December 9, 2008

Redevelopment Agency Meeting: December 2, 2008

Agenda Item: 1-N

1-B

 

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 applied for an acquisition and predevelopment loan from City housing trust funds to finance the acquisition of the property located at 430-508 Pico Boulevard and perform predevelopment activities for a future affordable housing development on the site. The property is currently improved with fourteen (14) residential units, of which seven (7) are occupied, and one commercial unit which is vacant.

 

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.

 

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.

 

Housing Units to be Removed

 

# of existing units

Unit type

Total # of bedrooms

# of very low income bedrooms

 

2

0-bedroom

2

2

 

3

1-bedroom

3

3

 

1

2-bedroom

2

2

 

1

3-bedroom

3

3

Total

7

 

10

10

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 Analyst

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Andy Agle

Director, Housing and Economic Development

 

P. Lamont Ewell

City Manager