REPLACEMENT HOUSING PLAN

REPLACEMENT HOUSING PLAN FOR THE DESERT VIEW NEIGHBORHOOD PROJECT Prepared for CITY OF LANCASTER REDEVELOPMENT AGENCY 44933 FERN AVENUE LANCASTER, CALIFORNIA 93534 By Lancaster Redevelopment Agency 44933 Fern Avenue Lancaster, California 93534 (661)723-6000

TABLE OF CONTENTS TABLE OF CONTENTS I. INTRODUCTION.............................................. 1 II. PROJECT DESCRIPTION AND LOCATION...................... 3 III. UNITS TO BE REPLACED.................................... 5 IV. ANNUAL INCOME RESTRICTIONS........................... 8 V. LOCATION OF REPLACEMENT HOUSING..................... 9 VI. FINANCING THE REPLACEMENT HOUSING.................. 10 VII. NON-APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION.................... 10 VIII. TIME TABLE FOR REPLACEMENT HOUSING................ 11 IX. SUMMARY............................................... 11

I. INTRODUCTION I. INTRODUCTION The City of Lancaster Redevelopment Agency (the Agency ) is proposing to acquire certain property in conjunction with the development of various projects in the Desert View Neighborhood Project area. For purposes of this Replacement Housing Plan, these various projects collectively shall be referred to as the Project or Projects. Section 33413.5 of the California Redevelopment Law (Health and Safety Code, Section 33000 et seq.) requires a redevelopment agency to adopt a replacement housing plan whenever the agency executes an agreement for acquisition of real property, or an agreement for the disposition and development of property which would lead to the destruction or removal of dwelling units from the low and moderate income housing market. The plan should identify the impacts that a particular redevelopment project will have on the community's supply of low and moderate-income housing and detail the measures that the agency will take to ensure that the appropriate replacement housing is produced within the four-year time limit. Agencies have two options for pursuing replacement housing either pursuant to Section 33413(a) of the California Redevelopment Law or Section 33413(f). Section 33413(a) of the California Redevelopment Law requires that whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, which is subject to a written agreement with a redevelopment agency or where financial assistance has been provided, the agency shall within four (4) years of the destruction or removal; rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units at affordable housing cost within the redevelopment project area or within the territorial jurisdiction of the agency. Because the dwelling units will be removed after January 1, 2002, one hundred percent (100%) of the replacement dwelling units shall be available at affordable housing cost to, and occupied by, persons in the same or a lower income category (very low, low and moderate) as the persons displaced from those destroyed or removed units. Notwithstanding Section 33413(a), Section 33413(f), states that an Agency may replace destroyed or removed dwelling units with fewer number of replacement dwelling units if the replacement units meet both of the following criteria: (1) the total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units, and (2) the replacement units are affordable to the same income level of the households as the destroyed or removed units. The units must be within the agency s jurisdiction, in standard condition, and designed to remain affordable to very low, low and moderate income households, respectively, for a minimum of the longest feasible time, as determined by the agency, but for no less than the period of the land use controls established in the redevelopment plan, unless a longer time period is applicable under the Health & Safety Code 33413(c). REPLACEMENT HOUSING PLAN PAGE 1

The Redevelopment Plan s for the City of Lancaster s Redevelopment Project Area #5 is scheduled to expire on November 26, 2025. This Replacement Housing Plan (the "Plan") has been prepared by the Agency as a result of proposed redevelopment of property located in the Project and to satisfy the requirements for replacement housing contemplated under the California Redevelopment Law. This Plan describes the following: 1) Proposed project, 2) General location of the very-low, low and moderate income dwelling units which will, or may be, removed or destroyed as a result of the project, 3) General location and intentions for the development of the replacement housing, 4) Means of financing such development, 5) Schedule for the construction of the replacement housing, and 6) Period for which these units will remain affordable. 7) A finding that the replacement housing does not require approval of the voters pursuant to Article XXXIV of the California Constitution. REPLACEMENT HOUSING PLAN PAGE 2

II. PROJECT DESCRIPTION AND LOCATION II. PROJECT DESCRIPTION PROJECT DESCRITPION The Desert View Neighborhood Vision Plan proposes a variety of new uses, enhancement of certain existing uses, and extensive pedestrian and vehicular connections. The Vision Plan involves development of residential and recreational areas, a neighborhood park for community/recreational uses, pedestrian accessible walkways through the developments, and streetscape improvements throughout the Plan area, which the Desert View Neighborhood Project proposes. These proposed Projects will require acquisition of the real property, which will necessitate the displacement of residents living in the Desert View Neighborhood Project area. These Projects are located in Redevelopment Project Area #5. At this time, one hundred three (103) dwelling units are proposed be removed for all the various proposed projects. All funds necessary for land acquisition and relocation assistance and benefits to the displaced families will be through the Agency and/or in conjunction with for-profit and/or nonprofit developers. PROJECT LOCATION The proposed Desert View Neighborhood Plan area is located in the City of Lancaster, in the Antelope Valley portion of Los Angeles County, California. The Plan comprises approximately 655± acres generally located between West Avenue H to the north and West Avenue I to the south, and 20 th Street West to the west and 10 th Street West to the east. On the following pages, please find: Figure 1 - Regional Project Setting, and Figure 2 - Project Site Location REPLACEMENT HOUSING PLAN PAGE 3

Figure 1: Regional Project Setting Figure 2. Project Site Location REPLACEMENT HOUSING PLAN PAGE 4

III. UNITS TO BE REPLACED TO BE REPLACED Survey of Dwellings to be Removed While a door-to-door survey was not conducted, information was obtained from the current property owners and interviews with the tenants of the Desert View Neighborhood Project area, appraisals, title companies, Los Angeles County Tax Collector and other information available to the public in order to determine the number of bedrooms for each displaced dwelling unit. Access to interview the occupants of the dwelling units was not always available; therefore, assumptions were made with respect to the income levels of the families displaced from the Projects. The dwelling units to be removed were found to consist of single family residences, duplexes, fourplexes and multifamily units with up to five units. For purposes of determining the Project s required replacement housing, one hundred three (103) dwelling units are very low income. In addition, two hundred seven (207) bedrooms are assumed to be very low income. When more interviews of the displaced households are undertaken for development of a subsequent project, and it is determined that another income category would more appropriately classify any of the displaced occupants, then the Plan will be modified accordingly to reflect the actual income level and the appropriately sized replacement unit. Thus, all occupied dwelling units will be considered in this Replacement Housing Plan analysis. Replacement Housing Requirements Per the California Redevelopment Law, as discussed in Section I - Introduction, the Agency shall make available 100 percent (100%) of the replacement dwelling units at affordable housing cost to, and occupied by, persons in the same or a lower income category (very low, low and moderate) as the persons displaced from those destroyed or removed units. Table 1, below, defines the number of dwelling units, with the corresponding number of bedrooms, that will be displaced and the 100% requirement for replacement dwelling units and number of bedrooms by income level. The numbers under each household income category indicate the total households displaced (the number of dwelling units) by dwelling unit size (the number of bedrooms). For this Project, the one hundred three (103) households were found to have the following mix of dwelling unit sizes categorized by the number of bedrooms: sixteen (16) one-bedrooms, seventytwo (72) two-bedrooms, thirteen (13) three-bedroom and two (2) four-bedrooms. In addition, the survey found one hundred three (103) very low income families residing in the one hundred three (103) dwelling units. REPLACEMENT HOUSING PLAN PAGE 5

TABLE 1: DISPLACED DWELLINGS & BEDROOMS BY DWELLING UNIT SIZE & HOUSEHOLD INCOME LEVEL (100% REQUIREMENT) DESERT VIEW NEIGHBORHOOD PROJECT Unit Size Very-low Income Low Income Moderate Income Total Units/Beds to Units/Beds Units/Beds Units/Beds be Replaced One Bedroom 16/(16) 0/(0) 0/(0) 16/(16) Two Bedroom 72/(144) 0/(0) 0/(0) 72/(144) Three Bedroom 13/(39) 0/(0) 0/(0) 13/(39) Four Bedroom 2/(8) 2/(8) Total Dwelling & 103/(207) 0/(0) 0/(0) 103/(207) Bedroom Displaced REPLACEMENT HOUSING PLAN PAGE 6

The results suggest that two hundred seven (207) replacement bedrooms need to be rehabilitated, developed, or constructed pursuant to Section 33413(a) of the Community Redevelopment Law. Based on the criteria of replacing all bedrooms by income level, two hundred seven (207) replacement bedrooms should be affordable to very low-income households. These bedrooms may be constructed with a fewer number of dwelling units as long as the total number of bedrooms are in the same or a lower income category. REPLACEMENT HOUSING PLAN PAGE 7

IV. ANNUAL INCOME RESTRICTIONS IV. ANNUAL INCOME RESTRICTIONS California Health and Safety Code Sections 50079.5 and 50105 provide that the moderate, low and very-low income limits established by the U. S. Department of Housing and Urban Development ("HUD") are the state limits for those income categories. Sections 50079.5 and 50105 direct the Department of Housing and Community Development ("HCD") to publish the income limits. HUD released new income limits in April 2009. Accordingly, HCD has filed with the Office of Administrative Law, amendments to Section 6932 of Title 25 of the California Code of Regulations. The amendments contain the new HUD income limits prepared by HCD pursuant to Health and Safety Code Section 50093. The following figures, shown in Table 2, are approved for use in the County of Los Angeles to define and determine housing eligibility by income level: TABLE 2: HOUSING ELIGIBILIY BY INCOME LEVEL Area Four Person Median: $62,100 Family Size Very Low Lower Median Moderate Annual Income Annual Income Annual Income Annual Income 1 Person $16,650 $27,750 $44,400 $43,450 $52,150 2 Person $19,050 $31,700 $50,750 $49,700 $59,600 3 Person $21,400 $35,700 $57,100 $55,900 $67,050 4 Person $23,800 $39,650 $63,450 $62,100 $74,500 5 Person $25,700 $42,800 $68,550 $67,050 $80,450 6 Person $27,600. $46,000 $73,600 $72,050 $86,400 7 Person $29,500 $49,150 $78,700 $77,000 $92,400 8 Person $31,400 $52,350 $83,750 $81,950 $98,350 REPLACEMENT HOUSING PLAN PAGE 8 V. LOCATION OF REPLACEMENT HOUSING

V. LOCATION OF REPLACMENT HOUSING In order to replace the deficit, the Agency shall cause to have built sufficient units/bedrooms to comply with the requirements of this Plan. The area targeted for the construction of these affordable dwelling units is located within the City of Lancaster s is Amargosa Redevelopment Project Area, Central Business District Redevelopment Project Area, Redevelopment Project Area #5, Redevelopment Project Area #6, Redevelopment Project Area #7, and the Residential Redevelopment Project Area. Therefore, the Agency may satisfy its replacement housing obligation, as described in Table 1, from planned new construction and/or rehabilitation projects within the subject Redevelopment Project Areas. One hundred three (103) dwelling units with the complement of two hundred seven (207) replacement bedrooms affordable to very low-income households shall be developed within the subject project areas. Irrespective of the number of dwelling units, the future dwellings must contain at a minimum of two hundred seven (207) replacement bedrooms affordable to very lowincome households. These bedrooms may be located within a fewer number of dwelling units as long as the total number of bedrooms within the income category is maintained. REPLACEMENT HOUSING PLAN PAGE 9

VI. FINANCING THE REPLACEMENT HOUSING VI. FINANCING THE REPLACMENT HOUSING The Redevelopment Plans that were created for the Amargosa Redevelopment Project Area, Central Business District Redevelopment Project Area, Redevelopment Project Area #5, Redevelopment Project Area #6, Redevelopment Project Area #7 and Residential Redevelopment Project Area authorize the Agency to finance its activities with assistance from or through a variety of funding sources, including the City of Lancaster, State of California, United States Government, property tax increment funds, interest income, Agency bonds, or other available sources. In the acquisition, construction and/or rehabilitation of the affordable housing units identified in the preceding section, the Agency may utilize a variety of funding sources to finance these activities. Sources that may be utilized include: State and/or Federal grants and loans, including, but not limited to; HOME grants; various mortgage subsidy or guarantee programs, including Section 202 and programs offered by the California Housing Financing Agency (Calhfa); tax increment funds; below market rate financing through the sale of tax exempt mortgage revenue bonds (individually or pooled); redevelopment twenty percent set-aside funds; and developer funds. Specific funding for future replacement housing units may be through the use of any combination of the above described methods and sources. VII. NON-APPLICABILITY OF ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION It is hereby found and determined that the replacement housing to be developed and constructed under this replacement housing plan does not require approval of the voters of the City of Lancaster pursuant to Article XXXIV of the California Constitution in that the replacement housing units meet one or more of the exemption criteria. With respect to the replacement housing units, Article XXXIV also provides for the Agency to conduct activities, which may provide developers assistance in financing, acquisition of land, leasing of existing dwelling units, monitoring construction of rehabilitation by imposition of mandated or authorized conditions, and/or other assistance consistent with the Article. REPLACEMENT HOUSING PLAN PAGE 10

VIII. TIME TABLE FOR REPLACEMENT HOUSING VIII. TIMETABLE FOR REPLACEMENT HOUSING The Agency, through agreements with development entities, will complete within four years of the date the units are destroyed at the various individual projects, construction and/or rehabilitation of replacement housing units necessary to satisfy all very-low and low income affordable dwelling units or bedrooms discussed in this Plan. IX. SUMMARY In summary, a total of two hundred seven (207) bedrooms in one hundred three (103) dwelling units will be removed as a result of the construction of the Project. Based on the dwelling units/bedrooms destroyed for the proposed Project, the Agency may satisfy its replacement housing obligation by utilizing the one hundred three (103) dwelling units with the complement of bedrooms by developing the one hundred three (103) dwellings from planned new construction and/or rehabilitation projects within the subject Redevelopment Project Areas. These future dwellings must contain at a minimum three hundred eighty three (383) replacement bedrooms affordable to very low-income households. These bedrooms may be located within a fewer number of dwelling units as long as the total number of bedrooms within the income category is maintained. The above actions will yield the required number of replacement dwelling units as mandated under California Redevelopment Law and the Housing and Community Development Act. The City of Lancaster Redevelopment Agency recognizes its legal and community responsibilities in this matter and has made a sincere, good-faith effort to accomplish these goals. The Agency retains its option to use other approaches and strategies not discussed herein to fulfill its replacement housing obligations in a timely manner. REPLACEMENT HOUSING PLAN PAGE 11