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SR-414-003 (4) Attachment C REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA AMENDED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN FY 1994/95 THROUGH 2003/04 FOR THE OCEAN PARK 1A REDEVELOPMENT PROJECT OCEAN PARK 1B REDEVELOPMENT PROJECT DOWNTOWN REDEVELOPMENT PROJECT EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT Prepared by: Rosenow Spevacek Group, Inc. 540 N. Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 July 8, 2007 ** I. INTRODUCTION This document is the Affordable Housing Compliance Plan ("Compliance Plan") for the Santa Monica Redevelopment Agency ("Agency"). This Compliance Plan amends the Agency?s preexisting housing affordability compliance plan adopted on November 22, 1994 by incorporating an update of the Agency?s affordable housing production activities since 1994, and presenting a revised scope of housing projects for the remainder of the 10-year planning period. This Compliance Plan addresses the Agency?s affordable housing production goals and achievements relating to two of the Agency?s four redevelopment project areas, specifically the Downtown and the Earthquake Recovery Redevelopment Project Areas (?Project Areas?). The Ocean Park 1A and 1B Redevelopment Project Areas were adopted prior to January 1, 1976, and, therefore, the Agency is not required to prepare an affordable housing compliance plan for these project areas. In sum, this Compliance Plan delineates a ten-year (fiscal year 1994-1995 through fiscal year 2003- 2004) affordable housing production requirement of 588 units. Also, this Compliance Plan documents how affordable housing programs completed, contracted, and proposed will result in the construction or substantial rehabilitation of 716 units, exceeding the ten-year production requirement by 128 units. Legal Requirements for Compliance Plans Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("Law"), this 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 as a result of new construction or 1 substantial rehabilitation. Contents of the Compliance Plan This Compliance Plan has been developed to accomplish the following goals: ? To account for the number of affordable dwelling units, either constructed or substantially rehabilitated, in both Project Areas since their respective adoptions; 1 Section 33413 of the Law defines ?substantial rehabilitation? as ?rehabilitation, the value of which constitutes 25 percent of the after rehabilitated value of the dwelling, inclusive of the land value.? Also, Section 50052.5 of Health and Safety Code defines affordable housing cost as: - Very Low - Not more than 30% of 50% of the County median household income. - Low - Not more than 30% of 70% (or 60% for rental projects) of the County median household income. - Moderate - Not more than 35% of 110% (or 30% of 120% for rental projects) of the County median household income. HC-1 ? To assess existing 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; ? To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal year 1994-95 and fiscal year 2003-04 and over the duration of the respective Redevelopment Plans for the Project Areas; ? To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal year 1994-95 and fiscal year 2003-04; ? To project the availability of City/Agency and other revenue sources for funding affordable housing production; ? To identify implementation policies/programs and potential sites for affordable housing development; ? To establish a schedule of actions for implementing this Compliance Plan so as to ensure that the requirements of Section 33413 are met during the 10-year period between fiscal year 1994- 95 and fiscal year 2003-04; and ? To review the affordable housing goals, objectives, and programs contained in the 1998 City of Santa Monica ("City") Housing Element ("Housing Element") to confirm this Compliance Plan is consistent with the Housing Element. HC-2 II. BACKGROUND The Agency was activated on August 13, 1957. The Agency currently manages four redevelopment projects: the Ocean Park Projects 1A and 1B, the Downtown Project, and ERRPA. Ocean Park Redevelopment Projects 1A and 1B The Ocean Park Redevelopment Projects 1A and 1B were adopted in 1960 and 1961, respectively. These Projects involved the redevelopment of approximately 33 acres of property with residential and recreational uses. As part of the Agency?s redevelopment efforts, affordable replacement housing was provided, and tax increment revenue from both Projects has been pledged to the City?s Affordable Housing Trust Fund. Because both of these Projects were adopted prior to January 1, 1976, the Law does not require that the Agency prepare housing affordability compliance plans for these Projects. Downtown Redevelopment Project The Downtown Redevelopment Project encompasses approximately 10 acres of property located at the southern end of the City?s Third Street Promenade in Downtown Santa Monica. The Project was adopted on January 13, 1976, and redevelopment activities within the project area were completed in 1980. These activities consisted of the development of the Santa Monica Place regional mall, which includes 570,000 square feet of retail space, and adjoining parking structures. The entire 10-acre Downtown Redevelopment Project Area is developed with the regional mall and parking structures; as such, no new or substantially rehabilitated residential construction will occur within this Project Area. Thus, the housing production requirements, as outlined in Section 33413 of the Law, are not applicable to the Downtown Project. Earthquake Recovery Redevelopment Project The City Council approved the Redevelopment Plan for the ERRPA on June 21, 1994. The ERRPA includes the structures predominantly damaged in the January 1994 Northridge earthquake. Approximately 90% of all red-tagged and 80% of all yellow-tagged buildings in the City were in the ERRPA. The ERRPA is bounded on the east by Cloverfield and 26th Street, on the west by the Pacific Coast Highway/Beach Promenade, on the south by approximately Pico Boulevard, and on the north by Montana Avenue. The ERRPA is anticipated to experience new construction and substantial rehabilitation of housing, thereby triggering a very low, low, and moderate income housing production obligation. This is commonly referred to as the Agency?s ?Inclusionary Housing Requirement? per the Law. (This is a separate requirement of the Agency, distinct from the City?s Affordable Housing Production Ordinance.) HC-3 Purpose The provisions of Section 33413(b)(4) require that all redevelopment agencies adopt and periodically update a plan to ensure compliance for each project area, with the criteria of Section 33413(b), regarding the affordability mix of new or substantially rehabilitated housing units created within the Agency?s jurisdiction. Since 1976, redevelopment agencies have been required to assure that at least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low income households. For all units developed by entities other than an agency, Section 33413(b) requires that at least 15% of all new or substantially rehabilitated dwelling units within the Project Areas be made available at affordable costs to low or moderate income households. Of these, not less than 40% of the dwelling units are required to be available at affordable costs to very low income households. These requirements are applicable to housing units as aggregated, and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. Methodology and Data Compilation This 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 accounts 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. Historical construction and substantial rehabilitation statistics were provided by the City staff and building permit data. For data gathering purposes, substantial rehabilitation was defined as any rehabilitation of a multifamily unit that was: 1) greater than $25,000 (where the before- rehabilitation value was unknown), or 2) greater than 25% of the purchase price. In both instances, an estimate of $100,000 was used to approximate the prerehabilitation value (which was the average purchase price for multifamily units at the time the data was compiled). Therefore, $25,000 was deemed an appropriate proxy for 25% of the after-rehabilitation value of a multifamily unit. Projections of new units are affected by numerous complex factors such as: the local, regional, and national economy; employment levels; competition; and the inventory of existing housing and zoning restrictions. As a result, projecting the number of new units to be constructed over a ten- year period can be difficult. For this Compliance Plan, projections for future dwelling units to be constructed or substantially rehabilitated within the Project Areas are based upon a synthesis of City Housing Element projections, building permits, trends, and a compilation of proposed residential projects. It should be noted that neither the existing housing stock nor projections for future dwelling units in the Project Areas include any units to be developed by the Agency. The Agency does not anticipate directly developing or substantially rehabilitating any dwelling units, which would trigger the 30% affordable housing requirement within the ten-year planning period of this Compliance Plan. However, the Agency will continue to cooperate with and provide assistance and incentives to private developers in order to meet affordable housing production goals. HC-4 Section 33413(b) provides that redevelopment agencies shall ensure that 15% of the non-agency developed or substantially rehabilitated units created within its jurisdiction are affordable to very low, low, and moderate income households. The Law does not elaborate what constitutes the ?Agency?s jurisdiction,? and there are varying legal interpretations of this definition. Agency legal counsel has opined that "the units created within the Agency?s jurisdiction" is defined as those units with which the Agency has been involved through direct financial or other assistance. A broader interpretation of the requirement suggests that the "Agency?s jurisdiction" contains all units created in the Project Areas, whether or not the Agency is involved. This Compliance Plan applies the broader definition of the Agency?s jurisdiction (basing production requirements on the new construction and substantial rehabilitation activity in the Project Areas, not just those with which the Agency has been involved) in order to determine the maximum number of inclusionary units that could be required by Law. HC-5 III. PROVISION OF AFFORDABLE HOUSING TO DATE This section identifies the number of dwelling units that have been destroyed/removed, constructed, or substantially rehabilitated within the Project Areas to date. Pre-1994 Activities The ERRPA was adopted in June 1994, and the Downtown Project does not include any dwelling units. As a result, prior to 1994, the Agency was not required to report on any residential units destroyed, constructed, or substantially rehabilitated in the ERRPA; thus, there is no inclusionary production need for the period prior to the 1994/95-2003/04 time frame of this Compliance Plan. Planning Period Activities to Date (1994-1999) Since the Downtown Project Area continues to be used exclusively for nonresidential uses, only the ERRPA generates inclusionary housing production needs. City staff and building permit data have accounted for 1,692 units constructed and substantially rehabilitated in the ERRPA Project Area between June 1994 and June 1999. As indicated on Table 1 (and detailed in the Appendices), this total consists of 1,267 constructed units and 425 substantially rehabilitated units either completed or contracted to date. None of these units were developed by the Agency. Table 1 shows four categories of housing projects, based upon their respective stage in the completion process. These four categories are defined below: 1) Completed - means affordable housing project already constructed or substantially rehabilitated, and available for occupancy. 2) Contracted - means a project not yet completed is subject to an executed affordability agreement. 3) Reserved - means a proposed project for which the Agency or other entity has earmarked funding. 4) Potential - means a proposed project for which there has been no funding commitment but is anticipated to result in affordable housing production. HC-6 Affordable Housing Production RequirementsTable 1 10 Year Affordable Housing Compliance Plan New ConstructionSubst. RehabilitationTotal Completed 587 270 857(See Appendix 1) Contracted 680 155 835(See Appendix 2) Subtotal Completed/ 1,267 425 1,692 Contracted to Date Reserved 222 6 228(See Appendix 3) Potential 1,528 470 1,998(See Appendix 4) Total 3,017 901 3,918 Many of these 1,692 units constructed and substantially rehabilitated feature covenants ensuring their affordability to very low, low and moderate income households. An inventory of these affordable housing units is included on Table 2. Table 2 identifies the completed or contracted affordable housing projects with Agency financial assistance, City housing programs, and other primarily tax credit programs. In total, these affordable housing production programs have resulted in the construction or substantial rehabilitation of 655 affordable dwelling units, including 279 units affordable to very low income households. In addition to these units completed or contracted, the Agency is currently working on additional projects (also enumerated in Table 2 as reserved and potential projects) that would increase the total number of affordable housing production units to 716 units, including 323 very low income units. HC-7 Production Projects Completed/ContractedTable 2 10 Year Affordable Housing Compliance Plan Project/LocationTypeCovenantsAffordabilityVery LowLow andTotal DurationModerate Completed Projects 2807 Lincoln (202) New Const.City2032 39 39 1328 2nd St (Step Up on 2nd)New Const.City2066 35 1 36 1128-44 5th StNew Const.City2051 32 32 915-929 Ozone/1002 Marine Acq./Rehab.City2049 30 30 1422 6th St New Const.City2024 28 28 1422 7th StreetNew Const.City2024 28 28 1430 7th StreetNew Const.City2024 28 28 1637 Appian Way (New Hope)New Const.City2052 25 25 1423 6th (Napoli Apts)New Const.City2024 24 24 1425 6th Street (Cielo Apts)New Const.City2024 24 24 205 WashingtonAcq./Rehab.City2024 22 22 815 Ashland (half credit)New Const.City2049 22 22 708 PicoNew Const.City2049 20 20 807 4th Street EQAcq./Rehab.City2051 17 17 1149 12th Street Acq./Rehab.Other2052 14 14 1143 12th Street (11 Low Units)Acq./Rehab.City2052 11 11 937 11th St EQAcq./Rehab.City2049 11 11 1118 5th St (10 L Units)Acq./Rehab.City2052 10 10 1343 11th Street EQ Acq./Rehab.Other2050 8 8 1438-44 16th StreetNew Const.City2053 8 8 1005-1011 Pico (SM Art Colony)New Const.City2024 7 7 1144 12th StreetNew Const.City2024 5 5 908 14th StreetNew Const.City2024 3 3 931 EuclidAcq./Rehab.City2024 3 3 1544 9th Street (Pine Apts)New Const.City2024 2 2 3004 Broadway (half credit)New Const.CityPerpetuity 1 1 Subtotal 121 337 458 Contracted Projects 1011 11th (Upward Bound-202)New Const.City2034 69 69 1116 4TH StreetNew Const.City2055 65 65 1344 14th StreetAcq./Rehab.Agency2054 2 13 15 855 Bay (15 units-2 VL/13 L/ )Acq./Rehab.City2048 2 13 15 1525 Euclid New Const.City2054 13 13 1227 9th Street Acq./Rehab.City2048 2 8 10 821 11thAcq./Rehab.Agency2054 5 5 10 Subtotal 158 39 197 Total Completed/Contracted Units 279 376 655 Reserved Projects 502 ColoradoNew Const.n/a2054 44 44 Subtotal 44 - 44 Potential Projects 1017 4th Acq./Rehab.City2054 16 16 1148 Stanford St. (half credit)New Const.CityPerpetuity 1 1 Subtotal - 17 17 TOTAL COMPLETED/CONTRACTED/RESERVED/POTENTIAL UNITS 323 393 716 Note: Half Credits refer to units created outside Project Areas on a 2-for-1 basis. HC-8 Projected Inclusionary Housing Needs Estimates for the total number of dwelling units to be constructed within the Project Areas both during the ten-year period and over the life of the Redevelopment Plans were provided by City staff based on past housing development trends in the ERRPA. As shown on Table 3, 3,918 units are estimated to be developed or substantially rehabilitated by fiscal year 2003-04. This includes 1,692 units developed or substantially rehabilitated over the past five years. (This forecast was based upon a review of completed, contracted, reserved, and potential projects between fiscal year 1994-95 and fiscal year 2003-04.) Staff anticipates that all of these units will be developed by public or private entities other than the Agency. Applying the 15% inclusionary production requirement would create an affordable housing production need of 588 units, 40% of which, or 235 units, must be affordable to very low income households. Table 3 also shows the number of units projected to be constructed and substantially rehabilitated over the duration of the Downtown and Earthquake Recovery Redevelopment Plans for the Project Areas. Agency staff projected the number of dwelling units estimated to be either constructed or substantially rehabilitated over the 30-year duration of the ERRPA Redevelopment Plan. City staff estimates that 8,708 units will be either developed or substantially rehabilitated in the Project Areas, including the 10-year planning period forecast of 3,918 units through fiscal year 2003-04. Construction or substantial rehabilitation of this number of units would create an obligation to produce 1,306 affordable units, including 522 very low income units, over the duration of the respective Redevelopment Plans. Planning Period Affordable Housing Production Surplus Table 2 identified the 716 affordable units other parties have been completed, contracted, reserved, or proposed over the past five years. These units include 323 very low income units. Based on the housing production estimates for the 10-year planning period, the Agency would be required to produce 588 affordable dwelling units, including 235 very low income units. Because 716 affordable units have will have been created though current housing programs, the Agency anticipates that its current affordable housing production efforts will exceed the number needed for the 10-year planning period. The projected surplus of 128 (716 less 588) affordable units, including 88 (323 less 235) very low income units, would be applied towards future housing production needs beyond the current 10-year period and would fulfill the obligation created over the remaining duration of the respective Redevelopment Plans for the Project Areas. HC-9 Affordable Housing Production Requirements Table 3 10-Year Affordable Housing Compliance Plan Within Agency's Jurisdiction Within Project Areas EarthquakeEarthquake DowntownDowntown TotalTotal Pre-1994 Requirements New Construction - n/a - - n/a - Substantial Rehabilitation - n/a - - n/a - Total - n/a - - n/a - Inclusionary Requirement (15% of Total) - n/a - - n/a - Very Low Income Households (40%) - n/a - - n/a - Low and Moderate Income Households (60% - n/a - - n/a - 10-Year Plan (1994-2004) Requirements New Construction - 221 221 - 3,017 3,017 Substantial Rehabilitation - 45 45 - 901 901 Total - 266 266 - 3,918 3,918 Inclusionary Requirement (15% of Total) - 40 40 - 588 588 Very Low Income Households (40%) - 16 16 - 235 235 Low and Moderate Income Households (60%) - 24 24 - 353 353 Duration of Redevelopment Plan Requirements New Construction - 663 663 - 6,005 6,005 Substantial Rehabilitation - 135 135 - 2,703 2,703 Total - 798 798 - 8,708 8,708 Inclusionary Requirement (15% of Total) - 120 120 - 1,306 1,306 Very Low Income Households (40%) - 48 48 - 522 522 Low and Moderate Income Households (60%) - 72 72 - 784 784 Notes: >Assumes no units developed directly by the Agency >"Within the Agency's Jurisdiction" includes projects inside and outside Project Areas that received Agency assistance. >"Within Project Areas" include all projects inside Project Areas. >Duration of Plan figures for new construction include 1,523 units for major (unique) projects during 10-Year Period, plus an average (normal) construction of 149 units annually (4,482 units over 30 year duration of ERRPA Redevelopment Plan). >Duration of Plan figures for substantial rehabilitation are calculated by multiplying the 10-year plan requirement of 901 units by 3. >10-Year Plan Requirements include constructed, contracted, reserved and potential projects for 10-Year Planning Period, as listed in Appendix 1. Totals summarized below. New Construction Subst. Rehabilitation Total Completed - Appendix 1 587 270 857 Contracted -Appendix 2 680 155 835 Subtotal 1,267 425 1,692 Reserved - Appendix 3 222 6 228 Potential - Appendix 4 1,528 470 1,998 Total 3,017 901 3,918 HC-10 Estimated Housing Program Resources One of the Agency?s primary sources of revenues for housing program implementation is the annual 20% housing set-aside deposits. Sections 33334.2 and 33334.6 require that not less than twenty percent (20%) of all taxes which are allocated to the Agency be used to increase, improve, and preserve the community?s supply of housing available, at affordable housing cost, to persons and families of very low, low, and moderate incomes. In addition, as set forth in Section 33334.4 of the Law, it is the stated policy of the Legislature that ?...it shall be the policy of each agency to expend, over the duration of the redevelopment plan, the moneys in the low and moderate income housing fund to assist housing for persons of low and very low income in at least the same proportion as the total number of housing units needed for those income groups which are not being provided by other governmental programs bears to the total number of units needed for persons of moderate, low, and very low income within the community.? In total, the Agency anticipates revenues totaling $54.9 million of 20% set-aside funds and unrestricted funds designated for housing for the 10-year period, assuming tax allocation bond issues occurring in 1999-00, 2000-01, 2001-02. In addition to housing set-aside deposits, the City has historically procured additional funds to augment its housing fund resources. Many of the units produced are expected to be financed through City and federal tax credit programs. Those City programs include funds from CDBG, HOME, Inclusionary Housing Fees (the City has its own Affordable Housing Production program), Office Mitigation Fees, and Tenant Ownership Rights Charter Amendment (TORCA) fees. Projections of Housing Fund expenditures are shown on Table 4. Table 4 includes existing housing fund balances, revenues, expenditures, and net housing fund revenues for the ten-year planning period. Projected revenues include housing set-aside deposits and interest earnings from all four redevelopment project areas (Ocean Park 1A, Ocean Park 1B, Downtown, and ERRPA). Expenditures include housing project costs and lease payments for the Sea Colony apartments. In total, Housing Fund expenditures are projected to be $53.8 million over the 10-year period. Of the $53.8 million of housing expenditures, $43.9 million relates to housing costs for future affordable housing programs for the remainder of the 10-year planning period (1999-00 to 2003- 04). The following section describes the Agency?s plan for use of these affordable housing resources. HC-11 Resources for Affordable Housing ActivitiesTable 4 10 Year Affordable Housing Compliance Plan 1999-00 to10 Year Prev 5 Yrs1999-20002000-20012001-20022002-20032003-20042003-04Total Revenues: Property Tax Increment - Low/Mod Fund Downtown1,168,248 240,000 244,250 248,500 252,750 257,000 1,242,500 2,410,748 Earthquake2,324,915 2,296,800 2,550,0003,081,8003,284,6003,491,60014,704,80017,029,715 Ocean Park1,611,425 465,000 470,500 476,000 481,750 487,500 2,380,750 3,992,175 Additional Ocean Park Allocation - 711,000 733,000 752,000 775,000 798,000 3,769,000 3,769,000 Additional Downtown Allocation - 967,000 134,000 135,000 135,000 129,000 1,500,000 1,500,000 Proceeds from Anticipated Bond Issue (Earthquake) Required 20% Set-Aside Portion -10,600,000 4,582,0161,390,345 - -16,572,36116,572,361 Additional Housing Allocation - 8,350,000 - - - - 8,350,000 8,350,000 Use of money & property (1) 591,684 150,000 140,000 120,000 115,000 110,000 635,000 1,226,684 Total Revenues5,696,27223,779,800 8,853,7666,203,6455,044,1005,273,10049,154,41154,850,683 Expenditures: Capital Projects (2)2,800,67524,270,783 8,153,7764,572,1263,355,4543,585,60243,937,74146,738,416 Debt Service - Bond Issues - 473,363 1,133,6691,382,0401,440,8001,440,800 5,870,672 5,870,672 Transfer Out - Sea Colony Lease (3) 575,507 123,120 126,321 129,479 132,846 136,698 648,464 1,223,971 Total Expenditures3,376,18224,867,266 9,413,7666,083,6454,929,1005,163,10050,456,87753,833,059 Excess Revenue & Other (1,087,466) (560,000) 120,000 115,000 110,000 Beginning Fund Balance 2,992,952 1,905,4861,345,4861,465,4861,580,486 Ending Fund Balance 1,905,486 1,345,4861,465,4861,580,4861,690,486 Notes: (1) Interest (2) Capital (Housing) Projects: Housing Projects: Lincoln 202 719,682 - 719,682 Upward Bound 298,282 454,238 454,238 752,520 1227 9th 284,572 117,773 117,773 402,345 10th & Bay 497,495 176,002 176,002 673,497 4th St. - 149,453 700,000 849,453 849,453 1344 14th St. - 340,000 340,000 340,000 821 11th St.1,000,644 - 1,000,644 Land Acquisition -15,900,00015,900,00015,900,000 Acquisition,Rehab,New Construction - 7,133,317 7,453,7764,572,1263,355,4543,585,60226,100,27526,100,275 Total2,800,67524,270,783 8,153,7764,572,1263,355,4543,585,60243,937,74146,738,416 (3) Lease of Sea Colony Apartment units in Ocean Park 1A project area HC-12 Proposed Implementation Initiatives The Agency and City will continue implementation of affordable housing projects throughout the City over the balance of the 10-year planning period. Future implementation activities will fall into the following three categories: ?Obtaining Third Party Beneficiary Covenants on Existing Units - In order to provide further assurance that affordable units produced by entities other than the Agency remain affordable for at least the term of the Redevelopment Plans (at least 2024), the Agency will work with these entities to record the Agency?s own affordability covenants. Presently, the Agency is pursuing third party beneficiary covenants on 15 projects, accounting for 367 affordable units. ?Facilitating Acquisition and Rehabilitation Projects - The Agency and City are also working on projects to cause the acquisition and substantial rehabilitation of deteriorated housing units. One such project is a 16-unit low and moderate income project at 1017 4th Street currently under way. In total, these acquisition and rehabilitation programs in progress could result in the production of 41 affordable units, including 9 very low income units. ?Encouraging New Housing Construction - Finally, City and federal tax credit programs will facilitate development of new housing units in the community. A portion of the potential bond proceeds may be pledged to facilitate acquisition of property or other incentives to accommodate affordable housing development in the Project Areas or elsewhere in the City. Specific projects under way (assisted by the City or by private development alone) include the following: ? 502 Colorado Boulevard (44 very low income units) ? 1148 Stanford Street (2 low/moderate income units - counting as 1 unit because they are located outside the Project Area) HC-13 Potential Sites for Affordable Housing Units Potential sites for affordable housing include property zoned for residential uses (R1, OP1, OPDU, OP2, R2, R2R, R3, OP3, OP4, R3R, R4, R2-NW, R3-NW, RVC,, and RMH). In addition, pursuant to the City zoning ordinance, the City allows a variety of residential development in nonresidential zones; in several nonresidential districts, the City density bonuses for areas devoted to residential use. While the Agency?s experience suggests that the majority of future affordable housing production efforts will be occurring within the ERRPA Redevelopment Project Area, the Agency is permitted to implement affordable housing production programs to meet the Agency?s affordable housing production programs elsewhere in the City. (By Law, dwelling units created outside the Project Areas to meet the Agency?s affordable housing production obligations are counted on a 2-for-1 basis.) During the planning period, the Agency will conduct further research to find sites that are suitable for cost efficient development of affordable housing, and work with private and non-profit developers for building affordable housing units. HC-14 Implementation Timeline Table 5 shows an estimated annual production timeline for the production and estimated costs of affordable dwelling units over the balance of the ten-year planning period. Because many programs are still in their formative stage, specific details of the type and number of units created are not yet known. HC-15 Implementation TimelineTable 5 10 Year Affordable Housing Compliance Plan Program/ProjectTypeAgency Cost Units Produced by Year (1999-00 to 1999-002000-012001-022002-032003-04Total 2003-04)VLL/MTotVLL/MTotVLL/MTotVLL/MTotVLL/MTotVLL/MTot Contracted Projects - Remaining Expenditures 1011 11th St (Upward Bound; 70 units)New Constr.$ 454,23869 - 69 - - - - 69 - 69 1344 14th StreetAcq./Rehab. 340,000 213 15 - - - - 213 15 1116-46 4th St (202; 65 units)New Constr. 849,453 -65 -65 - - - 65 - 65 1227 9th St. (10 units)Acq./Rehab. 117,773 2 8 10 - - - - 2 8 10 1525 EuclidAcq./Rehab. -13 - 13 - - - - 13 - 13 821 11th St. (10 units)Acq./Rehab. - 5 5 10 - - - - 5 5 10 855 Bay (10th & Bay; 15 units)Acq./Rehab. 176,002 213 15 - - - - 213 15 Total Contracted Project Expenditures$ 1,937,466933913265 -65 - - - - - - - - -15839197 Reserved, Potential and Proposed Projects 1017 4th Acq./Rehab.$ - -16 16 - - - - -16 16 1148 Stanford St. (half credit - 2 for 1)New Constr. - - 1 1 - - - - - 1 1 502 ColoradoNew Constr. -44 - 44 - - - - 44 - 44 To Be Determined Acquisition/Rehab/New Construction ProgramAcq./Rehab. 15,900,000 To Be Determined Acquisition/Rehab/New Construction ProgramAcq./Rehab. 26,100,275 Total Reserved/Potential/Proposed$42,000,2754417 61 - - - - - - - - - - - - 4417 61 Total Expenditures$43,937,741 HC-16 City Housing Element Consistency A major focal point of the goals, policies and objectives of the City?s Housing Element is to provide housing for all economic segments of the City, especially lower income families. Because the major goal of this Compliance Plan is also to provide housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing in the City presented in this Compliance Plan are similar to plans and policies of the Housing Element, there is clearly a high degree of consistency between the Compliance Plan and the Housing Element. The new construction forecast used in this Compliance Plan is consistent with the Housing Element?s quantified objectives of 308 affordable and market rate units per year. In total, this Compliance Plan identifies 3,080 new units (308 units annually) to be constructed inside and outside the Project Areas over the 10-year planning period. This total consists of 3,017 units inside the Project Areas and 63 units elsewhere in the City. HC-17 HC-18 HC-19 HC-20 HC-21 HC-22