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SR-407-003-21 tC OCT 2 {) 2005 Council Meeting: October 25, 2005 Santa Monica, California To: Mayor and City Council Chairperson and Redevelopment Agency From: City and Agency Staff Subject: Affordable Homeownership, Relocation Plan, and Replacement Housing Plan for the Development Proposed at 1943-59 High Place INTRODUCTION This report recommends that the City Council and Redevelopment Agency approve in concept an affordable homeownership development to be located at 1943-59 High Place and authorize the City Manager and Executive Director to negotiate and execute the necessary documents specific to a homeownership development for moderate income households. This report also recommends that the City Council approve the Relocation Plan and that the Redevelopment Agency approve the Replacement Housing Plan for the proposed development. BACKGROUND The City's two main housing policy documents, the Housing Element and the Consolidated Plan, identify that homeownership programs for low and moderate income households should be supported. The Housing Element establishes that the City should cooperate with housing providers to promote the development of ownership housing for low and moderate income households (Goal 2.0, Policy 2.3). The Consolidated Plan establishes that -the City should expand homeownership opportunities for low and moderate income first-time 1 ~c oeI 2 6 2005 homebuyers (Priority 1 C). In addition, as part of its mission statement and objectives, the City's Housing Commission has made a commitment to explore opportunities for affordable homeownership programs. In 2003, Community Corporation of Santa Monica (CCSM), a local nonprofit agency committed to the development and management of affordable housing in Santa Monica, held two community forums to bring the residents of Santa Monica's Pico neighborhood together to discuss affordable housing issues. At these forums, community members expressed interest in affordable homeownership for first time homebuyers. In response to this feedback, CCSM convened a study group comprised of Pico community leaders to explore and consider all aspects of affordable homeownership. The study group prepared a report, provided in Attachment A, which endorses affordable homeownership for moderate income households. DISCUSSION CCSM is proposing to develop approximately forty (40) units of affordable homeownership housing at 1943-1959 High Place (High Place East). The units would be affordable to moderate income households (100% of median income, up to $65,500 for a 4-person household for 2005). This site is located on the east side of High Place between Virginia Avenue and the Santa Monica Freeway in the Pico neighborhood and is zoned R2 (Low Density Multiple Residential District). The site measures approximately 36,300 square feet and currently 2 includes seven buildings containing fourteen rent controlled units. However, building permit records indicate that these structures represent only six original units. The use of the City's various affordable housing funds are governed by the Housing Trust Fund Guidelines ("Guidelines") adopted by City Council and the Redevelopment Agency. The current Guidelines limit the use of these funds to affordable rental developments and target low income households earning no more than 80% of the area median income (currently $52,400 for a 4-person household). There is no current City program to subsidize the construction of affordable homeownership housing. Therefore, housing trust fund financing of a homeownership development targeted to moderate income households requires Council and Agency approval. The proposed development also requires Council approval of the Relocation Plan and Agency approval of the Replacement Housing. Other than homeownership housing (versus rental housing) and targeting moderate income households (versus low income households), the proposed High Place East development would be consistent with the Guidelines, including the $180,000 per unit maximum subsidy. 3 The approximate development budget sources and uses are identified in Table 1: Table 1 Based on current lending practices a moderate income household should be able to obtain a bank loan of approximately $200,000. Table 1 also indicates that a State subsidy of $30,000 per unit is available and that a City subsidy of $168,000 per unit would be required. The estimated City subsidy of $168,000 per unit is within the current Guidelines per unit subsidy limit of $180,000 for a two or more bedroom unit. The affordability covenants would remain in effect for a minimum of fifty-five years, which is also consistent with the Guidelines. The price of the units will be calculated from the median income, thus maintaining affordability through the covenant period. Homeowners build equity by paying down the mortgage and earning appreciation as the affordability index (Le., the area median income) increases. A Relocation Plan must be approved by the City Council whenever a Redevelopment Agency-funded activity would displace any existing property occupants. The Relocation Plan must be prepared in conformance with statutes and regulations established by the California Relocation Assistance Law (CRAL; 4 California Government Code section 7260 et seq.), the California Relocation Assistance and Real Property Acquisition Guidelines, Title 25, California Code of Regulations, Chapter 6, Section 6000 et. Seq., and California's Community Redevelopment Law (Health & Safety Code Section 33000 et seq.). The Relocation Plan, provided in Attachment B, explains that only three of the fourteen existing rental housing units on the High Place East site are occupied. Under State relocation guidelines, comparable and available replacement housing must be identified prior to the relocation of the displaced household. A rental housing survey conducted in July 2005 indicates there is an adequate supply of comparable replacement units in proximity to the High Place East site to meet the needs of the households that will be displaced. The Relocation Plan for this proposed development was made available for public review and provided to the three households remaining on the site, as required by CRAL. Any written comments from the public or the displaced household will be attached to the Relocation Plan as an addendum prior to its consideration by the Council. The Replacement Housing Plan, proVided in Attachment C, establishes that Agency will meet its replacement housing obligations by replacing the removed units with units containing an equal or greater number of bedrooms within four years of demolition. The existing units contain fourteen bedrooms as shown in Exhibit 2 of the Replacement Housing Plan. The Agency will provide 5 replacement housing by utilizing surplus housing units and bedrooms from a previously funded affordable housing development to be located at 2411-23 Centinela Avenue. The Replacement Housing Plan also establishes that the Agency will ensure the affordability of the replacement housing units and the occupancy by households whose incomes are commensurate with those households previously occupying the demolished units. Demolition of the units at High Place East is not anticipated for a few years because the development is in the conceptual stage and the design has not yet begun. FINANCIAUBUDGETARY IMPACT City/Agency financial assistance to this proposed development will be provided by one or more of the available housing trusts funds for affordable housing. RECOMMENDATION It is recommended that the following actions be taken to allow housing trust fund financing of an affordable homeownership development at 1943-59 High Place: City Council and Redevelopment Agency: 1) Approve the homeownership concept for moderate income households at the High Place East development site as outlined in this staff report; and 6 2) Authorize the City Manager and Executive Director to negotiate and execute agreements necessary to effect the proposed homeownership development at High Place East as outlined in this staff report. City Council: 1) Approve the attached Relocation Plan for the proposed development on High Place East as outlined in this staff report. Redevelopment Agency: 1) Approve the proposed Resolution (Attachment D) adopting the Replacement Housing Plan for the proposed development on High Place East as outlined in this staff report. Prepared by: ATTACHMENTS: Attachment A: Attachment B: Attachment C: Attachment D: Jeff Mathieu, Director Resource Management Department Ron Barefield, Acting Housing and Redevelopment Manager Jim Kemper, Acting Housing Administrator Tina Rodriguez, Redevelopment Administrator Mike Strader, Senior Administrative Analyst Nia Tang, Senior Administrative Analyst Pico Neighborhood Affordable Homeownership Report Relocation Plan for 1943-59 High Place Replacement Housing Plan for 1943-59 High Place Agency Resolution approving the Replacement Housing Plan for 1949-1959 High Place 7 ATTACHMENT A Pica NEIGHBORHOOD AFFORDABLE HOMEOWNERSHIP STUDY GROUP (AHO) Report and Recommendations to Community Corporation of Santa Monica (CCSM) August 5, 2003 Introduction In January of 1999, owners of rent-controlled apartments in the City of Santa Monica were allowed to raise their rents to market rates at turnover. These market rates are often 80% to 100% higher than the rent~controlled rates prior to Costa-Hawkins. Incomes of the existing residents, however, have not risen at the same rate. Because of this, the city has lost thousands of affordable housing units each year since 1999. In the beginning of 2003. CCSM held two community forums to bring the residents of Santa Monica's Plco neighborhood together to discuss the loss of afford ability and the direction the community should take to address the housing needs. At these forums, there was interest in exploring affordable homeownershlp (AHO) housing for first-time homebuyers. CCSM decided that the community's Interest in this concept warranted further exploration. Therefore, CCSM convened a small study group of community leaders to explore and consider all aspects of a successful AHO program and to make recommendations to CCSM. Pico AHO Study Group Description The Pice AHO Study Group Members: Barbara Filet Plco Neighborhood homeowner and rental property owner. Stacy Franklin Pico Neighborhood homeowner. Darrell Goode President, NAACP Venice/Santa Monica Branch. Ana Jara Pice Neighborhood renter. steve Martinez Principal. Edison Elementary School. Rosemary Martinez Plco Neighborhood renter. Jim Ries Pico Neighborhood homeowner and rental property owner. Mike Russell Senior Development Officer. St. John's Hospital. Bert Staggers Pico Neighborhood rental property owner and resident since 1947. Mike Tarbet Organizer. Santa Monicans for Renters' Rights, and Plco resident. Doug Willis Plco Neighborhood renter and Rent Control Board member. The DurDose of our croup Is as follows: · Gather and understand the facts, limits and opportunities about AHO. · Assess whether we can balance public benefit and private good in a high cost area. · Decide whether AHa is a viable and appropriate mission for CCSM. o Where will we secure the public and private financial assistance? o Where will we find land to build? · Envision how an AHO program could be structured, given the need to protect public financial investment in the future. o What type of housing - flats, townhouses or single family homes? o What income group shOUld we serve - very low, low. median or moderate? o What type of ownership structure - fee simple. condo co~op, land trust. etc.? o What type of resale restrictions - no appreciation, deferred Interest repayment, shared appreciation, sale of improvements only, etc.? We met on the follow/no dates and times: . May 7, 2003 at 7pm: We explored: o Financing. costs & other practical considerations for building AHO. o Resale control options. o The risks & benefits of AHO to Individual families and the community. We decided we needed the fOllowing information to continue: o Listing of the financial assistance available to support AHO in Santa Monica. o Review a sample of AHO programs in other cities. o Identify land suitable and available for an AHO program. AHO Report and Recommendations August, 2003 Page 1 of 4 · June 41 2003 at 7pm: At this session. CCSM provided us with the fOllowing information: o Details on AHO programs in five other California cities, wIth City of Santa Cruz providing the highest level of assistance at $110.000 per unit and City of San Jose providing the lowest at approx. $40,000. o Details on county, state and federal government assistance for AHO in Santa Monica, which range up to $40-50,000 per unit. o City of Santa Monica Housing Element section discussing the limited supply of land suitable for residential development. _ o Income Tax Savings from the Mortgage Interest Deductfon, whIch shows only low and higher Income. not 'very low income', families could benefit. We explored; . o Values and Priorities of the study group members. o The possibility of utilizing a site located on the east side of High Place, inclUding considering the availability of recreational facilities in the area. We decided; o All members should reflect on the values and priorities discussion and decide what the group's values and priorities should be. o Each person should visit the High Place site before the next meeting. We asked CCSM to provide the following information: o Foreclosure rates of AHO programs in other California cities. o Number of units assisted by each of the five cities referenced above. o Comparison of Santa Monica city subsidy costs between rental units and potential ownership units. · June 30, 2003 at 7pm: At this session: o CCSM provided national foreclosure and delinquency rates, but was unable to provide foreclosure rates In other city programs due to a Jack of records at these cities and the relative newness of the programs (five years or less). o Some Information was provIded regarding the number of loans made, which is very limited with San Jose making less than 100 loans per year and Santa Cruz making only 15 In the last ffve years. o CCSM also provided a chart comparing ownership and rental subsIdies in Santa Monica. It shows that rental flats for very-low income families and ownership flats for median income families have similar city subsidy needs. o We discussed that the east Side of High Place may be a suitable site for AHO. We explored our values and priorities as a group and came to four key agreements: o Provide as many units as possible · CCSM should preserve Its stock of affordable rental housing for very low and low-income tenants. o Maintain a diversity of people and housing types in the Santa Monica. o Focus on providing housing for Santa Monica residents and workers as much as possible. o If the subsidy costs are similar, there should be both rental and ownership units produced. At this session we came to the conclusions and recommendations on AHO as outlined in the next section. Durina the sessions. we used the followina readinos: · "Has Homeownershlp Been Oversold?" Winton Pitcoff; Shelterforce, January/February 2003. · "Homeownership Benefits Elude Low-Income Borrowers", Mike Sorohan; www.mbaa.org, June 11, 2001. AHO Report and RecommendatlonseAugust. 2003 Page 2 of 4 · "Alternative Financing Models - Hybrids of Homeownership". Enterprise Foundation, www.enterorisefoundation.org. (Publishing date not shown.) · "Overview: Controlling Affordabillty Over Time in Subsidized OWl1er~Occupied Housing", Peter Werwath. The Enterprise Foundation, June 5. 1995. .. "Preserving Affordable Homeownershlp Opportunities In Rapidly Escalating Real Estate Markets," Jeanne Goldie Gura; Journal of Affordable Housing, Vol. 11 No.1, Fall 2001. · "Models and Innovations: Land Trusts," National Center for Economic and Security Alternatives (www.ncesa.ora). · "Affordable Forever.Land Trusts Keep Housing Within Reach," Winton Pitkoff; Shelterforce Online, Issue 121, Jan/Feb 2002 Chtto://www.nhi.ora/online/issues/121/LandTrusts.html). Conclusions and Recommendations 1. We have decided that AHO is a desired and appropriate mission for CCSM that should be further explored with Santa Monica stakeholders and funders while CCSM maintains its primary mission of providing affordable rental housing. · Based on Information gathered by the AHO Study Group. CCSM has created nearly 1,200 units of rental housing in Santa Monica during the past 20 years. Meanwhile, CCSM has over 2,500 households on its marketing list but has fewer than 100 unit vacancies per year. · The need for affordable housing in Santa Monica greatly exceeds the supply and this AHO venture cannot meet the need. 2. CCSM should move forward with pursuing an AHO project on an experimental basis if funding can be secured at a minimum of $95,000 to $135,000 per unit (in 2003 dollars) for a low/median income family (80% to 100% Area Median Income). .. For CCSM to accomplish this desired mission, the subsidy required will equal or even exceed SUbsidies offered by the five cities we researched (San Jose minimum of $40K and Santa Cruz maximum of $11 OK). · We make this recommendation fully knowing that AHO is a <different kind' of home ownership with the fol/owlng drawbacks and limitations: Owners of AHO properties earn limited equity. AHO requires significant public subsidy from a variety of sources. Traditional single-family home ownership is not financially feasible for AHO in Santa Monica. There are limited sites for AHO in Santa Monica, limited funding at the level required and substantial limits on the size or number of these kinds of projects. There may be additional time and costs Involved wIth developIng AHO versus typical affordable rental housing. 3. The AHO program should be structured as follows: · Type of Housing: FLATS In order to produce as many unIts as possible. A flat Is defined as a single.level unit within a muJti.story building. · Income Groups: LOW to MEDIAN INCOME (80% to 100% Area MedIan Income) families to keep the SUbsidy level similar to that need~d for very low income rental projects. · Ownership Structure: COMMUNITY LAND TRUST where owners own their flats and lease the land from the trust. This structure will reduce the homeowner's financial burdens and It will best protect lon9- term afford ability. · Resale Restrictions: AFFORDABLE TO SAME INCOME GROUP forever. AHO Report and Recommendations August. 2003 Page 3 of 4 Signed and Agreed to by aU members of the Pico AHO Study Group on October 8, 2003: Barbara Filet (f" 11Wfuf6- fl2rf Stacy Franklin Darrell Goode Ana Jara ~~ d~~4"~ ~~.~. o ~ - J~ - Steve Martinez Rosemary Martinez .. Jim Ries Mike Russell Bert Staggers Mike Tarbet Doug Willis AHO Report and Recommendations August, 2003 Page 4 of 4 Attachment B Relocation Plan Prepared for the Community Corporation of Santa Monica High Place East Project INTRODUCTION In August 2002, Community Corporation of Santa Monica ("CCSM") and the Redevelopment Agency of the City of Santa Monica ("Agency") entered into a loan agreement and a conditional grant agreement for the acquisition and rehabilitation of High Place East ("Project"), which is comprised of a grouping of seven (7) single family residences containing fourteen (14) units on six (6) parcels (of which two (2) parcels are vacant). The addresses of these buildings are 1955 High Place, 1955 % High Place, 1959 High Place, 1959 % High Place, 1943 High Place, and 1949 High Place, located at the northeast corner of High Place and Virginia Avenue. CCSM purchased the properties with the intent of rehabilitating the existing structures and did not anticipate rehabilitation activities to impose an unreasonable change in the character of the properties and for this reason there was no need for the existing tenants to relocate, either permanently or temporarily. CCSM's practice is to rehabilitate buildings with tenants in place. During the period between August 2002 and August 2003, four (4) households of seven (7) total households moved for reasons involving one tenant purchase of a home, one tenant initiated transfer to a better CCSM unit, and two move-outs for unspecified reasons. In August of 2003, after CCSM identified a number of new issues related to the scope of work, cost of the rehabilitation and difficulty maintaining insurance, CCSM requested a change from an acquisition and rehabilitation project to a new construction project. CCSM notified all households in August 2003 of the possibility for future relocation and began a study of the potential of the site for new development. In April 2005, CCSM applied to the City of Santa Monica for approval of that change. As a result of this change in the Project, three (3) households will be permanently displaced. Since April 2005, no tenants have moved out. CCSM will provide relocation benefits to the households as required by State relocation guidelines. The location of the housing, which is the subject of this relocation plan, is generally described as follows: The northeast corner of High Place and Virginia Avenue, comprised of 1955 High Place, 1955 % High Place, 1959 High Place, 1959 % High Place, 1943 High Place, and 1949 High Place, on Assessor Parcel Numbers 4274-003~027, -028, -029, 030, -033 and - 034. A copy of the Project Site Map is provided in Attachment 1. CCSM and its Relocation Consultant have prepared and will administer this Relocation Plan (the "Plan"), under the direction of or in cooperation with the Agency. This Plan sets forth policies and procedures necessary to conform with statutes and regulations established by the California Relocation Assistance Law, California Government Code section 7260 et seq. (the "CRAL") and the California Relocation Assistance and Real Property Acquisition Guidelines, 1 Title 25, California Code of Regulations, chapter 6, section 6000 et seq. (the "Guidelines"). No displacement activities will take place prior to the required reviews and approval of this Plan. A. ASSESSMENT OF NEEDS To obtain information for the preparation of this Plan, personal interviews were conducted with members of the each household living on the Project site. CCSM hired an outside consulting firm, Shober Consulting, Inc., to assist in the planning and implementation phases of the displacements. The table on Attachment 2 shows some of the household characteristics and needs. As indicated on the table in Attachment 2, there are three households that will be displaced. The households' reported income levels fall within the area's very-Iow- and moderate- income categories as established by HUD for Los Angeles County and shown in Attachment 3. The displaced households currently reside in a one-bedroom unit, a two-bedroom unit, and a three-bedroom unit, located on the northeast corner of High Place and Virginia Avenue, between Virginia Avenue and Interstate 10, and between Cloverfield Boulevard and Frank Street. Immediately to the north of the Project site is Interstate 10, while residential uses face the Project site to the west and east. An elementary school is adjacent to the site to the south. Additional amenities within a 1-mile radius include Virginia Avenue Park, Santa Monica College, a variety of commercial uses on Pico Boulevard and first class office buildings across Interstate 10 on Olympic Boulevard. Nearby Cloverfield and Pi co boulevards are served by major bus transit lines. B. REPLACEMENT HOUSING RESOURCES Resource housing studies were made beginning July 26, 2005 to identify available comparable, decent, safe and sanitary units available in close proximity to the Project site. One one- bedroom unit, one two-bedroom unit, and one three-bedroom unit will be required to adequately relocate the Project site households. Therefore, the survey focused on confirming the availability of decent, safe, and sanitary units, which contain the required minimum number of bedrooms, are of adequate size for the households, and are comparable with respect to the number of rooms and habitable living space. Based on that survey, the results of which are included as Attachment 4, an adequate number of available comparable, decent, safe, and sanitary units of adequate size and the required number of bedrooms and location, were found to meet the needs of the displaced households. C. CONCURRENT RESIDENTIAL DISPLACEMENT There are no other current or proposed displacing activities in the vicinity of the project that would impact the ability to relocate the displaced households. D. TEMPORARY HOUSING There is no anticipated need for temporary housing. Should such a need arise, the displacing entity will respond appropriately and in conformance with all applicable laws and requirements. 2 CCSM will assist in advance payments to help secure the new unit. E. PROGRAM ASSURANCES AND STANDARDS There are adequate funds to relocate the remaining households. Services will be provided to ensure that displacement does not result in different or separate treatment of this household based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. No one will be displaced without 90 days notice and unless "comparable" replacement housing can be located and is available. "Comparable" housing includes standards such as: decent, safe, and sanitary (as defined in 9 6008(d) of the Guidelines); comparable as to the number of bedrooms, living space, and type and quality of construction of the acquired unit but not lesser in rooms or living space than necessary to accommodate the displaced household; in an area that does not have unreasonable environmental conditions; not generally less desirable than the acquired unit with respect to location to schools, employment, health and medical facilities, and other public and commercial facilities and services; and within the financial means of the displaced household as defined in section 6008, subdivision (c)(5) of the Guidelines. The relocation program to be implemented by the displacing entity conforms with the standards and provisions set forth in Government Code section 7260 et seq., the Guidelines, California Health and Safety Code section 33410 et seq., if applicable, and all other applicable regulations and requirements. F. RELOCATION ASSISTANCE PROGRAM Shober Consulting, Inc. is available to assist the displaced households with questions about relocation and/or assistance in relocating. Bob Shober of Shober Consulting, Inc. can be contacted at (310) 476-5433 and is located at 520 South Sepulveda Boulevard, Suite 204, Los Angeles, CA 90049. A comprehensive relocation assistance program, with technical and advisory assistance, is being provided to the households being displaced. Contact has been made or will be maintained with the households. Specific activities include: 1. Distribution of informational brochures. Attachment 5 contains the informational notices that were given to the displaced households. (See Attachment 5) The informational notices were received by the households on Sept. 7 and Sept. 9, 2005. 2. Timely referrals to at least three comparable replacement units as defined above and, if necessary, transportation will be provided to inspect potential replacement units. 3. Assistance with completion and filing of relocation claims, rental applications, and appeals forms, if necessary. G. CITIZEN PARTICIPATION/PLAN REVIEW 3 This Plan will be provided to the remaining households and will be made available to the public for the mandatory thirty (30) day review period. Comments to this Plan will be included as a Plan addendum prior to submission for approval by the Agency. A copy of the approved Plan will be forwarded to the California Department of Housing and Community Development (HCD). H. RELOCATION BENEFIT CATEGORIES Relocation benefits will be provided in accordance with the CRAL, the Guidelines, and all other applicable regulations and requirements. Benefits will be paid upon submission of required claim forms and documentation in accordance with approved procedures. The displacing entity will provide appropriate benefits for each displaced household as required by the above laws and requirements. Residential Moving Expense Payments The subject household will be eligible to receive a payment for moving expenses. Payments will be made based upon either a fixed room count schedule or an invoice for actual reasonable moving expenses from a licensed professional mover. 1) Fixed Payment - A fixed payment for moving expenses based on the number of rooms containing furniture or other personal property to be moved. The fixed moving payment will be based upon the most recent Federal Highway Administration schedules maintained by the California Department of Transportation, as indicated in Attachment 6. -OR- 2) Actual Reasonable Moving Expense Payments - The displaced household may elect to have a licensed, professional mover perform the move; if so, the displacing entity will pay for the actual cost of the move up to 50 miles and all reasonable charges for packing, unpacking, insurance, and utility connection charges. The payment will be made directly to the mover or as reimbursement to the displaced household. Rental Assistance/Down Payment Assistance Displaced households who are residential tenants and who have established residency within the Project site for a minimum of 90 days prior to the "initiation of negotiations" will be eligible for both Rental Assistance and Moving Expense Payments. "Initiation of Negotiations" is defined as the later of the actual date of acquisition or the date of the Agreement between the private entity and the publiC agency for purposes of acquiring and developing or rehabilitating the subject property. In this case, the estimated or actual date of "initiation of negotiations" is April 2005, the date the City of Santa Monica received CCSM's request to change from a rehabilitation project to a new construction project. It is anticipated that a loan agreement between CCSM and the Agency, which will provide predevelopment funding related to the new construction 4 project, will be executed around December 1, 2005. Except in the case of Last Resort situations, Rental Assistance Payments will be limited to a maximum of $5,250 based upon the monthly housing need over a forty-two (42) month period. In addition, the households may opt to apply the amount to which they are entitled toward the purchase of a replacement unit. If a household chooses to purchase a replacement home rather than rent, the household will have the right to request a lump sum payment of the entire balance to which they are entitled. Assistance to Homeowners No homeowners will be displaced by this Project. Last Resort Housing Payment There is adequate "comparable replacement housing" according to the attached housing survey (Attachment 4). However, last resort housing payments may be authorized if replacement housing is not affordable to the displaced households (i.e. housing costs not more than 30% of the household's average monthly income.). In this case, payments may be made beyond the $5,250 statutory cap up to 42 months worth of rental assistance. The supplement increment beyond $5,250 may be paid in installments or in a lump sum at the discretion of the Agency. Eligibility for last resort housing payments will be reviewed on a case by case basis as will the determination of lump sum versus installment payments. I. PAYMENT OF RELOCATION BENEFITS Relocation benefit payments will be made expeditiously. Claims and supporting documentation for relocation benefits must be filed with the displacing entity within eighteen (18) months from: (i) the date the claimant moves from the acquired property; -or- (ii) the date on which final payment for the acquisition of real property is made, whichever is later. Procedures for preparing and filing of claims and processing and delivering of payments are attached as Attachment 7. No household will be displaced until "comparable" housing is located as defined above and in section 6008, subdivisions (c) and (d) of the Guidelines. Relocation staff will inspect any replacement units to which referrals are made to verify that they meet all the standards of decent, safe, and sanitary as defined in section 6008, subdivision (d) of the Guidelines. However, no household will be denied benefits if it chooses to move to a replacement unit which does not meet the standards of decent, safe, and sanitary housing. J. EVICTION POLICY The displacing entity recognizes that eviction is permissible only as a last resort and that relocation records must be documented to reflect the specific circumstances surrounding any eviction. Eviction will only take place in cases of nonpayment of rent, serious violation of the rental agreement, a dangerous or illegal act in the unit, or if the household refuses all 5 reasonable offers to move. Eviction will not affect the eligibility of a person legally entitled to relocation benefits. K. APPEALS POLICY The appeals policy will follow the standards described in section 6150 et seq. of the Guidelines. Briefly stated, the displaced household will have the right to ask for review when there is a complaint regarding any of its rights to relocation and relocation assistance, such as a determination as to eligibility, the amount of payment, or the failure to provide a comparable replacement housing referral. Information regarding the appeals policy and procedure is contained in Attachment 8. L. PROJECTED DATES OF DISPLACEMENT The remaining households will receive a gO-day notice to vacate before they are required to move. Relocation is expected to be completed for all the households on or about January 15, 2006, but in any event, the households will not be required to move until the gO-day notice has expired. M. ESTIMATED RELOCATION COSTS The displacing entity anticipates using Redevelopment Housing Trust Funds for the Project. Any and all required financial assistance will be provided. The relocation budget estimate for this Project is not expected to exceed $120,000. N. SUMMARY CCSM is committed to provide the displaced households at the Project site with all appropriate relocation assistance and services as required under the state relocation guidelines in order to address the needs of the displaced households. The Relocation Plan clearly shows there are ample units available nearby, and the financial benefits will subsidize the resulting increase in rent, if any, for the mandated 42 months of subsidy. 6 Attachment 1: Attachment 2: Attachment 3: Attachment 4: Attachment 5: Attachment 6: Attachment 7: Attachment 8: Attachment 9: TABLE OF ATTACHMENTS Project Site Map Household Characteristics and Needs FY 2005 HUD Income Limits for Los Angeles County Replacement Housing Survey Results Brochure given to Displaced Household Current Fixed Payment Moving Schedule Relocation Payment Policy Established Appeals POlicy and Procedures Plan Addendum - Comments on the Plan 7 Attachment 1 Project Site Map "\''>'" .......,~:at:.,'~ .... / ("-,\ \:'~J! Y'/" .1 ''''''~ \: ......J~/\.,q~',,//" '. ~~/ . <~". 'c 6\'f~..- .' (i'~'. $.!t'~.. :~~;>(:Q).. .... ":./.~ 4~::'~"~". ,,"~~'^~....... VJ"~\l\1\~~-..--"':--,,""'" u, ,) f '_', _., _," _._ ........... /' ./ ~ ,.........-.' ., .~~~.... '_"'_\~.".1.\'" "<, ". ~,. '. ~cl, ':0./ _'., J '""_ ",.",,0', .,~ .~~ . ., '\. ~ <<"'''..t ~,/ _ ). , ". . 1J!.' t ';1/&'",>, 0",.., ',...>,"~r'. ....0' ..'_ \\>.::\",ci~'i<~' ,<,~~~ /'/" ~'/ '-'~ :?si!(ll:I!II.~ , ) "'''~' .... '<;-" ';. .' ' ~ / -",";>' . . .. ...-~\.. . '",.~. Y./' ,,"- ~. /.', ..' \, \. /", 'j. .. "w'o ..,~. l~' -. ,,~., '. I"A I' ..1'\ia.: . -.:::' ,,-~"'____'~,".<lr' ...... .....v " :>:"!"QII' ,../ '. ' / \\ '6:')I.'1P'~. ......'-",,; "'? ' . ". :Y- / J L /).. \'Z;;?k~ \\ ~~~~i::;"" '/i /~~\1 . /',. '...... ,/ r' .... r',/~<'~ -'" \~{. '" . .f":>[/:" ',.,"l\1" :.l- <. ''',''. /#.l " ''-, ... . < ''0 '" . ,r.,.. ", ", ---K, ",...... . ". . >~I".> ". . )/ ~"'\ " . '. J*'" _J''' ',,:::.;..~"" . _,j'.I'~.-", .. \~\:. , y......., <'. ".'" " ." ".- , " >', ~ ;~:'~:..\::~~::. " ')\, ~,::><\ \~\~ '\::\ ~O/' .~, ,-,-,,"',/,\\. \\ \\:)0- \ -",,"// ".,'....,'( ~\,\,. '.,\\!,! "...'/' \,jII , ~;> ", /';,'::"':\ \,~:,\ '<'~>,\:>, S,:,;. '. ',.oJ.' e / / ...''\:~ ~" ,:. ~ ~, '. ~ ~<'\, \,;>~'." \': "'>" />- -<, .....,,/ " " "<,:>. \~\ \\~':'-""-'""::~'~~ '~<./ /~'i . <~~~\'" ", '::\:-"..., \>::\ .\':~.~~~~ \'{. .$~/' l~ ,<,~/ /\,\ \,\ '. , . \~':""'..\.,. \\ \,,, .s' "'( fA ",,~.~.J. "'~ '<'. \ .... \,~\ \ \ ''I. >" ,'~' :\i) "-~' '.\ "~~~;:~~~~:~<\~'~:~,'\>),;<)::~~~~~~',::~:~~:~;. , '<.>\ \.:>" "'.<,\""" \~'v'-::=:/''"'" \,~>.~. ". "-<>"".\\.<::\'~~. )) ;;.~~".. \'\-. "'\,'" \_, \ ~"< ( ~'J, \'Sf ~ ~';:' , . .\ ,. \" \~\\L... ,...~"..\.. ~~..r.. "".. .,~.,:- <\ \,,, \ "'",' ~\ ,-"~ <"{-~ \, \ \:~,,,",,~;'~A,,,. \~ ........:,.., . \...\. \~t1j "'.",_'" r \~. ,....".J...,( '\'\,!\S!:\_-"', ;\ '\\ov:/"'/ ;:.{~~::t,:\..<:::',~,,\<~~\:\:::;\\ \~):,.,~;>,..l , 8 Attachment 2 Household Characteristics and Needs Site # of Number of Number Number Number of Average Special Address Households Occupant of of Elderly persons with Occupancy Language s Children (age 62 Disabilities per Unit Needs and over) 1943 High 0 0 0 0 0 0 0 Place 1949 High 1 2 0 0 1 2 0 Place 1955 High 0 0 0 0 0 0 0 Place 1955 1/2 0 0 0 0 0 0 0 High Place 1959 High 1 3 0 2 1 3 0 Place 1959 ~ 1 4 0 0 0 4 0 High Place 9 Attachment 3 HUD Income Limits for Los Angeles County - 2005 1 2 3 4 5 6 7 8 person person person person person person person person Very Low- 22,950 26,200 29,500 32,750 35,350 38,000 40,600 43,250 Income Low-Income 36,700 41,900 47,150 52,400 56,600 60,800 65,000 69,150 Moderate- 46,250 52,900 59,500 66,100 71 ,400 76,700 81,950 87,250 Income 10 Attachment 4 Replacement Housing Survey Results Date Available Units Number of Bedroom Location Rent Identified* Available units identified 9/1/2005 - 9/9/2005 11 1 Santa Monica 745 - 1,200 9/1/2005 - 9/9/2005 6 2 Santa Monica 1,200- 1,700 9/1/2005 - 919/2005 7 3 Santa Monica 2,250- 2,695 Market data indicates that there has been no substantial decrease in the availability of comparable replacement dwellings. 11 ATTACHMENT NO.5 SHOBER-LIVAS RELOCAllON INFORMATIONAL STATEMENT FOR FAMILIES AND INDIVIDUALS Shober-Livas Relocation 520 S. Sepulveda Blvd. Suite 204 Los Angeles, CA 90049 Phone: 310-476-5433 Fax: 310-476-5583 12 INFORMATIONAL STATEMENT FOR FAMILIES AND INDIVIDUALS Please do not move prematurely. This is not a notice to vacate your dwelling!! I. GENERAL INFORMATION II. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING III. MOVING BENEFITS IV. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS V. SECTION 8 ASSISTANCE VI. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS VII. LAST RESORT HOUSING ASSISTANCE VIII. RENTAL AGREEMENT IX. ApPEAL PROCEDURES - GRIEVANCE X. TAX STATUS OF RELOCATION BENEFITS XI. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE General Information The building in which you now live is in a portion of the Community Corporation of Santa Monica Project Area to be rehabilitated. As the project schedule proceeds, it will be necessary for you to move from your dwelling. You will be notified in a timely manner as to the date by which you must move. Please read this information carefully as it will be helpful to you in determining your eligibility and the amount of your relocation benefits under the federal and/or state law. We suggest you save this informational statement for reference. The Community Corporation of Santa Monica has retained the services of Shober-Livas Relocation (Shober-Livas), a qualified professional relocation firm, to assist you. Shober-Livas can be reached at their corporate office at: Shober-Livas Relocation 520 S. Sepulveda Blvd. Suite 204 Los Angeles, CA 90049 Phone: 310-476-5433 Fax: 310-476-5583 Spanish speaking representatives are available. Si necesita esta informacion en Espanol, por favor lIame a su representante. 13 ~ll information obtained by your relocation consultant will be kept confidential. Please do not move prematurely. This is not a notice to vacate your dwelling. However, if you desire to move sooner than required, you must contact your representative with Shober-Livas Relocation so you will not jeopardize any benefits. This is a general information brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Community Corporation of Santa Monica's relocation assistance program. Assistance in Locating a Replacement Dwelling The Community Corporation of Santa Monica, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe, and sanitary housing requirements. A decent, safe, and sanitary housing unit provides adequate space for its occupants, proper weatherproofing, and sound heating, electrical, and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. Moving Benefits If you must move as a result of displacement by the Community Corporation of Santa Monica, you will receive a payment to assist in moving your personal property. There are two types of moving payments. You have the option of selecting either one of the following types of moving payments: Fixed Moving Payment A fixed moving payment is based upon the number of rooms you occupy and whether or not you own your furniture. The payment is based upon a schedule approved by the Community Corporation of Santa Monica and ranges, for example, from $375.00 for one furnished room to $2,000.00 for eight rooms in an unfurnished dwelling (for details see the table below). Your relocation representative will inform you of the amount you are eligible to receive if you choose this type of payment. 14 FIXED MOVING SCHEDULE (CALIFORNIA) Occupant owns furniture Occupant does not own furniture 1 room $575.00 1 room $375.00 2 room s Each additional room $60.00 $750.00 3 rooms $925.00 4 room s $1,100.00 5 room s $1,325.00 6 rooms $1,550.00 7 room s $1,775.00 8 rooms $2,000.00 Each additional room $200.00 If you select a fixed payment, you will be responsible for arranging for your own move and the Community Corporation of Santa Monica will assume no liability for any loss or damage of your personal property. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed commercial mover and have the Community Corporation of Santa Monica pay the bill. you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation representative will inform you of the number of competitive moving bids (if any) which may be required and assist you in developing a scope of services for the Community Corporation of Santa Monica's approval. IV. Replacement Housing Payment - Tenants and Certain Others You may be eligible for a payment of up to $5,250.00 to assist you in renting or purchasing a comparable replacement dwelling. In order to qualify you must either be a tenant who has occupied your present dwelling for at least 90 days prior to the Community Corporation of Santa Monica's first offer to purchase the property or an owner who has occupied your dwelling for between 90 and 180 days prior to the Community Corporation of Santa Monica's first offer to purchase the property. A. Rental Assistance If you qualify and wish to rent your replacement dwelling your rental assistance benefits will be based upon the difference over a forty-two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent or thirty percent (30%) of your gross monthly household income. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment. Note: Initial advance payments can be made, if requested, to provide displacees with sufficient means to cover move-in expenses. 15 - OR- B. Down Payment Assistance If you qualify and wish to purchase a home as a replacement dwelling you can apply up to the total amount of your rental assistance payment towards the down payment and non-recurring incidental expenses. Your relocation representative will clarify procedures necessary to apply for this payment. V. Section 8 Assistance Any displaced household that wishes to obtain a Section 8 housing certificate will be assisted by the Community Corporation of Santa Monica for that purpose. Section 8 housing assistance assures families affordable rent for the time they remain in the program. Monthly rent on the Section 8 program is typically limited to 30% of gross household income. Families must meet certain income requirements to qualify. In those circumstances where eligibility for Section 8 assistance is reduced because of residency status problems, the Community Corporation of Santa Monica will provide supplemental cash assistance. This assistance, called GAP-RAP, will last for 42 months and will be used to maintain tenant rent contributions at the same 30% level as for other program participants. 1m orlant Note: Those households otherwise eligible to return to the Project, save for the curren vailabilityof adequately sized units will have "priority status" with respect to any units of adequate siz hich may subsequently become available through the development of the Community Corporation 0 Santa Monica Project. Federal rules provide that an otherwise eligible non-citizen can receive benefits nd services, the receipt of which will not be considered by immigration officials in making a negative, "public charge" determination which could otherwise result in a non-citizen being determined inadmissible to the United States; ineligible to adjust their immigration status; or deportable on th rounds that he or she is likely to be or is a "public charge". Not all publicly funded benefits ar onsidered by the Immigration and Naturalization Service (INS) or the State Department in deciding hether someone is, or is likely to become, a "public charge". Among the many examples of benefit hat are not considered for "public charge" purposes are "housing benefits". Not all cate ories 0 liens however are eli Ible to receive all of the t es of benefits and this includes housin enefits. ource: U.S. Department of Housing and Urban Development (HUD) - Notice H 99-20 VI. Qualification for and Filing of Relocation Claims To qualify for a replacement housing payment, you must rent or purchase and occupy a comparable replacement unit within one year from the later of the following: A. For a tenant: the date you move from the displacement dwelling B. For an owner-occupant: the date you receive final payment for the displacement dwelling or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court - OR - C. The date the Community Corporation of Santa Monica fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with the Community Corporation of Santa Monica within eighteen (18) months from the date on which you receive final payment for your property or the date on which you move, whichever is later. 16 VII. Last Resort Housing Assistance If comparable replacement dwellings are not available when you are required to move or if replacement housing is not available within the monetary limits described above the Community Corporation of Santa Monica will provide "last resort'" housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last resort housing assistance is based on the individual circumstances of the displaced person. Your relocation representative will explain the process for determining whether or not you qualify for last resort assistance. If you are a tenant and you choose to purchase rather than rent a comparable replacement dwelling the entire amount of your rental assistance and last resort eligibility must be applied toward the down payment of the home you intend to purchase. VIII. Rental Agreement As a result of the Community Corporation of Santa Monica's action to purchase the property where you live you may become a tenant of the Community Corporation of Santa Monica. If this occurs you will be asked to sign a rental agreement that will specify the monthly rent to be paid, when rent payments are due, where they are to be paid, and other pertinent information. Except for causes of eviction set forth below no person lawfully occupying property to be purchased by the Community Corporation of Santa Monica will be required to move without having been provided with at least ninety (90) days written notice from the Community Corporation of Santa Monica. Eviction will be undertaken only in the event of one or more of the following infractions: A Failure to pay rent; except in those cases where a failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action, or is the result of discontinuation or substantial interruption of services; performance of dangerous illegal acts in the unit; material breach of the rental agreement and failure to breach within 30 days of notice; maintenance of a nuisance and failure to abate within a reasonable time following notice; refusal to accept one of a reasonable number of offers of replacement dwellings; or B. Performance of dangerous illegal acts in the unit; C. Material breach of the rental agreement and failure to correct breach within 30 days of notice; D. Maintenance of a nuisance and failure to abate within a reasonable time following notice; E. Refusal to accept one of a reasonable number of offers of replacement dwellings; F. The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. IX. Appeal Procedures - Grievance Any person aggrieved by a determination as to eligibility for a relocation payment, or the amount of payment, may have his/her claim reviewed or reconsidered in accordance with the Community Corporation of Santa Monica's appeals procedure. Complete details on appeal procedures are available upon request from the Community Corporation of Santa Monica. X. Tax Status of Relocation Benefits Relocation benefit programs are not considered to be Income for the purposes of the Internal Revenue Code of 1986 or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. 17 XI. Additional Information and Assistance Available Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process please do not hesitate to contact your relocation representative. 18 Attachment 6 Current Fixed Payment Moving Schedule. o t F 't ccupan owns urnl ure 1 room $575.00 2 rooms $750.00 3 rooms $925.00 4 rooms $1,100.00 5 rooms $1,325.00 6 rooms $1,550.00 7 rooms $1,775.00 8 rooms $2,000.00 Each additional room $200.00 o d f 't ccupant oes not own urn! ure 1 room $375.00 Each additional room $60.00 19 Attachment 7 Relocation Payment Policy regarding Procedures for Relocation Payments and Assistance 1. Relocation consultant will meet with displacees and assist displacees in filling out all necessary relocation claim forms. 2. Relocation consultant will submit the relocation claim to CCSM. 3. Upon approval of claim CCSM will submit the claim to its accounting department to procure a cashier's check from the bank. 4. Within two weeks CCSM will provide relocation consultant with the check made payable to the displacees. 5. Relocation consultant will deliver check to displacees and provide CCSM with documentation that displacees received the check. 20 Attachment 8 Appeals Policy and Procedures If a displaced person disagrees with any recommendation made by the relocation consultant, he or she may request that CCSM review that recommendation. Requests for review should be addressed to the attention of Milo Peinemann, Project Manager and sent to CCSM, 1423 Second Street, Suite B, Santa Monica, CA 90401. CCSM will promptly review the consultant's recommendation and notify the displaced person of its decision. If the displaced person feels the issue has not been resolved satisfactorily, he or she may request a review of CCSM's decision by the Redevelopment Administrator of the Agency and may request a written explanation of the Administrator's decision. If the displaced person disagrees with the Administrator's decision, he or she may request an informal presentation to the Agency's Designee or a formal review and reconsideration by the Relocation Appeals Board. That request must be made within 18 months following the date the person moves from the property or the date he or she receives final compensation for the property, whichever is later. Upon request, the Agency will provide a copy of its Relocation Rules and Regulations setting forth its grievance procedure. 21 Attachment C REPLACEMENT HOUSING PLAN For the High Place East Property INTRODUCTION AND STATEMENT OF PURPOSE The City of Santa Monica Redevelopment Agency ("Agency") is proposing to provide financial assistance to the Community Corporation of Santa Monica ("CCSM") for predevelopment and construction costs associated with a proposed development known as High Place East ("Project"). The proposed Project will entail the demolition of existing affordable residential units and the new construction of affordable housing units as defined below. Section 33413.5 of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.) requires the Agency to adopt a replacement housing plan when it enters into certain agreements that would lead to the destruction or removal of dwelling units from the low and moderate income housing market. Section 33413(a) requires that whenever dwelling units occupied by low and moderate income households are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, the agency shall within four years of the destruction or removal, rehabilitate, develop, construct or cause to be rehabilitated, developed or constructed, for rental or sale to persons and families of low or moderate income at an affordable housing cost an equal number of replacement dwelling units containing an equal or greater number of bedrooms as the destroyed units. Section 33413(f) permits the agency to satisfy its replacement housing obligation with fewer units so long as (i) the total number of bedrooms in the replacement units equals or exceeds the number of bedrooms in the destroyed units, and (ii) the replacement units are affordable to and occupied by the same income level of households as the destroyed units. Replacement housing units can be developed anywhere within the agency's jurisdiction. This Plan has been prepared to satisfy the requirements for replacement housing under California Health and Safety Code Sections 33413 and 33413.5. This Plan describes the following: 1. Proposed project 1 2. Project location 3. Development of the replacement housing 4. Financing the replacement housing 5. Schedule for the construction of the replacement housing 6. Period for which the replacement units will remain affordable 7. Article XXXIV Compliance 8. Availability of the Plan for public review DEFINITIONS Very-low-Income Household Persons and families whose gross household income does not exceed 50 percent of the area median income adjusted for family size as more specifically defined in Section 50105 of the California Health and Safety Code. Low-Income Household Persons and families whose gross household income does not exceed 80 percent of the area median income adjusted for family size as more specifically defined in Section 50079.5 of the California Health and Safety Code. Moderate-Income Household Persons and families whose gross incomes exceed 80 percent but do not exceed 120 percent of the area median income, adjusted for family size as defined more specifically in Section 50093 of the California Health and Safety Code. PROPOSED PROJECT The proposed Project will entail the new construction of approximately 40 two-bedroom and three-bedroom affordable housing units; and the demolition of seven (7) housing structures which for purposes of the Santa Monica Rent Control Board are registered as 14 Rent Control units. The total number of housing units and bedrooms to be constructed is currently in the early conceptualization stage. The Project is conceived as a site for a proposed affordable homeownership development. This concept is scheduled for review by the City Council and Agency Board on Oct. 25, 2005. The City's Housing Commission, in August 2005, discussed the various approaches to affordable homeownership and considered matters such as the accepted amount of City subsidy and the income groups to target for homeownership opportunities. The Commission supports the concept of a moderate income homeownership development on the site known as High Place East. PROJECT LOCATION 2 The proposed Project is located at the northeast corner of High Place and Virginia Avenue. The addresses for the units are 1955 High Place, 1955 Y2 High Place, 1959 High Place, 1959 Y2 High Place, 1959~P High Place, 1943 High Place, and 1949 High Place. A map of the project location is provided in Exhibit 1. REPLACEMENT HOUSING UNITS Fourteen (14) of the bedrooms in the existing units were most recently rented to households at or below moderate income. This Replacement Housing Plan describes the measures that the Agency will take to ensure the production of 14 replacement dwelling units within four years after the removal of the units from the low- and moderate-income housing market as part of Project. One hundred percent (100%) of the replacement dwelling units must be available at affordable housing cost to, and occupied by, persons in the same or lower income category as the very low, low or moderate income persons displaced from the 14 original units. The Agency will provide replacement housing by utilizing the surplus of housing units and bedrooms to be constructed from a previously funded affordable housing project located at 2411 Centinela Avenue. Exhibit 2 describes the income categories and number of housing units, with the corresponding number of bedrooms, that will be demolished and the replacement housing units, with corresponding number of bedrooms, which will be constructed to meet the Agency's replacement housing requirements under the Community Redevelopment Law. FUNDING SOURCES The Redevelopment Plans for the various Agency redevelopment project areas authorize the Agency to finance its activities with assistance from various sources, including the City of Santa Monica, State of California, United States Government, property tax increment funds, interest income, Agency bonds, or other available sources. The replacement housing units are anticipated to be financed with Redevelopment Housing Trust Funds, Tax Exempt Bonds, Tax Credit Equity, Multifamily Housing Program (State funds) and Multifamily Housing Program - Nonresidential Space for Supportive (MHP NSSS) funds. TIMELlNE FOR REPLACEMENT HOUSING All of the replacement units will be available for occupancy before a date that is four years after commencement of demolition. The construction of the replacement units for the Project is anticipated to be completed 3 by September 2007. LOW/MODERATE INCOME ASSURANCE The Agency's agreement with CCSM for the replacement units will require the recordation of a covenant against the site requiring at least 55 years of very low and low income affordability, as required by Community Redevelopment Law. Moreover, the Agency, in accordance with California Health and Safety Code Section 33418, monitors on an ongoing basis, any housing affordable to persons and families of low or moderate income developed or otherwise made available pursuant to agreements with the Agency. ARTICLE XXXIV COMPLIANCE The Agency determined that the replacement housing to be developed and constructed under this replacement housing plan does not require approval of the voters of the City of Santa Monica pursuant to Article XXXIV of the California Constitution. The project will consist of the replacement of and addition to a project previously or currently occupied by lower income households as defined in Health & Safety Code Section 50079.5 and is therefore exempt from Article XXXIV requirements by Health & Safety Code Section 37001 (f). In any event, authority to develop new affordable housing units under Article XXXIV is found in a Santa Monica voter-approved initiative adopted on November 3, 1998 known as Proposition I, which grants annual (fiscal year) authority to the City to develop, construct or acquire low rent housing projects. AV AILABILlTV OF PLAN FOR REVIEW In accordance with Community Redevelopment Law, a copy of this Replacement Housing Plan will be available for review and comment by other public agencies and the general public at the City of Santa Monica Redevelopment Agency, 1685 Main Street, Room 212, Santa Monica, CA 90401. Publication of a notice of the Plan's availability will be given in a newspaper of general circulation a reasonable time prior to the Redevelopment Agency's adoption of the Plan. 4 EXHIBIT 1 Map ~ . ....~.."". ..... .,~:...~.." .,",...w.... ::/......,,_ ........., ../ '. <;. .' s.. . .. . A) ,;"0; :"7 ~...., '<",. .,;,;,...,;.; 'i>/ . '. ...,..'-.....~ "".0. ....., i'O. ". "'.,"'.. -' ~ ' i:..l?..r",. ;,~~:.:,., .--," .,~ "<" ~&:: .._">.;r4 :.a:.::~ ,~.' ,.,' '1'.' " H. . '~-t ' ; ~~t~~~:~~~"~' ...' '(2 '~?' ..... . '6WO .r.:. \~. ...-.'1...... .n..,,~.C.." /' \N V~,U'~ ." ~."..'" ..,.."'. ._"".'-' ~, !"... ...... ..... '." .,::~~~~", ~,&. . " .i"_ i.,.-l" ver 5 EXHIBIT 2 Site Address #of Existing # of Existing # of Existing total # of # of # of # of Residential Residential Rent Control bedrooms bedrooms bedrooms bedrooms structures units units occupied by occupied occupied by very low by low moderate income income income hhlds hhlds hhlds 1943 High Place 1 1 2 2 2 0 0 1949 High Place 1 1 1 1 0 0 1 1955 High Place 1 1 1 2 0 0 2 1955 1/2 High 1 1 4 3 3 0 0 Place 1959 High Place 1 1 1 2 2 0 0 1959 V2 High Place 1 1 4 3 3 0 0 1959-P 1 1 1 1 1 0 0 TOTAL 7 7 14 14 11 0 3 TOTAL 11 0 3 Bedrooms to be ReplaCed Per Section 33413(f)(1) of the California Health and Safety Code, "destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom." Where income certification or verifiable income information was not available for certain households, those households are treated as very low income for purposes of this Replacement Housing Plan. 6 Replacement Housing Units to be Constructed Site Address # of # of total # of # of bedrooms # of bedrooms # of bedrooms replacement bedrooms bedrooms to be occupied to be occupied to be occupied units per unit by very low by low income by moderate income households** income households households Surplus 10 2 20 2 18 0 Bedrooms from the 2411 Centinela Ave Project 16 3 48 21 27 0 High Place 1 2 2 2 0 0 (East) Project 4 3 12 9 3 0 Total 9 2 18 0 18 0 Remaining Surplus Units 13 3 39 12 24 0 12 42 0 TOTAL remaining # of banked bedrooms **The replacement housing obligation for moderate-income units will be met with low-income units. 7 ATTACHMENT D AGENCY RESOLUTION APPROVING THE REPLACEMENT HOUSING PLAN FOR 1949-1959 HIGH PLACE SEE ADOPTED RESOLUTION NO. 494 (RAS)