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HomeMy WebLinkAboutItem 1a: Resolution ARA 239 Approving Replacement Housing Plan for 16 Campus Drive - Campus Commons Senior Housing ProjectPT' PIM ill iii ii DATE: October 5, 2010 TO: Chairman and Members of the Agency Board STAFF REPORT Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager /Development Services Directora.K By: Jerry Schwartz, Economic Development Manager y am( SUBJECT: RESOLUTION NO. ARA -239 APPROVING THE REPLACEMENT HOUSING PLAN FOR 16 CAMPUS DRIVE — CAMPUS COMMONS SENIOR HOUSING PROJECT Recommendation: Adopt Resolution No. ARA -239 SUMMARY The Campus Commons Senior Housing Project will be a 43 -unit development at 16 Campus Drive. There are currently seven apartments on the project site. Since these apartments will be demolished, removing them from the current housing stock in Arcadia, the Agency Board is required to approve a Replacement Housing Plan that provides information about the units and how they will be replaced. BACKGROUND The seven apartments at 16 Campus Drive qualify as low or moderate income housing. As such, the demolition of those units and their replacement must be documented. In fact, California Redevelopment Law requires that the Agency adopt a Replacement Housing Plan before the developer can demolish any affordable units. While the demolition is not anticipated until late this year or early 2011, it is another important step for the Campus Commons project to have this Plan approved at this time. DISCUSSION The attached Replacement Housing Plan meets the requirements of California Redevelopment Law, which requires: • The general location of the replacement housing units to be developed; • An adequate means to finance the replacement housing units; • A finding that the approval of the voters under Article XXXIV is not required prior to the development of the replacement housing; • The number of replacement dwelling units for low or moderate income persons or families; and, • The timetable for meeting the replacement housing plan's relocation, rehabilitation, and replacement housing objectives. ARA -239 October 5, 2010 Page 2 of 2 Specifically, the existing apartments at 16 Campus Drive include three (3) one bedroom units and four (4) studio units. Four of the current renters qualify as low income. The apartments range in size from about 500 square feet to 650 square feet. None of the current occupants is a senior citizen. These seven apartment units will be replaced by the 43 -unit Campus Commons Senior Housing Project, which will include 34 one bedroom /one bath units and 9 two bedroom /one bath units, for a total of 52 bedrooms. One of the one bedroom /one bath units will be reserved as a manager's unit and not considered replacement housing. This new construction of 51 bedrooms reserved as replacement housing will more than exceed the three bedrooms and four studios on the site today. The Campus Commons project will be financed with a combination of tax credits, tax exempt bonds, deferred developer fees, and a loan from the Agency's low /mod housing fund. The Agency has approved the Owner Participation Agreement that provides for the long term loan, and the State of California has approved the tax exempt bond allocation for the project. The project should start construction in early 2011 and is anticipated to take about 14 -16 months to complete. These replacement units should be available around mid -2012, well within the four year timeframe required by State Law. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The Replacement Housing Plan is not considered a project per CEQA (CEQA Guidelines, Section 15061 (b) (3)). The Campus Commons project was approved with a Negative Declaration on July 6, 2010 as part of the approval of the entitlements for the project. FISCAL IMPACT The requirement to replace the seven units at 16 Campus Drive will be met by the Campus Commons project, which will be funded, in part, by a long term loan from the Agency's low /mod housing fund of up to $6.9 million. There is no specific fiscal impact from this Replacement Housing Plan and there is no impact on the General Fund. RECOMMENDATION Adopt Resolution No. ARA -239 approving the Replacement Housing Plan for 16 Campus Drive, the Campus Commons Senior Housing Project. Approved by: Tey1 R, .,...— o,.- -J Donald Penman, Executive Director Attachments: Resolution No. ARA -239 Replacement Housing Plan RESOLUTION NO. ARA -239 A RESOLUTION OF THE GOVERNING BOARD OF THE ARCADIA REDEVELOPMENT AGENCY APPROVING AND ADOPTING A REPLACEMENT HOUSING PLAN IN CONJUNCTION WITH THE PROPOSED CAMPUS COMMONS HOUSING PROJECT WHEREAS, pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) ( "CRL "), the Arcadia Redevelopment Agency ( "Agency ") is engaged in activities necessary to execute and implement the Redevelopment plan ( "Redevelopment Plan ") for the Agency's Central Redevelopment Project Area ( "Project Area "); and WHEREAS, in accordance with CRL and the Redevelopment Plan, the Agency desires to develop an affordable housing project commonly referred to as the "Campus Commons Senior Housing Project" ( "Housing Project ") consisting of approximately 43 units on certain property ( "Property ") located in the City of Arcadia ( "City "); and WHEREAS, the completion of the Housing Project will result in the destruction and removal of dwelling units from the City's low and moderate income housing market; and WHEREAS, CRL Sections 33413(a) and 33413.5, require redevelopment agencies to develop and adopt, by resolution, a replacement housing plan prior to executing any agreement which will result in the destruction or removal of dwelling units from the low and moderate income housing market; and WHEREAS, pursuant to the California Relocation Act (Government Code Section 7260 et seq.) ( "Act "), CRL Sections 33411, 33411.1, 33413(a) and 33413.5 and California Code of Regulations, Title 25, Chapter 6, Subchapter 1 ( "Guidelines "), the Agency has prepared a replacement housing plan which is attached to this Resolution as Exhibit "A" 2 and incorporated herein by reference ( "Replacement Housing Plan ") in connection with the proposed Housing Project; and WHEREAS, the Replacement Housing Plan was made available for public review on September 27, 2010; and WHEREAS, the Agency has reviewed the Replacement Housing Plan and considered all comments and public testimony thereon, and determined that the Replacement Housing Plan complies with the requirements of the Act, CRL and the Guidelines, as applicable, and is in the best interest of the City and the health, safety and welfare of the City's citizens; and WHEREAS, the Agency has determined that the requirements of Article XXXIV of the California Constitution, which requires an election to be held in the City in the event of the acquisition, construction, development of a low -rent housing project , does not apply to the Housing Project because: (i) the Housing Project involves the replacement of existing housing currently occupied by low and moderate income households, including lower- income households as defined in CRL Section 50079.5; and (ii) Agency assistance is limited to monitoring construction and compliance with conditions of such assistance to the extent of: 1. Carrying out routine governmental functions. 2. Performing conventional activities of a lender. 3. Imposing statutorily authorized conditions accepted by the grantee of assistance. WHEREAS, the Agency has determined that the location, purpose, and extent of the Housing Project conforms to the City's general plan; and 3 WHEREAS, in accordance with the California Environmental Quality Act (California Public Resources Code Section 21000, et seq.) ( "CEQA "), State CEQA Guidelines and the Agency's Local CEQA Guidelines, the Agency has determined approval of the Replacement Housing Plan is exempt from the requirements CEQA, State CEQA Guidelines and the Agency's Local Guidelines, pursuant to State CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that such approval will not result in a potentially significant physical impact on the environment; and WHEREAS, pursuant to the foregoing, the Agency has determined that a notice of exemption ( "Notice of Exemption ") for approval of the Replacement Housing Plan should be filed pursuant to CEQA, the State CEQA Guidelines and the Agency's Local CEQA Guidelines. NOW, THEREFORE, THE ARCADIA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Approval of Replacement Housing Plan. The Governing Board of the Agency approves and adopts the Replacement Housing Plan in the form attached hereto as Exhibit "A ". SECTION 2. Other Actions. The Governing Board of the Agency hereby authorizes the Executive Director of the Agency, or his designee, to implement and carry out the Replacement Housing Plan and to execute any documents and take any other actions necessary or convenient for the proper accomplishment of the purposes of the Replacement Housing Plan. SECTION 3. CEQA Compliance. The Governing Board of the Agency directs Agency staff to file a Notice of Exemption with the Los Angeles County Clerk's Office within five (5) days from the adoption of this Resolution. 4 SECTION 4. Effective Date. This Resolution shall become effective upon its adoption. SECTION 5. The Secretary shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2010. ATTEST: Agency Secretary APPROVED AS TO FORM: Stephen P. Deitsch Agency Counsel 5 Chairperson Arcadia Redevelopment Agency EXHIBIT "A" TO RESOLUTION NO. ARA -239 Replacement Housing Plan 6 Replacement Housing Plan for Campus Commons Affordable Housing Project Redevelopment Agency of the City of Arcadia 240 West Huntington Drive Arcadia, CA 91006 October 5, 2010 Replacement Housing Plan for Campus Commons Affordable Housing Development ( "Campus Commons ") 1. INTRODUCTION II. DEFINITIONS Housing Replacement Plan Page 1 17705.0003212971839.2 The Redevelopment Agency of the City of Arcadia (the "Agency ") is proposing to provide replacement housing for seven (7) apartment units located at 16 Campus Drive. Section 33413.5 of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.) requires the Agency to adopt by resolution a replacement housing plan not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low -and moderate - income housing market. For a reasonable time prior to adopting a replacement housing plan by resolution, the agency shall make available a draft of the proposed replacement housing plan for review and comment by the project area committee (if there is one), other public agencies, and the general public. This Replacement Housing Plan (the "Plan ") has been prepared to satisfy the requirements for replacement housing under the California Community Redevelopment Law and includes the following components: • The estimated number of dwelling units housing persons and families of low - or moderate - income to be removed and replaced by construction or rehabilitation; • The general location of housing to be rehabilitated, developed or constructed pursuant to Section 33413; • An adequate means of financing such rehabilitation, development, or construction; • The timetable for meeting the Replacement Housing Plan's relocation, rehabilitation, and replacement housing objectives; and • A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. The following definitions will govern in the context of this Plan unless otherwise stipulated herein: 17705.0003212971839.2 A. Very Low - Income Household Persons and families whose gross household income does not exceed 50 percent of the area median income adjusted for family size as more specifically defined in Section 50105 of the California Health and Safety Code. B. Lower - Income Household Persons and families whose gross household income does not exceed 80 percent of the area median income adjusted for family size as more specifically defined in Section 50079.5 of the California Health and Safety Code. However, for purposes of this Housing Replacement Plan, "Lower- Income Household" shall refer to persons and families whose gross household income does not exceed 60 percent of the area median income. C. Affordable Renter - Occupied Housing Cost Section 50053 of the California Health and Safety Code states that for any rental housing development, "affordable rent" including a reasonable utility allowance, shall not exceed: 1. For very low- income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. 2. For lower- income households whose gross income exceeds the maximum income for very low- income, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for any lower- income household that has a gross income that exceeds 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of the gross income of the household. D. Comparable Replacement Dwelling or Replacement Dwelling Unit In accordance with the provisions of Division 7, commencing with Section 7260 of the Government Code (the "Act ") and California Code of Regulations, Title 25, Chapter 6, Subchapter 1 (the "Guidelines "), adopted in order to implement, interpret and to make specific provisions of the Act, a comparable replacement dwelling is a dwelling which satisfies each of the following standards: 1. Decent, safe, and sanitary. 2. Adequate in size to accommodate the occupants. 3. In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus Housing Replacement Plan Page 2 any replacement housing payment available to the person, does not exceed 30 percent of the person's average monthly income'. 4. Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature -by- feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features shall be present. 5. In an area not subject to unreasonable adverse environmental conditions. 6. In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment. 7. Available on the private market to the displaced person and available to all persons regardless of race, color, sex, martial status, religion, or national origin in a manner consistent with Title VIII of the Civil Rights Act of 1968 or any other applicable state or federal anti - discrimination law. III. REPLACEMENT HOUSING REQUIREMENTS 1 For those who, pursuant to the criteria set forth in Government Code section 7260(i)(3)(A) through (J), would have qualified as a "displaced person" prior to January 1, 1998, the applicable figure shall be twenty -five percent (25 %) of the person's average monthly income. Housing Replacement Plan Page 3 17705.0003212971839.2 Section 33413(a) of the Health and Safety Code requires that whenever low- or moderate - income household dwelling units are destroyed or removed from the housing market as part of a redevelopment project which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided by the agency, the agency shall, within four years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to person and families of low- or moderate - income, an equal number of replacement dwelling units which have an equal or greater number of bedrooms, as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed on or after January 1, 2002, 100 percent of the replacement dwelling units shall be available at affordable housing cost to person in the same or lower income category (low, very low or moderate), as the persons displaced from those destroyed or removed units. Section 33413(f) of the Health and Safety Code modifies these requirements as follows: Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: B. Project Description 1. The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units have one or no bedroom is deemed for this purpose to have one bedroom. 2. The replacement units are affordable to the same income level of households as the destroyed or removed units. IV. EXISTING PROPERTY DESCRIPTION 17705.0003212971839.2 A. Project Background According to records, the two existing buildings on 16 Campus Drive were completed in 1946 -1947. Improvements made over time created the private space for the seven existing units. The project site is improved with the two buildings that include a total of seven apartments. Three (3) of the apartments are one bedroom units, and four (4) are studio units. Studio apartments are considered the same as one bedroom units for purposes of determining total bedroom count. Therefore, there is a total of seven (7) bedrooms in the project. The buildings are single story, wood framed construction with a stucco finish. The buildings have flat roofs that need replacing. Both structures show signs of deferred maintenance. Some of the units have very small kitchens that are located in closet -type settings. The units range in size from about 500 to 650 square feet. V. PROPOSED PROJECT The proposed project is the Campus Commons senior housing development, containing 43 apartment units total, 42 of which will be reserved for low and very low income senior citizens. The project will include 34 one bedroom /one bath units and 9 two bedroom /one bath units, for a total of 52 bedrooms. One of the one bedroom /one bath units will be reserved as the manager's unit and not considered replacement housing. Each unit will include a washer /dryer. The project will be three stories in height over one level of surface parking. It will be designed to be energy efficient by utilizing the current technology to capture and store energy. There will be a community room and passive and active recreation space for the residents. VI. PROJECT LOCATION The proposed project is located at 16 Campus Drive, Arcadia. A map of the project location is provided in Exhibit A. The proposed project site is outside of Housing Replacement Plan Page 4 but of benefit to the Central Redevelopment Project Area which was established on December 26, 1973 with the adoption of Ordinance 1940. 17705.0003212971839.2 Construction of the Campus Commons project is expected to begin in early 2011. It is anticipated to take 14 -16 months to complete the project. VII. REPLACEMENT HOUSING UNITS Exhibit "B" describes the income categories and number of housing units, with the corresponding number of bedrooms, that will be demolished and the replacement housing units, with corresponding number of bedrooms, which will be constructed to meet the Agency's replacement housing requirements pursuant to the Act and Guidelines as known at this time. VIII. FUNDING SOURCES The Redevelopment Plan authorizes the Agency to finance its activities with assistance from various sources, including the City of Arcadia, State of California, United States Government, property tax increment funds, interest income, Agency bonds, or other available sources. The replacement housing is anticipated to be funded with tax credits, bond financing, deferred developer fee and a loan from the Agency's Low and Moderate Income Housing Fund. IX. TIMELINE FOR REPLACEMENT HOUSING To the extent that the appropriate number of comparable replacement units is available on the private market to the households being displaced at the time the units may be removed from the market or destroyed, the replacement units will be available for occupancy before a date that is four years after commencement of demolition. The Owner Participation Agreement for the Campus Commons Project anticipates the completion of the new development by April 2012, within the 4 year statutory time frame. X. AFFORDABILITY ASSURANCE The Agency's agreement with the Arcadia Commons, LLP for the replacement units will require the recordation of a covenant against the site requiring at least 55 years of income affordability reflective of the tenant mix located at 16 Campus Drive. Housing Replacement Plan Page 5 XI. ARTICLE XXXIV COMPLIANCE 17705.0003212971839.2 Moreover, the Agency, in accordance with Health and Safety Code Section 33418, monitors on an ongoing basis, any housing affordable to persons and families of low- or moderate - income developed or otherwise made available pursuant to agreements with the Agency. Replacement Housing Project Exempt for Article XXXIV In accordance with Health and Safety Code Section 37001(f) a development which consists of the rehabilitation, reconstruction, improvement or addition to, or replacement of, dwelling units of a previously existing low -rent housing project, or a project previously or currently occupied by lower income household, as defined in section 50079.5 is exempt form Article XXXIV of the California Constitution. Under this Replacement Housing Plan, based on the above facts it is hereby found and determined that the replacement housing project is exempt from the requirements of Article XXXIV. XII. PROVISION FOR PUBLIC REVIEW AND COMMENT In accordance with Section 33413.5 of the Health and Safety Code, a copy of this Draft Replacement Housing Plan will be available for review and comment by other public agencies and the general public at the Redevelopment Agency of the City of Arcadia, 240 West Huntington Drive, Arcadia, CA 91006. This Plan has been available for public review since September 27. Housing Replacement Plan Page 6 Fallen Leaf R6 17705.00032129 71839.2 Arbol% ol EXHIBIT A • E Moran Blvd W Foothill Blvd W Foothill BI* E Foothill Blvd Laurel Ave * Ave afro Linwood Ave it z W Palm Ave N Z N Manoviad > W Colorado Blvd 4 V Olive Ave W Walnut Ave Q. nca,� Dr E Santa Clara S! W Chest Aw W Foothill SW - - W Foothill Blvd - - W Foothill Blvd . Oxford 4 Muroe tto Dr A "n stn W Lemon Awee W Colorado Blvd to W Olive Ave E Psno � 4 4 e K Std w "� Maple Ave y 4 - Hiilarici Route 6� ® .......Historic Route 66 e Hupp Reid Or � Same Anna Park Areadb Aka as ?aiey Di c P Bonita St L4y� W �w>e 4 v BAroadla * California St Diamond St sf 16 Campus W Y X112 ---• 0, - y San MG Q A Drive I '°Qo Dr j r � a do at ® • Santa Anna Gott Course " Gee" St W Huntington o Fairview Campus Dr Alice St y Ave Perk E Duarte a. Fakviev Ave Holly Ave m ` y 9 6 , 4 Part a g a D q Arcadia Ave Alga ON Duarte Rd N 3 D yr A W Leroy Ave a D in y a W fuS Ave W Naomi Ave I 4 g _ S W amino l Ave g E Camino Real Ave g W Norman Av ¢r Sharon Rd Sharon Rd E -emon Avg W Eamon Ave W Lemon Ave St Wistaria Ave W Lae Flores Ave W Longden Ave , Walnut Ave Rosemarie Dr W Palm Dr ton Ave Temple Clty Housing Replacement Plan m E Duarte Rd Las Oak Q c.o. .. co E Altem St 4 g < < Shrode 44 : Andre St St P � 'Madan,' .ve Oak P Exhibit A Site Address Number of Existing Residential Units Total Number of Bedrooms Number of Bedrooms Occupied by Very Low- Income Households ** (1- bed /2 -bed) Number of Bedrooms Occupied by Lower - Income Households ** (1- bed /2 -bed) 16 Campus Drive 7 7 10/6 7 Total 7 7 16 7 Total Bedrooms to be Replaced 16 7 Site Address Number of Replacement Units * ** Total Number of Bedrooms * ** Number of Bedrooms Occupied by Very Low- Income Households * ** (1- bed /2 -bed) Number of Bedrooms Occupied by Lower - Income Households *** (1 -bed /2 -bed) 16 Campus Drive 42 51 10/6 23/12 Total 42 51 16 35 Total Replacement Bedrooms 16 35 17705.0003212971839.2 EXHIBIT B ** The numbers depicted in these income categories are estimates only for the purposes of this plan. NUMBER OF REPLACEMENT HOUSING UNITS TO BE CONSTRUCTION *** The numbers depicted in this chart exc udes the single one bedroom /one bath unit reserved as the manager's unit and not considered replacement housing. Housing Replacement Plan Exhibit B