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HomeMy WebLinkAboutReso RDA 17-1996 RESOLUTION NO. 17-96 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION APPROVING THE HOUSING REPLACEMENT PLAN FOR THE REDEVELOPMENT AGENCY WHEREAS, California Community Redevelopment Law requires that when low and moderate income housing units are destroyed, they must be replaced with low and moderate income housing units; and WHEREAS, the Redevelopment Agency anticipates the destruction of two single family units at 432 Baden Avenue and 429 Third Lane, which are occupied by low income households, in conjunction with the development of a public parking lot; and WHEREAS, the Agency therefore has an obligation to replace these two units with housing affordable to low income households; and WHEREAS, the McLellan site located at 1450 E1 Camino is suitable for replacement housing to be ready for occupancy by January, 1999; NOW, THEREFORE, BE IT RESOLVED, by the Redevelopment Agency of the City of South San Francisco that: 1. It hereby approves the Housing Replacement Plan attached as Exhibit A. . 2. The Executive Director is hereby directed to prepare and execute the documents relative to the Plan. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a r~gu]ar meeting held on the 18th day of December , 1996, by the following vote: AYES: B~ardm~.mh~.r.~ Eugene R. Mullin, John R. Penna, Robert Yee and £hairman ,]o~eph A. Fernekes NOES: Nnn~ ABSTAIN: N0n~ ABSENT: None housing Redevelopment Agency of the City of South San Francisco REPLACEMENT HOUSING PLAN FOR THE CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY Replacement Housing Requirements When residential units housing low and moderate income persons are destroyed or taken out of the low and moderate income market as part of a redevelopment agency project, the agency must replace those units with new or newly rehab'flitated low and moderate income units. Prior to acquiring property or approving an agreement that will lead to the destruction or removal of low and moderate income housing units, an agency must adopt by resolution a Replacement Housing Plan. The Replacement Housing Plan must include: The general location of housing to be rehab'flitated, developed, or constructed to meet the particular replacement housing requirement. The number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation. · An adequate means of financing such rehabilitation, development or construction. · The timetable for meeting the plan's relocation, rehab'flitation, and replacement housing objectives. · A finding that the replacement housing does not require the approval of the voters pursuant to Article 34 of the California Constitution, or that such approval has been obtained. The Agency must replace any low and moderate income units removed or destroyed within 4 years of destruction or removal For dwelling units destroyed or removed al[er September 1, 1989, Community Redevelopment Law requires that 75 percent of the replacement units be available at affordable housing cost to the same income level of households (very low, low, or moderate income) as the households displaced from the units removed or destroyed. In addition, the 1990 Settlement Agreement between the Redevelopment Agency and the South San Francisco Housing Action Committee obligates the Agency to replace 100% of the housing units occupied by households with low or very low incomes with housing that is affordable to the same income levels as those who were occupying the destroyed or removed units. Such units may be located anywhere within the City of South San Francisco. R[$01. tJIION N0. 17-96 £XHIBIT Units To Be Destroyed The City of South San Francisco Redevelopment Agency anticipates the destruction of two single family units at 432 Baden Avenue and 429 Third Lane in conjunction with the developmem of a public parking lot. The unit at 432 Baden Avenue is 1,276 square feet, contains two bedrooms, and is occupied by a low income family paying rent of $800 per month. The unit at 429 Third Lane is 1,050 square feet, contains two bedrooms, and is occupied by a low income family paying rent of $700 per month. Since the two units must be replaced at the same income level as those destroyed, the Agency has an obligation to replace two units affordable to low income Location And Development Of Replacement Housing_ The Agency has identified the following site which is suitable for replacement housing: McLellan Site Located At 1450 El Camino. This 31-acre site is proposed for joint venture development of single family homes, townhomes, and affordable housing. This site is located in the E1 Camino Corridor Redevelopment Project Area, which has an indusionary requirement that 15% of the dwelling units constructed must be affordable to low and moderate income households. Mid-Peninsula Housing Coalition, a non-profit affordable housing developer, has expressed interest in developing a portion of the site. It is anticipated that approximately 32-35 units affordable to low, very low, and moderate income households will be buu"t at the site. The developmem of this site will more than meet the requiremem of providing two low income units of replacement housing. Other Potemial Housing Opportunities Mid-Peninsula Housing Coalition has also been considering the feas~flity of developing affordable housing units at other locations in the City. The City Council would first be asked for concurrence prior to any action being taken on any of these sites. The sites that are being investigated by Mid-Perfin.~da Housing Coalition are as follows: 1. Kaiser Site Located At Orange Avenue And Railroad Avenue. This 19-acre site is also suitable for a joint venture development including . affordable housing. Mid-Penin.qula Homing Coalition estimates that they could build 80 family units on 4 acres or 100 senior units on 3 acres at the site. 2. Broadmoor Lmnber Site Located At 1350 El Camino This 3.47 acre site could be developed with 104 units, grouped in an arrangement oftownhouses and apartments, containing a mix of two-, three- and four-bedroom units. 3. Southwest Comer of Oak Avenue and Grand This 1 acre site could be developed with 31 units of two-, three-, and four- bedroom townhouses and apartments. Financing Of Replacement Homing Preliminary proformas developed by Mid-Peninsula Homing Coalition estimate subsidies needed for development of affordable units will be approximately $50,000 - $80,000 per unit, depending on occupant income levels served and the types of financing utilized. These subsidies can be obtained through a variety of sources of available funds. These sources include Federal Low Income Homing Tax Credits, HOME funds, Community Development Block Grant funds, redevelopment tax increment, and private financing. Timetable For Meeting Replacement Housing Objective The housing units at the McLellan site are projected to be ready for occupancy by January, 1999. Therefore, the two replacemem units will be developed within the required four-year period. Mid-Peninsula Housing Coalition estimates that any of the other potential development sites previously mentioned would take approximately two and one-half years l~m site control through construction completion. Article 34 ApProval Article 34 of the California Constitution requires that voter approval be obtained before any "state public body" develops, constructs or acquires a "low rent housing project." To clarify the requirements of Article 34, the Legislature enacted the Public Homing Election Implementation Law. This legislation specifically exempts each of the following types of developments from the requirement of voter approval: 1. Replacement of an existing low rent housing project or a project previously or currently occupied by lower-income households. 2. Privately owned housing which is exempt from property taxation applicable to specified housing developments operated by nonprofit emities and in which not 'more than 49% of the units are occupied by low-income persons. Article 34 voter approval will not be required for the two replacement units, and it is anticipated that the non-profit housing developer will deed restrict no more than 49% of the total affordable units at the McLellan site, thereby exempting the development from Article 34 approval C:~msoffice\winwo~.doc 12\ ! 8~6X