SR-414-003 (2)
Attachment A
SANTA MONICA REDEVELOPMENT AGENCY
FIVE-YEAR IMPLEMENTATION PLAN AND
AMENDED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN
EXECUTIVE SUMMARY
Introduction
Since 1994, the California Community Redevelopment Law has required that all
redevelopment agencies adopt a five-year implementation plan and a ten-year
affordable housing compliance plan. This year, the Redevelopment Agency of the City
of Santa Monica is due to adopt its second Five-Year Implementation Plan (for fiscal
years 1999-00 through 2003-04) as well as amend its current Affordable Housing
Compliance Plan (for fiscal year 1994-95 to 2003-04). Together with the Agency?s
redevelopment consultant and legal counsel, staff has prepared both of these updated
Plans for Agency consideration on November 16, 1999. At this meeting, the Agency will
conduct a public hearing on the new Implementation Plan and Amended Affordable
Housing Compliance Plan, and consider adoption of both.
Both the Implementation Plan and Amended Affordable Housing Compliance Plan are
described below.
Five-Year Implementation Plan
Pursuant to Section 33490 of the Redevelopment Law, the 1999-00 through 2003-04
Implementation Plan delineates the Agency?s goals and objectives for each of the four
redevelopment project areas (Ocean Park 1A, Ocean Park 1B, Downtown, and
Earthquake Recovery). In addition, the Implementation Plan contains specific programs
and related expenditures to be made during the next five years, as well as a description
as to how the goals and objectives and programs will eliminate blight in the project
areas.
The purpose of the Implementation Plan is not to approve any specific program,
expenditure or project at this time, but rather provide a vision for the Agency?s
anticipated activities within the next few years.
The Five-Year Implementation Plan sets forth a series of programs for each of the
Agency?s four project areas. These programs and estimated expenditures over the next
five years are summarized below. Estimated resources for the Earthquake Recovery
Redevelopment Project Area are based on future debt financings that would maximize
the project area?s ability to leverage available revenues.
Ocean Park 1A, Ocean Park 1B and Downtown Project Areas
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The anticipated allocation of funds for the next five years is as follows:
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Ocean Park Projects 1A and 1B
$5.5 million for Affordable Housing
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$1.7 million is the state-mandated housing set aside, and $3.8 million is from
discretionary revenues.
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Downtown Project
$2.7 million for Affordable Housing
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$1.2 million is the state-mandated housing set aside, and $1.5 million is from
discretionary revenues.
Earthquake Recovery Project Area
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The Implementation Plan for the 1994 Earthquake Recovery Project Area focused
on repairing immediate physical damage to residential and commercial structures in
the Project Area. Since 1994, many of the structures needing immediate attention
have been either repaired or demolished. The 1999/00 - 2003/04 Implementation
Plan proposes programs and goals that will permit the Agency to address remaining
seismic retrofit and earthquake prevention needs in the city (via a Disaster
Prevention and Mitigation Program) as well as implement programs to further the
goals of Commercial Revitalization, Community Revitalization, Affordable Housing,
and Institutional Revitalization.
Staff anticipates that projects and programs implemented during the next five years
will be funded with available tax increment and debt financing. Tax allocation bond
issues are expected to be secured by available tax increment revenues to leverage
the maximum bond debt allowed under the Earthquake Recovery Redevelopment
Plan. It is assumed for this Implementation Plan that bonds will be issued in FY
1999/00, 2000/01 and 2001/02. On October 26, 1999, the Agency approved the first
bond issue for the Earthquake Recovery Redevelopment Project, which is expected
to generate $57.8 million in net proceeds and be used to fund the acquisition of
approximately 11.3 acres of land in the Civic Center area ($53 million) and provide
funds for housing ($3.1 million) and seismic safety retrofit design work ($1.7 million).
Staff anticipates that the Agency?s expenditures and commitments during the next
five years will total approximately $120 million. The allocation of these funds is
described below:
$34.6 million for Disaster Prevention and Mitigation Programs.
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$2 million was previously committed in the last five year planning period for
seismic work on public parking structures; $1.7 million is earmarked for
seismic safety retrofit work funded by 1999 bond proceeds; and $30.9 million
is proposed for other seismic retrofit and safety projects.
$8.05 million for Commercial Revitalization Programs
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These funds were previously committed for the Pico Streetscape Project,
Crosswalk Enhancement Project, and the Fourth Street Parking Structure.
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$40.2 million for Community Revitalization Programs
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$3.1 million was previously committed for repayment of a park expansion
project, and $37.1 million has been committed for the purchase of the RAND
Corporation property.
$1 million for Institutional Revitalization Programs
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These funds were previously committed for the Municipal Pool located on the
Santa Monica College campus.
$36.1 million for Affordable Housing
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$15.9 million has been committed for the purchase of the RAND Corporation
property, on which affordable housing is planned to be developed; $3.1
million has been earmarked for housing purposes from the proceeds of the
1999 bond issue; and $17.1 million is required by law to be set-aside for
affordable housing.
Affordable Housing Revenues
In total, for all redevelopment project areas, staff anticipates that approximately $44.3
million will be available for affordable housing projects over the next five years. Of this
amount, $15.9 million has been designated for the purchase of the RAND property in
the Civic Center area where affordable housing is planned to be developed. There
remains an estimated $28.4 million of housing revenues available to fund new
affordable housing initiatives over the five year term. Additional revenue from the
project areas, not projected at this time, can also be considered by the Agency for
affordable housing.
Affordable Housing Compliance Plan
Redevelopment Law requires the preparation of an Affordable Housing Compliance
Plan which sets forth the Agency?s program for insuring an appropriate number of very
low, low, and moderate income dwelling units are produced in connection with any new
construction or substantial rehabilitation within the project areas. In general,
Redevelopment Law requires that at least 15% of all privately developed or substantially
rehabilitated units are to be restricted for affordable income households.
The Compliance Plan addresses the Agency?s affordable housing production goals and
achievements relating to only two of the four redevelopment project areas (Downtown
and Earthquake Recovery). The Ocean Park Projects 1A and 1B are not subject to
affordable housing production requirements because they were adopted prior to
January 1, 1976 when the housing production statute went into effect.
In sum, the Compliance Plan demonstrates that the Agency has a projected, affordable
housing production obligation of 588 units for the 10-year period FY1994-95 through
2003-04, which it will be able to fulfill given existing and anticipated projects.
This production requirement is equal to 15% of all units to be produced within the
Downtown and Earthquake Recovery Project Areas over the 10-year period. The
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Agency expects to meet this obligation through its affordable housing production
program.
F:\Redevelopment\Staff Report Attachments\Implementation Plan\execsum rev9.doc
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