SR-414-002 (13)
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SEP 1 0 1985
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Redevelopment Agency Meeting:
CIty CouncIl MeetIng
9/10/85
Santa MonIca, CalIfornIa
TO:
Redevelopment Agency
CIty CouncIl
FROM:
CI ty Sta ff
SUBJECT: RecommendatIon to Adopt ResolutIons AllocatIng Funds to
the Ocean Park 1 (a) and 1 (b) Redevelopment ProJect Low
and Moderate Income HOUSIng Trust Fund
INTRODUCTION
ThIS report transmIts for adoptIon resolutIons allocatIng funds
to the Ocean Park Redevelopment ProJect l(a) and l(b) Low and
Moderate Income HOUSIng Trust Fund for use In the CIty-wIde Hous-
Ing AcqUISItIon and RehabIlItatIon Program as approved In the
FIscal Year 1985-86 Budget.
BACKGROUND
CalIfornIa Redevelopnlent Law allows local Redevelopment AgenCIes
to use taX-Increment funds from a redevelopment proJect for
phYSIcal llnprovenlents or actIVItIes that wIll be of benefIt to
the proJect. Under the prOVISIons of thIS law, actIVItIes that
WIll Increase or Improve the supply of affordable hOUSIng for low
and moderate Income households are conSIdered to be of benefIt to
redevelopment proJects.
In order to use taX-Increment funds for
these housing actIvitIes, the Agency must establIsh a Housing
Trust Fund by resolutIon, fIndIng that the prOVISIon of such af-
fordable hOUSIng IS of benefIt to the proJect.
C!.cI1fR.S
SEP 1 0 1985
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In order to utIlIze the redevelopment taX-Increment funds appro-
prlated for the CItY-WIde HOUSIng AcqUIsitIon and RehabIlitation
Progranl (CHARP) In the FIscal Year 1985-86 budget, the Redevelop-
ment Agency must approve the resolutIons for CHARP as follows:
Attachment A: Ocean Park l(a) Redevelopment ProJect $135,000
Account No: 18-720-264-129-947
Attachment B: Ocean Park l{b) Redevelopment Project 365,000
Account No: 18-720-264-128-947
TOTAL $500,000
In addItIon, the CIty CounCIl must concur In fIndIng the alloca-
tlon of funds for off-SIte hOUSIng to be of benefIt to the Ocean
Park Redevelopnlent l(a) and lIb) projects as detaIled in Attach-
ment C and D.
Upon adoptIon of the attached Redevelopment Agency resolutIons,
the Controller of the Agency shall be responSible for plaCIng the
HOUSIng Trust Funds In an Interest-bearIng account; and as stated
In the attached resolutIon any and all Interest accrued to the
Fund shall be used In accordance WIth the fIndIngs stated In the
resolutIons.
The CHARP funds are used to make deferred loans to non-profIt
corporatIons for the development of low and moderate Income hous-
Ing under the terms of the program gUIdelInes and operatIng pro-
cedures approved by the Redevelopment Agency on December 13,
1983. In addItIon, the CIty CounCIl has dIscussed USIng budgeted
CHARP funds for proJects that convert as lImIted eqUIty coopera-
tlves under the Tenant OwnershIp RIghts Charter Amendment (TORCA)
HomeownershIp ASSIstance Program. The CIty Council WIll be asked
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to consIder such a loan In another report. NothIng in the adop-
tIon of the enab1~ng resolut~ons presented In thIS report corr~Its
the CIty CounCIlor Redevelopment Agency to makIng a specIflc
loan of CHARP funds.
FINANCIAL/BUDGETARY IMPACTS
The FIscal Year 1985-86 budget Includes a total appropriatIon of
$500,0rJ0' In redevelopnLent taX-Increment funds for the provls~on
of low and moderate Income hOUSIng through the CItY-WIde Housing
AcqUISItIon and RehabilItatIon Program (CHARP). ThIS approprIa-
tIon IS reflected In the folloWIng accounts for the CItY-WIde
HOUSIng AcqUISitIon and RehabIllat~on Program:
Ocean Park lea)
Ocean Park 1 (b)
18-720-264-129-947
18-720-264-128-947
$135,00'0
$365,000
Therefore, the adoptIon of the attached resolutIons WIll have no
addltlonal budgetary Impact.
RECOMMENDATIONS
It IS recommended that the Redevelopment Agency:
1. Adopt the attached ResolutIon of the Redevelopment Agency of
the CIty of Santa MonIca allocatIng $135,000' Into the Ocean
Park Redevelopment ProJect lea) to prOVIde funds for CHARP,
and fIndIng the prOVISIon of such hOUSIng to be of benefIt to
the Ocean Park Redevelopment ProJect lea).
2. Adopt the attached ResolutIon of the Redevelopment Agency of
the CIty of Santa MonIca allocatIng $365,000 Into the Ocean
Park Redevelopment ProJect l(b) to provide funds for CHARP,
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and fIndIng the provIsIon of such housIng to be benefIt to
the Ocean Park Redevelopment ProJect l(b).
It IS recon~~nded that the CIty Council:
1. Adopt the attached ResolutIon of the CIty Council of the CIty
of Santa MonIca findIng the use of funds in the Ocean Park
Redevelopment ProJect 1 (a) Low and Moderate IncoItle HOUSIng
Trust Fund to be of benefIt to the Ocean Park Redevelopment
ProJect l(a).
2. Adopt the attached ResolutIon of the CIty CouncIl of the CIty
of Santa MonIca fIndIng the use of funds in the Ocean Park
l(b) Low and Moderate Income HOUSIng Trust Fund to be of
benefIt to the Ocean Park Redevelopment ProJect l(b).
Prepared by: Candy Rupp, HOUSIng Development Analyst
Ann SewIll, HOUSIng Program Manager
Departnlent of CommunI ty & EconomIC Development
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