditions, correct code deficiencies, increase functionality and desirability, and enhance aesthetic qualities. • Historic Preservation: Rehabilitate historically significant buildings to preserve the cultural and architectural value of the property, its surroundings, and by extension, the Project Area. • Development Assistance: Financial or other assistance as authorized by the CRL and the Redevelopment Plan to individual projects on an as_ needed basis, and depending on the availability of Agency funds or other resources. • Property Acquisition: Acquisition of real property in the Project Area on a case-by-case basis, subject to applicable restrictions, in order to implement the goals of the Redevelopment Plan or in effectuating other redevelopment activities. • Recreational and Community Facility Improvements: Construct, reconstruct or improve parks and other community facilities to enhance recreational opportunities in the Project Area. • Business Retention: Assist existing businesses to market themselves, expand and/or improve their competitiveness to increase patronage to their business, surrounding businesses, and by extension, the Project Area. • New Business Development: Identify and attract new businesses to the Project Area on vacant or underutilized properties through recruitment programs, site acquisition assistance, and/or site development aid. Improve building conditions, correct code deficiencies, increase functionality and desirability, and enhance aesthetic qualities. • Streetscape Development: Construct public improvements to increase pedestrian traffic and/or 2 GQC Redevelopment Implementation Plan/Housing Compliance Plan overall ambience within key arterials of the Project Area. • Parking Improvements: Assist in the improvement and/or expansion of existing parking areas, as well as the creation of new parking opportunities. • Business District Revitalization: Improve economic growth opportunities by rehabilitating and revitalizing key business districts in the Project Area. • Public Improvements: May include the construction or reconstruction of a) streets, curbs, gutters and sidewalks; b) traffic and circulation improvements; 0 storm drain systems to improve the existing level of flood control and protection; and/or d) landscaping to identify distinct districts or to establish a sense of place. (See Chapter 3.2 of this Report.) Rehabilitation and faqade improvement programs are intended to reduce blight by improving the appearance and functionality of the built environment, thereby improving overall aesthetics and property values. In commercial areas, improved desirability and competitiveness may increase patronage and, in turn, attract other new businesses to the area, both of' which increase sales and property tax revenues and local employment opportunities. Residential rehabilitation and in-fill housing programs are intended to reduce blight by eliminating shifting land uses and stabilizing residential neighborhoods. Improved neighborhoods have the effect of increasing local pride and enhancing community identity. Increased local pride often encourages programs of regular maintenance and the willingness of residents and neighbors to be more protective of their surroundings. This improved protectiveness often results in a system of self-patrol that helps to reduce local crime, particularly crimes against property. Community and recreational facility improvements are intended to reduce blight by improving the living environment for current and future residents. This improved quality of the environment will result in higher property values and greater neighborhood pride. New recreational and community attractions in the Project Area may also help marginally-profitable businesses by generating a higher number of visitors to the area who may patronize their stores. 2 GQC 21 RedeveloPment Agency of the City of Redlands 3.1.1 SPECIFIC ACTIVITIES During the five-year term of this Implementation Plan, the Agency's non-housing efforts will continue to focus on rehabilitation and reinvestment throughout the Project Area, including the following activities: 1. Gateway Project (Investwest): 11,732 square foot retail commercial center on 0.82 acre located at the southeast intersection of Pearl Avenue and Eureka Street. Phase I is scheduled for completion in 2006; Phase Il involves the acquisition of additional properties and execution of a participation agreement with developer to provide office and housing components to the project. 2. Promenade Project (Hopkins-General Growth): An owner participation agreement may be finalized in 2006 for the construction of a 160,000 square foot, retail project at the southwest intersection of Pearl Avenue and Eureka Street. 3. Kirkorian Theater Expansion Project (Showprop): Additional 26,130 square feet to existing theater complex on Eureka Street, including three new movie screens, 897 seats, and a 7,600 square foot multiple tenant retail space. Additional phases may include restaurants, mixed uses and a parking structure. 4. Village at Redlands Project (Hopkins-General Growth;: Redlands Mall revitalization and expansion mixed-use project with approximately 230 residential units over an approximate 230,600 square foot revitalized retail mall. 5. Civic Center and Safety Hall Revitalization Project (Galaxy Commercial 1-loldings): Proposed replacement of Safety Hall with new Civic Center & Safety Hall (police facilities). The current Civic Center site will be re-used as a mixed-use retail/residential development. 6. Shopper's Lane/Gas Lamp District Project (Downtown Specific Plan): This project will implement aspects of the Specific Plan and Torli Gallas Downtown Master Plan concept. Subsequent phases of the project may also involve the rehabilitation of the Santa Fe Depot site with 200 residential units above 50,000 square feet of retail/office/entertainment components, and the development of a 100-room resort hotel with 20,000 square feet of meeting rooms/banquet facilities, GQC Redevelopment Impiementation Plan,Housing Compliance Plan mixed-use retail/entertainment/residential complex, and parking structure. 7. RCIC Office Expansion Project: The project involves a proposed mixed-use development with retail, office, and entertainment components, and a parking structure located at the northeast intersection of Th Street and Citrus Avenue. Phase I of the project will consist of 9,000 square feet of expansion, and Phase II will consist of 40,000 to 60,000 square feet of expansion. 8. Core Block Parking Structure and other Parking Facilities: Development of the first structures are planned for the Redlands Mall site, with following structures at the Citrus parking lot site which will be of benefit to the Redlands Bowl, Market Night, add to the success of the Redlands Mall revitalization, provide parking for employees, Safety Hall and Post Office. 9. Telephone Company Switching Building: The Agency will investigate and determine the long-term use of the building and its functions; identify opportunities to re-use the site or to reduce the size of the building accordingly; integrate site into the renewal of the downtown district and revitalization of the Redlands Mall. 10. Galaxy Commercial Properties: This project may include the rehabilitation of the Light I-louse and Washington Mutual/Sizzler areas, revitalization of the Mitten Building, and development of a transit-oriented village. 11. Charles House Development: This project may consist of a mixed-use complex with retail, housing, and restaurant/entertainment components. 1.2. Pacific West Coast Investments: The project involves the development of a transit-oriented village, including a Metro Link Station, as part of the continued development of the downtown core. The Agency will continue to be involved with SLAG to assure adequate City representation on the decision-making panel and review related impacts. Subsequent phases of the project may involve mixed-use projects with retail, residential, office, entertainment components, parking structure, and auto dealerships. 13. Tri-City Shopping Center Revitalization and Renovation: The project involves remodeling and 1� renovation to update the existing shopping center to modern standards, as proposed by the property owner. 2 Redevelopment Agency of the City of Redlands The project, which may also include a combination of mixed-use components, may occur in conjunction with the potential re-alignment of Redlands Boulevard, Colton Avenue, Alabama Street and the BNSF railroad crossing. 14. Donut Hole/County-Downtown-University (Pacific West Coast Investments): The Agency will collaborate with property owners in the area to facilitate the development of a Master Plan which may include a development to act as a gateway to the City. The potential development may include a mixed-use complex featuring retail, office, entertainment, recreation, and restaurant components. 15. 100-Year Flood Plain: The Agency will continue efforts to obtain a grant to study/design facilities to address potential hazards associated with the 100-Year flood plain and local flood control and storm drainage. 16. Costco: The Agency will develop a process and program to attract this business to the City. 17. Wal-Mart/Super Wal-Mart: The Agency will develop a process and program to retain these businesses in the City. 3.2 CAPITAL IMPROVEMENTS During the five-year term of this Implementation Plan, the Agency's principal capital improvements objectives will continue to emphasize infrastructure upgrades. The Agency remains confident that the continued implementation of public improvements listed in the Redevelopment Plan will further stimulate private investment on private property in the Project Area. Various street improvements will enhance circulation through and within the Project Area, thus reducing traffic congestion and easing access to business districts, community facilities and residential neighborhoods as local population and employment levels continue to grow. Traffic and circulation improvements will also help attract new growth opportunities to the area and the ultimate development of vacant or underutilized land by signaling to the financial and commercial communities that the City and Agency are willing to provide the facilities necessary to ensure the success of private investments. The installation and/or upgrading of water, sewer, and drainage systems that serve the Project Area are intended GQC 2 1 Redevelopment Implementation Plan;'Housirg Compliance Plan to reduce blight by alleviating obstacles to the development of currently vacant or underutilized land. The eventual completion of these planned improvements will serve as the foundation upon which subsequent development may occur. Landscaping and other aesthetic enhancements will improve the visual quality of business districts. , public areas and residential neighborhoods. This, in turn, will have the effect of inducing new investment or reinvestment. An improved visual image often increases levels of patronage for local merchants, which enhances profit margins and sales taxes for the City. This also improves the value of previously impaired investments and contributes to additional capital for further reinvestments. Landscaping and other aesthetic improvements will also lead to increased neighborhood pride, which, in turn. often encourages programs of regular maintenance and the willingness of residents and neighbors to be more protective of their surroundings. This improved protectiveness often results in a system of self-patrol that helps to reduce local crime, particularly crimes against property. 3.2.1 SPECIFIC ACTIVITIES During the five-year term of this Implementation Plan, the Agency's infrastructure efforts will focus on rehabilitation and reinvestment in the downtown core area, including the Zn following activities: 1. Core Block Parking Structure/Citrus Parking Structures and/or Parking Lots 2Public Open Spaces/Public Plazas 3. Street and Roadway Alignments/Reconstruction 4. Pedestrian Way Construction/Reconstruction 5. Landscaping/Street Trees/Street Furniture/Lighting 6. Utilities — Sewer Connections 7. Traffic Signals, Signage and Re-Direction 8. Storm Drainage, Flood Control, Detention Basins and Other Storm/Flood Facilities 9. State Street and Orange Street Facade Improvements 10. Seismic Safety Retrofit of Un-Reinforced. Masonry/Concrete Buildings and Structures GQC Redevelopment Agency of the City of Redlands Table 2 Implementation Plan-Redlands Redevelopment Project GOALS ACHIEVEMENT/SLIGHT ELIMINATION MATRIX Activity Relationship oProgram Economic Development Gateway Project(Investwest) Elimination or rehabilitation of vacant or deteriorated buildings, elimination or rehabilitation of obsolete Promenade Project buildings, rehabilitation of commercial facades and signage, development or redevelopment of vacant or underutilized lots, site assembly to eliminate conditions Kirkorian Theater Expansion Project of small, inadequately shaped, or landlocked lots through site assembly, and removal of conditions causing Village at Redlands Project physical and economic liabilities in the Project Area. Continued implementation of the Plan is also expected to Civic Center and Safety Hall Revitalization Project result in the use of the Plan's tools to further Redlands' historic preservation goals in the Project Area. Shopper's Lane/Gas Lamp District Project RCIC Office Expansion Project Telephone Company Switching Building Charles House Development Pacific West Coast Investments Tri-City Shopping Center Revitalization and Renovation Costco Business Attraction Wal-Mart/Super Wal-Mart Business Retention Studies and Site Evaluations 100-Year Flood Plain Will address public health and safety issues relative to potential flooding in the Project Area, particularly in the historic downtown district. Donut Hole/County-Downtown-University Will continue to lay the groundwork for larger redevelopment projects in the future, including site assembly in support of business recruitment. Will eventually promote greater conformity with General Plan and Zoning Ordinance, eliminate problems associated with small or irregularly shaped parcels, cause the removal of deteriorated or obsolescent buildings, permit relocation of current occupants to suitable sites. 26 Redevelopment Implementation Plan/Housing Compliance Plan Activity Relationship to Program Goals Historic Preservation Telephone Company Switching Building Supports the City's historic preservation goals, and eliminates building deterioration and deferred maintenance problems, enhances the visual quality of the Project Area, and improves public health and safety. Galaxy Commercial Properties Capital Improvements Core Block Parking Structure/Citrus Parking Eliminating inadequate public access, inducing private Structures and/or Parking Lots investment on currently vacant or underutilized parcels, supporting building rehabilitation, and addressing Public Open Spaces/Public Plazas impaired investments. Street and Roadway Alignments/Reconstruction Pedestrian Way Construction and Reconstruction Landscaping/Street Trees/Street Furniture/Lighting Utilities—Sewer Connections Traffic Signals, Signage and Re-Direction Storm Drainage, Flood Control, Detention Basins and Other Storm/Flood Facilities State Street and Orange Street Fagade Improvements Seismic Safety Retrofit of Un-Reinforced Masonry/ Concrete Buildings and Structures 3.3 DEVELOPMENT PROJECT REVIEW Prior to formal submittals to the City for development permits, the Agency may from time to time review individual development projects that would result in a major intensification of use, substantial rehabilitation of existing structures, or new construction, for their consistency with this Implementation Plan, the Redevelopment Plan, and any other applicable Agency policies. Said review shall be accomplished in full GRC 27 Redevelopment Agency of the City of Redlands conformance with all applicable provisions of the Redevelopment Plan, CRL, other statutes and City policy. 3.4 PROGRAM CHANGES The Agency has identified the improvements shown herein as the most probable implementation activities for the term of this Implementation Plan. Since other public and private projects, not foreseen today, may later be judged to be feasible and beneficial in eliminating blight, it may be necessary from time to time for the Agency to make changes to programs and activities, and the priorities assigned to those programs and activities. Whether or not listed herein, specific projects and programs may be constructed or funded by the Agency during the period covered by this Implementation Plan, if the Agency finds that: 1. The goals and objectives of the Redevelopment Plan are furthered. 2. Specific conditions of physical or economic blight within the Project Area will be mitigated in whole or in part through implementation of the project. 3. Specific conditions relative to a development project, including the financial feasibility thereof, require that the public improvement project be constructed at the time in question. 3,5 FUNDING SOURCES The Agency has identified several major sources of funds for the programs and activities planned over the next five years in the Project Area. These funding sources may include, but are not limited to: • Sale of tax allocation bonds supported by tax increment revenues from the Prqject Area. • Tax increment revenues over and above the amounts required to cover debt service on the tax allocation bonds, as estimated in Table 3, below. Over the next Five years, the Agency could expect to receive approximately 810.2 million in net revenues for non- housing programs. These funds will be applied to implementing the programs described herein and retiring current bonded indebtedness. 2 GQC 28] — Redevelopment Implementation PlanlHousing Compliance Ran • Proceeds from land sales to private developers for purposes of implementing specific redevelopment projects. • Loans and advances from the City of Redlands. • Community Development Block Grant (CDBG) funds, which are only to be used to provide community facilities, services and residential rehabilitation programs in low- and moderate-income areas. • Other Federal and State grants and loan programs. GSC Redevelopment Agency of the City of Redlands Table 3 Cash Flow Summary Fiscal Balance Gross Tax Housing Vass-Throug ERAF Other Debt Service Operations Projects Year-End Year Forward Increment Set-Aside I Payments Payment L, Revenues 1 1 1 1 Balance 2005-2006 19901,134 $ 4,459,614 91,923 $ 25,3175 $ .387,912 $ 600,000 3,396,147 $ 604300 $ 3,565,000 $ 16,090,463 2006-2007 $ 16,Q90463 $ 4,589,835 $ 917,967 $ 51,349 $ $ 600,000 $ 3,498,993 $ 634,200 $ 2,000,000 $ 14,177,789 2007-2008 $ 14,177 789 $ 4,723,a58 $ 944,772 $ 78,154 $ $ 600,000 $ 3,495,305 $ 665,910 $ 2,000,000 $ 12,317,506 2008-2009 $ 12,317,506 $ 4,861,795 $ 972,359 $ 105,741 $ $ 600,000 $ 3,454,114 $ 699,206 $ 1,600,000 $ 10,907,880 2009-2010 $ 10,907,880 1 $ 5,003,759 $ '1,000.752 $ 134,134 $ $ 600,000 $ 3,496,863 $ 734,166 $ 1,100,000 $ 10,045,724 Total $ 23,638,860 ($4,727,773) ($314,683) ($387,910) $ 3,000,000 ($17,381,422) ($3,337,482) ($10,265,O00) Assumptions: Balance Forward includes$18,053,700 in Bond Proceeds for both affordable housing and non-mousing projects Cross'Tax Increment increases 2.92%-from Redlands RDA Bond spreadsheet calculations Housing Bet-Aside-2001. Pass Through Payments-New 2004 Base Year FRAFPayment-from CRA website,assumes no new FRAF Other Revenues-Interest Income,based on 04-05 Annual Report Projects-from Redlands RISA GQC 30 4.0 HOUSING PRODUCTION PROGRAM CRL Section 33490 requires implementation plans to contain a housing production program for five- and ten-year periods, and for the rest of the plan's lifetime. The programs should show how the Agency will address the requirements outlined in CRL Sections 33334.2, 33334.4'. 33334.6, and 33413. Specifically, the housing production program must describe the number of housing units to be developed, substantially rehabilitated, price-restricted, otherwise assisted, or destroyed, In addition, the housing production program must describe the Agency's plans for using its annual deposits in the Low- and Moderate- Income Housing Fund. CRL Sections 33334.2 and 33334.6 require the Agency to establish a Low- and Moderate-Income Housing Fund for the purposes of increasing, improving and preserving the City's supply of low- and moderate-income housing. CRL Section 33334.4 states that it shall be the policy of each redevelopment agency to use the Low- and Moderate-Income Housing Fund to. 44... assist housing for persons of very-low and low-income in at least the same proportion as the total number of housing units needed for those income groups which are not being provided by other governmental programs bears to the total number of units needed for persons of moderate, low- and very-low income within the community." CRL Section 33413 requires that the plan include standards for replacing housing units lost as a result of Agency; and, for post- 1976 project areas, a detailed plan of various inclusionary housing production requirements. In accordance with Section 33413(d)(1), as a pre-1976 Amended Project Area with no post-1976 Section 33333.10 amendments to extend the time limit on effectiveness of the plan, or post- 1976 amendments to expand the Project Area, the 31 CIQC Redevelopment Agency of me Cray of Redlands Redlands Redevelopment Project Area is not subject to the inclusionary housing production requirements of Section 33413. Although the Agency must replace housing removed or destroyed in the Project Area on a one-for-one basis, it is not otherwise obligated to produce affordable housing in response to inclusionary housing obligations imposed by either its own production of new affordable housing or substantially rehabilitated units, or the production or substantial rehabilitation of market-rate housing by private developers. However, it should be noted that the Agency continues to be required to spend its Housing Fund monies in a timely manner to avoid "Excess Surplus" penalties and requirements. Finally, the affordable housing plan must also be consistent with the City's Housing Element of the General Plan. The Agency adopted its affordable housing plans on December 6, 1994 and December 21, 1999, as part of the previously prepared Implementation Plans. The following sections summarize general issues relative to low- and moderate-income housing in the City, detailed housing production requirements, housing production in the Project Area, identified inclusionary housing needs, projected housing needs through the five-year planning period, replacement housing needs, current housing programs, and a five-year production plan. 4.1 HOUSING PRODUCTION REQUIREMENTS As mentioned above, the Agency is subject to no Section 33413 housing production requirements except for replacement housing (see Section 4.2.4 below), and the timely expenditure of Housing Fund monies. Please note that the Agency is exempt from the requirements of Section 33333.4 (very low and low-income targeted assistance) until December 31, 2014 as allowed in Section 33490(a)(2)(A)(iii). This, however, is of little concern as the effectiveness of the Project terminates in 2011 2 GQC Redevelopment Implementation Plan/Housing Compliance Plan 4.2 PAST AND PROJECTED HOUSING PRODUCTION 4.2.1 PAST PROJECT AREA HOUSING PRODUCTION In total, there have been 171 affordable residential units constructed within the Project Area since the Agency's Affordable Housing Program began in 1995. Of these, 57 units (33%) were constructed after 2000. These units were constructed with direct Agency assistance, including: 10 available to moderate income households, 37 to low-income households and 10 to very low-income households. The Agency has been very active improving housing conditions for low and moderate-income households in the Project Area, and in the City in general. Its efforts have focused on housing rehabilitation, affordability, as well as production. Most of the City's housing efforts have been funded directly by redevelopment set-aside funds. 4.2.2 PROJECTED HOUSING PRODUCTION New Construction Potential According to the Southern California Association of Governments (SCAG) Regional Housing Needs Allocation (RIINA), the City of Redlands had a new construction goal of 1,931 dwelling units for the planning period 2000-2005. As noted above, 1,316 new housing units were constructed during that planning period, achieving about 68% of the SCAG RHNA goal. 'Phis achievement is primarily due to expenditure of Agency Housing Funds. During the next five and ten years, the Agency intends to continue its successful implementation of housing production programs. The Agency anticipates the total annual deposits into the Housing Fund for the term of this Implementation Plan will continue to be in the amounts that equal the full 20% set-aside requirement. The estimates of future deposits into the Housing Fund included in the cash flow analysis for this plan are based on these assumptions. The 1995 City General Plan provides for 6,768 additional housing units. According to the City 1995 Housing Element, there is sufficient land zoned and served to meet the City's low and very-low-income housing need assuming a large number of units will be added at the High and Redevelopment Agency of the City of Redlands Medium Density levels, Projected density bonuses, congregate and single-room occupancy housing adds to the Z71 City's ability to accommodate these needs. City-Wide New Construction Potential: 2005-2009 There are a number of housing developments currently under way within the City. It is expected these developments will be completed during the five-year planning period 2005-2009. If' constructed as planned, these developments will yield 1,550 new dwellings, 200 of which will be multifamily. These developments, none of which is in the Redevelopment Project Area, include: • Quantum Structures (Tract 13986): 136 town homes, including 85 in Phase I and 51 in Phase 11. • Beazer Homes Jract 16390): 139 single family dwellings. • Pay Meyer (Tract 16460); 6 single family dwellings. • Alan and Robin Gotta {Tract 16480'): 6 single family dwellings. • Trimark (Tract 1.5469) 22 single family dwellings. • ABCO Realty and Investments: 64 single family dwellings. • AKS and BEK Partners- 27 single family dwellings. • Griffin Homes Jract 12382): 31 single family dwellings. • KB Homes (Tract 16556): 107 single family dwellings. • William Buster (Tract 16488) 7 single family dwellings. • Ryland Homes (Tract 16-147) 52 single family dwellings. • Mo Behzad "Tract 16742) 15 single family dwellings. • Barbara and Alan Williams (Tract 16722): 6 single family dwellings. • Massaro and Welch (Tract 16276): 5 single family dwellings. • AVD Group (Tract 16806): 6 single family dwellings. • Granite Homes (Tract 1.6586): 80 single family dwellings. Z:p • Panda Homes (Tract 16907): 9 single family dwellings. • Arief Naftali (Tract 16878): 76 single family dwellings. • Francis f lyong(Tract 16287): 12 single family dwellings. CIQC Redevelopment Implementation Plan/Noosing Compliance Plan • Clive Peters (Tract 16287): 10 single family dwellings. • Walton Development (Tract 16455): 74 single family dwellings. • Walton Development (Tract 16627): 33 single family dwellings. • Rose Villas (Tract 16915): 6 single family dwellings. • NFC Digital (Tract 15757): 6 single family dwellings. • ABCO Realty and Investments (Tract 17253): 37 condominium units. • Bonita Development: 15 single family dwellings. • Keith McCann (Tract 17429): 5 single family dwellings. • Buckeyes Limited Partnership (Tract 17691): 24 unit condominium. • Montrose Park (Tract 17533): 10 single family dwellings. • Winstar Redlands: 13 single family dwellings. • Olympic Barrington Partnership: 20 single family dwellings. • Ryland Homes: 28 single family dwellings. • Keith McCann: 4 single family dwellings. • Standard Pacific Homes: 201 single family dwellings. • Gardner Construction: 14 single family dwellings. • Vines Development: 6 single family dwellings. • George Saunders: 8 single family dwellings. • Quantum Structures: 81 town homes. • Bulldog Commons: 40 multi-family dwellings. • Mark Utzinger: 160 senior housing units. City-Wide New Construction Potential: 2010-2015 For planning purposes, it is reasonable to assume that new construction between the years 2010-2015 will be similar to the 1,316 units that have been constructed during the past five years (2000-2005), and the 1,550 units that are expected to be constructed during the next five years (2005- 2010). Averaging these two five-year planning periods, new construction potential for the 2010-2015 is estimated to be 1,433 dwelling units. GQCI _.35j Redevelopment Agency of the City of Redlands 4.2.3 AFFORDABLE HOUSING PRODUCTION As mentioned above, there have been 171 affordable residential units constructed within the Project Area since the beginning of the Affordable Housing Program in 1995. Table 4 below summarizes the housing activity from 2000- 2005 Table 4 Implementation Plan-Redlands Redevelopment Project HOUSING ACTIVITY PRODUCTION—2000 to 2005 .- Constructed Income/Affordability. Category2000-2005 Very Low 10 Low 37 Moderate 10 Upper 0 Total 57 4.2.4 REPLACEMENT HOUSING NEEDS In the event that dwelling units affordable by low- or moderate-income households are destroyed or otherwise removed from the housing stock (e.g., converted to an office or a shop) in the Project Area, then the Agency must replace these units in four years with equivalent or better units. This requirement applies only if the development project in question is subject to a written agreement with the Agency or if financial assistance has been provided by the Agency. Unassisted private development in the Project Area does not trigger this requirement. The Agency has entered into written agreements to provide assistance for two developments in the Project Area that would result in the removal of affordable low- and moderate-income units from the housing stock: The subject properties are located at 604 and 608 3rd Street (Urban Downtown Hotel and Mixed-Use Project), and 607 W. Stuart Street (Promenade Retail Center Project). Agency staff has prepared Replacement Housing Plans pursuant to CRL Section 33413.5 for the subject properties. The Agency GQC 36 Redevelopment Implementation Plan/Housing Compliance Plan is expected to conduct public hearing on the Replacement Housing Plans on or about August 1, 2006. • Promenade Retail Project: This project will remove one unit of housing with two bedrooms at 607 W. Stuart Street, previously affordable to one very low-income household. • Urban Downtown Hotel and Mixed-Use Project: This project will remove two units of housing with two bedrooms each at 604 and 608 3rd Street. Both of these units are currently rented to very low-income households. The Agency is also aware of potential development proposals that would displace between 1.5 to 20 households in the vicinity of 3rd Street and Pearl Avenue, and another 5 to 8 units elsewhere in the Project Area. Upon formal receipt of the development proposals, if any, the Agency will conduct and prepare the appropriate replacement housing studies and reports pursuant to CRL requirements. Table 5, below, summarizes the Agency's current replacement housing obligations during the period of this Implementation Plan, if the houses are removed or destroyed as contemplated. Table 5 Implementation Plan-Redlands Redevelopment Project REPLACEMENT HOUSING OBLIGATIONS-2005 to 2010 ---- Number of -! s• • i.i Housing Planned to be Removed or to be Replaced within 4 Years of Destroyed Removal or Destruction 607 W. Stuart Street 2 Very Low-Income 6043 d Street 2 Very Low-Income 608 3rd Street 2 Very Low-Income Total Bedrooms to be Replaced 6 Very Low-Income The Agency has plans for housing projects within the Project Area that may fulfill the requirements of replacing the housing removed or destroyed: GIC 37 Redevelopment Agency of the City of Redlands • Highland Development Company Project: Conversion of 40 - 60 unit market-rate apartments to 30 - 45 affordable townhouse units by western part of Project Area by July 2008. • "The District" proposal adjacent to Tri-City Shopping Center: Mixed-use development to include 100 - 140 affordable apartments with some senior affordable units in western part of Project Area by December 2008. • First-time Homebuyer Assistance Loan Program: Program is planned to assist 10 first-time homebuyers in fiscal year 2006-20071 to purchase a home in the City; location to be in or outside of Project Area. Program preference is for displacees from project activities. An additional suitable geographic area is the eastern zn portion of the Project Area between Downtown and the T-10 Freeway. 4.3 HOUSING GOALS AND OBJECTIVES The purpose of the Low- and Moderate-Income Housing Fund is to increase, improve, and preserve the community's supply of low- and moderate-income housing at affordable costs. In meeting this purpose, the Agency/City will focus on achieving a number of goals during the Implementation Plan period. These goals are designed to achieve the Agency's expenditure requirement, are in conformance with the goals and priorities identified in the City's flousing Element: GOAL 1: Expand the supply of housing in accordance with the land use designations and policies in the Land Use Element. GOAL 2: Promote and encourage the provision of adequate housing to meet the needs of the community. GOAL 3: Promote and encourage the rehabilitation of deteriorated dwelling units and the conservation of the currently sound housing stock. GOAL 4: Promote and encourage housing opportunities accessible to employment centers, quality community centers, and quality community services for all economic segments of the community, regardless of race, color, Redevelopment Implementation Plan/Housing Compliance Plan national origin, ancestry, religion, disability, sex, familial status, or marital status. 4.4 PROJECTED HOUSING NEEDS Future housing needs for the City have been established by the SCAG 2000-2005 Regional Housing Needs Assessment. Table 6, below, summarizes these housing needs, by income group. Table 6 Implementation Plan-Redlands Redevelopment Project PROJECTED CITY-WIDE HOUSING NEEDS i I I Income/Affordability Category Number of Units Needed Very Low 353 Low 289 Moderate 388 Upper 901 Total 1,931 For the purposes of this Implementation Plan, affordable housing goals focus primarily on very low and low-income household needs. As, demonstrated in Table 6, above, the City Redlands affordable housing need (very low and low- income only) is for 642 units. To date, Agency efforts have resulted in provision of 171 new affordable housing units. Using the SCAG RHNA numbers as a guide for future needs, the affordable housing production goals for the next ten years would be 471 units (calculated from the SCAG provided 642 very low and low income units, minus the 171 units already provided by the Agency). City-Wide Affordable Housing Production Needs: 2005-2009 Of the 471 affordable housing units needed during the next ten years, approximately 236, or 50%1, are expected to be constructed between the years 2005-2009. As indicated GQC1 39 1 Redevelopment Agency of the City of Redlands above, the City currently has plans for 200 multifamily dwellings units, 160 of which would be senior housing units developed through a density bonus agreement with the City. These 160 senior units are expected to meet the affordable housing requirements of this Implementation Plan, leaving a remaining affordable housing production need for the 2005-2009 planning period of 76 units. Table 7, below, summarizes the City's 5 and 10 year affordable housing production needs. City-Wide Affordable Housing Production Needs: 2010-2015 Of the 471 affordable housing units needed during the next ten years, approximately 235, or 50%, are expected to be constructed between the years 2010-2015. The Agency will endeavor to assist the City in meeting this goal through the continued efforts of its Affordable Housing Program, and through City zoning and density bonus provisions. Table 7 Implementation Plan-Redlands Redevelopment Project AFFORDABLE HOUSING PRODUCTION NEEDS—2005 to 2015 Ten-Year Affordable Housing Unit �I�i �i ii l SII I�I�I of Units -._. Needs Five Year Need(2005-2009) 236 Units Planned(Senior Housing) (161) Remaining Five Year Need 76 Five Year Need(2010-2015) 235 Total Ten Year Affordable Need 471 4.5 HOUSING PRODUCTION PLAN To address the above identified housing needs, the City Housing Element has outlined the following programs: • First Time Home Buyer/Shared Equity Program: The first time home buyer program assists low- and moderate-income first time home buyers to qualify for home ownership. Redlands works cooperatively with San Bernardino County and Neighborhood Housing GRC 40 Redevelopment Implementation Plan Housing Compliance Plan Services, allowing the Agency to eliminate administration costs, assist more families, and ensure the needs of Redlands residents are met. The Agency expects to contribute approximately $750,000 over the remaining term of this Implementation Plan. At an average of $75,000, the Agency can provide down payment assistance to ten (10) qualified households who have lived or worked in Redlands for a minimum of one year. • Developer's Assistance/Participation Program: This program is intended to assist in the development of new housing for special needs groups. The Agency will continue to participate with private sector for-profit and non-profit housing developers to construct a mix of affordable housing both within the project area and city- wide. Affordable units developed pursuant to construction agreements between the developers and the Agency, will restrict the affordability to specified income levels for periods up to 45 years. The City has worked with many agencies, including Habitat for Humanity, who will construct infill housing in target neighborhoods. Based upon anticipated expenditures of 85.85 million for this program during the term of this n Implementation Plan, the Agency expects to assist in Z-1 the construction of 70 to 80 units, for an average zn expenditure of about $83,500 to $73,000 per unit. • Great Neighborhoods Rehabilitation Program: This program is designed to address the needs of low- and moderate-income households in need of financial assistance to maintain and/or make repairs to their property. This program is intended to improve the overall quality of residential areas, thus providing an immediate visual impact in blighted neiaThborhoods. During the term of this Implementation Plan. the Z__ Agency has already allocated $900,000 to this program for loans and grants to twenty (20) income eligible households, for an average assistance of $45,000 per case. Over the remaining term of this Implementation Plan, the Agency expects to allocate an additional $1.7 million to this program. Based on existing program experience and targeting approximately $45,000 per case, the Agency expects to provide assistance to an additional 37 households. • Emergency Grant Program: This program provides low-income homeowners with financial assistance to eliminate conditions that constitute an immediate GIC Redevelopment Agency of the City of Redlands threat to the health and safety of the occupants. The program provides grants to homeowners who have occupied the residence for a minimum of one year. The grants, which do not to exceed $10,000, are forgivable after 5 years. During the term of this Implementation Plan, the Agency has contributed approximately $200,000 to this program to assist twenty households. Over the remaining term of this Implementation Plan, the Agency expects to allocate an additional $300,000 to this program. Based on existing program experience and a maximum level of assistance of$10,000 per case, the Agency expects to provide assistance to an additional 30 households. Through implementation of these programs, the City has provided for construction of approximately 57 affordable units during the 2000-2005 period. Based on City development trends, an additional 40 affordable units could be constructed through 2009. Based on the projections included in Table 8, the Project Area should generate an estimated $15 million in low- and moderate-income housing fund revenues through 2009. z1_ This funding, in addition to other possible sources of funding identified below, is expected to be sufficient to fund total calculated housing production requirements. r� 43.1 INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS In accordance with Section 33413(d)(1), as a pre-1976 Project Area with no post-19716 Section 33333.10 amendments to extend the time limit on effectiveness of the plan, or post-1976 amendments to expand the Project Area, the Project Area is not subject to Inclusionary Housing Production Requirements. 4.6 HOUSING SET-ASIDE OBLIGATION Pursuant to CRL requirements, this Implementation Plan must provide estimates of the amounts to be deposited into the Agency s Housing Set-Aside Fund during the ensuing five-year period. This Implementation Plan must also include an estimated number of units to be assisted by these funds during the same period. 2 GQC Redevelopment Implementation PlanlHousing Compliance Plan 4.6.1 REQUIREMENTS FOR THE USE OF HOUSING SET-ASIDE FUNDS The requirements for using housing set-aside funds are summarized as follows: • Eligible Uses: These funds can be used in many ways as long as they increase, improve, or preserve the supply of low- and moderate-income housing. Authorized uses include acquisition of land and buildings, construction of buildings, on-site improvements or off-site improvements; rehabilitation of buildings; paying a portion of the interest and principal on bonds issued to finance low- and moderate-income housing, the preservation of housing subsidized by federal, state, or local government and subject to conversion to market rate rental; the maintenance of the community's supply of mobilehomes` and provision of subsidies (under certain restrictions) for financing of housing. • Eligible Households: Funds must be spent on housing that is "available at affordable housing cost" to persons and households whose incomes do not exceed the low- and moderate-income level (maximum 120% of the area median income as established by HCD using I-IUD standards). • Targeting of Assistance: Agencies are required to spend the funds to assist very-low and lower income households in at least the same proportion as the total number Of Units needed in these two categories that are not being provided by other governmental programs bears the total number of units needed in the community for very-low, lower-, and moderate-income households. Note that this requirement is applicable over the life of the development project and does not have to be satisfied within a particular project that is assisted. As mentioned above, the Agency is exempt from the requirements of Section 33333.4 (very low and low-income targeted assistance) until December 31, 2014 as allowed in Section 33490(a)(2)(A)(iii). • Income Definitions: Very-low income and lower income definitions are based on the limits published by HUD for the Section 8 program and may differ from the applicable percentages (50% and 80% of median, respectively) because of special adjustments such as for high cost areas. • Affordable Housing Cost Definition. Rent (including utility allowances) cannot exceed the following amounts 43 GQC Redevelopment Agency of the City of Redlands adjusted for household size appropriate for a particular size unit: • Affordability Controls: Controls must be for the longest feasible time, but not less than fifteen (15.) years prior to 2002. For post-2001 housing projects, affordability controls are 45 years for single-family development, and 55 years for multi-family development. 4.6.2 PROGRAMS TO FUND HOUSING PRODUCTION PLAN Tax Increment for 2005-2009 During each of the next five years, tax increment funds available to the Agency are expected to increase. Table 7 outlines the expected funds. As required by the CRL, the Agency will set aside at least 20% of these funds toward the Housing Production Plan for the purpose of increasing, improving, and preserving the supply of affordable housing. 4.6.3 PROJECTED EXPENDITURES AND HOUSING SET-ASIDE FUND BALANCES As of June 30, 2005, the balance in the Housing Set-Aside Fund was $10,371,898, as shown in Table 8, below. Table 8 also shows the projected housing set-aside revenues over the next five years. The Agency is to use its housing set-aside funds for the Z!, major housing programs and activities such as those n identified in Section 4.5, above. GD-C 44 Redevelopment Implementation Plan/Housing Compliance Plan Table 8 Implementation Plan- Redlands Redevelopment Project PROJECTED LOW-AND MODERATE INCOME HOUSING FUND DEPOSITS Cumulative AnnualDeposit Deposits 6/30/05 Balance N/A $10,371,898 2005-2006 $891,923 $11,263,821 2006-2007 $917,967 $12,235,788 2007-2008 $944,772 $13,180,560 2008-2009 $972,359 $14,152,919 2009-2010 $1,000,752 $15,153,671 Source:City of Redlands. 4.6.4 EXCESS SURPLUS The Agency is required to spend, encumber or transfer any portion of the Housing Fund which is "excess surplus" to the local housing authority within five (5) years of the time the funds become excess surplus. Changes to the law brought by AB 1290 increase the amount subject to this requirement from the greater of$500,000 to the greater of$1,000,000 or the total of the funds required to be deposited in the Housing Fund during the preceding four (4) years. These excess surplus funds must be transferred within one year or spent or encumbered within two years. Due to the level of housing development and rehabilitation efforts expected to be undertaken by the Agency, excess surplus funds are not expected during the five-year term of this Implementation Plan. 4.6.5 OTHER FUNDING PROGRAMS Additional funding sources that may be available to the City and Agency to further implement the Housing Production Plan include: GQC 45 Redevelopment Agency of the City of Redlands Program #' Program # #n Eligible Activities 1. Federal Community Annual grants awarded to Acquisition Programs Development Block the City on a formula basis . Rehabilitation Grant(CDBG) for housing&community Homebuyer assistance development activities. Homeless assistance Administered by HUD. Public services Home Investment Grants that can be used for New construction Partnership Act various housing activities. . Acquisition and Rehabilitation (HOME) Funds must be used to 0 Homebuyer assistance assist low-income 9 Tenant-based assistance households. Administered # Planning by HUD. Section 8 Rental Rental assistance payments Rental assistance Assistance Program to owners of private market rate units on behalf of very low income tenants. Administered by HUD. Section 202 Grants to non-profit . Acquisition developers of supportive 0 Rehabilitation housing for the elderly. 0 New construction Administered by HUD. . Rental assistance • Support services 2. State California Housing CHFA sells tax exempt Homebuyer Assistance Programs Finance Agency bonds for below market rate (CHFA) Home loans to first-time Mortgage Purchase homebuyers. Program Program operates through participating lenders who originate loans for CHFA purchase. California Housing Below market rate financing New Construction Finance Agency offered to builders& Rehabilitation (CHFA) Multiple developers of multi-family Acquisition Rental Housing and elderly rental housing. Programs Tax exempt bonds provide below-market mortgage money. School Facility Fee Homebuyers receive down . Homebuyer Assistance Down Payment payment assistance in the Assistance Program form of a forgivable grant based on the amount of school facility fees the developer paid. GIC 46 Redeveiopment Implementation PlanlHousing Compliance Plan Program Type Program Name ription Eligi Low Income Housing Tax credits available to ° New Construction Tax Credit(L|HTC) individuals&corporations ° Rehabilitation that invest in low-income ~ Acquisition nfproperties from rental housing. Tax credits 20 to 150 units sold topeople with high tax liability, &proceeds are used Vmcreate housing. Multi-Family Housing Deferred payment loans for ° New Construction Program(MHP) new construction, w Rehabilitation rehabilitation&preservation ° Preservation ofrental housing. Administered byHCD. Downtown Rebound Funds tofacilitate infill ° Rehabilitation development&conversion ° Conversion ofcommercial buildings for live-work spaces. Administered byHCD. 3. LocaWCounty Redevelopment 20percent ofAgency tax ° New Construction Programs Housing Set-Aside increment funds are set- ° Rehabilitation Funds aside for affordable housing ° Acquisition activities. Mortgage Credit Income tax credits available ° Homebuyer Assistance Certificate(MCC) tofirst-time home buyers for Program the purchase ofnew o' existing single-family housing. Local agencies make certificates available. San Bernardino Bonds used tofinance the ~ New Construction County Mortgage development nimulti-family Revenue Bond houaingfor|mwer-& moderate-income households. 4. Private Federal National Loan applicants apply to ° Homebuyer assistance Resources/ Mortgage Association participating lenders for the ° Rehabilitation Financing (Fannie Mae) following programs: fixed Programs rate mortgages issued by private mortgage insurers; mortgages which fund the purchase& rehabilitation nf h low down-payment mortgages for single-family low- income&minority communities. �D� Redevelopment Agency of the City of Redlands Program Type Program Name Description Eligible Activities California Community Non-profit mortgage New Construction Reinvestment banking consortium Rehabilitation Corporation (CCRC) designed to provide long Acquisition term debt financing for affordable multi-family rental housing. Non-profit&for profit developers contact member banks. Federal Home Loan Direct subsidies to non- . New Construction Bank Affordable profit and for-profit Housing Program developers&public agencies for affordable low income ownership& rental projects Low Income Housing Non-profit lender offering Redevelopment costs Fund (LIHF) below market interest, short . Site acquisition term loans for affordable Construction housing in both urban& . Rehabilitation rural areas. Eligible applicants include non- profits&government agencies. Private Lenders The Community . Varies, depending on Reinvestment Act(CRA) individual program offered by requires certain regulated bank financial institutions to achieve goals for lending in low- &moderate-income neighborhoods. As a result, most of the larger private lenders offer one or more affordable housing programs, including first- time homebuyer, housing rehabilitation,or new construction assistance. 4.7 RELATIONSHIP TO HOUSING ELEMENT AND REGIONAL HOUSING NEEDS The Housing Element of the Redlands General Plan establishes general housing policies and programs for the City as a whole, including the Project Area. The Housing Element calls for Agency participation in meeting identified City-wide housing needs, including the use of redevelopment set-aside funds to provide affordable housing opportunities. This Implementation Plan GQC 48 i Redevelopment hTplementation Ran/Housing Compliance Plan g recognizest,that the Housing Production Plan is a kev mechanism to support the City's housing needs. By incorporating the Housing Plan, this Implementation Plan furthers the goals, objectives and policies of the Housing Element, and is thus consistent with the element. The development and/or preservation of affordable low- and moderate-income housing opportunities helps address regional housing needs by increasing the availability of local affordable housing opportunities. As shown in Table 5, above, SLAG has identified the Regional Housing Needs Allocation (RHA) for the City of Redlands. The housing production programs included in this Implementation Plan will result in the long-term addition of low- and moderate-income housing units to the region's housing stock and address, at least partially, the City's RHN.Z)L obligation. 4.8 AGENCY MONITORING PROCESS Monitoring is a required component of the affordable housing plan. Assessing progress in achieving non-housing goals is part of the annual budgeting and financial reporting process that already occurs. The mid-term review of the Implementation Plan, due between December 2006 and 2007, will provide an opportunity to review and monitor progress in meeting the Agency's goals. On an annual basis, the Agency will collect the following information on new construction: • Developer type (non.-profitorfor-profit) • Market g segment and type of housing (family, senior, Z� r, ownership, rental, etc.) • Number of newly constructed (or substantially rehabilitated) units • Number of restricted units by income category and program (e.g., low-income housing tax credit, CDBG, HOME,Agency-assisted, etc.) • Type of affordability covenant or restriction and time period The above information allows the Agency to determine whether affordable housing unit production goals are being met in a timely fashion. In addition, it assists the Agency in monitoring its progress in meeting goals established in the Implementation Plan. GQC149 Redevelopment Agency of the City of Redlands A second component of the monitoring process is to oversee that affordability of restricted units is maintained. The Agency is already required to collect the information indicated below as a part of its reporting on redevelopment housing activities to the Department of Housing and Community Development. In those instances where other finding programs, such as the California Housing Finance Agency or CDBG, already require this annual monitoring of restricted units, the Agency can obtain copies of existing information and avoid collecting additional data. The required information includes the following: • Affordable rental units: For each unit, the amount of rent charged, and the income and household size of the household occupant. This information must be certified by the occupant. • Affordable ownership units: If there is a change in ownership, the income and household size of the new owner needs to be verified. Information collected will be entered into the affordable housing database. It will be available for use when reports are required. 4.9 DEMOGRAPHICS According to data collected from the U.S. Census Bureau, the population of the City of Redlands in 2000, was 63,591, or which 55,610 (87.5%)were under 65 years of age. C 5.0 ADMINISTRATION OF THE IMPLEMENTATION PLAN The Redlands Redevelopment Agency shall be responsible for administering this Implementation Plan and for monitoring redevelopment activities or programs undertaken pursuant to the Redevelopment Plan. 5.1 PLAN REVIEW At least once within this Plan's five year term, the Agency shall. conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the adopted Redevelopment Plan and this Implementation Plan, and evaluating the progress of the Agency's redevelopment program. The public hearing shall be held no earlier than two years and no later than three years after the date of adoption of this Implementation Plan. Notice of the public hearing to review the Redevelopment Plan and this Implementation Plan shall be published pursuant Section 60603 of the Government Code and posted in at least four permanent places within the Project Area for a period of at least three weeks. Publication and posting of the notice shall be completed not less than 10 days prior to the date set for hearing. 5.2 PLAN AMENDMENT Pursuant to CRI, Section 33490, this Implementation Plan may from time to time be amended after holding a public hearing on the proposed amendment. CQC Redevelopment Agency of the City of Redlands 5.3 FINANCIAL COMMITMENTS SUBJECT TO AVAILABLE FUNDS The Agency is authorized to utilize a wide variety of funding sources for implementing the Redevelopment Plan. Such funding sources include, but are not limited to financial assistance from the City, State of California, federal government, property tax increments, interest income, Agency bonds secured by tax increment or other revenues, or any other legally available revenue source. Although the sources of revenue utilized by the Agency are generally deemed to be reliable from year to year, such funds are subject to legislative, program, or policy changes that could reduce the amount or availability of the funding sources upon which the Agency relies. In addition, with regard to the Agency's primary revenue source, tax increment revenues, it must be noted that revenue flows are subject to diminution caused by events not controlled by the Agency and which reduce the taxable value of land or improvements in the Project Areas. Moreover, the formulas governing the amount or percentage of tax increment revenues payable to the Agency, may be subject to legislative changes that directly or indirectly reduce the tax increment revenues available to the Agency. Due to the above-described uncertainties in Agency funding, the potential programs and activities described herein and the funding amounts estimated to be available are subject to modification, changes in priority, replacement with another project, or cancellation by the Agency. 5.4 REDEVELOPMENT PLAN CONTROLS If there is a conflict between this Implementation Plan and the Redevelopment Plan or any other City or Agency plan or policy, the Redevelopment Plan, or policy shall control. 2 GQC