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REDEVELOPMENT AGENCY AGENDA ITEM NO. 13

Meeting Date: September 25, 2007

Subject/Title: Adopt a Resolution approving a Replacement Housing Plan for 200 Sunset Court

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Adopt a Resolution approving a Replacement Housing Plan for 200 Sunset Court.

PREVIOUS ACTION
On June 16, 2007, the Redevelopment Agency approved a purchase and sale agreement for real property identified as 200 Sunset Court, APN 016-010-016 (“Property”), pursuant to which the Agency would pursue adoption of a relocation plan and relocation activities for the tenants, and states the Agency’s intent to demolish all improvements to the Property due to the substandard conditions of the existing dwelling units.

The parties wish to close escrow on or before December 31, 2007, contingent on completing relocation activities by the Agency in accordance with the California Code of Regulations, Relocation Assistance Guidelines, which includes the preparation of a relocation plan.

BACKGROUND
This is one of two items on tonight’s agenda to proceed with the relocation of tenants at 200 Sunset Court per the terms and conditions of the Purchase Agreement between the owner and the Agency. The Agency must adopt both a replacement housing plan and a relocation impact statement. This staff report addresses the replacement housing plan.

The property located at 200 Sunset Court has six housing units and is adjacent to a vacant Agency-owned parcel located at 1909 Jane Street. 200 Sunset Court has deteriorated and defective buildings, an inadequate water supply from a well system delivered from a separate parcel, and excessive building code violations causing a physical and economic blight condition. Only three of the units are occupied.

This property is located within the North Brentwood Redevelopment Project Area and the Brentwood Boulevard Specific Plan boundaries and has a proposed land use of residential, with a range of 12 to 15 dwelling units per acre.

After the Seller’s conveyance of the Property to the Agency, the Agency intends to demolish all improvements on the Property due to the substandard conditions of the existing dwelling units, and assemble the Property with the adjacent Agency-owned parcel at 1909 Jane Street for a future housing development.

The California Community Redevelopment Law, Health and Safety Code Section 33413, requires that whenever dwelling units housing persons and families of very low, low or moderate income are destroyed or removed from the lower income housing market as part of a redevelopment project subject to a written agreement with the Agency, the Agency shall, within four years of destruction or removal, and within its territorial jurisdiction, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for sale or for rent, an equal number of replacement dwelling units with an equal or greater number of bedrooms as those units destroyed or removed.

Section 33413 also requires that 100% of the replacement dwelling units be affordable to persons and families of the same income levels as those households displaced from the destroyed or removed units. Section 33413 further requires that the affordability of the replacement housing units be maintained for the longest feasible time, but not less than the 55 years for rental units and 45 years for ownership units.

In accordance with Section 33413.5, a Replacement Housing Plan (“Plan”) must address all issues related to the replacement of the three affordable dwelling units to be destroyed on the Property. In accordance with Section 33413.5 of the Health and Safety Code, the Plan must include the following:

(1) The general location of the replacement housing;

(2) An adequate means of financing the replacement housing;

(3) A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained;

(4) The number of dwelling units planned for replacement; and

(5) The timetable for meeting the plan’s relocation and replacement housing objectives.

The Redevelopment Project Area Committee reviewed the Replacement Housing Plan at its meeting of August 28, 2007. As provided in the Committee’s bylaws, the Committee shall advise the Agency on “matters which deal with the planning and provision of residential facilities or replacement housing for those to be displaced by Agency activities”. The Committee made no recommended revisions to the Plan, and opined that the Plan was thorough, informative and met the requirements of Community Redevelopment Law.

The availability of the Plan for public review and comment was published in the Brentwood Press on August 31 and September 7, 2007; the comment period ended September 14, 2007. No public comments were received.

The Replacement Housing Plan prepared by staff meets the requirements of Community Redevelopment Law; staff recommends the Agency approve the Plan.

FISCAL IMPACT
There is no fiscal impact associated with the Agency’s approval of the Replacement Housing Plan for 200 Sunset Court.

Attachments:
Resolution
Replacement Housing Plan for 200 Sunset Court

RESOLUTION NO. RDA-

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD APPROVING A REPLACEMENT HOUSING PLAN FOR 200 SUNSET COURT

WHEREAS, the Redevelopment Agency of the City of Brentwood (“Agency”) is carrying out the duties and functions of the North Brentwood Redevelopment Plan; and

WHEREAS, the Agency has entered into a Purchase and Sale Agreement for 200 Sunset Court (“Property”), dated June 12, 2007, pursuant to which the Agency, after acceptance of the Property and close of escrow, intends to demolish all improvements to the Property due to the substandard conditions of the existing dwelling units, and assemble the Property with the adjacent Agency-owned parcel at 1909 Jane Street for a future housing development; and

WHEREAS, Section 33413 of the Health and Safety Code (“Community Redevelopment Law”) requires that whenever dwelling units housing persons and families of very low, low or moderate income are destroyed or removed from the lower income housing market as part of a redevelopment project subject to a written agreement with the Agency, the Agency shall, within four (4) years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for sale or for rent, an equal number of replacement dwelling units with an equal or greater number of bedrooms as those units destroyed or removed, within the Agency’s territorial jurisdiction; and

WHEREAS, Section 33413 also requires that 100% of the replacement dwelling units be affordable to persons and families of the same income levels as those households displaced from the destroyed or removed units; and

WHEREAS, Section 33413.5 requires the Agency to adopt a Replacement Housing Plan that addresses all issues related to the replacement of the three affordable dwelling units to be destroyed on the Property; and

WHEREAS, the Agency has prepared a Replacement Housing Plan for 200 Sunset Court wherein the most probable locations for providing replacement housing and the principal sources of financing the replacement housing obligation have been identified; and

WHEREAS, the number of dwelling units planned for destruction and replacement, and the timetable for meeting the Plan’s relocation and replacement housing objectives have also been identified in the Replacement Housing Plan.

NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Brentwood hereby approves the attached Replacement Housing Plan for 200 Sunset Court.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 25th day of September 2007, by the following vote:

FINAL
REPLACEMENT HOUSING PLAN

200 SUNSET COURT

Prepared by the
BRENTWOOD REDEVELOPMENT AGENCY

Adopted
September XX, 2007

I. INTRODUCTION

A. Purpose and Scope of Replacement Housing Plan

The Brentwood Redevelopment Agency (“Agency”) entered into a Purchase and Sale Agreement with the owners of 200 Sunset Court (“Property”) located in the North Brentwood Project Area on June 12, 2007. The owners, William and Marsha Nielsen (“Sellers”), offered to sell 200 Sunset Court to the Agency in October 2006. Following a few months of negotiations, a mutually acceptable purchase amount was agreed upon for the Property, and the Purchase and Sale Agreement was approved by the Agency in June 2007, pursuant to which the Agency would pursue the adoption of a relocation plan and conduct relocation activities prior to close of escrow. After the Seller’s conveyance of the Property to the Agency, the Agency desires to demolish all existing improvements to the Site due to the substandard conditions of the existing dwelling units, and assemble the Property with the adjacent Agency-owned parcel at 140 Jane Street for a future housing development. A map of the Property is included herein as Exhibit A.

The Property includes 6 substandard and deteriorating dwelling units; however, only 3 are “housing persons and families of low or moderate income” . The 3 occupied dwelling units have a total bedroom count of 7. Of these dwelling units, none are occupied with above-moderate income households; therefore, all 3 units are required to be replaced. Two units are occupied by very-low income households, and one unit is occupied by a moderate income household.

The California Community Redevelopment Law, Health and Safety Code Section 33413, requires that whenever dwelling units housing persons and families of very low, low or moderate income are destroyed or removed from the lower income housing market as part of a redevelopment project subject to a written agreement with the Agency, the Agency shall, within four years of destruction or removal, and within its territorial jurisdiction, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for sale or for rent, an equal number of replacement dwelling units with an equal or greater number of bedrooms as those units destroyed or removed.

Section 33413 also requires that 100% of the replacement dwelling units be affordable to persons and families of the same income levels as those households displaced from the destroyed or removed units. Section 33413 further requires that the affordability of the replacement housing units be maintained for the longest feasible time, but not less than the 55 years for rental units and 45 years for ownership units.

Based on the criteria of Section 33413 and a survey of the residents residing on the Property, 3 units with a total bedroom count of 7 must be replaced. Table 1 below shows the actual replacement requirements by income level and bedroom count:

TABLE 1
Replacement Housing Requirements

Household Income,
By Bedroom Count Actual Number of
Units to be Removed Number of Replacement
Units Restricted by
Income Level (100%) Minimum Number of Bedrooms to be Replaced
Very Low – 2 BR 1 1 2
Very Low - 3 BR 1 1 3
Moderate – 2 BR 1 1 2
TOTAL 3 3 7

B. Elements of Replacement Housing Plan

This Replacement Housing Plan (“Plan”) addresses all issues attendant to the development of 3 affordable dwelling units to replace the units to be destroyed on the Property. In accordance with Section 33413.5 of the Health and Safety Code, the Plan must include the following:

(6) The general location of housing to be rehabilitated, developed or constructed pursuant to Section 33413 of the Redevelopment Law;

(7) An adequate means of financing such rehabilitation, development or construction;

(8) A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained;

(9) The number of dwelling units housing persons and families of low to moderate income planned for construction or rehabilitation; and

(10) The timetable for meeting the plan’s relocation, rehabilitation and replacement housing objectives.

a. REPLACEMENT HOUSING PLAN

A. General Location of Replacement Housing

All replacement housing to be provided pursuant to this Plan shall be located within the City of Brentwood. The most probable locations for providing 3 replacement housing units are within the Brentwood Boulevard Specific Plan Area and the Villa Amador affordable housing project. Specific replacement housing locations will be determined based upon the particular means and method of providing such replacement housing as outlined below.

The Agency is currently participating in the preparation of the Brentwood Boulevard Specific Plan, where approximately 81 acres is planned for Neighborhood Boulevard Density Residential, a density ranging from 8 to 15 dwelling units per acre. These zoned areas will allow for mid-range of 968 dwelling units with a portion affordable to very low, low and moderate-income households. The Brentwood Boulevard Specific Plan boundaries are within the North Brentwood Redevelopment Project Area, where the Property is located, and can provide the majority of the required replacement housing units.

In addition to the Neighborhood Boulevard Density Residential-zoned areas within the Brentwood Boulevard Specific Plan Area, seven acres will be zoned for very-high density residential on the Sciortino Ranch property which allow for 20 to 30 dwelling units per acre, or a maximum of 210 units, with a portion affordable to very low, low and moderate-income households.

The Villa Amador apartment complex, located on the corner of Shady Willow and Sand Creek Roads, was financed in part with Agency Housing Set-Aside funds and the City’s Housing Trust Fund, and all 94 units are deed restricted for very-low income households for fifty-five years. Villa Amador is currently under construction, with an anticipated opening in Spring or Summer 2008. Villa Amador will provide the following: 7 one-bedroom units, 19 two-bedroom units, 56 three-bedroom units, and 12 four-bedroom units (2 units are for on-site property managers).

The combination of the 1,272 potential dwelling units from the above-referenced possible locations for replacement housing will be more than sufficient to replace the three units planned for demolition at 200 Sunset Court.

B. Methods of Providing the Replacement Housing

The following methods may be employed by the Agency to provide the replacement housing in the locations identified above or other locations within the City as opportunities present themselves in the future.

(1) New Construction

(a) The Agency may assemble, clear and convey land, provide on-site and off-site improvements and/or provide financial or other assistance to private and non-profit housing developers for the construction of new housing units. Such newly constructed units as are designated as replacement housing hereunder shall be offered for sale or rental by the developer to persons and families of lower income, subject to restrictions on resale and rental as set forth in Section II.C below.

(b) The Agency may directly contract for the construction of new housing. Upon completion, such units shall be offered for sale by the Agency for occupancy by persons and families of lower income, subject to restrictions on resale and rental as set forth in Section II.C below.

(2) Acquisition and Rehabilitation of Existing Substandard Housing

The Agency may acquire existing dwelling units which are vacant or have been determined to be substandard by the building department of the City. Upon acquisition, the Agency could contract directly for the rehabilitation of such units, which shall, upon completion thereof, be offered for sale or rent by the Agency for occupancy by persons and families of lower income, subject to restrictions on resale and rental as set forth in Section II.C below.

(3) Rehabilitation of Privately Owned Homes

The Agency may provide financial and other assistance for the rehabilitation of privately owned housing units conditioned upon their availability as replacement housing hereunder and subject to restrictions on resale and rental as set forth in Section II.C below.

(4) Conversion of Existing “For Sale” Market Rate Housing

The Agency may assist in the purchase or acquire existing market rate housing units which are in good condition and are listed as “for sale” on the open market. Such units shall be offered for occupancy by persons and families of lower income at an affordable housing cost, subject to restrictions on resale as set forth in Section II.C below.

(5) Conversion of Existing “For Rent” Market Rate Housing

The Agency may assist in the restriction of market rate rental housing which are in good condition. Such units shall be offered for occupancy by persons and families of lower income at an affordable rental rate, subject to restrictions on rentals as set forth in Section II.C below.

C. Restrictions on Resale/Rental

In accordance with Redevelopment Law, for those units required to be affordable, all deeds, leases, contracts or agreements for the sale, lease, construction or rehabilitation of such replacement housing shall set forth the obligation contained herein as a recorded covenant running with the land to remain in effect for the longest feasible time but for not less than 55 years for rental units and 45 years for homeownership units.

D. Means of Financing Replacement Housing

The principal source of financing replacement housing units will be the Agency’s housing set-aside funds generated by the redevelopment projects within the 1,318-acre Merged Redevelopment Project Area. Future developers of housing projects within the Merged Redevelopment Project Areas will have access to the tax increment housing set-aside generated by their projects for use in providing replacement housing needs identified by this Plan.
Agency housing set-aside funds, in conjunction with funds from other sources and public agencies, including the City’s Housing Trust Fund, can be used in the construction, acquisition, rehabilitation and conversion activities. Additional replacement housing financing may come from State or Federal sources.

E. Article XXXIV Finding

Article XXXIV of the California Constitution provides that no low rent housing project shall be developed, constructed or acquired in any manner by any state public body until approved by a majority of the qualified voters in the affected city, town or country. Sections 37001 and 37001.5 of the Health and Safety Code set forth exclusions from the application of Article XXXIV, including, among others, projects where:

(1) The development is privately-owned housing, receiving no ad valorem property tax exemption not fully reimbursed to all taxing entities and not more than 49% of the dwellings, apartments or other living accommodations of such development may be occupied by persons of low income.

(2) The development is intended for owner-occupancy, which may include cooperative or condominium ownership, rather than rental-occupancy.

(3) The development consists of newly constructed, privately-owned, one-to-four family dwellings not located on adjoining sites.

(4) The state public body provides assistance to a low-rent project and monitors construction or rehabilitation of such project and compliance with conditions of such assistance to the extent of:

a. Carrying out governmental duties.
b. Performing conventional activities of a lender.
c. Imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance.
d. The development consists of the rehabilitation, reconstruction, improvement or addition to, or replacement of, dwelling units of a previously existing low-rent housing project, or a project previously or currently occupied by lower income households.

The provision of replacement housing pursuant to this Plan, as described above in Sections II. B, C and D, does not require the approval of the voters pursuant to Article XXXIV of the California Constitution because the Agency will provide assistance and monitor construction and compliance with conditions of such assistance to the extent of carrying out its routine governmental functions, performing activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance, as described in Exclusion (4) above.

F. Number of Replacement Dwelling Units for Very Low, Low and Moderate Income Persons Planned for Construction or Rehabilitation

Table 1 – Replacement Housing Requirements, above, indicates that 3 replacement dwelling units with 7 bedrooms are required to be provided as a result of the removal of substandard housing on the Property, and therefore 3 dwelling units with 7 bedrooms will either be constructed, acquired, rehabilitated or converted. Further, 2 units will be available for very-low income households and 1 unit will be available for moderate income household or lower.

G. Replacement Housing Timetable

It is anticipated that the actual removal of dwelling units from the Property will not begin until after conveyance of the Property from the Sellers to the Agency on December 31, 2007. Depending on winter conditions, demolition of the units may not begin until Spring 2008. The Agency will move forward with projects which will provide the replacement housing for the units removed from the Property in an expeditious fashion, but in no case will the replacement housing be made available later than four (4) years from the date the units are removed.

It is anticipated that construction of units in the Brentwood Boulevard Specific Plan Area will commence after the Specific Plan is approved in Spring 2008 and when the Bay Area’s new housing market returns. Construction of Villa Amador began in Winter 2007 and is expected to be completed by Spring or Summer 2008.

H. Relocation Timetable

The Agency has prepared a Relocation Impact Statement and Last Resort Housing Plan for the displacement of persons from the Property in accordance with provisions of Health and Safety Code Sections 33411 and 33411.1; the California Relocation Assistance Act, Government Code Section 7260 et seq., and State Relocation Guidelines, Title 25, California Code of Regulations Section 6000 et seq. This Relocation Statement was approved by the City Council and Redevelopment Agency of the City of Brentwood on September XX, 2007.

The actual relocation of occupants is scheduled to occur prior to close of escrow for the Property on December 31, 2007. According to the Relocation Statement, sufficient housing units currently exist to accommodate these occupants, and the Agency will not rely on the replacement housing required under this Plan to satisfy the comparable relocation requirements needed for the displacement of the existing occupants.
***

 

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