SR-120908-1B~® City Council and
~~tY of Redevelopment Agency Report
Santa Monica' -
Redevelopment Agency Meeting:~e~.^.*b~... _, _ ~8-
Agenda Item:°=~- _ ~
To: Chairperson and Redevelopment Agency
From: Andy Agle, Director of Housing and Economic Development
Subject: Replacement. Housing Plan for 430-508 Pico Boulevard
Recommended Action
This report requests that the Redevelopment Agency ("Agency') approve the proposed
Resolution adopting the Replacement Housing Plan for 430-508 Pico Boulevard.
Executive Summary
Community Corporation of Santa Monica (CCSM) has
predevelopment loan from City housing trust funds to
property located at 430-508 Pico Boulevard and perform
future affordable housing development on the site. The
with fourteen (14) residential units, of which seven
commercial unit which is vacant.
applied for an acquisition and
finance the acquisition of the
predevelopment activities for a
property is currently improved
(7) are .occupied, and one
Under. California Redevelopment Law, Section 33413.5 (Health and Safety Code,
Section 33000 et seq.), the Agency must adopt a replacement housing plan when
existing units, occupied by low and moderate income households, will be removed as a
result of an Agency-assisted project. A replacement housing plan describes the
measures the Agency will undertake to provide comparable replacement housing within
four years following removal of the original units. The proposed Replacement Housing
Plan for the 430-508 Pico. Boulevard. property has been made available to the public for
review as required by Community Redevelopment Law.
Background
The Redevelopment Agency has previously approved replacement housing plans for
two Agency-assisted affordable housing developments at 2411 Centinela Avenue and
1943 High Place. in 2005. Since that time, the replacement units for the 2411 Centinela
Avenue project have been completed.
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Discussion
In accordance with California Redevelopment Law, Section 33143 (a) the Agency will
meet its replacement housing obligation 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 430-508 Pico Boulevard is anticipated to commence in
November 2010. The new construction project is anticipated to be completed in May
2012, well within the requirement to replace the removed units within four years of
removal of the existing units.
The replacement units are to be affordable to households at very low, low or moderate
income levels, which levels shall be commensurate with the current households
occupying the units to be removed. Because the income levels of the current
households are not known at this time, the assumption has been made that all
households in the units to be removed are of the lowest income category, very low
income.
The table below summarizes the seven occupied units to be removed. It should be
noted that the zero-bedroom units are counted as one-bedroom units, as required by
the Health and Safety Code, for the purpose of determining the total number of
bedrooms to be removed.
Housina Units to be Removed
# of existing
units
Unit type Total # of
bedrooms # of very low
' income'bedroorns,
2 0-bedroom 2 2
3 1-bedroom 3 3
1 2-bedroom 2 2
1 3-bedroom 3 3
Total 7 10 10
2
California Redevelopment Law, Section 33413(f), allows the Agency to replace housing
units with a fewer number than removed housing units if the total number of bedrooms
in the replacement housing units equals or exceeds the number of bedrooms in the
removed units. Accordingly, CCSM will be required by the Agency to replace the 7 units
containing 10 bedrooms with at least 4 units containing 10 bedrooms. It is important to
note that the future development is anticipated to provide more, than the 4 replacement
units. The zoning for the site allows approximately 32 affordable units.
Financial Impacts & Budget Actions
The recommendation does not have any budgetary or financial impacts.
Prepared by: Melissa Lindley, Senior Administrative Ahalyst
Forwarded to Council:
Andy Agle v 1,,,/ n
Director, Housing and Economic ' y M
Development
Attachments:
Attachment A; Replacement Housing Plan for 430-508 Pico Boulevard
Attachment B: Agency Resolution Approving the Replacement Housing Plan for 430-
508 Pico Boulevard
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REPLACEMENT HOUSING PLAN
For the
430-508 Pico Boulevard 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 the acquisition and predevelopment costs associated with 430-508 Pico Boulevard.
CCSM is currently exploring the options for development of the site, which would entail
the demolition of 14 existing rental housing units, 7 of which are not offered for rent to
low or moderate income households due to the current owner's use of these units for
storage purposes. New construction on the site is expected to include up to a
maximum of 32 affordable housing units but at this time the number and type of units is
not known."
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 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. 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.
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. Site location
2. Development of the replacement housing
3. Financing the replacement housing
4. Schedule for the construction of the replacement housing
5. Period for which the replacement units will remain affordable
6. Article 34 Compliance
7. Availability of the Plan for public review
DEFINITIONS
Very-Low-Income Household
Persons and families whose gross household income does not exceed the qualifying
limits for very low income families as established and amended from time to time
pursuant to Section 8 of the United States Housing Act of 1937. Very Low income
generally is 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 the qualifying
limits for lower income families as established and amended from time to time pursuant
to Section 8 of the United States Housing Act of 1937. The low income limit generally is
80 percent of the area mediah income adjusted for family size, as more specifically
defined in Section 50079.5 of the California Health and Safety Code:
UNITS TO BE REMOVED
If the site is developed with affordable housing, six multi-unit housing structures
containing 5zero-bedroom (studio), 6one-bedroom, 2two-bedroom and 1 three-
bedroom rental units would be demolished. The 7 units that are currently occupied
contain a total of 10 bedrooms. Because the remaining 7 units do not currently house or
are not available for occupancy by low and moderate income households, the
Community Redevelopment Law does not require their replacement.
SITE LOCATION
The site is located at 430-508 Pico Boulevard in the City of Santa Monica. Exhibit 1
provides a map of the project location.
REPLACEMENT HOUSING UNITS
This Replacement Housing Plan describes the measures that the Agency will take to
ensure the production of 10 replacement bedrooms within four years of the removal of
those bedrooms from the low and moderate income housing market. One hundred
percent (100%) of the replacement bedrooms 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 10 original bedrooms.
2
If the existing units on the site are demolished it is expected that the site will be
developed with affordable housing consisting of a sufficient number of units. to replace
the 10 bedrooms demolished. Any development on the site will be required to include
affordable housing restricted in accordance with Health and Safety Code Section 33413
in order to meet the obligation to provide replacement housing, including units
affordable at the income levels of the households displaced. Construction of housing
on the site will occur within four years of the demolition of any existing units.
The replacement housing units will provide affordable units to meet the replacement
obligations triggered by the demolition activity, if any.
FUNDING SOURCES
The financing for the replacement housing units, if required, may include
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 will
require 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 within four years of
commencement of demolition.
The anticipated project timeline includes demolition of existing structures and
commencement of new construction in 2011 and construction completion in 2012.
LOW/MODERATE INCOME ASSURANCE
The Agency will require the recordation of a covenant against any replacement housing
units 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
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, 1901 Main Street,
Suite.D, Santa Monica, CA 90405. 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.
EXHIBIT 1
Map
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Reference Resolution
No. 513 (RAS).