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RDA Resolution 1990-005a RESOLUTION NO. RA 90-5 RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY ADOPTING A REPLACEMENT HOUSING PLAN FOR LOW OR MODERATE INCOME DWELLING UNITS REMOVED FROM THE LOW AND MODERATE INCOME HOUSING MARKET IN THE LA QUINTA REDEVELOPMENT PROJECT AREA. WHEREAS, the La Quinta Redevelopment Agency the Agency") prepared a draft Replacement Housing Plan for the La Quinta Redevelopment Project Area the Project Area") which is attached as Exhibit A; and WHEREAS, pursuant to Health and Safety Code 33413.5 the Agency has made the draft Replacement Housing Plan Exhibit A) available for review and comment for a reasonable time prior to adoption of the Replacement Housing*Plan by this Resolution; and WHEREAS, the Agency considered all testimony and evidence relevant to the Replacement Housing Plan Exhibit A) offered at the public meeting; and WHEREAS, pursuant to the California Environmental Quality Act CEQA), Public Resources Code Section 21090 and Section 151080 of Guidelines adopted pursuant thereto the Agreement is an activity pursuant to and in furtherance of the Redevelopment Plan for the Project Area; NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment Agency that the draft Replacement Housing Plan for the Project Area Exhibit A) is hereby approved and adopted. APPROVED AND ADOPTED this 19th day of June e, 19 La Quinta Redevelopment Agency * La Quinta Redevelopment Agency APPROVED AS TO FORM: * Stradling, *Rocca, Carlson & Rauth Agency Counsel La Quinta Redevelopment Agency BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 aRESOLUTION NO. RA 90-5 LA QUINTA REDEVELOPMENT AGENCY LA QUINTA REDEVELOPMENT PROJECT AREA REPLACEMENT HO\3SING PLAN I. INTRODUCTION This Replacement Housing Plan addresses the following requirement provided in 33413(a) of the Health and Safety Code 1: whenever dwelling units housing persons and families of low and moderate income are destroyed or removed from the low and moderate income housing market as part of a redevelopment project which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided by the agency, the agency shall, within four 4) years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for rental or sale to persons *nd families of low or moderate income, an equal number of replacement dwellings units within the territorial jurisdiction of the agency. The term replacement dwelling unit means a dwelling unit developed or constructed pursuant to 33413 in replacement of a dwelling unit destroyed or removed from the low and moderate income housing market by an agency and which is decent, safe and sanitary and contains at least the same number of bedrooms and other living areas as the dwelling unit destroyed or removed by the agency. Section 33413.5 requires a redevelopment agency to adopt by resolution a replacement housing plan not less than thirty 30) days prior to the execution of an agreement for acquisition of real property, the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement when such agreements will lead to the destruction or removal of dwelling units from the low and moderate income housing market. The redevelopment activities contemplated by the La Quinta Redevelopment Agency the Agency") for the La Quinta Redevelopment Project Area the Project Area") will result in the destruction of twenty 20) dwelling units presently available and affordable to persons and families of low or moderate income. 1 All statutory references herein are to the Health and Safety Code unless indicated otherwise. BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 aRESOLUTION NO. RA 90-5 II. DESCRIPTION OF DWELLING UNITS TO BE DESTROYED OR REMOVED FROM THE LOW TO MODERATE INCOME HOUSING MARKET Of the twenty 20) dwelling units which will be removed from the low and moderate income housing market, twelve 12) units are currently vacant but have previously been occupied by persons and families of low or moderate income. Of the eight 6) remaining units, four 4) units are currently occupied by very low income households and four 4) units are occupied by lower income households. The term 91persons and families of low or moderate income" includes very low income households, lower income households, and persons and families of low income, persons and families of moderate income, and middle income families. Section 50105 defines very low income households" as persons and families whose incomes do not exceed fifty percent 50%) of area median income adjusted for family si*e. Section 50079.5 defines the term lower income households", as persons and families whose incomes do not exceed eighty percent 80%) of area medium income adjusted for family size. Section 50093 defines persons and families of low income" and persons and families of moderate income" or middle income families" as persons and families whose incomes do not exceed one hundred and twenty percent 120%) of area median income adjusted for family size. III. REPLACEMENT HOUSING REQUIREMENTS Based upon the requirement in 33413(a), the Agency plans to rehabilitate or construct twenty 20) replacement dwelling units within the City of La Quinta. Section 33413(a) requires that when dwelling units are destroyed or removed after September 1, 1969, seventy-five percent 75%) of the replacement dwelling units shall replace dwelling units available at affordable housing cost in the same income level of very low income households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. Section 50052.2 defines affordable housing cost" with respect to lower income households as housing cost not exceeding twenty-five percent 25%) of gross income. Based upon the foregoing, at least sixteen 16) of the twenty 20) units that will be removed or destroyed from the low and moderate income housing market must be available to persons and families in the same income levels as the persons displaced form those units. Because the twelve 12) units which will be destroyed and removed from the low and moderate 06/13/90 0081u/2338/00 2- BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 a I, RESOLUTION NO. RA 90-5 income housing market are currently vacant, the number of these twenty 20) units which were available at affordable housing costs to very low income households, lower income households and persons and families of low and moderate income is unknown. However, an assumption shall be made that fifty percent 50%) of the vacant units are very low income, twenty-five percent 25%) are lower income and twenty-five percent 25%) are low and moderate income. In the remaining eight 8) units, four 4) are very low income and four 4) are lower income. Based upon the above assumptions, to comply with 33413(a) the Agency shall construct or rehabilitate twenty 20) replacement dwelling units which will be available to persons and families of low or moderate income as follows: Very Low Income Units 10 Lower Income Units 7 Low and Moderate Income 3 The definition of the term replacement dwelling unit" requires that such unit contain at least the same number of bedrooms and other living areas as the dwelling units destroyed or removed from the low and moderate income housing market. The twenty 20) units to be removed contain thirty-six 36) bedrooms. The Agency shall provide replacement dwelling units containing at least the minimum number of bedrooms and other living areas as the twenty 20) dwelling units destroyed. Section 33413(b) requires that at least thirty percent 30%) of all new or rehabilitated dwelling units developed by the Agency shall be available at affordable housing cost to persons and families of low or moderate income. Of these low or moderate income units, fifty percent 50%) must be available at affordable housing cost to and occupied by, very low income households. The Agency shall satisfy these requirements by making twenty 20) units available to persons and families of low and moderate income of which ten 10) units will be available to very low income households. iv. REPLACEMENT HOUSING PLAN APPROACH A redevelopment agency may construct, rehabilitate, acquire or cause to be constructed, rehabilitated or acquired for subsequent resale, units which will serve as affordable dwelling units for persons and families of low or moderate income. Pursuant to 33413(e), a redevelopment agency is not authorized to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. The Agency plans to meet its replacement housing requirements pursuant to 33413(a) through one or more of the * following programs: 06/13/90 0081u/2338/00 3- BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 a L. RESOLUTION NO. RA 90-5 A Development of Low-Moderate Income Rental Complex The Agency will acquire and/or assemble a suitable site located within the community for the construction of a rental project, which will include units affordable to persons and families of low or moderate income. The affordable units may be acquired and/or assembled to fulfill the particular housing needs of low income elderly or disabled persons and families. The Agency will seek a developer for profit or non- profit) to assist in the construction of the rental complex. Agency assistance for the project may be in the form of a land writedown, preconstruction and/or construction loans, and/or ongoing subsidies. B. Multifamily Acquisition/Rehabilitation Program The Agency shall acquire and rehabilitate a substandard multifamily development for resale to a nonprofit developer. In exchange for selling the development to the developer at a below market price, the developer shall operate and maintain the units, make them available at affordable rents to persons and families of low or moderate income and shall record covenants to the extent required by 33334.3(e). The Agency may advertise for proposals from interested parties who presently control substandard multifamily developments. Alternately, the Agency may acquire substandard multifamily developments as they become available in the housing market and then seek nonprofit developers to assist in the rehabilitation of these developments, or rehabilitate the developments for subsequent resale to nonprofit developers. C. Self-Help Housing Program*am The Agency shall coordinate with the Coachella Valley Housing Coalition, Habitat for Humanity, or a similar organization to implement a program which offers very low income households and lower income households the opportunity to build their own homes. Construction of homes by participating households will substantially reduce the cost of these homes, thereby making homes more affordable to participating households. The Agency may provide assistance by acquiring a suitable building site for sale or lease to Program participants. Other forms of Agency assistance may include, but shall not be limited to providing technical assistance and low interest first and/or second mortgages to program participants who purchase a home. 06/13/90 0081u/2338/O0 4- BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 aRESOLUTION NO. RA 90-5 D. Assessment/Hook-Up Fee Subsidy Program The Agency currently operates an ongoing program to subsidize persons and families of low or moderate income who are required to make payments for assessment and hook-up fees. Persons and families of low or moderate income who qualify for this Program are located within assessment districts in the Project Area. The Agency shall continue to offer such assistance to persons and families of low or moderate income. E. Equity Sharing Loan Program The Agency will establish a fund to provide second deeds of trust to persons and families of low or moderate income. The amount of assistance provided will be calculated to ensure that housing costs do not exceed twenty-five percent 25%) of gross income and will, therefore, be affordable to persons and families of low or moderate income. Interest rates for these loans would be at below market rates. Payment may be deferred to a single balloon payment upon resale of the participant's home, upon retirement of principal financing or may be required on a monthly basis. V. FINANCING FOR REPLACEMENT DWELLING UNITS The replacement dwelling units provided through implementation of this Replacement Mousing Plan will be assisted and/or financed with the funds available in the Agency's Low and Moderate Income Housing Fund the Housing Fund"). According to the Agency's most recent tax increment projections, the Agency will have collected One Million One Hundred Ninety-Seven Thousand Seven Hundred Thirty Dollars $1,197,730) in its Housing Fund by the end of fiscal year 1990-91. In subsequent years, it is projected that the balance in the Housing Fund will grow substantially from year to year. VI. ARTICLE XXXIV EXEMPTION The City of La Quinta has not obtained the approval of the voters for the development, construction or acquisition of a low rent housing project by the Agency pursuant to Article XXXIV of the California Constitution. Section 37001 provides that the term low rent housing project" as defined in Section 1 of Article XXXIV, does not apply to any development composed of urban or rural dwellings, apartments, or other 06/13/90 0081u/2338/00 5- BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02 a RESOLUTION NO. RA 90-5 living accommodations which meet any of six 6) criteria. The Agency shall provide twenty 20) replacement dwelling units which meet one or more of these criteria. VII. TIMETABLE FOR IMPLEMENTATION OF THIS REPLACEMENT HOUSING PLAN In accordance with 33*l3(a), the twenty 20) rental units proposed for construction or rehabilitation under this Replacement Housing Plan shall be completed within four 4) years from the date that the twenty 20) dwelling units are destroyed and removed from the low and moderate income housing market by the Agency. An approximate timetable for construction of the Low-Moderate Income Rental Complex includes gaining site control and concluding negotiations with a developer to assist in the construction of the complex within one 1) year from the date of and removal of the twenty 20) units from the low and moderate income housing market. It is anticipated that *he rental units can be ready for occupancy within two and Ce half 2.5) years of the execution of a Disposition and Development Agreement for construction of the Low-Moderate Income Rental Complex. The foregoing timetable is based on assumptions which are subject to market conditions, interest rate fluctuations, availability of suitable sites, and developer interest. 06/13/90 0081u/2338/00 6- BIB] 07-30-1997-U01 02:10:43PM-U01 ADMIN-U01 RDARES-U02 90-U02 05-U02