HomeMy WebLinkAboutRDA 3 HSNG PLAN KENYON 05-05-03AGENDA REPORT
Agenda Item RDA NO. 3
Reviewed:
City Manager (~~"~-
Finance Director /'U ~
MEETING DATE:
MAY 5, 2003
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
REDEVELOPMENT AGENCY STAFF
ADOPTION OF REPLACEMENT HOUSING PLAN FOR KENYON DRIVE
NEIGHBORHOOD REHABILITATION PROJECT
SUMMARY
Agency approval of the Replacement Housing Plan is requested for the proposed
project located in the South/Central Redevelopment Project Area.
RECOMMENDATION
It is recommended the Redevelopment Agency adopt Resolution No. RDA 03-07
adopting the Replacement Housing Plan for the proposed Kenyon Drive Neighborhood
Rehabilitation Project.
FISCAL IMPACT
No direct fiscal impacts on the Redevelopment Agency or implementation of the
Replacement Housing Plan is anticipated at this time. If the negotiations with the
developer result in a Disposition and Development Agreement (DDA), the fiscal impact
of such an agreement will be discussed if Agency approval of a DDA is requested in the
future.
BACKGROUND
Pursuant to the Rules Governing Participation by Property Owners and Business
Tenants in the South/Central Redevelopment Project Area, the Agency authorized the
Executive Director to enter an Exclusive Agreement to Negotiate with Kenyon Drive
Limited, LLC dated September 12, 2002, to redevelop the property referred to as the
Kenyon Drive Neighborhood ("Project") located at Newport Avenue and Kenyon Drive.
As anticipated in the Exclusive Agreement to Negotiate, Kenyon Drive Limited, LLC has
prepared plans and assembled most of the properties for the proposed Kenyon Drive
Neighborhood Rehabilitation Project. The proposed Project calls for acquiring the
remaining units in the project, demolishing 21 of the existing units, substantially
William A. Huston
Kenyon Drive Rehabilitation Project
May 5, 2003
Page 2
rehabilitating 104 existing units and constructing 8 new units along with making other
site improvements. The removal of 21 units is required for the future Newport Avenue
widening project which would leave the remaining land available for construction of
common area recreation facilities for the proposed Project.
One of the Redevelopment Agency and City General Plan's housing goals is to increase
and preserve the supply of Iow and moderate income housing. It is also Agency staff's
desire to see multifamily rental housing rehabilitation activities play a more significant
role in providing affordable housing in the community, while ensuring the long-term
viability and maintenance of existing housing units in the City. Special attention for the
proposed Project will be paid to design features that reflect a high level of quality that
will attract investment and enhance the southwest area of the City.
Replacement Housing Plan
Section 33413(a) of the California Redevelopment Law (the "CRL") (Health and Safety
Code, Section 33000 et seq.) requires that whenever dwelling units housing persons
and families of Iow and moderate income are destroyed or removed from the Iow 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 will be
provided, the agency will, within four years of the destruction or removal, ensure
replacement of such units within territorial jurisdiction of the agency. Section 33413.5 of
the California Redevelopment Law requires a redevelopment agency to adopt a
replacement housing plan not less than thirty (30) days prior to executing an agreement
for the disposition and development of real property which would lead to the destruction
or removal of dwelling units from the Iow and moderate income housing market. The
replacement housing plan must identify the impacts the proposed redevelopment
project will have on the community's supply of Iow and moderate income housing and
detail the measures that the agency will take to ensure that the appropriate replacement
housing is produced within a four year time limit.
Pacific Relocation Consultants and Agency staff have prepared a Replacement Housing
Plan for the Project which is attached for the Agency's review and approval. The
Agency is currently banking dwelling units as a result of construction or rehabilitation of
affordable housing projects over the past 10 years. The projects that serve to create
surplus replacement units include: a) Tustin Grove, a 145-single family home
ownership new construction project; b) Heritage Place, a 54-unit senior citizen rental
project; and c) other long-term affordability restrictions acquired through the substantial
William A. Huston
Kenyon Drive Rehabilitation Project
May 5, 2003
Page 3
rehabilitation of the 150-unit Orange Gardens Apartments, the 350-unit Hampton
Square Apartments, and the 82-unit Flanders Point Apartments. Within these projects,
a total of 592 units comprised of 928 bedrooms have been set aside for Iow and
moderate income households. To date the Agency's replacement housing obligation is
for 41 units with a total of 82 bedrooms, which leaves a surplus balance of 551 units
with a total of 846 bedrooms. The replacement units provided in the proposed project
and the balance of the surplus units banked by the Agency, as provided under the CRL,
will fully satisfy the replacement housing obligations for the Kenyon Drive Neighborhood
Rehabilitation Project.
Finding of Benefit
This site is located in the South/Central Project Area. In March, 2000, the Tustin
Community Redevelopment Agency adopted a Second Five-Year Implementation Plan
for the Town Center and the South/Central Redevelopment Projects for fiscal years
2000-2001 to 2004-2005. The Implementation Plan was composed of two parts: a five-
year plan for Redevelopment activities; and a five-year plan for housing activities.
Anticipated accomplishments and expenditures for the five-year period included
acquisition and rehabilitation of 118 rental units in the South Central Project Area.
The proposed Project is consistent with the Implementation Plan for the South/Central
Project Area. It would remove a blighting influence in the Project Area by assembling
existing disparate ownership apartment buildings that are characterized by
overcrowding, insufficient parking, deferred maintenance and a high incidence of crime.
The proposed Project will substantially rehabilitate existing units and provide common
area recreational improvements that are lacking the area, which would allow for the
expenditure of tax increment housing set-aside funds. The proposed Project would
create desirable market-rate family apartments, as well as provide for high quality very
Iow, Iow and moderate income housing. Due to the rapidly rising sale prices and rental
rates in the area, the existing units are increasingly becoming unaffordable to very Iow,
lower and moderate income households. The proposed Project would contain certain
long-term affordability restrictions that would increase and preserve the community's
supply of Iow and moderate income housing. It is determined that the proposed project
would not reduce the number of affordable housing units in the Project Area.
William A. Huston
Kenyon Drive Rehabilitation Project
May 5, 2003
Page 4
Approval of the Replacement Housing Plan for the proposed Kenyon Drive
Neighborhood Rehabilitation Project does not commit the Agency to funding project
costs until the Agency approves a DDA with the developer. If financial assistance is
provided for the proposed project through a DDA, Agency staff will prepare and present
for City Council and Agency consideration a resolution making the required legal
findings.
Christine A. Shingleton
Assistant City Manager
RDA report~vlay 5 Kenyon Dr Rehab.doc
J~m~s'A~.~ra~on ///'
Redevelopment Progh-~rh Manager
Attachment
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RESOLUTION NO. RDA 03-07
A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF TUSTIN, CALIFORNIA APPROVING AND
ADOPTING THE REPLACEMENT HOUSING PLAN FOR THE PROJECT
PROPERTY, LOCATED AT NEWPORT AVENUE AND KENYON DRIVE IN
THE CITY OF TUSTIN
The Tustin Community Redevelopment Agency DOES HEREBY RESOLVE as follows:
I. The Tustin Community Redevelopment Agency finds and determines as follows:
Ao
Pursuant to the Rules Governing Participation by Property Owners and
Business Tenants in the South Central Redevelopment Project Area, the
Tustin Community Redevelopment Agency ("Agency") has previously entered
into an exclusive offer to negotiate with Kenyon Drive Limited, LLC
("Developer") to redevelop the property located at Newport Avenue and
Kenyon Drive, and referred to as the Kenyon Drive Neighborhood (the
"Property"); and
Bo
It is anticipated that the Agency and Developer will negotiate a Disposition and
Development Agreement for the redevelopment of the Property which
proposes to remove 21 units, construct 8 new units and substantially
rehabilitate 104 exiting units (the "Project"); and
Co
Health and Safety Code Section 33413.5 requires the Agency to adopt a
Replacement Housing Plan not less than 30 days prior to executing an
agreement for the disposition and development of property which would lead
to the destruction or removal of dwelling units from the Iow and moderate
income housing market; and
D. A Replacement Housing Plan has been prepared for the Project and made
available for public review; and
E,
There will be no direct or indirect fiscal impacts on the Agency or physical
impacts on the environment from the approval and adoption of the
Replacement Housing Plan because it will be implemented until such time as
a Disposition and Development Agreement for redevelopment of the Property
is approved by the Agency; and
Fo
Environmental review in accordance with CEQA will occur prior to the
approval of a Disposition and Development Agreement for the proposed
Project; and
G. The Agency now desires to approve the Replacement Housing Plan.
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Resolution RDA No. 03-07
Page 2
NOW, THEREFORE, THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY
resolves as follows:
,
The Replacement Housing Plan is not a "project" subject to CEQA, because
it will not cause a direct physical change in the environment or a reasonably
foreseeable indirect physical change in the environment. Public Resources
Code Section 21065; 14 California Code of Regulations Section 153378(a).
.
The Replacement Housing Plan attached hereto is hereby approved and
adopted.
PASSED AND ADOPTED by the Tustin Community Redevelopment Agency of the
City of Tustin at a regular meeting on the 5th day of May, 2003.
TRACY WILLS WORLEY, Chairperson
PAMELA STOKER
Recording Secretary
STATE OF CALIFORNIA )
COUNTYOF ORANGE )
CITY OF TUSTIN )
SS
I, Pamela Stoker, Recording Secretary and ex-officio Recording Secretary of the
Community Redevelopment Agency of the City of Tustin, California, do hereby
certify that the whole number of the members of the Community Redevelopment
Agency of the City of Tustin is five; that the above and foregoing Resolution No.
RDA 03-07 was duly passed and adopted at a regular meeting of the Tustin
Community Redevelopment Agency, held on the 5th day of May 2003, by the
following vote:
AGENCYMEMBER AYES:
AGENCYMEMBER NOES:
AGENCYMEMBER ABSTAINED:
AGENCYMEMBER ABSENT:
PAMELA STOKER
Recording Secretary
REPLACEMENT HOUSING PLAN
FOR
THE PROPOSED
'KENYON DRIVE MULTI-FAMILY RESIDENTIAL ACQUISITION
AND
SUBSTANTIAL REHABILITATION PROJECT'
Prepared for
THE
CITY OF TUSTIN
COMMUNITY REDEVELOPMENT AGENCY
300 CENTENNIAL WAY
TUSTIN, CA 92780-3715
By
PACIFIC RELOCATION CONSUL TANTS
100 WEST BROADWAY AVENUE, SUITE 500
LONG BEACH, CALIFORNIA 90802
562.590.8564
May, 2003
II.
III.
IV.
Mo
VI.
VII.
INTRODUCTION .............................................
PROJECT DESCRIPTION AND LOCATION ........................ 5
UNITS TO BE REPLACED ..................................... 7
Survey Methodology ................................ 7
Replacement Housing Requirement .................... 7
Income Classification by HUD Standard ................ 8
Dwelling Unit Classification by Bedroom Count ........... 9
LOCATION OF REPLACEMENT HOUSING ....................... 12
FINANCING THE REPLACEMENT HOUSING ..................... 14
NON-APPLICABILITY OF ARTICLE XXXlV OF
THE CALIFORNIA CONSTITUTION ....... 15
TIME TABLE FOR REPLACEMENT HOUSING .................... 16
SUMMARY ................................................. 17
TABLES
TABLE 1.
TABLE 2.
TABLE 3.
TABLE 4.
HUD ANNUAL INCOME LIMITS BY CATEGORY -
ORANGE COUNTY (2003) ............. 8
PROSPECTIVE DISPLACEMENT DWELLINGS BY BEDROOM COUNT
AND HUD-BASED INCOME LEVELS ...... 10
DWELLING UNITS BY BEDROOM COUNT AND HUD-BASED INCOME
LEVELS WITHIN THE MUNICIPAL HOUSING STOCK 12
AVAILABLE NET BALANCE OF AFFORDABLE HOUSING UNITS
DEVELOPED WITHIN THE MUNICIPAL HOUSING STOCK . . 13
THE PROPOSED PROJECT
The City of Tustin Community Redevelopment Agency (the "Agency") has entered
into an Exclusive Negotiation Agreement (ENA) with 'Kenyon Drive Limited, LLC', (the
"Developer"), pursuant to the rules and regulations governing participation by property
owners and business tenants for which provision is made in the 'South/Central
Redevelopment Plan'.
The Developer is proposing to assemble one hundred twenty five (125) residential
dwelling units - comprising the area referred to as the 'Kenyon Drive Neighborhood' -
and, to:
remove twenty one (21) of the units - contained within three (3) buildings
and, a portion of a fourth building - comprising forty three (43) bedrooms,
to allow for the widening of Newport Avenue, in accordance with the City
of Tustin Capital Improvement Project No. 7131;
substantially rehabilitate one hundred four (104) existing dwelling units;
and,
· construct eight (8) additional rental units.
The proposed project will provide, therefore, a net total of one hundred twelve (112)
units of housing.
The Developer presently owns seven (7) parcels on Kenyon Drive; will acquire three
(3) additional parcels on Kenyon Drive to consolidate the rehabilitated, and newly-
constructed housing project under a single parcel; and, will acquire four (4) additional
parcels required for the widening of Newport Avenue.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 1
Tustin Redevelopment A~lenc¥ -Replacement Housing] Plan for Proposed 'Kenyon Drive Housin~ Project'
REQUIREMENT FOR
REPLACEMENT HOUSING PLANS
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 the acquisition of real
property, or an agreement for the disposition and development of property; either of
which would lead to the destruction, or removal of dwelling units from the Iow and
moderate income housing market. The plan should identify the impacts that a
particular redevelopment project will have on the community's supply of Iow, and
moderate income housing and, detail the measures that the agency will take to ensure
that the appropriate amount, and type - by bedroom count - of replacement housing is
produced within the specified four (4) year time requirement.
Section 33413(a) ofthe California Redevelopment Law requires that whenever dwelling
units housing persons and families of Iow, or moderate income are destroyed or
removed from the Iow and moderate income housing market as part of a
redevelopment project which is subject to a written agreement with a redevelopment
agency or, in respect of which financial assistance has been provided, the agency shall,
within four (4) years of the destruction or removal rehabilitate, develop, or construct; or
cause to be rehabilitated, developed, or constructed, for rental or sale to persons and
families of Iow or moderate income, an equal number of replacement dwelling units at
affordable housing cost within the redevelopment project areas or, within the '...
territorial jurisdiction of the agency.' Section 33411.4 provides that if insufficient
housing units are available for use by households of Iow, and moderate income
displaced by a redevelopment project, the agency may direct, or cause the
development, rehabilitation or construction of housing units within the community both
inside, and outside of redevelopment project areas.
Beginning January 01, 2002, one hundred percent (100%) of replacement dwelling
units shall be available at affordable housing cost to, and occupied by persons in the
same, or lower income category (i.e., 'Very Low', 'Lower' and, 'Moderate') as the
persons displaced from those units destroyed, or otherwise removed. As presently
configured, the proposed project will result in the destruction, or otherwise removal from
the city of Tustin housing inventory of twenty one (21) residential dwelling units, gross.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 2
Tustin Redevelopment A~enc¥ - Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project'
Section 33413(a) notwithstanding, Section 33413(f) states that an agency may replace
destroyed, or otherwise removed dwelling units with a lesser number of replacement
dwelling units if the replacement units meet both of the following criteria:
,
The total number of bedrooms in the
replacement dwelling units equals, or
exceeds the number of bedrooms in the
destroyed, or otherwise removed units; and,
,
The replacement units are affordable at the
same income level of the households which
previously occupied the destroyed, or
otherwise removed units.
Further, the units must be within the agency's "jurisdiction" (as noted above); in
standard condition; and, designed to remain affordable to 'Very Low', 'Lower' and,
'Moderate' income households, proportionately, for no less than the longest feasible
time as determined by the agency however, in no event shall that period of time be less
than the land use controls established in the pertinent redevelopment plan unless a
Iongerperiod is applicable under the Health & Safety Code §33413(c). (See: Assembly
Bill No. 637 enacted, and effective January 01,2002).
The Redevelopment Plans for the City of Tustin's two (2) Redevelopment Project Areas
are schedule to expire, as follows:
· South/Central 2015
· Town Center 2016
This Replacement Housing Plan (the 'Plan') has been prepared by the Agency as a
result of the proposed redevelopment of property located within the South/Central
Redevelopment Project Area and, to satisfy the requirements for replacement housing
pursuant to the provisions of California Redevelopment Law.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 3
Tustin Redevelopment A~lenc¥ - Replacement Housin~l Plan for Proposed 'Kenyon Drive Housin~l Project'
This Plan describes the following:
1. The proposed project;
.
The general location of the dwelling units for 'Very Low', 'Lower
and, 'Moderate' income persons; which units will, or may be
removed or destroyed as a result of the project;
The general location, and intentions for the development of
replacement housing;
.
The means of financing such development of replacement
housing;
o
The schedule for the construction of the replacement housing;
and,
6. The time period for which these units will remain affordable.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 4
'KENYON DRIVE HOUSING CONSTRUCTION
AND REHABILITATION PROJECT' (PROPOSED)
The Tustin Community Redevelopment Agency has entered into an Exclusive
Negotiation Agreement (ENA) with 'Kenyon Drive, Limited, LLC' ('Developer') to acquire
certain property on Newport Avenue and Kenyon Drive, in the city of Tustin, to provide
for the widening of the right-of-way (r.o.w.) on the easterly side of Newport Avenue, in
the vicinity of Kenyon Drive; and, to acquire certain parcels on Kenyon Drive, to be
assembled with properties on Kenyon Drive already owned by the Developer, for the
construction of new, and substantial rehabilitation of the existing residential dwelling
units.
There presently exist on the site of the proposed project one hundred twenty-five (125)
residential dwelling units. In the eventthe project proceeds, twenty one (21) residential
dwelling units will be removed to provide for the right-of-way widening and, eight (8)
new rental dwelling units will be constructed and, in concert with the substantial
rehabilitation of the remaining one hundred four (104) units, a net total of one hundred
twelve (112) units of affordable, rental housing will be provided. The project, if
implemented, will result in a net decrease of thirteen (13) units for households of 'Very
Low', 'Lower' and, 'Moderate' income.
As a result of the proposed project- and, particularly it's relationship to the provision
of affordable housing - the Agency has prepared this Replacement Housing Plan.
PROJECT LOCATION
The city of Tustin is located in Orange County, thirty six (36) miles south-east of
downtown Los Angeles. The site of the project is approximately three hundred fifty feet
(350') east of the 55 Freeway, accessible from the northbound lanes at the Sycamore
off-ramp.
Based upon the Assessor's Parcel Map, the total site of the proposed project is
comprised of fourteen (14) parcels of land on the north side of Newport Avenue,
between Tustin Grove Drive and Sycamore Avenue. Regional, and site-specific maps
may be found on the following page.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 5
Tustin Redevelopment A~]enc¥- Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project'
oGarden Grove
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i~ 2001 DeL°m~. S'~ ~ US~ · 2001
Kenyon Dnye Project
(Propoeed)
~ittle Joaquin ',Valley
~v~attlesnake
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Figure 1. Regional Project Location
E 'atlLS HIRE
2001 DeL~m~. ~'~ AO~ U$~ · 2001 .01~001 .
Figure 2. Specific Site Location
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 6
SURVEY METHODOLOGY
Absent the opportunity for on-site interviews with the prospective displacees, Agency
staff has obtained 'RENTAL HOUSING REHABILITATION PROGRAM TENANT'S
DATA- FORM 4', completed by fifty (50) of the tenants residing upon the site of the
proposed project. These fifty (50) questionnaires - dealing variously with household
size, income, age, racial and ethnic group cohort, monthly rent, dwelling unit size by
bedroom count, etc. - represent a forty percent (40%) response from all one hundred
twenty five (125) tenants queried. For analytical purposes, a twenty percent (20%)
response is traditionally considered to provide statistically significant results applicable
to the universe. This Replacement Housing Plan will use the extrapolated socio-
economic data from the respondents and apply same to the entire project site.
In addition, demographic, and other information obtained from public sources was also
reviewed, and analyzed (e.g., the Federal Department of Housing and Urban
Development [HUD] and, the Year 2000 Decennial Census)in assessing the Agency's
replacement housing requirement.
In the event the proposed project proceeds, this Replacement Housing Plan will be
updated if, during the course of displacement interviews, it is determined upon
certification of information obtained from residents, at that time, such information would
alter the results and/or recommendations contained herein.
REPLACEMENT HOUSING REQUIREMENT
Pursuant to the provisions of California Relocation Law (See: Section I.
INTRODUCTION), the Agency is required to make available one hundred percent
(100%) of the replacement dwelling units subsequently constructed, developed or,
substantially rehabilitated at costs affordable to, and to be occupied by households in
the same, or a lower income category by HUD 'Very Low', 'Lower' and, 'Moderate'
income standard as those households which would be displaced from those units
destroyed, or otherwise removed by implementation of the proposed project.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 7
Tustin Redevelopment A~tenc¥ -Replacement Housin~ Plan for Proposed 'Ken~/on Drive Housing Project'
INCOME CLASSIFICATION by HUD Standard
California Health & Safety Code Sections 50079.5 and, 50105 provide that the
'Very Low', 'Lower' and, 'Moderate' income limits established by the United
States Department of Housing and Urban Development (HUD) are the state
limits for those same income categories.
Sections 50079.5 and, 50105 direct the State Department of Housing &
Community Development (H&CD) to publish the income limits. HUD released
new income limits for this calendar year March, 2003. Accordingly, H&CD 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 H&CD pursuant to Health and Safety Code
Section 50093.
Table 1., following, provides the latest annual definition of those Federal, State-
adopted income categories, for Orange County, to define and determine housing
eligibility by income level, for certain programs; which limits will be utilized in this
Replacement Housing Plan for determining which units, by bedroom count, will
be required to be made available for households in the 'Very Low', 'Lower' and,
'Moderate' income categories.
TABLE 1. HUD ANNUAL INCOME LIMITS BY CATEGORY - ORANGE
COUNTY, 2003 (Area Four Person Median: $75,600.)
Family Extremely Very Low Lower Median Moderate
Size Low Ann ual Ann ual Ann ual Ann ual
Income Income Income Income Income
One Person $15,900. $26,450. $42,350. $52,900. $63,500.
Two Person $18,150. $30,250. $48,400. $60,500. $72,550.
Three Person $20,400. $34,000. $54,450. $68,050. $81,650.
Four Person $22,700. $37,800. $60,500. $75,600. $90,700.
Five Person $24,500. $40,800. $65,300. $81,650. $97,950.
Six Person $26,300. $43,850. $70,150. $87,700. $105,200.
Seven Person $28,100. $46,850. $75,000. $93,750. $112,450
Eight Person $29,950. $49,900. $79,850. $112,450. $119,700.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 8
Tustin RedevelopmentAgenc¥- Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project'
Based upon information provided in the self-administered, tenant surveys
returned by fifty (50) households, of the forty-eight (48) households (i.e., 38%
of the total resident universe) which provided income information, twenty seven
(27) dwelling units are reportedly occupied by households categorized as being
of 'Very Low' Income (56.25%); nineteen (19) dwelling units are occupied by
households of 'Lower' income (39.58%); and, two (2) dwellings are occupied by
households classified as 'Moderate' (4.17%). No housing units are reported as
being occupied by households of 'Above Moderate' income however, two (2)
households did neglect to provide income information in the surveys.
Applied to the total universe of one hundred twenty-five (125) housing units
within the overall project site, it may be reasonably assumed that, approximately
seventy (70) units upon the site of the proposed project are occupied by
households of 'Very Low' income; forty nine (49) units are occupied by
households of 'Lower' income; and, six (6) units are occupied by households of
'Moderate' income.
DWELLING UNIT CLASSIFICATION BY BEDROOM COUNT
As noted previously, at §33413., (f), State legislation provides that an agency
may replace destroyed, or otherwise removed dwelling units with a lesser
number of dwelling units if those replacement units meet two (2) qualifying
criteria. Specifically:
.
The total number of bedrooms in the replacement dwelling
units equals, or exceeds the total number of bedrooms in
the units destroyed, or otherwise removed from the
inventory; and,
,
The replacement units are "affordable" to the same income
levels of households displaced by the destruction, or other
removal of units from the inventory.
As presently planned, any loss of dwelling units will occur solely through the
widening of Newport Avenue (Assessor Parcel Numbers 402-142-05, 19, 21 and
22), resulting in the removal of one (1) four-plex; two (2) five-plexes; and, one
(1) ten-unit building for a total of twenty-four units however, through selective
demolition three (3) units will be saved and renovated, resulting in a total loss
through demolition of twenty one (21) units.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 9
Tustin Redevelopment Agenc¥ -Replacement Housing] Plan for Proposed 'Kenyon Drive Housin~ Project'
Based upon the forty eight (48) households - from amongst the fifty (50)
questionnaire respondents from the site of the proposed project - which provided
both income information, and dwelling unit size by bedroom count, the following
Table 2., defines the number of on-site dwelling units, with the corresponding
bedroom count, that will be destroyed, or otherwise removed from the City's
inventory of affordable housing; and, the "100% requirement" for the
replacement housing units by bedroom count and, income level relative to the
twenty one (21), prospective displacees households.
TABLE 2. PROSPECTIVE DISPLACEMENT DWELLINGS BY BEDROOM COUNT
AND HUD-based Income Levels (100% Replacement
Requirement)Tustin Community Redevelopment Agency -
'Kenyon Avenue Project' (Proposed)
Unit Size Units Units Units Total Required
by 'Very Low' 'Lower' 'Moderate' Replacement
Bedroom Income/ Income/ Income/ Units/
Count Bedroom Bedroom Bedroom Bedroom
One Bedroom 3/3 1/1 Nil 4/4
Two 7/14 6/12 Nil 13/26
Bedroom
Three 2/6 1/3 1/3 4/12
Bedroom
Total Units and 12/23 8/16 1/3 21/42
Bedrooms
Displaced
As a result of the above extrapolated analysis, there are indicated a total of forty two
(42) bedrooms amongst twenty one (21) residential dwelling units that need to be
rehabilitated, developed, or constructed pursuant to Section 33413(a) of the
Community Redevelopment Law.
Based on the one hundred percent (100%) replacement criteria, by income level, of the
households ostensibly occupying these forty two (42) bedrooms, it has been
determined that units containing twenty three (23) replacement bedrooms should be
affordable to households of 'Very Low' income; units containing twelve (12)
replacement bedrooms should be affordable to household(s)of 'Lower' income; and,
(a) unit(s) containing three (3) replacement bedrooms should be affordable to (a)
household(s) of 'Moderate' income.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 10
Tustin Redevelopment Agency -Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project'
Again, and as noted previously, the required bedroom count may be constructed within
a fewer number of dwelling units than to be destroyed, or otherwise removed from the
site of the proposed project, provided the total number of bedrooms required are
available to households within the same, or lower income category.
It should be further noted, however, that the removal of units required for the future
widening of the Newport Avenue road allowance is only peripherally-associated with the
proposed 'Multi-family Residential Acquisition and Substantial Rehabilitation Project'
of the Tustin Community Redevelopment Agency.
Subsequent to removal of units for the road widening, however, the agency will be
instrumental in the conversion and rehabilitation of existing one-bedroom units to
provide for the addition of twenty (20) bedrooms and, the construction of eight (8) new
units, with a total of nineteen (19) bedrooms. This housing rehabilitation, and
construction phase of the overall project alone will account for the development of thirty
nine (39) of the forty two (42)replacement bedrooms required for households of 'Very
Low', 'Lower' and, 'Moderate' income.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE I I
The proposed project presently under consideration in this plan notwithstanding, the
Agency has previously demolished, or otherwise removed from the overall municipal
inventory other dwelling units/bedrooms in connection with the development of projects
located in Redevelopment Project areas.
Commensurately, however, the agency has also caused to be rehabilitated, developed,
or constructed for rental or sale to persons and families of 'Very Low', 'Lowed and/or
'Moderate' income, dwelling units and bedrooms both within project areas and the
agency's territorial jurisdiction in numbers more than sufficient to meet it's obligations
pursuant to §33413. of California Redevelopment Law (CRL).
In addition to the net displacement/replacement effect described at Section II1., above,
the following Table 3. provides an illustrative enumeration of current units/bedrooms
developed through December, 2002 and, within the 'Heritage Place' project, minus the
agency's prior replacement obligation and, the existing net units/bedrooms available
to further aid in off-setting the impact of the project presently under consideration.
TABLE 3. DWELLING UNITS/BEDROOM COUNT BY HUD-BASED INCOME
LEVELS REPLACED WITHIN THE MUNICIPAL HOUSING STOCK -
TUSTIN~ CALIFORN IA
Units Produced/ 'Very Low' 'Lower' 'Moderate' Total Units/
Restrictions Income Units/ Income Units/ Income Units/ Bedrooms
Acquired Bedrooms Bedrooms Bedrooms Replaced
Through December, 108/124 415/693 15/45 538/862
2002
'Heritage Place' 53/64 Nil 1/2 54/66
Prior Replacement (25/51 ) (8/16) (8/15) (41/82)
Obligation (Minus)
Cumulative Net 136/137 407~677 8132 5511846
Balance
Increasel(Decrease)
As can be seen in Table 3., above, the net cumulative effect from the demolition, sale
or, other removal of affordable, residential dwelling units, by bedroom count, and further
classified by State-adopted 'Very Low', 'Lower' or, 'Moderate' income standards; and,
subsequent replacement of, and by Agency-supported units within those same
categories reflects a surfeit of affordable housing units/bedrooms for those of 'Very
Low', 'Lower' and/or 'Moderate' income within the city of Tustin.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 12
Tustin Redevelopment A~enc¥ - Replacement Housin~l Plan for Proposed 'Kenyon Drive Housing Project'
Based on the prior replacement obligations at Table 3., above, and the anticipated
replacement housing obligation under consideration in this Plan, the available housing
balance would be as indicated at Table 4., following.
TABLE 4. DWELLING UNITS/BEDROOM COUNT BY HUD-BASED INCOME
LEVELS - AVAILABLE NET BALANCE WITHIN THE MUNICIPAL
HOUSING STOCK -TUSTIN, CALIFORNIA
Units Produced/ 'Very Low' 'Lower' 'Moderate' Total Units/
Restrictions Income Units/ Income Units/ Income Units/ Bedrooms
Acquired Bedrooms Bedrooms Bedrooms Replaced
Cumulative Net Balance - 136/137 407/677 8/32 551/846
April, 2003
Newport Avenue R.O.W. - (12/23) (8/16) (1/3) (21/42)
Demolitions
Proposed Project - Added 3/13 2/10 3/16 8/39
Units and Bedrooms with
Affordable Covenants
Cumulative Net Balance 127/127 401/671 10/45 538/843
Increase/(Decrease)
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 13
As noted in the preceding Section IV., the cumulative impact of the proposed Kenyon
Drive project will have little negative impact upon the overall balance of housing
affordable to 'Very Low', to 'Moderate' income households in Tustin.
Nevertheless, it bears note that the Tustin Community Redevelopment Agency in
December, 2002, presented a mid-term review on the second, five-year implementation
plan for the Town Center, and South/Central Redevelopment Project Areas and,
therein, at 'SECTION II1., HOUSING ACTIVITIES', addressed the issue of the current,
and anticipated fund balances available within the Iow and moderate income housing
set-aside accounts. The combined fund balance for both Project Areas through fiscal
year 2001-2002 was one million one hundred twenty thousand six hundred eighteen
dollars ($1,120,618.) and estimated projections through fiscal year 2004-2005
anticipated a combined fund balance totaling five million seven hundred twenty
thousand five hundred sixty-five dollars ($5,720,565.).
Within this five-year implementation plan review the Agency- in addition to the review
of it's Iow and moderate income set aside fund balance - reviewed it's housing
production requirements; replacement housing requirements; and, proportional
expenditure requirements based on community need.
In addition to it's own Tax Increment (T.I.) revenues the Agency identified interest
earnings and bond proceeds as other sources of revenue however, in the current
economic environment, interest eamings had decreased and, a delay in the issuance
of bonds was anticipated; in part due to the difficulty in assembling properties to form
larger-scaled, redevelopment project opportunities in which to invest bond proceeds in
a timely manner.
Nevertheless, the Agency was successful in obtaining a one million one hundred fifty
thousand dollar ($1,150,000.)HELP loan through the California Housing Finance
Authority (CHFA) secured by set-aside fund deposits. This loan fund will be used to
provide short-term, bridge-financing to leverage other resources and assist in
implementing the Agency's programs for lower income housing development and,
substantial rehabilitation.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 14
Article 34 of the California Constitution pertains to law applicable to any '... Public
Housing Project.' Pursuant to Article 34, Section 1., no... 'Low rent housing project
·..' is to be developed, constructed or, acquired in any way by any state public body -
which includes cities, counties, districts, authorities, agencies or, any other subdivision
or public entity of the state - until, or unless a majority of the qualified electors of the
city, town or, county, in which it is proposed the 'low rent housing project' be developed,
constructed or, acquired, voting upon the issue, approve such project by voting in favor
at either an election held for that purpose or, a special or general election.
Crucial to, and for the purposes of Article 34 the term 'low rent housing project' shall
mean...
'...any development composed of urban or rural dwellings,
apartments or other living accommodations for persons of
Iow income, financed in whole or in part by the Federal
Government or a state public body or to which the Federal
Government or a state public body extends assistance by
supplying all or part of the labor, by guaranteeing the
payment of fiens, or otherwise (this writer's emphasis). For
the purposes of this Article only there shall be excluded from
the term "low rent housing project" any such project where
there shall be in existence on the effective date hereof, a
contract for financial assistance between any state public
body and the Federal Government in respect to such project.'
It is herewith found, and determined that the replacement housing being, or to be
developed, and constructed pursuant to this Replacement Housing Plan does not
require the approval of the voters of the city of Tustin pursuant to Article XXXlV, the
California Constitution. Neither ownership, nor rental housing are, or will be "low rent
housing projects" either as defined at Article XXXIV or, Section 37001 (b) of the
California Healthy & Safety Code. All such replacement housing will be privately
owned, and will not be exempt from real property taxes as would otherwise be the case
in the event of public ownership, and will not be financed-with direct, long-term
financing from a public body. The Agency will not "develop, construct, or acquire"
housing as described in Section 1 of Article XXXlV of the State Constitution, as it will
only be providing authorized assistance and, monitoring construction by imposition of
mandated, or authorized conditions.
PACIFIC RELOCATION OONSULTANTS (PRC) PAGE 15
The Agency has provided, to a considerable degree to date, support in the construction
and/or rehabilitation of replacement housing units sufficient to address the replacement
requirements of affordable housing discussed in this Plan; of which the Agency
anticipates utilizing a portion, thereof, as replacement for the housing units, by bedroom
count, required under this Plan, for those households of 'Very Low', 'Lower' and,
'Moderate' income.
As noted previously in this Plan, statistics in respect of units replaced with the provision
of Agency assistance and oversight- all as enumerated in Table 3. - have been derived
from the City of Tustin Community Redevelopment Agency's records.
The current affordability category and, bedroom count of those units which may be
removed as a result of the future road widening and implementation of the proposed
Kenyon Drive project are delineated in Table 2., and their (the units) impact upon any
surplus/(deficit) relative to prior activity is further reflected in Table 4., herein. As
further, and previously noted, however, the conversion of one-bedroom units within the
proposed project site to two-bedroom units and, the construction of eight (8) new units
will add further to the current, and substantial surplus of affordable units/bedrooms
available to those of 'Very Low', 'Lower' and, 'Moderate' income.
The Agency herewith acknowledges that replacement housing units must be affordable
in the same income categories, or lower than those being demolished, or otherwise
removed from the housing inventory and, will ensure that this result is realized.
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 16
In summary, a net total of forty two (42) bedrooms, within twenty one (21) "qualifying"
residential dwelling units will be removed as a result of the proposed widening of
Newport Avenue.
Based upon the one hundred percent (100%) replacement requirement, by income
level, of these forty two (42) bedrooms, twenty three (23) of the bedrooms affordable
to 'Very-Low' income households; sixteen (16) of the bedrooms affordable to 'Lower'
income households; and, three (3) of the bedrooms affordable to households of
'Moderate' income will be assessed against the current inventory.
The result of the above actions, coupled with the previous, and current activity of
affordable housing projects will yield in excess of the required number of replacement
dwelling units as mandated under California Redevelopment Law and the Housing and
Community Development Act and, a substantial surplus of such units/bedrooms will be
maintained.
The Tustin Community Redevelopment Agency continues to recognize both its legal,
and community responsibilities in this matter and is making an aggressive, sincere, and
good-faith effort to accomplish it's affordable housing goals both mandated, and
voluntarily adopted. The Agency retains its option to use other approaches and
strategies not discussed herein to fulfill its replacement housing obligations in a timely,
and efficient manner.
May, 2003
PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 1 7