HomeMy WebLinkAboutItem 1a: Resolution ARA 239 Approving Replacement Housing Plan for 16 Campus Drive - Campus Commons Senior Housing ProjectPT' PIM
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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
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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