ADOPT RESOLUTION APPROVING A REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD

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1 REPORT TO REDEVELOPMENT AGENCY CHAIR AND AGENCY BOARD AGENDA ITEM NO. 5.a TO THE HONORABLE REDEVELOPMENT AGENCY CHAIR AND AGENCY BOARD: DATE: January 11, 2011 SUBJECT: ADOPT RESOLUTION APPROVING A REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD Report in Brief In 2008, the Redevelopment Agency purchased an approximately 2.3 acre site consisting of properties located in downtown Concord bordered by Galindo Street, Clayton Road and Concord Boulevard as part of implementing the Agency s Redevelopment Plan. In carrying out the Agency s Plan, two very low income dwelling units located at 1855 and 1875 Clayton Road were removed in July California Redevelopment Law requires agencies to adopt a Replacement Housing Plan when affordable housing units are removed. Replacement Housing Plans address specific issues related to replacement of those dwelling units within a four year period. Staff prepared a Replacement Housing Plan as required by California Redevelopment Law Section (Attachment 2). Staff recommends the Agency adopt Resolution (Attachment 1) adopting the Replacement Housing Plan for 1855 and 1875 Clayton Road. Background In December 2008, the Agency entered into a Purchase and Sale Agreement with Meadow Creek Group, LLC. for the purchase of approximately 2.32 acres of real property located within the Redevelopment Project Area distributed over six (6) separate parcels commonly known as 1717 Galindo Street, 1747 Galindo Street, 1795 Galindo Street, 1855 Clayton Road, 1875 Clayton Road and 1899 Clayton Road. These properties were identified in the Agency's Strategic Plan as forming a key catalyst site for future development. The site is located between Renaissance Square and Park Central Apartments, two major downtown housing developments. The properties had two single family homes, a used car showroom and one office building located on the site. The two single family homes had two bedrooms and one bath each and were rented to two very low income tenants. The Redevelopment Agency and tenants entered into agreements to terminate leases and vacate the properties. In July 2010, the Agency removed all the improvements on the property, including the two vacant homes.

2 ADOPT RESOLUTION APPROVING A REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD January 11, 2011 Page 2 Discussion California Redevelopment Law (Section 33413) requires that whenever dwelling units housing persons or families of very low, low or moderate income are destroyed or removed as part of a redevelopment project they must be replaced within four years. Their replacement can take the form of rehabilitating existing units or constructing new units. The replacement units must have an equal or greater number of bedrooms as the units that were removed. The law 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 units. The two vacant homes which were removed from the Agency property were rented to very low income households. The two vacant homes had significant issues which made them unsafe and unhealthy. Specifically, the home located at 1855 Clayton Road had significant differed maintenance and required a new bathroom, and the home at 1875 Clayton Road was vandalized and had suffered fire damage. California Redevelopment Law (Section ) requires the Agency to adopt as soon as practical following removal of unsafe or unhealthy dwelling units, a Replacement Housing Plan. Agency staff has prepared the Replacement Housing Plan (Attachment 2). Some of the key elements of the Replacement Housing Plan are listed below: - All replacement housing shall be located within the City of Concord. - The principal source of funding for the replacement housing will be the Agency s Low and Moderate Income Housing Fund. - Within the next four years the Agency shall designate funds from its Low and Moderate Fund to provide for at least two, newly-constructed or rehabilitated units to be available to very low income households for the purpose of meeting its replacement housing obligations under this Plan. A draft of the Replacement Housing Plan was made available for public review and comment prior to the Agency taking action. Fiscal Impact There is no immediate fiscal impact with adopting this Plan. The future cost of constructing the two replacement housing units will be funded by the Agency s Affordable Housing Funds. There is no impact on the City s general fund. Public Contact The Agenda was properly posted and noticed.

3 ADOPT RESOLUTION APPROVING A REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD January 11, 2011 Page 3 Recommendation for Action Staff recommends the Agency adopt Resolution No (Attachment 1) adopting a Replacement Housing Plan for 1855 and 1875 Clayton Road as prepared per California Redevelopment Law Section Daniel E. Keen Executive Director Dan.Keen@ci.concord.ca.us Prepared by: John Montagh Redevelopment and Housing Manager John.Montagh@ci.concord.ca.us Attachment 1: Resolution No Attachment 2: Replacement Housing Plan for 1855 and 1875 Clayton Road

4 Attachment REDEVELOPMENT AGENCY OF THE CITY OF CONCORD RESOLUTION NO A RESOLUTION ADOPTING A REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD, CONCORD, CALIFORNIA WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section et seq.), the Redevelopment Agency of the City of Concord (the Agency ) is carrying out the Redevelopment Plan (the Redevelopment Plan ) for the Central Concord Redevelopment Project (the Project ); and WHEREAS, the Agency entered into a Purchase and Sale Agreement with Meadow Creek Group LCC for purposes of implementing the Agency s Strategic Plan for the Project which resulted in the removal of two very low income dwelling units located at 1855 and 1875 Clayton Road in the City of Concord, California ( Acquired Units ); and WHEREAS, Section of the 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 low and moderate 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 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, due to the unsafe and unhealthy conditions of the Acquired Units, they were removed as soon as possible; and WHEREAS, Section requires the Agency to adopt as soon as practical following removal of unsafe or unhealthy dwelling units, a Replacement Housing Plan that addresses specific issues related to the replacement of those dwelling units housing low and moderate income persons Res. No

5 Attachment and families to be destroyed or removed as a result of the Project; and WHEREAS, the Agency has prepared a Replacement Housing Plan in accordance with Section of the Community Redevelopment Law; and WHEREAS, a reasonable time prior to the Agency considering the Replacement Housing Plan for adoption, a draft of the Replacement Housing Plan was made available for public review and comments. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS: Section 1. The Agency hereby adopts the attached Replacement Housing Plan for 1855 and 1875 Clayton Road, Concord, California. Section 2. This resolution shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED by the Redevelopment Agency of the City of Concord on January 11, 2011, by the following vote: AYES: Agencymembers - NOES: Agencymembers - ABSTAIN: Agencymembers - ABSENT: Agencymembers - I HEREBY CERTIFY that the foregoing Resolution No was duly and regularly adopted at a regular joint meeting of the City Council and the Redevelopment Agency of the City of Concord on January 11, APPROVED AS TO FORM: Craig Labadie Agency Counsel Mary Rae Lehman Agency Secretary 28 Attachment: Replacement Housing Plan for 1855 and 1875 Clayton Road Res. No

6 CONCORD REDEVELOPMENT AGENCY REPLACEMENT HOUSING PLAN FOR 1855 AND 1875 CLAYTON ROAD, CONCORD, CALIFORNIA January 2011 The Redevelopment Agency of the City of Concord ( Agency ) is in the process of carrying out the Redevelopment Plan for the Central Concord Redevelopment Project ( Redevelopment Project ). In connection with implementation of the Redevelopment Project and the Agency s Strategic Plan for the Redevelopment Project, the Agency purchased property upon which two, 2-bedroom dwelling units housing very low income households were located. Neither of the dwelling units was occupied by elderly persons. Due to the unhealthy and unsafe conditions of those units, they were demolished as soon as possible. Pursuant to Section of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) ( CRL ), the Agency is required to: (1) rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, within four years from the removal of such dwelling units, for rental or sale to persons and families of low- or moderate-income, an equal number of replacement dwelling units at an affordable housing cost within the territorial jurisdiction of the Agency; and (2) adopt a replacement housing plan as soon as practical following removal of unsafe or unhealthy dwelling units. The affordable housing cost for these units must be affordable to persons in the same or lower income category as the persons displaced from these dwelling units. The replacement housing plan is required to include the following: 1. the general location of housing to be rehabilitated, developed or constructed pursuant to CRL Section 33413; 2. an adequate means of financing such rehabilitation, development or construction; 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 housing persons and families of low or moderate income planned for construction or rehabilitation; and 5. the timetable for meeting the plan s relocation, rehabilitation, and replacement housing objectives. OAK # v1 1

7 A. GENERAL LOCATION OF THE REPLACEMENT HOUSING All replacement housing to be provided pursuant to this Plan shall be located within the City of Concord. Specific locations will be determined based on consistency with the land uses designated in the Redevelopment Plan and the City s General Plan, as well as consistency with the goals and objectives of the Housing Element of the City s General Plan. B. METHOD OF FINANCING THE REPLACEMENT HOUSING The principal source of funding the replacement housing required under this Plan will be monies available to the Agency from its Low and Moderate Income Housing Fund established pursuant to CRL Section ( Housing Fund ). The Agency s current Five-Year Implementation Plan for the Redevelopment Project for the period through ( Implementation Plan ) estimates projected revenues for the Housing Fund of $16,690,000, of which $5,790,000 is planned for carrying out its First Time Homebuyer Program. The Agency may use these program funds to provide the required replacement housing units. C. ARTICLE XXXIV The housing provided under this Plan will not require Article 34 approval because pursuant to Section 37001(f) of the Health and Safety Code, the replacement housing will consist of the replacement of dwelling units of a project previously occupied by lower income households, as defined in Section of the Health and Safety Code. D. NUMBER OF UNITS TO BE CONSTRUCTED OR REHABILITATED As set forth in the Agency s current Implementation Plan, the Agency s First Time Homebuyer Program is estimated to provide 24 affordable units during the Implementation Plan period. Although some of the First time Homebuyer Program funds may be used for purchase of existing dwelling units, within the next four years the Agency may designate funds from its First Time Homebuyer Program or other Housing Programs to provide for at least two newly constructed units or two rehabilitated units to be available to very low income households at an affordable housing cost for the purpose of meetings its replacement housing obligations under this Plan. E. TIMETABLE FOR MEETING RELOCATION, REHABILITATION AND REPLACEMENT HOUSING OBJECTIVES Due to the unhealthy and unsafe conditions of the dwelling units, the dwelling units have already been removed and the occupants have been relocated. OAK # v1 2

8 The dwelling units were removed in July, The Agency intends to provide the replacement units no later than July, OAK # v1 3