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HomeMy WebLinkAboutMINUTES - 07261994 - H.5 915 Contra TO: REDEVELOPMENT AGENCY •i� Costa FROM: Phil Batchelor County Executive Director it „J DATE: July 26, 1994 SUBJECT: Replacement Housing Plan for Alves Lane Project SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS HOLD public hearing and CONSIDER ADOPTION of Replacement Housing Plan for the Alves Lane Project in Bay Point. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS Resources for Community Development (RCD) , a non-profit housing developer, will be constructing 14 rental multi-family dwelling units. The site where the new construction occur, at Alves Lane and Water Street, previously had 12 dilapidated units on the property which were demolished in October 1993. Of these 12 units, 8 were occupied and 4 were vacant. This housing plan addresses the replacement of these units as well as additional units which are to be built at this site. In order to maintain the allocation of tax credits for this project, RCD must begin construction by August 31, 1994 . CONTINUED ON ATTACHMENT: YES SIGNATURE : RECOMMENDATION OF EXECUTIVE DIRECTOR NDATI OF AGENCY COMMITTEE APPROVE OTHER S I GNATURE (S) ACTION OF AGENCY ON July 26 , 1994 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT I ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Jim Kennedy 646-4076 ATTESTED July 26 , .1994 cc: Community 'Development PHIL BATCHELOR, County Administrator AGENCY SECRETARY County Counsel Redevelopment Agency Goldfarb & Lipman RCD a:\ed2\a1vesrhp.bo BY ` , DEPUTY ay • f. � i CONTRA COSTA COUNTY REDEVELOPMENT AGENCY REPLACEMENT HOUSING PLAN FOR 112 ALVES LANE ' r ` t CONTRA COSTA COUNTY REDEVELOPMENT AGENCY REPLACEMENT HOUSING PLAN FOR THE AREA REDEVELOPMENT PROJECT By Ordinance No. 87-102 dated December 29, 1987, the County of Contra Costa adopted the Redevelopment Plan (the "Plan") for the Bay Point Redevelopment Project Area (the "Project Area"). The Plan provides for the implementation of a program of redevelopment (the "Project") within the Project Area. The Agency has determined that eight (8) dwelling units housing persons and families of low or moderate income will be removed from the Project Area in implementation of the Project. Eight (8) of these removed units housed households with incomes at or below 50% of median income for Contra Costa County ("Very Low Income Households"). Pursuant to Health and Safety Code Section 33413(a), the Agency must make available an equal number of replacement dwelling units at affordable housing cost within the Project Area or within the territorial jurisdiction of the Agency within four years of removal of dwelling units housing persons and families-of low or moderate income. Health and Safety Code Section 33413(a) requires seventy-five percent (75%) of the replacement dwelling units to be at affordable housing cost in the same income level of Very Low Income Households, Lower Income Households, and.Moderate Income Households, as the persons displaced from these destroyed or removed units. Pursuant to this Section 33413(a), at least six (6) of the replacement dwelling units are required to be made available at affordable housing cost to Very Low Income Households, and two (2) to Moderate Income Households (the "Income Targeting Requirements"). This Replacement Housing Plan has been prepared in fulfillment of the specific requirements of Health and Safety Code Section 33413.5, and outlines the manner in which the Agency proposes to meet its statutory replacement housing obligations with respect to the above-identified eight (8) dwelling units. 1. Location of Replacement Housing Units All of the replacement dwellings"will be constructed in the Project Area as part of the 14 unit rental housing project ("Alves Lane Project") to be developed along Alves Lane and.Water Street, by 112 Alves Lane Partners, A California Limited Partnership (the "Partnership"). The maximum density permitted by the General Plan for the project is six (6) units. However, the developer was able to take advantage of the County's Density Bonus Program for Affordable Housing, which allows for three additional units to be built for each unit.that is built and targeted for Very Low Income Households. As"two (2) units will be built and specifically targeted for very low income households, a bonus of six (6) units will be constructed. Therefore, fourteen (14) units will be built: eight (8) through the Density Bonus Program and six (6) as allowed through the General Plan. The Partnership was selected by the Agency in accordance with the provisions of the Plan and the Agency's adopted Rules for Owner Participation and Business Tenant Preference. The Partnership and the Agency have entered into a Disposition and Development Agreement (the "DDA") which specifies the standards, procedures and obligations of the parties for the construction of the Alves Lane Project, including the requirement that forty three percent (43%) of the dwelling units, or six (6) units, be made available to Very Low Income Households for the term of the land use controls of the Plan in partial fulfillment of the Agency's replacement housing obligation. 2. Number of Affordable Housing Units to be Constructed Forty three percent (43%) of the fourteen (14) residential units to be constructed at the Alves Lane Project, or six (6) units, are required to be available at affordable housing cost to Very Low Income Households. (These units are hereinafter referred to as the "Alves Lane Project'.) The Agency will meet its Income Targeting Requirements through the construction of these six (6) units. The remaining eight (8) units shall be occupied by moderate income households. Pursuant to Health and Safety Code Section 33413(c), the Agency will require, by recorded covenants enforceable against the Partnership and their successors, that the Alves Lane units remain available at affordable housing cost for a period of not less than the duration of the land use controls of the Plan. 3. Financina The Partnership has submitted for Agency approval a financing plan detailing the specific sources of private and public financing that will be used to develop the Alves Lane Project. Submission and approval of such financing plan is a pre-condition under the DDA to commencement of construction and removal of existing dwelling units from the Project Area. Alves Lane will be financed through a combination of private debt and equity and public resources. The private sources of debt and equity obtained by the Partnership are anticipated to be sufficient to finance development of the affordable rental units in the Alves Lane Project. As documented in the Promissory Note of the DDA between the Agency and the Partnership, the Agency will make available five hundred twenty V4 thousand dollars ($520,000) to help finance land acquisition and construction costs for the Alves Lane Project. Two hundred seventy one thousand nine hundred thirty eight dollars ($271,938) will come from the Agency's Low and Moderate Income Housing Fund, pursuant to Health and Safety Code Sections 33334.2 and 33334.3, with the remaining two hundred forty eight thousand sixty two dollars ($248,062) coming from the Agency's non-housing funds. In addition, the County is providing seventy thousand ollars ($70,000) in Community .Development Block Grant funds, three hundred ninety thousand ($390,000) in HOME Program funds, and a grant of fifty thousand dollars ($50,000). One million one hundred five thousand dollars ($1,105,000) in tax credit proceeds has been allocated to this project. This public support will finance the difference between the development cost of the Alves Lane Project and the portion of such development cost that can be financed from private debt and equity sources. The Agency has therefore determined that these combined public and private funds will be sufficient to finance the Alves Lane Project. The constructed Alves Lane Project requires no additional financing resources. 4. Article XXXIV Approval Development of the Alves Lane Project does not require approval of the voters pursuant to Article XXXIV of the California Constitution. This finding is based on the following analysis. Article XXXIV requires approval of the electorate only when a state public body develops, constructs or acquires a low-rent housing project. In the first instance, the Alves Lane Project will not constitute an affordable housing rp o*ect requiring an Article XXXIV election. The Legislature has enacted the Public Housing Implementation Law(Health and Safety Code Section 37000 et sea.) to interpret and implement Article XXXIV. Health and Safety Code Section 37001(a)(1) states that the term "affordable housing project" in Article XXXIV does not apply to any development that is privately-owned housing, does not receive any unreimbursed ad valorem property tax exemption, and in which not more than 49% of the dwelling units in the development are occupied by persons of low income. As described above, the Alves Lane Project will be developed and owned by a private non-profit developer.- It is anticipated that any tax exemption received under the Revenue and Taxation Code Section 214(g) will be reimbursed by the State pursuant to Revenue and Taxation Code Section 214 (g). Further, as previously.described, 43% of the dwelling units in the Alves Lane Project are required by the Agency to be available to Very Low Income Households. a - 140 Therefore this development is not currently subject to the provisions of Article XXXIV, as the Agency is not "developing, constructing, or acquiring" an affordable housing project. 5. Timetable As documented in Article 4 of the Loan Agreement by and between Contra Costa County Redevelopment Agency and Resources for Community Development, March 31, 1994 was the original date construction of the Alves Lane Project was to commence. A maximum of a 13 month construction schedule was allowed. The construction has been amended to begin by August 31, 1994. Resources for Community Development is still held to the 13 month construction schedule. Thus, fourteen (14) units will be developed within less than four years of the date the existing dwelling units are removed from the Project Area. Given the timetable for development of the Alves Lane Project, the Agency has a reasonable means to ensure that the requisite number of replacement dwelling units will be available to meet the Agency's timing obligations for replacement of units removed from the Project Area. JKLD:Ih sra13/alveshsg.pin NOTICE OF PREPARATION AND CONSIDERATION OF A REPLACEMENT HOUSING PLAN FOR THE BAY POINT REDEVELOPMENT PROJECT AREA NOTICE IS HEREBY GIVEN that the Contra Costa County Redevelopment Agency (the "Agency") has prepared a draft Replacement Housing Plan (the "Replacement Housing Plan")for 112 Alves Lane within the Bay Point Redevelopment Project Area (the "Project Area") in accordance with the requirements of Health and Safety Code Section 33413.5. The Replacement Housing Plan sets forth the method by which the Agency proposes to meet its legal obligation to replace any dwelling units housing persons and families of low and moderate income that may be removed from the community's housing stock as a result of the Agency's redevelopment of the Project Area. The Agency will consider the Replacement Housing Plan for adoption at its meeting of July 26 at 11:00 a.m. in the County Board of Supervisors Chambers, Room 107, located in the McBrien Administration Building, 651 Pine Street, Martinez CA 94553. DATED: July 17, 1994 CONTRA COSTA COUNTY REDEVEL PMENT AGENCY Publish: Antioch Ledger Harvey . Bragdon Post Dispatch Directo f Community Development July 17, 1994 L PROOF OF PUBLICATION 215.5 C.C.P. NOTICE OF PREPARATION AND CONSIDERATION OF A REPLACEMENT HOUS- STATE OF CALIFORNIA ING PLAN FOR THE BAY County Of Contra Costa POINT REDEVELOPMENT PROJECT AREA I am a citizen of the United States and a resident of the NOTICE IS HEREBY GIVEN County aforesaid;I am over the age of eighteen years,and that the Contra Costa County nota art to or interested in the above-entitled matter. Redevelopment Agency (the party "Agency') has prepared a draft Replacement Housing I am the Principal Legal Clerk of the Ledger Dispatch and Plan (the "Replacement Brentwood News. Newspapers of general circulation, Housing Plan")for 112 Alves printed and published at 1650 Cavallo Road in the City of Lane within the Bay Point Re- Antioch, County of Contra Costa, 94509. development Project Area (the"Project Area")in accor- dance with the requirementsAnd which newspapers have been adjudged newspapers of Health and Safety Code of general circulation by the Superior Court of the County Section 33413.5 of Contra Costa, State of California, under the date of The Replacement Housing March 26, 1870. Case Number 746370. Plan sets forth the method by which the Agency proposed The notice,of which the annexed is a printed copy(set in to meet its legal obligation to replace any dwelling units type not smaller than nonpareil), has been published in housing persons and families each regular and entire issue of said newspapers and not of low and moderate income in any s lemen hereof on the following dates,to-wit: that may be removed from the community's housing ./ stock as a result of the Agen- cy's redevelopment of the all in a year 1994. Project Area. The Agency will consider the I certif Replacement Housing Plan y (or declare) under penalty of perjury that the for Adoption at its meeting of foregoing is true and correct. July 26 at 11:00 a.m. in the County Board of Supervisors Executed at Antioch a'forni Chambers,Room 107,locat- ed in the McBrien Adminis- On this/-�, day of �. ... .. 994. tration Building, 651 Pine Street, Martinez,CA 94553 DATED:July 17, 1994 v._ .� CONTRA COSTA COUNTY ,�.��i ._.... .. .....1/...... REDEVELOPMENT AGENCY Signa re / /s/Harvey E. Bragdon Director of Community Ledger Dispatch and Brentwood News Development P.O. Box 2299 Legal LD803011 Antioch, CA 94531-2299 Publish:July 17, 1994 (510) 757-2525 o � < cn rte— � 7. CD — O M W —� W W RECEIVED SEP 21 1994 CLERK BOARD OF SUPERVISORS CONTRA COSTA CO.