HomeMy WebLinkAbout10 HOUSING ACTIVITIES 01-03-05
AGENDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
MEETING DATE: JANUARY 3, 2005
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: REDEVELOPMENT AGENCY STAFF
SUBJECT: TIME LIMIT EXTENSION FOR INITIATION OF HOUSING ACTIVITIES
FOR PROPERTY ACQUIRED BY THE AGENCY
SUMMARY
A Time limit extension for initiation of low and moderate-income housing activities for
property acquired for affordable housing purposes in the South Central Redevelopment
Project Area.
RECOMMENDATION
It is recommended the Tustin City Council take the following action:
Adopt Resolution No. 05-06 approving the extension by a five-year period the time limit
to initiate activities consistent with the development of properties acquired by the
Agency for low and moderate-income housing purposes.
FISCAL IMPACT
Adopting Resolution No. 05-06 will have no fiscal impact at this time. Any future fiscal
impacts will be brought to the Agency for review prior to the Agency's initiation of
affordable housing activities at the properties.
BACKGROUND/DISCUSSION
In June 1999 an owner participant in the South Central Project Area submitted an offer
to sell to the Agency two residential fourplex apartments located at 14741 and 14751
Newport Avenue. The South Central Redevelopment Plan provides that an owner of
real property in the project Area shall be given an opportunity to participate in
redevelopment, including offering in writing to sell their property to the Agency for its fair
market value, and the Agency must respond to such written offer within 18 months fro 111
the date of receipt of the offer.
The Agency approved the purchase of the properties in December, 1999 and closed
escrow on January 7, 2000. The Agency's objective was to assemble properties in the
immediate neighborhood into a single ownership or management entity and to
substantially rehabilitate to units in order to improve the community's supply of
City Council Report
Time Limit Extension for Housing Activities
January 3, 2005
Page 2
affordable housing.
California Health and Safety Code Section 33334.16 requires that for each interest in
property acquired using moneys from the Low and Moderate Income Housing Fund, the
agency shall, within five years from the date it first acquires the property interest, initiate
activities consistent with the development of the property for low and moderate income
purposes. If these activities have not been initiated within this period, the legislative
body may, by resolution, extend the period during which the Agency may retain the
property for one additional period not to exceed five years. The resolution of extension
shall affirm the intention of the legislative body that the property be used for the
development of housing affordable to persons and families of low and moderate
income. In the event that development of the property for this purpose has not begun
by the end of the extended period, or if the agency does not comply with this
requirement, the property shall be sold and the moneys from the sale, less
reimbursement to the agency for the cost of the sale, shall be deposited in the agency's
Low and Moderate Income Housing Fund.
ANALYSIS
Since the acquisition of the properties the existing units have remained occupied at
affordable rents to persons and families of very low and low income. During this period
the Agency has reviewed additional properties in the immediate surrounding area but
has not been able to negotiate acquisitions due to the desire of the property owners to
hold their investment properties in a rising real estate market. The area has
experienced property value increases over 300% during this period along with
substantial increases in market rents.
Nevertheless, the increasing rents in the area make the improvement and preservation
of units for persons of low and moderate income a major consideration for use of the
moneys in the Low and Moderate Income Housing Fund. This continued commitment
to the original intent for acquiring the properties is reflected in the recently adopted Third
Five Year Implementation Plan for Housing Activities in the South Central Project Area.
The proposed resolution is exempt from the California Environmental Quality Act
(CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) because it is a fiscal and
program activity that does not involve the commitment to a specific project which may
result in a potentially significant physical impact the environment.
City Council Report
Time Limit Extension for Housing Activities
January 3, 2005
Page 3
Agency staff will be available to respond to any questions at the City Council's meeting
of January 3, 2005.
Christine A. Shingleton
Assistant City Manager
Jim Draughon
Redevelopment Program Manager
Attachment:
Resolution No. 05-06
DRAFT
RESOLUTION NO. 05-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, EXTENDING THE TIME LIMIT FOR
INITITATION OF AFFORDABLE HOUSING ACTIVITIES FOR
PROPERTIES ACQUIRED BY THE AGENCY USING LOW AND
MODERATE INCOME HOUSING FUNDS
The City Council of the City of Tustin DOES HEREBY RESOLVE as follows:
I.
The City Council finds and determines as follows:
A.
The Redevelopment Agency of the City of Tustin ("Agency") is
vested with the responsibility to carry out the Redevelopment Plan in
accordance with the Community Redevelopment Law (CRL), Health
and Safety Code Section 33000, §§§.9.; and
CRL Section 33334.2 requires that not less than twenty percent
(20%) of all taxes that are allocated to the Agency pursuant to CRL
Section 33670 shall be used by the Agency for purposes of
increasing, improving and preserving the community's supply of low
and moderate income housing available at affordable housing cost;
and
B.
C.
CRL Section 33334.3 requires that funds to be used for purposes of
increasing and preserving the community's supply of low and
moderate income housing pursuant to CRL Section 33334.2 shall be
held in a separate Low and Moderate Income Housing Fund until
used; and
CRL Section 33334.16 requires that for each interest in property
acquired an agency using moneys from the Low and Moderate
Housing Fund, the agency shall, within five year from the date it first
acquires the property interest, initiate activities consistent with the
development of the property for low and moderate income purposes.
If these activities have not been initiated within this period, the
legislative body may, by resolution, extend the period during which
the agency may retain the property for one additional period not to
exceed five years; and
D.
E.
On January 7, 2000 the Tustin Community Redevelopment Agency
acquired property in the South Central Redevelopment Project Area
located at 14741 and 14751 Newport Avenue using moneys from the
Low and Moderate Income Housing Fund pursuant to CRL Section
33334.2(e) for the purpose of improving the community's supply of low
and moderate income housing; and
Resolution No. 05-06
January 3,2005
Page 2
F.
The City Council desires by this Resolution to affirm the intention that
the properties located 14741 and 14751 Newport Avenue shall be
developed for the purpose of improving the community's supply of
low and moderate income housing.
NOW, THEREFORE, the City Council of the City of Tustin resolves as
follows:
Section 1. The Recitals above are fully incorporated into this resolution
and finding.
Section 2. The City Council, as the legislative body in the South Central
Redevelopment Project Area finds and determines that the time limit for initiating
activities consistent with the development of the properties located at 14741 and
14751 Newport Avenue for low and moderate income purposes be extended for
an additional five-year period.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on
the 3rd day of January 2005.
LOU BONE, Mayor
PAMELA STOKER
City Clerk
Resolution No. 05-06
January 3, 2005
Page 3
STATE OF CALIFORNIA)
COUNTY OF ORANGE)
CITY OF TUSTIN )
ss
I, Pamela Stoker, City Clerk and ex-officio City Clerk of the City Council of
the City of Tustin, California, do hereby certify that the whole number of
the members of the City Council of the City of Tustin is five; that the above
and foregoing Resolution No. 05-06 was duly passed and adopted at a
regular meeting of the Tustin Community Redevelopment Agency, held on
the 3rd day of January 2005, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
City Clerk
RDA\CC Reso 05-10 Time Limit Extension for Initiating Housing Activities.doc