HomeMy WebLinkAboutRDA RES 03-07 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: A. 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 B, 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 C, 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 F, 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. Resolution RDA No. 03-07 Page 2 NOW, THEREFORE, THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY resolves as follows: 1. 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). 2. 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. ~~Cy LLS WORLEY, 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 WORLEY, KAWASHIMA, BONE, DAVERT, THOMAS NONE NONE NONE 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 CONSULTANTS 100 WEST BROADWAY AVENUE, SUITE 500 LONG BEACH, CALIFORNIA 90802 562,590.8564 May, 2003 I. INTRODUCTION ............................................. 1 II. PROJECT DESCRIPTION AND LOCATION ........................ 5 III. IV. 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 V. FINANCING THE REPLACEMENT HOUSING ..................... 14 VI. NON-APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION ....... 15 VII. TIME TABLE FOR REPLACEMENT HOUSING .................... 16 -VIII. SUMMARY ................................................. 17 TABLES TABLE 1. TABLE 2. HUD ANNUAL INCOME LIMITS BY CATEGORY - ORANGE COUNTY (2003) ............. 8 PROSPECTIVE DISPLACEMENT DWELLINGS BY BEDROOM COUNT AND HUD-BASED INCOME LEVELS ...... 10 TABLE 3. DWELLING UNITS BY BEDROOM COUNT AND HUD-BASED INCOME LEVELS WITHIN THE MUNICIPAL HOUSING STOCK 12 TABLE 4. 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 Agency- Replacement Housing Plan for Proposed'Kenyon Drive Housin~l 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 low, 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 Agency Replacement Housing Plan for Proposed'Kenyon Drive Housin~l 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: 1, 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, 2, 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 longerperiod 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. RELOCATION OONSUL'~ANT'S (PRC) PAGE 3 Tustin Redevelopment Agency- Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project' This Plan describes the following: 1. The proposed project; 2. 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; 3. The general location, and intentions for the development of replacement housing; 4. The means of financing such development of replacement housing; 5. 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 event the 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)-bnits 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 Housin~l Plan for Proposed 'Kenyon Drive Housin~l Proiect' I~e~tyo~t Dr~ ?rOJect vLomz R Figure 1. Regional Project Location E WILSHIRE /~.LT ^D I= N~: ~ 2~1 DeLc~me. S1re~ AL~ USA4 · 2001 ~l. 01/2001 Figure 2. Specific Site Location Kenyoa Dhve Pzoject (?zoposed) 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~enc¥ - Replacement Housing Plan for Proposed'Kenyon 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.) FaT ily Extremely Very Low Lower Med lan 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 Redevelopment Agency- Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project' Based upon information provi~led 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: 1. 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, 2. 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 demofition of twenty one (21) units. PACIFIC RELOCATION CONSULTANTS (PRC) PAGE 9 Tustin Redevelopment A~lenc¥ -Replacement Housing Plan for Proposed 'Kenyon Drive Housing Project' Based upon the forty eight (48) households - from amongst the fifty (50) questionnaire respondents from the site ofthe 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/ndicated 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 A~enc¥ - 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 OONSUL TANTS (PRC) PAGE 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', 'Lower' 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, CALIFORNIA 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 8~32 551/846 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 I 2 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 I 5381843 Increase/(Decrease) I 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 !11., 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 liens, 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 XXXIV, 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 XXXIV of the State Constitution, as it will only be providing authorized assistance and, monitoring construction by imposition of mandated, or authorized conditions. PACIFIC RELOCATION CONSULTANTS (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 housin, g discussed in this Plan; of which the Agency anticipates utilizing a portion, thereof, as replacementfor 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 17