2009: RDA area 1 & 2 - 4th Five-Year Implementation Plan
FOURTH
FIVE YEAR
IMPLEMENTATION PLAN
LA QUINTA
REDEVELOPMENT AGENCY
Fiscal Years 2009-10 THROUGH 2013-14
Prepared by:
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................... 3
Legal Authority ......................................................................................................................... 3
Implementation Plan Objectives ................................................................................................ 3
Document Organization ............................................................................................................ 4
WHAT IS REDEVELOPMENT? ................................................................................................. 5
The Public Value & Benefits of Redevelopment ................................................................................. 5
BLIGHT .................................................................................................................................... 5
TAX INCREMENT FINANCING ................................................................................................... 6
20 Percent Low and Moderate Income Housing Set-Aside Fund ..............................................................6
Pass-Through Payments ............................................................................................................................7
State Takeaways – SERAF Payments .......................................................................................................7
WHAT IS A REDEVELOPMENT PLAN? ....................................................................................... 7
ABOUT THE AGENCY & PROJECT AREAS .............................................................................. 9
ACCOMPLISHMENTS ........................................................................................................... 12
REDEVELOPMENT PLAN GOALS .......................................................................................... 15
REDEVELOPMENT WORK PROGRAM ................................................................................... 17
REDEVELOPMENT (NON-HOUSING) CASH FLOW ................................................................. 23
INTRODUCTION ................................................................................................................... 26
Affordable Housing Work Program .......................................................................................... 27
AFFORDABLE HOUSING COMPLIANCE ................................................................................ 32
Blueprint for Agency Housing Activities .......................................................................................... 32
HOUSING PRODUCTION ........................................................................................................ 32
REPLACEMENT HOUSING ...................................................................................................... 37
HOUSING PROGRAM CASH FLOW ANALYSIS ......................................................................... 38
Expenditures by Household Types .......................................................................................... 38
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES ............................................................. 42
Units Assisted by Housing Fund ............................................................................................................. 42
Housing Units Constructed During Prior Implementation Plan Without Housing Funds ......................... 42
APPENDIX 1 ......................................................................................................................... 45
Summary of Pass Through Agreements ........................................................................................... 45
Project No. 1 ........................................................................................................................... 45
Coachella Valley Mosquito Abatement District ....................................................................................... 45
Coachella Valley Unified School District ................................................................................................. 45
Coachella Valley Water District ............................................................................................................... 45
County General Fund, Library, and Fire Districts .................................................................................... 46
Desert Community College ..................................................................................................................... 46
Desert Sands Unified School District ...................................................................................................... 46
Statutory Pass Through Payments ......................................................................................................... 47
Project No. 2 ........................................................................................................................... 48
Coachella Valley Community College District ......................................................................................... 48
Coachella Valley Mosquito and Vector Control District ........................................................................... 48
Coachella Valley Recreation and Park District........................................................................................ 48
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Coachella Valley Water District ............................................................................................................... 48
County of Riverside ................................................................................................................................. 48
Riverside County Superintendent of Schools .......................................................................................... 48
Desert Sands Unified School District ...................................................................................................... 48
Statutory Pass Through Payments ......................................................................................................... 48
APPENDIX 2 ......................................................................................................................... 50
Redevelopment Project Inventory ................................................................................................... 50
APPENDIX 3 ......................................................................................................................... 51
Glossary of Housing Terms ............................................................................................................. 51
Duration of Affordability Covenants ........................................................................................ 51
Affordability Income and Cost Levels ....................................................................................... 52
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
INTRODUCTION
About This Implementation Plan
Every five years, redevelopment agencies are required to adopt implementation plans that establish
five-year operational and financial work programs for their redevelopment, economic development, and
affordable housing programs and projects. This document is the Fourth Five Year Implementation Plan
(“Implementation Plan”) for the La Quinta Redevelopment Agency (“Agency”); it covers the five-year
planning period of Fiscal Years 2009-10 through 2013-14 for La Quinta Redevelopment Project No. 1
(“Project No. 1”) and La Quinta Redevelopment Project No. 2 (“Project No. 2”), collectively referred to
as the “Project Areas”. This Implementation Plan also updates the Agency’s Ten-Year Housing
Compliance Plan (“Housing Compliance Plan”) which outlines the Agency’s affordable housing
obligations and initiatives for the current 10-year compliance period (Fiscal Years 2004-05 to 2013-14).
LEGAL AUTHORITY
In 1993, the Legislature passed Assembly Bill 1290 (Chapter 942, Statutes of 1993), which enacted the
California Community Redevelopment Law Reform Act and made sweeping changes to state
redevelopment law (Health and Safety Code §§33000 et seq.) (“CRL”). The Legislature passed this
legislation as part of a major effort to increase both the effectiveness and accountability of
redevelopment agencies. One notable change was the addition of Article 16.5 (§§33490 et seq.) to the
CRL, which required redevelopment agencies to adopt five year implementat ion plans for all project
areas on or before December 31, 1994, and every five years thereafter. CRL Section 33490(a)
requires that an implementation plan present:
The redevelopment agency’s goals and objectives, programs, and projects within the project areas
for the next five years, including estimated expenditures,
An explanation of how the goals and objectives, programs, projects, and expenditures will eliminate
blight and promote affordable housing within the project areas, and
A separate section that addresses the redevelopment agency’s affordable housing responsibilities,
including an agency’s projected low and moderate income housing fund expenditures and plan to
produce and/or replace affordable housing.
Given these required contents, an implementation plan serves as more than just a compliance
document that only adheres to the CRL’s legal mandates. An implementation plan also affords the
opportunity to thoughtfully craft a purposeful and deliberate strategy that guides redevelopment agency
investment for a five year period.
IMPLEMENTATION PLAN OBJECTIVES
The Agency’s objectives for this Implementation Plan are to:
Establish focused redevelopment and housing strategies for the next five years that provide a
roadmap for decision-making about resource allocation, budget, and community engagement.
Create an administrative management tool for Agency staff that provides a measurable, track -able,
and programmatic work plan for the Agency’s operations.
Provide educational and informative background about the Agency’s role, powers, and tools and a
historical overview of the Agency.
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Five Year Implementation Plan: FY 2009-10 through 2013-14
Furnish data and information to preserve and produce affordable housing.
DOCUMENT ORGANIZATION
This Implementation Plan is organized into three sections:
Section I: Overview and Background. This section provides an overview of redevelopment in
California, and a profile description of the Agency and its Project Areas.
Section II: Redevelopment Implementation Plan. This section presents the Implementation Plan,
including a comprehensive work program of projects and programs. The projects and programs
contained in the work program represent the Agency’s strategic priorities, and implementation of
each project or program will be subject to funding availability and subsequent Agency approval.1
Section III: Housing Compliance Plan Update. This section updates the housing compliance plan
for the current 10-year compliance period (Fiscal Years 2004-05 to 2013-14), identifies the Agency’s
affordable housing production requirements, affordable housing project proposals, and projected
affordable housing revenues and expenditures.
1 CRL Section 33490(a)(1)(B) provides that the adoption of an implementation plan shall not constitute an approval program of any specific,
project, or expenditure and shall not change the need to obtain any required approval of a specific program, project, or expe nditure from the
agency or community.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
WHAT IS REDEVELOPMENT?
The Public Value & Benefits of Redevelopment
In 1952, California voters adopted Article XVI, Section 16
allowing the provision of tax increment financing for
redevelopment of blighted communities. Californians
recognized the need to provide a mechanism to reinvest in
economically and physically blighted communities throughout
California. The CRL is located in the California Health and
Safety Code (§§33000 et seq.) and provides tools to assist
local governments with remediating blight, promoting private
investment, and preserving and expanding the community’s
supply of affordable housing. A redevelopment agency
implements redevelopment activities through the use of tax
increment revenue - issuing bonds to raise investment capital,
buying and selling property, investing in public infrastructure
and facilities, and creating affordable housing opportunities.
Redevelopment allows local governments to eliminate physical
and economic blight in a designated redevelopment project
area. A redevelopment project area is established when an
area exhibits conditions of both physical and economic blight
(§§33030 and 33031) as described below.
BLIGHT
The CRL emphasizes redevelopment’s role in eliminating
blighting conditions and defines blight as physical and
economic liabilities that affect the health, safety, and general
welfare of a community. CRL Section 33030 describes a
blighted area as being predominantly urbanized and
substantially affected by detrimental physical and economic
conditions to such an extent that the community cannot
reasonably be revived without redevelopment. The physical
and economic conditions that cause blight as defined as
follows:
Physical Conditions (CRL §33031(a))
Buildings with serious code violations, dilapidation,
or deterioration such that it is unsafe or unhealthy
for a person to live or work.
Conditions that prevent or substantially hinder the
viable use or capacity of buildings or lots.
Adjacent or nearby incompatible uses that prevent
development.
Existence of subdivided lots that are in multiple
ownership and whose physical development has
Redevelopment by the
Numbers:
$40.79 billion. Redevelopment’s
economic contribution to
California in Fiscal Year 2006-07.
$13. Every $1 of redevelopment
agency spending generates nearly
$13 in total economic activity.
303,946. Full and part time
jobs created in just one year
(Fiscal Year 2006-07).
78,750 units of affordable
housing built or rehabilitated
since 1995 by redevelopment
agencies.
18,522 units of low and
moderate income housing
expected to be built or refurbished
over the next two years.
$2 billion. State and local taxes
generated through redevelopment
construction activities in Fiscal
Year 2006-07.
20% of property tax revenues
generated from redevelopment
activities must be used to
increase supply of affordable
housing.
2nd largest funder of affordable
housing in California after the
federal government.
Source: California Redevelopment
Association, 2009.
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La Quinta Redevelopment Agency
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been impaired by their irregular shapes and inadequate sizes.
Economic Conditions (CRL §33031(b))
Depreciated or stagnant property values.
Impaired property values due to hazardous wastes.
Abnormally high business vacancies, abnormally low lease rates, or an abnormally high
number of abandoned buildings in an area developed for urban use and served by utilities.
A serious lack of commercial facilities that are normally found in neighborhoods, including
grocery stores, drug stores and banks.
Serious residential overcrowding.
An excess of bars, liquor stores, or adult-oriented businesses that have led to problems of
public safety and welfare.
A high crime rate that constitutes a threat to the public safety and welfare.
TAX INCREMENT FINANCING
Tax increment financing is the primary
source of funding used to implement
redevelopment initiatives. Tax increment
financing is based upon the assumption
that as a geographical area is revitalized,
property values will increase, and
additional property taxes will be
generated. When a redevelopment
project area is adopted, the current
assessed values of all the properties
within project area boundaries are
designated as the base year value
(§33328). As assessed values increase,
tax increment revenue is generated from
the growth in property values over the
base year value. The increase in property values results in increased property tax revenue; a portion of
the increased property tax revenue is allocated to a redevelopment agency (tax increment revenue)
which is then charged with the responsibility of investing this revenue in the project area . Figure 1 is a
graphical depiction of how tax increment is generated and distributed.
20 Percent Low and Moderate Income Housing Set-Aside Fund
A portion of tax increment revenue received by a redevelopment agency must be used to preserve and
increase the supply of affordable housing within a project area. The CRL requires that a minimum of 20
percent of tax increment revenue be set aside into a separate fund that is restricted for the purpose of
creating low and moderate income housing (§33334.2), known as the Low and Moderate Income
Housing Set-Aside Fund (“Housing Fund”). Redevelopment agencies may use these funds to acquire
property, construct on-site and off-site improvements (required to build or preserve affordable housing),
construct or rehabilitate affordable housing, provide subsidies to ensure continued affordability, and
Figure 1 – Tax Increment Financing
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La Quinta Redevelopment Agency
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issue bonds to raise capital for affordable housing preservation and development. Redevelopment
agencies are one of the primary entities producing affordable housing throughout the State.
Pass-Through Payments
Redevelopment agencies are required to remit tax increment revenue to affected taxing agencies
(counties, school districts, community college districts, and special districts) that receive property tax
revenue in redevelopment project areas. These payments, known as “pass-through payments,”
represent 43 percent of the gross tax increment received in Project No. 1 and 70 percent of the gross
tax increment received in Project No. 2. The pass-through payments are designed to alleviate fiscal
burdens the affected taxing entities may incur as a result of implementing redevelopment projects.
There are two types of pass-through payments. Prior to 1994, redevelopment agencies would
negotiate a fiscal mitigation agreement with each taxing agency. Since both Project Areas were
adopted prior to 1994, a majority of the Agency’s pass-through payments are the result of contracts that
were negotiated with the taxing agencies when the respective Project Areas were adopted.
Since 1994, the Agency amended the Redevelopment Plans for Project No. 1 and Project No. 2 to
eliminate the time limit to incur debt; these amendments triggered the second type of pass through
payments, called statutory payments, to taxing agencies that did not have prior pass-through
agreements with the Agency. The CRL establishes set formulas for statutory payments. Appendix 1
contains a summary of Agency’s pass-through agreements and lists the taxing agencies that have
negotiated agreements and those that receive statutory pass through payments.
The remaining portion of the tax increment revenue, after the required 20 percent deposit into the
Housing Fund and payments to taxing agencies, is available for eligible redevelopment projects, such
as infrastructure improvements, community facilities, development incentives, debt service, and general
administration. Tax increment revenue cannot be used, however, to fund ongoing operations and
maintenance costs of public facilities or infrastructure. The Agency essentially retains 57 percent of
gross tax increment in Project No. 1, and 30 percent of gross tax increment in Project No. 2. These
percentages include the 20 percent Housing Fund deposits.
State Takeaways – SERAF Payments
As in prior State fiscal crises, the Legislature is reallocating local government revenue to help close the
State’s massive budget gap. Known as the Supplemental Educational Revenue Augmentation Fund
(“SERAF”), the State is seeking $2.05 billion from redevelopment agencies in Fiscal Years 2009-10 and
2010-11. These funds will be distributed to local school districts and will reduce the amount of State
General Fund revenue required to achieve Proposition 98 school funding needs. The Agency’s total
SERAF payment is $28,433,054; $23,582,367 in Fiscal Year 2009-10 and $4,850,687 in Fiscal Year
2010-11. While efforts have been mounted to legally challenge the constitutionality of these
takeaways, the five year expenditure program presented in this Implementation Plan assumes that the
Agency must make these payments and this revenue will not be available for non-housing Agency
projects and programs. If these funds remain with the Agency, there will be additional funds for non -
housing redevelopment projects.
WHAT IS A REDEVELOPMENT PLAN?
A redevelopment plan provides a legal framework for long-term planning and the implementation of
revitalization activities in a redevelopment project area. It also establishes a financing method by
authorizing the agency’s use of financing tools to implement projects and policies. The redevelopment
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
plan also sets the basic goals, powers, and limitations within which the redevelopment agency must
conduct its activities over the life of the project area. It does not provide a d etailed, rigid course of
action to achieve those goals, but establishes how the agency intends to alleviate blight in a project
area. The Agency has two redevelopment plans; the Redevelopment Plan for Project No. 1 which was
originally adopted in 1983 and amended several times since adoption, and the Redevelopment Plan for
Project No. 2 which was adopted in 1989, and also amended several times since adoption (collectively
referred to as the “Redevelopment Plans”).
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
ABOUT THE AGENCY & PROJECT AREAS
History and Profile
The area of La Quinta first emerged in the early 18th century when Spanish conquistadores used it as
the fifth resting point along the route from present -day Mexico to San Bernardino. The words "la
quinta" translate in Spanish to "the fifth". Agriculture developed in the early 1900s. The La Quinta
Resort was established in 1927, which housed the Coachella Valley’s first golf course and was a
popular hideaway for Hollywood celebrities. Major roads expanded in the 1950s and 1960s, paving the
way for future development. The City of La Quinta incorporated in 1982 during a time of dramatic
growth in the region.
The La Quinta Redevelopment Agency was established on July 5, 1983 to address conditions of
physical and economic blight in the City. Project No. 1 was established in November 1983 to redevelop
and expand deficient public infrastructure and facilities, facilitate economic development, expand
recreation opportunities, and revitalize the La Quinta Village. Project No. 1 is bounded by Avenue 50 to
the north, Jefferson and Madison Streets to the east, and the La Quinta City boundary on the west.
Project No. 2 was established in May 1989 to remove impediments to commercial and residential
development, address public infrastructure and facility deficiencies, and to increase and im prove the
community’s supply of affordable housing. It is bounded by Avenue 50 to the south, Fred Waring Drive
to the north, Washington Street to the west, and Jefferson Street to the east.
The Project Areas are shown on the following map.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
The Redevelopment Plans for the Project Areas set forth limitations with regard to collecting tax
increment revenue, incurring bonded indebtedness, Redevelopment Plan effectiveness, and the use of
eminent domain.
Notable Timeframes Table 1
PROJECT NO. 1
Redevelopment Plan Adopted November 1983
Expires November 2024
Incur Indebtedness No time limit
Repay Indebtedness/ November 2034
Receive Tax Increment
Eminent Domain Expired March 2007
PROJECT NO. 2
Redevelopment Plan Adopted May 1989
Expires May 2030
Incur Indebtedness No time limit
Repay Indebtedness/ Expires May 2040
Receive Tax Increment
Eminent Domain Expired May 2001
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
ACCOMPLISHMENTS
Achievements in Community Revitalization
In the last five years, the Agency has championed many successful projects and programs in the
Project Areas. A few examples are:
Highway 111 Corridor. City staff continued to work with
Highway 111 property owners to jointly pursue marketing
opportunities in Project No. 2. This included promoting
development opportunities at the International Council of
Shopping Centers’ Western Division Conference, working
with property owners to address impediments to
development, and facilitating development proposal
entitlement needs. Additionally, City staff has been
working with the owner of Garff Chevrolet/Cadillac and
Torre Nissan to facilitate dealership expansion, which will
allow them to stay at their La Quinta location. The City and
Redevelopment Agency staff will continue to work on the
retention, expansion, and recruitment of auto franchises in
the existing Auto Center and other Highway 111
properties. To date several opportunities are currently
being investigated.
Wolff-Waters. Located in Project No. 2, Wolff Waters is a
multi-family complex that features rents affordable to very-
low and low income family households. This 218 unit
complex is located northwest of the intersection of Avenue
48 and Dune Palms Road. The design and development
program embraced sustainable design and construction
materials/practices, and the development may be eligible
to achieve LEED Silver certification. The complex opened
in December 2009. There are 1,200 persons on the
residency waiting list.
Village Access. The Village is the prime commercial
district in Project No. 1. In order to improve access to the
Village, the Agency underwrote the installation of
directional signs that guide drivers to the Village and point
out public facilities and amenities (e.g., library, museum,
city hall, etc.). Also, given that La Quinta is a golf-oriented
community, the Agency recently implemented the Phase I
Golf Cart Plan. This program created a golf cart network,
providing improved access to and within the Village.
Physical improvements included striping, signage, a traffic
signal, enhanced crosswalks, and installation of traffic
calming devices to slow vehicular traffic.
SilverRock Resort. The Agency entered into a Disposition
and Development Agreement (“DDA”) that facilitates the
sale and/or lease of nearly 61 acres to LDD SilverRock,
Vista Dunes Courtyard Homes
The Agency-developed Vista Dunes
Courtyard Homes opened in 2008. The
80-unit complex houses more than 300
very low income residents on a 9.5 acre
site located in Project No. 2. Vista
Dunes incorporates principles of
environmentally friendly design, energy
and water efficiency, durability, and
sustainability. It is the largest multifamily
affordable housing complex in the nation
to achieve LEED Platinum certification
when constituted. The homes include
some of the most advanced water and
energy efficiencies in home building
today.
The Agency initiated the project to
remediate a blighted property and to
increase the community’s supply of
affordable housing. This $36-million
project entailed the acquisition of a
dilapidated mobile home park with 92
homes, relocation of the 398 residents,
site demolition and clearance,
construction, and retention of a non-
profit management company.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
LLC for development of a boutique hotel, resort hotel, casitas units, resort retail, and a black box
theater. A public golf course has been completed and the Agency and LDD SilverRock, LLC are
currently revising the DDA to accommodate present lodging market conditions. The resort is located in
Project No. 1.
Appendix 2 contains a summary of every redevelopment project the Agency has implemented since
establishing the Redevelopment Plans.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
SECTION II: REDEVELOPMENT IMPLEMENTATION PLAN
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
REDEVELOPMENT PLAN GOALS
Community Reinvestment and Revitalization
The Redevelopment Plans for the Project Areas establish a variety of goals for redevelopment of the
Project Areas; these goals frame the near term redevelopment objectives for the Implementation Plan.
The goals are outlined below.
Project No. 1
Eliminate Blight. Eliminate and prevent the spread of conditions of blight
including: underutilized properties and deteriorating buildings, incompatible and
uneconomic land uses, deficient infrastructure and facilities, obsolete structures,
and other economic deficiencies in order to create a more favorable environment for
commercial, office, residential, and recreational development.
Improve Public Infrastructure and Facilities. Improve public facilities and public
infrastructure. Improve inadequate drainage infrastructure. Improve and/or provide
electric, gas, telephone, and wastewater infrastructure to both developed and
undeveloped properties.
Expand Commercial Base. Expand the Project Area’s Commercial Base by
working with property owners along commercial corridors to enhance the business
environment, and encouraging private investment through capital improvements
and public facilities.
Promote Job Growth. Promote local job opportunities by facilitating private
investment in commercial areas.
Ensure Quality Design and Development. Implement design and use standards
to assure high aesthetic and environmental quality, and provide unity and integrity
to development within the Project Area.
Remove Impediments to Development. Address parcels of property that are of
irregular form and shape, are inadequately sized for proper usefulness and
development, and/or are held in multiple ownership. Remove impediments to land
disposition and development, and/or are held in multiple ownership. Recycle and/or
develop underutilized parcels to accommodate higher and better economic uses
while enhancing the City’s financial resources.
Coordinate Stakeholder Participation. Encourage the cooperation and
participation of residents, businesses, business persons, public agencies, and
community organizations in redevelopment/revitalization initiatives.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Housing for All. Promote the rehabilitation of existing housing stock. Increase,
improve, and preserve the supply of housing affordable to very low, low and
moderate income households.
Project No. 2
Eliminate Blight. Remedy, remove, and prevent physical blight and economic
obsolescence through implementation of the Redevelopment Plan.
Improve Public Infrastructure and Facilities. Improve and/or provide electric, gas,
telephone, water, and wastewater facilities to both developed and subdivided
undeveloped properties within the Project Area. Address inadequate street
improvements and roads that vary in width and degree of improvement as they cross
the Project Area. Alleviate inadequate drainage improvements that constrain the
development of various parcels in the Project Area, the cost of which cannot be borne
by private enterprise acting alone.
Expand Commercial Base. Expand the commercial base of the community.
Provide for the expansion, renovation and relocation of businesses within the Project
Area to enhance their economic viability. Provide opportunities and mechanisms to
increase sales tax, business license tax and other revenues to the City. Remedy
depreciating property values and impaired investments.
Ensure Quality Design and Development. Upgrade the general aesthetics of the
commercial enterprises to improve their economic viability.
Remove Impediments to Development. Recycle and/or develop underutilized
parcels to accommodate higher and better economic uses, improving the financial
viability of the City. Address parcels of property that are inadequately sized for proper
usefulness and development and which are held in divided and widely scattered
ownerships.
Housing for All. Promote the rehabilitation of existing housing stock. Increase,
improve, and preserve the supply of housing affordable to very low, low and
moderate income households.
Redevelopment Work Program
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
REDEVELOPMENT WORK PROGRAM
Five Year Work Program for Reinvestment & Revitalization in the Project Areas
The table below describes the proposed redevelopment projects and programs to be implemented by the Agency during the next five
years. It lists the goals and strategies that would be achieved, projected timeframe, estimated costs2, and the blighting conditions
that would be alleviated.
Proposed Non-Housing Projects and Programs TABLE 2
Project/Description Goals Achieved Projected
Timeframe
Agency Cost
Estimate
Blighting Conditions
Alleviated
Project No. 1
Capital Improvement Projects: The Agency funds capital improvement projects to address the blighting condition of inadequate public
improvements. The following projects are proposed for the Implementation Plan period. Additional projects may be pursued as nee ds and
funding opportunities arise.
Washington/I-10 Interchange: This
project includes widening of Washington
Street, replacing the Washington Street
bridges over the railroad tracks and
Interstate, widening the realignment of
Varner Road, removing and replacing
westbound ramps, widening the existing
eastbound ramps, and signalizing the
ramp terminal and the Varner Road
Washington Street intersection.
2009-10 to
2012-13 $178,311 Inadequate public
improvements
2 Costs are subject to change, and completion of these projects may require future action by the Agency.
Redevelopment Work Program
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Non-Housing Projects and Programs TABLE 2
Project/Description Goals Achieved Projected
Timeframe
Agency Cost
Estimate
Blighting Conditions
Alleviated
Sidewalks – Various Locations: This
annual project provides for the
construction of sidewalks at various
locations. The new sidewalk sections are
selected from a list of street segments
with heavy pedestrian activity and limited
opportunity for developer installed
improvements.
2009-10 to
2013-14 $100,000 Inadequate public
improvements
Handicap Ramps: This annual project
provides for the construction of handicap
access ramps at various locations. New
handicap ramps are selected from a list
of street segments which are prioritized
based on pedestrian volume.
2009-10 to
2013-14 $41,344 Inadequate public
improvements
Sports Complex Improvements:
Improvements will be made to the sports
complex.
2009-10 $77,221 Inadequate public
improvements
SilverRock Phase 2 Infrastructure: In
order to accommodate the Clubhouse,
second golf course, and the resort hotel
and retail development envisioned in the
SilverRock Specific Plan, the Agency will
construct the wet and dry utility systems,
and additional site drainage
infrastructure, to facilitate this
development program. The construction
schedule will correspond with the
development of the Clubhouse and the
second golf course.
2009-10 to
2012-13 $21,296,459 Inadequate public
improvements
Redevelopment Work Program
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Non-Housing Projects and Programs TABLE 2
Project/Description Goals Achieved Projected
Timeframe
Agency Cost
Estimate
Blighting Conditions
Alleviated
SilverRock Entry Feature Road: This
improvement is designated for the
eastern entry to the resort hotel and
resort village from Jefferson Street. This
entry will also provide secondary access
to the Clubhouse. The construction
schedule will correspond with the
development of the second golf course.
2009-10 to
2012-13 $5,436,406 Inadequate public
improvements
SilverRock Clubhouse: The project
includes the preparation of the plans
specifications and engineer’s estimate
(PS&E) and the construction of the
SilverRock Resort Clubhouse.
2009-10 to
2012-13 $23,347,164 Inadequate public
improvements
SilverRock Phase II at Golf Course:
This project includes the preparation of
the plans specifications and engineer’s
estimate (PS&E) and the construction of
the second 18 hole municipal golf course
at the SilverRock Resort.
2009-10 to
2012-13 $20,637,231 Inadequate public
improvements
SilverRock Canal: The proposed
improvements will relocate and possibly
underground the Coachella Canal that
crosses the SilverRock Resort property in
a new alignment.
2009-10 to
2012-13 $6,000,000 Inadequate public
improvements
Redevelopment Work Program
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Economic Development
Property Acquisition: One of the
impediments to development in the
Village has been land values that far
exceed the commercial and office rents
the market can support. With the current
reduction in land values, the Agency is
considering strategic land acquisitions
that would subsequently facilitate mixed-
use development, library and senior
center expansion/parking, and affordable
housing development.
2009-10 to
2012-13 $4,500,000
Expanding the
community’s
commercial base
Redevelopment Work Program
21
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Project No. 2
Capital Improvement Projects: The Agency funds capital improvement projects to address the blighting condition of inadequate public
improvements. The following projects are proposed for the Implementation Plan period. Additional projects may be pursued as needs and
funding opportunities arise.
‘A’ Street Extension (Dune Palms to
Komar Center): The proposed
improvements will construct a new
roadway approximately 1,600 feet long,
connecting Dune Palms Road near
Sam’s Club with the Komar Center
(Costco). The improvements will include
pavement, curb, gutter, sidewalk, median
curb and will require modifying existing
driveways.
2009-10 to
2012-13 $500,835 Inadequate public
improvements
Hwy 111 Utility Undergrounding: The
proposed improvements will place
underground, electric power lines
currently on overhead power poles. The
improvements are located on the south
side of Highway 111 on Agency-owned
property between Dune Palms Road and
Komar Center. The project will replace
five above-ground power poles.
2009-10 $141,488 Inadequate public
improvements
Jefferson Street Parkway Landscaping
(Vista Grande to Westward Ho): The
proposed improvements include the
installation of parkway landscape and
irrigation, perimeter walls or fencing, and
minor grading on the east and west side
of Jefferson Street between Vista Grande
and W estward Ho Drive.
2009-10 $2,161,048 Inadequate public
improvements
Redevelopment Work Program
22
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Drainage Improvements (NE Simon &
Washington): The proposed
improvements will install drainage
improvements at the northeast corner of
Washington Street and Simon Drive. The
proposed improvements will handle storm
water from the Garff Chevrolet parcel that
is currently discharging to off -site
development.
2009-10 $500,000 Inadequate public
improvements
Economic Development
Auto Dealer Facility
Realignment/Rehabilitation: The City’s
auto dealers are located in Project No. 2.
One dealer has been in the community
since the early 1980’s and the other
dealers since the late 1990’s. The
restructuring of the motorcar
manufacturers has resulted the closing of
one dealership, and the need for the
remaining dealerships to either relocate
to smaller, more efficient facilities or to
remodel existing facilities. Finally, new
auto dealers that are not within La
Quinta’s market area are seeking new
point opportunities. There are previously
urbanized sites in Project No. 2 that could
accommodate these new dealers. The
Agency will be exploring facility
rehabilitation opportunities, the need to
assist with repositioning existing
dealerships to new locations that
previously housed auto dealers, and to
sell property to facilitate new dealer
development.
2009-10 to
2013-14
$4,000,000 Expand commercial
base and remove
impediments to
development.
23
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
REDEVELOPMENT (NON-HOUSING) CASH FLOW
Five Year Work Plan Budget
Tables 3 and 4 present the Agency’s five-year projected cash flow for non-housing
redevelopment activities during the 2009-10 through 2013-14 planning period. The tax
increment revenue figures are the anticipated gross tax increment revenue for Project No. 1 and
Project No. 2, before payments for debt service, taxing agencies, and other obligations are
made. The projections are based upon a preliminary 2009-10 assessed value as reported by
the County Auditor Controller, and assume a -0.237 percent decline in secured assessed values
in 2010-11, no growth in secured assessed values in 2011-12, and a two percent growth rate in
secured assessed values thereafter. The projections also assume a zero percent growth rate in
unsecured values and do not take new development into account. The figures presented are
subject to change due to fluctuations in the local economy and changes to the proposed State
take of redevelopment funds. The County may reassess property values in the Project Areas
over the next several months to be lower, which would lead to a decline in tax increment. The
Agency will be closely monitoring the local economy over the next five year period to take
market conditions into account when planning and implementing its projects and programs.
Due to the State’s effort to take redevelopment funds to balance the State Budget, the Agency
may be required to make SERAF payments during the planning period. Therefore, the following
projections assume a $23,582,367 SERAF payment in Fiscal Year 2009-10, and $4,850,687 in
Fiscal Year 2010-11. The Agency has secured a $10.0 million loan from the City of La Quinta to
fund a portion of the $23,582,367 2009-10 SERAF payment; the remaining $13,582,367 will be
funded from reallocating capital projects and debt service funds, and available 2010-11 non-
housing tax increment revenue. The Agency anticipates funding the 2010-11 payment from
non-Housing Fund tax increment revenue. If the California Redevelopment Association’s
litigation to prohibit the SERAF shift is successful, then these funds may be available to fund
additional redevelopment initiatives, or to move forward projects and programs identified in this
Implementation Plan that otherwise may be delayed.
24
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Five Year Cash Flow Forecast - Project No. 1 Debt Service & Capital Projects Funds TABLE 3
FISCAL YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 5-Year
Total
Beginning Balance (July 1)$60,113,834 $50,698,267 $31,514,223 $21,448,528 $12,691,103
REVENUES
Tax Increment 54,169,600 55,469,671 57,133,761 58,847,774 60,613,208
General Fund Loan Proceeds 10,000,000
TOTAL REVENUES 64,169,600 55,469,671 57,133,761 58,847,774 60,613,208 $296,234,014
TOTAL FUNDS AVAILABLE $124,283,434 $106,167,938 $88,647,984 $80,296,302 $73,304,311
EXPENDITURES
Housing Set Aside 10,833,900 10,833,900 11,158,917 11,493,685 11,838,496 $56,158,898
Taxing Agency Payments 20,632,818 20,599,515 20,615,869 20,618,321 20,620,823 $103,087,345
Bond Debt Service 9,886,421 9,885,959 9,885,720 9,886,679 9,886,756 $49,431,535
City Hall & Contract Payments 757,633 756,625 757,882 770,326 782,703 $3,825,170
General Fund Loan Interest Payments 1,720,000 1,720,000 1,720,000 1,720,000 1,720,000 $8,600,000
SERAF Payments 23,582,367 4,850,687 $28,433,054
Administration/Operating Expenses 2,648,961 2,701,940 2,755,979 2,811,099 2,867,321 $13,785,299
Programs/Projects 3,523,068 23,305,089 20,305,089 20,305,089 18,010,511 $85,448,845
TOTAL EXPENDITURES 73,585,167 74,653,715 67,199,456 67,605,199 65,726,609 $348,770,146
ENDING BALANCE $50,698,267 $31,514,223 $21,448,528 $12,691,103 $7,577,702
Five Year Cash Flow Forecast - Project No. 2 Debt Service & Capital Projects Funds TABLE 4
FISCAL YEAR 2009-10 2010-11 2011-12 2012-13 2013-14 5-Year
Total
Beginning Balance (July 1)$20,274,630 $17,264,510 $14,875,415 $15,890,789 $17,406,574
REVENUES
Tax Increment 28,339,800 28,339,800 29,189,994 30,065,694 31,710,887
TOTAL REVENUES $28,339,800 $28,339,800 $29,189,994 $30,065,694 $31,710,887 $147,646,175
TOTAL FUNDS AVAILABLE $48,614,430 $45,604,310 $44,065,409 $45,956,483 $49,117,461
EXPENDITURES
Housing Set Aside 5,668,000 5,668,000 5,838,040 6,013,181 6,193,576 $29,380,797
Taxing Agency Payments 18,208,992 18,165,820 18,215,820 18,579,284 18,950,018 $92,119,934
Non-Housing Bond Debt Service 419,550 418,272 416,738 419,819 417,516 $2,091,895
City Hall & Contract Payments 306,240 305,814 306,117 312,265 318,528 $1,548,964
General Fund Loan Interest Payments 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Hwy 111 General Fund Loan Payment 700,000 700,000 700,000 700,000 700,000 $3,500,000
Administration/Operating Expenses 1,319,393 1,345,781 1,372,696 1,400,150 1,428,153 $6,866,174
Programs/Projects 3,727,745 3,125,209 325,209 125,209 - $7,303,371
TOTAL EXPENDITURES 31,349,920 30,728,895 28,174,620 28,549,909 29,007,791 $147,811,135
ENDING BALANCE $17,264,510 $14,875,415 $15,890,789 $17,406,574 $20,109,670
25
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
SECTION III: HOUSING COMPLIANCE PLAN UPDATE
26
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
INTRODUCTION
Overview of the Housing Compliance Plan
The CRL requires agencies to adopt an affordable housing compliance plan that identifies how the
redevelopment agency will meet its affordable housing obligations. The compliance plan must be
consistent with the jurisdiction's housing element and must also be reviewed and updated at least every
five years in conjunction with the cyclical preparation of the housing element or the redevelopment
agency’s five year implementation plan.
This section presents the Housing Compliance Plan of the Implementation Plan; it reviews the La
Quinta Redevelopment Agency’s affordable housing production achievements for the past five years
(Fiscal Years 2004-05 through 2008-09) and outlines the anticipated affordable housing programs and
projects for the remaining five years of the current ten-year planning period (Fiscal Years 2004-05 to
2013-14) (“Compliance Period”).
The Agency is required to allocate 20 percent of the tax increment revenue it receives from the Project
Areas to increase and improve housing affordable to very low, low, and moderate income households.
The Housing Fund has been established for this revenue. The Agency has the authority to underwrite
affordable housing preservation or development either inside or outside the Project Areas. Further, the
Agency is required to insure that at least 15 percent of all privately developed or substantially
rehabilitated dwellings in the Project Areas are affordable to very low, low and moderate income
households, and not less than 40 percent of these affordable dwellings must be affordable to very low
income households. If the Agency directly develops affordable housing, then at least 50 percent of the
dwellings must be affordable to very low, low and moderate income households, and at least 50
percent of those must be affordable to very low income households. In order to ensure each unit’s
continued affordability, the Agency must secure 45-year covenants on single family homes, and 55-
year covenants on multi-family dwellings.
Redevelopment agencies use compliance plans to establish ten-year objectives to achieve compliance
with the CRL’s affordable housing mandates. The Agency’s affordable housing programs generally fall
into three categories:
Housing Production – The Agency must ensure that a percentage of the housing units constructed
or substantially rehabilitated by the Agency or the private sector within the Project Areas are
affordable to very low, low and moderate income households.
Replacement Housing – The Agency is obligated to replace any housing units destroyed or removed
as a result of a redevelopment project within four years after the destruction or removal.
Expenditures by Household Types – The Agency must comply with certain proportionality
requirements in their expenditure of Housing Funds over a ten-year period to ensure that such funds
are spent on housing affordable to very low income households, low income households, and
housing for residents under the age of 65 in proportion to their representation in the community.
27
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
AFFORDABLE HOUSING WORK PROGRAM
Table 5 presents the Agency’s proposed programs and projects for affordable housing production in
both Project Areas, including the goals that each project would achieve, the projected implementation
timeframe, and the estimated Agency investment3. Additional expenditures may be made on these
projects as the Agency budget permits. Expenditures that will be made after the five year
Implementation Plan period are not shown. Additional projects, not listed, may be implemented over
the next five years as opportunities and the Agency budget permits.
Proposed Affordable Housing Projects and Programs TABLE 5
Project/Description Goals Achieved Projected
Timeframe
Anticipated
Expenditure
Washington Street Apartments: The
Agency purchased the Washington Street
Apartments, located at Washington Street and
Hidden River Road, in 2008. The property’s
72 units are currently restricted to very low
income seniors and special needs residents
pursuant to previous financial assistance f rom
the federal government, acting through the
Farmer’s Home Administration, United States
Department of Agriculture. The Agency plans
to substantially rehabilitate the units and
record additional affordability covenants in
compliance with the CRL. The Agency also
plans to develop a new multifamily housing
complex on an adjacent vacant lot with
approximately 83 low income units. Though
currently outside the Project Areas, an
amendment is underway to add the properties
to Project No. 2.
2009-10 to
2013-14 $18,200,000
3 Costs are subject to change, and completion of these projects may require future action by the Agency.
28
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Affordable Housing Projects and Programs TABLE 5
Project/Description Goals Achieved Projected
Timeframe
Anticipated
Expenditure
Dune Palms/Highway 111: The Agency
purchased a 19.5 acre site in 2007 with the
goal of facilitating commercial development on
9.0 acres fronting Highway 111, and up to 180,
affordable multi-family dwellings on the rear
9.0 acres. The remaining land area will be
developed with a road that will serve the
commercial and residential components, and
the adjoining Costco Center and Desert Sands
Unified School District corporation yard. The
City and Agency are currently conducting the
environmental review and entitlement
processes; the developer, the Shovlin
Companies, is currently designing the multi-
family housing component. The Agency
anticipates concluding an affordable housing
agreement by the second quarter of 2010.
Project construction will be dependent upon
securing 4 percent tax credits.
This project will result in 36 very low and 144
low income units in Project No. 2.
2009-10 to
2013-14
$27,250,000
CentrePointe: The Agency has an affordable
housing agreement that requires this 9.45 acre
site to be developed with 40 moderate income
single family units. The developer has not
been able to secure financing and is currently
generating alternative affordable housing
development proposals. The Agency
anticipates receiving these proposals from the
developer during the first quarter of 2010, and
will then evaluate their financial feasibility. If a
viable financing option is identified, the Agency
will proceed to renegotiate the affordable
housing agreement to accommodate the new
housing configuration. This property is located
in Project No. 2
2009-10 to
2013-14
To be
determined
29
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Affordable Housing Projects and Programs TABLE 5
Project/Description Goals Achieved Projected
Timeframe
Anticipated
Expenditure
Dune Palms/Westward Ho: In January 2007
the Agency started acquiring 6 properties
located southeast of the intersection of Dune
Palms Road and Westward Ho. These
properties were improved with older,
dilapidated single family homes that were
occupied by upper income households. To
date, the Agency has acquired 5 of the 6
properties; the Agency anticipates purchasing
the 6th property in January 2010. Site
planning is underway to locate 60 single family
dwellings on this 5.10 acre site; the dwellings
would be sold or rented to low and moderate
income family households. The Agency is
exploring the feasibility of designing this
development to accommodate special needs
households. This property is located in Project
No. 2.
2009-10 to
2013-14 $8,150,000
The Village Live-Work Housing: The
Agency purchased this 35,000 square foot
parcel in 2007 and is currently preparing site
plans to evaluate the feasibility of developing
32 loft dwellings. It is also exploring
expanding this site to include the adjoining
15,000 square foot parcel. The goal is to
develop live-work dwellings that would be
affordable to moderate income households.
This site is located in Project No. 1.
2009-10 to
2013-14 $4,350,000
30
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Affordable Housing Projects and Programs TABLE 5
Project/Description Goals Achieved Projected
Timeframe
Anticipated
Expenditure
Foreclosed Home Purchase and
Rehabilitation Program: The recession has
resulted in increasing numbers of bank -owned
units in the Project Areas. In October 2009,
the Agency directed staff to purchase
foreclosed single family dwellings that are
primarily located in Project No. 1. The Agency
will retain local contractors to substantially
rehabilitate these dwellings, and will
subsequently sell or rent the substantially
rehabilitated dwellings to low or moderate
income family households. If the dwellings are
sold, the Agency will provide silent second
trust deed mortgage loans to insure affordable
housing costs. If market conditions limit
property disposition to initially renting the
dwellings, the dwellings will be transferred to
the City’s Housing Authority and rented to low
and moderate income households.
Approximately five homes may be rehabilitated
through this program.
2009-10 to
2013-14 $3,200,000
La Quinta Rental Housing Program
Landscape Improvements: The Agency
purchased dilapidated single family homes in
Project No. 1; 25 of the original 50 homes
remain in the Agency’s inventory. In order to
receive housing credit, the Agency has been
substantially rehabilitating these units and then
selling them to very low and low income family
households. As part of this rehabilitation
effort, the Agency is installing new landscape
materials which will meet or exceed the City’s
drought tolerant planting palette.
2009-10 $40,000
31
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proposed Affordable Housing Projects and Programs TABLE 5
Project/Description Goals Achieved Projected
Timeframe
Anticipated
Expenditure
Habitat for Humanity: Habitat for Humanity
owns two vacant lots in Project No. 1.
Negotiations are underway to structure an
affordable housing agreement to construct two
single family homes that would be sold to very
low income households. The Agency would
provide funding to build the units; the Agency’s
position would be secured via a first trust deed
mortgage. If the first two-unit phase is
successful, the Agency may retain Habitat to
substantially rehabilitate one or more of the La
Quinta Rental Housing Program homes, and
develop additional lots in Project No. 1 with
single family dwellings.
2009-10 to
2013-14 $500,000
Land Acquisition: In order achieve its
housing production mandate, the Agency will
continue to seek land acquisition opportunities
in the Project Areas. Declining vacant land
values and abandoned housing developments
are generating new properties within the
residential and commercial districts that may
accommodate multi-family and mixed-use
affordable housing.
2009-10 to
2013-14 $22,000,000
32
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
AFFORDABLE HOUSING COMPLIANCE
Blueprint for Agency Housing Activities
The Housing Compliance Plan serves as a blueprint for current and future Agency activities within the
Project Areas and outlines how the Agency will meet its very low, low, and moderate income housing
responsibilities and eliminate blight. This Housing Compliance Plan presents a summary of the
Agency’s inclusionary and replacement housing programs as mandated by Sections 33413(b)(4) and
33490(a)(2) and (3) of the CRL. Specifically, it presents a forecast of the number of affordable housing
units that may be required over the ten-year Compliance Period, and assesses the Agency’s plans to
facilitate the creation of the required number of affordable housing units within this timeframe.
Adoption of a Housing Compliance Plan does not constitute approval of any specific project, program,
or expenditure; and it does not change the need to obtain any required approval of a specific program,
project, or expenditure from community or the Agency. The Housing Compliance Plan is a general
statement of direction rather than an unalterable course of action. As such, in order to effectuate its
purposes due to unknown circumstances or new opportunities that arise from time to time, the Agency
may amend the Housing Compliance Plan during the five-year term of the Implementation Plan at any
point, including but not limited to the mid-term opportunity as required by the CRL.
HOUSING PRODUCTION
Since 1976, redevelopment agencies have been required to assure that at least 30 percent of all new
and substantially rehabilitated units developed by an agency are available at affordable costs to
households of very low, low, or moderate income. Of this 30 percent, not less than 50 percent are
required to be available at affordable costs to very low income households. Further, for all units
developed in the project area by entities other than an agency, the CRL requires that at least 15
percent of all new and substantially rehabilitated dwelling units within the project area be made
available at affordable costs to low or moderate income households. Of these, not less than 40 percent
of the dwelling units are required to be available at affordable costs to very low income households.
These requirements are applicable to housing units on an aggregated basis, and not on a project-by-
project basis to each dwelling unit created or substantially rehabilitated unless so required by an
agency. Appendix 3 provides a glossary of terms related to affordable housing covenants, affordability
limits, and inclusionary unit satisfaction.
The Inclusionary Housing Obligation table on the following page summarizes the Agency’s actual and
estimated production requirements over various time periods as required by the CRL. To estimate the
number of housing units that need to be affordable to very low, low, and moderate income households,
the Agency estimated the total number units that will be constructed or substantially rehabilitated in the
Project Areas and applied the formulas outlined in the CRL. The following inclusionary housing
analysis takes into account all residential construction or substantial rehabilitation that occurred within
the Project Areas since their adoption to determine affordable housing production needs, and includes
projections for the number of additional dwelling units to be constructed or substantially rehabilitated
during the Compliance Period, the next ten years, and over the life of the Redevelopment Plans.
33
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Inclusionary Housing Obligation TABLE 6
Time Period
Total
Affordable
Units
Required
Very Low
Income
Units
Project
No. 1
Project
No. 2 Total Project
No. 1
Project
No. 2 Total
Adoption through 1993-94 (Actual)
Total Units1 3,824 904 4,728 0 0 0 709 284
1994-95 through 2003-04 (Actual)
Total Units1 2,568 3,852 6,420 963 385
Compliance Period
2004-05 through 2008-09 (Actual)
Total Units1 910 970 1,880 0 80 80 306 125
2009-10 through 2013-14 (Projected)
Total Units2 500 451 951 0 0 0 143 57
Next Compliance Period (First Five Years)
2014-15 through 2018-19 (Projected)
Total Units3 42 120 162 0 0 0 24 10
Remaining Plan Duration
2019-20 through 2024/2030 (Projected)
Total Units4 942 140 1,082 0 0 0 162 65
Total Redevelopment Plan Duration
Total Units5 8,786 6,437 15,223 0 80 80 2,307 925
1 Units built or substantially rehabilitated in the Project Areas as reported by the La Quinta Planning Department.
2 Units predicted based on entitled vacant land.
3 Units predicted based on potential building activity on unentitled vacant land.
4 Units predicted based on potential build out on vacant land zoned for residential use.
Note: Numbers may not appear to add correctly due to rounded decimals
Privately Developed
Units Agency Developed Units
5 The total number of units anticipated to built in the Project Areas during the duration of the Redevelopment Plans is greater than
what was predicted when the Third Implementation Plan was adopted in 2005. This is due to a land use change on several
commercial parcels to residential uses and a development program that was revised to build condo units instead of hotel units.
As Table 6 shows, residential development projected throughout the duration of the Redevelopment
Plans is estimated to generate a need for 2,307 affordable income restricted units, including 925 very
low income units. The inclusionary housing obligation throughout the remaining life of the
Redevelopment Plans is estimated based on the potential build out of land zoned for residential use in
the Project Areas. The potential build out of the Project Areas has increased since the last
Implementation Plan was adopted in 2005, resulting in a higher inclusionary housing obligation. This is
due to a land use designation revision that changed several commercial parcels to residential uses, and
a development program that was altered to build condominium units instead of hotel units.
Table 7 shows the number of affordable housing units the Agency has produced from the adoption of
the Redevelopment Plans through Fiscal Year 2008-09, as well as the number of affordable units the
Agency anticipates to produce over the next five years, through Fiscal Year 2013-14. The table also
34
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
shows the number of units the Agency will need to produce from Fiscal Year 2014-15 through the
remaining life of the Redevelopment Plans in order to meet its predicted inclusionary housing
obligation.
35
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Inclusionary Housing Production TABLE 7
Time Period
Total Very Low
Prior to 2004
Adoption through 1993-94 (Actual)0 0
1994-95 through 2003-04 (Actual)552 259
Seasons 91 45
Stockman 11 8
Williams 16 6
Cove Rental Housing (Sold & Unsold)50 44
CVHC - Cove Homes 7 5
Building Horizons 16 0
Agency Acquisition/Rehabilitation 1 0
Second Trust Deed Program 101 0
Mira Flores Single Family 23 0
Residential Rehabilitation Program 4 1
MiraFlores Multifamily 118 70
Aventine 20 0
Mountain View 14 0
Hadley Villas 80 80
Compliance Period
2004-05 through 2008-09 (Actual)1 500 299
Building Horizons 3 1
Second Trust Deed Program 48 1
Residential Rehabilitation Program 2 2
Watercolors 149 0
Vista Dunes 80 79
CVHC Wolff Waters 218 216
2009-10 through 2013-14 (Projected)475 111
Washington Street3 156 73
DunePalms/Highway 1113 180 36
CentrePointe 40 0
Dune Palms/Westward Ho3 60 0
The Village Live-Work Housing 3 32 0
Foreclosed Home Rehabilitation 5 0
Habitat for Humanity 2 2
Next Compliance Period (First Five Years)
2014-15 through 2018-19 (Projected)2 400 130
Remaining Plan Duration
2019-20 through 2024/2030 2 380 126
Total Redevelopment Plan Duration
1983/1989 to 2024/2030 2,307 925
1 Does not include units from the Silverhawk multifamily development.
Covenanted units were lost due to foreclosure.
2 Target housing production figures required to meet production requirements.
3 Properties owned and/or controlled by the City
Note: Numbers may not appear to add correctly due to rounded decimals.
Affordable Units
Built or
Covenanted
36
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Table 8 summarizes data from Tables 6 and 7 showing the number of units required and produced by
time period. It demonstrates how the Agency plans to meet its inclusionary housing obligation by the
time the Redevelopment Plans expire.
Inclusionary Housing Fulfillment TABLE 8
Time Period Total Very
Low
Prior to 2004
Total Units Required (Adoption through 2003-04)1,672 669
Total Units Produced (Adoption through 2003-04)552 259
Remaining Need as of June 30, 2004 1,120 410
Compliance Period
Total Units Required (2004-05 through 2013-14)449 182
Total Cumulative Units Required (Adoption through 2013-14)1 1,569 592
Total Units Produced (2004-05 through 2013-14)975 410
Remaining Need as of June 30, 2014 594 182
Next Compliance Period (First Five Years)
Total Units Required (2014-15 through 2018-19)24 10
Total Cumulative Units Required (Adoption through 2018-19)1 618 191
Total Units Produced (2014-15 through 2018-19)400 130
Remaining Need as of June 30, 2019 218 61
Remaining Plan Duration
Total Units Required (2019-20 through 2024/2030)162 65
Total Cumulative Units Required (Adoption through 2024/2030)1 380 126
Total Units Produced (2019-20 through 2024/2030)380 126
Remaining Need at End of Plan Duration - -
Total Redevelopment Plan Duration (1983/1989 to 2024/2030)
Total Units Required 2,307 925
Total Units Produced 2,307 925
Remaining Need - -
1 Equals sum of remaining need from prior period plus total units required from current period
Through the remaining effective term of the Redevelopment Plans, the Agency has projected the
number of housing units that will be produced based on historical development trends and the amount
of available land in each of the Project Areas. During the first five years of the next compliance period
(Fiscal Years 2014-15 through 2018-19), the Agency anticipates that development will generate the
need for 24 affordable units, with 10 of such units required to be restricted to very low income
households. Similarly, development that is anticipated to occur from Fiscal Year 2019-20 through the
expiration of the Redevelopment Plans will generate the need for 162 affordable units, with 65 of such
37
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
units required to be restricted to very low income households. Taking into account the anticipated deficit
of affordable units at the end of the current Compliance Period (2013-14), the Agency will endeavor to
produce 780 affordable units, with at least 256 of such units restricted to very low income households,
throughout the remaining terms of the Redevelopment Plans.
REPLACEMENT HOUSING
The CRL requires that whenever housing occupied by low and moderate income households is
destroyed as part of an Agency project, the Agency shall ensure that an equivalent number of
replacement units are constructed or substantially rehabilitated. These units must provide at least the
same number of bedrooms destroyed, and 100 percent of the replacement units must be affordable to
the same income categories (i.e. very low, low, and moderate) as those removed. The Agency
receives a full credit for replacement units created inside or outside the Project Areas. Table 8
summarizes the units that have been demolished and subsequently replaced in the Project Areas.
According to Agency records, no affordable units were destroyed in the Project Areas from the adoption
of the Redevelopment Plans through June 30, 2004. From July 1, 2004, through June 30, 2009,
records show that 92 very low income units were destroyed at the Vista Dunes Mobilehome Park.
These units were replaced by 79 very low income multifamily units at the same site and 216 very low
income multifamily units at the Wolff Waters development, creating a surplus of 203 very low income
units. In all, from adoption of the Redevelopment Plans through June 30, 2009, there were a total of
206 more affordable units produced than were destroyed in the Project Areas.
Summary of Replacement Units v. Demolished Units TABLE 9
Time Period # of Units # of Bedrooms Very Low
Income Units
Low &
Moderate
Income Units
Through 6/30/2004 Demolished 0 0 0 0
Replaced 0 0 0 0
Surplus (Deficit)0 0 0 0
Through 6/30/2009 Demolished 92 193 92 0
Vista Dunes MHP 92 193 92 0
Replaced 298 740 295 3
Vista Dunes Multifamily 80 174 79 1
CVHC Wolff Waters 218 566 216 2
Surplus (Deficit)206 547 203 3
Cumulative Surplus (Deficit)
Through June 30, 2009 206 547 203 3
During the remainder of the Compliance Period, the Agency anticipates that one project will result in the
temporary displacement of affordable housing units in the Project Areas. The Washington Street
Apartments contain 73 very low income housing units that will be substantially rehabilitated. However,
construction will be phased such that residents will be able to move from their existing unit into a new or
rehabilitated unit on the same property and will not be required to leave the property itself.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
HOUSING PROGRAM CASH FLOW ANALYSIS
The Agency’s primary source of funding for housing projects and programs is the annual deposit of 20
percent of its tax increment revenue into the Housing Fund. The CRL requires that these funds be
used to increase, improve, and preserve the community’s supply of housing available, at affordable
housing cost, to persons and families of very low, low, and moderate income. Other sources of
Housing Fund revenues include interest earnings, bond proceeds, loan repayments, and other
miscellaneous revenues. Table 10 presents the Agency’s Housing Fund projected cash flow over the
next five years (Fiscal Years 2009-10 through 2013-14). Projects completed prior to Fiscal Year 2009-
10, including replacement units shown in Table 9, are not included in the funding program presented in
the cash flow.
Five Year Cash Flow Forecast - Housing Fund TABLE 10
Total
1 2 3 4 5 2nd 5 Year
2009-10 2010-11 2011-12 2012-13 2013-14 Period
BEGINNING BALANCE (July 1)$30,816,669 $33,341,383 $26,061,557 $10,396,679 $518,417
REVENUES
Housing Set Aside 16,501,900 16,501,900 16,996,957 17,506,866 18,032,072 $85,539,695
Other Income 1,281,100 1,281,100 792,900 765,700 1,018,200 $5,139,000
TOTAL REVENUES $17,783,000 $17,783,000 $17,789,857 $18,272,566 $19,050,272 $90,678,695
TOTAL AVAILABLE FUNDS $48,599,669 $51,124,383 $43,851,414 $28,669,245 $19,568,689
EXPENDITURES
Debt Service 6,390,291 6,390,333 6,383,502 6,379,595 1,949,472 $27,493,193
General Fund Reimbursement 1,179,905 1,099,403 1,099,403 1,099,403 1,036,762 $5,514,876
Contract/Miscellaneous 798,090 773,090 721,830 721,830 721,830 $3,736,670
Programs/Projects 6,890,000 16,800,000 25,250,000 19,950,000 14,800,000 83,690,000
TOTAL EXPENDITURES $15,258,286 $25,062,826 $33,454,735 $28,150,828 $18,508,064 $120,434,739
ENDING BALANCE $33,341,383 $26,061,557 $10,396,679 $518,417 $1,060,625
Second 5-year Period of 2004/05-2013/14
EXPENDITURES BY HOUSEHOLD TYPES
Effective January 2002, the expenditure of Housing Fund revenues is subject to certain proportionality
requirements. The Agency’s Housing Fund revenue is to be expended in proportion to the community’s
need for very low and low income housing, and in proportion to the low income population under the
age of 65. The Agency is required to meet these proportionality requirements within each 10-year
housing compliance plan period. Since the proportionality requirement was not enacted until 2002, the
law permits that the first period be extended by two years to include expendit ures from 2002 through
the end of the Compliance Period.
The community’s proportionate need for very low and low income housing is based on the Southern
California Association of Government’s (“SCAG”) Regional Housing Needs Allocation (“RHNA”), used
by local government to meet state requirements for affordable housing by category. RHNA mandates
are adjusted from time to time to respond to changing demographics. As a result, the Agency is subject
to RHNA mandates from two different time periods that overlap the Agency’s Compliance Period:
Agency expenditures from Fiscal Years 2001-02 through 2004-05 are subject to the RHNA mandates
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
assigned for 1998 to 2005; Agency expenditures from Fiscal Years 2005-06 through 2013-14 are
subject to RHNA mandates assigned for 2006 to 2014.
The community’s proportional need for age-restricted versus non-age restricted housing is based on
two different sources4. New legal requirements took effect in 2006 that modified the previous limitation
of spending Housing Fund monies on households under the age of 65. Section 33334.4(b) of the CRL
used to require that an agency spend its Housing Fund monies “in at least the same proportion as the
population under age 65 bears to the total population based on the most recent census.” The new
language provides a higher level of specificity to spend “in at least the same proportion as the number
of low income households with a member under age 65 bears to the total number of low income
households of the community as reported in the most recent census.” Thus, Agency expenditures from
Fiscal Years 2001-02 through 2004-05 are subject to the previous age targeting requirement, and
expenditures from Fiscal Years 2005-06 through 2013-14 are subject to the new age targeting
requirement.
Table 11 presents the minimum Housing Fund expenditure thresholds for very low and low income
units, as well as the maximum housing expenditure thresholds for age-restricted units over the two
different time periods discussed above.
Proportional Expenditure Requirement TABLE 11
Very Low (min)178 37%1,065 41%
Low (min)103 22%724 28%
Moderate/Unrestricted (max)196 41%796 31%
477 100%2,585 100%
Non-Age Restricted (min)20,521 87%1,608 73%
Age-Restricted (max)2 3,173 13%595 27%
23,694 100%2,203 100%
1 Southern California Association of Governments Regional Housing Needs Assessment
2 Age-restricted means any housing unit that is not available to all persons regardless of age.
3 Data of low income households with a member under the age of 65 is not readily available from the Census.
The nearest metric for such Census data represents households with a member under the age of 62
(available via the Comprehensive Housing Affordability Strategy at http://socds.huduser.org/chas/index.htm).
Targeting
Requirement
(% of Total)
2001-02 to 2004-05 2005-06 to 2013-14
Income Level
RHNA
Allocation
1998-2005
(Units)1
Targeting
Requirement
(% of Total)
RHNA
Allocation 2006-
2014 (Units)1
Targeting
Requirement
(% of Total)
CHAS
Allocation
(Households)3
Targeting
Requirement
(% of Total)
Age Category
Census
Allocation
(Population)
4 “Age-restricted” means any housing unit that is not available to all persons regardless of age.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Table 12 details the Agency’s Housing Fund expenditures from Fiscal Years 2001-02 through 2004-05
and 2005-06 through 2008-09 and demonstrates that the proportionality requirements are being met. It
also shows the Agency’s proposed expenditures on affordable housing projects from Fiscal Years
2009-10 through 2013-14.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Proportional Expenditure Fulfillment TABLE 12
Project
Housing $ Spent
on Very Low
Inc. Units
Housing $
Spent on Low
Inc. Units
Housing $ Spent
on Moderate Inc.
Units
Housing $
Spent on Age-
Restricted Units
Total Housing
Expenditures
Second Trust Deed 53,673 4,734,124 1,756,071 - 6,543,868
Cove Rental Housing Program 826,429 - - 166,045 826,429
Residential Rehabilitation 25,590 12,795 46,930 37,795 85,316
Assessment/Sewer Subsidy 127,246 55,336 66,294 - 248,877
Building Horizons - 169,500 137,750 - 307,250
Mountain View - - 276,411 - 276,411
Hadley Villas 1,087,000 - - 1,087,000 1,087,000
Miraflores - - 17,438 8,719 17,438
Watercolors - 558,643 3,329,444 3,888,087 3,888,087
Vista Dunes 6,968,893 - 88,214 - 7,057,107
CVHC/Wolff Waters 8,763,853 - 81,147 - 8,845,000
Total 17,852,685 5,530,398 5,799,698 5,187,646 29,182,782
% of Total 61%19%20%18%100%
% Required 37% min.22% min.41% max.13% max.
Second Trust Deed 575,501 638,001 85,500 85,500 1,299,002
Cove Rental Housing Program 322,338 8,712 - - 331,050
Building Horizons 95,525 - 95,525 - 191,050
Watercolors - 2,334,922 6,841,878 9,176,800 9,176,800
Vista Dunes 24,034,341 - 304,232 - 24,338,573
CVHC Wolff Waters 28,519,264 - 264,067 - 28,783,331
Washington St. Prop. Acq.4,220,526 4,798,680 - 4,162,710 9,019,206
Shovlin Property Acquisition 5,989,933 3,993,289 - - 9,983,222
Total 63,757,427 11,773,605 7,591,202 13,425,010 83,122,234
% of Total 77%14%9%16%100%
Washington Street (Senior)8,516,667 9,683,333 - 18,200,000 18,200,000
Dune Palms/Highway 111 5,450,000 21,800,000 - - 27,250,000
CentrePointe Unknown
Dune Palms/Westward Ho - 6,000,000 6,000,000 - 12,000,000
Village Live-Work - - 6,400,000 - 6,400,000
Foreclosed Home Rehab - 4,500,000 - - 4,500,000
Rental Housing Program 40,000 - - - 40,000
Habitat for Humanity 500,000 - - 500,000
Land Acquisition - 22,000,000 - 22,000,000
Total 14,506,667 63,983,333 12,400,000 18,200,000 90,890,000
% of Total 16%70%14%20%100%
Total 78,264,094 75,756,938 19,991,202 31,625,010 174,012,234
% of Total 45%44%11%18%100%
% Required 41% min.28% min.31 % max.27% max.
2001-02 to 2004-05 (Actual)
2005-06 to 2008-09 (Actual)
2009-10 to 2013-14 (Proposed)
2005-06 to 2013-14 (Actual & Proposed)
During the first time period (Fiscal Years 2001-02 through 2004-05), the Agency’s Housing Fund
expenditures exceeded the minimum proportionality requirement for very low income households and
did not exceed the maximum proportionality limit for moderate income households. The Agency under-
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
spent on low income households and over-spent on age-restricted households during the first time
period; however the Agency plans to meet these proportionality requirements by the end of the
Compliance Period. The Agency has projected $90.9 million of Housing Fund expenditures for projects
and programs implemented over the remainder of the Compliance Period (2009-10 through 2013-14).
Future Housing Fund expenditures will be used in the proportions detailed in Table 12 to ensure that
Housing Fund proportional allocation targets are met by the end of the Compliance Period. The
Agency will concentrate on expending its Housing Funds on low income and non -age restricted units to
balance over-spending on age-restricted housing during the first portion of the Compliance Period.
PRIOR FIVE-YEAR HOUSING FUND EXPENDITURES
Units Assisted by Housing Fund
The CRL requires a recap of the number of the projects assisted by the Housing Fund to create
extremely low, very low, and low income units over the past implementation plan period (2004-05
through 2008-09). The CRL also requires a recap of the number, location, level of affordability, and the
amount of Housing Funds expended on units available to families with children. Table 13 summarizes
these statistics:
Housing Fund Expenditures 2004-05 through 2008-09 TABLE 13
Project Very Low
Inc. Units
Housing $
Spent on Very
Low Inc. Units
Low Inc.
Units
Housing $
Spent on Low
Inc. Units
Moderate
Inc. Units
Housing $
Spent on
Moderate Inc.
Units
Total
Affordable
Units
Total Housing
Expenditures
Second Trust Deed 18 676,801 8 300,800 14 526,401 40 1,504,002
Cove Rental Housing Program 37 322,338 1 8,712 0 - 38 331,050
Residential Rehabilitation 0 - 0 - 1 25,000 1 25,000
Building Horizons 1 95,525 0 - 1 95,525 2 191,050
Watercolors 0 - 33 2,032,446 116 7,144,354 149 9,176,800
Silverhawk (Lost Units)0 - 0 - 75 3,500,000 75 3,500,000
Vista Dunes 79 31,003,234 0 - 1 392,446 80 31,102,631
CVHC Wolff Waters 216 37,283,117 0 - 2 345,214 218 37,628,331
Shovlin Property Acquisition 120 5,989,933 80 3,993,289 0 - 200 9,983,222
Washington St. Apts. Prop. Acq.73 4,220,526 83 4,798,680 0 - 156 9,019,206
Total 544 79,591,474$ 205 11,133,927$ 210 12,028,940$ 959 102,461,292$
Age Category Very Low
Inc. Units
Housing $
Spent on Very
Low Inc. Units
Low Inc.
Units
Housing $
Spent on Low
Inc. Units
Moderate
Inc. Units
Housing $
Spent on
Moderate Inc.
Units
Total
Affordable
Units
Total Housing
Expenditures
Units for Seniors 73 4,271,980$ 117 6,846,872$ 131 7,666,155$ 321 18,785,007$
Units for Families 471 75,319,494 88 4,287,055 79 4,362,785 638 83,676,285
Total 544 79,591,474$ 205 11,133,927$ 210 12,028,940$ 959 102,461,292$
Note: The expenditures listed for the Building Horizons, Second Trust Deed, and Residential Rehabilitation programs are inclusive of expenditures made
on units that have been "lost" since the money was spent. Although lost units do not fulfill inclusionary housing obligations, the proportionality of
expenditures does not change. The total units reported in this table does not indicate total units produced to fulfill inclusionary housing obligations.
Housing Units Constructed During Prior Implementation Plan Without Housing Funds
Since 2005, no affordable units featuring long term covenants (affordable units with covenants of at
least 45 years for ownership housing or 55 years for rental housing) have been created with funds other
than the Housing Funds (although several units have been funded with a combination of Housing
Funds and other funds such as State tax credits).
Prior to 2005, 216 affordable units were constructed in the Project Areas without Housing Funds. The
Coachella Valley Housing Coalition built 100 units in the Project Areas that are restricted to low income
households. The last phase of these homes was built in 2000-01. The Villa Cortina tax credit project
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
produced 116 affordable units in Fiscal Year 1996-97. The project has 58 very low income units and 58
low income units.
44
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
APPENDICES
45
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
APPENDIX 1
Summary of Pass Through Agreements
Prior to January 1, 1994, the CRL permitted redevelopment agencies to enter into tax sharing
agreements with affected taxing agencies. The Agency has such agreements that provide for payment
of certain tax increment revenues from the Project Areas; some of these payments are senior to debt
service on bonds, while others are subordinate. The pertinent provisions of these agreements are
summarized below.
PROJECT NO. 1
Coachella Valley Mosquito Abatement District
Pursuant to the August 8, 1984, "Settlement and General Release and Cooperation Agreement"
between the Coachella Valley Mosquito Abatement District, the City of La Quinta and the Agency, the
Mosquito Abatement District is to receive its full 100 percent share of the District's 1.43 percent levy of
the net tax increment (net of Housing Fund deposits). The levy shall not exceed 1.43 percent and it is
currently 1.38 percent. This pass-through obligation is senior to all bond debt service payments.
Coachella Valley Unified School District
On April 2, 1991, the Agency and the Coachella Valley Unified School District entered into the
"Agreement for Cooperation between the Coachella Valley Unified School District and the City of La
Quinta and the La Quinta Redevelopment Agency." This Agreement provides for a f ixed series of
payments to be made by the Agency to the Coachella Valley Unified School District. The remaining
payments are indicated below:
Payment Date Amount Payable
July 1, 2009 $396,875.25
January 1, 2010 $404,812.75
July 1, 2010 $404,812.75
January 1, 2011 $412,909.25
July 1, 2011 $412,909.25
January 1, 2012 $421,167.25
July 1, 2012 $421,167.25
Further, the Agreement provides that these payments shall be subordinated to debt service payments
for the 1985 Tax Allocation Bonds (refunded with the Series 1990 Tax Allocation Bonds) and 1989 Tax
Allocation Bonds, or any refunding bond issues related thereto.
Coachella Valley Water District
The "Agreement for Cooperation between the City of La Quinta, the La Quinta Redevelopment Agency,
and the Coachella Valley Water District" dated November 29, 1983, requires that the Agency pay to the
Coachella Valley Water District ("CVWD") a portion of the CVWD share of the gross tax increment,
equal to 1.2 percent. The Agreement provides that such payments shall not be subordinate to all debt
service other than that previously issued to finance flood control improvements. Therefore, these
payments are not subordinate to bond debt service payments.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
County General Fund, Library, and Fire Districts
Pursuant to the "Replacement Cooperation Agreement Between the County of Riverside and the City of
La Quinta and the La Quinta Redevelopment Agency" executed on December 21, 1993, the County
General Fund, Library District, and Fire District are to receive their full 100 percent share of the gross
(before Housing Fund deposits) tax increment. The County General Fund tax levy within the Project
Area is 24.41 percent, while the Library and Fire District tax levies are 2.74 percent and 5.91 percent,
respectively. In addition to these amounts, the Agency is to pay to the County General Fund the
following annual repayments of previously deferred pass-through identified in the Replacement
Cooperation Agreement as “Amount Owed”:
Fiscal Years Annual Payment
2000-01 through 2002-03 $1,803,705
2002-03 through 2005-06 $2,190,473
The Replacement Cooperation Agreement provides that the payment of County tax increment revenue
is subordinate to debt service for existing Project Area bond debt, and any future bonds issued in
connection with Project No. 1. The Agreement does require the Agency to size new bond issuances in
such a way that sufficient funds are projected to be available to satisfy its obligations to the County
pursuant to the Agreement without subordination. The Agency has retired the remaining “Amount
Owed” to the County from 2001 Bond proceeds.
Desert Community College
The Agency entered into the "Agreement for Cooperation between the Desert Community College
District and the La Quinta Redevelopment Agency" on December 21, 1993. Until Fiscal Year 2005-06,
the Agency retained all of the Desert Community College District's ("DCCD") 7.59 percent share of the
gross tax increment revenue. After reaching this threshold, for a period of ten successive years, the
Agency will pay 20 percent of the DCCD's share to the District. Beginning in the eleventh year following
Fiscal Year 2005-06, the Agency will pay 25 percent of the DCCD share. The Agreement provides that
payments to the District do not constitute an “express pledge” within the meaning of Health and Safety
Code Section 33671.5, and therefore, payments to the District are subordinate to all bond debt service.
Desert Sands Unified School District
On December 21, 1993, the Agency approved an "Agreement for Cooperation between the Desert
Sands Unified School District and the City of La Quinta and the La Quinta Redevelopment Agency."
The Agreement with Desert Sands Unified School District ("DSUSD") requires that the Agency deposit
a portion of the DSUSD's revenues into a capital fund to be used for the purpose of financing various
capital projects that benefit both DSUSD and the Project Area. Between 1994 and 1998, the Agency
deposited the required fixed series payments into the capital fund. A second series of payments to the
capital fund began in Fiscal Year 2005-06, the fiscal year following the fiscal year in which the Agency's
cumulative tax increment revenues from the Project exceeded $300.0 million. During the first ten years
from Fiscal Year 2005-06, the Agency will make an annual deposit equal to 20 percent of the DSUSD's
27.70 percent share. Beginning in the eleventh year and continuing for the Plan's duration, the Agency
will deposit 25 percent of the DSUSD's share of tax increment.
The Agreement provides that payments to the District do not constitute an “express pledge” within the
meaning of Health and Safety Code Section 33671.5, and therefore, payments to the District are
subordinate to all bond debt service.
47
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Statutory Pass Through Payments
The adoption of Ordinance No. 388 in Fiscal Year 2003-04 to eliminate the time limit to incur debt
triggered the need for the Agency to make “statutory pass-through payments” under Health and Safety
Code Section 33607.7 to those taxing agencies with which the Agency does not have a pass-through
agreement. Statutory pass-through payments are made to the following taxing agencies that the
Agency does not have pass-through agreements with (each taxing agency’s respective share of the 1
percent general levy is also shown).
County Superintendent of Schools (4.13 percent)
Coachella Valley Public Cemetery (0.34 percent)
Coachella Recreation and Park (2.09 percent)
Coachella Valley Resource Conservation District (0.04 percent)
City of La Quinta (5.49 percent) (first 25 percent only – see below)
Under Health and Safety Code Section 33607.7, the amount of the statutory pass-through payments is
a portion of the Agency tax increment (after deduction of the portion of tax increment, currently 20
percent, required to be deposited into the Agency’s Housing Fund), based on a series of adjusted base
year assessed valuations. Starting in Fiscal Year 2005-06 and each year thereafter for duration of the
Redevelopment Plan, the amount of the statutory pass-through payments under Health and Safety
Code Section 33607.7 to each of the five above-listed taxing agencies are the sum of (A), (B), and (C)
below:
(A) The taxing agency’s respective share of 25 percent (after deduction of the 20 percent
Housing Fund deposit) of the tax increment received by the Agency based on the
difference between the Project Area No. 1 assessed valuation in such year
compared to the first adjusted based year assessed valuation (i.e., the valuation
existing as of Fiscal Year 2004-05); plus
(B) Starting in the 11th year of payments (i.e., Fiscal Year 2015-16), the payment is
equal to the amount calculated pursuant to (A) above plus the taxing agency’s
respective share of 21 percent (after deduction of the 20 percent Housing Fund
deposit) of the tax increment received by the Agency based on the difference
between Project Area No. 1 assessed valuation in such year compared to a second
adjusted based year assessed valuation which is the assessed valuation as of Year
10 (i.e., Fiscal Year 2014-15); plus
(C) Starting in the 31st year of payments (i.e., Fiscal Year 2035-36), the payment is
equal to amounts calculated pursuant to (A) and (B) above, plus the taxing agency’s
respective share of 14 percent (after deduction of the 20 percent Housing Fund
deposit) of the tax increment received by the Agency based on the difference
between Project Area No. 1 assessed valuation in such year compared to a third
adjusted based year assessed valuation which is the assessed valuation as of Year
30 (i.e., Fiscal Year 2034-35).
These statutory pass-through payments are not subordinated to new bond debt service payments.
48
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
PROJECT NO. 2
Coachella Valley Community College District
This agreement provides that the College District shall receive 50 percent of the tax increment revenue
generated by the College District’s 7.72 percent property tax levy.
Coachella Valley Mosquito and Vector Control District
The agreement provides that the Mosquito and Vector Control District shall receive 100 percent the tax
increment revenue generated by its 1.41 percent property tax levy.
Coachella Valley Recreation and Park District
The agreement provides that the Agency shall retain 100 percent of the tax increment revenue
generated by the Park District’s 2.13 percent property tax levy. This revenue, however, must be
expended on identified park-related capital improvements. Due to the Agency’s expenditure to acquire
land acquisition and make park improvements in Project Area No. 2, the Agency is entitled to retain the
Park District’s tax increment revenue until Fiscal Year 2003-04. After 2003-04, the Agency anticipates
that it will continue to fund park-related projects with the Park District’s share of annual tax increment
revenue.
Coachella Valley Water District
The agreement provides that the Water District shall receive 100 percent of the tax increment revenue
generated by the Water District’s 7.67 percent property tax levy.
County of Riverside
The Agency’s Cooperation Agreement with the County of Riverside provides for full payment of the tax
increment revenue generated by the County General Fund (25.53 percent), Library District (2.80
percent), and Fire District (6.02 percent) property tax levies. Additionally, the Agency is paying the
County $1.4 million over the next 3 years to reimburse the County for tax increment revenue generated
by the County’s General Fund property tax levy the Agency retained during the initial years of the
Redevelopment Plan.
Riverside County Superintendent of Schools
This agreement provides that the Superintendent of Schools shall receive 50 percent of the tax
increment revenue generated by the Superintendent of Schools’ 4.18 percent property tax levy.
Desert Sands Unified School District
The agreement provides that the Agency shall retain 50 percent of the tax increment revenue
generated by the School District’s 37.16 percent property tax levy. The remaining 50 percent is paid to
the School District.
Statutory Pass Through Payments
The adoption of Ordinance No. 404 in Fiscal Year 2003-04 to eliminate the time limit to incur debt
triggered the need for the Agency to make “statutory pass-through payments” under Health and Safety
49
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
Code Section 33607.7 to those taxing agencies with whom the Agency does not have a pass-through
agreement. However, the Agency has a pass-through agreement with all affected taxing agencies thus
is not required to make statutory pass-through payments.
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
APPENDIX 2
Redevelopment Project Inventory
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La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
APPENDIX 3
Glossary of Housing Terms
There are many ways in which the Agency may create inclusionary units that satisfy the requirements
outlined in CRL Section 33413 including new construction of for-sale and rental housing, substantial
rehabilitation, and the purchase of covenants on multifamily rental housing.
New Construction & Substantial Rehabilitation: For-sale (affordable) inclusionary units or inclusionary
multifamily rental housing may be created by assisting new construction or providing financing for
purchasers of new housing, and by substantially rehabilitating such units per the CRL definition. To be
counted toward the Agency inclusionary unit need, for sale units must be covered by a 45 -year
affordability covenant and rental units by a 55-year affordability covenant.
Purchase of Covenants: The Agency may use the Housing Fund to subsidize multifamily units that are
not substantially rehabilitated or newly constructed, by the purchase of an affordability covenant. The
affordability covenants on multifamily units would restrict such units for a period of 55 years. Such units
must be occupied by and affordable to very low and low income households. The Agency may only
meet up to 50 percent of their required inclusionary unit need in this manner. Furthermore, 50 percent
of the covenants purchased must be affordable to very low and low income households. Inclusionary
units secured by the Agency through the purchase of covenants, substantial rehabilitation, and new
construction that are located within the boundaries of the Project Areas can be counted on a one-for-
one basis. If the units are located outside of the Project Areas they only receive one-half (½) credit
(counted on a two-for-one basis). Mutual self-help housing units receive a 1/3 credit towards satisfying
inclusionary unit production requirements.
Mutual Self-help Housing: Mutual self-help housing refers to very low or low income, owner-occupied
housing units where residents have contributed at least 500 hours of work on the unit to ensure safe
and sanitary housing. Mutual self-help housing units must be deed restricted for at least 15 years.
Each housing production unit must have a covenant recorded with the county pursuant to CRL Section
33334.3 in order to be counted.
DURATION OF AFFORDABILITY COVENANTS
Prior to January 1, 2002: for no less than the period of land use controls established in the
redevelopment plan.
After January 1, 2002: for the longest feasible time, but not less than 55 years for rental housing and
45 years for owner occupied housing.
Under Section 33413, rental housing units may be replaced prior to the expiration of the 55 -year period
with equally affordable and comparable rental units in another location within the City if (i) the
replacement units are available for occupancy prior to the displacement of any persons residing in the
subject units and (ii) the comparable replacement units are not developed using moneys in the Housing
Fund.
Under Section 33413, owner-occupied units may be sold prior to the expiration of the 45-year period for
a price in excess of what would otherwise be allowed if the units are subject to an equity sharing
agreement or some other program that protects the Agency’s investment of Housing Fund monies. The
Agency must deposit the excess proceeds in the Housing Fund and within three years from the date of
the sale of the units, spend funds to make affordable an equal number of units at the same income
52
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14
level as the units sold. Only the units originally assisted by the Agency can be counted towards the
Agency’s obligations under Section 33413.
AFFORDABILITY INCOME AND COST LEVELS
Section 50052.5 of Health and Safety Code defines affordable housing cost as:
Extremely Low – Not more than 30 percent of 30 percent of the County median household income.
Very Low - Not more than 30 percent of 50 percent of the County median household income.
Low - Not more than 30 percent of 70 percent (or 30 percent of 60 percent for rental projects) of the
County median household income.
Moderate - Not more than 35 percent of 110 percent (or 30 percent of 120 percent for rental
projects) of the County median household income.
La Quinta Redevelopment Agency Prepared By:
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7000
Adopted January 19, 2010
La Quinta Redevelopment Agency
Five Year Implementation Plan: FY 2009-10 through 2013-14