SR-407-003-20
Agency Meeting: October 11, 2005 Santa Monica, California
TO: Chairperson and Redevelopment Agency Members
From: Agency Staff
Subject: Replacement Housing Plan for the proposed Affordable housing
development at 2411 & 2423 Centinela Avenue Project
INTRODUCTION
This report requests that the Redevelopment Agency (“Agency”) approve the proposed
Resolution adopting the Replacement Housing Plan for 2411 & 2423 Centinela Avenue.
BACKGROUND
The proposed project at 2411 & 2423 Centinela Avenue (“Project”) is a new construction
affordable housing development of Community Corporation of Santa Monica (CCSM),
located 1 ½ blocks south of Ocean Park Boulevard, between Pico Boulevard and Pearl
Street. The Project will entail the demolition of 22 existing rental housing units and the
replacement of them with the construction of 36 new affordable rental units, which was
approved by Rent Control Board.
Under California Redevelopment Law, Section 33413.5 (Health and Safety Code,
Section 33000 et seq.), the Agency must adopt a replacement housing plan when
destruction or removal of low and moderate-income residential units occurs as a result
of an Agency assisted project. A replacement housing plan describes the measures
the Agency will undertake to provide and/or produce comparable replacement housing
within four years following demolition of the original units. The proposed Replacement
Housing Plan for the Centinela Avenue project has been made available to the public
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for review as required by Community Redevelopment Law.
DISCUSSION
In accordance with California Redevelopment Law, Section 33413 (a) the Agency will meet
its replacement housing obligations by implementing the following measures:
?
Replacing the removed units with comparable housing within four years of
demolition
?
Ensuring 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 2411 & 2423 is anticipated to commence in June 2006.
Currently, there are 8 zero-bedroom (studio) and 14 one-bedroom rental units at 2411 &
2423 Centinela Avenue as displayed in Table 1. The new construction component of the
Project is anticipated to be completed in September 2007, well within four years of
demolition.
Table 1
Housing Units to be Removed
Site # of existing # of total # of # of bedrooms # bedrooms
1
units bedrooms bedrooms occupied by occupied by low
1
per unitvery low income
income households
2
households
2411 Centinela 14 1 14 14 0
2423 Centinela 8 1 8 8 0
Total 22 22 22 0
1
The units located at 2411 Centinela are zero bedroom (studio) units, however, 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.”
2
California Redevelopment Law, section 33413(f), allows the Agency to replace destroyed
or removed housing units with a lesser number of replacement housing units if the
following criteria are met:
?
The total number of bedrooms in the replacement housing units equals or exceeds
the number of bedrooms in the destroyed or removed units, and
?
The replacement units are affordable to same income level of the households as
the destroyed or removed units.
Accordingly, the Agency will replace the removed units with new construction units as
detailed in Table 2:
Table 2
Replacement Housing Units to be Constructed
Site # of # of total # of # of bedrooms # of bedrooms
replacement bedrooms bedrooms to be to be occupied
units per unit occupied by by low income
very low households
income
households
8* 2 16 16 0
2* 3 6 6 0
Total 10* 22 22 0
* Although 10 new units are considered replacement units, the new project includes 36 units, consisting of 18
two-bedroom and 18 three-bedroom units. This results in a surplus of 26 units totaling 68 bedrooms, which the
Agency will ‘bank” to satisfy future replacement housing obligations of the Agency.
BUDGET/FINANCIAL IMPACT
The recommendation will not have budgetary or financial impacts.
RECOMMENDATIONS
It is recommended that the Agency approve the proposed Resolution adopting the
Replacement Housing Plan for 2411 and 2423 Centinela Ave.
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Prepared by: Jeff Mathieu, Director Resource Management Department
Ron Barefield, Acting Housing & Redevelopment Manager
Tina Rodriguez, Redevelopment Administrator
Jim Kemper, Acting Housing Coordinator
Nia Tang, Senior Administrative Analyst
Lyn Cacciatore, Deputy City Attorney
Attachment A: Replacement Plan for 2411 & 2423 Centinela Ave Project
Attachment B: Agency Resolution Approving the Replacement Housing Plan for
2411 & 2423 Centinela Ave Project
See Adopted Resolution No. 492 (RAS).
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ATTACHMENT A
REPLACEMENT HOUSING PLAN
For the
2411 & 2423 Centinela Avenue Project
INTRODUCTION AND STATEMENT OF PURPOSE
The City of Santa Monica Redevelopment Agency (the “Agency”) is proposing to provide
financial assistance to the Community Corporation of Santa Monica (“CCSM”) for
predevelopment and construction costs associated with a project at 2411 & 2423 Centinela
Avenue. The project will include the demolition of 22 existing rental housing units with a
total of 22 bedrooms (per Section 33413(f)(1) of the California Community Redevelopment
Law, “destroyed or removed units having one or no bedroom are deemed for this purpose
to have one bedroom.”) and the construction of 36 new units with a total of 90 bedrooms of
affordable rental housing on the site (the “Project”).
Section 33413.5 of California’s 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 of 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
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
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7. Article 34 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.
PROPOSED PROJECT
The proposed Project will be developed by CCSM, a California nonprofit, public benefit
corporation, with financial assistance from, among others, the Redevelopment Agency of
the City of Santa Monica, a public body, corporate and politic, exercising governmental
functions and powers and organized and existing under the California Community
Redevelopment Law.
The proposed Project entails the demolition of four multi-unit housing structures containing
8 zero-bedroom (studio) and 14 one-bedroom rental units and the new construction of 36
units consisting of 18 two-bedroom and 18 three-bedroom rental units.
CCSM purchased the two properties in December 2000 and January 2001 as
purchase/rehabilitation projects. In response to radically escalating rehabilitation and
insurance costs and an expanded scope of required rehabilitation work, the project scope
changed to new construction in late 2004 providing the opportunity to replace functionally
obsolete units with new modern units available to very low and low income families.
PROJECT LOCATION
The proposed Project is located at 2411 and 2423 Centinela Avenue – on Centinela
Avenue 1 1/2 blocks south of Ocean Park Boulevard, between Pico Boulevard and Pearl
Street. On Exhibit 1, a map of the project location is provided.
REPLACEMENT HOUSING UNITS
This Replacement Housing Plan describes the measures that the Agency will take to
ensure the production of 22 replacement units/bedrooms within four years after the
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removal of those units/bedrooms from the low and moderate income housing market as
part of the 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 and low income persons displaced from the 22 original
units/bedrooms.
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 that will be constructed to meet California’s
Redevelopment Law requirements.
The proposed Project will include 18 two-bedroom units and 18 three-bedroom units. Fifty
percent of each unit type will be Very-Low-Income (9 two-bedroom units and 9 three-
bedroom units) and the other 50 percent of each unit type will be Low-Income units (9 two-
bedroom units and 9 three-bedroom units). The 36 units developed as part of the Project
on the site will contain a total of 90 bedrooms and are scheduled to be completed within
four years after the demolition of the existing residential structures.
The Project will provide affordable units in excess of the replacement obligations triggered
by the Project; thereby providing the Agency with additional units to fulfill existing or future
replacement housing or housing production obligations under Sections 33413(a) and (b) of
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.
For this Project, the development of 36 housing units, including the replacement housing
units, is 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 Services (MHP NSSS) funds.
The Agency’s agreement with CCSM will provide that CCSM may not proceed with
demolition of the existing units until it has secured the necessary funding for development
of the replacement units.
TIMELINE 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 anticipated project timeline includes demolition of existing structures and
commencement of new construction in June 2006 and construction completion in
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September 2007.
LOW/MODERATE INCOME ASSURANCE
The Agency’s agreement with CCSM 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 34 COMPLIANCE
The Agency has 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.
AVAILABILITY 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.
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EXHIBIT 1
Map
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EXHIBIT 2
Table of Housing Units to be Removed and Replacement Units to be Constructed
Housing Units to be Removed
Site # of existing # of bedrooms total # of # of bedrooms # bedrooms
1 1
units per unitbedrooms occupied by occupied by low
very low income income
2
householdshouseholds
2411 Centinela 8 1 8 8 0
2423 Centinela 14 1 14 14 0
Total 22 22 22 0
1
The units located at 2411 Centinela are zero bedroom (studio) units, however, 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.”
2
Because income information was not readily available for all of the households previously occupying the
units that will be demolished, a presumption is being made for purposes of this Replacement Housing Plan
that those households were all very low income.
Replacement Housing Units to be Constructed
Site # of # of bedrooms total # of # of bedrooms # of bedrooms to
replacement per unit bedrooms to be occupied be occupied by
units by very low low income
income households
households
8* 2 16 16 0
2* 3 6 6 0
Total 10* 22 22 0
* Although 10 new units are considered replacement units, the new project includes 36 units, consisting of
18 two-bedroom and 18 three-bedroom units. This results in a surplus of 26 units totaling 68 bedrooms.
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