ITEM 6-F
Council Meeting: March 24, 1992
TO: The Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Approve Relocation Plan for Tenants at
505 Olympic Boulevard
INTRODUCTION
City staff requests City Council approval of the attached
Relocation Plan prepared for the three pertinent governmental
agencies, the Santa Monica Rent Control Board, the State
Department of Housing and Community Development and the City of
Santa Monica, in relation to the City's purchase of property
located at 505 Olympic Boulevard.
BACKGROUND
On November 26, 1991, City staff obtained appropriation authority
from City Council to purchase property located at 505 Olympic
Boulevard contingent upon the City's receipt of funds from the
Los Angeles County Transportation Commission (LACTC), and the
City's ability to fulfill the Rent Control Board's requirements
for replacement housing and relocation of existing tenants.
On November 27, 1991, LACTC approved the City's application for
funds to purchase this property adjacent to the existing Santa
Monica Municipal Bus Lines (SMMBL) for their future expansion,
and on December 12, 1991, the Santa Monica Rent Control Board
approved the City's application for a Category D removal permit
and relocation plan.
In addition, the State requires, per California Code of
Regulations, Section 6038, a public entity to submit a Relocation
Plan for review to the State Department of Housing and Community
Development and to obtain approval of the Relocation Plan by the
local legislative body, in this case, the City Council. The
Relocation Plan was submitted to the State on December 26, 1991;
comments were received on February 5, 1992. In general, the
Relocation Plan "met the basic intent of state and federal
requirements that displacees be treated fairly, and where
possible, to their satisfaction".
DISCUSSION
The subject property was once a 42-pad trailer park. At the time
negotiations were initiated to purchase the property, only 15
tenants remained in 13 trailers. The approach used to determine
comparable alternative housing was by conducting a one-on-one
needs and preference assessment and then setting out to satisfy
them. These remaining tenants have long been aware that the
trailer park was for sale and that eventually they would have to
move. Most of the tenants had already explored the housing
market and knew their options. A summary of these interviews is
provided in Exhibit B of the Relocation Plan. The majority of
tenants wished to stay in the vicinity because of the proximity
to hospitals, bus lines, and shopping areas.
The City surveyed alternative trailer parks. Information sheets
were compiled for the other two trailer parks in Santa Monica and
a listing of 22 parks in Oxnard where one couple indicated an
interest in moving to, was provided. Five tenants are moving to
the two trailer parks in Santa Monica. Another five tenants had
already inquired about the new housing development for senior
citizens on Third Street and indicate their interest in
relocating there. City staff negotiated with the HUD project
management to obtain priority preference for these applicants.
One woman requested the City's assistance in obtaining a priority
status in the Westminister Towers, which was done. Two tenants
preferred to move with friends and relatives into near-by homes,
and City staff facilitated their moves.
The relocation payment and benefits offered to tenants are based
on the type of replacement housing each tenant selected. The
amounts the City is obligated to pay were determined by the City
Attorney Office, after careful review of the law and codes
governing relocation efforts. All tenants will be offered
payment for moving expenses. All tenants leaving their trailers
will be paid fair market value for their trailers. Those tenants
choosing to relocate to new rental housing will be offered up to
$5,250 to redress any increase in tenant rental payments
(Government Code 7264 and Title 25, Section 6104). Those tenants
choosing to purchase housing will be offered up to $22,500
towards the purchase of their new dwelling less the fair market
value of their current dwelling (Government Code 7263, Title 25,
Sections 6102, 6104, 6112). Pages 8 and 9 in the Relocation Plan
describe the benefits provided each tenant.
In general, the tenants are satisfied with the benefits and
payments offered. The City Attorney advises that in most cases
the City is interpreting the law generously.
As mentioned before, many tenants have been anticipating the
purchase of the park and the need to relocate. After the City
showed interest in purchasing the property, some tenants who were
planning to move stayed until escrow opened in order to receive
relocation benefits. Therefore, numerous tenants moved out as
soon as opportunity allowed. Currently, nine tenants remain on
the property. Five tenants are waiting for construction to be
completed on the Third Street housing complex, projected to be
June or July this year.
BUDGETARY IMPACT
Approval of the Relocation Plan has no direct fiscal impact.
Funds to cover relocation expenses have been appropriated in
account number 41-750-657-20092-8900-99341.
RECOMMENDATION
Staff respectfully recommends that City Council approve the 505
Olympic Boulevard Tenant Relocation Plan.
Attachment: Relocation Plan
Prepared by: Barbara Stinchfield, Acting Manager
Community Development Department
Darrell George, Manager
Economic Development Division
Ruta Skirius, Senior Administrative Analyst
Economic Development Division