HomeMy WebLinkAboutNB 4 FIND'G OF BENEFIT 05-03-93DATE: MAY 3, 1993
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
NEW BUSINESS N0. 4
5-3-93
Inter -Com
SUBJECT: REQUEST FOR CITY COUNCIL FINDING OF BENEFIT
RECOMMENDATION
Staff recommends that the City of Tustin City Council adopt
Resolution No. 93-45 so that housing set-aside funds allocated to
the South Central Project Area may be used outside the boundaries
of the Project Area for the purpose of increasing, improving, and
preserving the community's supply of low and moderate income
housing.
FISCAL IMPACT
No fiscal impact is expected since funding for the City's Housing
Rehabilitation Program has previously been appropriated.
BACKGROUND
On February 18, 1992, the Redevelopment Agency appropriated
$550,000.00 in South Central Project Area set-aside funds for
implementation of the City of Tustin's Housing Rehabilitation
Program. The Program provides grants (up to $3,000.00) and loans
(up to $25,000.00) to owners of property within certain targeted
areas of the southwest portion of the City. Southwest neighborhood
target areas designated by Council were identified by staff based
upon critical need for housing rehabilitation and because of their
high proportion of low to moderate income residents.
Some of the properties targeted for the program are located outside
the boundaries of the South Central Redevelopment Project Area (see
Exhibit A) which are now ready for funding. Redevelopment law
requires the use of any Redevelopment Project Area tax increment to
be used only within the project boundaries. However, Section
33334.2(g) of the California Community Redevelopment law provides
an exception to this rule when the local agency makes a finding
that use of these funds, outside of the Project Area, constitutes
a benefit to the Project Area. Said finding must be declared
through the adoption of a resolution adopted by both the
Redevelopment Agency and the City Council. It should be noted that
the State legislature has declared that the provision and
improvement of affordable housing, as provided by Section 33334.2,
City Council Report
Page 2
outside of redevelopment Project
those projects in assisting
objectives whether or not those
housing within the Project Area.
CONCLUSION
Areas, can be of direct benefit to
the accomplishment of project
redevelopment projects provide for
City Council has authorized the creation of a Housing
Rehabilitation Program within the southwest portion of the City
with funding provided with $550,000.00 in South Central
Redevelopment set-aside monies. Redevelopment law requires the
adoption of a resolution by both the Redevelopment Agency and City
Council finding that the allocation of Redevelopment funds, to
areas outside a Project Area's redevelopment boundaries, is of
benefit to the Project Area. Staff recommends adoption of
Resolution No. 93-45 so that authorized target areas of the City's
Housing Rehabilitation Program may be funded.
�a �a Drdst-
Dana Ogdon
Senior Planner
DO:kd\a9ncyfnd.ccr
Attachments
Christine A. SbOgleton
Assistant City Manager
F.XHTRTT A
uunn, SOUTH CENTRAL REDEVELOPMENT AREA
VIII IIIIIII SOUTHWEST NEIGHBORHOOD IMPROVEMENT AREA
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RESOLUTION NO. 93-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, FINDING THAT THE USE OF
TAXES ALLOCATED FROM THE SOUTH CENTRAL PROJECT
AREA FOR THE PURPOSE OF INCREASING, IMPROVING
AND PRESERVING HOUSING OUTSIDE THE PROJECT
AREA WILL BE OF BENEFIT TO THE PROJECT
The City Council of the City of Tustin does hereby
resolve as follows:
WHEREAS, the Community Redevelopment Agency of the
City of Tustin (the "Agency") has adopted a Redevelopment
Plan (the "Redevelopment Plan") for the South Central
Project Area (the "Project"); and
WHEREAS, the Redevelopment Plan provides for the
allocation of taxes from the Project Area; and
WHEREAS, Section 33334.2 of the California Community
Redevelopment Law (Health and Safety Code Section 33000
et seq.) requires that not less than twenty percent (20%)
of all taxes so allocated be used for the purpose of
increasing, improving and preserving the community's
supply of low and moderate income housing available at
affordable housing cost; and
WHEREAS, Section 33334.2(g) of the Health and Safety
Code provides that such funds may be used outside of a
project area if a finding is made by resolution of the
Agency and the City Council that such use will be of
benefit to the Project; and
WHEREAS, the City of Tustin has established a
Housing Rehabilitation Program for the Southwesterly
portion of the City, the boundary of which includes
residential target areas located adjacent to but outside
the South Central Redevelopment Project Area; and
WHEREAS, the use of tax increment funds for
implementation of the City's Housing Rehabilitation
Program outside of the Project Area will directly promote
the planning, development, replanning, redesign,
clearance, reconstruction, rehabilitation, alteration,
improvement and modernization of existing structures
within the Project Area.
NOW, THEREFORE, the City Council of the City of Tustin
does hereby find and resolve as follows:
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Resolution No. 93-45
Page 2
Section 1: The City Council hereby finds that the
use of taxes allocated from the South Central Project
Area for the purpose of increasing, improving and
preserving the community's supply of low and moderate
income housing available at affordable housing cost
outside the Project Area and within the City of Tustin
will be of benefit to the Project.
Section 2: The City Council finds that the use of
those funds is of primary benefit to the Project Area,
and constitutes redevelopment activity as described in
Sections 33020 and 33021 of the Health and Safety Code.
PASSED AND ADOPTED at a regular meeting of the
Tustin City Council, held on the 3rd day of May, 1993.
Jim Potts
Mayor
Mary E. Wynn
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-45
MARY E. WYNN, City Clerk and ex -officio Clerk of the City
Council of the City of Tustin, California, does hereby
certify that the whole number of the members of the City
Council of the City of Tustin is five; that the above and
foregoing Resolution No. 93-45 was duly and regularly
introduced, passed and adopted at a regular meeting of
the City Council held on the 3rd day of May, 1993, by the
following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
Mary E. Wynn, City Clerk
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