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RDA Resolution 2005-005RESOLUTION NO. RA 2005-005 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA ADOPTING A THIRD FIVE-YEAR IMPLEMENTATION PLAN FOR 2004-05 THROUGH 2008-09 FOR LA QUINTA REDEVELOPMENT PROJECT NO. 1 AND LA QUINTA PROJECT NO. 2 WHEREAS, the Redevelopment Plan for the City of La Quinta Redevelopment Project Areas No. 1 was approved by the City Council of the City of La. Quinta by Ordinance No. 43 on November 29, 1983, and amended by Ordinance 258 on December 20, 1994, Ordinance 264 on March 21, 1995, and Ordinance 388 on August 19, 2003, and Ordinance 402 on March 16, 2004; and WHEREAS, the Redevelopment Plan for the City of La Quinta Redevelopment Project Areas No. 2 was approved by the City Council of the City of La Quinta by Ordinance No. 139 on May 16, 1989, and amended by Ordinance 259 on December 20, 1994, Ordinance 399 on February 3, 2004, and Ordinance 403 and Ordinance 404 on March 16, 2004; and WHEREAS, Section 33490(a)(1)(A) of the California Community Redevelopment Law, Health and Safety Code 33000 et. seq. ("Law"') requires all redevelopment agencies to adopt an implementation plan every five years, following a noticed public hearing; and WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the specific goal and objections of the Agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of the Law; and WHEREAS, the Agency has conducted a duly noticed public hearing. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA, CALIFORNIA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Third Five Year Implementation Plan for 2004-05 through 2008-09 for the La Quinta Redevelopment Project Areas, in the form of document considered by the Agency concurrent with the adoption of this Resolution, and which form of document is incorporated herein and is on file with the Agency Secretary, is hereby approved and adopted. Resolution No. RA 2005-005 Third Five -Year Implementation Plan Adopted: June 7, 2005 Page 2 SECTION 2. The Agency finds and determines that in accordance with Health and Safety Code Section 33490(a)(1)(B), the adoption of the Implementation Plan Amendment is not a " project" within the meaning of the California Environmental Quality Act (Public Resources Code § 21000 et. seq.). PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 7th day of June, 2005, by the following vote: AYES: Members Adolph, Henderson, Perkins, Sniff, Chair Osborne NOES: None ABSENT: None ABSTAIN: None o*fEE M. 0 ORNE, % Agency Chair La Quinta Redevelopment Agency ATTEST: J(blf� GREEK, CMC, 4je-l4cy Secretary La Quinta Redevelopment Agency (Agency Seal) APPROVED AS TO FORM: M.'KATHtRINV-JENSON, Agencyo6unsel La Quinta Redevelopment Agency THIRD IMPLEMENTATION PLAN This document is the Third Implementation Plan ("Implementation Plan") for La Quinta Redevelopment Project No. 1 ("Project No. Iff) and La Quinta Redevelopment Project No. 2 ("Project No. 2"). it has been prepared by the La Quinta Redevelopment Agency ("Agency") to address the requirements of Section 33490 of the California Community Redevelopment Law, Health, and Safety Code Sections 33000 et seq. ("Law"). Pursuant to the Law, this Implementation Plan presents: The goals and objectives that will guide redevelopment and affordable housing implementation activities in La Quinta Redevelopment Project Area No. I ("Project Area No. 1") and La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2") The specific programs, projects, and expenditures for the five-year term (2004-05 through 2008-09) of this Implementation Plan * An explanation of how the projects will eliminate blight in the Project Areas An explanation of how the Agency's affordable housing projects and expenditures will implement the low- and moderate -income housing requirements of the Law through: An annual Housing Program for the five-year term that provides sufficient detail to measure performance of the Low- and Moderate- Income Housing Fund ("Housing Fund") requirements 2. An enumeration of the number of housing units to be rehabilitated, assisted, price restricted, or destroyed during the term of the respective Project No. I and Project No. 2 Redevelopment Plans 3. An outline of the Agency's plan for the utilization of the Housing Fund including annual deposits, transfer of funds, or accruals for special projects 4. An identification of programs/projects that will result in the destruction of existing affordable housing (if any), and the proposed locations for replacement housing 0 The Agency's Second Ten -Year Affordable Housing Compliance Plan. La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 1 Third Implementation Plan BACKGROUND The La Quinta Redevelopment Agency was established on July 5, 1983. Shortly thereafter, in November 1983, the Agency adopted the 11,600-acre Project Area No. 1, which includes land designated for commercial, office, residential, retail, institutional, recreational, and public uses. Generally, Project Area No. I is bounded by Avenue 50 to the north, Jefferson and Madison Streets to the east, Avenue 60 to the south, and the La Quinta City boundary on the west. Project Area No. I was established to redevelop and expand deficient public infrastructure and facilities, to facilitate economic development, to expand recreation opportunities, and to revitalize the La Quinta Village. The Project No. 1 Redevelopment Plan has been amended twice since its adoption. The first Amendment occurred in 1995 to modify certain time limits and to: • Add eligible public facilities and infrastructure projects • Increase the tax increment revenue limit to $2,000,000,000 • Increase the bond indebtedness limit to $100,000,000 • Extend the Agency's eminent domain authority for 12 years. The Redevelopment Plan was again amended in 2003 to eliminate the November 2003 time limit on the Agency's ability to incur debt that would be repaid from future tax increment revenue, and to extend, for one year, the time period that the Agency may receive tax increment revenue from Project No. 1. Important Project No. 1 Redevelopment Plan time and financial limits are as follows: Tax Increment Revenue Limit: $2,000,000,000 Total Bond Debt Limit: $100,000,000 Agency May Implement Redevelopment Projects Until: November 2024 Agency May Receive Tax Increment Revenue Until: November 2034 Agency May Use Eminent Domain for Property Acquisition: March 2007 In May 1989, the Agency established Project Area No. 2. This Project Area is 3,116 acres in size and encompasses commercial, residential and institutional land uses. Located in the northern area of the City, Project Area No. 2 is generally bounded by Avenue 50 to the south, Fred Waring Drive to the north, Washington Street to the west, and Jefferson Street to the east. Project No. 2 was established to provide a mechanism to remove impediments to commercial and residential development, to address public infrastructure and facility deficiencies, and to increase and improve the oommunitys supply of affordable housing. Since it was adopted, the Project No. 2 Redevelopment Plan was amended twice. The first Amendment occurred in December 1994 to bring the Redevelopment Plan's time limits in La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 2 Third Implementation Plan BACKGROUND conformance with the Law. The second Amendment occurred in January 2004, when the tax increment limit was increased to $1,500,000,000. Important Project No. 2 Redevelopment Plan financial and time limits are as follows: Tax Increment Revenue Limit: $1,500,000,000 Total Bond Debt Limit: $100,000,000 Agency May Implement Redevelopment Projects Until: November 2024 Agency May Receive Tax Increment Revenue Until: November 2034 La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 3 Third Implementation Plan REDEVELOPMENT GOALS - Project No. 1 Section 400 of the Project No. 1 Redevelopment Plan delineates the following redevelopment goals. These goals were used to develop the strategy for this Implementation Plan and will guide project implementation activities. 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. • Expand Commercial Base. Expand the Project Area's commercial base. • Improve Facilities/infrastructure. Improve public facilities and public infrastructure. • Improve Drainage Facilities, Improve inadequate drainage infrastructure. • Improve Utility Service. Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both developed and undeveloped properties. • Promote Job Growth. Promote local job opportunities. Coordinate Stake Holder Participation. Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in redevelopment/revitalization initiatives. Ensure Quality Design and Developmen . Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to development within the Project Area. Address Irregular Lots. 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. Assemble Parcels. Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved infrastructure and public facilities. Correct Underutilized Lots. Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources. 0 Promote Housing. Promote the rehabilitation of existing housing stock. Increase and Improve the Community's Supply of Affordable Housing. Increase, improve, and preserve the supply of housing affordable to very low-, low- and moderate -income households. La QuInta Redevelopment Agency Project No. I May 2005 4 Third Implementation Plan BLIGHTING CONDITIONS - Project No. 1 When Project No. 1 was established the Agency identified the following blighting conditions: Inadequate Flood Control Facilities. A majority of the properties were not served by flood control facilities. When summer and winter rains would occur, many of these properties would flood which would inflict significant physical and economic losses, and impact the health, safety and welfare of residents and businesses. Deteriorated Residential Structures in the Cove. Numerous residential dwellings in the Cove community suffered from moderate to heavy structural deterioration and had been cited for numerous Building Code violations. Because rehabilitation costs were estimated to exceed 50 percent of the then market value, many of these dwellings were considered candidates for demolition. Other less -deteriorated residential structures were candidates for an Agency -sponsored rehabilitation and reconstruction program. 0 Substandard Structure Design. A building survey identified a number of specific properties that were developed under less stringent building standards prior to the Citys incorporation in 1982. As a result, these structures were more susceptible to flood damage due to inadequate foundations and were plagued with numerous safety hazards due to defective and substandard electrical wiring. Mixed and Incompatible Uses. A number of residential structures in both the Cove and the La Quinta Village were being used for nonresidential uses. In addition to the unsuitability of these buildings to house these new uses, these converted properties frequently generated land use compatibility conflicts and lacked adequate storage and off-street parking facilities. Inadequate Water and Sanitation Infrastructure. A majority of the water system was installed in the 1930's. It was undersized and the distribution system infrastructure was deteriorating. A majority of the properties were serviced by septic systems, which often overflowed during the flooding that would occur during heavy, rains, leaking sewage into the water system. Inadequate Roadways/Streets. Regional access was limited due to the lack of roads, and the existing roadways did not have curbs and gutters and often flooded during summer and winter rains. Stagnant Commercial Activity. Economic activity was stagnating because many of the commercially zoned properties were subdivided into 2,500 square foot parcels and were under multiple ownership. In order to assemble a three to five acre parcel, a developer would need to negotiate land purchase transactions with as many as a dozen property owners. The water, sewer and street infrastructure was also inadequate to support commercial development, and developers often found the cost for these facilities could not be borne by their development proposals. Inadequate Park, Recreation and Cultural Facilities. The Agency also identified a lack of park space, recreation and cultural facilities. Due to its low property tax rate the City could not fund land acquisition and facility development costs. La Quinta Redevelopment Agency Project No. I May 2005 5 Third Implementation Plan FINANCIAL RESOURCES - Project No. I The chart below presents the anticipated revenues and expenditures for the Project No. 1 Debt Service and Capital Projects funds during the five year term of this Implementation Plan. These revenue and expenditure estimates are based upon the data contained in the City of La Quinta's March 2005 Annual Financial Management Review (the City annually conducts a comprehensive review of all of the City and Agency funds and prepares five year revenue and expenditure forecasts from which annual budget policy and project1prograrn determinations are formulated). The revenue projections assume that Project Area No. I assessed values will annually increase by the inflation adjustment allowed by Proposition 13, and from development of the remaining vacant parcels within -Project Area No. 1. Anticipated expenditures are based upon the polices established by the La Quinta City Council, the projects and programs identified in the March 2005 Annual Financial Management Review, and the City's Capital Improvement Program. During the next five years the Agency anticipates that the Project No. 1 expenditures will entail: Funding fiscal mitigation payments to the various taxing agencies that levy taxes in Project Area No. 1. These payments are based upon schedules that are contained in the taxing agency agreements with the County of Riverside, the community college district, local school districts, and other public agencies. Funding Education Revenue Augmentation Fund (ERAF) payments per the mandates from the State of California. In an effort to address the State's budget deficit, the State is requiring that the Agency pay up to $3,000,000 of tax increment revenue into a fund to reduce the State's funding commitment to local school districts. Initially, ERAF payments were to end during Fiscal Year 2005-06. However, since the State budget is still in a deficit position, the Agency is projecting continued ERAF payments at their current level during the five year term of this Implementation Plan. If ERAF payments cease, these funds would be available to fund additional projects and programs or to retire additional Project No. 1 debt. • Funding debt service payments on the 1994, 1998, 2001, 2002 and 2003 tax allocation bonds. It should be noted that the 1994 Bonds will be repaid in 2012. • Interest payments on outstanding City General Fund loans. • Funding Agency administration costs associated with Project No. 1 activities. • Completing projects that were initiated during the Second Implementation Plan funding cycle. La QuInta Redevelopment Agency Project No. 1 May 2005 6 Third Implementation Plan FINANCIAL RESOURCES - Project No. I 2004-05 2005-06 2006-07 2007-08 2008-09 Revenue 27,307,161 27,256,607 28,073,070 28,944,862 29,851,677 Expenditures taxing agency payments 12,283,973 13,076,663 13,369,011 13,T74,939 14,192,776 ERAF payments 2,780,728 3,000,000 3,000,000 3,000,000 3,000,000 bond payments 10,324,969 10,312,988 10,310,440 10.317,855 10,304,913 General Fund loan interest 952,764 661,530 1,111,206 1,604,050 contract services 707,878 519,585 354,676 363,449 372,525 Agency administration 292,413 292,413 292,413 292,413 292,413 Washington/1-10 interchange 50,000 50,000 50,000 50.()00 50,000 sidewalk improvements 25,000 25,000 25,000 25,000 25,000 handicap ramp improvements 10,000 10.000 10,000 10,000 10,000 Eisenhower bridgetdrainage 2,691,000 Total Expenditures 30,118,725 27,286,649 28,073,070 28,944,862 29,851,677 Year End Fund Balance (2,811,564) (30,042) - - - The year end fund balance deficits for Fiscal Years 2004-05 and 2005-06 will be funded from the Fiscal Year 2003-04 fund balance. The Agency projects that the Project No. 1 Non -Housing Fund will conclude Fiscal Years 2006-07 through 2008-09 with a zero fund balance. If revenues exceed projections or if ERAF payments cease, the Agency will then revise its expenditures plan accordingly during the mid-term review of this Implementation Plan. La Quinta Redevelopment Agency Project No. I May 2005 7 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 Through the Second Implementation Plan the Agency implemented a variety of economic development, infrastructure and public facility improvements in Project Area No. 1 including the following: SilverRock Resort. The Agency purchased 525 acres of property in Project Area No. 1 and completed master planning activities for a resort community that will encompass two golf courses, three to four resorts, community facilities, recreation space, convention facilities and retail space. The first golf course was opened in February 2005, and the Agency is currently negotiating a land disposition and development transaction with Lowe Enterprises for the development of the first resort property, and the future phased development of the additional resort, convention facilities and retail uses. La Quinta Library. The Agency is funding the construction of a 20,000 square foot library that will serve both Project Area No. I residents and the greater community. This facility will replace the existing 3,000 square foot library which is housed in leased facilities. La Quinta Historical Museum. The Agency purchased the La Quinta Historical Museum, which is located in the Village. Operated by the La Quinta Historical Society, the Museum houses exhibits on La Quinta's cultural and historical heritage. Village Streetscape and Parking Improvements. The La Quinta Village is the commercial core of Project Area No. 1. However, it lacked sufficient off-street parking and attractive streetscapes. The Agency funded streetscape improvements involving the major boulevards that serve the Village and has initiated improvements to the first off-street parking facility. Other Infrastructure and Community Facility Prooects. During the past five year planning cycle the Agency also completed the following Project Area No. I related projects: o Improvements to the Washington Street and 1-10 interchange o Calle Rondo Channel storm drain improvements o Median landscape improvements — Avenue 50/Sinaloa/Calle Tampico o Cove mini park expansion o Phase VI - A Village commercial capital improvements o Cove Oasis/Lake Cahuilla capital improvements o CVAG/Jefferson Street Phase 1 construction o Phase 11 Fritz Burns Park improvements o Streettsidewalk improvements o La Fonda street improvements Implementation Activities — 2004-05 to 2008-09 Planning Period Nonhousing programs and projects for the coming five-year cycle are presented on the following pages. As funding is available, the Agency will be facilitating new initiatives that stimulate private development, address blight, and provide needed public infrastructure and facilities. La Quinta Redevelopment Agency Project No. 1 May 2005 8 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 SilverRock Resort FIVE-YEAR PLAN ACTI' This project will entail initiating site and building planning activities for a permanent clubhouse and a second golf course, constructing trail and passive recreation improvements, purchasing and improving domestic water well sites, and concluding negotiations for hotel and commercial property disposition and development. EXPENDIT47RES The Agency anticipates expending up to $14,500,000 in remaining Project No. 1 bond proceeds to leverage additional private investment. I TIMELINE ] These activities will be implemented from Fiscal Years 2004-05 through 2008-09. I PLAN GOALS THE PROJECT WILL ADDRESS I • Expand Commercial Base • Improve Facilities/Infrastructure • Promote Job Growth • Coordinate Stake Holder Participation • Ensure Quality Design and Development • Correct Underutilized Lots I BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS I • Inadequate Water and Sanitation Infrastructure • Inadequate Roadways/Streets • Stagnant Commercial Activity • Inadequate Park, Recreation and Cultural Facilities La Quinta Redevelopment Agency Project No. 1 May 2005 Third Implementation Plan NONHOUSING PROGRAMS - Project No. I I PROGRAM/PROJECT I Eisenhower Drive Bridge and Drainage Improvements I FIVE-YEAR PLAN ACTIVITIES I This project entails replacing an existing two lane structure that is located on one of the three major arterials that accommodates north/south vehicular and pedestrian traffic through Project Area No. 1. This project also includes improving the underlying drainage system that is part of a larger Project Area No. 1 storm water evacuation facility. EXPENDITURES The Agency will expend $2,691,000 during Fiscal Years 2004-05 through 2006-07; Project No. I tax increment revenues will fund this project. I TIMELINE ] This project will be designed and constructed in Fiscal Years 2004-05 through 2006-07. I PLAN GOALS THE PROJECT WILL ADDRESS I • Improve Facilities/Infrastructure • Improve Drainage Facilities [BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS I • Inadequate Roadways/Streets • Inadequate Flood Control Facilities La Quinta R ' edevelopment Agency Project No. 1 May 2005 10 Third Implementation Plan NONHOUSING PROGRAMS - Project No. 1 [��ROGR�AMIPROJECT� Continuing Projects from Previous Five Year Planning Period FIVE-YEAR PLAN ACTIVITIES During the Second Implementation Plan the Agency initiated the following projects; funding will continue through this five year planning period: • Washington Streettinterstate 10 freeway interchange improvements • Sidewalk Improvement throughout Project Area No. 1 • Handicap Access Ramp Improvements throughout Project Area No. 1 I EXPENDITqR--ES] The Agency will expend $425,000 during Fiscal Years 2004-05 through 2006-07; Project No. 1 tax increment revenues will fund these projects. I TIMELINE These projects will be implemented during Fiscal Years 2004-05 through 2007-08. I PLAN GOALS THE PROJECT WILL ADDRESS I 0 Improve Facilities/Infrastructure I BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS I 0 Inadequate Roadways/Streets La Quinta Redevelopment Agency Project No. I May 2005 11 Third Implementation Plan REDEVELOPMENT GOALS - Project No. 2 Section 400 of the Project ' No. 2 Redevelopment Plan delineates the following redevelopment goals for the Project Area. 'these goals were used to develop the strategy for the Implementation Plan and will guide project implementation activities. Eliminate Blight: Remedy, remove, and prevent physical blight and economic obsolescence in the Project Area. 0 Diversify Economic Base: Expand the commercial base of the community. Encourane Stakeholder Participation: Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the redevelopmerittrevitalization activities. Upgrade Urban Design Standards: Upgrade the general aesthetics of the commercial enterprises to improve their economic viability. Expansion of Businesses: Provide for the expansion, renovation, and relocation of businesses within the Project Area to enhance their economic viability; whenever possible, give preferences to business concerns either located within or owned by persons residing in the Project Area. Invest in Infrastructure: Improve and/or provide electric, gas, telephone, water, and wastewater facilities to both developed and subdivided undeveloped properties. Expand Developable Land: Recycle and/or develop underutilized parcels to accommodate higher and better economic uses and improve the City's financial viability. Improve Traffic Circulation: Address inadequate street improvements and roads that vary in width and degree oi improvement. Correct Drainage System Deficiencies: Alleviate inadequate drainage improvements that constrain the development of various parcels in the Project Area, the cost of which cannot be bome by private enterprise acting alone. Assemble and Consolidate Underutilized Land: Address parcels that are inadequately sized for proper usefulness and development, and are held in divided and widely scattered ownerships. 0 Remedy Values: Remedy depreciating property values and impaired investments. Provide for Economic Growth: Provide opportunities and mechanisms to increase sales tax, business license tax, and other revenues. Increase and Improve the Community's Supply of Affordable Housing. Provide for low - and moderate -income housing opportunities as is required to satisfy the needs and desires of various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State law. La Quinta Redevelopment Agency Project No. 2 May 2005 12 Third Implementation Plan BLIGHTING CONDITIONS - Project No. 2 When Project No. 2 was established the Agency identified the following blighting conditions that required redevelopment to remedy: Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it is unsafe or unhealthy for persons to live or work and are characterized by serious Building Code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots which include substandard building design, inadequate parcel size given current development standards and market conditions, and lack of parking. Lots of Irregular Shape, Inadequate Size and Under Multiple Ownership. The existence of subdivided lots of irregular form and shape, and of inadequate size for proper usefulness and development that are owned by a variety of entities. Inadequate Public Infrastructure/Facilities. Inadequate public improvements, parking facilities, open space, or utilities. Depreciated/Stagnant Property Values: Impaired Investments. Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, properties that are contaminated with hazardous materials and waste. BuildingsNacant Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. Lack of Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, banks, and other lending institutions. Residential Overcrowding/Excess Bars, Liquor Stores, Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults that has led to problems of public safety and welfare. La Quinta Redevelopment Agency Project No. 2 May 2005 13 Third Implementation Plan FINANCIAL RESOURCES - Project No. 2 The chart below presents the combined anticipated revenues and expenditures for the Project No. 2 Debt Service and Capital Projects funds during the five year term of this Implementation Plan. These revenue and expenditure estimates are based upon the data contained in the City of La Quinta's March 2005 Annual Financial Management Review (the City annually conducts a comprehensive review of all of the City and Agency funds and prepares five year revenue and expenditure forecasts from which annual budget policy and project/program determinations are formulated). The revenue projections assume that Project Area No. 2 assessed values will annually increase by the inflation adjustment allowed by Proposition 13, and from development of the remaining vacant parcels within Project Area No.2. Anticipated expenditures are based upon the polices established by the La Quinta City Council, the projects and programs identified in the March 2005 Annual Financial Management Review, and the City's Capital Improvement Program. During the next five years the Agency anticipates that the Project No. 2 expenditures will entail: Funding fiscal mitigation payments to the various taxing agencies that levy taxes in Project Area No. 2. These payments are based upon schedules that are contained in the taxing agency agreements with the County of Riverside, the community college district, local school districts, and other public agencies. • Funding debt service payments on the 1998 tax allocation bonds. • Continuing interest payments on outstanding City General Fund loans. • Funding Agency administration costs associated with Project No. 2 activities. • Completing capital improvement projects that were initiated during the Second Implementation Plan funding cycle. Project No. 2 also has the requirement to disburse Funding Education Revenue Augmentation Fund (ERAF) payments per the mandates from the State of California. In an effort to address the State's budget deficit, the State is requiring the Agency pay a total of $3,000,000 of tax increment revenue into a fund to reduce the State's funding commitment to local school districts. However, the Project No. 2 ERAF payments are being funded from Project No. 1; there was not sufficient revenue to fund this obligation and meet other pre-existing obligations. La Quinta Redevelopment Agency Project No. 2 May 2005 14 Third Implementation Plan .2004-05 2005-06 200"7 2007-08 2008-09 Revenue 16,537,044 13,788,038 14,200,947 14,626,261 15,108,453 Expenditures taxing agency payments 11,394,169 11,826,665 12,178,465 12,590,820 13,014,045 ERAF payments - - - - - bond payments 418,264 417,080 418,264 419,168 419,785 General Fund loan payments 1,053,580 1,158,938 1,274,832 1,402,315 1,542,547 contract services 339,983 93,734 97,672 101,028 104,114 Agency administration 41,443 15,000 15,000 15,000 15,000 SilverRock resort 1,112,445 Highway I 11 improvements 31ZOOO Simon Drive signal 45,379 Total Expenditures 14,717,263 13.511,417 13,984,233 14,528,331 15,095,491 Year End Fund Balanre 1,819,781 276,621 216,714 97,930 12,962 The year end fund balance surpluses have not been scheduled for new projects or program expenditures because the Agency has elected to maintain a minimal reserve for future uncertainties. However, if revenues exceed projections, the Agency will then revise its expenditures plan accordingly during the mid4erm review of this Implementation Plan. La Quinta Redevelopment Agency Project No. 2 May 2005 15 Third Implementation Plan (7) NONHOUSING PROGRAMS - Project No. 2 Through the Second Implementation Plan the Agency implemented a variety of economic development, infrastructure and public facility improvements in Project Area No. 2 including the following: Miles Avenue/Washington Street PropertV Disposition and Development Agreemen. In 2003 the Agency approved the Disposition and Development Agreement (DDA) with Centre Point, a local development company, that facilitated the sale and development of the Agency's 45.0 acre property located southeast of the intersection of Miles Avenue and Washington Street The development program encompasses: o An approximately 134 room Homewood Suites by Hilton o Approximately 136 one and two story casitas hotel condominium units to be rented as vacation rental units o A sanctuary Villas development with approximately 26 1,200 square foot villas and a spa o A 120,000 square foot medical and surgical center comprised of three 40,000 square foot buildings o Two sit-down restaurants o 13 courtyard duster villa homes that Will be sold at market sales prices o 54 One-story Single Family and Courtyard Homes of which 40 will be sold at prices affordable to moderate -income households with the remaining 14 sold at market sales prices o A 2.68-acre park. Centre Point is currently implementing the DDA with the first development entailing a Homewood Suites hotel, the two story casitas hotel condominium units, and the extension of Seeley Drive. Other Infrastructure and Community Facility Proiects. During the past five year planning cycle the Agency completed the following projects: 0 Underground utility improvements 0 Highway 111 traffic signals and street lights 0 Phase VI-C Westward Ho. 0 Phase VI-D — Sagebrush, Bottlebrush, Saquaro 0 Streettsidewalk improvements 0 Pdint Happy/Cliffhouse sidewalk improvements Implementation Activities — 2004-05 to 2008-09 Planning Period Nonhousing programs and projects for the coming five-year cycle are presented on the following pages. These project proposals entail continuing or completing current initiatives. The Agency will also seek new initiatives (as funding is available) that address blight, stimulate private development, enhance the economic viability of Project Area No. 2, and provide needed public infrastructure and facilities. La Quinta Redevelopment Agency Project No. 2 May 2005 16 Third Implementation Plan NONHOUSING PROGRAMS- Project No. 2 I PROGRAM/PROJECT] SilverRock Resort I FIVE-YEAR PLAN ACTIVITIES I This project will entail initiating site and building planning activities for a permanent clubhouse and a second golf course, constructing trail and passive recreation improvements, purchasing and improving domestic water well sites, and concluding negotiations for hotel and commercial property disposition and development - The Agency anticipates expending up to $1,112,445 in Project No. 2 non -housing tax increment revenue to facilitate development of the recreation facilities. I TIMELINE These activities will be funded in Fiscal Year 2004-05. I PLAN GOALS THE PROJECT WILL ADDRESS I • Diversify Economic Base • Invest in Infrastructure • Improve Traffic Circulation • Provide for Economic Growth CONDITIONS THE PROJECT WILL ADDRESS 0 Inadequate Public Infrastructure/Facilities La QuInta Redevelopment Agency Project No. 2 May 2005 17 Third Implementation Plan NONHOUSING PROGRAMS- Project No. 2 I PROGRAMIPROJECT I Highway 111 Improvements I FIVE-YEAR PLAN ACTI This project entails funding roadway, curb and gutter improvements along Highway 111 in the eastern segment of Project Area No. 2. I EXPENDITURES The Agency anticipates expending up to $312,000 in Project No. 2 non -housing tax increment revenue to leverage additional public and private investment. I TIMELINE I These activities will be funded in Fiscal Year 2004-05. PLAN GOALS THE PROJECT WILL ADDRESS Diversify Economic Base Invest in Infrastructure Expand Developable Land Improve Traffic Circulation Provide for Economic Growth I BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS ] 0 Inadequate Public Infrastructure/Facilities La Quinta Redevelopment Agency Project No. 2 May2005 18 Third Implementation Plan NONHOUSING PROGRAMS- Project No. 2 I PROGRAM/PROJECT I Simon Drive Traffic Signals I FIVE-YEAR PLAN ACTI This project entails funding traffic signal improvements at Simon Drive at Washington Street. EXPENDITURES] The Agency anticipated expending up to. $45,379 in Project No. 2 non -housing tax increment revenue to leverage additional private investment. I TIMELINE These activities will be funded in Fiscal Year 2004-05. PLAN GOALS THE PROJECT WILL ADDRESS • Diversify Economic Base • Invest in Infrastructure • Expand Developable Land Improve Traffic Circulation Provide for Economic Growth I BLIGHTING CONDITIONS THE PROJECT WILL ADDRESS 0 Inadequate Public Infrastructure/Fa6i ities La Quinta Redevelopment Agency Project No. 2 May 2005 19 Third Implementation Plan HOUSING PROJ ECTS/PROG RAMS Through the Second Implementation Plan the Agency implemented the following affordable housing activities that generated 826 affordable units that feature 30, 45 or 55 year covenants. These covenants insure that the dwellings remain affordable for these time frames. Building Horizons — 8 Dwellings. This program is sponsored by the Boys and Girls Club of Coachella Valley and utilizes La Quinta High School students to design, build and market single-family homes in the Cove. During the past five years this program has generated eight affordable units of which four were sold to low-income family households and four to moderate -income family households. The Agency recorded silent second trust deed loans against the properties in order to insure that total housing costs are affordable to the designated income categories and that the dwellings remain affordable for 30 to 45 years. These homes are located in Project Area No. 1. I SilverHawk Apartment Homes — 75 Dwellings. The Agency provided funds to assist with infrastructure and utility system improvements to facilitate the development of 200 new apartment homes. This investment resulted in reserving 75 one and two bedroom units as housing affordable to moderate -income family households; these dwellings will remain affordable for 55 years. This development is located in Project Area No. 1. Rael Apartment Rehabilitation — 14 Dwellings. The Agency provided funds to substantially rehabilitate these 1970's era family apartment homes. New facades, roofs, landscaping and covered carports were installed. By providing this investment, the Agency secured 14 units that will be affordable to moderate -income family households for 30 years. These homes are located in Project Area No. 1. Miraflores — 162 Dwellings. This development was completed and opened during the past five year planning term. Located in Project Area No. 2, this neighborhood contains 44 single-family dwellings that are affordable to moderate -income families (affordability is secured through 30 year Agency funded silent second trust deed loans), and 118 senior apartment homes; 94 of the one and two bedroom senior apartments are affordable to low- income households and 24 are affordable to moderate -income households. Aventine Family Apartments — 20 Dwellings. Located in Project Area No. 2, the Agency secured 20 affordable apartment homes in this complex, 10 affordable to low-income households and 10 to moderate -income households. These units will remain affordable for 55 years. Watercolors Court Homes — 149 Dwellings. The Agency concluded an Affordable Housing Agreement that will facilitate the construction of 149 dwellings that will be sold, at affordable housing costs, to moderate -income households that are 55 years of age and older. The dwellings will feature Agency funded silent second trust deed mortgages that will insure that these homes will remain affordable to moderate -income households for 45 years. This development is in Project Area No. 2. La Quinta Redevelopment Agency La Quinta Project No' I and Project No. 2 May 2005 20 Third Implementation Plan HOUSING PROJECTS/PROGRAMS Lermar Court Homes — 40 Dwellings. In 2003, the Agency concluded a Disposition and Development Agreement that facilitated the sale of 45 acres of land, located southeast of the Miles Avenue and Washington Street intersection, and the development of resort, medical, restaurant, and residential uses. Included are 40 single-family homes that will be sold to moderate -income family households. These dwellings will feature Agency funded silent second trust deed loans that will insure that the dwellings remain affordable to moderate -income family households for 45 years. This development is located in Project Area No. 2. Hadley Villas Senior Apartments — 80 Dwellings. This development was funded through a combination of Agency and HUD funds to generate a senior apartment complex that is affordable to very low-income households that are 55 year of age or older. The dwellings wfl I remain affordable to very low-income households for 55 years. This development is located in Project Area No. 2. Silent Second Trust Deed Loans - 192 Dwellings. The Agency continued to fund silent second trust deed loans to facilitate home purchases in both Project Areas. During the past five years, 178 loans were funded for Project Area No. I home purchases (10 very low- income, 134 low-income, and 34 moderate -income) and 14 loans were funded for Project Area No. 2 home purchases (6 low-income and 8 moderate4ncome). These second trust deed loans feature covenants to insure that the dwellings remain affordable for 30 to 45 years. Vista Dunes Courtyard Homes — 80 Dwellings. In 2004 the Agency purchased the 1950's Vintage Vista Dunes Mobile Home Park in Project Area No. 2. This Park contained 92 travel trailers, and single and double -wide mobile home units, that were in dilapidated condition. The Agency is currently relocating the residents and will then redevelop this property with 80 single and duplex dwellings that will be rented to very low-income family households. The rents Will remain affordable for 55 years. During the past five year planning cycle the Agency refunded the 1995 Tax Allocation Housing Bonds to secure lower interest costs, and to generate $65,000,000 of new bond proceeds that the Agency will invest in new affordable housing initiatives. La QuInta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 21 Third Implementation Plan 0 . 0 HOUSING FINANCIALRESOURCES The chart below presents the combined (Project No, 1 and Project No. 2) revenue and expenditure projections for the five year planning period. The revenue ledger includes anticipated tax increment revenue, the proceeds from the 2004 Housing Bond (the 2004 Finance Authority Bond), income from the La Quinta Rental Housing Program, and the sale of dwellings that feature Agency silent second trust deed loans. The Rental Program income is used to maintain and to substantially rehabilitate these dwellings prior to their safe to very low-income family households. The Agency's silent second trust deed loan income represents repayment of the second trust deed loans and shared appreciation revenue when these units are sold to non -qualifying households and are removed from the Agencys affordable housing inventory. This revenue is then invested to gain replacement dwellings that will remain affordable for 45 years. Revenue 2004-05 2005-06 2006-07 2007-08 2008-09 beginning fund balance $ 9,512,242 $ 61,979,947 $ 10,513,095 $ 5,961,430 $ 1,180,078 Project No. I tax increment Project No. 2 tax increment 2004 Finance Authority Bond LO rental program income 2nd trust deed home sale income Building Horizons home sale income interest income Total Revenue Expenditures 2004 Finance Authority Bond 1994 bond payments housing program administration LO rental program 2nd trust deed loan program foreclosure acquisition Building Horizons multi -family housing rehabilitation Vista Dunes Courtyard Homes Dune Palms multi -family Watercolors court homes Lennar court homes mobile home park rehabilitation property acquisition Village mixed use housing Total Expenditures Year End Fund Balance La Quinta Redevelopment Agency May 2005 6,480,979 6,675,408 6,875,670 7,081,940 7,294,399 3,345,543 3,445,910 3,549,287 3,655,765 3,765,438 56,736,0`17 341,000 332,000 323,000 314,000 305,000 660,000 150,000 150,000 150,000 150,000 85,000 85,000 85,()00 85,000 85,000 20,800 40,700 42,800 57,800 86,000 $ 77,181,581 $ 72,708,965 $ 21,538,852 $ 17,305,935 $ 12,865,915 2,990,049 5,171,981 5,923,156 5,926,806 5,919,994 483,246 480,575 479,789 479,301 478,083 1,454,589 1,289,448 1,201,477 1,235,750 1,236,869 150,000 332,000 323,000 314,000 305,000 3,618,240 500,000 250,000 250,000 650,000 150,000 150,000 150,000 150,000 250,000 250,000 250,000 250,000 250,000 276,411 5,128,134 16,871,866 50,965 20,000,000 150,000 7,000,000 2,520,000 7,000,000 4,000,000 4,000,000 3,000,000 3,000,000 2,000,000 1,000,000 1'00Q'000 150,000 1,000,000 $ 15,201,634 $ 62,195,870 $ 15,577,422 $ 16,125,857 $ 12,339,946 $ 61,979,947 $ 10,513,095 $ 5,961,430 $ 1,180,078 $ 525,969 La Quinta Project No. I and Project No. 2 22 Third Implementation Plan HOUSING FINANCIAL RESOURCES Units Assisted Through Housing Fund Expenditures During the past five years the Agency funded the following affordable housing projects with Housing Fund revenue. LO Rental Housing sales 7 1 12 Building Horizons 4 8 290,000 Rael apartment rehabilitation 14 14 350,000 Silverhawk apartment homes 75 75 3,000,000 Second trust deed loans 10 34 178 6,200,000 Subtotal: Project Area No. 1 17 128 287 $ 9,840,000 Aventine apartments 10 20 300,000 Hadley Villas Senior Apartments 80 80 887,000 Watercolors court homes 149 149 1,736,138 Second trust deed loans 8 14 500,000 Lennar courtyard homes 40 40 375,000 Vista Dunes courtyard homes 80 80 7,857,500 Subtotal: Project Area No. 2 160 207 383 $ 11,655,638 Total - 1999 to 2004 177 335 670 $ 21,495,638 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 23 Third Implementation Plan NEW HOUSING PROJ ECTS/PROG RAMS The Agency will continue to pro actively implement affordable housing initiatives in order to increase and improve the community's supply of affordable housing, and to achieve its affordable housing production mandates as detailed in the Second Affordable Housing Compliance Plan which follows this section. The following pages outline the programs and projects the Agency will undertake during this five year planning cycle. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2065 24 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS I LA QUINTA RENTAL HOUSING PROGRAM In 1995 the Agency purchased 50 units in Project Area No. 1 to secure the $1.2 million Agency investment which preserved 50 single-family units that were rented to very low- income Section 8 households. As homes became vacant or as existing tenants qualified, the Agency substantially rehabilitated the dwellings and sold them to very low-, low- or moderate -income households. To date, 12 of the 50 units have been sold, 7 to very low- income households, 4 to low-income households, and 1 to a moderate -income household. All of these dwellings feature 30 or 45 year affordability covenants. The Agency will continue to rent the remaining 38 dwellings until the existing tenants elect, and are qualified, to purchase their units, or the units are vacant and may then be sold to a very low-income household. The Agency will continue to substantially rehabilitate these dwellings prior to these sales. FIVE-YEAR PLAN ACTIVITIES The Agency will continue to rent the units until they are sold and anticipates substantially rehabilitating and selling two units per year. I EXPENDITURES Annual management and maintenance costs are expected to average $323,000. This cost is funded solely from rental income. No tax increment revenues are expected to be utilized for this program. I TIMELINE This is an ongoing program that will continue through the five-year cycle. I GOALS THIS PROGRAM WILL ADDRESS • Increase and Improve the Community's Supply of Affordable Housing • Promote Housing FBLIGHTING CONDITIONS THIS PROGRAM WILL ADDRESS 0 Deteriorated Residential Structures in the Cove La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 ' 25 Third Implementation Plan NEW HOUSING PROJECTSIPROGRAMS I LA QUINTA HOUSING PROG The Agency will continue to fund silent second trust deed mortgage loans that facilitate home purchases for low- and moderate -income households in both Project Area No. 1 and No. 2. Principal and interest payments on these second trust deed loans are not required as long as the dwellings remain affordable for 45 years. Initially, this program funded numerous second trust deed mortgage loans when home prices were reasonable in both Project Areas. However, rapidly increasing home values have significantly decreased the benefits associated with this program. The Agency anticipates phasing it out by Fiscal Year 2007-08, or sooner, if it continues to loose its effectiveness. FIVE-YEAR PLAN ACTIVITIES Staff estimates that five to ten households per year may apply for these second trust deed mortgage loans. I EXPENDIT A total of $4,618,240 is budgeted for this program during the five year planning cycle. I TIMELINE I The Agency will fund this program during the first four years of this five year planning cycle. This program may be terminated sooner if there is no demand for these loans. The funds would then be reallocated to other housing initiatives. I PLAN GOALS THIS PROGRAM WILL ADDRESS 0 Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROGRAM WILL ADDRESS 0 Not Applicable La Quinta Redevelopment Agency La Quinta Project No. 1 and Project No. 2 May 2005 26 Third Implementation Plan P t--? NEW HOUSING PROJECTS/PROGRAMS BUILDING HORIZONS PROJECT The Agency and the Boys and Girls Club have partnered in the construction of low- and moderate -income single-family homes in Project Area No. 1; 19 homes have been constructed over the past eleven years. This program, which uses Agency silent second trust deed loans, Will continue over the next five-year term at a rate of developing two new single-family dwellings per year that are subsequently sold to low- and moderate -income family households. PLAN ACTIVITIES This project will result in ten low -and/or moderate -income units developed from Fiscal Years 2004-05 through 2008-09. I EXPENDITURES I The Agency will advance $1,250,000 during the five year term; $425,000 Will be repaid during the five year term from home sale proceeds and $800,000 will be converted into silent second trust deed mortgage loans. I TIMELINE ] This project will continue over the five-year cycle. I PLAN GOALS THIS PROJECT WILL ADDRESS 0 Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I 0 Deteriorated Residential Structures in the Cove La Quinta Redevelopment Agency La QuInta Project No. I and Project No. 2 May 2005 27 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS I MULTI -FAMILY HOUSING REHABILITATION I This project entails completing the property rehabilitation and new construction activities associated with a 2001 Affordable Housing Agreement involving a 26 unit apartment complex located southeast of the intersection of Eisenhower Drive and Calle Tampico in Project Area No. 1. This Agreement provides up to $350,000, which when combined with property owner funding, facilitates the substantial rehabilitation of a 26 unit apartment complex and the development of a new six unit two and three bedroom multi -family apartment complex. In return, the Agency has secured 14 units that will remain affordable to moderate4ncome family households for 30 years. FIVE-YEAR PLAN ACTIVITIES A majority of the property rehabilitation activities have been completed and the owner has secured the required entitlements to build the new six unit apartment complex. The 14 affordable units have been secured in the existing 26 unit apartment complex. I EXPENDIT:U:R=ES The Agency anticipates that it will invest the remaining $276,411 by the end of Fiscal Year 2004-05. I TIMELINE These activities started in Fiscal Year 2001-02 and should be completed by Fiscal Year 2006-07. � PLAN GOALS THIS PROJECT WILL ADDRESS • Eliminate Blight • Assemble Parcels • Promote Housing • Increase and Improve the Community's Supply of Affordable Housing BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS * Substandard Structure Design La Quinta Redevelopment Agency La QuInta Project No. I and Project No. 2 May 2005 28 Third Implementation Plan NEW HOUSING PROJECTSIPROGRAMS I VISTA DUNES COURTYARD HOMES I The Agency will complete resident relocation activities and build 80 new single-family and duplex units that will be rented to very low-income family households. I FIVE-YEAR PLAN ACTI Relocation activities will be concluded by December 2005. Improvement demolition will commence in January 2006, with new home construction starting by the second quarter of 2006. Assuming a 12 month construction time period, the new dwellings should be ready for occupancy by the summer of 2007. I EXPENDIT The Agency anticipates that it will invest $22,000,000 in this project during the five. year planning cycle. I TIMELINE These activities started in Fiscal Year 2004-05 and should be completed by Fiscal Year 2006-07. PLAN GOALS THIS PROJECT WILL ADDRESS 0 Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I • Unsafe/Dilapidated/Deteriorated Buildings • Inadequate Public Infrastructure/Facilities • Residential Overcrowding La Quinta Redevelopment Agency La QuInta Project No. I and Project No. 2 May 2005 29 Third Implementation Plan NEW HOUSING PROJECTS/PROG RAMS I DUNE PALMS MULTI -FAMILY HOUSIN In 2004 the Agency purchased a 27.75 acre parcel located on Dune Palms Road, south of Highway 111, in Project Area No. 2. Appro)dmately 15 acres is slated for up to 300 apartment homes that will be rented to very low-, low- and moderate -income households. Developer proposals have been submitted and the Agency anticipates selecting a developer by the summer of 2005. Site planning and project structuring1financing negotiations will subsequently take place which should generate an affordable housing agreement by the first quarter of 2006. Assuming a 24 month period to secure building permits and construct the apartment home complex, the units should be available for occupancy in 2008. I FIVE-YEAR- PLAN ACTI During the five year term of this Implementation Plan the Agency will select a developerloperator, conclude an affordable housing agreement, complete site and building planning activities, and facilitate the construction and resident occupancy of the apartment home community. I EXPENDITI The Agency anticipates that it will invest $20,050,965 in this development during the five year planning cycle. I TIMELINE These activities started in Fiscal Year 2004-05 and should be completed by Fiscal Year 2007-08. I PLAN GOALS THIS PROJECT WILL ADDRESS I 0 Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I • Inadequate Public Infrastructure/Facilities • Residential Overcrowding La QuInta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 30 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS I WATERCOLORS COURT HOMES I This development will generate 149 single-family court homes that will be sold to moderate income households aged 55 years and older. The dwellings will remain affordable for 45 years with the affordability component secured through silent second trust deed mortgage loans. PLAN ACTIWT�IES The remaining municipal fee costs were funded in Fiscal Year 2004-05 and the silent second trust deed loans will be funded during Fiscal Year 2005-06. I EXPENDIT-U-R-E-S-] A total of $7,150,000 will be expended on project activities during this planning period, $150,000 on municipal fee costs and $7,000,000 on silent second trust deed mortgage loans. I TIMELINE I The homes are under construction and prospective buyers are being qualified. The second trust deed mortgage loans should be funded during Fiscal Year 2005-06. When the loans are funded the affordability covenants will be recorded against each dwelling. I PLAN GOALS THIS PROJECT WILL ADDRESS I * Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I 9 Inadequate public infrastructure/facilities La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 31 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAIVIS I LENNAR COURT HOMES I The Agency will fund 40 silent second trust deed mortgage loans to accommodate home purchases by moderate -income family households. This project is part of a larger development program for a 55-acre parcel located southeast of the intersection of Washington Street and Miles Avenue. In 2003 the Agency approved the Disposition and Development Agreement with Centre Point that facilitates hospitality, medical office, residential and park uses on this property. I FIVE-YEAR PLAN ACTI The Agency will fund silent second trust deed mortgage loans to facilitate home purchases at affordable costs by moderate -income family households. I EXPENDIT A total of $2,520,000 will be expended on silent second trust deed mortgage loans. I TIMELINE ] The Agency anticipates funding the silent second trust deed mortgage loans in Fiscal Year 2007-08. I PLAN GOALS THIS PROJECT WILL ADDRESS I 0 Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I 0 Inadequate public infrastructure/facilities La QuInta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 32 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS I MOBILE HOME PARK REHABILITATION I This project would entail either working with the existing owner or purchasing the Dune Palms Mobile Home Park, located in Project Area No. 2, to rehabilitate the infrastructure, replace the existing dilapidated mobile home coaches with new mobile or modular home units, and secure up to 100 affordable housing covenants that would remain affordable to very low- and low-income families for 55 years. I , PLAN ACT Discussions with the Park owner will continue during Fiscal Year 2005-06. Acquisition activities (if required) may also start during Fiscal Year 2005-06, with park and home rehabilitation activities commencing in Fiscal Year 2006-07 and continuing through the five year planning period. I EXPENDITURES I The estimated five-year expenditures for this project are $18,000,000. I Implementation will occur from Fiscal Years 2005-06 through 2008-09. I PLAN GOALS THIS PROJECT WILL ADDRESS I • Eliminate Blight • Upgrade Urban Design Standards • Invest in Infrastructure • Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I • Unsafe/Dilapidated/Deteriorated Buildings • Physical Condifions that Limit the Economic Viability and Use of Lots/Buildings • Residential Overcrowding La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 33 Third Implementation Plan NEW HOUSING PROJECTS/PROGRAMS I PROPERTY ACQUISITION I The Agency has sold, or is in the process of selling all of the vacant property it acquired since 1995 to accommodate affordable housing development. In order to meet its housing mandates, it will continue to identify and purchase new properties that may accommodate affordable housing. Since a majority of land within both Project Areas is either developed or committed for development, it will also evaluate purchasing property outside of the Project Areas, but within the City limits, in order to facilitate affordable housing development on a two to one basis. I FIVE-YEAR PLAN ACTI Staff is identifying sites as part of the City's annexation efforts. Property acquisition expenditures would commence in Fiscal Year 2005-05 and continue through Fiscal Year 2008-09. I EXPENDITURES I Land acquisition costs are estimated to total $7,000,000 during the five year planning period. I TIMELINE ] Property identification and acquisition activities would occur in Fiscal Years 2005-06 through 2008-09. I PLAN GOALS THE PROJECT WILL ADDRESS I • Ensure Quality Design and Development • Assemble Parcels • Correct Underutilized lots • Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I 0 Improve Facilities/infrastructure La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 34 Third Implementation Plan NEW HOUSING. PROJECTS/PROGRAMS ,IVE/WORK HOUSING I This program will involve the construction of a mixed -use development of commercial, office and affordable residential units in the Village, located in Project Area No. 1. The housing units would be affordable to very low-, low- and moderate -income households. I FIVE-YEAR PLAN ACTIV-1-T-I-E-S-] The program is currently in the planning stages. Staff is identifying potential sites and the costs associated with purchasing these sites and facilitating mixed use development proposals. Preliminary project structuring work would occur during Fiscal Year 2005-06, with site acquisition occurring in 2006-07. I EXPENDIT Project costs are estimated at $1,150,000; $150,000 for planning activities and $1,000,000 for property acquisition costs. Planning activifties will continue through Fiscal Year 2005-06 with property acquisition in Fiscal Year 2006-07. I PLAN GOALS THE PROJECT WILL ADDRESS I • Expand Commercial Base • Ensure Quality Design and Development • Address Irregular Lots • Assemble Parcels • Correct Underutilized lots • Increase and Improve the Community's Supply of Affordable Housing I BLIGHTING CONDITIONS THIS PROJECT WILL ADDRESS I • Mixed and Incompatible Uses • Stagnant Commercial Activity La QuInta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 35 Third Implementation Plan 7 SECOND HOUSING COMPLIANCE PLAN This document is the Second Affordable Housing Compliance Plan ("Second Compliance Plan") for La Quinta Redevelopment Project No. 1 ("Project No. 1") and Redevelopment Project No. 2 ("Project No. 2") of the La Quinta Redevelopment Agency ("Agency"). This Second Compliance Plan replaces the Agencys First Affordable Housing Compliance Plan (adopted on December 1994 and subsequently amended in March 1998 and July 1999) to update Agencys affordable housing activities since 1994. In 1994, the Agency initiated a ten-year affordable housing effort to produce 1,672 inclusionary housing units estimated to be needed by 2004 to meet its housing mandate. Since then, the Agency has produced 1,031 affordable housing units. Legal Requirements The California Community Redevelopment Law, Health and Safety Code Section 33000, et. seg. ("Law"), sets forth the requirement to prepare a plan that outlines how the Agency will achieve its affordable housing production objectives for a ten year period. This Second Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low-, low-, and moderate -income housing units Will be produced in La Quinta Redevelopment Project Area No. 1 ("Project Area No. 1 ") and La Quinta Redevelopment Project Area No. 2 ("Project Area No. 2") or ("Project Areas") for a ten-year period (Fiscal Years 2004-05 through 2013-14), and how the Agency will erase the deficit in affordable unit production that it did not achieve during the previous ten year planning period. Contents This Second Compliance Plan has been developed to: Account for the number of affordable dwelling units, either constructed or substantially rehabilitated, in both Project Areas since their respective adoptions Assess eAsting needs for the production of affordable housing as a result of the construction or substantial rehabilitation of dwelling units since the Project Areas were adopted Present the estimated number of dwelling units to be privately developed or substantially rehabilitated between 2004-05 and 2013-14 and over the duration of the respective Redevelopment Plans for the Project Areas Forecast the number of dwelling units to be developed or substantially rehabilitated by the Agency between 2004-05 and 2013-14 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 36 Second Affordable Housing Compliance Plan SECOND HO(ISING.COMPLIANCE PLAN Identify City/Agency and other revenue sources for funding affordable housing production Identify implementation policies/programs and -potential sites for affordable housing development Establish a schedule of actions for implementing this Second Compliance Plan so as to ensure that the Agency's affordable housing mandate is being achieved Review the affordable housing goals, objectives, and programs contained in the November 2004 City of La Quinta Housing Element Update ("Housing Elemenn to confirm this Second Compliance Plan is consistent with the Housing Element. Background On November 29, 1983 the Agency adopted the Redevelopment Plan for the Project Area No. 1, establishing the Agency's first redevelopment project area which encompasses 17.5 square miles. Project Area No. 1 is located in the southern portion of the City and includes land designated for commercial, office, residential, retail, institutional, recreational, and public uses. Project Area No. 1 is generally bounded by Avenue 50 to the north, Jefferson Street and Madison Streets to the east, Avenue 60 to the south, and the City limit boundary on the west. At the time of its adoption, Project Area No. 1 included 2,240 dwelling units according to its Report to Council. The Agency established its second redevelopment project on May 16, 1989 with the adoption of the Redevelopment Plan for Project Area No. 2. Essentially, Project Area No. 2 encompasses a major portion of the City north of Avenue 50. Covering an area of 3,116 acres, Project Area No. 2 includes residential, commercial and institutional uses. Project Area No. 2 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. Also included within Project Area No. 2 are properties located west of Washington Street, north of the prolongation of the future alignment of Avenue 48; properties surrounding Point Happy north of Highway 111 and west of Washington Street-, and property east of Jefferson Street and north of Highway 111. According to its Report to Council, Project Area No. 2 contained 609 dwelling units at the time of its adoption. Purpose . Since 1976, redevelopment agencies have been required to assure that at least 15% of all new or rehabilitated units developed within a redevelopment project area by entities other than a redevelopment agency are available at affordable costs to households of very low-, low-, or moderate -income. Of this 15%, not less than 40% of the affordable units must be affordable to very low-income households (50% or below of area median income). Further, at least 30% of all new or rehabilitated dwelling units developed within a project area by a redevelopment agency are made available at affordable costs to low - or moderate -income households. Of this 30%, not less than 50% of the dwelling units must be available at affordable costs to very low-income households. These La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 37 Second Affordable Housing Compliance Plan SECOND 1­106�ING COMPLIANCE PLAN requirements are applicable to housing units as aggregated and not on a case -by -case basis to each dwelling unit created or rehabilitated unless so required by a redevelopment agency. The Law requires agencies to adopt an affordable housing compliance plan that identifies how the redevelopment agency Will achieve the aforementioned affordable housing production requirements for each project area. The compliance plan must be consistent with the jurisdiction's housing element and must also be reviewed and, it necessary, amended at least every five years in conjunction with the cyclical preparation of the housing element or the agencys five-year implementation plan. If, at the end of each ten year planning period, the affordable housing production goals are not realized, the Law requires that a redevelopment agency meet the production goals on an annual basis unfit the requirements for the previous ten year period are met. Should an agency exceed the production requirements within the ten year period, the Law allows an agency to count the units that exceed the requirements to meet housing production requirements during the next ten year period. Agency Housing Funds The Agency is required to allocate 20% of the tax increment revenue it receives from both Project Areas to increase and improve housing affordable to very low-, low-, and moderate -income households. A separate Housing Fund has been established for this revenue. The Agency may invest this revenue in new construction and rehabilitation activities in both Project Areas. To date, the Agency has expended this revenue on new construction, rehabilitation, and rental housing assistance. Definitions and Data Compilation This Second Compliance Plan takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoption in order to determine affordable housing production needs; it includes figures for existing residential construction and substantial rehabilitation, and projections for the number of additional dwelling units to be constructed or substantially rehabilitated during the ten-year planning period. The following narratives define "new construction" and "substantially rehabilitated" as used in this Second Compliance Plan. New Construction. Construction statistics were provided by the City of La Quinta's, planning staff. Because the Law does not provide a clear definition for new construction, Agency staff, consultant, and legal counsel have agreed upon a "definition" for new construction. For the purposes of this Second Compliance Plan, building permits issued for the construction of new dwelling units since the respective adoption dates of the Project Areas are considered to be new construction dwelling units; therefore, these units generate the Agency's affordable housing production requirements. Future dwelling unit construction projections were determined by identifying the build out capacity of all vacant and underdeveloped parcels within both Project Areas, based upon existing land uses and recent historical trends of building pen -nits issued for residential units. The City Community Development Department staff La Quinta Redevelopment Agency La QuInta Project No. I and Project No. 2 May 2005 38 Second Affordable Housing Compliance Plan SECOND HOUSING COMPLIANCE PLAN does not anticipate the Project Areas will experience build out within the ten year time frame covered by this Second Compliance Plan. Substantial Rehabilitation. The Law defines "substantial rehabilitation" as: "....rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. " "Substantially rehabilitated dwelling units�" means: '....a# units substantially rehabilitated with agency assistance." Research indicates that the only units that have undergone substantial rehabilitation are those that have been part of the Agency's, affordable housing activities. These units have been included in the overall housing production requirements. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 39 Second Affordable Housing Compliance Plan C9 AFFORDABLE HOUSING ACTIVITIES This section reviews the number of dwelling units which have been destroyed/removed by the Agency to date, the number of privately developed or substantially rehabilitated units for both Project Areas, and the Agency's affordable housing production efforts to date. Dwellings Destroyed or Removed Directly or Indirectly by Agency to Date As of May 2005, the Agency has demolished 78 dilapidated mobile home units that housed very low-, low- or moderate -income persons or families at the Vista Dunes Mobile Home Park in Project Area No. 2. The Agency will be replacing these units, on a one for one basis, in the Vista Dunes Courtyard Homes development and the Dune Palms Multi -Family Housing development, both of which are further described later in this Second Compliance Plan. Dwellings Constructed/Substantially Rehabilitated within the Project Areas Based upon data provided by the City's Community Development Department, the total number of new housing units constructed and/or substantially rehabilitated in Project Area No. 1 ("PA 1") and Project Area No. 2 ("PA 2") from adoption to Fiscal Year 2003- 04 is presented below: 198311989 to 1994 3,824 904 4,728 1994 to 2004 2,568 3,852 6,420 Total: 1983-1989 to 2004 6,392 4.756 11,148 This new housing construction or substantial rehabilitation activity generated the following affordable housing production requirements for the Agency: iyjm� �. 1983/1989 to 1994 284 425 709 1994 to 2004 385 578 963 Subtotal: 1983/1989 to 2004 669 1,003 1,672 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 40 Second Affordable Housing Compliance Plan AFFORDABLE HOUSING ACTIVITIES Affordable Housing Developed or Substantially Rehabilitated Since 1994 the Agency has facilitated the production or substantial rehabilitation of 1,031 affordable dwellings that feature 30, 45 or 55 year covenants that insure the dwellings Will remain affordable for that time period. The Law initially required 30 year covenants but was amended in 2002 to increase this period to 45 years for owner occupied dwellings and 55 years for rental dwellings. The chart that follows identifies the Project Area, project/program and the income level of the affordable dwellings produced as of May 2005. Stockman 9 6 is LQ Rental Housing sales 7 4 1 12 LQ Rental Housing rental units 38 38 Coachella Valley Housing Coalition Sweat Equity 5 5 10 Building Horizons 1 14 8 23 Seasons Seniors 45 46 91 Williams Development single family 6 14 20 Rae] apartment rehabilitation 14 14 SilverHawk apartments 75 75 Second trust deed loans 10 134 44 188 Subtotal: Project Area No. 1 121 218 147 486 Mira Flores senior apartments 94 24 118 Mira Flores single family 44 44 Aventine apartments 10 10 20 Hadley Villas senior apartments 80 80 Watercolors court homes 149 149 Second trust deed loans 6 8 14 Lennar court homes 40 40 Vista Dunes Courtyard Homes 80 80 Subtotal: Project Area No. 2 160 110 275 545 Total Produced/Approved - 1994 to 2004 281 328 422 1,031 While the Agency has made significant progress towards producing affordable units, it still has a production deficit. Private development and substantial rehabilitation activities in both Project Areas created an affordable housing production requirement of 1,672 units (as of Fiscal Year 2004-05); 669 units must be affordable to very low- income households. The Agency has secured 1,031 affordable units to date (641 units short of the required number) of which 281 are affordable to very low-income households (388 units short of the required number). The Agency Will correct this deficit during the ten year planning period of this Second Compliance Plan. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 41 Second Affordable Housing Compliance Plan AFFORDABLE HOUSING ACTIVITIES The chart below presents the affordable housing production needs from the respective adoption of Project No. 1 and Project No. 2 to Fiscal Year 2003-04, from Fiscal Year 2004-05 through 2013-14, and for the remaining life of the Project No. I and Project No. 2 Redevelopment Plans. During the ten year planning period of this Second Compliance Plan, the Agency is projected to need 230 affordable units of which 92 must be affordable to very low- income households. This is in addition to the 641 unit deficit that remains from the previous ten year planning period (1994-2004). During this Second Compliance Plan, the Agency must produce a projected 871 affordable dwellings of which 483 must be affordable to very low-income households. The Agency is projected to need a total of 1,994 affordable dwellings, of which 798 must be affordable to very low-income households, by the end of the effectiveness periods of the Project No. 1 and Project No. 2 Redevelopment Plans. kljffl� �, 1983/1989 to 1994 284 425 709 1994 to 2004 385 578 963 Total: 1983/1989 to 2004 669 1,003 1,672 Second Housing Compliance Plan 2004-05 to 2013-14 92 138 230 2013-14 to 2023/2029 (Redevelopment Plan Effectiveness) 37 55 92 Total Projected Inclusionary Housing Need 798 1,196 1,994 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 42 Second Affordable Housing Compliance Plan FINANCIAL RESOURCES The Agency deposits 20% of tax increment revenue allocated to the Agency into separate housing funds for each Project Area. For purposes of this Second Compliance Plan, the revenue and expenditures for both Project No. I and Project No. 2 are combined into one revenue and expenditure schedule. The Agency implements its housing program as one comprehensive program. Projections of Housing Fund revenues for both Project Areas are presented on the following pages. Expenditures include debt service payments for the Agency's Series 1994 tax allocation bonds and for the La Quinta Financing Authority's 2004 Housing Bonds, housing program administration costs, and housing program expenditures. 2004-05 2005-06 2006-07 2007-08 2008-09 Revenue beginning fund balance $ 9.512,242 $ 61,979,947 $ 10,513,095 $ 6,139,592 $ 907,479 Project No. 1 tax increment 6,480,979 6,675,408 6,925,102 7.380,485 8,127,261 Project No. 2 tax increment 3,345,543 3,445,910 3,678,017 3,906,459 4,107,203 2004 Finance Authority Bond 56,736,017 LQ rental program income 341,000 33ZODO 323,000 314,000 305,000 2nd trust deed home sale income 660,000 150,000 150,000 150,000 150,000 Building Horizons home sale income 85,000 85,000 85,000 85,000 85,000 interest income 20,800 40,700 42,800 57,800 50,000 Total Revenue $ T7,181,581 $ 72,708,965 $ 21,717,014 $ 18.033,336 $ 13,731,9" Expenditures 2004 Finance Authority Bond 2,990,049 5,171,981 5,923,156 5,926,806 5.919,994 1994 bond payments 483,246 480,575 479,789 479,301 478,083 housing program administration 1,454,589 1,289,448 1,201,477 1,235,750 1.236,869 LQ rental program 150,000 332,000 323,000 314,000 305,000 2nd bust dead loan program 3,618,240 500,000 250,000 250,000 foreclosure acquisition 650,000 150,000 150,000 150,000 150,000 Building Horizons 250,000 250,000 250,000 250,000 250,000 multi -family housing rehabilitation 276,411 Vista Dunes Courtyard Homes 5,128,134 16,871,866 Dune Palms multi -family 50,965 20,000,000 Watercolors court homes 150,000 7,000,000 Lennar court homes 2,520,000 mobile home park rehabilitation 7,000,000 4,000,000 4,000,000 3,000,000 property acquisition 3,000,000 2,000,000 1,000,GOO 1,000,000 Village mixed use housing 150,000 1,000,000 1,000,000 500,000 new housing production Total Expenditures $ 15,201.634 $ 6ZI95,870 $ 15.5T7,422 $ 17,125,857 $ lZ839,946 Year End Fund Balance $ 61,979,947 $ 10,513,095 $ 6,139,592 $ 907,479 $ 891,998 La Quinta Redevelopment Agency La Quints Project No. I and Project No. 2 May 2005 43 Second Affordable Housing Compliance Plan 2 FINANCIAL RESOURCES 2009-10 2010-11 2011-12 2012-13 2013-14 Revenue beginning fund balance $ 891,998 $ 2,223,576 $ 3,027.798 $ Z419,647 $ 2,818,045 Project No. 1 tax increment 8,827.443 9,192,264 9,564,381 9,847,755 10,106,192 Project No. 2 tax increment 4,311,962 4,520,817 4,733,848 4,968,023 5,189,999 2004 Finance Authority Bond LQ rental program income 200.000 150,000 100,0()0 100,000 100,000 2nd trust deed home sale income 100,000 100,000 100.000 100.000 100,000 Building Horizons home sale income 85,000 85,000 85,000 85,000 85,000 interest income 50,000 50,000 50,000 50,000 50,000 Total Revenue $ 14,466,404 $ 16,321,657 $ 17,661,027 $ 17,570,425 $ 18,449,236 Expenditures 2004 Finance Authority Bond 1994 bond payments housing program administration LQ rental program 2nd trust deed loan program foreclosure acquisition Building Horizons mufti -family housing rehabilitation Vista Dunes Courtyard Homes Dune Palms multi -family Watercolors court homes Lermar court homes mobile home park rehabilitation property acquisition Village mixed use housing new housing production Total Expenditures Year End Fund Balance 5,702,548 5,702,947 5,701,072 5,702,380 5,702,192 490,280 490,911 490,307 1,300,000 1,400,000 1,400,000 1,450,000 1,500,000 250,000 200,000 150,000 100,000 50,000 200,000 200,000 200,000 200,000 200,000 300,000 300,000 300,000 300,000 300.000 2,000,000 2,000,000 5,000,000 7,000,000 7,000,000 7,000,000 $ 12,242,828 $ 13,293,858 $ 16,241,379 $ 14,752,380 $ 14,752,192 $ 2,223,576 $ 3,027,798 $ 2,419.647 $ 2,818,045 $ 3,697,044 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 44 Second Affordable Housing Compliance Plan FINANCIAL RI�SOURCES Per the Law, the Agency's housing fund expenditures must be in proportion to the community3s total population of very low to moderate -income households, as well as the proportion of the population both over and under 65. The chart that follows presents the minimum thresholds for housing fund expenditures during the ten year term of this Second Compliance Plan. Basically, during the ten year planning period of this Second Compliance Plan the Agency's total housing fund expenditures must be aligned with the percentages outlined below. Minimum Percentage Household Type of Housing Fund Expenditures Very Low-income Households - Based on community's need for housing for households eaming less than 50% of county median income. 28% Low-income Households - Based on communitys need for housing for households eaming less than 80% of county median income. 22% Moderate -income Households - Based on communitys need for housing for households earning less than 120% of county median income. 11% Households Under Age 65 87% Households Over Age 65 13% This data was derived from the 2000 U.S. Census and the Housing Element. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 45 Second Affordable Housing Compliance Plan 0 NEW HOUSING PROJECTS/P11--OGRAMS This section presents the strategies the Agency will pursue to meet the production requirements for the ten year planning period of the Second Compliance Plan. During the ten year planning period of this Second Compliance Plan, the Agency is projected to need 230 affordable units of which 92 must be affordable to very low-income households. This is in addition to the 641 unit deficit that remains from the previous ten year planning period (1994-2004). During this Second Compliance Plan, the Agency must prod ' uce a projected 871 affordable dwellings of which 483 must be affordable to very low-income households. The Agency will pursue the following programs to produce needed affordable housing for the remainder of the ten year cycle. Building Horizons. The Agency will continue to fund this program that is sponsored by the Boys and.Girls Club of Coachella Valley. During the ten-year period, the Agency anticipates that this program will generate 20 affordable dwellings, of which 10 will be affordable to moderate -income households and 10 affordable to low-income households. All of these dwellings will be affordable to households under the age of 65. - Estimated Units to be Produced: 20 at 2 units per year. Dune Palms Multi-Famil . The Agency owns an appro)dmately 15 acre parcel that is located west of Dune Palms Road, north of Avenue 48. During Fiscal Year 2004-05 that the Agency has solicited developer proposals and will select a development team to design, finance, construct and manage these apartment homes in 2005. Construction should commence in 2006 with occupancy by 2008. The Agency anticipates obtaining 250 apartment homes on this property, of which at least 122 units will be affordable to very low- income households. The remaining units will be affordable to low- and moderate -income households. If additional very low-income units can be obtained, the Agency will seek to do so. All of these units will be affordable to households under the age of 65. - Estimated Units to be Produced: 300 with anticipated opening by 2008. Mobile Home Park Rehabilitation. The Dune Palms Mobile Home Park, located in Project Area No. 2, is in a dilapidated condition. The Agency is initiating discussions With the current owner to either work with the owner to rehabilitate the park and install new mobile or modular home units, or purchase the park and rehabilitate this housing stock and secure dwellings that would remain affordable to very low-income family households for 55 years. AJI of these units would be affordable to households under the age of 65. - Estimated Units to be Produced: 100 with anticipated opening by 2008. La Quinta Housing Program. The Agency will continue to implement the La Quinta Housing Program to facilitate the production of affordable housing units throughout the Project Areas. While this program effectiveness has diminished over the past two years, the Agency anticipated that it will fund 20 La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 46 Second Affordable Housing Compliance Plan NEW HOUSING PROJECTS/PROGRAMS to 40 silent second trust deed mortgage loans during the first four years of the ten-year planning cycle. These loans facilitate home purchase opportunities for low- and moderate -income family households. All of these units would be affordable to households under the age of 65. - Estimated Units to be Produced: 32 with 8 per year during the next 4 years. Village Live/Work Housing. This program entails facilitating the construction of mixed -use developments in the Village area consisting of commercial uses and housing. The housing units could potentially be lofts above first floor businesses, and may be affordable to low- and very low-income households. This program is still in the planning stages, and potential sites, specifics regarding the development and the affordability mix, have not been determined as of the date of the Second Compliance Plan. However, based upon preliminary planning activities, the Agency may secure up to 50 affordable units through this effort. AJI of these units would be affordable to households under the age of 65. - Estimated Units to be Produced: 50 with 10 per year starting in Fiscal Year 2007-08. Proverty Acquisition. The remaining land inventory the Agency assembled during the past ten years has been sold or otherwise committed for development. With the adoption of this Second Compliance Plan, the Agency will be initiating an acquisition effort to secure sites for new affordable housing development both within the Project Areas, and where feasible, out of the Project Areas, but within the community. This effort will be necessary to generate the remaining 420 affordable units that the Agency must achieve during the 10 year planning term of this Second Implementation Plan. The Law does allow the Agency to meet affordable housing requirements by providing affordable housing units outside of the Project Areas on a two -for - one basis. The Agency has adopted Resolutions for both Project Areas to allow the use of housing funds outside of Project Area boundaries. These units will be affordable to households under the age of 65. - Estimated Units to be Produced: 420 with 55 per year starting in Fiscal Year 2006-07. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 47 Second Affordable Housing Compliance Plan HOUSING ELEMENT COMPLIANCE Because this Second Compliance Plan focuses on providing housing for very low- and low-income households who are generally the most difficult segment of the community to provide housing for, it is consistent with the Housing Element!s goal to provide housing for all economic groups within the City. Both this Second Compliance Plan and the Housing Element state there is a definite need to assure an adequate supply of housing for the lower income segments of the City. It should be noted, however, that the Regional Housing Needs Assessment (RHNA) prepared by SCAG for the City of La Quinta shows that the greatest housing concentration need through 2005 will be generated and above moderate -income households. Tile future need determined by SCAG shows 21% of the need for moderate -income households and 48% of the households need as above moderate. A major focal point of the goals policies and objectives of the Housing Element is to provide housing for all economic segments of the City, especially very low- and low-income families. Because the major goal of this Second Compliance Plan is also to provide housing for these households, and the proposed plans and programs for improving the supply of affordable housing in the City presented in this Second Compliance Plan are similar to plans and policies of the Housing Element, there is clearly a high degree of consistency between the Second Compliance Plan and the Housing Element. La Quinta Redevelopment Agency La Quinta Project No. I and Project No. 2 May 2005 48 Third Implementation Plan