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Item 1a. ARA Resolution 230 - Five Year Implementation Plan (2010-2015) for Central Redevelopment Project Area
STAFF REPORT Arcadia Redevelopment Agency DATE: December 1, 2009 TO: Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Development Services Director 7 1< By: Jerry Schwartz, Economic Development Manager Jc SUBJECT: ARA RESOLUTION NO. 230, A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA APPROVING THE ADOPTION OF THE FIVE YEAR IMPLEMENTATION PLAN (2010 -2015) FOR THE CENTRAL REDEVELOPMENT PROJECT AREA Recommendation: Adopt SUMMARY The Community Redevelopment Law (the "CRL "), Health and Safety Code Section 33490, which became effective in 1994, requires redevelopment agencies to adopt an Implementation Plan for all project areas every five years. The Arcadia Redevelopment Agency has previously approved Five Year Implementation Plans in 1994, 1999, and 2004. A new Implementation Plan has been prepared for the period of 2010 -2015, and it is required to be adopted by December 31, 2009. The Plan sets forth the Agency's programs, projects, and activities that will meet its goals and objectives for both non - housing, affordable housing, and public improvements toward eliminating blight in the Central Redevelopment Project Area. A noticed public hearing is required before the Agency can consider approving the resolution that adopts this Implementation Plan. DISCUSSION The Five Year Implementation Plan provides the history of the Central Redevelopment Project Area and accomplishments since the inception of the project area and since the adoption of the last Implementation Plan. It reviews the goals for the project area and the blight findings that are the basis of the redevelopment activities. It provides an update on the Agency's finances and its ability to finance the projects and programs that are proposed in the Plan. It also discusses factors that have and will continue to impact the Agency's ability to implement projects and programs, including, the current national, state, and regional economic trends and the impact of the corresponding tight credit market, the State's continuing efforts to take redevelopment funds to backfill for education spending, and the Toss of the Agency's eminent domain authority through a local ballot measure. The general redevelopment programs and projects in the Plan include: continuing with efforts to purchase additional property for the expansion of Rusnak /Arcadia; pursuing larger parcels in the project area such as the Santa Anita Inn site; development around the Gold Line extension into Arcadia; promoting the facade rehabilitation program; and pursuing other opportunities to market the downtown business community. The Agency will continue to invest in public improvements in the project area, including streets and traffic signals, and enhancements around the Gold Line Station and parking garage. The major affordable housing programs and projects proposed in the Plan include: the development of 15 Lucille Street with four (4) low income units; the potential to be a financial participant in a larger affordable housing project (probably low income seniors); starting a housing rehabilitation program to allow low income homeowners to do greater repairs than the CDBG program can fund; purchasing additional residential properties to redevelop, for first time homebuyers (similar to Alta Street Classics) or renters; and, if the ownership and legal issues are resolved, providing affordable housing for backstretch workers at Santa Anita Park. Below is a brief description of the five main sections of Implementation Plan 2010 -2015: Section 1 introduces the Implementation Plan, discusses some issues that have and will impact the accomplishments of the Agency in meeting its implementation plans, provides background about the Agency and the Central Redevelopment Project Area, describes the blight in the project area, and discusses the financial status, goals and objectives for the project area. Section 2 details the programs, projects, and activities that will be pursued as part of the general redevelopment work plan over the next five years, including investing in public improvements. The work plan is broken down into ongoing activities, short term projects to pursue in the next 1 -3 years, medium term projects that may be undertaken in the next 3 -6 years, longer term projects that will take longer than six years, and opportunity projects and programs that may become priorities depending on the Agency Board and other considerations. Section 3 provides the introduction and background on affordable housing, including compliance rules for affordable housing, prior projects completed by the Agency, RHNA numbers and related affordable housing targets for the Agency, financial projections for available housing funds, and potential issues that could impact the use of affordable housing funds. Staff Report December 1, 2009 Page 2 Section 4 lists the affordable housing programs and projects for the next seven years, including some potential non - financial strategies that could aid with affordable housing production, the housing production plan for the five year period from 2010 -2015 including potential costs, and housing activities for the remaining life of the project area. Section 5 is the conclusion. Adoption of Implementation Plan 2010 -2015 does not constitute approval of any specific project of the Agency. Individual projects and programs will still be presented to the Agency for formal consideration. A review of this Plan and related Agency activities will be presented in the middle of the five year planning period, by December 31, 2012. Consideration of this Implementation Plan is pursuant to a public hearing with certain specific public noticing requirements that involve both publishing in the local newspaper and posting in the project area. The Agency has met these requirements and has a proof of publication and an affidavit of posting. ENVIRONMENTAL IMPACT Community Redevelopment Law Section 33490 (a)(1)(B) provides that adoption of the Implementation Plan does not constitute the approval of a project under CEQA, and is therefore, not subject to CEQA review. Individual projects and programs included in the Plan are still subject to CEQA prior to approval /appropriation. FISCAL IMPACT The five year housing component could cost as much as $17 million, which would come from the low and moderate income housing fund (20% set aside). The general redevelopment component of the Plan is estimated to cost over $40 million. The adoption of the Implementation Plan does not obligate the Agency to expend any monies for the projects, programs, and activities that are included. Staff will present agreements and funding requests for Agency consideration as projects are pursued. Staff Report December 1, 2009 Page 3 RECOMMENDATION It is recommended that: 1. The Agency hold a public hearing; and, 2. That the Agency adopt the attached ARA Resolution No. 230, a Resolution of the Redevelopment Agency of the City of Arcadia approving the adoption of the Five Year Implementation Plan (2010 -2015) for the Central Redevelopment Project Area Approved: r 1 Donald Penman, Executive Director Staff Report December 1, 2009 Page 4 RESOLUTION NO. ARA -230 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA APPROVING THE ADOPTION OF THE FIVE - YEAR IMPLEMENTATION PLAN (2010 -2015) FOR THE CENTRAL REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to Health and Safety Code Section 33490, the Arcadia Redevelopment Agency ( "Agency ") is required to adopt a five -year implementation plan for its redevelopment project area on or before December 31, 2009; and WHEREAS, the Agency adopted its initial plan by ARA Resolution No. 175 on December 20, 1994; and WHEREAS, the Agency pursuant to the Community Redevelopment Law adopted updated Implementation Plans by Resolution No. 183 on December 21, 1999 and Resolution No. 211 on December 7, 2004; and WHEREAS, pursuant to Health and Safety Code Section 33490, the Agency is required to prepare a new Implementation Plan by December 31, 2009; and WHEREAS, the Agency has prepared a new Five -Year Implementation Plan (2010 -2015) which is attached hereto as Exhibit "A" (the "2010 Plan "); and WHEREAS, the 2010 Plan has been on file and available for public review in the Economic Development Division Offices at the Arcadia City Hall, 240 West Huntington Drive, Arcadia, California; and WHEREAS, the Agency has published notice of the public hearing in the Arcadia Weekly for 4 consecutive weeks and has posted notice of the public hearing in four (4) places in the redevelopment project area and a public hearing has been held on the 1 adoption of the Implementation Plan in accordance with Health and Safety Code Section 33490(d); and WHEREAS, the Adoption of the 2010 Plan is not subject to environmental review under the California Environmental Quality Act. NOW, THEREFORE, THE ARCADIA REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Arcadia Redevelopment Agency hereby approves and adopts the attached Five -Year Implementation Plan (2010- 2015). SECTION 2. The Secretary of the Agency is hereby authorized and directed to certify the adoption of this Resolution. SECTION 3. This Resolution shall take effect upon adoption. Passed, approved and adopted this day of , 2009. ATTEST: Secretary of the Arcadia Redevelopment Agency APPROVED AS TO FORM: P. iro Stephen P. Deitsch Agency Attorney 2 Chairman Arcadia Redevelopment Agency ARCADIA REDEVELOPMENT AGENCY FIVE YEAR IMPLEMENTATION PLAN FY 2010 -2015 for the CENTRAL REDEVELOPMENT PROJECT AREA City of Arcadia 240 West Huntington Drive Arcadia, CA 91066 (626) 574 -5409 December 1, 2009 FIVE YEAR IMPLEMENTATION PLAN 2010 -2015 TABLE OF CONTENTS PAGE SECTION 1: BACKGROUND 3 A. Redevelopment Agency and Plan 4 B. Description of the Central Redevelopment Project Area 6 C. Redevelopment Plan Limits 8 D. Blight in the Project Area 8 E. Agency Financial Status 10 F. Available Funds 12 G. Redevelopment Accomplishments since Adoption of the Project Area 12 H. Accomplishments since Implementation Plan 2005 -2010 14 I. Agency Goals and Objectives 15 SECTION 2: FUTURE AGENCY PROJECTS, PROGRAMS, AND ACTIVITIES; FIVE YEAR PLANNING PERIOD (2010 -2015) 16 A. Opportunity Projects, Programs, and Activities 19 SECTION 3: LOW AND MODERATE INCOME HOUSING 20 A. Compliance Rules for Affordable Housing 21 B. Previous Agency Projects to Assist Low and Moderate Income Households 21 C. Projected Low and Moderate Income Housing Revenues - 2009 -2017 (20% Set Aside) 23 D. Using Affordable Housing Funds 24 SECTION 4: AFFORDABLE HOUSING PROJECTS/PROGRAMS- 2010 -2017. 27 A. Potential Non - Financial Strategies for Affordable Housing 28 B. Proposed Low and Moderate Income Housing Expenditures 2010 -2015; Housing Production Plan 29 C. Housing Production - Life of the Plan, 2015 -2017 30 SECTION 5: CONCLUSION. 31 LIST OF TABLES AND FIGURES Table 1- Central Redevelopment Project Area Redevelopment Plan Chronology. 5 Figure 1- Downtown Central Redevelopment Project Area 7 Table 2- Redevelopment Plan 8 Table 3- Summary of Blight Findings in Central Redevelopment Project Area 9 1 Table 4- Notes and Bonds Issued by the Redevelopment Agency. 10 Table 5- Redevelopment Agency Debt 10 Table 6- Agency Owned Properties 11 Table 7- Actual and Estimated General Redevelopment Fund Revenues and Expenditures 2009 -10 to 2014 -15 13 Table 8- Redevelopment Agency Goals and Objectives 15 Table 9- Ongoing Programs, Projects, and Activities 17 Table 10- Short Term Projects, Programs & Activities- 1 -3 Years 17 Table 11- Intermediate Term Projects, Programs & Activities - 3 -6 Years 18 Table 12- Long Term Projects, Programs & Activites - Six (6) or More Years 19 Table 13- Opportunity Projects, Programs, and Activities 19 Table 14- Agency Replacement Housing Status 22 Table 15- Regional Housing Needs Assessement (RHNA) 2008 -2014 23 Table 16- Redevelopment Housing Incomes Targets 2008 -2014 23 Table 17- Low and Moderate Income Housing Fund Revenues 2010 -2017 24 Table 18- Housing Productions Plan; Options and Potential Expenditures 2010 -2015 29 APPENDICES Appendix A- List of Affordable Housing Funding Sources Appendix B- Summary of SB 1818 Appendix C- Income and Housing Cost Formulas for Los Angeles County Appendix D- Income and Housing Cost Data for State and County Housing Programs Appendix E- Demographic Data for the City Of Arcadia Appendix F- List of Arcadia Redevelopment Agency Assisted Projects 2 FIVE YEAR IMPLEMENTATION PLAN 2010 -2015 SECTION 1: BACKGROUND The California Redevelopment Law ( "CRL "; Health and Safety Code Sections 33000 et seq., specifically, Section 33490) requires that all redevelopment agencies adopt an "implementation plan" describing: 1) specific goals and objectives of the redevelopment agency; 2) the specific projects, programs and activities the redevelopment agency intends to implement over the next five (5) years; 3) an estimate of the proposed expenditures to meet these goals and objectives; and 4) an explanation of how the Agency's goals and objectives, projects, programs, and activities will eliminate blight in the project area and meet the Agency's affordable housing requirements. The requirement to prepare an implementation plan was part of Assembly Bill 1290 which was approved in 1993. The Agency prepared prior Implementation Plans in 1994, 1999, and 2004. The Implementation Plan is not a substitute for the formal review that the Agency Board will do prior to the approval of a specific redevelopment project. The Implementation Plan can be amended at any time after a noticed public hearing. The CRL requires that the Plan must be reviewed pursuant to a public hearing between its second and third year. Implementation Plan 2010 -2015 will be presented for this review between January 1 and December 1, 2012. California State Budget and the Economy — Impacts on Goals for Past Five Years and Planning for the Next Five Years In planning projects and programs over the next five years for the Arcadia Redevelopment. Agency, the uncertainty over funding is a critical issue. The State of California is taking $2.05 billion from redevelopment agencies during the 2009 -2010 and 2010 -2011 fiscal years. The impact on the Arcadia Redevelopment Agency will be staggering: a loss of $1,549,203 in fiscal year 2009 -2010, and an additional loss of $318,643 in fiscal year 2010 -2011. That is a total loss of $1,867,846 over two years. It represents critical funds that will not be available for investment back into the community. Importantly, the uncertainty over the California State budget for 2010 and beyond makes it likely that the State lawmakers will make additional attempts to take funds from redevelopment agencies to backfill for education. This makes future planning less certain than for any of the three previous Five Year Implementation Plans. The recession has impacted development throughout southern California, including slowing new development and redevelopment in Arcadia. Business contraction has 3 increased vacancy rates at all levels of commercial, industrial, manufacturing, and office properties, from small properties to larger, multi- tenant developments. Existing businesses have slowed, and new investment has stalled completely. This has been the result of a combination of banks' tight lending policies and the hesitance of businesses to invest in these uncertain times. With unemployment exceeding 12% in California, and reported to be in excess of 15% after including both those who stopped looking for work and those who are underemployed and earning significantly less than pre- recession wages, consumer spending, and thus business investment, may not fully recover for a few years. This creates additional challenges for the implementation of a five year redevelopment plan as willing partners for private /public development activities will be difficult to locate. This Five Year Implementation Plan 2010 -2015 reflects the programs and projects that will help the Agency reach its goals and objectives for the Central Redevelopment Project Area. It includes commercial activities, public improvements, and affordable housing projects and programs. It reflects the Agency's desire to continue its successful redevelopment program. However, the impact of the State budget and the economy will likely make it more difficult than ever to achieve at the level that has been the norm in this community for the past 20+ years. Organization of the Agency The five member City Council also serves as the Redevelopment Agency Board. The Mayor is the Agency Board Chairperson; the Mayor Pro Tem is the Agency Vice Chairperson; the City Clerk serves as the Agency Secretary; the City Manager is the Agency Executive Director; and the Development. Services Director is the Deputy Executive Director. The Economic Development Division of the Development Services Department is responsible for the implementation of the Agency's programs, projects, and activities. The Administrative Services Department is responsible for the accounting and financial controls, including the investment of Agency funds. The Agency is audited annually by an outside independent auditor. A. Redevelopment Agency and Plan The Arcadia Redevelopment Agency was established on December 17, 1968 by City Council Ordinance No. 1396. The Central Redevelopment Plan was adopted by City Council Ordinance No. 1490 on December 26, 1973. The Base Year for the Redevelopment Plan is 1974. The Central Redevelopment Plan has been amended nine times. Table 1 details the nine Plan amendments and the three Five Year Implementation Plans that were adopted prior to the preparation of this document. As highlighted in Table 1, the Redevelopment Plan has been amended twice since the adoption of Five Year Implementation Plan 2005 -2010 in December 2004. In 2007 was the elimination of the use of eminent domain pursuant to a vote of the residents, and in 2008, was the approval of time extensions for the Redevelopment Plan as part of an ERAF shift of tax increment required by the State. 4 O b .0 ¢ O • 0 N F-' C cl • o f o U a) / •0 • c - O 5 5 5 a) 0 <0< 0 U 5 0 b O a, b .5 0 7. 5 'b • 0 N � 0 00 � N r.� U� 0 Q a3 >, op oo O -0 N a 0 Q U 0 ro 3 : O °) 5 . b 0a' ¢ 0 E~ ▪ � . 0 z * N 0 z 04 0 FH d O a. rn co 0 d N 0 0 0 0 • 0 N � � N OO 0 O G a) O a) U U , N O b 5 u. OW 5 C 0 0 o `ohm a) ▪ • a) O N O I • N O w N o i. • 0 O � 0 a • -• ro c cci . on O 5 • O a) N 1 I is .d0 O N a) 01) `.) 0 0 0 U 0) i C 5 0 N Q O O 0 N� r- M + N 00 o Z o a) 0 O a 0 O. 5 ." O d 0. Q O W 00 0 z 0) ' 0 0) C d O N 0 .fl . 0 O a 0 0) 0) 0) 0 0 • O z 0) Nt a rn �-' N 0 a) O N 2 N 0 0 0 N O N '- N N b 4) (9 .0 0 0 b c O cd d d QOW " 00 N • r.a 4' 0\0 v N N z b U C Q O 7:$ N ¢OW o\ 0 z e 0) 0 5 G) 0 .b 0 N N NN N B. Description of the Central Redevelopment Project Area The redevelopment project area extends along Huntington Drive, between Colorado Place and Fifth Avenue, along Santa Anita Avenue, between Newman Avenue and California Street, along First Avenue between Colorado Boulevard and California Street, along Fifth Avenue, from the freeway to California Street, the commercial streets west of Santa Anita Avenue, including Morlan Place and Rolyn Place, and all of the perpendicular cross streets between Santa Anita Avenue and Fifth Avenue. A map of the project area is included as Figure 1. 6 C. Redevelopment Plan Limits The Central Redevelopment Plan has certain "limits" which affect this Implementation Plan. Those limits are shown in Table 2 and explained below the table. Table 2 nt Plan Limits The details regarding the Redevelopment Plan Limits shown in Table 2 includes: 1. Date to Incur Debt — The City Council eliminated the deadline to incur debt in November 2003 with the adoption of Ordinance No. 2181, which was allowed under SB 211. The old debt limit was January 2014. One consequence of eliminating the debt limit is that after 2002 -2003, the Agency has to share 25% of its tax increment received in future years with LA County and other taxing entities. The number will grow by another 21% after 2012 -2013. 2. Termination of Redevelopment Plan — This date has been extended by three years because of prior ERAF payments to the State. 3. Final Date to Pay Off Debt — This date has similarly been extended by three years as part of the ERAF payments. 4. Maximum Tax Increment, Life of Plan — Through August, 2009, the Agency has received $46,800,000 in tax increment. 5. Expiration — Eminent Domain Authority — The Agency does not have the power of eminent domain for a private purpose in the project area after the passage of a ballot measure in 2007 that gave up this power. D. Blight in the Project Area Redevelopment Agencies are created, and project areas established, to eliminate blight and blighting influences which will help create an environment that is positive for private investment. California Redevelopment Law states that "the existence of blight constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety, and welfare of the people of the community in which it exists and of the people of the State." It further indicates that blight "presents handicaps which are beyond remedy and control solely by regulatory processes in the exercise of police power." Blight can lead to "further obsolescence and disuse in a community." 8 Section of the Redevelopment Plan Key Date or Related Limit 1. Date to Incur Debt None 2. Termination of Redevelopment Plan January 25, 2017 3. Final Date to Pay Off Debt January 25, 2027 4. Maximum Tax Increment, Life of Plan $200,000,000 5. Expiration - Eminent Domain Authority No Eminent Domain for Private Purpose C. Redevelopment Plan Limits The Central Redevelopment Plan has certain "limits" which affect this Implementation Plan. Those limits are shown in Table 2 and explained below the table. Table 2 nt Plan Limits The details regarding the Redevelopment Plan Limits shown in Table 2 includes: 1. Date to Incur Debt — The City Council eliminated the deadline to incur debt in November 2003 with the adoption of Ordinance No. 2181, which was allowed under SB 211. The old debt limit was January 2014. One consequence of eliminating the debt limit is that after 2002 -2003, the Agency has to share 25% of its tax increment received in future years with LA County and other taxing entities. The number will grow by another 21% after 2012 -2013. 2. Termination of Redevelopment Plan — This date has been extended by three years because of prior ERAF payments to the State. 3. Final Date to Pay Off Debt — This date has similarly been extended by three years as part of the ERAF payments. 4. Maximum Tax Increment, Life of Plan — Through August, 2009, the Agency has received $46,800,000 in tax increment. 5. Expiration — Eminent Domain Authority — The Agency does not have the power of eminent domain for a private purpose in the project area after the passage of a ballot measure in 2007 that gave up this power. D. Blight in the Project Area Redevelopment Agencies are created, and project areas established, to eliminate blight and blighting influences which will help create an environment that is positive for private investment. California Redevelopment Law states that "the existence of blight constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety, and welfare of the people of the community in which it exists and of the people of the State." It further indicates that blight "presents handicaps which are beyond remedy and control solely by regulatory processes in the exercise of police power." Blight can lead to "further obsolescence and disuse in a community." 8 - . .. ... .. ... . J ..- - -- - -- - a- PHYSICAL BLIGHT - from 1973 Redevelopment Plan adoption: A. Substandard, obsolete, and /or outmoded commercial, industrial, and residential structures. B. Incompatible mixture of industrial, commercial, residential, railway, and public lands. C. A subdivision pattern that was designed for a lifestyle and living pattern not consistent with today's needs and development patterns. D. Small, fragmented ownership patterns that make land assembly difficult and retards implementation of the General Plan. E. Division of the Project Area by a mainline railroad. F. The right -of -way angle of both the freeway and railroad line cause irregular lot patterns and have an adverse impact on adjacent properties. G. A number of intersecting arterial streets producing greater traffic impact on this area as compared to other parts of the City. ECONOMIC BLIGHT identified in 1994: 1. Depreciated and stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of Agency authority to remedy. 2. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings and excessive vacant lots within an area developed for urban use and served by utilities. 3. Physical factors that prevent or substantially hinder the economically viable use or capacity or buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. 4. When physical and economic conditions are present, the existence of inadequate public improvements, parking facilities, or utilities. The Agency initially described blight in the Central Redevelopment Project area when the Redevelopment Plan was adopted in 1973. In 1994, additional findings were made based on an analysis done in 1994 that utilized blighting conditions that were part of AB 1290. It is reasonable to conclude that conditions in the Project Area, with the exception of improvements caused by Agency-sponsored projects and programs, and other projects that may have been implemented without Agency assistance, remain substantially the same as when these blight findings were adopted. The blight findings are summarized in Table 3 below. Table 3 ntral Redevelopment Pro ject Area h tin * Note: a blighted area may be one that contains physical and economic • bligg con is also characterized by the existence of inadequate public improvements /facilities. 9 Year and Amount Pur 1 ose Status Amount Owed to Low/Mod Housing Fund Deficit between 1985 -1996 1986 - $3.4 million Construction of Public Works Services Yard Defeased in 1989 (three year note) 1989 - $3.78 million Refunding Defeased in 2001 (25 year bond) 2001 Series A - $11.665 million (tax exempt) * Refunding 1989 bond, repay City loans, assist tax exempt projects (e.g., Police Station, Fire Station 105, Gilb Historical Museum), other public improvements In Place; interest payments made semi - annually and principal payments made annually (per repayment schedule) 2001 Series B - $9.24 million (taxable) * Morlan Place and other private projects In Place; interest payments made semi- annually and principal payments made annually (per repayment schedule) T 1 e of Debt - Ori' in -- o - - - - . - -- Term Amount Owed to Low/Mod Housing Fund Deficit between 1985 -1996 Repayment by 2014 $4,045,715 2001 Tax Allocation Bonds Refunding; any lawful redevelopment purpose Principal and Interest due by end of 2023 $24,082,521 $28,128,236 Total Agency Debt E. Agency Financial Status The Agency's financial status is an important part of the planning process, as it is necessary to have sufficient resources to fund the priorities that are set as part of this Implementation Plan. Table 4 lists the notes and bonds that have been issued by the Agency and their status. Table 5 shows the current Agency debt. One factor in the Agency's current financial status is its non -cash assets, specifically property that has been purchased and remains under Agency ownership. These sites have been purchased since the adoption of Implementation Plan 2005 -2010. These properties are shown in Table 6, with a summary below the table. Table 4 Notes and Bonds Issu — 200 S eries • & ...I on • s were issued together Table 5 Redevelo 10 _Property Address ` Type of Property Purchased Current Status 35 West Huntington Drive Self Storage Building w/ two commercial units 2006 Self storage business still operating; Basement and first floor leased to Rusnak for parts storage; Agency leasing two commercial spaces 21 Morlan Place Commercial; former site of Church in Arcadia 2008 Parking lot leased to Rusnak for vehicle storage; building demolished; pad to be paved in early 2010 15 Lucille Street Two unit residential property 2009 Units are vacant; arranging demolition and redevelopment of affordable housing units 400 Rolyn Place Manufacturing Escrow Agreed with seller on price and terms; currently in due diligence period; escrow closing scheduled for mid - December 2009 Table 6 Agency Owned Properties • 35 West Huntington Drive and 21 Morlan Place were purchased pursuant to a Land Assembly and Development Agreement between the Agency and Rusnak/Arcadia which was approved on December 7, 2004 and amended on November 1, 2005. Both properties were purchased with general redevelopment funds. The 21 Morlan Place transaction also included the transfer of 630 East Live Oak to the Church in Arcadia for its new offices, worship and meeting facilities. • 15 Lucille Street was purchased through a foreclosure sale using the Agency's low and moderate income housing funds. • 400 Rolyn Place includes a 15,000 sq. ft. building, and can potentially be used for a specific tenant or as a relocation site for one of the businesses that will be impacted by extension of the Gold Line through Arcadia. While the purchase is being made, at least in part, with Agency funds, it will become an eligible transportation fund cost if it is used in conjunction with the Gold Line extension. 11 F. Available Funds As of June 30, 2009, the Agency had available funds of $4,428,625 in the general redevelopment account and $5,129.283 in the low and moderate income housing fund. As discussed in an earlier section, the possibility of having the State take $1,866,339 over two years from the Agency could adversely impact the ability to achieve the goals and objectives that are included in this Implementation Plan and eliminate remaining blighting influences in the project area. Cash flow projections for general redevelopment operations over the next five years are shown in Table 7 on the next page. Cash flow projections for the low /mod housing fund are provided in Table 17 in Section 3 (c) of this document. G. Redevelopment Accomplishments since Adoption of the Project Area The Redevelopment Agency has had many successes since the inception of the Central Redevelopment Project Area. Since 1974, the Agency has assisted in the development of six (6) major hotels, nineteen (19) office buildings, four (4) restaurants, two (2) retail buildings, and 60 units of affordable housing. The facades of more than thirty (30) buildings have been improved along these major streets with the assistance of the Agency. Property tax increment has grown from $300,000 in FY 1975 to $4,331,000 in FY 2008- 2009. The six Agency- assisted hotels produced about $2,134,000 in Transiency Occupancy Taxes to the City of Arcadia's General Fund in FY 2008 -2009. Since the first hotel opened in 1983, the City has received almost $23 million from the six Agency- assisted hotels. The Agency has completed many public improvements in the project area, which has made it more desirable for development and benefited the businesses through improved circulation and more attractive public streets. Almost the entire eastern end of the Project Area, from the Foothill Freeway to the railroad tracks, and east of the tracks to Fifth Avenue, has been redeveloped with Agency assistance. Huntington Drive, from Fifth Avenue to Santa Clara Street, and First Avenue, from Wheeler Avenue to California Street, have been reconstructed and revitalized with new landscaping, signage, street furniture, lighting, water system, and roadway improvements. The Agency has installed new sidewalks on Colorado Place and safety lights under the Huntington Bridge at Second Avenue. Seven (7) private hazardous waste sites were cleaned up with Agency financial assistance. The Agency has also invested in public facilities that have enhanced the City. The Agency built and donated to the City the $3 million Public Works Service Center at 11800 Goldring Road. It contributed $4 million to the new Police Facility, $100,000 to the Gilb Historical Museum, and $800,000 to the new Fire Station headquarters (Station 105) that opened in 2008. The City has also resurfaced four (4) City parking lots. 12 WO I \ 5 ' 0 ) / \ § ( ch t . 7 , § 0 4 ' k / d 2 = ') a \ o 0 /§ 2 -0 fl o 2 7 / \ § « f 2 q 2 § / az } \ © 0 § k k « 2 u u §/ %/ k / § ( • ° , -2 5 3 q ) f. CU 2 j c \ \ % o la \ d § 7 ƒ a O ) ƒ d / ° cl o k.3 4 /§� ¥� 0 &a2§ ƒ \ % o g= u o a 0 2 a • e@le o u ? . •x 2 j o ;«� % A /7§ d u \ / /¥ \ 2 E \ ƒ — k t§� 0-9 +4 §2 q— /§a t - § — ©� u a © e \ a ± 6 \ ' ƒ / — 2 .§ e u e , t ? < + + ] 0 / ? EA { \ ) ) o 00 • ' 9178`L98`1$ © o E ■ 1 19t8`t7LZ`OZ$ 1 tv admin costs 2014 -2015 $4,932,000 000`S8i7`£$ 1 00 1 000`SOS`£$ 000`00£`1$ 000`£8L$ 000'000'1$ 000`998`£$ 1 000`99£`Z$ . 2013 -2014 000`617£`5$ $3,445,000 1 0 00` O Z$ 1 000`S9t`£$ 0o 0`o o Z`T $ £I0Z 6LL` I T L`b$ 000`16£`£$ 000`0£$ 1 000`TZt`£$ 0 00`0 0 1 ` $ $3,285,000 C UL...5 .�.. . 1993 Series A Bonds — Debt Service^ Payment to Housing Fund ++ WO I \ 5 ' 0 ) / \ § ( ch t . 7 , § 0 4 ' k / d 2 = ') a \ o 0 /§ 2 -0 fl o 2 7 / \ § « f 2 q 2 § / az } \ © 0 § k k « 2 u u §/ %/ k / § ( • ° , -2 5 3 q ) f. CU 2 j c \ \ % o la \ d § 7 ƒ a O ) ƒ d / ° cl o k.3 4 /§� ¥� 0 &a2§ ƒ \ % o g= u o a 0 2 a • e@le o u ? . •x 2 j o ;«� % A /7§ d u \ / /¥ \ 2 E \ ƒ — k t§� 0-9 +4 §2 q— /§a t - § — ©� u a © e \ a ± 6 \ ' ƒ / — 2 .§ e u e , t ? < + + ] 0 / Two affordable housing projects have been completed through partnerships with the Agency. One project, Heritage Park, is a 54 -unit, 100% senior housing development that opened in September 2004, was accomplished with a $1.8 million investment from the low and moderate income housing fund. The other project, the Alta Street Classics, is an 6 -unit, moderate income, townhome development, that opened in early 2008, provided home ownership opportunities to first time buyers, including allowing some City employees to move into town. Overall, more than 1,400 full time, and 2,000 part time jobs have been created because of Agency- assisted projects. The image and reputation of both the City of Arcadia and the Central Redevelopment Project Area have been significantly improved through these investments. The complete list of Agency accomplishments is included as Exhibit 1 at the back of this Plan. H. Accomplishments since Implementation Plan 2005 -2010 Since the approval of Implementation Plan 2005 -2010, the Agency has worked diligently to achieve the goals and objectives outlined in the Plan. As referenced in Table 6 above, the Agency and Rusnak/Arcadia reached a Land Assembly and Development Agreement (LADA) in December 2004, and it was amended in November 2005. The agreement involved the Agency acquiring certain parcels to allow Rusnak to expand its dealership in Arcadia. Two steps in the implementation of the agreement were the purchase of the Arcadia Self Storage building in 2006 and the Church in Arcadia site in 2008. The Agency's ability to purchase the other properties has been limited by a ballot measure, approved by the voters, to give up the Agency's right of eminent domain. Efforts to acquire the additional parcels, while unsuccessful, are ongoing. The Agency remodeled the Self Storage building, including painting the exterior and completely redoing the two commercial spaces and the facade along Huntington Drive. The two commercial spaces are on the market for lease. Staff relocated self storage tenants from the basement and first floor to other floors in the building, and the Agency leased the basement and first floor to Rusnak for parts storage. The Agency relocated the Church in Arcadia to temporary facilities while they build their new building at 630 East Live Oak Avenue, on land acquired from the Agency. The Agency is paying the cost of the temporary relocation. The parking lot of the former Church property is being leased by the Agency to Rusnak to store vehicles. The former Church building has been demolished, with grading and paving of the building pad slated for early in 2010. The Agency has also reached agreement on price and terms to acquire a vacant manufacturing property at 400 Rolyn Place. The transaction is anticipated to close in mid- December. As referenced earlier, the Agency completed the Alta Street Classics, at 119 -121 Alta Street, a six (6) unit, moderate income townhome project, that was made available to first time homebuyers. The Agency also acquired a vacant, two -unit residential property at 15 Lucille Street in 2009. This property will be used to increase the supply of affordable housing in the City. 14 IV Goals and Objectives Established in 1973: 1. Create an aesthetic, healthful and functional environment. 2. Arrest and eliminate further deterioration. 3. Promote the productive and efficient use of land and improve the tax base. 4. Provide adequate off - street parking for shoppers, employers and business persons within the Project Area. 5. Encourage, through Owner Participation agreements, the construction by others of development consistent with the Redevelopment Plan. 6. Provide necessary public facilities, beautification and offsite improvements consistent with the objectives of the Redevelopment Plan. 7. Assist property owners and developers in an effort to redevelop certain portions of the Project Area to provide land uses in harmony with each other, and with other portions of the City and the Redevelopment Plan. 8. Maintain existing buildings and improvements within the Project Area which are consistent with the Redevelopment Plan. 9. Promote affordable housing programs within the Project Area. Goals and Objectives Adopted in 1984: 10. Bring to the City and particularly the Downtown Redevelopment Project Area new, quality, intensive development that is attractive and contributes to the quality of life and economic growth of Arcadia. 11. Encourage the revitalization of the City's underutilized and economically stagnant Table 8 Redevelo A As discussed in Section G above, the Agency invested $800,000 toward administrative expenses in the development of the new Fire Station headquarters (Station 105) at 710 South Santa Anita Avenue. The station was opened in 2008. The Agency has continued to invest in street and signal enhancements in the project area to insure quality roads and circulation. Over $1 million in Agency funds were used on ten improvement projects, including signals at First Avenue and Santa Clara Street and First Avenue and Colorado Boulevard, signal modifications at First Avenue and Wheeler Avenue, video detection systems at Santa Anita Avenue and Santa Clara Street, protective /permissive left turn phase additions at First Avenue and Huntington Drive and Santa Anita Avenue and Santa Clara Street, and resurfacing and landscape median improvements in Santa Anita Avenue from the 210 Freeway to Huntington Drive. I. Agency Goals and Objectives The Redevelopment Agency established its original goals and objectives when it adopted the Central Redevelopment Plan in 1973. Those goals were the means to eliminating blight that was identified during the Plan adoption process. Supplemental goals and objectives were adopted in 1984. The entire set of goals and objectives are shown in Table 8. 15 areas, particularly the Downtown. 12. Cooperate with business, educational, civic, and service organizations to improve the quality of life and economic opportunity for all in Arcadia. 13. Increase sales and other direct and indirect tax receipts to the City. 14. Increase tax increment and other revenues to the Agency. 15. Provide increased employment opportunities for Arcadia residents. 16. Improve the image of Arcadia, and the Downtown, as a place to live, shop and work. SECTION 2: FUTURE AGENCY PROJECTS, PROGRAMS, AND ACTIVITIES; FIVE YEAR PLANNING PERIOD (2010 -2015) In 1985, the Agency compiled a list of twenty -six (26) projects and programs as required by AB 265. These were adopted by the Agency on December 3, 1985, and finally by ARA Resolution 97 on July 15, 1986. These have served as the basis of the Agency's long -term project and program planning efforts. The list has been updated as part of the multi -year Implementation Plan process and annually as projects were completed by the private or public sector. The Agency's master list of projects (Master List of Projects, Table 9) is derived from four sources: a) the 1986 list, b) the 1994 list (ARA 174) adopted July 5, 1994, c) the October 11, 1994 list (i.e., the Downtown 2000 Program), and d) additional programs and projects compiled by staff and incorporated into the annual Agency budget adopted by the Board. Many of the projects on 1985 -1986 lists and two 1994 lists have been completed (Agency Accomplishments, Appendix F). The list below is divided into five (5) implementation periods as shown in Table 9 through Table 13: 1) ongoing (annual); 2) short term (one to three years); 3) intermediate term (three to six years); 4) long term (six or more years); 5) opportunity projects (possible projects not included in any other list). Affordable Housing programs and activities are shown in the next section. The programs, projects, and activities listed below will serve to address remaining blight or improve underutilized sections of the project area while meeting the goals of the redevelopment plan. It should be noted that the Arcadia General Plan is currently undergoing a major update, slated for completion in 2010. The revision to the General Plan and subsequent updating of the Zoning Code will impact the implementation of certain projects. In pursing its projects and activities, the Redevelopment Agency is responsible for implementing the General Plan. The projected costs to carry out the projects listed below far exceed the anticipated financial resources of the Agency over the next five years (even without the State taking Agency funds for ERAF to backfill for education funding). The number of projects and programs that the Agency will be able to implement depends on a number of factors, including the economy, real estate market, lending climate, the number of projects with owner /developers, costs of relocation, and whether the Agency is able to issue bonds or pursue other third party financing. 16 Title of Project Project Site Estimated Amount Land Acquisition (Rusnak) Rod's Grill, Elk's Lodge and Dalgrens plus vacation of Morlan Place $4 million (including cost of relocation) — potential bond proceeds Agency Bond Issue — refunding of existing 2001 bonds and separate issue to generate new funds Project wide New proceeds could range from $8 — 10 million; possible in solid bond market Commercial Facade Rehabilitation Program Commercial /Industrial zones in the Project Area $50,000 for FY 2009 -2010; probable funding increase in 2010 -2011 ERAF payment to Los Angeles County Required by State Law (unless CRA lawsuit is successful) FY 2009 -2010 - $1,547,696 FY 2010 -2011 - $318,643 Downtown - Banner Program and Marketing /Outreach Huntington Drive /First Avenue $100,000 Acquisition of 400 Rolyn Place 400 Rolyn Place $2.1 million Grading and Paving 21 Morlan Place $150,000 Traffic Improvements in Project Area Various sites $200,000 Gold Line Station Public Including matching funds $4,650,000 Title of Project Estimated Amount or Cost Payment to 2001 bondholders $1.68 million annually (through 2023) Payment to the Low /Moderate Income Housing Fund (20% of gross T.I. annually) For FY 2009 -2010 - $888,000 Economic Development Operations (Redevelopment and Housing) For FY 2009 -2010 - $670,000 Payment to LA County Auditor - Controller (per SB 211, Council Ordinance 2181) 25% of tax increment growth since 2003 - 2004, plus an additional 21% after 2012- 2013. Estimate for 2009 -2010 - $254,000. Reimbursement to Church in Arcadia for Temporary Relocation (thru August 2010) $32,000 Table 9 Ongoing Programs, Projects, and Activities Table 10 Short Term Projects, Programs & Activities —1 -3 Years 17 Title of Pro'ect Pro'ect Site Estimated Amount Business Incentive /Commercial Facade Rehabilitation Commercial /Industrial zones in project area $400,000 Development Incentives to Redevelop Downtown Parking District No. 1 Parking District No. 1, $5,000,000 Parking District No. 1 area; Acquisition, Relocation, Development 120 -136 East Wheeler Avenue $2,000,000 Farmer's Market Downtown Area $100,000 Gold Line Station Public Improvements Including matching funds for street improvements and the transit plaza, parking structure facade treatment, retail space in the parking structure, bridges and abutment walls, and station upgrades $4,650,000 Gold Line Station — Second Pedestrian Access Agency portion of potential cost $2,000,000 Gold Line Station — Acquisition/Relocation for private development Commercial /industrial area around Front St, Colorado Blvd., First St., St. Joseph St., La Porte St./ Santa Anita Ave., Santa Clara St $10,000,000 Improvements for street improvements and the transit plaza, parking structure facade treatment, retail space in the parking structure, bridges and abutment walls, and station upgrades Gold Line Station — Second Pedestrian Access Agency portion of potential cost $2,000,000 Gold Line Station — Acquisition/Relocation for private development Commercial /industrial area around Front St, Colorado Blvd., First St., St. Joseph St., La Porte St./ Santa Anita Ave., Santa Clara St $10,000,000 Table 11 Intermediate Term Projects, Programs & Activities — 3 -6 Years 18 Title of Project Project Site Estimated Amount Gold Line Station Public Improvements Commercial /industrial area around Front St, Colorado Blvd., First St., St. Joseph St., La Porte St./ Santa Anita Ave., Santa Clara St. $5,000,000 Gold Line Station — Acquisition/Relocation for private development Commercial /industrial area around Front St, Colorado Blvd., First St., St. Joseph St., La Porte St./ Santa Anita Ave., Santa Clara St $10,000,000 Second Avenue /Huntington Railroad Bridge Reconstruction/Repair Huntington Drive /Second Avenue bridge $3,000,000 Santa Clara Street/Wash Bridge Reconstruction/Repair Santa Clara Street between Second and Fifth Avenues $1,000,000 Title of Project Project Site Estimated Amount Repayment of Agency debt to Low /Mod Housing Fund Project Area $4,045,715 (per ARA resolution 201, to be paid beginning in 2014) Morlan Place Project (Phase 2) Acquisition, Relocation, Development 25 -159 N. Santa Anita Avenue, 5 -25 West Huntington Drive, 5 -19 Morlan Place $15,000,000 U.S. Forest Service Acquisition & Relocation 701 North Santa Anita Avenue (10 +/- acres) $15,000,000 U. S. Forest Service Development 701 North Santa Anita Avenue (10 +/- acres) $10,000,000 Northwest Corner, Huntington Drive and Santa 101- 107 West Huntington Drive (commercial area) $3,000,000 Table 12 Long Term Projects, Programs & Activities — Six (6) or More Years A. Opportunity Projects, Programs, and Activities The projects, programs, and activities listed in Table 13 have an indefinite time period depending on City or Agency funds available, Council and Agency priorities, development/owner /tenant interest, federal /state /county /foundation grants and loans available, and market considerations. Table 13 Opportunity Projects, Programs, and Activities 19 Clara Street; Acquisition, Relocation, Development South Santa Anita Avenue, Lucille Street; Acquisition, Relocation, Development 900 South Santa Anita area $2,500,000 East Duarte Road, North side; Acquisition, Relocation, Development 101 — 167 East Duarte Road (Santa Anita Avenue to South First Avenue) $6,000,000 Northeast corner, Santa Anita Avenue and Wheeler Street; Acquisition, Relocation, Development 100 North Santa Anita Avenue $1,000,000 Post Office Block Project; Acquisition, Relocation, Development 25 -31 East Wheeler Street, Post Office, 26 -30 East Santa Clara Street, 57 North First Street, 101 -125 North First Street $15,000,000 Girl Scout Building; Acquisition, Relocation, Development 57 North First Avenue $2,000,000 Alta Street Project; Acquisition, Relocation, Development 35 East Alta Street $300,000 Public Facility Construction and Capital Improvement Project (s) In or near project area; in . City and of benefit to project area $2,000,000 Install wireless technology (wife) in the downtown Downtown — Project area $200,000 SECTION 3: LOW AND MODERATE INCOME HOUSING The California Health and Safety Code Section 33000 et seq. (Community Redevelopment Law — "CRL ") has been modified significantly in the last ten years. This section provides the current status of the Agency's Low and Moderate Income Housing Fund ( "Housing Fund ") and several requirements of the CRL, or other facts and issues that must be considered in preparing and implementing the affordable housing component of the Implementation Plan. As mentioned previously, CRL Section 33490 requires that a redevelopment agency prepare a detailed description of the projects, programs, and activities to be implemented by the Agency for each of the first five (5) years, with the amount proposed to be expended, by owner /renter, by income level (extremely low, very low, low, moderate, special needs), by age (senior over 65, non - senior) and by new construction or rehabilitation. 20 A. Compliance Rules for Affordable Housing The affordable housing projects, programs, and activities described herein are the Agency's Housing Compliance Plan, showing that it is complying with Section 33413(b) of the CRL. The Agency accomplishes its goals by improving and/or increasing the supply of affordable housing in the City. It is done, in part, by meeting the requirements of four different, but interrelated requirements that the CRL imposes on agencies: 1. The Agency must use at least 20% of its tax increment revenue to increase, improve, and preserve the supply of housing at all affordable income levels (CRL Section 33334.2); 2. The Agency must replace, in equal or greater number, the affordable housing units and bedrooms which are destroyed or removed as a result of a redevelopment project (the "replacement rule ", CRL Section 33413 (a)); 3. The Agency must ensure that a minimum percentage of all new or substantially rehabilitated dwelling units it develops are affordable to low or moderate income persons or families (the "inclusionary rule ", CRL Section 33413(b)(2)); 4. The Agency must ensure that a minimum percentage of all new and substantially rehabilitated dwelling units developed within the project area by public or private entities or persons other than the Agency are affordable to low and moderate income persons or families (the "inclusionary rule ", CRL Section 33413 (b)(2)). The Agency has passed a resolution that determined that affordable housing funds spent by the Agency outside of the Central Redevelopment Project Area will benefit the project area. Therefore, while items 2 - 4 above are based on activities within the project area, most of the requirements can be met through expenditures made anywhere in the City. B. Previous Agency Projects to Assist Low and Moderate Income Households The Agency has completed two affordable housing projects as part of meeting the requirements listed in section A above. Heritage Park — A 54 -unit, senior housing complex, located on Live Oak Avenue, opened in September 2004. Heritage Park is a 100% low income project that was funded in part, through a $1.8 million loan from the Agency low /mod housing fund. The Agency's loan is a residual receipts loan, with repayment due by 2034 (30 years after opening). The Agency received its first residual receipts payment during 2009. Alta Street Classics — This six (6) unit townhouse project at 119 -121 Alta Street opened in early 2008. The Alta Street Classics provided an opportunity for first time homebuyers to purchase in this attractive development. The Agency invested $2.2 million of its low /mod funds to provide a loan to the developer and silent second trust deeds to the purchasers. The Agency will be paid a portion of the profits from any home sales as repayment of its loan and to keep the homes affordable to future purchasers. The project design also represented a significant upgrade to the existing neighborhood. 21 Project & Removal/Replacement Very Low Low Moderate Total Date Income Income Income 5 Fifth Avenue (Hale project), 2001 -2002 Removal 11 8 4 23 Subtotal To be replaced . 11 8 4 • 23 Heritage Park, 2004 Replacement 16 37 0 53 Alta Street Classics, 2008 Replacement 0 0 6 6 Total Surplus Replacement Housing 5 29 2 36 Replacement Housing — The Agency assisted with the Hale Corporation Office Project at 5 North Fifth Avenue. The Agency assistance included the removal of 23 housing units in 2001 -2002, including 11 very low income units, 8 low income units, and 4 moderate income units. The Heritage Park project has 16 very low income units and 37 low income units. Because of federal tax law constraints affecting possible foreclosure, the Agency was not able to record a 55 -year affordability covenant on the project. However, the Agency made certain required findings which allowed these units to be counted toward meeting CRL requirements regarding replacement housing. The Agency exceeded its replacement housing requirement by five (5) very low income units and 29 low income units through the development of the Heritage Park project. The Alta Street Classics, with six (6) moderate income townhomes, met the Agency's requirement to replace four (4) moderate income units, leaving a surplus of two (2) moderate income units. This replacement housing history and status is summarized in Table 14 below: Table 14 Agency Replacement Housing Status Housing Element/RHNA — The City of Arcadia Housing Element (updated 2001) sets forth a goal of assisting 55 very low income, 32 low income, and 16 moderate income households, for a total of 103 units. These figures were based on RHNA numbers that are outdated. The City is currently updating its General Plan which will include a new Housing Element. It will also incorporate the updated RI-NA numbers that cover the period 2008 -2014. The City's RHNA numbers, as has been discussed with the Council in previous meetings, are vastly inflated for a built -out City like Arcadia. The RHNA numbers are shown in Table 15 below. 22 Income Level Percent of AMI* Units Percent Very Low 0 -50% 549 25.5% Low 51 -80% 340 15.8% Moderate 81 -120% 368 17.1% Above Moderate 120 %+ 892 41.5% Total 2,149 100% Income Level Percent of AMI* Units Percent Very Low 0 -50% 549 43.7% Low 51 -80% 340 27.0% Moderate 81 -120% 368 29.3% Total 1,257 100% Table 15 Regional Housing Needs Assessment (RHNA) 2008 -20 — Hrea Mealan Income The City of Arcadia is required to provide opportunities for this number of units and types to be built. The impact on the Redevelopment Agency is that it can focus its low and moderate income housing funds on the very low, low and moderate income housing levels that are part of the overall RHNA requirement. Those figures are shown in Table 16. Based on the 2000 census, given the percentage of lower income senior households to lower income households, the Agency can spend 34% of its low and moderate income funds on senior housing. Importantly, this is the allowable expenditure in the future, regardless of the Agency's previous investment in the Heritage Park Senior Housing project. Table 16 Redevelopment Housing Income Targets 2008 -201 — rea Meatan income C. Projected Low and Moderate Income Housing Revenues — 2009 — 2017 (20% Set Aside In this Five Year Implementation Plan, the Agency is required to have five and ten year plans for the expenditure of its low and moderate income housing funds to meet the affordable housing need in the community. However, since the Central Redevelopment Project Area is scheduled to terminate on January 25, 2017, the planning period will only extend for seven (7) years. Therefore, the projects, programs, and activities in the following sections will project for seven years. The first part of the planning process is to identify the housing funds that will be available over the next seven years. Table 17 provides a summary of low and moderate 23 Fiscal Year Anticipated Plus Less Available for Revenues - Interest Administration * ** Projects /Programs 20% Set Income ** Aside* Beginning Balance (7/1/09)^ $5,159,283 $5,159,283 2009 - 2010 $888,000 $40,000 $215,300 $712,700 2010 - 2011 $906,000 $30,000 $225,110 $710,890 2011 -2012 $924,000 $20,000 $231,865 $712,135 2012 - 2013 $942,000 $10,000 $238,820 $713,180 2013 - 2014 $961,000 $10,000 $245,985 $725,015 2014 - 2015 $980,000 $10,000 $253,365 $736,635 2015 - 2016 $999,000 $10,000 $260,965 $748,035 2016 -2017* $1,019,000 $10,000 $268,795 $760,205 Totals $12,778,283 $140,000 $1,940,205 $10,978,078 Plus Agency Repayment $4,045,715 TOTAL $15,237,793 income housing revenues that will be available to improve and increase the supply of affordable housing in Arcadia. Table 17 Low and Moderate Income Housing Fund Revenues 2010 -2017 Notes: ^Beginning balance from Redevelopment Agency audit * 20% set aside figures from projections by HdL * *Interest income projected at flat rate starting from 2012 -2013, due to unknown project related expenditures and actual year end balances ** *Admin costs for first two years taken from City budget; for final years, costs increased by 3% The low and moderate housing fund is owed $4,045,715 from the Agency's 80% tax increment monies for deficits in set aside that occurred between 1985 and 1996. The Agency is scheduled to begin making payments beginning January 14, 2014, or earlier at the discretion of the Agency Board, per ARA Resolution 201. The repaid funds are shown in Table 16 as available for expenditure in the low /mod housing fund, but in the short term, planning is being done based on the total available without incorporating the repayment. D. Using Affordable Housing Funds The Agency can use its low and moderate income housing funds for many different aspects of providing affordable housing. For example, it can use these funds to: acquire property, construct buildings, provide on -site or off -site improvements, rehabilitate buildings, pay a portion of principal and interest on bonds for affordable housing, preserve subsidized housing, and provide subsidies. As discussed elsewhere in this 24 report, the Agency has already invested in new low income senior apartments (Heritage Park) and new townhomes for first time moderate income purchasers (Alta Street Classics). Future affordable housing activities will be based on the availability of sites for new or substantially rehabilitated units. The Agency has already purchased a vacant residential site at 15 Lucille Street to develop a future affordable housing project. This, and other future projects will be impacted by certain statutes that impact affordable housing in Arcadia. These include: Excess Surplus — The CRL requires that the Agency expend or encumber, in a binding contract, an amount based upon the Agency' s annual tax increment revenues and the required 20% deposit to the Housing Fund over the previous three (3) years. The report that the Agency provides each December to the State Department of Housing and Community Development indicates both an excess surplus amount (if any) and a "watch number ", representing an amount that could be an excess surplus in the upcoming year if funds aren't encumbered. In June 2009, edevelopment) of the property at 15 Lucille funds as part of the purchase (and potential Street, to keep the last reported "watch number" expend its becoming 20% se as de t increase ru or Hwever, the Agency will need t o continue to ex p improve the supply of affordable housing so that it does not end up with an excess surplus in the future. Proposed affordable housing activities are discussed on page 28 Section 4: B of this Implementation Plan. The penalty for having an excess surplus (CRL Section 33334.12) is that the Agency may not encumber or expend any funds from any source, except for obligations that occurred at least three (3) years prior to the excess surplus (i.e., bonds, contracts, loans, etc.) until it has spent or encumbered all of the excess surplus PLUS 50% of the deficient excess surplus. These 50% additional monies may not be taken from low /mod housing funds, but must come from other sources, e.g., general redevelopment funds. In addition, the Agency can only expend 75% for administration compared to the previous year. Overall, the penalties are significant if the Agency were to accumulate an excess surplus in the future. Debt and Repayment — With the passage of SB 211, which requires the sharing of tax increment with other taxing entities in exchange for the elimination of certain project area time limits, and the City Council's adoption of Ordinance 2181, the Agency can incur debt for general redevelopment purposes at any time prior to the plan termination date (January 25, 2017, extended under SB 211 and SB 1045). Any indebtedness would have to be repaid by January 25, 2027. However, for purposes of providing affordable housing, under certain circumstances, the Agency can incur debt after 2017 and repay it after 2027. Proportionality Rule — AB 637 (2002) states that the Agency, for low and moderate housing, can only expend for any category an amount in proportion to the City's overall population in that category. For example, for lower income seniors, the 2000 census shows that they comprised 34% of all lower income households in Arcadia. The Agency, 25 can therefore expend 34% of its low /mod housing funds in the future to provide housing for lower income seniors. Prevailing Wage — Per SB 975, Agency projects, including private projects funded with redevelopment funds, are required to pay prevailing wages (e.g., Rusnak/Arcadia, Facade Rehab Program, affordable housing). Prevailing wages can increase project costs by 10- 25%. Though Labor Code Section 1720, et seq. provides that a small number of affordable housing projects are exempt from prevailing wage requirements, the majority of affordable housing projects are subject to prevailing wage laws. Affordability Covenants — In order to meet CRL requirements, all affordable housing projects must generally have a recorded enforceable covenant restricting use to the low and moderate income levels identified as part of the Agency- assisted development. The required covenants are 45 years for projects involving home ownership, and 55 years for rental projects. Incomes must be verified annually. The Agency can require "equity sharing" upon the sale of Agency- assisted ownership housing, which it has done with the Alta Street Classics. Article 34 — Article XXXIV of the California State Constitution provides that a low income rental housing project may not be developed, constructed or acquired by the Agency or City until the voters approve the project at an election. In the past, the voters approved 175 low income units in the City. Naomi Gardens, a low income senior housing project, used 100 units. The Heritage Park project used 53 units, leaving the City with the authority to assist 22 additional low income rental units. Education Revenue Augmentation Fund ( "ERAF ") — The requirement to send a large portion of the Agency's tax increment revenues to the State as a backfill for education funding was addressed early in this Plan. The Agency was required to send over $318,000 to the State in 2008 -2009, but a Court found the taking to be unconstitutional which relieved that burden. However, for the 2009 -2010 and 2010 -2011 fiscal years, the State will potentially take $1,867,846 from the Arcadia Redevelopment Agency through ERAF as part of its controversial budget balancing package. The California Redevelopment Association has again filed a lawsuit claiming that this taking is unconstitutional. A hearing on this matter is still pending. This proposed ERAF shift can potentially impact the low /mod housing fund in two ways. First, the ERAF legislation allows an agency to borrow from its low /mod housing fund to make the ERAF payment if existing obligations prevent all or part of the payment from being made out of general redevelopment funds. At this time, if the ERAF payment is required to be made, ARA will have sufficient funds in its general redevelopment account to make the required payments. Second, if the Agency is required to make the ERAF payment, it will be able to extend the project area time limits, as it has under previous ERAF legislation. Inclusionary Housing Requirement — The CRL requires the production of affordable housing for project areas adopted after 1975 or amended after 1975 to add area, including 26 two (2) for one (1) replacement housing units if the relevant housing is constructed or rehabilitated outside the project area. Arcadia does NOT have to meet this requirement, nor does it have to meet other housing production or inclusionary housing requirements set forth in the CRL for post -1976 project areas, because the Central Redevelopment Project Area was adopted in December 1973 (with a 1974 base year). General Plan and Affordable Housing — The current General Plan allows 50 units per acre for market rate senior housing, with a density bonus of up to 63 units per acre in commercial zones for affordable senior housing. The City is currently revising its General Plan, which will include revisions to residential densities. Proposed multiple family densities could allow up to 30 units per acre. Additionally, certain areas that could be designated for mixed use development, would potentially allow either 30 or 50 dwelling units per acre under certain circumstances. The General Plan update is subject to final review and approval. The current schedule for the General Plan update would likely involve any revisions being in place for most of the period of this Implementation Plan. It is important to recognize that this Implementation Plan will be in conformance with the General Plan and the Housing Element as they may be revised in the next year. CRL Section 33413(b)(4) requires that the Agency's affordable housing plan "shall be consistent with....the community's housing element." SECTON 4: AFFORDABLE HOUSING PROJECTS /PROGRAMS - 2010 -2017 The Agency has a goal of eliminating blight from the Central Redevelopment Project Area. Affordable housing projects and programs can contribute to the elimination of blight or blighting influences by bringing in new investment, new residents, creative design, and new energy. The Alta Street Classics is a strong example of achieving many important Agency goals with the development of a six -unit project. In order to maximize the use of the Agency's affordable housing funds, certain objectives might be considered when assessing projects and programs: 1. Use the Agency's low and moderate income housing fund to address the Regional Housing Needs Allocation (RHNA) to the greatest extend feasible; 2. Leverage low and moderate income housing funds to the greatest extend feasible for rental and ownership projects; 3. Encourage the use of non - financial strategies to address affordable housing needs; and, 4. Work with developers to create housing projects that are well designed and upgrade the area where they are located. There are numerous funding sources available to the Agency for affordable housing. These sources represent federal, state, county, and private funding opportunities that can be used for leveraging Agency low /mod funds. Most programs are very competitive and 27 require detailed applications. These programs are listed in Appendix A at the back of this Implementation Plan. A. Potential Non - Financial Strategies for Affordable Housing As referenced above, utilizing non - financial strategies is one method to encourage the development or rehabilitation of affordable housing. The City Council and Redevelopment Agency could provide some or all of these land use options that would reduce the cost of development by removing some governmental restraints to affordable housing. Some of these strategies include: City of Arcadia Inclusionary Zoning — The City Council could consider an ordinance requiring developers to provide a certain percent of their units for low and /or moderate income families, or alternatively to contribute money to a low /moderate income housing fund as is currently required by other cities. Density Bonus — As per State Law, the current Arcadia Zoning Ordinance provides for a density bonus that can increase density by at least 25% if the development (of five or more units) meets one of the following criteria: • At least 20% of the units are designated for lower income households; • At least 10% of the units are designated for very low income households; or, • At least 50% of the units are designated for senior citizens. The General Plan update and the new Housing Element may propose to modify the existing density bonus language to provide greater flexibility for affordable housing developments. In addition, the California Legislature passed SB 1818, which became effective in January, 2005, and makes it easier for developers to achieve density bonuses for affordable housing and requires cities to provide a greater variety of incentives for affordable housing. A summary of the requirements of SB 1818 is provided in Appendix B. Review Process — The review process for any development project can be expedited, impacting the cost and level of certainty for the applicant. As a City with a customer service focus, our staff makes every effort to handle project reviews efficiently. It is possible that a pre- development site review meeting with all departments would expedite an affordable housing project and help the developer know the true costs of a proposed project before spending significant monies on construction drawings and other expensive elements. Second Units — The State has found that second units provide an important source of affordable housing. Effective January 1, 2003, State law requires ministerial approval of second units and has adopted standards that apply unless a City adopts its own standards. The State standards allow second units of up to 1,200 sq. ft. if detached from an existing 28 Year Program Location Number of Expenditures Units/Types 2010 Develop New Low Income Housing Units 15 Lucille Street 4 — Low Income Rentals $700,000 - $1,000,000 2011 Land Write Down — New Affordable Housing Units Campus Drive 20 — Low Income Rentals (seniors) $1,000,000- $2,000,000 single - family dwelling unit, or up to 30% of the existing living area for an attached structure. The second unit must meet building codes. Fee Reduction — Reduction in City development fees for residential projects that meet a certain threshold of affordable units. Additionally, the City could consider: Modifications to Development Standards - Incentives related to residential development standards; Housing the Homeless — Requirements of SB 2; or Reasonable Accommodation - Related to housing for persons with disabilities. As with several of the items listed above, these last three possible affordable housing strategies will be addressed in the General Plan update and revised Housing Element. B. Proposed Low and Moderate Income Housing Expenditures 2010 -2015; Housing Production Plan During the five years covered by this Implementation Plan, the Agency will utilize a variety of options to improve and increase the supply of affordable housing in Arcadia as outlined below. These options will include: • New construction of affordable housing units; • Land acquisition for development of affordable housing; • Write downs to facilitate affordable housing project; • Housing rehabilitation program; • Possible affordable housing at Santa Anita Park Table 18 lists these options as the Agency's Housing Production Plan, and the potential expenditure for each. Table 18 Housing Production Plan; Options and Potential Expenditures 2010 -2015 29 2011 Land Acquisition 1 -2 miscellaneous sites Low or Moderate Incomes $750,000 - $1,500,000 2012 Affordable Housing Rehabilitation Various locations 10 — Low Income $250,000 - $500,000 2013 Develop site acquired in 2011 1 -2 miscellaneous sites 8 — ' Low or Moderate Income Units — Purchase/Rental $1,000,000- $2,000,000 2014 Housing for Groomsman Santa Anita Racetrack 100 — Low Income Rentals $10,000,000 Totals 142 Units $3,700,000 - $17,000,000 Developing affordable housing, like any redevelopment project, can take a number of years from concept to completion. Several of the projects listed in the Housing Production Plan may take longer to bring to fruition than is represented in Table 17. As was referenced earlier in this Plan, the Agency has acquired the property at 15 Lucille, and anticipates developing four (4) low income units. The specifics of that development will be presented to the Agency Board for formal consideration in early 2010. The Agency anticipates acquiring additional property for low /mod housing development during the next five years. In addition, it is expected that at least one affordable housing project will be presented to the Agency that involves an affordable housing developer seeking assistance to make a larger project feasible (similar to Heritage Park). The Agency considered starting a housing rehabilitation program as part of the last Implementation Plan. It is likely that it will be initiated during this five year period, allowing low income homeowners to accomplish additional necessary improvements beyond those funded through the CDBG program. Once the program is started, it will continue throughout the program period. The Agency Board has expressed interest in providing affordable housing at Santa Anita Park for the workers on the backside. Because of the current bankruptcy of Santa Anita Park, it is not known if there will be interest from a prospective owner or if that owner would consent to the required covenants. If this could be resolved, the Agency could actively consider making the investment necessary to facilitate these much needed housing units. C. Housing Production — Life of the Plan, 2015 -2017 Housing Production during the remainder of the Redevelopment Plan will involve the continuation of the housing rehabilitation program, housing at Santa Anita Park (if it proceeds), and probable assistance to a developer for construction or substantial rehab of a large affordable housing project. These activities will further the City's efforts to meet its RHNA numbers, while providing greater opportunities for those seeking affordable housing. 30 SECTION 5: CONCLUSION The Implementation Plan describes the programs that are proposed to be undertaken in commercial redevelopment, public improvements, and affordable housing, during the 2010- 2015 planning period. These programs are focused on alleviating blight in the Central Redevelopment Project Area. As has been obvious during the past several years, redevelopment is a very fluid process that is subject to a myriad of changing issues, legislative wrangling, and market dynamics. Because of this, the CRL includes a provision to review this Implementation Plan during the five years that it covers. The review must be held no earlier than two years and no later than three years after adoption of this Plan. The CRL also allows for this Plan to be amended at any time that conditions warrant the consideration of such an amendment. 31 APPENDIX A LIST OF AFFORDABLE HOUSING FUNDING SOURCES Program Name Description Eligible Activities 1. Federal Programs Community Development Block Grant (CDBG) As a participating City in the LA Urban County CDBG program, grants are allocated directly to the City on a formula basis for housing and community development activities primarily benefiting low and moderate income households. • Acquisition • Rehabilitation . Homebuyer Assistance • Economic Development • Homeless Assistance • Public Services HOME Funding used to support a variety of County housing programs that the City can access for specific projects. Funds are used to assist low income (80% AMI) households. • New Construction • 'Acquisition • Rehabilitation • • Homebuyer Assistance • Rental Assistance Section 8 Rental Assistance Rental assistance payments to owners of private market rate units on behalf of low- income (50% AMI) tenants. Administered by the Housing Authority of the County of Los Angeles. • Rental Assistance Section 202 Grants to non - profit developers of supportive housing for the elderly. • Acquisition • Rehabilitation • New Construction • Rental Assistance Section 811 Grants to non - profit developers of supportive housing for persons with disabilities, including group homes, independent living facilities and intermediate care facilities. • Acquisition • Rehabilitation . New Construction • Rental Assistance Financial Resources Available for Housing Activities Program Name Description Eligible Activities 2. State Programs Low - Income Housing Tax Tax credits are available to persons • New Construction Credit (LIHTC) and corporations that Invest in low- income rental housing. Proceeds from the sale are used to support the creation of affordable housing. . Acquisition and Rehabilitation Multi - Family Housing Deferred payment loans to non - profit • New Construction Program (MHP) and for - profit developers for new . Rehabilitation construction, rehabilitation and . Preservation preservation of permanent and transitional rental housing for lower income households. Two funding • Conversion of nonresidential to rental rounds annually through 2009. Usually coupled with bonds. • Social services coordination within project , Multi- family Housing Deferred payment loans for rental • New Construction Program - Supportive housing with supportive services for • Rehabilitation Housing the disabled who are homeless or at -. Preservation risk of homelessness. Two funding rounds annually through 2009. Can be coupled with either low income Conversion of nonresidential to rental ' housing tax credits or bonds. • Social services coordination within project Building Equity and Growth in Grants to cities to provide downpayment assistance (up to • Homebuyer Assistance Neighborhoods (BEGIN) $30,000) to low and moderate income first -time homebuyers of new homes in projects with affordability enhanced by local regulatory incentives or barrier reductions. One funding round annually through 2009. CalHome Grants to cities and non - profit developers to offer homebuyer assistance, including downpayment • Predevelopment, site development, site acquisition assistance, rehabilitation, acquisition/ • Rehabilitation rehabilitation, and home buyer . Acquisition /rehab counseling. Loans to developers for property acquisition, site development, predevelopment and construction period expenses for homeownership • Downpayment assistance Mortgage financing g projects. One funding round annually through 2011. • Homebuyer counseling Financial Resources Available for Housing Activities California Program Name Description Eligible Activities Transit - Oriented Development Program (Prop 1C) Funding for housing and related Infrastructure near transit stations. One funding round annually through 2009. • Capital improvements required for qualified housing developments • Capital improvements enhancing pedestrian or bike access from qualified housing development to nearest transit station • Land acquisition Affordable Housing Innovation Fund (Prop 1C) Funding for pilot programs to demonstrate innovative, cost - saving ways to create or preserve affordable housing • Regulations pending • Infill Incentive Grant Program (Prop 1C) Funding of public infrastructure (water, sewer, traffic, parks, site clean -up, etc) to facilitate Infill housing development. One funding round annually. • Development of parks and open space • Water, sewer, or other utility service ' improvments • Streets, roads, parking structures, transit linkages, transit shelters • Traffic mitigation features • Sidewalks and streetscape improvements CaIHFA Residential Development Loan Program Low interest, short term loans to local governments for affordable infili, owner- occupied developments. Links with CaIHFA's Downpayment Assistance Program to provide subordinate loans to first -time buyers. Two funding rounds per year. • Site acquisition • Pre - development costs Financial Resources Available for Housing Activities City of Arcadia, California Program Name Description Eligible Activities CaIHFA Homebuyer's Downpayment Assistance Program CaIHFA makes below market loans to first -time homebuyers of up to 3% of sales price. Program operates through participating lenders who originate loans for CaIHFA. Funds available upon request to qualified borrowers. • Homebuyer Assistance 3. County Programs City of Industry Funds Industry funds are redevelopment tax increment funds administered by the Housing Authority of the County df Los Angeles (HACoLA). Loans for rental housing, special needs housing, and for -sale housing (acquisition and permanent financing). One funding round annually. • Acquisition . Rehabilitation . New Construction • Homebuyer Assistance Southern California Home Financing Authority Loans to first -time homebuyers in the County, provided through participating lenders • First -Time Homebuyer Assistance 4. Local Programs Redevelopment Housing Fund State law requires that 20% of Redevelopment Agency funds be set aside for a wide range of affordable housing activities governed by State law. The San Dimas Implementation Plan estimates $1.1 - $1.3 million will be contributed to the Low /Mod Housing Fund annually. • Acquisition • Rehabilitation • New Construction Tax Exempt Housing Revenue Bond The City can support low- income housing by issuing housing mortgage revenue bonds requiring the developer to lease a fixed percentage of the units to low- income families at specified rental rates. The bond amount is allocated at the State level and issued at the local level. • New Construction • Rehabilitation . Acquisition Financial Resources Available for Housing Activities City of Arcadia, California Program Name Description Eligible Activities 5. Private Resources /Financing Programs Federal Home Loan Bank Affordable Housing Program Direct Subsidies to non - profit and for profit developers and public agencies for affordable low- income ownership and rental projects. • New Construction Savings Association Mortgage Company Inc. Pooling process to fund loans for affordable ownership and rental housing projects. Non - profit and for profit developers contact member institutions. • New construction of rentals, cooperatives, self help housing, homeless shelters, and group homes Financial Resources Available for Housing Activities Source: Beth Stochl Associates; Karen Warner Associates City of Arcadia, California APPENDIX B SUMMARY OF SB 1818 Southern California Association of Non - Profit Housing Density Bonus Ranges: a new law from the former SB 1818 SB 1818 amended Density Bonus Law (Government Code, Section 65915) in several ways. The bill creates a sliding scale in which developments with less affordable units now qualify for a density bonus, and the density bonus increases as the percentage of affordable units increases. This new density bonus system also increases the maximum allowed density bonus to 35 %. Under SB 1818 applicant are also eligible for the new "land donation density bonus ", and localities are required to offer one to three incentives instead of just one. SB 1818 is controversial, and some cities are having a hard time adopting it and /or implementing it. Range of Density Bonuses SCANPH Existing density bonus law offers a flat 25% density bonus for developments with: • 20% low- income units, or • 10% very low- income, or • 50% seniors. • And, a 10% density bonus Is available to condominiums with 20% moderate income units. Under SB 1818, a 20% density bonus is availalable to developments with: • 10% low- income units, with a 1.5% density increase for every percentage increase in low- income units above 10 %. The maximum density bonus allowed Is 35% • 5% very low income units, with a 2.5% density increase for every percentage increase in very low-income units above 5 %, The maximum density bonus allowed is 35% • Also, a flat 20% density bonus is offer to all senior developments • In addition, a 5% density bonus is available to condominium /PUD developments with 10% moderate Income units, with a 1% density increase for every percentage increase in moderate income units above 10 %. The maximum density bonus allowed is 35% *To calculate density bonus ranges see chart on back - from the California Housing Law Project. Land Donation Density Bonus SB 1818 also creates a new land donation density bonus for applicants who donate land for very low- income housing to local governments and housing developers. If an applicant donates land that can accommodate at least 40 units per acre and is sufficiently zoned to allow the construction of 10% very-low income units In a proposed development, they are entitled to a 15% density bonus on a different project. The density bonus Increases by 1% for every percentage of very-low income units above 10 %, up to a cap of 35 %. Required Incentives Under existing density bonus law, localities are required to offer one incentive or concession in addition to the density bonus at the request of the applicant. SB 1818 requires localities to offer 1 -3 incentives depending on the percentage of affordable units. This aspect of SB 1818 is not to preempt local Inclusionary housing ordinances. SB 1818 Density Bonus Ranges For the low- income density bonus, S13 1818 gives a 20% bonus for developments with 10% low- income units and increases that by 1.5% for every percentage of low - income units above 10 %, up to a cap 01 35%. % Low - Income Units % Density Bonus 10 20 I 1 21.5 12 23 13 24.5 14 26 15 27.5 16 29 17 30,5 18 32 19 33.5 20 35 For the very low- income density bonus, SB 1818 gives a 20% bonus for developments with 5% low - income units and increases that by 2.5% for every percentage of low - income units above S %, up to a cap of 35 %. % Very Low - Income Units % Density Bonus 5 20 6 22,5 7 25 8 27.5 9 30 10 32.5 11 35 For the senior housing density bonus, S13 1818 gives a 20% bonus for any senior development, rather than a 25% density bonus for housing with at least 50% seniors. For the moderate income condo /PUD density bonus, SB 1818 gives a 5% bonus for condo/PUD developments with 10% moderate income units and increases that by 1% for every percentage of low- income units above 10 %, up to a cap of35 %. % Moderate Income Units % Density Bonus 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 2 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 SB 1818 also creates a new land donation density bonus for donation of land to local governments and housing developers for very low- income housing. If an applicant donates land on which zoning is sufficient to permit construction of 10% attic units in a proposed development for very-low income households, the applicant is entitled to a 15% density bonus. The density bonus is calculated as 15% of the maximum allowable density for the entire development site. For example, an applicant for a 1,000 unit development gets a 15% density bonus for donating 5 acres of land (if it was zoned for 100 units), permitting the applicant to build 150 additional units on the undonated land, The density bonus increases by l% for every percentage of very low - income units, up to a cap of 35 %. 'Yo Very Low - Income Units % Density Bonus 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 APPENDIX C INCOME AND HOUSING COST FORMULAS FOR LOS ANGELES COUNTY Income and Housing Cost Formula for Los Angeles County Definition of Affordable Housing Cost California Health and Safety Code Sections 50052.5 and 50053 defines affordable owner and rental housing costs as follows: Affordable Ownership Housing Cost — lower income • Housing costs consist of mortgage debt service, homeowner association dues, insurance, utility allowance and property taxes. • Affordable costs for extremely low and very low income households are up to 30% of the defined household income. • Affordable costs for low income households are up to 30% of 70% of the Area Median Income (AMI) or, optionally, up to 30% of the gross income for a household size equal to one more person than the number of bedrooms in the unit. • Affordable costs for moderate income households is not less than 28% of the gross household income and not more than 35% of 110% of Area Median Income (AMI) for a household size equal to one more person than the number of bedrooms in the unit. Affordable Renter Housing Costs • Housing costs include rent plus utilities paid for by the tenant. • Affordable costs are up to 30% of the defined household income. • Affordable rents are based on a standard of 50% of AMI for very low income households; 60% or AMI for low income households; and 110% of AMI for moderate income households for a household size equal to one person more than the number of bedrooms in the unit. Note: Health and Safety Code Section 50052.5 establishes affordable housing cost. Health and Safety Code Section 50053 establishes affordable rents. Income Level Percent of County Area Median Income (AMI) Extremely Low 0 -3 -% AMI Very Low 0 -50% AMI Low 51 -80% AMI Moderate 81 -120% AMI Above Moderate 120+ AMI Income Category 1 2 3 4 5 6 Extremely Low $16,650 $19,050 $21,400 $23,800 $25,700 $27,600 Very Low $27,750 $31,700 $35,700 $39,650 $42,800 $46,000 Low $44,400 $50,750 $57,100 $63,450 $68,550 $73,600 Moderate $52,;150 $59,600 $67,050 $74,500 $80,450 $86,400 State Income Categories ource: Ca p a Health and Safety Code Section 50093 Los Angeles County Income Limits for 2009 Number of erson ource: Los Angeles County Note: The 2009 State Area Median Income (AMI) for a four person household in Los Angeles County is $62,100. APPENDIX D INCOME AND HOUSING COST DATA FOR STATE AND COUNTY HOUSING PROGRAMS Household 1 -2 Persons 3+ Persons Purchase 1 -2 Persons 3+ Persons Size Size Price Maximum Income $88,800 $103,132 New $591,272 $722,665 Low Income $57,096 $65,660 Existing $571,278 $698,229 Existing 1 -2 Persons 3+ Persons New 1 -2 Persons 3+ Persons Resale Size Construction Moderate Income $95,160 $111,020 Moderate Income $95,160 $111,020 Low Income $57,096 $65,660 Low Income $66,612 $76,604 Household 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons Size $52,150 $59,600 $67,050 $74,500 $80,450 $86,400 1 Person Sin • le Famil Home Condominium /Townhome Maximum Purchase Price $493,000 $394,250 1 Person 2 Persons 3 Persons 4 or more Persons $52,150 $59,600 $67,050 $74,500 California Housing Finance Authority (Cal HFA) Cal 30 Program First Time Homebuyers Program Income Limits — Los Angeles County -2009 CSHLP & Smart Programs Income Limits — Los Angeles County - 2009 California Homebuyers Down Payment Assistance Program (CHDAP) HCD Moderate Income Levels — Los Angeles County — 2009 Note: These are representative programs that are available through Cal HFA. Each program has specific qualifying requirements. Los Angeles County Community Development Commission (LACDC) Mort Credit Certificate (MCC) Program — 2009 Limits Down Payment Assistance -2009 Note: LA County CDC offers these and other programs to encourage and preserve home ownership. APPENDIX E DEMOGRAPHIC DATA FOR THE CITY OF ARCADIA Characteristics 2007 Claritas estimate Percenta es Population 58,027 _l Male 27,315 47.07% Female 30,712 52.93% Age - Median 42.72 years 0 -20 13,721 23.64% 21 -49 22,019 37.95% 50+ 22,287 38.41% Race White 20,933 36.07% Black or African American 758 1.31% Native American 134 0.23% Asian 31,770 54.75% Pacific Islander 57 0.10% Hispanic or Latino 5,029 10.22% Note: Due to mixed ethnicity, total is not the same as population Households 20,658 100% Family 15,141 73.29% Without children under 18 7,438 36.00% Note: Due to overlap, total is greater than 100% Average Household Size 2.78 Total Housing Units 20,658 100% Owner Occupied 12,575 60.87% Renter Occupied 8,083 39.13% Median Year Housing Structures Built 1962 Estimated Housing Units in Structure 1 Unit Detached 12,092 56.92% 2 Units 320 1.51% 3 -19 Units 4,425 20.83% City of Arcadia Demographic and Socioeconomic Characteristics (Source: Claritas, Inc. 2007 estimates) Characteristics 2007 Claritas estimate Percentages 20 -49 Units _ 2,273 10.70% Educational Attainment Less than High School 1,802 4.39% Some High School 2,542 6.19% High School Grad (or GED) 6,886 16.77% Some College; AA degree 11,718 28.54% Bachelors degree 11,066 26.95% Masters degree 4,466 10.88% Professional School Degree 1,562 3.80% Doctorate 1,022 2.49% Estimate Average Household Income $104,650 Estimated Median Household Income $78,392 Estimated Families /Household Below Poverty Level 1,087 7.08% Employment (Age 16 +) 48,399 Armed Forces 3 0.01% Civilian - Employed 26,513 54.78% Civilian - Unemployed 1,215 2.51% Not in Labor Force 20,688 42.70% Note: 2007 estimates; prior to economic recession APPENDIX F LIST OF ARCADIA REDEVELOPMENT AGENCY ASSISTED PROJECTS LIST OF ARCADIA REDEVELOPMENT AGENCY ASSISTED PROJECTS - STATISTICS (see map -over: numbers In left column designate location of protect) Updated - 11 /02/04 1 Arcade Medical Center. 65 N. First Ave. 2 WlnnomanlPalmer Office, 159 E. Huntington Dr. 3 4 5 7 8 9 10 11 12 13 14 15 18 17 18 19 20 21 22 23 24 25 26 27 26 Ray Link Office, 130 E. Santa Clara St. Johns/KuhnO81ce, 113 Wheeler Ave. 29 HTL Office, 100 Wheeler Ave. (Girl Scouts) Former American Title Office, 424 N. First Ave. Bowden Office, 810 N. Santa Anita Ave. 0210 ramp 30 31 32 Engineering Science Office, 126 W. Huntington Dr. (Parsons) Embassy Suites (198 Rms.), 211 E. Huntington Dr. Censor Office, 444 E. Huntington Dr. (Weis Fargo) Arco&Schaeler Bros. Office, 55 E. Huntington Dr. (MSA) Northatde Protect Souplanlation Restaurant, 301 E. Huntington Dr. 33 34 Hampton Inn (132 Rms.), 311 E. Huntington Dr. 35 Residence Inn (120 Rms.), 321 E. Huntington Dr. Extended Slay America (122 Rms.), 401 5. Santa Clara ICDIHeatefex, 451 E. Santa Clara 35 Monls/Churnh of Nazarene Office Buildings (301, 351 E. Santa Clara) Southstde Protect Bt's Restaurant, 400 E. Huntington Dr. Oliva Garden Restaurant, 430 E. Huntington Dr. Medical Office, 450 E. Huntington Dr. (Cigna) MA Office, 420 E. Huntington Dr. 4 Story Office, 440E Huntington Dr. Retail Building, 300 E. Huntington Dr. City Municipal Yard - Relocation 10 Chicago Park K.B. Construction Office, 124 N. First Ave. Southwest Corner Protect Outback Steakhouse, 168 E. Huntington Dr. REI, 214 N. Santa Anita Ave. Office, 223 N. First (Hale/Waken) Downtown 2000 Sueelacape Project, Huntington & First Ave. Commercial Facade Rehab. Program, CBD and expanded Area Northwest Comer Project Hilton Garden Inn, 189 N. Second Ave. (124 Rms.) Marriott Spring HIV Suites, 99 N. Second Ave. (88 Rms.) Office, 51 N. Fifth and 48 E. Santa Clara (HalotWaken) Glib Historical Museum Police Facility Heritage Park Affordable Senior Housing, 150 Las Tunas Dr. BENEFIT TOTALS Former City Library Site Gas Station, Former Indiana Si. industdai Office 1 Residential Unit, Retail Shop Old Poet Office Site Gas Station Residential Clnemaland Theater, Drive -in Restaurant Lumber Yard 2 Motor Lodges, 2 Residential Unita Thrifty drugs, Plea Man, Huntington Desk Derby Parking Lot, Auto Body Shop, Residential Unit Approx. 20 Residential Unite Approx. 23 Residential Units, Construction Yard, 2 Vacant City Lots, Plastering Business Construction Yard Construction Yard Construction Yerd, Office & Storage North 51de Project Sub Totals: Derby Motel, Arcadia Muffler, 2 Residential Units Andy's Burgers, Mullen Building, 2 Residential Units City Corporation Yard City Corporation Yard, Continuation High School City Corporation Yard City Corporation Yard, Rentypa, Bob's Beef Burger Southslde Project Sub - Totals: Vacant (53.2 million Note Issued) Vacated Front Street Dandy Door, Thompson's Bath and Kitchen, Olympic Table and Chair, Empty Used Car Lot Arcadia Lumbar Parking Lot ♦ Vacant Storm drains, water lines, new street, Uric., decorative lighting, street furniture, medians, sidewalk, monuments, slgnaga Rebate for facade, parking lot, slgnaga Improvements Industrial; Residential, Parking Railroad Yard, Street Northwest Comer Sub - Totals: Office building; RV storage; Construction yard; 23 Housing unite (rid Motor Lodge) Landscaped area, Community Center National Guard Amwty Retail, office, muffler shop 1978 1978 1977 1978 1979 1979 1981 1882 1984 1985 1988 1989 1989 1989 1998 1999 1989 1990 1989 1990 1890 1989 1987 1982 1995 1999 2000 1995 -98 1998 -03 1999 1999 2002 (under construction 2000 2003 2004 42,139 8,090 Rehab. 9,703 6,938 4,000 16,810 69,810 131,627 44,763 29,627 7,626 61,473 72,045 55,000 14.000 44,000 254,144 8,280 9,283 48,980 24,374 67,876 27,445 1 65,898 5 acres 3,104 4,350 35,000 20,000 1.4 linear miles 28 merchants 64,765 48,123 112,878 85,000 4,000 41,000 11,000 54,000 1,087,559 84 18 1B 14 8 32 140 87 90 60 19 ' 43 40 41 28 88 278 21 23 88 48 138 35 404 NA 6 11 44 40 NA NA 41 28 59 170 NA NA 5 1,494 NOTE: *ESTIMATE OF JOB CREATION • PROFESSIONAL OFFICE • 50% OF PARKING (E.G., 10,000 SQ. FT X 4(1000 X 50% 20 JOBS) HOTEL - 33% OF ROOMS; RETAIL AND RESTAURANT - 25% OF PARKING CODE REQUIREMENT SEE MAP SHOWING PROJECT LOCATIONS - OVER V V Z W 1-- < a � W Z W W a a 0 QOJ > W > c W CI W p� W 0 Q � r 0 I- • r r � r� Q W ' / LL 0 / 1 r • 0 z • T 3f1N3AV _Rid Id VIINV V1NVS W 0 0 z N L r O 0 CO 0. CO J N / • 1— I- a rn L (..) ce .o 7 'N 0 S co as LL CO 0 at TS e c C/ ~ eE a U3 p " O Q Q I C y ` _ ern 0 s 0' iv ..t., 80 t C 80 . 0 z m m e r E ° N E e E r C O • V V V y 1 A o C 2' en . 3 , i , a a ' 0 U , e zs co U £3 . a M