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Home My WebLink AboutAG RPTS 2003 1015 REG RDA`( ESTABLISHED j t1, Iftr lFOIt Of Resolution No. 2003 -130 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, OCTOBER 15, 2003 7:00 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PUBLIC HEARINGS: A. Consider Moorpark Redevelopment Project - Midterm Update of the Five -Year Implementation Plan. Staff Recommendation: 1) Open public hearing, receive testimony, and close public hearing; and 2) Adopt Resolution No. 2003- (Staff: Steven Kueny) 5. PRESENTATION /ACTION /DISCUSSION: 6. CONSENT CALENDAR: A. Consider Adoption of a Resolution Revising the Moorpark Redevelopment Agency Funding for the Corporation Yard Project (Project 8041). Staff Recommendation: Adopt Resolution No. 2003- amending the Budget for this project. ROLL CALL VOTE REQUIRED (Staff: Kenneth Gilbert) Redevelopment Agency Agenda October 15, 2003 Page 2 7. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) C. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9) Mission Bell Plaza Phase II, LLC, a California limited partnership vs. Redevelopment Agency of the City of Moorpark (Case No. SCO28906) 8. ADJOURNMENT: Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action /Discussion item must do so during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at (805) 517 -6223. In compliance with the Americans with Disabilities Act, if you need special assistance to review an agenda or participate in this meeting, including auxiliary aids or services, please contact the City Clerk's Department at (805) 517 -6223. Upon request, the agenda can be made available in appropriate alternative formats to persons with a disability. Any request for disability - related modification or accommodation should be made at least 48 hours prior to the scheduled meeting to assist the City staff in assuring reasonable arrangements can be made to provide accessibility to the meeting (28 CFR 35.102- 35.104; ADA Title II). MOORPARK REDEVELOPMENT AGENDA REPORT TO: Honorable Chair and Board of ITEM 4 • A • CITY OF MOORPARK, CALIFORNIA Redevelopment Agency Meeting of /D -/5 x003 AGENCY ACTION: a o03 i o Directors FROM: Hugh R. Riley, Assistant Executive Direct Urban Futures, Inc., Advisors to the Moorpark Redevelopment Agency DATE: September 23, 2003 (Agency Mtg. of October 15, 2003) SUBJECT: MOORPARK REDEVELOPMENT PROJECT - MIDTERM UPDATE OF THE FIVE -YEAR IMPLEMENTATION PLAN BACKGROUND: On January 19, 2000, by its Resolution No. 2000 -90, the Agency adopted an Implementation Plan for the period 1999 to 2004 (the "Implementation Plan ") for the Moorpark Redevelopment Project. This was done pursuant to Section 33490(a)(1)(A) of California Community Redevelopment Law (CCRL, as codified in the Health and Safety Code, Section 33000, et seq.). The Implementation Plan outlines specific goals, objectives and programs adopted by the Agency for the five -year implementation period, 1999 -2004. DISCUSSION: As part of the continuing implementation process, CCRL Section 33490(c)(3) requires redevelopment agencies to conduct a public hearing during the term of each implementation plan. The purpose of the public hearing is to hear testimony from all interested parties regarding the redevelopment plan and the corresponding implementation plan and to participate in evaluating the progress of redevelopment projects. Additionally, the public is invited to help determine where a redevelopment agency stands in regard to meeting its respective housing "production" and "replacement" requirements as defined by CCRL. Urban Futures, Inc. has reviewed the Implementation Plan and, working with Agency staff, has prepared the Midterm Update. 000001. Moorpark Redevelopment Agency Agenda Report September 23, 2003 Page 2 The Midterm Update makes the following modifications to the Implementation Plan: A. Removes obsolete data. B. Adds new data to reflect new program expenditures and projects. C. Provides new tables to show accomplishments that have been achieved and are expected to occur during the remaining term of the Implementation Plan. Notice of the public hearing has been given as required by law. In accordance with CCRL requirements, the Midterm Update is now ready for public hearing and consideration by the Agency for approval. STAFF RECOMMENDATION: 1. Open public hearing and receive testimony; close the public hearing. 2. Adopt Resolution No. Attachments: Resolution No. Midterm Update to the Five -Year Implementation Plan 1999 -2004 2 000002 RESOLUTION NO. 2003 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, ADOPTING THE MIDTERM UPDATE OF THE FIVE -YEAR IMPLEMENTATION PLAN 1999 -2004 FOR THE MOORPARK REDEVELOPMENT PROJECT WHEREAS, California Community Redevelopment Law (CCRL) (California Health and Safety Code, Section 33000, et seq.) Section 33490(a) (1) (A) requires 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 implement the requirements of CCRL Sections 33334.2, 33334.4, 33334.6 and 33413; and WHEREAS, CCRL Section 33490(b) requires that every agency, at least once within the five -year term of the plan, conduct a public hearing and hear testimony from all interested parties for the purpose of reviewing the redevelopment plan and the corresponding implementation plan for each redevelopment project within its jurisdiction and evaluating the progress of the redevelopment project(s); and WHEREAS, CCRL Section 33490(d) requires public hearing shall be published pursuant the Government Code and posted in at least fc within the project area for a period Publication and posting shall be completed days prior to the date set for hearing; and that notice of the to Section 6063 of Dur permanent places of three weeks. not less than ten WHEREAS, the Moorpark Redevelopment Agency (the "Agency ") adopted a redevelopment plan (the "Plan ") for the project area (the "Project Area ") prior to December 31, 1993; and WHEREAS, the Agency has prepared and adopted an implementation plan pursuant to requirements contained in CCRL Section 33490(a)(1) for the period 1999 -2004; and 000003 Resolution No. 2003 - Page 2 WHEREAS, the Agency has caused an update to the Implementation Plan (the "Midterm Update ") to be prepared, which update capsulizes the Agency's redevelopment efforts and successes since the Agency's adoption of the 1999 -2004 Implementation Plan in December, 1999, and which clarifies and updates the Agency's longer -term course of redevelopment plan implementation; and WHEREAS, the Agency has given notice as required by CCRL Subsection 33490(d); and WHEREAS, on October 15, 2003, the Agency conducted and concluded the previously referenced duly noticed public hearing. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Agency has duly held the required public hearing to hear public testimony of all interested parties for the purposes of reviewing the redevelopment plan, the corresponding implementation plan and the Midterm Update, and evaluating the progress of the redevelopment project. SECTION 2. Subsequent testimony which is reference. given, the Agency attached hereto to hearing and hereby adopts the and incorporated considering all Midterm Update, herein by this SECTION 3. This resolution shall become effective immediately upon its adoption. SECTION 4. The Agency Secretary shall certify to the adoption resolution of this resolution and shall cause a certified to be filed in the book of original Resolutions. PASSED AND ADOPTED this 15th day of October 2003. 11 . Resolution No. 2003 - Page 3 Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Attachment: Midterm Update of the Five -Year Implementation Plan 1999 -2004 000005 Moorpark Redevelopment Agency MID -TERM UPDATE OF THE FIVE -YEAR IMPLEMENTATION PLAN 1999 -2004 THE MOORPARK REDEVELOPMENT AGENCY prepared by URBAN FUTURES, INC. 3111 N. Tustin Avenue, Suite 230 Orange, CA 92865 (714) 283 -9334 September 2003 000006 TABLE OF CONTENTS Page 1.0 INTRODUCTION ....................... ............................... 1 1.1 Overview and Requirement for an Implementation Plan .................. 1 1.2 Midterm Public Hearing ............ ............................... 2 2.0 HISTORY OF THE AGENCY; DEVELOPMENT ACTIONS; SPECIFIC GOALS AND OBJECTIVES; AND ACCOMPLISHMENTS .. ............................... 2 2.1 Historical Overview ................ ..............................2 2.2 Summary of Development Actions .... ............................... 3 2.3 Agency Goals and Objectives ....... ............................... 5 2.4 Summary of Agency Accomplishments: 1999 -2002 ...................... 6 3.0 UPDATED AGENCY GENERAL FUND PROGRAMS AND RELATED EXPENDITURES (1999 to 2004) .......... ............................... 8 3.1 Review of Actual Income and Expenditures in the General Redevelopment Fund: FY 1999 -00 through FY 2001 -02 .................. 8 3.2 Review of Projected Income and Expenditures in the General Redevelopment Fund: FY 2002 -03 and FY 2003 -04 .................... 10 3.3 Conclusions ...................... .............................10 4.0 STATEMENT THAT PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT WITHIN THE PROJECT AREA .... ............................... 10 5.0 AGENCY PRODUCTION, IMPROVEMENT AND PRESERVATION OF AFFORDABLE HOUSING ............... ............................... 11 6.0 CCRL SECTION 33413(b)(4) COMPLIANCE PLAN .......................... 12 6.1 Existing Housing Tabulations through FY 2001 -02 ..................... 12 6.2 Projected Housing Tabulations FY 2002 -03 through FY 2003 -04 .......... 18 6.3 Consistency with City's General Plan Housing Element .................. 25 7.0 UPDATED AGENCY LMI FUND PROGRAMS AND RELATED EXPENDITURES (1999 to 2004) ........................ ............................... 26 7.1 Review of Actual Income and Expenditures in the LMI Fund: FY 1999 -00 through FY 2001 -02 ....... ............................... 26 7.2 Review of Projected Income and Expenditures in the LMI Fund: FY 2002 -03 and FY 2003 -04 ............ .............................26 7.3 Excess Surplus ................... .............................27 7.4 Fair Share Housing Allocation ...... ............................... 27 7.5 Conclusions ...................... .............................29 8.0 UPDATED PROJECTS ................. ............................... 30 9.0 TEN -YEAR AND LIFE -OF- THE -PLAN HOUSING REQUIREMENTS ............. 30 10.0 CONCLUSION ......................... .............................31 ZAON, Active\ Moorpark \005\lmpPlanUpdate2003.v09.wpd I les9/19/03 000007 LIST OF TABLES Table Pat 1 Redevelopment Plan History .............. ............................... 2 2 Blight Conditions Remaining Within the Project Area .......................... 3 3 Goals' Nexus to Blight Elimination (Post -AB 1290) ............................ 8 4 Updated Actual and Budgeted General Redevelopment Fund Program Expenditures . 9 5 Program and Expenditures' Nexus to Blight Elimination ....................... 11 6 Updated Total Units Destroyed or Removed by the Agency Inside the Project and Inventory of Replacement Dwelling Units Provided ........................... 14 7 Updated Actual Total Units Developed and Substantially Rehabilitated Inside Project Areaby Agency ......................... .............................15 8 Updated Actual Total Units Developed and Substantially Rehabilitated Outside Project Area by Agency ................... .............................16 9 Updated All Non - agency Developed and Substantially Rehabilitated Dwelling Units Within the Project Area ................. ............................... 17 10 Updated Estimated Number of Units to Be Destroyed or Removed Inside Project Area by Agency and Estimated Number of Replacement Dwelling Units ........... 20 11 Updated Estimate of Total Units to Be Developed and Substantially Rehabilitated Inside Project Area by Agency ............ ............................... 21 12 Updated Estimate of Total Units to Be Developed and Substantially Rehabilitated Outside Project Area by Agency .......... ............................... 22 13 Updated Estimate of All Non - agency Developed and Substantially Rehabilitated Dwelling Units Within the Project Area ..... ............................... 23 14 Summary Totals of Housing Requirements ........................... I ..... 24 15 Updated Actual and Estimated Lmi Fund Program Expenditures ................ 28 16 Fair Share Housing Allocation 1998 -2005 ... ............................... 29 LIST OF FIGURES Number Page Project Area Map ........................ ..............................4 APPENDICES Appendix A — Goals from the Initial Implementation Plan Appendix B — Changes to Affordable Housing Requirements Effective January 1, 2002 Appendix C — Summary of Agency Programs and Activities Appendix D — Inclusionary and Replacement Requirements from the Implementation Plan Z QQPIr. Actrve\Moorpark\005\impP,anUpdate2003. v09. wpd 11 jes9 /19M MIDTERM UPDATE TO THE FIVE -YEAR IMPLEMENTATION PLAN 1999 -2004 MOORPARK REDEVELOPMENT AGENCY 1.0 INTRODUCTION 1.1 Overview and Requirement for an Implementation Plan On January 19, 2000 by its Resolution No. 2000 -90 the Moorpark Redevelopment Agency (the "Agency ") adopted its implementation plan for the term 1999 -2004 (the "Implementation Plan ") pursuant to Section 33490 of the California Community Redevelopment Law ( "CCRL," being Section 33000 et. seq. of the California Health and Safety Code). The Implementation Plan, prepared pursuant to CCRL Section 33490(a)(1), outlines specific goals, objectives, and implementation programs for the five -year implementation period, 1999 -2004. The Agency had previously adopted its initial implementation plan (the "Initial Implementation Plan ") on December 7, 1994 by its Resolution No. 94 -31 for the period from 1994 to 1999. The Agency subsequently updated that plan after a public hearing on December 17, 1997 by its Resolution No. 97 -66. The requirement for an implementation plan reflects a strong legislative concern that redevelopment activities should be connected with and designed to reduce or eliminate the blight that justified adoption of the redevelopment plan in the first place. Each redevelopment agency is required to adopt an implementation plan each five years, in addition, at least once during the five -year period, a public hearing on the implementation plan is required. Among other requirements, the CCRL requires that an implementation plan describe specific goals and objectives of the agency for the project area, specific programs, including potential projects and estimated expenditures to be made during the next five years, and explain how these goals, objectives, programs and expenditures will eliminate blight remaining in the project area(s) and implement the requirements of CCRL Sections 33334.2, 33334.4, 33334.6 and 33413 including how the agency will implement both the requirement to increase, improve and preserve low- and moderate - income housing and satisfy its inclusionary housing requirement.' In addition, the section of the implementation plan addressing the Low and Moderate Income Housing Fund (the "LMI Fund ") is required to describe the amount of funds available in the LMI Fund and the estimated amounts which will be deposited into the LMI Fund during each of the next five years, as well as estimates of the expenditures of monies from the LMI Fund during each of those five years. Also, if an implementation plan contains a project that will result in the destruction or removal of low- or moderate - income housing which must be replaced pursuant to CCRL Section 33413(a), the agency is required to identify, in the implementation plan, the proposed locations suitable for those replacement dwellings pursuant to CCRL Section 33413.5. ' CCRL Section 33413 (b)(1) and (b)(2), the inclusionary rule, specifies that 30% of dwelling units developed by the Agency within the project area need to be available to low and moderate income persons and families. The inclusionary rule also specifies that 15% of new or substantially rehabilitated units developed within the project area under the jurisdiction of the agency by public or private entities, shall be available to low and moderate income persons or families. Z.`OOP!r AcLve\ Moorpark \005\IWP;anUptlate2003.v09.wpo 1 les9/19/03 1.2 Midterm Public Hearing CCRL Section 33490(c) requires each redevelopment agency to hold a public hearing and hear testimony from all interested parties for the purpose of reviewing the redevelopment plan and the then current implementation plan, evaluating the agency's progress in implementing the then current implementation plan, and determining where the Agency stands in regards to meeting its affordable housing "production" and "replacement" requirements as defined by the CCRL. This review must occur at least once within the five -year term of the implementation plan. This update should occur no earlier than two years and no later than three years after the adoption of the implementation plan. This Midterm Update to the Implementation Plan (the "Midterm Update ") has been prepared by Urban Futures, Inc. (UFI) under contract to the Agency pursuant to appropriate portions of the CCRL. This document's function is to facilitate the midterm review and evaluation of the Agency's Implementation Plan during the above described public hearing. Information contained in this Midterm Update is based on a review of Agency reports and budgets, as well as discussion with Agency staff. For FY1999 -2000, FY 2000 -2001, and FY 2001- 2002, UFI used actual audited financial reports; for FY 2002 -2003 UFI used projected numbers from the FY 2003 -04 budget, and for FY 2003 -04 UFI used the adopted Agency budget for that year. 2.0 HISTORY OF THE AGENCY; DEVELOPMENT ACTIONS; SPECIFIC GOALS AND OBJECTIVES; AND ACCOMPLISHMENTS 2.1 Historical Overview The City Council of the City of Moorpark (the "City Council" and the "City" respectively) activated the Agency on March 18, 1987 by its Ordinance No. 87 for the primary purpose of eliminating blight and stimulating the City's economic base. Growth would occur primarily through the development of new public improvements, commercial and industrial projects, and affordable housing. The City Council adopted the Redevelopment Plan for the Moorpark Redevelopment Project (the "Redevelopment Plan" and the "Project" respectively) in 1989. Table 1 shows the history of the Agency and the Redevelopment Plan. TABLE 1 REDEVELOPMENT PLAN HISTORY Agency Activated: March 18,1987 Plan Adopted: July 5, 1989 Ordinance No. 87 Ordinance No. 110 Term of Plan 40 Years (2029) Total Project Area (in acres) 1,217 acres Base Year' 1988 -89 ' Refers to the base year for the purpose of allocating taxes In the redevelopment area Z.40PIn AV uve\ Moorpark\005\ImpPianUpdate2003 .v09.wpd 2 les9 /19/03 000010 The City Council established the location and boundaries of the area of the Project (the "Project Area" shown in Figure 1) because it found that the deleterious conditions within these boundaries were sufficient to warrant the use of redevelopment powers. These conditions, with the exception of improvements caused by implementation of Agency - sponsored projects and programs and projects that have been implemented without Agency assistance, remain substantially the same as when the Redevelopment Plan was adopted. It has been the Agency's intent to focus on the remedy of blight conditions within the Project Area during implementation of the Redevelopment Plan. While the Agency's activities have addressed a number of blighting conditions within the Project Area, many of the blighting conditions that existed at the time of adoption of the Redevelopment Plan still exist within the Project Area. The Agency intends to continue its efforts to ameliorate the blighting conditions that remain within the Project Area by continuing to implement the Redevelopment Plan "Development Actions" outlined in Section 2.2 of this Midterm Update and the Agency's "Goals and Objectives" as outlined in Section 2.3 of this Midterm Update. The blighting conditions in the Project Area included physical and economic blight as shown in Table 2 below: TABLE 2 BLIGHT CONDITIONS REMAINING WITHIN THE PROJECT AREA' BLIGHT DEFINITION PHYSICAL ECONOMIC CCRL Section 33031(a) CCRL Section 33031(b) Deficient, Deteriorated, or Dilapidated Buildings Prevalence of Economic Maladjustment Older or Obsolescent Buildings Prevalence of Depreciated Values and Impaired Investments Mixed and Incompatible Buildings And Land Uses Parcels with Irregular Form, Shape and Size Includes inadequate public improvements per CCRL Section 33030(c) 2.2 Summary of Development Actions Section 400 of the Redevelopment Plan contains the development actions which the Agency will utilize to "eliminate and prevent the spread of blight in the Project Area ". These development actions are summarized below; a full list of these actions is found on pages 2 and 3 of the Redevelopment Plan. Improvements to the public infrastructure Acquisition and disposal of real property Z:\OGPln A; tive\ Moorpark\005\lmpPlanUpdate2003 .v09.wpd 3 les9/19/03 000011 NAP Not a Part ZZ City of Moorpark Redevelopment Project Adopted by Resolution 89-3 (2-2-89) FIGURE 1 ,�: , -*��-11 Project Area Map. 1000 0 1000 2000 3000 Feet Redevelopment of residential, commercial, or industrial land by private or public entities, including the financing thereof Rehabilitation of structures or development of vacant land, as appropriate by owners Other actions "as may be permitted by law" 2.3 Agency Goals and Objectives CCRL Section 33490(a)(1) states that an implementation plan shall contain an agency's specific goals and objectives for the project area. The Agency adopted two goals and several objectives as a part of the Initial Implementation Plan. A complete list of these original goals is attached as Appendix A to this Midterm Update. Since a number of the objectives were successfully addressed during the term of the Initial Implementation Plan, the Agency identified and adopted an alternative set of goals and objectives for the Implementation Plan. Based upon conversations with Agency staff, it is proposed that these goals and objectives be maintained through the Midterm Update process, with some modification to these goals occurring, as appropriate, during the preparation of the 2004 -2009 implementation plan. The goals and objectives already adopted as a part of the Implementation Plan and proposed for re- adoption as a part of the Midterm Update are provided below. GOAL NO. I: ENCOURAGE AND AID ECONOMIC DEVELOPMENT IN THE PROJECT AREA OBJECTIVES: 1.1 Improve the economic position of the downtown area. 1.2 Provide resources for establishing new and retaining and expanding existing commercial and industrial businesses in the Project Area. GOAL NO. II MAKE IMPROVEMENTS TO PROJECT AREA INFRASTRUCTURE AND PUBLIC FACILITIES WHICH BENEFIT THE PROJECT AREA OBJECTIVES 11.1. Provide funding, as appropriate and feasible, for public facilities, such as parking facilities, which serve properties in the Project Area. 11.2 Continue funding for infrastructure improvements in the public way (including sewer, storm drain, water systems and surface improvements) which benefit the Project Area. 11.3. Reduce traffic congestion, improve public safety, and reduce parking deficiencies within the Project Area. 11.4. Expand Area of Poindexter Park. 11.5. Provide funding, as appropriate and feasible, for public service facilities such as a library, senior center and public safety facility. Z \00PIn A t ivexMOOrparkt005\IMDPIanUDDate2003 .v09.wpa 5 te59119l03 000013 GOAL NO. III INCREASE THE SUPPLY OF VERY LOW -, LOW- AND MODERATE - INCOME HOUSING OPPORTUNITIES. BOTH FOR OWNERSHIP AND RENTAL MARKETS OBJECTIVES 111.1 Promote and participate in public /private partnerships with non - profit and for profit developers and/or property owners to rehabilitate existing rental units for very-low and low- income households. 111.2 Develop and implement owner - occupied, revolving loan program(s) for low- and moderate - income households. 111.3 Increase the number of senior rentals at all income levels. 111.4 Work with property owners and the development community to identify in fill parcels and to develop housing units for very low -, low -, and moderate - income households. 111.5. Work with the City to require new developments outside of the Project Area to assist the Agency in meeting the Goal by contributing financing and /or inclusionary units intended for low- and moderate - income households. Please note that changes to affordable housing requirements which were approved by the state legislature and were made effective on January 1, 2002 may affect the way in which the Agency implements its Goal No. III ( "Increase the Supply of Very Low -, Low- and Moderate Income Housing Opportunities both for Ownership and Rental Markets ") in the future and may also affect the City's Housing Element of the General Plan. As a matter of information only, a summary of these legislative changes in provided in Appendix B of this Update. 2.4 Summary of Agency Accomplishments: 1999 -2002 Since adoption of the Redevelopment Plan and to date, the Agency has, both unilaterally and through participation in joint public /private partnerships, facilitated a number of successful projects directed towards meeting the development actions set forth in the Redevelopment Plan and listed above, as well as the goals and objectives listed in the Initial Implementation Plan and the Implementation Plan, also listed in Appendix A and above. The reader is referred to Table 2 (pages 5 and 6) of the Implementation Plan for a listing of the programs and projects which the Agency accomplished prior to 1999, the date of adoption of the Implementation Plan. Agency activities that have occurred since the Implementation Plan's adoption have conformed with the objectives associated with the adopted goals of the Agency. Economic Development efforts have been in two distinct categories: Downtown Revitalization and Business Development and Retention. These two programs specifically advance Goals I (Objective 1 and 2), and II (Objective 5). The discussion below outlines the important achievements the Agency has made pursuant to its adopted Goals and Objectives. • In November 2001, the City Council approved the Moorpark Civic Facilities Development and Financing Plan designating sites, design considerations and financing sources for a new City Hall and Civic Center, Police Services Center and Public Works /Parks Department Corporation Yard. In April 2002, the Agency approved an agreement with the Ventura County Fire Protection District to trade the Z ^.Q0P1n Active\ lcorpark' .005`.ImpPianUptlate2003.v09.wpc 6 jes9119iO3 000014 District's Station 42 property on Moorpark Avenue for Agency owned property on High Street. This trade allows the County to proceed with construction of a new District Fire Station on High Street. In March 2003, the City Council approved a plan to acquire and develop a two acre site on Spring Road south of High Street with 28,000 square feet of new construction to locate a medical clinic and various human services offices and facilities. The concentration of these new facilities in the downtown area (directly south of the High Street Corridor) is a major commitment to the revitalization of Moorpark's downtown. Approximately $3.5 million has been spent to date on the creation of these new facilities. • In December 2001, the Agency issued $11 million in tax - exempt tax increment bonds to assist with the land acquisition for the above facilities and the construction of the Police Services Center as well as other downtown infrastructure improvements. • The Agency established a formal business assistance program through a service contract with the Economic Development Collaborative of Ventura County in July 2001. The program provides professional consulting services for business plans, financial advice and other services to assist businesses with expansion or adjustments to changing conditions. • The City has adopted an ordinance reducing the parking requirement by 50% in the downtown area. Additionally, the City has established an in -lieu fee per parking space for business to buy in to public parking at a fixed rate of $3,000 per space. This permits a new or expanding business to satisfy its parking requirements with off -site parking. Projects and programs either initiated after, or continued beyond, 1999 are more specifically set forth in Appendix C. Note that Appendix C includes 28 projects and programs in four categories (Downtown Revitalization, Economic Development, Housing Programs, and Housing Projects) that have been completed or are proposed for completion prior to the end of the Implementation Plan planning period, as well as ongoing programs. CCRL Section 33490(a)(1)(A) requires that each implementation plan prepared by an agency contain an "...explanation of how the goals and objectives... will eliminate blight within the Project Area...." Table 3 below shows the relationship between the Agency's specific five -year goals and objectives to the eradication of remaining blight, as defined in CCRL Sections 33030 and 33031, within the Project Area. As a part of the update process, this table was reviewed. The determination of nexus between the stated goals, and the physical and economic conditions they are intended to address remain binding; therefore, no changes are being made as a part of the update process. ZAOOPIn Achve`Moorpark \005 \ImpPianUpaata2003.v09.wpd 7 te59 /19M 000015 TABLE 3 GOALS' NEXUS TO BLIGHT ELIMINATION (POST -AB 1290)' PHYSICAL CONDITIONS ECONOMIC CONDITIONS INFRA- STRUCTURE Prevalence of Deficient, Mixed and Depreciated Deteriorated or Older or Incompatible Parcels with Prevalence of Values and GOALS FROM ORIGINAL Delaoiciate Obsolescent Bu:-d.ngs and Irregular Form, Economic Impaired Infrastructure IMPLEMENTATION PLAN' Buildings Buildings Land Uses Shape and Size Maladjustment Investments Def:c.encies Encourage and aid economic development in the Project Area • • • • Make improvements to the Project Area infrastructure and public facilities which benefit the • • Project Area Increase the supply of Very Low, Low -, and Moderate - Income Housing opportunities, both for • • • ownership and rental markets' Complies with CCRL Section 33490(a)(1)(A). ` Objectives are not shown here. For purposes of this matrix, attainment of Agency goals assumes realization, of each of those objectives previously defined in Section II of this Implementation Plan includes removal of obsolete structures for improvement of infrastructure 3.0 UPDATED AGENCY GENERAL FUND PROGRAMS AND RELATED EXPENDITURES (1999 to 2004) CCRL Section 33490(a)(1)(A) requires that the implementation plan prepared and adopted by each redevelopment agency contain "...the specific programs, including potential projects and estimated expenditures proposed to be made during the next five years..." Table 4 provides the update of actual and projected Agency program expenditures for the Implementation Plan period. Section 3.1 of this Midterm Update provides analysis of actual expenditures through FY 2001 -02 and Section 3.2 provides analysis of projected expenditures through FY 2003 -04. 3.1 Review of Actual Income and Expenditures in the General Redevelopment Fund: FY 1999 -00 through FY 2001 -02 Actual tax increment income increased steadily over the three fiscal years from $1,589,397 in FY 1999 -00 to $2,116,809 in FY 2001 -02, representing a 33 percent increase. However during this same time period total expenditures exceeded total receipts in each fiscal year. The Agency accommodated this intensive expenditure regime by drawing down from its reserves. By example, the "Yearly Beginning Balance" in FY 1999 -2000 was fully $7.7 million; this beginning balance had been reduced to $1.8 million at the beginning of FY 2001 -02. Not coincidentally, the Agency issued Z ".00PIn Actrve\Mooroar k1005umpPlar.UOdate2003.v09.wpd 8 les9/19103 000016 TABLE 4 UPDATED ACTUAL AND BUDGETED GENERAL REDEVELOPMENT FUND PROGRAM EXPENDITURES' (Fiscal Year 1999 -00 to 2003 -04) PROGRAM CATEGORY EXPENDITURES FISCAL YEAR 1999 -002 2000 -012 2001 -021 2002 -03' 2003 -04' Yearly Beginning Balances $7,761,484 $4,737,283 $1,822,075 $10,177,428 $5,763,373 Estimated Receipts A. Tax Increment $1,589,397 $2,033,520 $2,116,809 $2,766,623 $2,904,954 B. Interest Income $482,604 $579,760 $418,259 $498,000 $464,400 C. Bond Proceeds $10,000,966 D. Other $110,587 $140,884 $135,497 $152,225 $152,542 Total Available $9,944,072 $7,491,447 $14,493,606 $13,594,276 $9,285,269 Estimated Expenditures A. Capital Projects / Improvements $255,562 $1,240,741 $883,824 $3,533,037 $1,066,047 B. Administration $505,739 $294,429 $471,221 $830,841 $937,176 C. Debt Service $3,564,305 $2,767,770 $1,125,529 $2,126,210 $2,398,064 D. Other $881,183 $1,366,432 $1,835,604 $1,340,815 $2,560,000 Total Expenditures $5,206,789 $5,669,372 $4,316,178 $7,830,930 $6,961,287 Yearly Ending Balance $4,737,283 $1,822,075 $10,177,428 $5,763,373 $2,323,982 Complies with CCRL § 33490(a)(1)(A). 1 Based on audited financial statements. Based on projected FY 2002.03 figures from Agency's FY 2003 -04 Budget. ' Based on Agency's FY 2003 -04 Budget. O 0 0 0 Fi a tax allocation bond during this fiscal year with bond proceeds equal to S10 million, thereby replenishing the Agency's reserves. The bond proceeds allowed the Agency to continue projects already on the boards and fund those to be initiated in future years. As stated above, the Agency has successfully funded its capital projects and other improvements during FY 1999 -00 and FY 2001 -02. "Capital Projects /Improvements" in FY 1999 -00 equaled a little over a quarter of a million dollars; in FY 2000 -01 this amount increased to almost one and a quarter million dollars; in FY 2001 -02 expenditures in this line item had reduced to somewhat over three quarters of a million dollars. This irregular spending pattern is typical of an active Agency which is implementing various projects over various periods of time. A review of Appendix C of this Midterm Update will show the projects and programs implemented by the Agency which explains the expenditures identified in Table 4. The Agency finished FY 2001 -02 with a healthy $10.1 million yearly ending balance. 3.2 Review of Projected Income and Expenditures in the General Redevelopment Fund: FY 2002 -03 and FY 2003 -04 UFI has projected tax increments for FY 2002 -03 at $2,766,623 (based upon assessed valuation provided by Ventura County), increasing to $2,904,954 million in FY 2003 -04. Projected expenditures for these two fiscal years are based upon the 2003 -04 Budget. Because of the projected availability of increased tax increment funds and, more importantly, access to bond proceeds generated in FY 2001 -02, UFI is projecting the Agency could afford to finance the Downtown Revitalization Programs in FY 2003 -04. Additionally, according to Agency staff Agency money will be used for infrastructure improvements to the site of a new medical clinic located at Spring Road and High Street, and sidewalk improvements and repair in the downtown area along High Street and Moorpark Avenue.' As projected, the Agency should have a Yearly Ending Balance of slightly over $2.3 million in FY 2003 -04. 3.3 Conclusions As projected, the Agency will end the five -year term of the Implementation Plan with a balance in its general redevelopment fund of approximately $2.3 million. While this amount will provide a good "spring board" for Agency activities during the term of its third implementation plan which would cover the years 2004 through 2009, it may not be sufficient to accomplish public improvement and affordable housing goals during the term of the Agency's third implementation plan. Therefore, the Agency should consider additional tax increment financing to support these projects and to complete additional infrastructure improvements in the downtown area to support a public/ private partnership to develop the Agency owned land on High Street. 4.0 STATEMENT THAT PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT WITHIN THE PROJECT AREA CCRL Section 33490(a)(1)(A) requires that the implementation plan prepared by each agency provide an explanation of how the programs and expenditures will eliminate blight within the project 2 Infrastructure improvements are ongoing in thMS location and vnll continue through FY 2003 -04 Z100Piq Active\ Moorpark \009\I.7pPlanUpoate2003.v09 woo 10 ;es9n 9/03 000018 area. Table 5 shows the relationship of the proposed projects /program categories to the eradication of remaining blight, as defined in CCRL Sections 33031 of the CCRL, within the Project Area. TABLE 5 PROGRAM AND EXPENDITURES' NEXUS TO BLIGHT ELIMINATION' PHYSICAL CONDITIONS ECONOMIC CONDiTIONS STRUCTU I UCTU RE Prevalence of Deficient, Mixed and Depreciated Deteriorated or Older or Incompatible Lots of Irregular Prevalence of Values and Inadequate PROGRAMS & Dilapidated Obsolescent Buildings and Form, Shape Economic Impaired Public EXPENDITURES' Buildings Buildings Land Uses and Size Maladjustment Investments Improvements Infrastructure • • • • • Housing • • • • • • Economic Development • • • • • • • Programs Complies with CCRL Section 33490(a)(1)(A) 5.0 AGENCY PRODUCTION, IMPROVEMENT AND PRESERVATION OF AFFORDABLE HOUSING The following sections describe the regulatory framework for affordable housing production, improvement and preservation under redevelopment law and explain how the Implementation Plan must demonstrate compliance. One of the fundamental goals of redevelopment in California is the production, improvement and preservation of a participating community's supply of housing affordable to very low -, lower -, and low- and moderate - income households. This goal is accomplished, in part, through the execution of four different, but interrelated requirements imposed on redevelopment agencies by the CCRL. The requirements are: • An agency must use at least 20 percent of tax increment revenue to increase, improve and preserve the supply of very low -, lower -, and low- and moderate - income housing in the community (CCRL Section 33334.2); • An agency must replace, in equal or greater number, very low -, lower -, and low- and moderate - income housing units and bedrooms which are destroyed or removed as a result of a redevelopment project (the "replacement rule," CCRL Section 33413[a]); • An agency must ensure that a fixed percentage of all new or substantially rehabilitated dwelling units developed by an agency are affordable to very low -, low - and moderate income persons and families (the "inclusionary rule," CCRL Section 33413[b ][11); Z. \00PIn Ackve %Mocrpark�005UmpPianUpcare2003. v09.wpd 11 Ies9179,03 000019 • An agency must ensure that a fixed percentage of all new and substantially rehabilitated dwelling units developed within the project area by public or private entities or persons other than the Agency are affordable to very low -, low- and moderate - income persons (the "inclusionary rule," CCRL Section 33413[b][2]). Each of these four requirements is explained in detail on pages 13 through 16 of the Implementation Plan.3 Additionally, the Implementation Plan provides information on the definition of "affordable" housing, how long such housing must remain affordable, what should be included in the Agency's "compliance plan" relating to its "inclusionary" housing requirement, and how LMI Fund monies may be spent outside the Project Area. For those readers who may not have immediate access to the Implementation Plan, much of this information is provided in Appendix D to this Midterm Update. 6.0 CCRL SECTION 33413(b)(4) COMPLIANCE PLAN 6.1 Existing Housing Tabulations through FY 2001 -02 The information provided on Tables 7 through 10 presents an analysis of the Agency's compliance with CCRL affordable housing mandates through the end of fiscal year 2001 -02. The information contained in these tables, in concert with the other parts of this Midterm Update, ensure compliance with CCRL Sections 33490, 33413, 33334.2 and /or 33334.6, 33334.3 and 33334.4. The tables and discussion presented below and in subsequent sections of this Midterm Update represent what is required by law regarding affordability, replacement and inclusionary requirements established in the CCRL. Table 6: As shown in Table 6, as of June 30, 2002 the Agency had not removed any housing units from within the Project Area; however, it had anticipated the removal of up to 31 low- and moderate - income units from within the Project Area for the new Civic Center. It had therefore entered into an agreement with the developer of the Archstone Moorpark housing project to enforeably restrict 31 units as replacement units.° Table 7: As shown in Table 7, as of June 30, 2002, no affordable housing units had been developed or substantially rehabilitated inside the Project Area by the Agency. Table 8: As shown in Table 8, as of June 30, 2002 no affordable housing units had been developed or substantially rehabilitated outside the Project Area by the Agency. 3 Pages 13 -16 have been included in Appendix D of this document. Please note that CCRL Section 33413(a) provides only that replacement units be made available "within" four years of the destruction or removal of low- and moderate - income units. While the typical scenario has these units being provided after the removal of such units, there is no prohibition against providing these units before the other units are removed. The Archstone Moorpark affordable housing obligation is for a total of 62 units. Per Agency staff, a portion of these 62 units (31 units with 65 bedrooms) have been enforceably restricted in conformance with CCRL Section 33413(a) and 33413(c). Note that according to Agency staff, Agency legal counsel has determined that these units were income restricted pursuant to CCRL Section 33413. Z \OOPin Acuve\Moorpark,005`.i MPlanUpoate2003.v09.woo 12 jes9.!79/03 000020 Table 9: As shown in Table 9, prior to the adoption of the Initial Implemen- tation Plan, 15 non - Agency housing units had been developed in the Project Area and no units had been substantially rehabilitated, and no units had been restricted with covenants. As a result, the Agency had incurred an inclusionary housing "deficit" of 0.9 very low- income and 1.35 low- and moderate- income housing units. From FY 1994 -95 through FY 2000 -01 only a nominal number of housing units had either been built (a total of four such units) or substantially rehabilitated (a total of seven such units) by others within the Project Area. However, in FY 2001 -02 the Archstone Moorpark development added 312 units to the Project Area. As described above, 31 of these 312 units were earmarked for replace- ment housing; therefore, for calculation purposes only, 281 of these units are allocated in this Table 9 -- the balance are allocated in Table 6. Additionally one housing unit was substantially rehabilitated in the Project Area by non - Agency entities in FY 2001 -02. Of this total amount, and completely from within the Archstone Moorpark development, the Agency (for purposes of "inclusionary" credit only) income restricted thirty -one housing units for low- and moderate - income persons and families.5 As a result of this development at the end of FY 2001 -02, the Agency inclusionary requirement for very low - income households increased to 18.48 units, yet the low- and moderate -unit requirement had a "surplus" of 3.28 units. 5 Note that according to Agency staff, Agency legal counsel has determined that these units were income restricted pursuant to CCRL Section 33413. Z:\00PIr Actrve,Mocrpark \005 \ImpPlanUpdate2003.v09.wptl 13 les9 /19/03 000021. TABLE 6 UPDATED TOTAL UNITS DESTROYED OR REMOVED BY THE AGENCY INSIDE THE PROJECT AND INVENTORY OF REPLACEMENT DWELLING UNITS PROVIDED' PROJECT ADOPTION THROUGH JUNE 2002 NO OF UNITS DESTROYED NO. OF UNITS REHABILITATED, CUMULATIVE OR REMOVED AFFECTING 1 OTAL NO DESTRUCTION/ DEVELOPED, OR CONSTRUCTED""' DIFFERENCE FISCAL BEDROOMS REMOVAL (DEFICITt- t) /(SURPL0S(.j) YEAR DFSTROYED SUBJECT TO TOTAL NO BEDROOMS VERY _ LOW- LOW OME' IN LOWER INCOME' INMOMF' TOTAL" REMOVED (a,b)' VERY LOW INCOME LOWER INCOME LOW -MOD INCOME TOTAL PROVIDED" VERY LOW LOW-MOO BALANCE FORWARD' 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999 -00 IF-29 2000 -01 2001 -02 2 31 65 +29 +2 TOTAL Complies with CCRL Section 33413(a), (c), (d)(1), and 33334.5 The Agency shall require that the aggregate number of replacement Units remain available at affordable housing costs to persons and families of fow -, moderate -, and very low- income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2). ' Project Area adoption or January 1, 1976, whichever is later. As defined by Health & Safety Code Section 50105 ' As defined by Health & Safety Code Section 50079.5 ' As defined by Health & Safety Code Section 50093 " From low- or moderate- income housing market, as part of a redevelopment project If units are planned for destruction or removal, locations for suitable replacement units must be identified ' Replacement units must be provided within four years of removal or destruction. ° a. Written agreement with Agency. b. Financial assistance provided by Agency ' Within territorial jurisdiction of Agency, must be an equal number of replacement units as those destroyed or removed provided within 4 years of removal " When units are destroyed or removed after January 1, 2002, 100 percent of the replacement units shall replace dwelling units available at affordable housing cost in the same level of very low - income households, lower - income households, and persons and families of low- and mode rate - incorne, as the persons displaced from those displaced units. " Reference CCRL Section 33413(c) for applicable covenants. " Must he an equal or greater number of bedrooms as those removed or destroyed 0 N 14 TABLE 7 UPDATED ACTUAL TOTAL UNITS DEVELOPED AND SUBSTANTIALLY REHABILITATED INSIDE PROJECT AREA BY AGENCY' PROJECT AREA ADOPTION THROUGH JUNE 2002 TYPE OF CONSTRUCTION UNITS MADE AVAILABLE AT CUMULATIVE PROJECT AFFORDABLE HOUSING COST AREA S I Al US FISCAL. 1 2 3 VERY LOW' LOW - MODERATE' DEFICIT SURPLUS DIFFERENCE- YEAR (IF ANY) (IF ANY) (DEFICIT 1-1)/(SURPLUS l.j) NFW SUBSTANTIAL REHAB' REQUIRED TO ACTUAL nFOUIRED ACT (JAL SINGLE CONSTRUC- TION TOTAL BE 15% OF UNITS TO BE 15% OF UNITS VERY LOW LOW -MOD VERY tOW LOW -MOD VERY LOW LOW -MOD MUL TI- FAMILY FAMILY COLUMN 3 RESTRICTED COLUMN 3 RESTRICTED BALANCE FORWARD' 1994 -95 1995 -96 1996 -97 1997 -98 NO ACTIVITY 1998-99 1999 -00 2000 -01 2001 -02 TOTALS Compliance with Sections 33413(b)(1) & (c), 33490(a)(2)(A)(ii) & 33413(d)(1). The Agency shall require that the aggregate number of inclusionary units remain available at affordable housing costs to persons and families of low , moderate. and very low income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2) New and/or substantially rehabilitated units may be aggregated in one or more Project Areas, subsequent to findings pursuant to CCRL Section 3,3413(b)(2)(A)(v) The Agency may cause, by agreement or regulation, to be available, at affordable housing costs, to persons and families of low -, moderate- or very low- income households, two units outside the Project Area for each unit that otherwise would have had to be available inside the Project Area. If this provision is applicable inclusionary credit must be calculated accordingly in the % of units made available at affordable income levels Project Area adoption or January 1, 1976, whichever is later. Note that the Redevelopment Plan was adopted in 1991 and amended in 1995 Substantial Rehabilitation means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the dwelling, inclusive of the land Inclusionary obligation only arises when multi -family rental units with 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance. As defined by Health & Safety Code Section 50105 As defined by Health & Safety Code Section 50079.5. Low - Moderate as defined by Health & Safety Code Section 50093 Calculated on a cumulative year -to -year basis See Table 17.1 for projection of LMI Fund expenditures (CCRL Sections 33413(b)(1) and (2) and 33334 2 and /or 33334 6) 0 Q Q Q N Ca 15 TABLE B UPDATED ACTUAL TOTAL UNITS DEVELOPED AND SUBSTANTIALLY REHABILITATED OUTSIDE PROJECT AREA BY AGENCY' PROJECT AREA ADOPTION THROUGH JUNE 2002 TYPE OF CONSTRUCTION UNITS MADE AVAILABLE. AT AFFORDABLE HOUSING COST' CIIMIIIATIVF PROJECT AREA STATUS i 2 3 VERY l OW' LOW - MODERATE' DEFICIT (IF ANY) SURPL US (IF ANY) DIFF F -HENCE (DEFICIT .i( -) SURPLUS) FISCAL. YEAR NEW SUBSTANTIAL REHAB' iFOUIRF. D TO ACTUAL REQUIRED TO ACTUAL SINGLE CONSTRUC- TOTAL BE 15% OF UNITS BE 15% OF UNITS VERY I OW LOW MOD VERY LOW LOW MOD VERY LOW LOW MOD rION MULTI - FAMILY FAMII Y COLUMN 3 RESTRICTED COLUMN 3 RESTRICTED BALANCE FORWARD' 1994 -95 No Activity 1995 -96 1996 -97 1997 -98 1998 -99 1999 -00 2000 -01 2001 -02 Compliance with Sections 33413(b)(1) & (c), 33490(a)(2)(A)(ii) & 33413(d)(1) The Agency shall require that the aggregate number of inclusionary units remain available at affordable housing costs to persons and families of low -, moderate -, and very low- income households for the longest feasible tirne, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2) Agency must have made findings pursuant to CCRL Section 33334.2(g) to develop units outside Project Area. New and /or substantially rehabilitated units may be aggregated in one or more Project Areas, subsequent to findings pursuant to CCRL Section 33413(b)(2)(A)(v) The Agency may cause, by agreement or regulation, to be available, at affordable housing Costs, to persons and families of low -, moderate - or very low- income households, two units outside the Project Area for each unit that otherwise would have had to be available inside the Project Area. If this provision is applicable inclusionary credit must be calculated accordingly III the % of units made available at affordable income levels Project Area adoption or January 1, 1976, whichever is later. Substantial Rehabilitation means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the dwelling, inclusive of the land Inclusionary obligation only arises when multi- family rental units with 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance. As defined by Health & Safety Code Section 50105 As defined by Health & Safety Code Section 50079 5. Low - Moderate as defined by Health & Safety Code Section 50093 Calculated on a cumulative year -to -year basis. See Table 17 for projection of LMI Fund expenditures (CCRL Sections 33413(b)(1) and (2) and 33334.2 and /or 33334.6) O C) C) Q N 16 TABLE 9 UPDATED ALL NON - AGENCY DEVELOPED AND SUBSTANTIALLY REHABILITATED DWELLING UNITS WITHIN THE PROJECT AREA' PROJECT AREA ADOPTION THROUGH JUNE 2002 NON- AGENCY DEVELOPED UNITS MADF AVAILABLE UNI IS DEVELOPED BY OTHERS AT AFFORDABLE HOUSING COST CUMULATIVE PROJECT AREA STATUS VERY LOW' LOW' - MODERATE' FISCAL YEAR 1 2 3 REQUIRED TO ACTUAL IREOUIFIFU (O ACTUAI ANNUAL DEFICIT ANNUAL SURPLUS DIFFERENCE' NEW SUBSTANTIAL. REHAR' BE 6% OF UNITS BE 9% OF UNTI S OF ANY) (IF ANY) (DEFICIT (- ]y(SURPLUS hU CONSTRUE TOTAI (1 + 2) COLUMN 3) RESTRICTED COLUMN 3) RESTRICTED TION MULTI - FAMILY SINGLE FAMILY VFRY LOW LOW -MOD VERY LOW LOW -MOD VERY LOW LOW -MOD BALANCE FORWARD' 15 15 .9 1.35 .9 1.35 -.9 -1.35 1994 -95 19 1 28 .12 .18 .12 .18 -1.02 -1.53 1995 -96 1 1 .06 .09 .06 .09 -1.08 -1.62 1996 -97 1997 -98 2 2 .12 .18 .12 .18 -1.2 -1.8 1998 -99 3 3 .18 .27 .18 .27 -1.38 -2.07 1999 -00 2000 -019 3 3 .18 .27 .18 .27 -1.56 -2.34 2001 -02 281'0 1 282 16.92 25.38 31 16.92 5.62 -18.48 3.28 TOTAL 300 8 308 18.48 27.72 31 Complies with CCRL Section 33413(b)(2) & (c) & (d)(1). The Agency shall require that the aggregate number of replacement units remain available at affordable housing costs to persons arid families of low -, moderate -, arid very low- income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2). Data compiled and analyzed by Urban Futures, Inc., in conjunction with City /Agency staff. Project adoption "Substantial Rehabilitation" means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the unit, inclusive of the land value Inclusionary obligation only arises when multi - farnily rental units with 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance As defined by Health & Safety Code Section 50105 As defined by Health & Safety Code Section 50079 5 As defined by Health & Safety Code Section 50093 Calculated on a Cumulative year -to -year basis From Table 12 p. 25 of the Implementation Plan Source. Agency provided housing production within Project Area for FY 2000 -01 and FY 2001 -02 The Archstone Moorpark project constructed in FY 2001 -2002 had a total of 312 units of which 62 were deed - restricted for affordable housing Since 31 of these 62 deed - restricted units are earmarked to replace housing Units emoved by the Agency in FY 2002 -03 for the new Civic Center (please see Table 11) they are accounted for on Table 6 Q 0 0 Q N Ui 17 6.2 Projected Housing Tabulations FY 2002 -03 through FY 2003 -04 Tables 10 through 14 present an analysis of the Agency's housing assistance activities projected to occur within the next two years and a summary of the Agency's actual and projected housing assistance during the term of the Implementation Plan. The information contained in these tables, in concert with the other parts of this Mid -Term Update, ensure compliance with CCRL Sections 33490, 33413, 33334.2 and /or 33334.6, 33334.3 and 33334.4. The tables represent what is required by law regarding affordability, replacement and inclusionary requirements established in the CCRL and discussed at the beginning of this section of the Mid -Term Update. Table 10: As shown on Table 10, in FY 2002 -03 there were a total of 32 dwelling units removed from the affordable housing inventory in the Project Area (to construct the new Civic Center [30 units], provide access for the Fire Station [one unit], and eliminate dangerous nonconforming uses [one unit]) of which 21 were occupied by very low- income households, seven by lower- income households and four by low- or moderate - income households. Together these 32 dwelling units included 44 bedrooms. As shown on Table 6 (and shown as a "balance forward" in Table 10), the Agency has, within four years of the removal of these 32 dwelling units, allocated: i) in FY 2001 -02 a total of 29 replacement units to be occupied by very low- income households and two replacement units to be occupied by lower- income households; and ii) in FY 2002 -03 allocated one housing unit to be occupied by a very-low income household. As shown in the "TOTALS" row in Table 10, the Agency has completely met its current housing replacement obligation in all respects, i.e. a sufficient number of units with a sufficient number of bedrooms which are appropriately income restricted.' Table 11: As shown on Table 11, the Agency expects to develop three single family homes inside the Project Area on Agency -owned parcels. This development will create one very low- and two low- and moderate- income dwelling units. Since all of these units will be income - restricted pursuant to CCRL Section 33413, this development produced a surplus of 0.55 very low- income and 1.55 low- and moderate- income housing units for the Agency. Table 12: As shown on Table 12, the Agency does not anticipate developing or substantially rehabilitating any affordable units outside the Project Area. Table 13: Table 13 shows that non - Agency developed and substantially rehabilitated units within the Project Area are projected to increase by an additional 454 units during the remaining two years of the term of the Implementation Plan. As described above, new construction or substantial rehabilitation "triggers" the inclusionary housing requirement. Were all 454 dwelling units to be constructed or substantially rehabilitated, the Agency would incur an 6 As of January 1, 2002, the CCRL requires that all "replacement" units be income restricted either at or below the affordability category which is the same as that of the units removed. Moorpark actually replaced all seven of the lower income housing units and two of the four low- and moderate - income units removed from the Project Area with very low - income units and the other two of the four low- and moderate - income units removed from the Project Area with lower - income units. ZAOOPIn Active \Moorpark\005 \InDPiar,Update2003 v09 wpd 18 1es9 %19/03 000026 additional inclusionary obligation of 68.1 units (15 percent of 454). City staff reports that the various developers will enforceably income restrict 229 of the 454 dwelling units proposed to be constructed (50 percent of all units).' Twenty -five percent of these units (59 units) will be made available to very-low income households and 75 percent of these units (170) will be made available to low- or moderate income households. Consequently, as shown on the "TOTALS" row in Table 13, by the end of the Implementation Plan period, the Agency is projected to enjoy a net surplus of 13 very low - income housing units and 135 low- and moderate - income housing units. Table 14: Table 14 shows "totals" from Tables 9 -13 in order to show the grand total surplus of affordable housing units the Agency is projected to enjoy at the end of FY 2003 -2004. The Agency is projected to have no replacement housing obligation. In addition, if the Agency income restricts its anticipated number of units which are projected to either be constructed or substantially rehabilitated, it will enjoy a surplus of approximately 147 affordable housing units at the end of FY 2003 -04. Note that according to Agency staff, has determined that these units have been or will be upon completion be income restricted pursuant to CCRL Section 33413. Z' \00PIn Active\ doorpark\005\ImpPlanUotlate2003 .v09.woC 19 ;es9119!03 00002'7 TABLE 10 UPDATED ESTIMATED NUMBER OF UNITS TO BE DESTROYED OR REMOVED INSIDE PROJECT AREA BY AGENCY AND ESTIMATED NUMBER OF REPLACEMENT DWELLING UNITS' JULY 2002 - JUNE 2004 MONITORING PROJECT AREA STATUS NO OF UNITS TO BE DESTROYED TOTAL NO. OF UNITS TO BE OR RFMOVED AFFECTING' NO OF BEDROOMS OFSTRUCTION/ REHABED, DEVELOPED, On CONSTRUCTED' rOTAL FISCAL TO BE REMOVAL OF BEDROOMS DEFICIT' o" SURPLUS CUMUlA11VE YEAR DESTROYED SUBJECT TO TO BF (IF ANY) (IF ANY) DIFFERENCE OR (a b), PROVIDFD' (DEFICIT[- lU(SURPI US[ +]) VERY REPLACED LOW INCOME, LOWER LOW -MOD INCOME' TOTAL VERY LOW INCOME LOWER INCOME LOW -MOD INCOME TOTAL' UNITS BFDROOMS UNIrS BEDROOMS VERY LOW L.OW.MOD BALANCE FORWARD 29 2 31 65 31 65 +29 +2 2002 -03'? 21 7 4 32 44 1 1 3 -31 -41 0 24 0 0 2003 -04 0 0 0 TOTALS 21 7 4 32 44 30 2 32 68 0 0 0 Complies with CCRL Section 33413(a) & (c), 33490(a)(3) The Agency shall require that the aggregate number of replacement units remain available at affordable housing costs to persons and families of low -, moderate -, and very low- income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2) From low- or moderate- income housing market, as part of a redevelopment project. If units planned for destruction or removal, locations for suitable replacement units must be identified. ' As defined by Health & Safety Code Section 50105 ' As defined by Health & Safety Code Section 50079 5 As defined by Health & Safety Code Section 50093 Within territorial jurisdiction of Agency. must be an equal number of replacement units as those displaced Replacement units must be provided within four years of displacement. Must be an equal or greater number of bedrooms as those removed or destroyed. 0 When units are displaced after 9/11/89, 75% of the replacement units shall replace dwelling units available at affordable housing cost in the same level of very low- income households, lower- incorne households, and persons and families of low- and roderate- income, as the persons displaced from those displaced units " Reference CCRL Section 33413(c) for applicable covenants. One, 2- bedroom unit was removed for access to the Fire Station This unit was replaced in the same year with one 3- bedroom unit within the Project Area (284 Charles Street) Thirty -one units have been removed at the site of file new Civic Center Twenty -eight homes were in an Agency owned Mobile Home Park , one duplex and a single family house All of these units were replaced In the same fiscal year in the Archstone Moorpark development. O O O c N 00 20 TABLE 11 UPDATED ESTIMATE OF TOTAL UNITS TO BE DEVELOPED AND SUBSTANTIALLY REHABILITATED INSIDE PROJECT AREA BY AGENCY' JULY 2002 - JUNE 2004 TYPE OF CONSTRUCTION UNITS MADE AVAILABLE AT AFFORDABLE HOUSING COST' CUMULI FIVE PROJECT AREA STATUS 1 2 3 VERY LOW' LOW' - MODERATE' DEFICIT SURPLUS DIFFERENCE.' FISCAL (IF ANY) (IF ANY) (DEFICIT (- J)'(SURPLUS, ICJ) YEAR SUBSIANrIAL REHAB' REQUIRED TO REQUIRED TO NEW BF ACTUAL BE ACTUAL MULTI- CONSTRUCTION TOTAL 15% OF UNITS 15/ OF UNITS VERY LOW LOW MOD VFRYIOW LOW MOD VERY LOW LOW -MOD FAMILY SINGLE FAMILY COLUMN 3 RESTRICTED COLUMN3 RESTRICTED BALANCE FORWARD 2002 -03 2003 -04 37 3 3 .45 1 .45 2 .55 1.55 +.55 +1.55 TOTALS 3 3 .45 1 .45 2 +.55 +1.55 Compliance with Sections 33413(b)(1) & (c), 33490(a)(2)(A)(ii) & 33413(d)(1). The Agency shall require that the aggregate number of inclusionary units remain available at affordable housing costs to persons and families of law -, moderate -, and very low - income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2) 'Substantial Rehabilitation' means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the dwelling, inclusive of the land Inclusionary obligation only arises when multi- family rental units with 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance. As defined by Health & Safety Code Section 50105 ' As defined by Health & Safety Code Section 50079 5 As defined by Health & Safety Code Section 50093 ' Calculated on a cumulative year -to -year basis 1 hree units are part of the Colmer Project O O O O N CO 21 TABLE 12 UPDATED ESTIMATE OF TOTAL UNITS TO BE DEVELOPED AND SUBSTANTIALLY REHABILITATED OUTSIDE PROJECT AREA BY AGENCY' JULY 2002 - JUNE 2004 TYPE OF CONSTRUCTION UNITS MADE AVAILABLE AT AFFORDABLE HOUSING COST' CUMULATIVE PROJECT AREA STATUS 1 2 3 VERY LOW' LOW'- MODERATE' DEFICIT SURPLUS DIFFERENCE' FISCAL (IF ANY) (IF ANY) (DEFICIT t- ))'(SURPLUS I -)) YFAn NEW SUBSTANTIAL. REHAB' REQUIRED TO ACTUAL REOUIRED TO ACTUAL CONSTRUC- TOTAL 15g OF UNITS 15°B OF UNITS VERY LOW LOW -MOD VERY LOW LOW-MOD VERY LOW LOW -MOD TION Ml1LTl- FAMILY SINGLE FAMILY COLUMN 3 RESTRICTED COLUMN 3 RESTRICTED BALANCE FORWARD NO ACTIVITY 2002 -03 2003 -04 TOTALS Compliance with Sections 33413(b)(1) & (c), 33490(a)(2)(A)(ii) & 33413(d)(1) The Agency shall require that the aggregate number of inclusionary units remain available at affordable housing costs to persons and families of low -, moderate -, and very low- income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2). l 'Substantial Rehabilitation' means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the dwelling, inclusive of the land. Inclusionary obligation only arises when multi - family rental units with 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance. As defined by Health & Safety Code Section 50105 As defined by Health & Safety Code Section 50079.5 As defined by Health & Safety Code Section 50093 Calculated on a cumulative year -to -year basis O O O O C4 O 22 TABLE 13 UPDATED ESTIMATE OF ALL NON - AGENCY DEVELOPED AND SUBSTANTIALLY REHABILITATED DWELLING UNITS WITHIN THE PROJECT AREA' JULY 1999- JUNE 2004 UNITS REQUIRED TO BE AVAILABLE AT AFFORDABLE HOUSING COST MONITORING NO OF UNITS DFVELOPF.D BY OTHERS VERY LOW' LOW'- MODERATF' CUMULATIVE PROJECT AREA STATUS, FISCAL. YEAR 1 2 3 ANNUAL DEFICIT ANNUAL SURPLUS DIFFERENCE' SUBS IANTIAL REHAB' REQUIRED TO ACTUAL (REQUIRED TO ACTUAL (IF ANY) (IF ANY) (DEFICIT 1 -I) /(SURPLUS If)) NEW TOTAL HE6'z.OF UNITS BE9 %OF UNITS MULTI- SINGLE CONSIRUC (t ,p) COLUMN 3) RESTRICTED COLUMN 3) RESTRICTED TION FAMILY FAMILY VERY LOW LOW -MOD VERY IOW LOW MOD VERY IOW LOW -MOD BALANCE FORWARD 300 8 308 18.48 27.72 31 -18.48 +3.28 - 18.48 +3.28 2002 -03 26 26 1.56 28 2.34 58 +.44 +2.66 - 18.04 +5.94 2003 -04 428 428 25.68 579 38.52 1659 +31.62 +126.48 +13.58 +135.70 TOTAL 754 8 762 45.72 59 68.58 201 Complies with CCRL Section 33413(b)(2) & (c) & (d)(1) 1 he Agency shall require that the aggregate number of replacement units remain available at affordable housing costs to persons arid families of low -, moderate -, and very low - income households for the longest feasible time, as determined by the Agency, except as provided for in CCRL Section 33413(c)(1)(2) 'Substantial Rehabilitation' means rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the unit, inclusive of the land value Inclusionary obligation only arises when multi- family rental units wilt) 3 or more units are substantially rehabilitated, or when single family units with 1 or 2 units are substantially rehabilitated using Agency assistance. ' As defined by Health & Safety Code Section 50105 As defined by Health & Safety Code Section 50079.5 As defined by Health & Safety Code Section 50093 The Agency may cause, by agreement or regulation, to be available, at affordable housing costs, to persons of low -, moderate- or very low- income households, two units outside the Project Area for each unit that otherwise would have had to be available inside the Project Area Calculated on a cumulative year -to -year basis The Very Low Income and Low- Moderate Income units were built as part of the Mountain View development I he Very Low Income homes will be built by the Colmer (1 unit), Cabrillo (2 units), Shea Homes (6 units), USA properties (48 units) developments. The Low- Moderate - Income homes will be built by the Colmer (2 units), Cabrillo (6 units), Shea Homes (15 units), TR Partners (1 unit), and USA properties (141 units and one manager unit not Counted in the affordable calculation) O O O W 23 TABLE 14 SUMMARY TOTALS OF HOUSING REQUIREMENTS CATEGORY ACTUALS THROUGH FY 2001 -02 PROJECTIONS FY 2002 -03 AND FY 2003 -04 TOTALS NEW' VERY LOW LOWER LOW- MOD TOTAL NEW' VERY LOW LOWER LOW- MOD TOTAL NEW' VERY LOW LOWER LOW- MOD TOTAL REPLACEMENT Total Removed 0 -21 -7 -4 -32 -21 -7 -4 -32 Total Replaced 29 2 31 1 1 30 2 32 Net Surplus /<Net Deficit> 29 2 31 -20 -7 -4 -31 9 -5 -4 INCLUSIONARY Constructed by Agency Total Constructed /- Rehabed 3 3 Total Required -0.45 -0.45 -0.9 -0.45 -0.45 -0.9 Total Provided 1 2 3 1 2 3 Net Surplus /<Net Deficit> 0.55 1.55 2.1 0.55 1.55 2.1 CONSTRUCTED BY OTHERS Total Constructed /- Rehabed 308 454 762 Total Required -18.48 -27.72 -46.2 -27.24 -40.86 -68.1 -45.72 -68.58 -114.3 Total Provided 0 31 31 59 170 229 59 201 260 Net Surplus / <Net Deficit> -18.48 3.28 -15.2 31.76 129.14 160.9 13.28 132.42 145.7 TOTALS Total All Categories 308 457 765 22.83 -5 129.97 147.8 Total Restricted 29 2 31 62 61 0 172 233 90 2 203 295 Total Required -18.48 0 -27.72 -46.2 -48.69 -7 -45.31 -101 -67.17 -7 -73.03 -147.2 Total Surplus / <Net Deficit> 10.52 2 3.28 15.8 12.31 -7 126.69 132 22.83 -5 129.97 147.8 Includes "substantial rehabilitation" as appropriate 0 0 0 0 7 NOOPIn nctive\Moorpork\005NmpPlan Update20O3 vO9 wpci W N 24 IPs9r1910 3 6.3 Consistency with City's General Plan Housing Element CCRL Section 33413(b)(4) requires that each agency, "...as part of the implementation plan required by Section 33490, shall adopt a [Housing Production] Plan...." CCRL Section 33413 (b)(4) requires that "[t]he Plan shall be consistent with ... the community's housing element." Additionally, "[t]he Plan shall be reviewed and, if necessary, [be] amended at least every five years in conjunction with either the housing element cycle or the Plan implementation cycle." Chapter V of the State's General Plan Guidelines (the "Guidelines ") states that the term "consistent with" means "agreement with; harmonious with." The general rule of consistency outlined in the Guidelines is that "[a]n action or a program is consistent with the General Plan if, considering all its aspects, it will further the objectives and policies of the General Plan and not obstruct their attainment." The Implementation Plan identified three goals from the General Plan which related to affordable housing but also relayed that the General Plan was then currently being amended. Although these goals are no longer current, they have been attached to this Midterm Update as Appendix. B for the convenience of the reader. The currently updated Housing Element provides a revised set of goals which are listed below: Goal 1: Assure the quality, safety, and habitability of existing housing and continued high quality of residential neighborhoods Goal 2: Provide residential sites through land use, zoning and specific plan designations to provide a range of housing opportunities. Goal 3: Expand and protect housing opportunities for lower income households and special needs groups. Goal 4: Where appropriate, mitigate unnecessary governmental constraints to the maintenance, improvement, and development of housing. Goal 5: Ensure fair and equal housing opportunity for all persons regardless of race, religion, sex, martial status, family type, ancestry, national origin, color or other protected status. Inasmuch as, i) the Agency is working to provide affordable housing for all income levels and most specifically housing for persons of very low -, low- and moderate - incomes, ii) the Agency is required to spend no less than 20 percent of all tax increment monies on affordable housing programs, and iii) the Agency has identified in the Implementation Plan and this Midterm Update those housing projects and programs and the number of dwelling units that it projects to develop, rehabilitate or assist the development of; the Agency determines that its current housing goal and objectives, ongoing activities, and housing production plan, as outlined in the Implementation Plan, and the Agency's housing goal and objectives (as identified in Section 2.3 of this Midterm Update), are consistent with the current Housing Element of the City's General Plan. 25 000033 7.0 UPDATED AGENCY LMI FUND PROGRAMS AND RELATED EXPENDITURES (1999 to 2004) CCRL Section 33490(a)(1)(A) requires that the implementation plan prepared and adopted by each redevelopment agency contain "...the specific programs, including potential projects and estimated expenditures proposed to be made during the next five years..." Table 16 provides the update of actual and projected Agency program expenditures for the LMI Fund for the Implementation Plan period. Appendix C lists the specific housing projects that are currently being undertaken by the Agency. A review of Table 15 will show the following: 7.1 Review of Actual Income and Expenditures in the LMI Fund: FY 1999 -00 through FY 2001 -02 Actual tax increment income increased steadily over the three fiscal years from $399,572 in FY 1999 -00 to $529,203 in FY 2001 -02, representing a 32 percent increase. Actual expenditures for FY 1999 -00 through FY 2001 -02 were provided by the Agency Staff. A review of Tables 7 and 10 will show that the Agency secured 62 affordability covenants in FY 2001 -02 yet, a review of Table 15 will show that project costs during this fiscal year were only nominal. Reasons for this apparent anomaly will be provided in Section 7.2 of this Midterm Update. Table 15 shows heavy expenditures for relocation costs in FY 2001 -02 as a result of the relocation of trailer park residents for the new Civic Center. By the end of FY 2001 -02 the Agency had doubled its FY 1999 -00 Yearly Beginning Balance of $1.4 million to a Yearly Ending Balance of $2.8 million. 7.2 Review of Projected Income and Expenditures in the LMI Fund: FY 2002 -03 and FY 2003 -04 UFI has projected tax increment income for FY 2002 -03 based upon assessed valuation provided by Ventura County for FY 2002 -03 at $691,656, increasing to $726,239 in FY 2003 -04 (i.e. 20 percent of total tax increment income for each year). Other sources of income (including yearly beginning balances and interest and other income) help the Agency increase its total available funds to $3.7 million in FY 2002 -03 and $2.9 million in FY 2003 -04. As with "actual expenditures" described above, Agency staff is projecting future expenditures for "Project Improvement/Other" at relatively nominal amounts given the amount of affordable housing which is also being projected to be provided. For instance, the Agency is projecting that it will secure a total of 222 affordable covenants in FY 2003 -04, yet is anticipating the expenditure of only $660,000 in FY 2003 -04 - -a ratio of only $2,973.00 per unit. Agency staff has indicated these amounts are appropriate because City policy requires developers to deed - restrict at least ten percent of all units constructed citywide, and in order to comply with the requirements of CCRL Section 33413, at least 15 percent need to be deed - restricted inside the Project Area.' The Agency has not (to date) subsidized any deed - restricted housing units developed within the Project Area. Agency staff expects that the affordable homes projected to e City staff has indicated that the City attorney has reviewed the deed restrictions that are in place for all constructed units and will review all future deed restriction to ensure compliance with CCRL requirements. Z \OOPin Acuve'd Jloorpark '•005\ImpP!anUpcate2003.v09.wpd 26 7es9l9 /03 000034 be developed in the Project Area in FY 2003 -04 will have deed restrictions which will allow them to be counted as "replacement" or "inclusionary" units pursuant to CCRL Section 33413. Projected expenditures for FY 2003 -04 and FY 2003 -04 are based upon discussions with Agency staff (for programs and costs of administration) and UFI projections of debt service payments. 7.3 Excess Surplus The Agency is required annually to report to the State any excess surplus in the LMI Fund pursuant to CCRL Sections 33080.7 and 33334.12(g). "Excess surplus" is determined by comparing the "Adjusted Balance" in the LMI Fund to the greater of: (1) $1,000,000 or (2) the aggregate amount of tax increment deposited to the LMI Fund during the four prior fiscal years. If the Adjusted Balance exceeds the greater of item (1) or (2), then an Excess Surplus exists. Items that may be deducted from the LMI Fund balance to arrive at the Adjusted Balance are unspent proceeds of debt issues and land conveyance losses. The calculation contained in the annual report to the State (the "HCD Report") requires the Agency to determine the amount of Excess Surplus, if any, on the first day of a fiscal year. Thus, for example, the amount of Excess Surplus (if any) for FY 2000 -01 is reported on the FY 2001 -02 HCD Report. As of July 1, 2002, the remaining excess surplus in the LMI fund was $88,049. It is estimated that net FY 2002 -03 expenditures exceeded that amount? Therefore, the Agency has no current excess surplus and is not anticipated to have one for FY 2003 -04. 7.4 Fair Share Housing Allocation The State Legislature adopted Assembly Bill 2853 in 1980 requiring all councils of governments to develop regional allocations of housing needs for all income categories (fair share of housing) based on regional housing needs. The Southern California Association of Governments (SCAG) has determined the City's future "housing needs based upon household growth forecasts, plus a certain amount of units needed to account for normal growth and an appropriate level of vacancies and the replacement of units that are normally lost to conversion or demolitions t0 Table 16 identifies the City's estimated 1998 -2005 housing need by income. The data reaffirms the need for the Agency to assist in the provision of very low -, low -, and moderate - income housing and the nexus to CCRL 33334.4. 9 Final numbers for FY 2002 -03 will be available after audit is performed. "City of Moorpark General Plan, p. 2 -21 Z:l00Pln ACllve, MoorDark %005,lmpPlanUpdate2003.v09 wpc 27 les9/19/03 000035 O O O 0 W 0 TABLE 15 UPDATED ACTUAL AND ESTIMATED LMI FUND PROGRAM EXPENDITURES' (FISCAL YEAR 1999 -00 TO 2003 -04) PROGRAM CATEGORY EXPENDITURES FISCAL YEAR 1999 -00' 2000 -01' 2001 -02' 2002 -03' 2003 -04' Yearly Beginning Balances $1,413,490 $1,698,944 $2,156,931 T$2,855,038 $2,000,682 Estimated Receipts A. Tax Increment $399,572 $508,380 $529,203 $691,656 $726,239 B. Interest Income /Other $73,996 $204,525 $108,890 $61,900 $118,800 C. Other $10,231 $12,867 $99,019 $60,850 $12,720 Total Available $1,897,289 $2,424,716 $3,715,118 $3,669,444 $2,859,441 Estimated Expenditures A. Administration $62,961 $111,465 $163,334 $318,537 $251,112 B. Project Improvement/Other $1,546 $5,971 1,198,000 $660,000 C. Debt Service $133,838 $141,320 $152,727 $152,225 $152,542 E. Relocation Costs $538,048 Total Expenditures $198,345 $267,785 $860,080 $1,668,762 $1,063,654 Yearly Ending Balance $1,698,944 $2,156,931 $2,855,038 $2,000,682 $1,795,787 Complies with CCRL § 33490(a)(1)(A). Based on audited financial statements Based on projected FY 2002 -03 figures from Agency's FY 2003 -04 Budget Based on Agency's FY 2003 -04 Budget. i TABLE 16 FAIR SHARE HOUSING ALLOCATION 1998 -2005 (7.5 YEARS) INCOME GROUP INCOME NUMBER OF PERCENT OF THRESHOLDS' UNITS TOTAL Very Low (0 -50% County Median Income) <$37,350 269 21% Other Lower(50 % -80% County Median Income) <$56,500 155 12% Moderate(80% -120 ". County Median Income) <573,600 383 31% Above Moderate (over 120% County Median <$88,320 448 36% Income) Total Units 1255 100% ' Median Family Income based on a family of four effective February 20, 2003 Sources Ventura Council of Governments, May 2. 2000 printed in City of Moorpark General Plan P.2 -21 Ventura County Housing Authority webpage http.,'rwww ahacv orgisection8 /income_limits.html 7.5 Conclusions Considering Moorpark's size and the rapidly inflating cost of housing," the Agency has achieved remarkable success in the production of affordable housing. Three hundred new units have been constructed and eight homes have been substantially rehabilitated. To date, there have been 31 affordable units which have been income restricted. Additionally, there have been 31 affordable units allocated as replacement units for housing that has been removed from the Project Area. Assuming that all approved residential projects within the Project Area are completed as planned, 454 new dwelling units will be developed within the next two years. Of these, 229 are projected to be priced to be affordable to very-low income, low income and moderate income families in accordance with CCRL Section 33413. The Agency will have satisfied its "replacement" and "inclusionary" requirements and will, as Table 14 shows, enjoy a comfortable surplus of affordable housing units going into the third implementation plan cycle. In conjunction with the provision of affordable units the Agency also was responsible for the timely relocation of the residents of the Moorpark Mobile Home Park. This relocation effort was orchestrated at the cost of over $1 million, not including land costs. Many residents purchased larger mobilehomes in other parks or conventional housing. A replacement home was constructed by the Agency for the household whose home was purchased for the new fire station on High Street. While the aforementioned represents substantial housing activity achievements in a short period of time, the shortage of affordable housing necessitates more units to be produced in the future. Strategic partnerships need to be pursued with selected development interests, in order to leverage limited public resources. The Agency could potentially facilitate the creation of the critically needed new affordable housing units through land acquisition in the downtown area, which could then be privately developed for higher density housing. This public private partnership " The City median home price was $415,000 in March 2003 according for Orange and Ventura Counties" Los Angeles Times, May 5, 2003 , p Z.'•.00Pln Act,ve�MOOroark \005 \ImpP.anUpclate2003 v09.wpd 29 to Data Quick Information cited in "March Sales K4. jes9119iO3 00003'7 would increase the supply of affordable housing units available to the citizens of the City, while simultaneously maximize the efficiency of the Agency funds. Currently the Agency's eminent domain authority has expired. Agency staff relays that this condition has limited its ability to pursue its state mandated objectives to eliminate blight and provide affordable housing in the Project Area. While redevelopment agencies typically use their powers of eminent domain sparingly, there may be an occasion where one "hold -out" property owner is able to thwart the accomplishment of an important project of blight removal if the redevelopment agency is unable to purchase all the parcels which would comprise that project. The eminent domain authority, therefore, is an extremely important "tool" which allows the Agency to adequately utilize its resources to acquire and assemble property for public uses. City staff is preparing to ask the City Council to place a proposed amendment on the ballot in 2004 which, if approved by the voters, would allow the Agency to commence procedures to amend the Redevelopment Plan to restore the eminent domain authority to the Agency in all or portions of the Project Area (shown on Figure 1). 8.0 UPDATED PROJECTS Please see Table 3 for a review of the ongoing projects which the Agency intends to continue implementing over the balance of the term of the Implementation Plan. Note the Agency currently has two active housing programs: a housing preservation program which provides funds to "preserve" existing dwelling units that need only rehabilitation, and a property improvement program which provides funds to remove old, deteriorated, vacant structures (primarily residential structures) and replace them with new development. 9.0 TEN -YEAR AND LIFE -OF- THE -PLAN HOUSING REQUIREMENTS CCRL Section 33490(a)(2)(B) requires that: (B) For each project area to which subdivision (b) of Section 33413 applies, the section addressing the agency developed and project area housing shall contain: 0) Estimates of the number of new, substantially rehabilitated or price - restricted residential units to be developed or purchased within one or more project areas, both over the life of the plan and during the next 10 years. (ii) Estimates of the number of units of very low -, low -, and moderate - income households required to be developed within one or more project areas in order to meet the requirements of paragraph (2) of subdivision (b) of Section 33413, both over the life of the plan and during the next 10 years. (iii) The number of units of very low, low -, and moderate - income households which have been developed within on or more project areas in order to meet the requirements of paragraph (2) of subdivision (b) of Section 33413, both over the life of the plan and during the next 10 years. (iv) Estimates of the number of agency developed residential units which will be developed during the next five years, if any, which will be governed by paragraph (1) of subdivision (b) of Section 33413. Z:'.00PIr• Active` ,Moomark',005'dmpP,anUpdate2003 v09.wpd 30 Jes9.'19.'03 000038 (v) Estimates of the number of agency developed units for very low -, low -, and moderate - income households which will be developed by agency during the next five years to meet the requirements of paragraph (1) of subdivision (b) of Section 33413. 10.0 CONCLUSION This Midterm Update describes the projects and programs which are proposed to be undertaken by the Agency during the remaining two years of the 1999 -2004 Implementation Plan (see Table 3) in order to assist in the alleviation of blighting conditions existing in the Project Area, and to increase the community's supply of affordable housing. Redevelopment is, however, a very fluid process subject to a myriad of changing issues and the forces of market dynamics. The Agency will also be affected by the economics of the State of California. The efforts of the State Government to balance the deficit will dramatically affect the solvency of the Agency in the coming years. California Bill SB 1045 introduced by the Committee on Budget and Fiscal Review has changed the amount of tax allocation that local agencies will be allowed to retain. The revenue decrease will affect the ability of the Agency to pursue its goals and objectives in the next fiscal year and years to follow. The Agency should be aware of these changing provisions to the allocation of funds in order to properly implement their goals in the upcoming fiscal year. Z:',00 01n Actrve\Moorparn�005 UmpPianUpoate2003.v09.wpd 31 1es9i19103 000039 APPENDIX A GOALS FROM THE INITIAL IMPLEMENTATION PLAN 111.1.1 Goal No. 1 Work with the City and Chamber of Commerce to preserve and enhance the economic prosperity of the overall community and aid business development and retention Objectives: a. Provide infrastructure assistance to industrial developers who are creating new industrial sites within the Project Area b. Develop a commercial rehabilitation loan or grant program. C. Assist in providing adequate parking in the City's central core area, particularly in the High Street area. d. Develop an industrial development loan or grant program. e. Working with the City and Moorpark Chamber of Commerce create a business retention and attraction program utilizing not only Agency funding sources but City, County, State and Federal sources as well. Assist new commercial development either through the provision of infrastructure, loan, grant or other appropriate programs. Goal No. 2 Work with the City and Chamber of Commerce to develop an implementation strategy for Downtown Revitalization Objectives: a. Continue to implement High Street streetscape improvements including benches, planters and decorative lights. b. Work to rehabilitate adjacent residential neighborhoods as needed. C. Work with the City to develop master plan for City and Agency owned property d. Work with the City to evaluate parking needs and how to provide strategic located parking on High Street including consideration of parking in lieu fee program. e. Continue efforts to enhance the downtown park. f. Work with Moorpark Chamber of commerce to develop a Chamber sponsored SBA workshop. g. Work with the City, Chamber of Commerce and SBA to establish information resources and to ensure jobs /housing balance. �lllf• Goal No. 3 Promote adequate infrastructure for business development Objectives: a. Work with the City to develop City -wide master drainage plan. b. Develop- an infrastructure assistance program that will be tied into programs that encourage new economic investments in the Project Area specifically and the community at large. C. Use Agency funding sources when possible as matching monies to leverage other possible infrastructure funding sources. d. Work with or assist private sector developers to provide oversized improvements in those instances where future cost savings are evident. Overall Goal 2: Adequate provision of housing allowing maximum choice by type, tenure and location with particular attention to the provision of housing for the elderly, low and moderate income families, handicapped and other households identified as having special housing needs. "Section 2 Goal 2: Meet the needs of current residents of the City of Moorpark by upgrading affordable, low and moderate income units through improvements of existing housing units and promoting greater housing affordability. "Section 3 Goal 2: Assist in the development of adequate housing to meet the needs of low and moderate income households. 000042 APPENDIX B CHANGES TO AFFORDABLE HOUSING REQUIREMENTS EFFECTIVE JANUARY 1, 2002 000043 CHANGES TO AFFORDABLE HOUSING REQUIREMENTS (AB 637 AND SB 211): EFFECTIVE JANUARY 1, 2002 Use of Affordable Housing Funds Affordability Levels: AB 637: The Redevelopment Agency's 10 year implementation plan must allocate housing funds to low and very low income individuals and low and moderate income families at a rate equal to or greater than their proportion of funding, as required by the respective City's General Plan housing element, for total low, very low and moderate income people. Senior Housing: AB 637.- Housing funds available to seniors must be equal to or less than the proportion of the population above 65 to the total population. Small Agencies with less than $2 million total deposited over the first five years have a total of 15 years to meet affordability requirements. On -Site or Off -Site Improvements AB 637: Housing fund money may be spent if and only if i) the improvements are part of the new construction or rehabilitation of affordable housing units for low or moderate income people directly benefitting from such improvements, ii) the improvements are a reasonable and fundamental part of the housing units and iii) the units are subject to affordability covenants. If the affordable units are part of a larger project, only the affordable units' proportionate share of on -site and off -site improvements may be paid for with housing funds. Substitution of Housing Funds for Other Available Moneys AB 637: In the event that housing funds will be used to cover 50 percent or more of the cost to produce affordable housing units, the Agency must make a finding that the owner of the units was unsuccessful in soliciting other reasonable funding sources. Replacement Housing Obligations Levels of Affordability AB 637.- 100 percent of replacement units must be available at affordable costs to people of the same income level or lower. Housing Production Obligation SB 211 and AB 637. The definition of "substantially rehabilitation dwelling unit" has been changed to mean "substantially rehabilitated, with agency assistance, multifamily rented dwelling units with three or more units, or substantially rehabilitated, with agency 000044 assistance, single - family dwelling units with one or more units." After January 1, 2006, all new or rehabilitated units will trigger or satisfy the production requirements. Affordability Covenants AB 637 and SB 211: Units, as described above, must be under covenant and remain affordable for at least 55 years for rental units and 45 years for owner occupied units. Rental units may cease to be affordable before 55 years if comparable affordable units are available within the community prior to displacement of low and moderate income people and the replacement units are not constructed using housing funds. The owner occupied units may be sold prior to 45 years if they are subject to an equity sharing agreement. Compliance with Affordable Housing Obligations SB 211: The Agency is required to fulfill its affordable housing requirements prior to the time limit on the effectiveness of the redevelopment plan. In addition, the Agency is bound to uphold the CCRL spending requirements of surplus housing funds (usually above $1 million or the total amount deposited in the preceding four years). Expenditure of these funds is enforceable through the courts. Time Limit on the Effectiveness of the Redevelopment Plan SB 211: If the Agency has not fulfilled its affordable housing obligations within the time limit on plan effectiveness for a project area, the time limit will be suspended and all tax increment will go to affordable housing until such obligations are met. Time Limit on Payment of Indebtedness SB 211: If the Agency has not fulfilled its affordable housing requirements prior to the time limit for payment on indebtedness, the time limit will be suspended and all tax increment will go to affordable housing until such obligations are met. Tax Increment Cap SB 211: If the Agency has not fulfilled its affordable housing requirements prior to exceeding the tax increment cap, the tax increment cap will be suspended and all tax increment will go to affordable housing until such obligations are met. Use of Remaining Moneys in the Housing Fund If any housing money remains after fulfilling the affordable housing obligations, the Agency must transfer the money to another project area. If no more exist, the funds are to be transferred to a special fund of the city, the city or county housing authority. Wherever the funds are transferred, they are governed by the same set of rules and regulations as with the Agency. 2 000045 Implementation Plan Requirements SB 211: The implementation plan for a project area that is within six years of the expiration of the redevelopment plan must address the Agency's ability to fulfill replacement housing and housing production obligation prior to the time limit and Agency plans for spending remaining housing fund money prior to the end of the redevelopment plan. Priority Occupancy for Displaced Persons AB 637: People or families displaced by redevelopment activities must be given priority in renting or owning affordable housing developed with Agency assistance or allocated towards housing replacement or production requirements. The Agency must maintain a list of persons and families eligible for priority and reasonably maintain it. 3 000046 APPENDIX C SUMMARY OF AGENCY PROGRAMS AND ACTIVITIES 00004'7 SUMMARY OF AGENCY PROGRAMS AND ACTIVITIES Participation Kev: a - Funding e - Housing Opportunities b - Recruitment and Planning Assistance t - Negotiations c Business Retention, /Development g - Program Development d - Fund Raising Item Agency Programs Description Date Type of Participation Downtown Revitalization Lease of Agency -owned storefront Established 1 Lease of High Street Parcels Property on High Street to such uses as 1995 and c a restaurant, senior thrift store and office. ongoing Funded a Downtown Market Analysis 2 Study to provide the Agency with FY 1999 -00 a,b,c Market Analysis development concept and tools to revitalize the downtown. City Council approved Moorpark Civic Facilities Development and Financing Civic Facilities Development Plan designating sites, design November 3 and Financing Plan considerations and financing sources for 2001 a,g a new Civic Center, Police Services Center and Public Works /Parks Department Corporation Yard. Assisted with acquisition of the Theater 4 Theater on High Street and on High Street and adjacent properties FY 2001 -02 to Adjacent Property Acquisition through loans to the Lawrence Janss FY 2003 -04 a,b,c Corporation. $75,000 for improvements to land the Agency currently owns to provide off - Downtown Parking street parking in support of the existing 5 Improvements and proposed retail and office uses along FY 2002 -03 a,c High Street and Moorpark Avenue. These improvements included paving, striping and landscaping of the parking lot. Acquired property for and temporarily 6 Public Works Temporary relocated Public Works Department. FY 2001 -02 Offices Property was purchased ultimately for a,e affordable housing development. Issued S11 million in tax exempt tax increment bonds to assist with land 7 Civic Facilities Development acquisition for Agency Program No. 3 December a g above, (including construction of the 2001 Police Services Center) as well as other downtown infrastructure improvements. Implemented a property acquisition, 8 Property Program p y g assembly and disposition program to Ongoing b,c,g attract commercial (retail and commercial uses) and public facilities uses. Established an in -lieu parking fee for businesses to buy into public parking at 9 Parking Fee -in -Lieu a fixed rate of $3,000.00 per space, Established b,c permitting new or expanding businesses May 2002 to satisfy parking requirements with off - site parking. Z � ' i SUMMARY OF AGENCY PROGRAMS AND ACTIVITIES Participation Key. a - Funding e - Housing Opportunities b - Recruitment and Planning Assistance t - Negotiations c - Business Retention/Development g - Program Development d - Fund Raising Item Agency Programs Description Date Type of Participation 10 Business Loan Program Low interest loans for businesses in the Inception 1997- a.c High Street area ongoing Acquired property for new Fire Station 42 site on the corner of High Street and Magnolia (2001). Approved an agreement with the Ventura County Fire Protection District to trade the District's FY 2001 -02 11 Fire Station 42 Land Station 42 property on Moorpark Avenue through FY a,e,f,g Acquisition and Exchange for Agency owned property on High 2003 -04 Street. Completed property exchange agreement for High Street Fire Station (2002). Acquisition of 661 Magnolia for Fire Station property on High Street (2003). City Council approved a plan to acquire a two acre site at 612 Spring Road for construction of a 28,000 sq.ft. Human Services Complex for a medical clinic, 12 Human Services Complex "under one roof' human services facility, March 2003 a,b,f,g and a permanent site for Catholic Charities. The Agency provided a $28,800 site improvement grant from Agency funds to Catholic Charities, for a temporary facility at the site. Expenditure of approximately $147,000 to provide sidewalk repair and improvements along High Street and General Infrastructure Moorpark Avenue in the downtown area. FY 2001 -02 13 Improvements to the These improvements (which are partially and FY 2002- a Downtown complete) will include parks, storm 03 drains, street repairs and rail crossings, landscaping, hardscape improvements, planters, curbs and gutters. 14 Infrastructure GIS Implementation FY 2001-02 a,b,g Economic Development Economic Development: Established a Business Enhancement 1 Business Expansion and Program in partnership with EDC -VC that FY 2001 -02 a,b,c,g Retention focuses on services for business expansion and retention. Initiated a quarterly events calendar for Economic Development: Moorpark for marketing and attraction 2 Moorpark Revitalization and purposes and to aid in revitalization of FY 2002 -03 b,c Marketing Program the Downtown Area, and reformatted recreation guide into City Magazine. 3 Economic Development: Film Updated the process for Film permits FY 2002-03 b,c Permit Process Update 000049 SUMMARY OF AGENCY PROGRAMS AND ACTIVITIES Participation KeY a - Funding e - Housing Opportunities b - Recruitment and Planning Assistance f - Negotiations c - Business Retention,Deveiopment g - Program Development d - Fund Raising Item Agency Programs Description Date Type of Participation Housing Programs Ongoing program with the same terms as Housing Rehabilitation Loan described in the Implementation Plan. 1 Program Two projects have been completed Ongoing a,e during 1999 -2002. $200,000 has been reallocated each year for this program. Three loans were funded from the City's original mobilehome rehabilitation loan program, using funds from the City's Affordable Housing Trust Fund. The City was awarded S420,000 for mobilehome rehabilitation loans in June 2001 from the California Department of Housing and CalHomeMobile Home Community Development's (HCD) Until August 2 Rehabilitation Loan Program CalHome Program. Seven loans have 2003 a.e been funded from this program. The terms of this program have been revised to provide for forgivable 10 -year loans at 0% interest. Providing the units are still owner occupied, 20% of the loan is forgiven each year from Year 6 through Year 10. The program has been extended to August 2004. Housing Projects Negotiated a development agreement 1 New Construction with MP Group LLC providing 22 low- FY 1999 -00 e,f income units and $900,000 for affordable housing purposes. Land Acquisition and Creation Acquired 284 Charles Street through Tax 2 of Replacement Housing default and construction of replacement FY 1999 -00 a,e house at 284 Charles Street Imposed a development condition with 3 Affordable Housing TR Partners for 1 low- income unit in an FY 1999 -00 a,e eight unit complex.' 4 New Construction 62 rent - restricted units in a 312 unit FY 1999 -02 e development built by Archstone Cabrillo /Mountain View: developers 5 Land sale and New purchased 7.5 acres from Agency to FY 2001 -02 a,f,e Construction develop 59 units (Total units: 15 deed restricted units; 44 market rate units) 12 For information purposes only, please note that one single - family dwelling was relocated to another location within the Project Area, by a private developer (without Agency assistance) in order to initiate the TR Partners development of eight units. 000050 SUMMARY OF AGENCY PROGRAMS AND ACTIVITIES Participation Kev a - Funding e - Housing Opportunities b - Recruitment and Planning Assistance f - Negotiations c - Business Retent on /Development g - Program Development d - Fund Raising Item Agency Programs Description Date Type of Participation Villa del Arroyo Mobile Home Park 6 Affordable Housing purchased by a non - profit entity with FY 2001 -02 a,e proceeds from a Mobile Home Park Revenue Bond Relocation of 28 households from Moorpark Mobile Home Park. Closed FY 2000 -01 7 Affordable Housing Moorpark Mobile Home Park Two through FY a,e households on the adjacent property 2002 -03 were also relocated. Issued tax - exempt bonds ($16 million) for 8 Affordable Housing Vintage Crest Senior Apartments (190 FY 2002 -03 a,e affordable units). Relocation of one Household in 9 Affordable Housing conjunction with the Colmer Project (TT FY 2002 -03 a,e #5307) Source City of Moorpark Redevelopment Agency, June, 2003 1. Family was relocated from 661 Magnolia. OOOUS1L APPENDIX D INCLUSIONARY AND REPLACEMENT REQUIREMENTS FROM THE IMPLEMENTATION PLAN 000052 VI. AGENCY PRODUCTION, IMPROVEMENT AND PRESERVATION OF AFFORDABLE HOUSING AGENCY COMPLIANCE REQUIREMENTS One of the fundamental goals of . redevelopment in California is the production, improvement and preservation of a participating community's supply of housing affordable to very low -, and low- and moderate - income households. This goal is accomplished, in part, through the compliance with four different, but interrelated requirements imposed on redevelopment agencies by the CCRL. The requirements are as follows: • An agency must use at least 20 percent of tax increment revenue to increase, improve and preserve the supply of very low -, and low- and moderate - income housing 'in the community (CCRL Section 33334.2); • An agency must replace, in equal or greater number, very low -, and low - and moderate - income housing units and bedrooms which are destroyed or removed as a result of a redevelopment project (the "replacement rule," CCRL Section 33413[a]); An agency must ensure that a fixed percentage of all new or substantially rehabilitated dwelling units developed by an agency are affordable to very low -, low- and moderate income persons and families (the "inclusionary rule," CCRL Section 33413[b][1]); • An agency must ensure that a fixed percentage of all new and substantially rehabilitated dwelling units developed within the project area by public or private entities or persons other than the Agency are affordable to very low -, low- and moderate - income persons (the "inclusionary rule," CCRL Section 33413[b][2]). CCRL Section 33413(b)(4) requires that, as part of an Implementation Plan, the Agency shall adopt a plan to comply with the requirements of the inclusionary rule. In addition, CCRL Sections 33413.5 and 33334.5 require replacement housing plans for compliance with the replacement rule. THE "REPLACEMENT RULE" Section 33413(a) of the CCRL requires that whenever dwelling units housing persons and families of low- or moderate income are destroyed or removed from the very low -, low- and moderate - income housing market as part of a redevelopment project subject to a written agreement with the agency or having been provided financial assistance by an agency, the agency shall, within four (4) years of the removal of the dwelling units, cause to be developed an equal number of replacement dwelling units which have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. 000053 For affordable units removed prior to September 1, 1989, replacement units must be available at an affordable housing cost' to persons and families of low- and moderate - income (very low- income levels excluded therein) without regard to the specific income of the person or family originally occupying the removed dwelling unit. However, for units removed after September 1, 1989, California law requires that 75 percent of the replacement units must be affordable to the same income groups, inclusive of very low - income levels, that occupied the units removed or destroyed. THE "INCLUSIONARY RULE ,2 CCRL Section 33413(b)(1) requires that at least 30 percent of all dwelling units directly developed by a redevelopment agency shall be available at affordable housing cost to persons and families of low- or moderate - income, and not less than 50 percent of the units shall be available at affordable housing cost to very low- income households. Section 33413(b)(2) of the CCRL requires that at least 15 percent of all dwelling units developed within a project area by public or private entities or persons other than the redevelopment agency shall be available at affordable housing cost to persons and families of low- or moderate - income, and not less than 40 percent of the affordable units shall be available at affordable housing cost to very low- income households. To illustrate the inclusionary rule in terms of numbers, of every 100 dwelling units developed or rehabilitated by entities other than the agency, 15 shall be affordable, with nine affordable to persons of low -or moderate - income, and six available to persons of very low- income. To satisfy this requirement an agency may cause, by agreement or regulation, to be available at affordable housing costs to persons and families of low -or moderate - income, or to very low- income households, two units outside a project area for each unit that otherwise would have had to be available inside a project area. TERMS OF AFFORDABILITY CCRL Section 33413(c) requires that replacement and inclusionary units shall remain available at affordable housing cost to the income levels indicated for the longest feasible time, which includes but is not limited to unlimited duration and is no shorter than the effectiveness of the land use controls in the Redevelopment Plan.' ' As defined in Health and Safety Code Sections 50052.5 and 50053. 2 This legislation, as currently written, will expire January 2001 unless re- enacted. CCRL Section 33334.3(f) states that when new or substantially rehabilitated housing units are developed or assisted with money from an agencys 20 percent affordable housing set -aside fund, the agency shall require that those housing units remain affordable for the longest feasible time, but for not less than 55 years for rental units or 45 years for owner - occupied units. Please note that while Agency expenditures pursuant to CCRL Section 33334.3(f) are appropriately expended from the LMI fund, they do not provide the Agency with any "replacement" or "inclusionary" credits. 000054 DEFINITION OF AFFORDABLE HOUSING Most governmental programs define housing as affordable when the household is paying no more than 30 percent of household income for housing. In addition, a median income based on household size is assessed for each county within the state. Since governmental programs are intended to provide affordable housing for specific income groups, target groups of very low (50 percent of County median income), low (80 percent of County median income) and moderate (120 percent of County median income) are also calculated. INCLUSIONARY HOUSING PLAN REQUIREMENT CCRL Section 33413(b)(4), requires each redevelopment agency to adopt a compliance plan to be included as part of the implementation plan required by Section 33490, indicating how the agency will comply with the requirements of the inclusionary rule; the compliance plan must be consistent with the Housing Element of the City's General Plan. The compliance plan shall be reviewed and amended at least every five years, in conjunction with either the Housing Element cycle or the plan implementation cycle. The compliance plan must ensure that the requirements of 33413(b) are met every ten years. CCRL Section 33490(a)(2)(B) requires that for each project area to which subdivision (b) of Section 33413 applies, the Section addressing the agency - developed and project area housing shall contain: (i) Estimates of the number of new, substantially rehabilitated or price - restricted residential units to be developed or purchased within one or more project areas, both over the Life -of- the -plan and during the next ten years. (ii) Estimates of the number of units of very low -, low -, and moderate- income households required to be developed within one or more project areas in order to meet the requirements of paragraph (2) of subdivision (b) of Section 33413, both over the Life -of- the -plan and during the next ten years. (iii) The number of units of very low -, low -, and moderate - income households which have been developed within one or more project areas which meet the requirements of paragraph (2) of subdivision (b) of Section 33413. (iv) Estimates of the number of agency developed residential units which will be developed during the next five years, if any, which will be governed by paragraph (1) of subdivision (b) of Section 33413. (v) Estimates of the number of agency developed units for very low -, low -, and moderate - income households which will be developed by the agency during the next five years to meet the requirements of paragraph (1) of subdivision (b) of Section 33413. CCRL Section 33334.4 provides that over the duration of the redevelopment plan, the LMI Fund shall be used to assist housing for persons of low- and very 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. 000055 C 1TV OF NIOORP^RK, CALIVOWA RPr', ,-%-- !Ionment Agency Meeting t /V -/5 -0700 3 ITEM . A. Moorpark Redevelopment Agency Agenda Report To: Chairman and Members of the Moorpark Redevelopment Agency L' From: Kenneth C. Gilbert, Director of Public Works Date: October 2, 2003 (Council Meeting 10- 15 -03) Subject: Consider Adoption of a Resolution Revising the MRA Funding for the Corporation Yard Project [Project 8041] DISCUSSION On October 15, 2003 the City Council will consider adopting a Resolution revising the funding sources and amounts for the subject project. That Resolution takes action to reimburse the Moorpark Redevelopment Agency [MRA] for all prior year MRA expenditures for the subject project and makes reference to an action by the MRA to release prior year unexpended MRA appropriations for this project. The net affect of that Resolution is that all MRA funding for the subject project will be reduced to zero. Details regarding these matters are set forth in the City Council staff report. The purpose of this report is to have the MRA take the appropriate parallel action. STAFF RECOMMENDATION (Roll Call Vote) Adopt MRA Resolution No. 2003 - project. Attachments: Exhibit 1: Resolution amending the Budget for this Corpyard bgt 0310 000056 Exhibit 1 RESOLUTION NO. 2003- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FY 2003/04 BUDGET TO REVISE THE AMOUNTS OF THE APPROPRIATIONS AND BUDGET FOR PROJECT 8041: CORPORATION YARD [MRA BOND PROCEEDS (2904) ] WHEREAS, on June 18, 2003, the Moorpark Redevelopment Agency [MRA] adopted the Budget for Fiscal Year 2003/04; and WHEREAS, a staff report has been presented to the City Council and the MRA requesting a budget increase in the aggregate amount of $2,118,415; and WHEREAS, that action included a transfer of funds to the MRA in the amount of $657,623 and the release of other prior year unexpended MRA appropriations in the amount of $175,577; and WHEREAS, Exhibit "A ", attached hereto and made a part hereof, describes said budget amendment and its resultant impacts to the budget line item(s). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a Budget amendment which includes a fund transfer to the MRA in the amount of $657,623 and the release of unexpended prior year MRA appropriations in the amount of $175,577, as more particularly described in Exhibit "A ", is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of October, 2003. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, City Clerk Attachment: Exhibit 'A': Appropriation and Budget Detail 000057 Resolution No. 2003 - Exhibit "A" Revised Appropriations & Budget For Project 8041: Corporation Yard A. Fund Allocation _... Fund ,Account Number C. FY 03/04 Budget Re -Cap Current Subject Revised FY 03/04 Appropriation;, FY 03/04' :Account Number Budget / (Reduction) Budget 2605.8310.8041.xxxx $ 447,850 $ 255,119 $ 702,969' 2800.8310.8041.xxxx $2,334,011; $ 1,381,250 $ 3,715,261 290.4.831.0.- 8.041.xxxx $_ 1.75 57.7 $__(175,577) $ 0' $2,957,438 $ 1,460,792' $ 4,418,230 D. Total Appropriations Re -Cap Revised FY 03/04 Prior Years Total .Account Number Budget Expenditures': Appropriations 2605.8310.8041.xxxx $_. 702,969 $ 284,939 $ 987, 908i 2800..83.10.804._1 . xxxx. ,. $3i 715,261 $.._..6.5.7,.0.23 $ 4,372,884 __.._.. $4,418,230; $ 942 562 $ 5,360,792 E. Distribution of Appropriations to Expense Accounts ___...._ _... ..... .... . -- -- _ e---Ct . Current Subject Revised! FY 03/04 Appropriation FY 03/04' .Account Number Budget / (Reduction) Budget 2605.8310.8041.9601: Design $ 81,861 $ (1,392) ' $ 80,469 2800.8310.8041.9601: Design $ 194,827 $ (7,066) $ 187,761 $ 276,688 $ (8,458) $ 268,230 2605.831'0.8041 9640 Const $ 335,989 $ 234,011 $ 570,000 2800.8310.8041.9640: Const $1,969,184 $ 1,260,816 $3,230,000 $2,305,173, $ 1,494,8271 $3,800,000 2605.8310.8041 9650• Insp. $ 30,000 $ 22,500 $ 52,500' 2800.8310.8041 9650 Insp. S 170,000 $ 127,500 $ 297,500 $ 200,000: $ 150,000 $ 350,000 Total Project $2,781,861 $ 1,636,369 $4,418,230' Approved as to form: 1111