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RESOLUTION NO. RDA 03-12
A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF TUSTIN, CALIFORNIA APPROVING AND
ADOPTING THE REPLACEMENT HOUSING PLAN FOR THE
PROPOSED LIBRARY EXPANSION PROJECT, LOCATED AT PREBLE
DRIVE BE-R/VEEN THIRD STREET AND MAIN STREET IN THE CITY OF
TUSTIN
The Tustin Community Redevelopment Agency DOES HEREBY RESOLVE as follows:
The Tustin Community Redevelopment Agency finds and determines as follows:
The Tustin Community Redevelopment Agency is conducting preliminary
planning and seeking State funding for the proposed expansion of the Tustin
Branch Public Library in the Town Center Redevelopment Project Area (the
"Project"), pursuant to which the Tustin Community Redevelopment Agency
("Agency") has entered into an negotiations with Property Owners to acquire
additional pamels located on Preble Drive between Third Street and Main
Street (the "Property") which are required to develop the Project; and
It is anticipated that the Agency will acquire and redevelop the Property as
part of the proposed Project, which would ultimately necessitate the removal
of four residential triplex properties and two residential care facility structures
comprised of 18 units having a total of 44 bedrooms which currently house
very Iow and lower income tenants. While the rest home rooms (units) have
been evaluated as residential units in the Replacement Housing Plan, further
legal clarification may determine that the rest home rooms are not defined as
"dwelling units" pursuant to California Redevelop Law and the Plan may be
amended to redefine the replacement obligations of such a facility or to
delete such units, accordingly; and
Health and Safety Code Section 33413:5 requires the Agency to adept 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 proposed Project
and made available for public review; and
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 not be implemented until such
time as specific discretionary approvals needed for the Project components
are approved by the City and Agency; and
The Tustin City Council previously approved a Negative Declaration for the
Tustin Library Expansion Project with the adoption of Resolution No. 02-49
any additional environmental actions or certifications necessary for Project
components in accordance with CEQA will occur prior to the approval of
components; and
G. The Agency now desires to approve the Replacement Housing Plan.
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Resolution RDA No. 03-12
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 4th day of August, 2003.
PAMELA STOKER
Recording Secretary
~' WORLEY, C airp/emon~
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 03-12 was duly passed and adopted at a regular meeting of the Tustin
Community Redevelopment Agency, held on the 4th day of August 2003, by the
following vote:
AGENCYMEMBERAYES:
AGENCYMEMBERNOES:
AGENCYMEMBERABSTAINED:
AGENCYMEMBER ABSENT:
Worley, Kawashima, Bone, Davert, Thomas
None
None
None
5)
[0)
O)
[0)
PAMELA STOKER
Recording Secretary
REPLACEMENT HOUSING PLAN
FOR
THE PROPOSED
'LIBRARY EXPANSION PROJECT~
PREPARED for
THE
CITY OF TUSTIN
COMMUNITY REDEVELOPMENT AGENCY
300 CENTENNIAL WAY
TUST~N, CA 92780-3715
By
PACIFIC RELOCATION CONSULTANTS (PRC)
100 WEST BROADWAY AVENUE, SUITE 500
LONG BEACH, CALIFORNIA 90802 ~.~.32
562.590.8564
July, 2003
INTRODUCTION ............................................. 1
PROJECT DESCRIPTION AND LOCATION ........................ 5
UNITS TO BE REPLACED ..................................... 7
Survey Methodology ................................ 7
Replacement Housing Requirement .................... 8
Income Classification by HUD Standard ................ 8
Dwelling Unit Classification by Bedroom Count .......... 10
IV. LOCATION OF REPLACEMENT HOUSING ....................... 12
V. FINANCING REPLACEMENT HOUSING ......................... 14
VI, NON-APPLICABILITY OF ARTICLE XXXlV OF
THE CALIFORNIA CONSTITUTION ....... 16
VII, TIME TABLE FOR REPLACEMENT HOUSING .................... 17
VIII. SUMMARY ................................................. 18
TABLES
TABLE 1.
TABLE 2.
TABLE 3.
TABLE 4.
HUD ANNUAL INCOME LIMITS BY CATEGORY -
ORANGE COUNTY (2003) ............. 9
PROSPECTIVE DISPLACEMENT DWELLINGS BY BEDROOM COUNT
AND HUD-BASED INCOME LEVELS .... 1 0/1 1
DWELLING UNITS BY BEDROOM COUNT AND HUD-BASED INCOME
LEVELS WITHIN THE MUNICIPAL AFFORDABLE HOUSING STOCK 12
AVAILABLE NET BALANCE OF AFFORDABLE HOUSING UNITS
DEVELOPED WITHIN THE MUNICIPAL HOUSING STOCK 13
THE PROPOSED PROJECT
The proposed Tustin Library Expansion Project (the Project) would replace the existing
Tustin Branch Library facility located at 345 East Main Street on an enlarged site that
encompasses the existing library and additional properties. At this time, development
of the Project would necessitate the acquisition of four parcels and the relocation of
both residential and commercial tenants. The parcels are improved with a nine unit
office complex, two single-story structures originally built as triplexes and converted to
house clients at the 'Tustin Hacienda Care' facility and a triplex housing employees of
that latter use. Subsequent acquisition - which would likely occur more than twelve
months in the future - may also involve acquisition of three additional triplexes and a
day care center for a total of four additional parcels. The remaining three (3) triplexes
located on the east side of Preble Avenue contain units currently available for rent to
the general public,
Anticipated funding for the Project would include grant funds pursuant to the California
Reading and Literacy Improvement and Renovation Act of 2000 (the California Library
Bond Act) and additional local funds. The Tustin Community Redevelopment Agency
(the Agency) will be responsible for alt land acquisition and relocation efforts.
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
propeKy, 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.
Pacific Relocation Consultants (PRC) PAGE 1
Tustin Redevelopment A,~enc}, - Replacement Housing Plan for Proposed 'Library Expansion' Proiec{
Section 33413(a) of the California Redevelopment Law requires that whenever dwelling
un ts hous ng 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 are required to 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 eighteen (18)
residential dwelling units.
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.
Pacific Relocation Consultants (PRC) PAGE 2
Tustin Redevelopment A~3ency - Replacement Housing Plan for Proposed 'Library Expansion' Project
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 determJned 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
longer period is applicable under the Health & Safety Code {}33413 et. seq.
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
Subsequently, however, Assembly Bill No. 637 was enacted - and made effective
January 01, 2002 - whereby "affordable" dwelling units provided by an Agency are
required to have affordabilJty covenants for minimum, fixed time periods irrespective of
the life of any one Project Area or Agency (and, hence, the applicability of land use
controls): Specifically, Assembly Bill 637 established those time limits at forty five (45)
years for ownership units and, fifty five (55) years for rental units.
This Replacement Housing Plan (the 'Plan') has been prepared by the Agency as a
result of the proposed redevelopment of property located within the Civic Center
Redevelopment Project Ama and, to satisfy the requirements for replacement housing
pursuant to the provisions of California Redevelopment Law.
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;
Pacific Relocation Consultants (PRC) PAGE 3
Tustin Redevelopment A~ency - Replacement Housing Plan for Proposed 'Library Expansion' Project
4. The means of financing such development of replacement
housing;
5o
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) P^~E 4
'TusTIN BRANCH LIBRARY
EXPANSION PROJECT' (PROPOSED)
The City of Tustin (City) and, the Tustin Community Redevelopment Agency (Agency)
are proposing to undertake a public improvement project entitled the Tustin Branch
Library Expansion Project in coordination with the Orange County Public Library
(OCPL), as the current library is inadequate in size and design. The existing library
serves a current service population of over one hundred fifty thousand (>150,000)
patrons; which client group is anticipated to grow to approximately one hundred ninety
thousand (190,000+/-) patrons by the year 2020. As many as one thousand (1,000)
people per day visit the current Tustin Branch Library and, annual cimulation is the
second highest in the OCPL system.
In addition to a nine unit commercial office complex and a children's day care business,
there currently exists on the site of the proposed project three (3) single-story
residential structures on the west side of Preble Avenue of which two structures are
used for long-term resident clients of the 'Hacienda Care' facility and, the third for
employees of that facility. In the event the project proceeds, a total of eighteen (18)
residential dwelling units will be ultimately removed to provide for the construction of
the library expansion project. This would include three (3) additional triplexes located
on the east side of Preble Avenue that ara currently available for lease to the general
public, resulting in a decrease of that number of units for households of'Ve~ Low' and
'Lower' income within the city of Tustin.
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 central Orange County (the County), bounded generally
by the cities of Santa Ana and Irvine and unincorporated portions of the County. The
city is served by the Santa Aha (Inter-state 5) and, Costa Mesa (State Route 55)
freeways and, is within approximately 2.5 miles of John Wayne Airport. (See Figure 1:
Regional Project Location)
Pacific Relocation Consultants (PRC) PAGE 5
Tustin Redevelopment A~]ency - Replacement Housing Plan for Proposed 'Library/Expansion' Project
The Project is in the immediate 'Civic Center' area of Tustin, bounded by Third Street
to the north, the existing Civic Center and Tustin Library Branch to the east, Main Street
to the south and, the main 'Hacienda Care Home' facility and the Tustin Water Yard to
the west. At this time, properties on the west side of Preble Avenue, between Third and
Main Street are proposed for acquisition for this project, with subsequent acquisition of
properties on the east side of Prable proposed in the future.
Figure 1. Regional Project Location
Pacific Relocation Consultants (PRC) PAOE 6
SURVEY METHODOLOGY
Efforts to obtain information from potentially impacted occupants of the Project have
been frustrated by legal counsel for the owner of the care facility, There is a record of
correspondence that memorializes the interchange between the City, PRC and, legal
counsel in this regard,
The limited information which is available concerning care facility and residential
occupants is based on interviews conducted with the facility owner over the last 24
months and impressions of the real property appraiser who physically surveyed the
properties which are subject to possible acquisition.
Residential Care Facility Occupants
The Tustin Hacienda Care Home is an 83 bed assisted living facility. The
physical premises are divided on three properties: 1) A main facility at 240 East
Third Street currently contains dining facilities and living accommodations for
residential care facility clients which is not part of the proposed acquisition, and
2) two additional propedies to the east of the main facility at 280-284 East Third
Street and 320-324 Preble which were built originally as triplexes and converted
to provide up to twenty (20) additional beds for the adjacent residential care/rest
home facility. The current client population at these properties is assumed to be
14-16 individuals.
Residential Occupants
There is one (1) tdplex located at 330-334 Preble Avenue that, when recently
appraised, contained two bedrooms in each unit. It is assumed based on
appraisal information that a member of each household at 330-334 Preble
Avenue is an employee of the Hacienda Care facility.
Pacific Relocation Consultants (PRC) PAGe 7
Tustin Redevelopment A~]ency - Replacement Housin9 Plan for Proposed 'Library Expansion' Project
The three additional triplexes located at 300-304, 325-329 and 335-339 Preble
Avenue contained, when appraised, two bedrooms each. By all appearances
from the street, each unit of the triplex appears to be occupied.
As noted above, this Replacement Housing Plan must use, by default, extrapolated
socio-economic characteristics regarding the residents. 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
amended if, dudng the course of actual 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 Redevelopment 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.
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.
Pacific Relocation Consultants (PRC) P^~E 8
Tustin Redevelopment Agency - Replacement Housing Plan for Proposed 'Lbrary Expansion' Project
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, providesthe latest annualdefinition 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
categodes.
TABLE 1. HUD ANNUAL iNCOME LIMITS BY CATEGORY - ORANGE
COUNTY, 2003 (Area Four Person Median: $75,600.)
Family Very Low Lower Median Moderats
Size Annual Annual Annual Annual
Income Income Income Income
One Person $26,450. $42,350. $52,900. $63,500.
Two Person $30,250. $48,400. $60,500. $72,550.
Three Person $34,000. $54,450. $68,050. $81,650.
Four Person $37,800. $60,500. $75,600. $90,700.
Five Person $40,800. $65.300. $81,650. $07,950.
Slx Pemon $43,850. $70,150. $87,700. $105,200.
Seven Pemon $46,850. $75,000. $93,750, $112,450
Eight Person $49,900. $79,850. $112,450. $119,700.
Based upon "industry standards", it is not unreasonable to assume that of the three (3)
employee households - each residing within one of the triplexes - one (1) is of 'Very
Low' income and, the other two (2) are of 'Lower' income. Based on owner-supplied
information from some time ago, it would appear that the residential care facility
occupants would be considered to be of 'Very Low' income pursuant to the 2003
income limits. Based on lease rates being charged, it would appear that approximately
thirty five percent (35%) of the triplex occupants on the east side of Preble Avenue
would qualif}/as being of 'Very Low' income and, sixty five percent (65%) would fall
within the 'Lower' income category pursuant to the 2003 income standards. Otherwise,
for reasons previously discussed no confirming income data are presently available.
Pacific Relocation Consultants (PRC)
PAGE0
Tustin Redevelopment Agency - Replacement Housln~l Plan for Proposed 'Library Expansion' Proiect
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.
The following Table 2., defines the number of on-site dwelling units, with the
corresponding bedroom count, that may 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 prospective
displacees households.
TABLE 2. PROSPECTIVE DISPLACEMENT DWELLINGS BY BEDROOM COUNT AND
HUD-based Income Levels (100% Replacement
Requirement)Tustln Community Redevelopment Agency -
'Library Expansion Project' (Proposed)
Address No. Bedrooms Total 'Very Low' 'Lower'
of Bedrooms Income Income
Units Units/Bedrooms Units/Bedrooms
300-304 Preble 3 2 6 1/2 2/4
325-329 Preble 3 2 6 112 2/4
335-33g Preble 3 2 6 1/2 2/4
280-284 Third Street' 3 3 9 3/9 Nil
320-324 Pmble* 3 3 (+2) 11 3/11 Nil
330-334 Preble 3 2 6 1/2 2/4
Totala; 18 J 44 10128 8116
Pacific Relocation Consultants (PRC) P^~ lO
Tustin Redevelopment Agency - Replacement Housing Plan for Proposed 'Library Expansion' ProJect..
TABLE 2. - NOTE
* These units - formerly two-bedroom triplex units - have been
modified, with all kitchens removed, to serve as additional rooms
as part of the adjacent senior citizen rest home. While the rest
home rooms (units) have been evaluated as residential units In
this Plan, further legal clarification may determine that the rest
home rooms are not defined as "dwelling units" pursuant to
California Redevelopment Law and, this Plan may be amended to
redefine the replacement obligations of such a facility or to delete
such units, accordingly.
As a result of the above analysis and, subject to further legal clarification as noted,
there are indicated at this time a total of forty four (44) bedrooms amongst eighteen
(18) 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 four (44) bedrooms, it has been
determined that units containing twenty eight (28) replacement bedrooms should be
affordable to households of 'Very Low' income and units containing sixteen (16)
replacement bedrooms should be affordable to households of 'Lower' income.
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.
Pacific Relocation Consultants (PRC)
PAGE11
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 displacement 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 aid in off-
setting the impact of the Library Expansion 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 Bedroome Bedrooms Replaced
Through December, 1081124 415/693 15/4S 538/862
2002
Prior ReplaCement (25/51) (8/16) (8115) (41/82)
Obligation (Minus)
Incr~el{Decraase)
As can be seen in Table 3., above, the net cumulative effect from the demolition, sale
or, other removal of afTordable, 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)
PAGE12
Tustin Redevetopment A~enc~' - Replacement Housing Plan for Proposed 'Library Expansion' Project
Based on the prior replacement obligations at Table 3., above, and the an~cipated
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-I~ASED INCOME
LEVELS - AVAILABLE NET BALANCEWITHIN THE MUNICIPAL
HOUSING STOCK - TUSTIN, CALIFORNIA
Units Produced/ 'Very Law' 'Lower' 'Moderate' Total Units/
RestrlctJon~ Income Unite/ t Income Unite/ Income Units/ Bedrooms
Acquired Bedrooms Bedrooms Bedrooms Replaced
Cumulative Net Balanc~ - 136/137 407/677 6/32 551/846
Apdl, 2003
Newport Avenue R.O.W. - (12/23) (8/16) (113) (21/42)
Demolitions/Removals
Kenyo~ Drive Project - 3/13 2/10 3/16 6/39
Added UnitsJ~edmoms will
Cumulatlv, N®tB.l,n=, I t17/99 I 393/6S$ I t0/45 I S20/799
Pacific Relocation Consultants (PRC)
PAGE13
As noted in the preceding Section IV., the cumulative impact of the proposed Tustin
Library Expansion 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 beginning, combined fund balance for both Project Areas in
fiscal year 2001-2002 was five million one hundred forty thousand three hundred forty
five dollars ($5,140,345.), with the estimated annual deposit through fiscal year 2004-
2005 totaling five million seven hundred twenty thousand five I"iundred sixty-five dollars
($5,720,565.).
The current year end (June 30, 2003) combined fund balance is nine million four
hundred forty four thousand one hundred dollars ($9,444,100.), while the
unencumbered/available fund balance is five million eight hundred seventy nine
thousand nine hundred dollars ($5,879,900.).
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 then
economic environment, interest earnings had decreased and, a delay in the issuance
of bonds was anticipated; in part due to the difficulty in assembling properties to form
relatively larger-scale, redevelopment project opportunities in which to invest bond
proceeds in a timely manner.
Nevertheless, the Agency was successful in obtaining e 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.
Pacific Relocation Consultants (PRC)
PAGE14
Tustin Redevelopment Agency - Replacement Housin~l Plan for Proposed *Librar~ Expansion' Project
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, substantiaJ rehabilitation.
Pacific Relocation Consultants (PRC) PAGE 15
Article 34 of the Califomia 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 anyway 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 parl 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 financi.al 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 previously acquired,
developed, or constructed as an off-set against any loss pursuant to this Replacement
Housing Plan did not require the approval of the voters of the city of Tustin pursuant to
Article XXXIV, the California Constitution. Neither ownership, nor rental housing is, or
will be "low rent housing projects" either as defined at Article XXXIV or, Section 37001
(b) of the Califomia Healthy & Safety Code. All such replacement housing is, or 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 neither was, nor will be financed with
direct, long-term financing from a public body. The Agency has not, nor will it "develop,
construct, or acquire" housing as described in Section 1 of Article XXXIV of the State
Constitution, as it has only, or will be only providing authorized assistance and
monitoring construction by imposition of mandated, or authorized conditions.
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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', and 'Lower'
income.
As noted previously in this Plan, statistics in respect of units rep/acedwith 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 cun'ent affordability category and, bedroom count of those units which may be
removed as a result of the proposed Library Expansion Project are delineated in Table
2. and their (the units) impact upon any surplus/(deficit) relative to pdor activity is
further reflected in Table 4., herein,
The Agency herewith acknowledges that replacement housing units must be affordable
in the same income categories, or Iowerthan those being demolished, or otherwise
removed from the housing inventory and, will ensure that this result is realized.
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P^G~ 17
In summary - and, subject to legal clarification regarding the definition of"dwelling units"
pursuant to California Relocation Law viz-a-viz rooms within "rest homes" - a net total
of forty four (44) bedrooms, within eighteen (18) "qualifying" residential dwelling units
will be removed as a result of the proposed expansion of the Tustin Library.
Based upon the one hundred percent (100%) replacement requirement, by income
level, of these forty four (44) bedrooms, twenty eight (28) affordable to 'Very-Low'
income households and sixteen (16) affordable to 'Lower' income households will be
assessed against the current inventory.
The result of the above actions, coupled with the previous, and current activity of
affordable housing projects in Tustin yields 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 retain~ its option to use other approaches and
strategies not discussed herein to fulfill its replacement housing obligations in a timely,
and efficient manner.
July, 2003
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