HomeMy WebLinkAboutAGENDA REPORT 2011 1116 CC REG ITEM 10CITEM 10.C.
City Council Meeting
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MOORPARK CITY COUNCIL A6`4 -,N:
AGENDA REPORT
To: Honorable City Council
From: David C. Moe 11, Redevelopment Manager
Date: November 4, 2011 (City Council Meeting of 11/16/11)
Subject: Consider Replacement Housing Plan for 161 Second Street
BACKGROUND
The Redevelopment Agency of the City of Moorpark ( "Agency ") recently acquired the
property located at 161 Second Street ( "Property ") and subsequently transferred it to
the City of Moorpark ( "City "). The City is drafting plans to construct an approximate one
half (.5) acre neighborhood park.
DISCUSSION
The Property is improved with a small three bedroom single family dwelling, which is
currently occupied by a very-low income household. According to Section 33413.5 of
the California Redevelopment Law (Health and Safety Code, Section 33000 et seq.),
whenever the Agency executes an agreement for acquisition of real property, or an
agreement for the disposition and development of property which would lead to the
destruction or removal of dwelling units from the low and moderate income housing
market, Agency is required to adopt a replacement housing plan ( "Plan ").
The attached Plan ( "Attachment 1 ") identifies the impacts the redevelopment project will
have on the community's supply of very-low, low and moderate income housing and
details the measures that the Agency will take to ensure that the appropriate
replacement housing is produced within the four -year time limit. The replacement
dwelling units must have an equal or greater number of bedrooms from the removed
units and shall be located within the redevelopment project area or within the territorial
jurisdiction of the Agency (city limit). The replacement units shall also be made
affordable to the same income level of very-low income, low income and moderate
income households, as the persons displaced from those destroyed or removed units.
The Agency has several options available to provide replacement housing to mitigate
the loss of the unit located on the Property, including acquisition, rehabilitation, new
construction, and the allocation of "banked" dwelling units from prior development
25
Honorable City Council
November 16, 2011
Page 2
activity. The Agency's banked dwelling units/bedrooms are sufficient to satisfy the
required very-low income replacement housing obligation. Therefore, the Agency's
surplus number of very-low income units will be reduced by one unit and three
bedrooms in order to satisfy the Agency's replacement housing obligation.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Adopt Replacement Housing Plan for 161 Second Street.
Attachment I: Replacement Housing Plan
26
ATTACHMENT I
REPLACEMENT HOUSING PLAN
FOR THE
SECOND STREET PARK
161 SECOND STREET
Prepared for
CITY OF MOORPARK
ASSISTANT CITY MANAGER'S OFFICE
By
OVERLAND, PACIFIC & CUTLER, INC.
3750 SCHAUFELE AVE., SUITE 150
LONG BEACH, CALIFORNIA 90808
(800) 400 -7356
August 4, 2011
27
TABLE OF CONTENTS
I. INTRODUCTION .................................. ............................... 1
II. PROJECT DESCRIPTION AND LOCATION . .......... ............................... 3
III. UNITS TO BE REPLACED ......................... ............................... 5
IV. ANNUAL INCOME RESTRICTIONS ................. ............................... 7
V. LOCATION OF REPLACEMENT HOUSING ........... ............................... 8
Vl. FINANCING THE REPLACEMENT HOUSING ........ ............................... 9
VII. NON- APPLICABILI'I'Y OF ARTICLE XXXIV OF THIi CALIFORNIA CONSTI'T'UTION.... 10
VIII. T'IMET'ABLE I-'OR REPLACEMENT IlOtJSING ..... ............................... 11
IX. SUMMARY ..................................... ............................... 12
W.
I. INTRODUCTION
ows
The City of Moorpark (the City) intends to proceed with its plans for the Second Street
Park Project at 161 Second Street (the Project) and has acquired a 15,000 square foot
parcel improved with one single family dwelling unit. The Project will require the razing of
one affordable housing unit. The Redevelopment Agency of the City of Moorpark (the
Agency) is financing the relocation of the tenants and demolition of this structure through
a reimbursement agreement dated April 21, 2011.
Section 33413.5 of the California Redevelopment Law (Health and Safety Code, Section
33000 et seq.) requires a redevelopment agency to adopt a replacement housing plan
whenever the agency executes an agreement for acquisition of real property, or an
agreement for the disposition and development of property which would lead to the
destruction or removal of dwelling units from the low and moderate income housing market.
The plan should identify the impacts that a particular redevelopment project will have on
the community's supply of very-low, low and moderate income housing and detail the
measures that the agency will take to ensure that the appropriate replacement housing is
produced within the four year time limit.
Section 33413(a) of the California Redevelopment Law requires that whenever dwelling
units housing persons and families of very-low, low or moderate income are destroyed or
removed from the very-low, low and moderate income housing market as part of a
redevelopment project, which is subject to a written agreement with a redevelopment
agency or where financial assistance has been provided, the agency shall within four years
of the destruction or removal, rehabilitate, develop, construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families of very-low, low or
moderate income, an equal number of replacement dwelling units at affordable housing
cost within the redevelopment project area or within the territorial jurisdiction of the agency.
When dwelling units are removed after January 1, 2002,100% of the replacement dwelling
units shall replace dwelling units in the same income level of very-low income households,
lower income households and persons and families of low and moderate income, as the
persons displaced from those destroyed or removed units.
Demolished or converted, occupied or vacant occupiable, very-low, low and moderate
income units must be replaced with units of an equal number of bedrooms from the
removed units. The units must be within the agency's jurisdiction, in standard condition,
and designed to remain affordable to very-low, low and moderate income households,
Replacement Housing Plan Page 1
29
respectively for a minimum of the longest feasible time, as determined by the agency, but
for no less than the period of the land use controls established in the redevelopment plan,
unless a longer time period is applicable under the Health & Safety Code §33413(c).
The Redevelopment Plan for Agency's Moorpark Redevelopment Project Area is
scheduled to expire in July 2030. Pursuant to the passage of Assembly Bill No. 637,
however, affordable" units provided by an agency post- January 1, 2002 are required to
have affordability covenants for minimum, fixed -time periods irrespective of the life of any
one Project Area or Agency (and the term of applicability of the land use controls).
Specifically, Section 33413(c) established those time limits at 45 years for ownership units
and 55 years for rental housing. The unit is anticipated to be removed by January of 2012
and the replacement unit must be provided within a four year time frame. Therefore, the
replacement unit must be available by January of 2016, or four years from the time the
existing unit is removed.
This Replacement Housing Plan (the Plan) has been prepared by the Agency as a result
of proposed Project and to satisfy the requirements for replacement housing contemplated
under the California Redevelopment Law.
This Plan describes the following:
1) Proposed Project,
2) General location of the very-low, low and moderate income dwelling units which will,
or may be, removed or destroyed as a result of the Project,
3) General location and intentions for the development of the replacement housing,
4) Means of financing such development,
5) Schedule for the construction of the replacement housing, and
6) Period for which these units will remain affordable.
Replacement Housing Plan Page 2
30
II. PROJECT DESCRIPTION AND LOCATION
PROJECT DESCRIPTION
The City of Moorpark has acquired an approximately 15,000 square foot parcel improved
with a single family dwelling at 161 Second Street in Moorpark. It is the intent of the
Agency to finance the demolition of the current structure and construction of a
neighborhood park. To effectuate the development of the Project, the City must
permanently relocate one residential household and raze one affordable unit. The six -
member household currently occupies a small, three - bedroom unit in poor condition.
The City plans to develop the site as a neighborhood community park. The Agency intends
to fully replace one existing very low income unit that will be removed, totaling three
bedrooms. Preparation of this replacement housing plan outlines the Agency's timetable,
funding and methods for the replacement of the units and bedrooms.
PROJECT LOCATION
The proposed Project will take place in the City of Moorpark which is located in the
southeastern portion of Ventura County, approximately 40 miles northwest of downtown
Los Angeles. Moorpark is easily accessible from State Routes 23 and 118 with neighboring
communities of Simi Valley, Thousand Oaks, Camarillo, Somis, Santa Paula, and Fillmore.
(See Figure 1, following).
The specific Project site is located just west of the SR -118 Ronald Reagan Freeway, near
the northwest corner of Second Street and Bard Street. (See Figure 2, following).
Replacement Housing Plait Page 3
31
As a result, there are a total of three bedrooms in one residential unit that need to be
rehabilitated, developed, or constructed pursuant to Section 33413(a) of the Community
Redevelopment Law. Based on the 100% replacement criteria by income level, it has been
determined that the three replacement bedrooms should be affordable to very-low income
households.
As described in Table 2, following, through September 30, 2010 the Agency has previously
created or has planned for the creation of the following net number of affordable housing
units /bedrooms.
Table 2: Affordable Housing Projects- Banked Units /Bedrooms (Net, September 2010)
Unit Size
Very Low Income
Lower Income
Moderate Income
Total Net Surplus
Net Banked
79/131
203/387
12/29
294/547
Units /Bedrooms
Replace rnent Housing Plan Page 6
34
A personal survey was conducted with residents of the occupied unit and information
obtained from publicly available sources was made available in order to verify the number
of bedrooms for the Project dwelling unit.
This Replacement Housing Plan analysis will considerone occupied single - family dwelling.
Per the California Redevelopment Law, 100% of the very low to moderate income dwelling
units shall be replaced with dwelling units having an equal number of bedrooms available
at the respective very low to moderate income levels.
Bedroom Survey by Income Level
Table 1 defines the number of dwelling units and bedrooms that will be displaced and the
100% requirement for replacement by income level. The numbers under each household
income category indicate the total households displaced (the number of dwelling units) and
the numbers in parenthesis indicate the total number of bedrooms displaced for each
income level by bedroom size.
Table 1 further defines the number of bedrooms necessary to meet the requirements of
the 100% replacement criteria.
Table "1 'Dis "laced Hodseholds by Bedroom Siize & lncomd Level
`{ausehoid SYze Very 'Low
.Low
Moderate
Nonrestricted
Totals
lnciime Jv,
ncome
Income
Income
Three Bess" 1
0
0
7
..
KID usehM tds (3)
(0)
(0)
(3)
{# Bedroort�s)
R p)a em6nt
�r#,13edrooms)
Replacement Housing Plan Page 5
33
As a result, there are a total of three bedrooms in one residential unit that need to be
rehabilitated, developed, or constructed pursuant to Section 33413(x) of the Community
Redevelopment Law. Based on the 100% replacement criteria by income level, it has been
determined that the three replacement bedrooms should be affordable to very-low income
households.
As described in Table 2, following, through September 30, 2010 the Agency has previously
created or has planned for the creation of the following net number of affordable housing
units /bedrooms.
Replacement Housing Plan Page 6
34
IV. ANNUAL INCOME RESTRICTIONS �
California Health and Safety Code Sections 50079.5 and 50105 provide that the moderate,
low and very-low income limits established by the U. S. Department of Housing and Urban
Development ( "HUD ") are the state limits for those income categories. Sections 50079.5
and 50105 direct the Department of Housing and Community Development ( "HCD ") to
publish the income limits. HUD released new income limits in May 2010. Accordingly, HCD
has filed with the Office of Administrative Law, amendments to Section 6932 of Title 25 of
the California Code of Regulations. The amendments contain the new HUD income limits
prepared by HCD pursuant to Health and Safety Code Section 50093 and published on
July 13, 2011.
The following figures, shown in Table 3, are approved for use in the County of Ventura to
define and determine housing eligibility by income level:
Table 3: Housing Eligibility by Annual Income Level
Area Median: $88,100
Family,,Size
Very Low
Lower
Median
Moderate
1 Person
31,150
49,850
61,650
74,000
2 Person
35,600
57,000
70,500
84,550
3 Person
40,050
64,100
79,300
95,150
4 Person
44,500
71,200
88,100
105,700
5 mPerson
48,100
76,900
95,150
114,150
6 Person
51,650
82,600
102,200
122,600
7 Person
55,200
88,300
109,250
131,050
8 Person
58,750
94,000
116,300
139,500
Replace ntent Housing Plan Page 7
35
V LOCATION OF REPLACEMENT HOUSING �
The Agency has several options available to provide replacement housing to ameliorate
the impact of the Project, including acquisition, rehabilitation, new construction, and the
allocation of "banked" dwelling units from prior development activity. As described in Table
1, earlier, the implementation of the proposed Project will result in the removal of a total
of one "affordable ", residential dwelling unit, with the applicable bedroom /room counts and
income affordability levels as indicated.
The Agency's previously funded affordable housing projects provide surplus dwelling units
and bedrooms that can be allocated by the Agency for future housing obligations. The
Agency has a sufficient number of "banked" dwelling units /bedrooms to satisfy the required
very low, lower and moderate income replacement housing obligation for the Project.
Assuming an assignment of the Agency's replacement obligation identified for the subject
Project to the aforementioned "bank" of housing Table 4, following, assigns that allocation
to the appropriate income category and shows the net balance of affordable housing
accruing to the Agency.
Table 4: Affordable Housing Projects /Banked Units & Bedrooms
Units /Bedrooms
Very . Low Income
Lower Income
Moderate Income
Total Net Surplus
Banked
79/131
203/387
12/29
294/547
Project Impact
(1/3)
(0/0)
(0/0)
(1/3)
Net Surplus
78/128
203/387
12/29
293/544
Replacement Housing Plan Page 8
36
VI. FINANCING THE REPLACEMENT HOUSING i
The Redevelopment Plans that were created for the Moorpark Redevelopment Project
Area authorize the Agency to finance its activities with assistance from actual sources,
including the City of Moorpark, State of California, United States Government, property tax
increment funds, interest income, Agency bonds, or other available sources.
In the acquisition, construction and /or rehabilitation of the affordable housing units
identified in the preceding section, the Agency may utilize a variety of funding sources to
finance these activities. Sources that may be utilized include: State or Federal grants and
loans, including, but not limited to; HUD Community Development Block Grant (CDBG)
funds; HOME grants; various mortgage subsidy or guarantee programs, including Section
202 and programs offered by the California Housing Financing Agency (CHFA); tax
increment funds; below market rate financing through the sale of tax exempt mortgage
revenue bonds; redevelopment twenty percent set -aside funds; and developer funds.
Specific funding for future replacement housing units may be through the use of any
combination of the above described methods and sources.
In addition to the financing methods listed, the Agency may utilize density bonuses in
exchange for covenanted units in the Project area.
Replacement Housing Plan ],age 9
37
VII. NON- APPLICABILITY OF ARTICLE XXXIV OF THE
` CALIFORNIA CONSTITUTION
Article XXXIV of the California Constitution requires voter approval of all low -rent housing
projects that are developed, constructed, or acquired by public entity. However, under
Section 37001 of the California Health and Safety Code, which implements this
Constitutional mandate, the replacement housing identified in this Plan is not a "low -rent
housing project' as defined in Section 2 of Article XXXIV of the California Constitution. It
is hereby found and determined that the replacement housing to be developed and
constructed under this replacement housing plan does not require approval of the voters
of the City of Moorpark pursuant to Article XXXIV of the California Constitution. Neither
ownership housing, nor rental housing are 'low rent housing projects" as described in
Article XXXIV, and Section 37001 (b) of the California Health and Safety Code. All such
replacement housing will be privately owned, and will not be exempt from real property
taxes by reason of public ownership and will not be financed with direct long term financing
from a public body.
In addition, the Agency will not "develop, construct, or acquire" housing as described in
Section 1 of Article XXXIV of the State Constitution because it may provide developers
assistance and monitoring construction by imposition of mandated or authorized
conditions.
Replacement Housing Plan Yule 10
VIII. TIMETABLE FOR REPLACEMENT HOUSING
The Agency has provided a considerable degree of continuing support in the construction
and /or rehabilitation of replacement housing units sufficient to address the replacement
requirements of affordable housing discussed in this Plan. It is the intent of the Agency to
use "banked" units from previously developed housing units to fulfill its replacement
housing requirement.
The Agency acknowledges that replacement housing units must be affordable in the same,
or lower income categories than those being razed or otherwise removed from the City's
housing inventory and will ensure that this result is realized.
Further, any units developed as replacement housing units will be completed within four
years and will remain income - restricted for the appropriate period as required by law.
Replacement Housing flan Page 11
39
IX. SUMMARY
In summary, a total of three bedrooms in one dwelling unit will be removed as a result of
the Project, as planned.
Based on the 100% replacement criteria by income level, Agency through a variety of
replacement housing options will replace the three bedrooms affordable to very-low income
households by using previously developed housing units. The result of the above actions
will yield the required number of replacement dwelling units as mandated under California
Redevelopment Law and the Housing and Community Development Act.
The Agency recognizes its legal and community responsibilities in this matter and will make
a sincere, good -faith effort to accomplish these goals. The Agency retains its option to use
other approaches and strategies not discussed herein to fulfill its replacement housing
obligations in a timely manner.
Replacement Housing Plan Page 12
O