HomeMy WebLinkAboutPublic Hearing to Consider Approval of the Five Year Impleme i \ }
Council/Agency Meeting Held: 0
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied Ci lerk' Sign e
Council Meeting Date: 11/15/2004 Department I Number: ED 04-31
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENEY
MEMBERS - -
SUBMITTED BY: PENELOPE �BREfH-AFT, EXECU IVE DIRECTOR_
PREPARED BY: DAVID C. BIGGS, DEPUTY EXECUTIVE DIRECTOR _-
SUBJECT: Approve the Five-Year Implementation Plan (2005-09) ant'th�Ten-
Year Housing Compliance Plan (2005-14) for the Huntington Beach
Redevelopment Project (Merged Project Area
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachments)
Statement of Issue: The California Redevelopment Law (California Health and Safety
Code, §33490) requires Redevelopment Agencies to prepare and adopt Five-Year
Implementation Plans and Ten-year Housing Compliance Plans. The Agency's current plans
for the Huntington Beach Project (Merged Project Area) expire on December 31, 2004. The
attached plans are submitted for public hearing and approval.
Funding Source: None required.
Recommended Action: MOTION TO:
1. Approve the Five-Year Implementation Plan (2005-09) and the Ten-Year Housing
Compliance Plan (2005-14) for the Huntington Beach Project (Merged Project Area).
Alternative Action(s): Do not approve the plans.
Analysis: California Redevelopment Law (California Health and Safety Code, §33490)
requires Redevelopment Agencies to prepare and, after holding a public hearing, adopt five-
year Implementation Plans and Ten-year Housing Compliance Plans. The Agency's current
plans for the Huntington Beach Project (Merged Project Area) expire on December 31, 2004.
On December 20, 1999, the Redevelopment Agency adopted its Five-Year
Implementation Plan for the Huntington Beach Project, covering the years from 1999 -
2004. Concluding this five-year planning period, the Agency now looks forward to the next
five years, 2005 to 2009, in the Five-Year Implementation Plan (Attachment 1).
i
e-
mEQUEST FOR ACTION
MEETING DATE: 11/15/2004 DEPARTMENT ID NUMBER:ED 04-31
The purpose of the Plan is to identify the specific goals and objectives for the Huntington
Beach Redevelopment Project, describe the specific programs, including potential projects
and estimated expenditures that would be made during the five years, and explain how these
activities will eliminate blight and improve and increase the supply of affordable housing for
the very-low, low, and moderate-income households.
At the same time, as this concludes the ten-year period for the Housing Compliance Plan that
was approved in October 1994. The Housing Compliance Plan (Attachment 2) is the
opportunity to review the last ten-year period and to restate the Agency's affordable housing
goals, objectives, and specific programs to meet its affordable housing obligations over the
next ten years for the Huntington Beach Project. In brief, currently the Agency has met all of
its replacement and production obligations. A new Housing Compliance Plan requirement
(HSS, §33334.4) is to illustrate how the Agency will assist the very-low and low-income
households, and the households under the age of 65 in the same proportion as reported in
the 2000 Census for Huntington Beach. This requirement brings together the Agency's goals
with the City's Housing Element's goals to provide housing for these population groups.
Public Notice: A notice of this hearing was published according to Government Code §6063
and posted in at least four permanent places within the project area for a period of three
weeks. The Huntington Beach Independent publication dates for the public notice were
October 21, 28, and November 4, 2004, completing the publication period of ten days prior to
this hearing date as required by law.
Environmental Status: Not applicable.
Attachmepys):
City Clerk's
Page Number • Description
1. Five-Year Implementation Plan (2005-09) of the Huntington Beach
Project (Merged Project Area).
2. Ten-Year Housing Compliance Plan (2005-14) of the Huntington
Beach Project (Mer ed Project Area).
G:\Carol\Administration\RCA\ed04-3l.doc -2- 10/15/2004 9:51 AM
THE FIVE YEAR
IMPLEMENTATION PLAN 2005-09
THE HUNTINGTON BEACH PROJECT
("MERGED PROJECT AREA")
THE FIVE YEAR
IMPLEMENTATION PLAN 2005-09
THE HUNTINGTON BEACH PROJECT
"MERGED PROJECT AREA")
5 4 i Y tY
REDEVELOPMENT AGENCY
OF
THE CITY OF HUNTINGTON BEACH
•
Department of Economic Development
November 15, 2004
City of Huntington Beech
Redevelopment Agency
ACKNOWLEDGEMENTS
Redevelopment Agency
Chair
CATHY GREEN
Vice-Chair
JILL HARDY
Members
CONNIE BOARDMAN
GIL COERPER
DEBBIE COOK
DAVE SULLIVAN
PENNY CULBRETH-GRAFT
Executive Director
WILLIAM P. WORKMAN
Assistant Executive Director
DAVID C. BIGGS
Deputy Executive Director
DEPARTMENT OF ECONOMIC DEVELOPMENT—CONTRIBUTING STAFF
Gustavo Duran, Housing and Redevelopment Manager
Carol Runzel, Assistant Project Manager
Steve Holtz, Assistant Project Manager
Luann Brunson, Senior Administrative Analyst
TABLE OF CONTENTS
Introduction.................................................................................................................................................. 1
Contents of the Implementation Plan................................................................................................... 3
BlightingConditions............................................................................................................................ 3
Goals of the Redevelopment Plan........................................................................................................ 4
Implementation Plan 1999-2004-Accomplishments.............................................................................. 5
Projects &Activities............................................................................................................................ 5
Affordable Housing Projects ............................................................................................................... 8
Implementation Planning Period: 2005-09................................................................................................ 10
Non-Housing Projects&Activities ....................................................................................................... 10
Waterfront Project—Hyatt Regency Huntington Beach Resort& Spa............................................. 10
WaterfrontResidential....................................................................................................................... 11
Waterfront Expansion(Third Hotel).................................................................................................. 11
The Strand(Blocks 104-105), CIM Project....................................................................................... 12
PacificCity-31-Acre Site................................................................................................................. 13
Atlanta/Beach Project........................................................................................................................ 13
Edinger Corridor Specific Plan No.14............................................................................................... 14
Huntington Center—Bella Terra....................................................................................................... 15
Beach/Edinger Project....................................................................................................................... 16
Cypressand Elm................................................................................................................................ 17
Oceanview Promenade—Abdelmuti Development........................................................................... 17
AutoDealer Sign............................................................................................................................... 18
Economic Development Program...................................................................................................... 18
PublicImprovements......................................................................................................................... 19
Non-Housing Projects Summary—Table Il ......................................................................................20
Affordable Housing Programs—Housing Compliance Plan................................................................. 22
Five-Year Budget....................................................................................................................................... 22
Introduction
The City Council of the City of Huntington Beach ("City") created its Redevelopment Agency in March
1, 1976. Between 1982 and 1984, the Agency adopted five separate redevelopment projects, namely
Main-Pier, Talbert-Beach, Yorktown-Lake, Oakview, and Huntington Center. In December 1996, five
redevelopment project areas were amended and merged to from a single project area called the
Huntington Beach Redevelopment Project Area, also more commonly known as the "Merged Project
Area", consisting of 619 acres (less than 3.5% of the City's acreage). The primary goal of the merger was
to allow for the tax increment revenues from the five sub-areas to be spent throughout the merged area.
Later on July 15, 2002, an amendment to the Merged Project Area Redevelopment Plan was approved
which eliminated the time limits to incur debt to January 1, 2014 (City Ordinance 3566). After the plan
termination dates (40 years from adoption date) listed below, the Agency can only pay previously
incurred indebtedness, collect tax increment revenue, and enforce existing covenants, contracts, or other
obligations.):
Sub-Area Adoption Adoption Date Termination Date
Yorktown Lake Ord. 2576 Sept. 20, 1982 Sept 20, 2022
Talbert-Beach Ord. 2577 Sept. 20, 1982 Sept. 20, 2022
Original Main Pier Ord. 2578 Sept. 20, 1982 Sept. 20, 2022
Oakview Ord. 2582 Nov. 1, 1982 Nov. 1, 2022
Added Main-Pier Ord. 2634 Sept. 6, 1983 Sept. 6, 2023
Huntington Center Ord. 2743 Nov. 26, 1984 Nov. 26. 2024
With the adoption of AB 1290 in 1993, Redevelopment Agencies were required to adopt implementation
plans that contained specific goals and objectives for the project areas showing how expenditures were
going to eliminate blight (California Health & Safety Code, §33490) and to update the plans every five
years. The last Five-Year Implementation Plan 1999-2004 was adopted on December 20, 1999 and will
expire on December 31, 2004. On December 16, 2002, a public hearing was held to evaluate the progress
of the plan. The report showed that the Agency was meeting its goals and fully described the
accomplishments for the period evaluated.
The Merged Project Area Five Year Implementation Plan 2005-09 (Implementation Plan) presents the
goals and objectives, anticipated projects and programs, and estimated expenditures for 2005 through
2009. The adoption of the Implementation Plan does not constitute an approval of any specific program
or project, as these approvals will be considered as the projects are implemented. The Implementation
Plan provides a framework to guide the Agency to affirm its goals and evaluate its progress. California
Community Redevelopment Law §33490(c) requires that the Redevelopment Agency evaluate the
progress of its Five Year Implementation Plan by holding a public hearing prior to the end of the third
year,which would be in December 2007. In addition,to monitor the progress of the Agency in relation to
its Implementation Plan, the Agency submits its annual reports to the California State Controller and the
Department of Housing and Community Development. This Implementation Plan will expire on
December 31, 2009.
As additional background information, the Agency adopted two other project areas that are not part of the
Merged Project Area. The first was the Warner-Goldenwest Small Lot Redevelopment Plan, adopted on
August 1, 1977 and closed on August 30, 1992, earlier than the original duration of the plan as the goals
of the plan were achieved. The second is the Southeast Coastal Redevelopment Project Area, adopted on
June 17,2002 that is still within its first Five Year Implementation Plan.
Redevelopment Agency of the 1 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Redevelopment Agency of the 2 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Contents of the Implementation Plan
Section 33490 of the California Community Redevelopment Law ("Law") requires that the
Implementation Plan include the following information:
• specific goals and objectives of the Agency for the Merged Project Area,
• the specific programs, including potential projects,and estimated expenditures proposed to be
made during the next five years, and
• an explanation of how the goals and objectives,programs, and expenditures will eliminate blight
within the project area and will improve and increase the supply of housing affordable to very
low, low,and moderate income households.
The Law also requires that the Implementation Plan address the Agency's affordable housing production
needs and achievements. These items are addressed in a separate document, the Ten Year Affordable
Housing Compliance Plan, which is incorporated herein by reference.
iBlighting Conditions
Redevelopment projects are established to remedy conditions of blight as defined by the Law that is in
effect at the time a redevelopment project is adopted. The Law's definition of what constitutes blight has
changed substantially since the constituent areas of the Project Area were established in the early 1980s.
The Law's current blighted definition is set forth below:
• Unsafe/Dilapidated/Deteriorated Buildings: Buildings in which it is unsafe or unhealthy for
persons to live or work. Serious building code violations, dilapidation and deterioration,
defective design or physical construction, faulty or inadequate utilities, or other similar factors
can cause these conditions.
• Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings: Factors
that prevent or substantially hinder the economically viable use or capacity of buildings or lots.
This condition can be caused by a substandard design, inadequate size given present standards
and market conditions,lack of parking, or other similar factors.
• Incompatible Uses: Adjacent or nearby uses that are incompatible with each other and which
prevent the economic development of those parcels or other portions of the project area.
• Lots of Irregular Shape,Inadequate Size,and Under Multiple Ownership: The existence of
subdivided lots of irregular form and shape and inadequate size for proper usefulness and
development that are in multiple ownership.
• Depreciated/Stagnant Property Values; Impaired Investments: Depreciated or stagnant
property values or impaired investments, including,but not necessarily limited to,those
properties containing hazardous wastes that require the use of agency authority as specified in
Article 12.5 (commencing with Section 33459).
• High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant
Lots: Abnormally high business vacancies, abnormally low lease rates, high turnover rates,
abandoned buildings, or excessive vacant lots within an area developed for urban use and served
by utilities.
Redevelopment Agency of the 3 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
• Lack of Neighborhood Commercial Facilities: A lack of necessary commercial facilities that
are normally found in neighborhoods, including grocery stores, drug stores, and banks and other
lending institutions.
• Overcrowding/Excess of Adult Businesses: Residential overcrowding or an excess of bars,
liquor stores, or other businesses that cater exclusively to adults, that has led to problems of
public safety and welfare.
• High Crime Rates: A high crime rate that constitutes a serious threat to the public safety and
welfare.
The Law also characterizes inadequate public improvements as blight when the above conditions are also
present.
The Agency has previously documented blighting conditions that persist in the Project Area in
conjunction with the 1996 plan amendment and again in 1999. These persistent conditions included
deterioration, irregular subdivision of lots, age and obsolescence, inadequate public improvements, and
high crime rates relative to other areas of the City. The Agency's proposed projects and expenditures
outlined in this Plan will be evaluated in terms of how such activities address these blighting conditions.
Goals . .
Section 500 of the Huntington Beach Project Redevelopment Plan delineates the Agency's community
development goals for the Project Area. These goals formulate the overall strategy for this
Implementation Plan and serve as a guide for the Agency's activities:
A) Eliminate and prevent the spread of conditions of blight including: underutilized properties and
deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and
facilities,obsolete structures, and other economic deficiencies in order to create a more favorable
environment for commercial, office, industrial,residential, and recreational development.
B) Expand the commercial base of the Project Area.
C) Improve public facilities and public infrastructure.
D) Improve inadequate drainage infrastructure.
E) Improve and/or provide electric, gas,telephone, and wastewater infrastructure to both developed
and undeveloped properties within the Project Area.
F) Promote local job opportunities.
G) Encourage the cooperation and participation of residents,businesses,business persons,public
agencies, and community organizations in the redevelopment/revitalization of the Project Area.
H) Implement design and use standards to assure high aesthetic and environmental quality, and
provide unity and integrity to developments within the Project Area.
1) Address parcels of property that are: of irregular form and shape, are inadequately sized for
proper usefulness and development, and/or are held in multiple-ownership.
J) Remove impediments to land disposition and development through the assembly of property into
reasonably sized and shaped parcels served by improved infrastructure and public facilities.
K) Recycle and/or develop underutilized parcels to accommodate higher and better economic uses
while enhancing the City's financial resources.
L) Promote the rehabilitation of existing housing stock.
Redevelopment Agency of the 4 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
M) Increase, improve, and preserve the community's supply of housing affordable to very low, low
and moderate-income households.
Implementation Plan 1999-2004 - Accomplishments
On December 16, 2002, a public hearing was held to evaluate the progress of the Implementation Plan
adopted in 1999. The report showed that the Agency was meeting its goals of the plan. Now at the
conclusion of this five-year period,the accomplishments of the Agency are:
Projects-& Activities
• Waterfront Project—Hyatt Regency Huntington Beach Resort& Spa: The 517-room Hyatt
Regency Huntington Beach Resort& Spa and its Conference Center opened for business on
January 19, 2003. The project includes a 50,000 square foot conference center and 13,000 square
feet of specialty retail and a spa. A Community Facilities District was formed to fund$16 million
in public improvements related to the Hyatt Regency. This project won the California
Redevelopment Association's Award for Excellence 2004 in the Special Citation Category.
Landscaping improvements in Pacific Coast Highway were completed later in the year that added
to the resort theme. An initial completion value of$177 million determined the 2003-04 property
Tax Increment for the Hyatt Resort. The success of the project has resulted in Transient
Occupancy Tax and Tax Increment being higher than expected. So far, the Agency has made
three payments totaling $2,471,800 towards its Developer Advance loan repayment obligation of
over$11 million plus interest.
• Degraded Wetland Preservation: In 2002, the Robert Mayer Corporation quitclaimed back to
the Redevelopment Agency a one acre parcel that was removed from the Residential project for
wetland preservation. An additional three(3)acres was dedicated to the City to serve as a buffer
area between the development and the wetland.
• Waterfront Project—Residential: Escrow closed on June 13,2003, conveying the Waterfront
Residential parcel from Mayer Financial, LLC to the residential merchant builders. Shortly
thereafter, construction on 184 market rate residential units began. William Lyon Homes is
building 78 paseo homes ("SeaColony"), and Christopher Homes is building 106 courtyard
homes("SeaCove"). Sales have commenced in both developments with escrow closing on the
first two phases of the paseo homes. The Redevelopment Agency will receive a"participation
payment"of 15%of the sales proceeds above a $59 million threshold. As of October 15, 2004,
$1,142,355 in participation payments has been received.
• Duke's/Chimayo's restaurants and Pier Plaza: These restaurants are located in a City owned
15,000 square foot building adjacent to the pier. Just north of the pier is Pier Plaza, a major
public venue that hosts the Friday Farmer's Market&Crafts Fair, and other public events such as
"Pier Plaza Presents".
• Plaza Almeria: Construction was completed in August 2000,
on this mixed-use project with 40,000 sf of retail/commercial
22
and 42 townhomes. Plaza Almeria received national ��
recognition as an example of successful mixed-use ``�
development and was awarded the California Redevelopment :
Association's 2002 Award of Excellence. '
Redevelopment Agency of the 5 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
• The Strand(Downtown Blocks 104-105): A Disposition and
Development Agreement was approved in 1999 for the -"-w -
redevelopment of the two-block area bounded by Fifth,Pacific .
Coast Highway, Sixth and Walnut. On October 1, 2002, the '
Planning Commission approved the project's entitlements with
certain conditions. CIM is proposing a visitor-serving project
with retail, restaurants, entertainment and hospitality uses on a
portion of Blocks 104 and 105 in downtown Huntington Beach.
The project is proposed with retail(53,000 sq. ft.),restaurants
(40,000 sq. ft.)offices(28,000 sq. ft.) and a 149-room hotel
(110,880 sq. ft.). The total project is estimated to be 231,880 sq. ft. During 2003-04,Agency
staff worked to clear title for its parcels to be conveyed to CIM,including paying off a loan
secured by several properties owned by the Agency within this project. The CIM Group began its
oil well re-abandonment program. The Replacement Housing Plan for the project, adopted on
May 3, 1999, first identified that there would be nine residential rental units displaced; since that
time, consideration for these units are no longer necessary as the portion of the site with
residential units was removed from the scope of development. In September 2003,the
Redevelopment Agency and CIM entered into an Implementation Agreement whereby the
Agency agreed to pay up to $1.5 million for 60 or more additional parking spaces to be
constructed on-site. A$250, 000 commitment payment toward these additional spaces was made
in September, 2004. The site was conveyed to the developer on June 25, 2004. Construction on
the project began on October 11,2004. Community Facilities District(CFD 2004-1)is in the
process of being formed to issue a maximum of$15 million in tax-exempt bonds to fund the
public improvements associated with this project.
• Main/Walnut: The former Standard Market building was n—&g '
replaced with a new 9 000-sf two-story,retail building with g � .....�
construction completed in 2000 that houses a restaurant on the '
second level and retail at the street level. An Owner _
Participation Agreement between the Redevelopment Agency
and Mohammed& Adel Zeidan was approved June 20, 1997.
The Agency provided$146,800 in financial assistance and
obtained a recorded covenant to restrict its use (no residential,
no arcade,no manufacturing)until 2022. The 1997 Assessed
Value was $347,149, compared to the 2004 Assessed Value of
$1,424,877.
• Bella Terra(Huntington Center Mall): Majority ownership of this 58-acre regional site
changed hands in late 1999, with Ezralow Retail Properties becoming the new owner. As
Huntington Center Associates, LLC(IICA), Ezralow partnered J.h Snyder Co. to redevelop this
outdated retail property into an
{ J entertainment/life style center. HCA entered
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� � into an Owner Participation Agreement(OPA)
(Hunting_ 1 with the Agency on October 2, 2000. Kohl's
opened for business on March 7, 2003, in the
remodeled retail space vacated by the
Broadway. Community Facilities District
2003-1 (Huntington Center)was formed in
2003 that ultimately resulted in providing$25
P�t�
rf million in tax-exempt bonds to fund the public
improvements associated with the project.
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Redevelopment Agency of the 6 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Construction of Phase I improvements near Sher Lane and Edinger were completed with new
drive lanes,pedestrian walkways and landscaping improvements. During the summer of 2004,
the construction on the movie theatres and public parking structure commenced.
• Sale of Agency Properties: During this period the Agency sold two of its downtown properties,
438 Main Street and 214 Fifth Street. The 438 Main Street office building sold for$887,513, and
has been renovated to modern standards. The vacant parcel at 214 Fifth Street sold for
$1,047,700 in September 2004.
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• Elm/Cypress—Negotiation on this Agency owned parcel is on hold due to a change of ownership
in the adjacent properties.
• Edinger Corridor Specific Plan: The Department of Economic Development, the Planning
Department, and the Public Works Department have been working with EDAW, Inc. to draft the
Edinger Corridor Specific Plan SP14. Three public workshops were held inviting property
owners, businesses, and tenants to provide input on the community's vision for the area. SP14 is
proposed to cover an area along Edinger Avenue between Beach Boulevard and Goldenwest
Street, and most of the Huntington Center Redevelopment sub-area. Draft SP-14 is near
completion and will be presented to the Planning Commission and City Council for approval
during 2005.
Redevelopment Agency of the 7 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Affordable Housing Projects
The Agency completed 27 affordable housing projects during its last Ten-Year Housing Compliance Plan
period (1994-2004), of which 15 were completed during the last five years of the plan period(1999-
2004). The housing projects completed during this five-year period added 640 units to the Agency's
affordable housing inventory, at a total cost to the Agency of$11,804,734.
Table I below lists the Agency's affordable housing projects completed during the last ten years. These
projects are more fully described in the companion document, the Ten Year Housing Compliance Plan
2005-14.
TABLE I
Affordable Housing Projects Completed
Affordability Affordable Units
Project Period Year Built Category /Total Units Type of Agency Assistance
The Tides 30 years 2004 Family 12/77 Inclusionary
Hermosa Vista 60 years 2004 Family 88/88 $3,325,000 Agency loan&
Apartments bond financing
The Fountains Senior 60 years 2003 Senior 80/271 $2,000,000 Agency loan&
Apartments bond financing
Huntington Pointe 60 years 2003 Family 104/104 $1,700,000 Agency loan&
Apartments bond financing
Sher Lane Apartments 30 years 2003 Family 66/66 $1,200,734 Agency loan
Bowen Court Senior 60 years 2002 Senior 20/20 $900,000 Agency loan&
Apartments discounted land lease
Ash Street Condos 60 years 2002 Family 6/6 Inclusionary
Shelter for the Homeless 30 years 2002 Family 4/4 $350,000 Agency loan
—Barton 2
Habitat for Humanity— 60 years 2001 Family 3/3 $319,000 Agency grant
Yorktown
interval House 30 years 2001 Family 6/6 $585,000 Agency loan
OCCHC—Koledo 5 60 years 2000 Family 5/5 $285,000 Agency loan
OCCHC—Koledo 4 60 years 2000 Family 10/10 $570,000 Agency loan
Cape Ann 30 years 2000 Family 146/146 Inclusionary
The Promenade 30 years 2000 Family 80/80 Inclusionary
OCCHC—Koledo 3 60 years 2000 Family 10/ 10 $570,000 Agency loan
Grcystone Keys 30 years 1998 Family 24/ 150 Inclusionary
Pacific Landing 30 years 1998 Family 5/29 Inclusionary
Habitat for Humanity— 30 years 1997 Family 3/3 $163,000 Agency grant
Ronald Road
OCCHC—Koledo 2 30 years 1997 Family 8/8 $380,000 Agency loan
Bridges Apartments 30 years 1997 Family 80/80 $79,079 Agency loan&
Inclusionary
OCCHC—Queens 30 years 1997 Family 8/8 $490,000 Agency loan
Redevelopment Agency of the 8 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Affordability Affordable Units
Project Period Year Built Category /Total Units Type of Agency Assistance
Sea Air Apartments 30 years 1996 Family 36/36 $546,000 Agency loan
Pacific Park Villas 30 years 1996 Family 25/38 $1,057,000 Agency down
payment assistance loans
OCCHC—Koledo 1 30 years 1996 Family 10/10 $518,000 Agency loan
Shelter for the Homeless 30 years 1994 Family 4/4 $320,000 Agency loan
—Barton 1
Project Self Sufficiency 30 years 1994 Family 9/9 S650,000 Agency loan
OCCHC—Keelson 30 years 1994 Family 4/4 $225,000 Agency loan
Shelter for the Homeless 30 years 1994 Family 4/4 $345,000 Agency loan
—Keelson
In addition to these projects, the Agency also implemented the following programs:
• Preservation of Affordable Housing Covenants: The Agency holds 30-year affordability
covenants on 350 owner-occupied Inclusionary Housing Program units,which are restricted to
very low, low,median, and moderate income buyers. When any of these units sell,the Agency
must determine the home's affordable sales price and verify buyer eligibility. During the current
five-year plan period,the Agency approved 377 sales and/or resales of these homes. The Agency
must also approve all refinances to ensure that homeowners do not over encumber their property.
During this five-year period,the Agency reviewed and approved 367 refinances.
• Housing Rehabilitation Loans: During the current five-year plan period, 101 housing
rehabilitation loans and 9 emergency repair grants were awarded to low-income homeowners for
a cumulative amount of$1,769,391 using CDBG program funds.
Redevelopment Agency of the 9 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Implementation Planning Period: 2005-09
The following narratives describe the non-housing projects proposed for the next five years. Anticipated
program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY
2008-09. Greater or lesser funding may be available; depending upon actual assessed valuation changes
in the Project Area. Table II, page 17, summarizes the non-housing projects as described below. Table
III,page 19, summarizes the housing projects with the detail of these projects more fully contained in the
Ten Year Housing Compliance Plan.
Non-Housing Projects & Activities
Huntington�Waterfront Project— Hyatt Regency . .
Description:
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The Hyatt Regency Resort and Spa opened for business in n
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January 2001. The economic success of this project is Q
enabling the Agency to repay its loan to the developer at a ll, _ Ni
y
:.
much-accelerated rate than first anticipated. The balance
of the Developer Advance as of June 2004 is
approximately $11,459,000. Beginning with the Third
Operating Year (2005), the Developer must submit a
Certified Annual Statement to the Agency prior to April
30th (120 days after the close of the Operating Year). The
Participation Rent, 3% of the Adjusted Room Revenue
above $25 million, is due by April 30"'.
Action:
Agency staff will work to assure that the Developer Advance loan is repaid from the pledged revenue
sources and that other obligations pertaining to the Disposition and Development Agreement are met.
Staff will continue to monitor the Tax Increment and Transient Occupancy Tax pledged as the sources for
the loan repayment, and will calculate and process the payments to the developer. Staff also monitors the
lease payments and the beach restriction lease payments to assure that these payments to the Agency are
made. Likewise,the revenues are monitored for consistency with the agreement.
Expenditures:
Anticipate an annual loan payment of$2 million per year over the next five years for a total of$10
million paid.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed:
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 10 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Waterfront Residential
Description:
Construction is underway on 184 market-rate residential units on the residential portion of the Waterfront
site.
Action:
Staff will monitor completion of the project to ensure it conforms with the requirements of the
Disposition and Development Agreement. In addition, staff will monitor and track the participation
payments due.
Plan Objectives Addressed:
• Improve public facilities and infrastructure
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed:
• Inadequate public improvements
• Social and economic maladjustment
(ThirdWaterfront Expansion -
Description:
Located on a 3.456-acre parcel between the Hyatt Regency and the Hilton hotels, a future Waterfront
phase calls for an additional, third hotel of about 300 rooms. Currently there are interim uses on the site:
tennis courts, gazebo,parking and a large tent used for conferences and community meetings.
Action:
Staff will work with the developer to ensure it proceeds in a timely manner pursuant to the existing DDA.
Expenditures:
None anticipated at this time.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed:
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 11 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
The Strand • 14 1Project
Description:
Over a period of years the Redevelopment Agency assembled
several small lots in the downtown and proposed a mixed use P"
commercial and hospitality (hotel or timeshare) uses that may �E ..
include theaters, restaurants/cafes, retail and a specialty market
Escrow closed on June 25, 2004, conveying the Agency properties
to CIM group for the Strand project. The project encompasses 3.97
acres (including the Fifth Street right of way) and includes four
separate buildings ranging in height from two to four stories with
not more than 227,000 gross square feet of floor area. Uses includeM1
between 100,000 and 110,000 square feet of commercial space and
a hotel with between 140 to 152 rooms. Of the commercial space, up to 40,000 square feet may be
devoted to restaurant uses and a minimum of 28,000 square feet will be devoted to office uses. Parking
will be provided in two levels, subterranean parking garage accessed from Sixth Street with
approximately 500 spaces. A Community Facilities District was formed in 2004 that will enable the
issuance of bonds to fund public improvements associated with the project.
Action:
The Agency is assisting the developer with the issuance of a$15 million CFD bond.
Expenditures:
During the five-years,the Agency anticipates reimbursing the developer approximately$2.3 million of its
$7.9 million developer advance obligation. Project-generated tax revenues will offset these costs. In
addition, a second$250,000 commitment payment for the additional parking shall be paid to the
developer upon commencement of construction on the parking facility in 2005. The balance of the up to
$1.5 million of total cost for the additional parking shall be funded through the proposed CFD. The
Agency will commence repayment of the financed portion of the additional parking costs upon
completion of the project with up to $400,000 in payments to be made during the next Implementation
Plan period.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 12 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
'Pacific City - 31-Acre Site
Description: .
Makar Properties, owner of this key downtown property known ��'
as "Pacific City,"a unique 31-acre parcel fronting on PCH
between First and Huntington streets is well suited for an
exciting regional visitor-serving oriented project and residential Y
uses on the rear portion of the site. The approved plan includes t j�
restaurants, entertainment, retail, hospitality and residential on `f� '
the site. A multi-year construction program is anticipated. '"k�
n
Action: .:
None required. �
Expenditures:
No Redevelopment funding is anticipated for this project.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
Atlanta/Beach Project
Description:
One of the current owners is attempting to assemble the ,
remaining properties encompassing the Atlanta and Beach
Boulevard property, a severely deteriorated shopping area.
Schematic drawings have been presented to the City for a major
remodel and upgrade. It is anticipated that the Redevelopment
Agency will be an active participant in facilitating the
redevelopment of this center.
F4
S
Action:
Continue to monitor the feasibility of redeveloping this center.
Expenditures:
None are anticipated at this time.
Redevelopment Agency of the 13 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
iEdinger Corridor . -
Description:
The Edinger Corridor Specific Plan No.14 covers an area along Edinger Avenue between Beach
Boulevard and Goldenwest Street,and most of the Huntington Center Redevelopment sub-area. It
surrounds the Crossings at Huntington Specific Plan, SP13, and North Huntington Center Specific Plan,
SP1. The intent of this plan is to provide a more cohesive planning effort between Beach Boulevard to
the commercial properties at Goldenwest and Edinger, and northerly towards McFadden. The plan has
evaluated the land use, zoning, and proposes to improve the circulation, ingress/egress, and new
development opportunities in the area.
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CamrMraltl/YrCuhiN i � C � ...
NWII.Puah'�„�
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tl Edinger Corridor Specific Plan Boundary
Not a Pert(North lluntington Center Speciryc Flan&The Crossings at Huntington Beach Specitk Plan)
Huntington Beach Redevelopment Project
Huntington Center Subarea Redevelopment Project Area
Overlayed with Specific Plan Area
Redevelopment Agency of the 14 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Action:
Approve the Edinger Corridor Specific Plan No. 14 and implement public improvements programs.
Expenditures
During the five-year period, it is anticipated that the Agency will make expenditures on public
improvements in the Edinger Corridor area. However,these amounts will not be determined until after
the Edinger Corridor Specific Plan No.14 is approved.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Encourage the cooperation and participation of residents,businesses,business persons,public
agencies, and community organizations in the redevelopment/revitalization of the project area
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed.
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
Huntington
Description:
Formerly known as the Huntington Beach Mall,ownership of this 63-acre regional site changed hands in
late 1999 with Ezralow Retail Properties becoming the new owner,teaming with J.h Snyder Company.
Plans for the new center include an entertainment/retail focus. Century Theaters will occupy an all-
stadium 5,000-seat 20-screen cinema complex that will anchor the transformation of the Mall into an
open-air entertainment/life-style center renamed as "Bella Terra". Bella Terra will follow an upscale
Northern Italian village theme, incorporating fountains, courtyards, and garden areas into a great space for
people of all ages. The new project will total almost 1 million square feet. Through the Owner
Participation Agreement, approved on October 2, 2002 between Huntington Center Associates and the
RDA,the Redevelopment Agency's financial contribution is limited to $16,750,000, if the site included
the Wards parcel and$15 million without. The Wards parcel, under separate ownership, is not yet
included in the redevelopment of the mall. The Agency's obligation will be reimbursed to the developer
over 20 years from site-generated Tax Increment and Sales Tax. The Agency's reimbursable costs are for
the following activities: demolition, clearance, site preparation,public improvements, utilities&
facilities, and acquisition of the land and easements. The interest rate on the Developer Advance has not
been fixed since a Community Facilities District was formed issuing bonds at a lower interest cost. The
Agency may share in future project revenues of 20%of the adjusted gross project revenues if a certain
benchmark is achieved. Project completion on the Ezralow development is anticipated by the third
quarter of 2005.
Action:
Continue to monitor the progress of the completion of the redevelopment of the Ezralow portion. Work
to encourage the redevelopment of the Wards parcel in an integrated manner. The Developer Advance
payments will need to be calculated and made on an annual basis.
Redevelopment Agency of the 15 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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11
Expenditures
Through its construction costs,as the Wards parcel is not included in the renovation,Huntington Center
Associates will have advanced $15 million to the Agency, which created the"Developer Advance" loan
to the Agency. During the next five-year period,the Agency anticipates reimbursing the developer$5.6
million contingent upon project performance.
Pfan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
,Beach/Edinger Project
Description:
In the Huntington Center sub-area, the Redevelopment Agency owns
1.3-acres that is being held for possible development after the
proposed Edinger Corridor Specific Plan is approved and after Bella ''
Terra(Huntington Center) is closer to completion. ,.
Action:
Hold the property until the Edinger Corridor Specific Plan is
completed. When feasible, evaluate proposals for development.
Continue with annual maintenance of this vacant land.
Expenditures �.
�s r
None are anticipated at this time.
Redevelopment Agency of the 16 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Redevelop underutilized parcels
• Remove impediments to development
Conditions of Blight Addressed:
• Inadequate public improvements
,�ypress and Elm
Description:
The .262-acre parcel owned by the Redevelopment H
Agency is proposed to be sold to the adjacent
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property owner to enlarge the capacity of the parking R
area. A new owner has purchased both properties
and negotiations have not commenced. Ee
Action:
Prepare an Owner Participation Agreement when _'
timely and convey the property. `
Expenditures: + ;
None.
t
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting '
conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Inadequate public improvements
Description:
Although this project was completed in 1992, there are two activities that need monitoring: 1)the
Abdelmuti Development Company's loan payments of$28,375 are obligated to be made monthly to the
Agency and will continue to February 2010 and 2)possible Agency office rent subsidies may be due to
the developer. Corrently, the building is fully leased and no subsidy payments are being made.
Redevelopment Agency of the 17 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Action:
Monitor the office tenant leases. ;
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Expenditures:
Rental subsidies is a contingent obligation, with $90,000 per year
11
3
budgeted, the total of $450,000 is budgeted for this obligation
over the five years.
1 �
12
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
Dealer Sign
The Redevelopment Agency approved a$474,000 loan to the Huntington Beach Auto Dealers
Association to improve the electronic reader board sign located near the 405 Freeway and Bella Terra.
Action:
Monitor the renovation of the reader board sign.
Expenditures:
None-the loan was made during the previous five-year period.
Plan Objectives Addressed:
• Expand commercial base of Project Area
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
Development Pr
Beyond those projects identified above,the Agency is also pursuing other possible economic
development projects throughout the Project Area. Because these projects are still in a formative stage,
specific project parameters and any subsidies are not yet available. However, all projects under the
Redevelopment Agency of the 18 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Agency's economic development program are oriented towards the elimination of Project Area blighting
conditions,expansion of the community's economic base, and other Redevelopment Plan goals.
Action:
Monitor blighting conditions on an ongoing basis and evaluate economic development projects as they are
proposed.
Expenditures:
During the five-year period, the Agency has allocated approximately$2.5 million to implement economic
development programs, contingent upon specific project needs.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
Improvements
The Agency is interested in improving the public infrastructure within the project area. Possible projects
in this category may include the improvements to Main Street and needed improvements in the Oakview
sub-area. The elimination blighting conditions,expansion of the community's economic base, and other
Redevelopment Plan goals will continue to underline the intent of these projects.
Expenditures:
During the five-year period,the Agency has allocated approximately$7.5 million to implement public
improvement projects.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Improve public facilities and infrastructure
• Remove impediments to development
Conditions of Blight Addressed.
• Age, obsolescence and deterioration
• Inadequate public improvements
Redevelopment Agency of the 19 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Program Time Frame Goals* Blight Estimated Cost
Mitigated*
Waterfront—Hyatt Regency Ongoing A,B,C,F,J,K d,e $10 million to repay Agency Loan for project
development
Waterfront—Residential Ongoing A,C,D,E,H,I,J,K A,b,c,d,e None
Waterfront—Third Hotel N/A A,B,C,F,J,K d,e None
The Strand Ongoing A,B,C,F,J,K a,b,c,d,e $2.3 million to repay Agency Loan for project
development
Pacific City Multi-year A,B,C, F,J,K a,b,c,d,e Undetermined
Atlanta/Beach Undetermined A,B,C,F,H,J a,b,d Undetermined
Edinger Corridor Specific Plan Area Ongoing A,B,C,F,G,H,J,K a,b,d,e Undetermined
Huntington Center—Bella Terra Ongoing A,B,C, F,J,K a,b,d,e $5.6 million to repay Developer Advance for
project development
Beach/Edinger Project 4 years A,B,C,F,J,K d Undetermined
Cypress&Elm 2 years A,B,C,J a,d None
Oceanview Promenade Ongoing A,B,C,D,H,J a,b,c,d,e $450,000
Auto Dealer Sign 1 year B a,b None(Loan in prior period)
Economic Development Ongoing A,B,C,F,H,J a,b,d,a $2 million
Public Improvements Ongoing A,B,C,D,E,J a,b,d $10 million
TOTAL
*Note.- For the completed projects, although the ongoing activity may now be only debt repayment, the Goals & Blight Mitigated mentioned here
are for the project as when first implemented. Seethe Letter references expanded descriptions on the next page.
Redevelopment Agency of the 20 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
GOALS OF THE REDEVELOPMENT PLAN
A) Eliminate and prevent the spread of conditions of blight including:underutilized properties and deteriorating buildings,incompatible and uneconomic land uses,
deficient infrastructure and facilities,obsolete structures,and other economic deficiencies in order to create a more favorable environment for commercial,office,
industrial,residential,and recreational development.
B) Expand the commercial base of the Project Area.
C) Improve public facilities and public infrastructure.
D) Improve inadequate drainage infrastructure.
E) Improve and/or provide electric,gas,telephone,and wastewater infrastructure to both developed and undeveloped properties within the Project Area.
F) Promote local job opportunities.
G) Encourage the cooperation and participation of residents,businesses,business persons,public agencies,and community organizations in the
redevelopmcnt/revitalization of the Project Area.
H) Implement design and use standards to assure high aesthetic and environmental quality,and provide unity and integrity to developments within the Project Area.
1) Address parcels of property that are: of irregular form and shape,are inadequately sized for proper usefulness and development,and/or are held in multiple-
ownership.
J) Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved
infrastructure and public facilities.
K) Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources.
L) Promote the rehabilitation of existing housing stock.
M) Increase,improve,and preserve the community's supply of housing affordable to very low,low and moderate-income households.
CONDITIONS OF BLIGHT(SIMPLIFIED)
a) Defective design&character
b) Age,obsolescence&deterioration
c) Irregular lot subdivision
d) Inadequate public improvements
e) Social&economic maladjustment
Redevelopment Agency of the 21 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Affordable Housing Programs - Housing Compliance Plan
During the next five years, the Agency anticipates completing 10 projects that will produce approximately
439 new construction and 209 substantially rehabilitated units,totaling 648 affordable units. At the end
of this Implementation Plan period,the total number of affordable units developed by the Agency will be
1,857.
Table III below lists the housing projects to be undertaken or completed during the next five years. These
projects are more fully described in the companion document,the Ten Year Housing Compliance Plan
2005-14. All of the Agency housing programs to meet its requirements pertaining to this Five Year
Implementation Plan are contained in the Compliance Plan.
The redevelopment goals of all of the housing projects are to either: a)promote the rehabilitation of
existing housing stock or b)to increase, improve, and preserve the community's supply of housing
affordable to very low, low and moderate-come households.
Table III
Affordable Housing Projects, Planning Period
Project Time Frame Funding Sources Estimated Project Cost
Beachview Villas SRO 1 year No Agency Assistance
Citywide Acquisition& Continuous Set Aside $3,750,000
Rehabilitation
Collette's Children's Home 1 year Set-Aside $400,000
Ellis/Patterson 2 years HOME/Set Aside $415,000
Habitat for Humanity— 1 year HOME $194,400
Delaware
Housing Rehabilitation Continuous CDBG $500,000
Loans
Huntington Gardens 5 years No Agency Assistance
Oakview Rehab Continuous HOME/Set-Aside $1,400,000
Pacific City Residential 3 years Unknown
Studios at Center 3 years Set-Aside $4,000,000
Five-Year Budget
The Tax Increment revenue of$10.7 million forecasted for 2004-2005, anticipates a number of key
projects being completed,namely the Waterfront residential component,the Strand Project(CIM), and
Bella Terra. Looking forward, a conservative 2%increase is applied to estimate Tax Increment for the
following fiscal years. The budget also contains other project revenues, including interest earnings,rental
income,proceeds from property sold and transient occupancy tax reimbursements. Expenditures include
project costs,bond debt service, loan repayments,pass-through payments, and other administrative costs.
Redevelopment Agency of the 22 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
The five-year total estimate for Agency expenditures is $97 million for non-housing programs and over
$11.5 million for affordable housing programs. It could be estimated that the non-housing cash balance
after five years would be approximately $2.5 million and the housing set-aside cash balance is estimated
at$2 million.
Estimated Five-Year Budget
Non-Housing
2004105 1 2005106 2006107 1 2007108 1 2008109 5 Year Total
EST.BEGINNING CASH BALANCE $1,826,549 1 $11,244,1961 $6,920,638 1 $5,170,058 1 $3,537,862
REVENUE
Total Tax Increment
Main Pier 7,569,448 8,286,837 8,452,573 8,621,625 8,794,057 41,724,540
Huntington Center 1,513,680 2,268,954 3,064,333 3,125,619 3,188,132 13,160,717
Oakview 646,148 659,071 672,252 685,697 699,411 3,362,578
Talbert Beach 481,713 491,348 501,175 511,198 521,422 2,506,856
Yorktown Lake 463,964 473,244 482,708 492,363 502,210 2,414,489
Tax Increment(100%) 10,674,953 12,179,452 13,173,041 13,436,502 13,705,232 63,169,180
Tax Increment Less 20%Housing Set Aside 8,539,962 9,743,562 10,538,433 10,749,202 10,964,186 50,535,344
Other Revenue
Interest Earnings 37,911 140,372 243,538 220,204 227,147 869,172
Main Pier 17,524,624 3,722,517 3,240,060 3,258,034 3,276,451 31,021,686
Huntington Center 6,924 607,093 607,093 607,093 607,093 2,435,296
Oakview 0 0 0 0 0 0
Talbert Beach 0 0 0 0 0 0
Yorktown Lake 0 0 0 0 0 0
Sub Total Other Revenue 17,569,459 4,469,982 4,090,690 4,085,330 4,110,691 34,326,153
TOTAL REVENUE 26,244,412 16.649.434 17,263,712 17.521.S32 12,815,222 2ZA21334
EXPENSES
Debt Service Fund
Debt Service Fund 16,064,815 16,087,318 16,191,568 16,298,805 16,409,129 81,051,636
Operating Expenses 663,950 693,673 724,744 757,223 791,177 3,630,767
Projects Fund
Public Improvements 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000
Economic Development Activities 500,000 500,000 500,000 500,000 500,000 2,500,000
Abdelmuti Contract 90,000 90,000 90,000 90,000 90,000 450,000
ERAF Repayment 0 731,000 0 0 0 731,000
Housing Fund Repayment 0 1,363,000 0 0 0 1,363,000
Trustee Fees 8,000 8,000 8,000 8,000 8,000 40,000
Total Projects Fund 2,098,000 4,192,000 2,098,000 2,098,000 2,098,000 12,584,000
TOTAL EXPENSES S18.826.765 520.972.992 $19.014.312 519.154= 519.298= 597.266A02
NET INCOME $9,417,647 ($4,323,558) ($1,750,581) ($1,632,196) ($1,482,382) 228,931
EST.ENDING CASH BALANCE $11,244,196 $6,920638 $5,170,058 $3,5377862 $2055,480
Redevelopment Agency of the 23 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Five-Year Budget
Housing Set-Aside
200410 1 2005106 1 2006107 1 2007108 2009109 5 Year Total
EST.BEGINNING CASH BALANCE 2.993,675 3,577,867 6,050,686 3,453,601 4,932,708
REVENUE
Total Tax Increment
Tax Increment(20%) 2,134,991 2,435,890 2,484,608 2,534,300 2,584,986 12,174,776
SE Area Tax Increment(20%) 0
Interest 67,358 84,964 154,665 190,956 228,961 726,903
ERAF Repayment from 80% 0 731,000 0 0 0 731,000
Payment from Main-Pier 0 1,363,000 0 0 0 1,363,000
Total Revenue 2,202,348 4,614,855 2,639,273 2,725,256 2,813,947 14,995,680
EXPENSES
Projects
Property Tax Collection Charge 10,563 10,563 10,563 10,563 10,563 52,815
Rental Housing Acquisition 750,000 750,000 750,000 750,000 750,000 3,750,000
Collette's Children's Home 400,000 0 0 0 0 400,000
Ellis/Patterson 0 415,000 0 0 0 415,000
Oak view Rehab 280,000 280,000 280,000 280,000 280,000 1,400,000
Studios At Center 4,000,000 0 4,000,000
Repayment to Agency 0 500,000 0 0 0 500,000
Sub-Total 1,440,563 1,955,563 5,040,563 1,040,563 1,040,563 10,517,815
Operating Expenses
Operating Expenses 177,593 186,473 195,796 205,586 215,865 981,313
Total Expenses 1,618,156 2,142,036 5,236,359 1,246,149 1,256,428 11,499,128
NET INCOME 584,192 2,472,819 2,597,086 1,479,107 1,557,519 3,496,552
EST.ENDING CASH BALANCE 3,577,8671 6,050,6861 3,453,601 4,932,708 6,49Q,226
Redevelopment Agency of the 24 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
THE TEN YEAR
HOUSING COMPLIANCE PLAN 2005-14
THE HUNTINGTON BEACH PROJECT
("MERGED PROJECT AREA")
TEN YEAR
HOUSING COMPLIANCE PLAN 2005-14
HUNTINGTON BEACH PROJECT
("MERGED PROJECT AREA")
Y
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REDEVELOPMENT AGENCY
OF
THE CITY OF HUNTINGTON BEACH
Department of Economic Development
November 15, 2004
City of Huntington Beech
Redevelopment Agency
ACKNOWLEDGEMENTS
0
Redevelopment A2ency
Chair
CATHY GREEN
Vice-Chair
JILL HARDY
Members
CONNIE BOARDMAN
GIL COERPER
DEBBIE COOK
DAVE SULLIVAN
40
PENNY CULBRETH-GRAFT
Executive Director
WILLIAM P. WORKMAN
Assistant Executive Director
DAVID C.BIGGS
Deputy Executive Director
DEPARTMENT OF ECONOMIC DEVELOPMENT—CONTRIBUTING STAFF
Gustavo Duran,Housing and Redevelopment Manager
Carol Runzel, Assistant Project Manager
Steve Holtz,Assistant Project Manager
Luann Brunson, Senior Administrative Analyst
Terri King,Development Specialist
TABLE OF CONTENTS
Introduction.................................................................................................................................................. 1
Legal Requirements for Compliance Plans.............................................................................................. 1
Contents of the Compliance Plan............................................................................................................. 1
Purpose..................................................................................................................................................... 2
Methodology and Data Compilation........................................................................................................ 2
Provision of Affordable Housing to Date..................................................................................................... 2
Pre-1994 Activities................................................................................................................................... 2
Post-1994 Activities to Date(January 1994-September 2004)................................................................4
Policy Declaration Regarding Unmet Need............................................................................................. 8
Projected Production Housing Needs........................................................................................................... 9
Proposed Affordable Housing Projects(2005-14)................................................................................. 10
Projected Production Housing Surplus .................................................................................................. 11
Estimated Housing Program Resources................................................................................................. 11
Potential Sites for Future Production Housing....................................................................................... 13
ImplementationTimeline........................................................................................................................... 13
CityHousing Element Consistency............................................................................................................ 13
Housing Unit Estimates Over the Duration of the Agency's Project Area(1982-2024) ........................... 14
Introduction _
This document is the Redevelopment Agency's Ten-Year Affordable Housing Compliance Plan 2005-14,
("Compliance Plan") for the Huntington Beach Redevelopment Project ("Merged Project Area"). The
Compliance Plan is an economic development tool to assist the Agency in establishing its affordable
housing goals and implement its programs over the next ten-year period. The goals are established by
reviewing housing needs, especially for very low, low, and moderate-income households. The last
Compliance Plan was adopted on October 14, 1994, approximately two years before the 1996 merger of
the Agency's five project areas into the Merged Project Area. The approved Redevelopment Plan
provides the legal framework for the Agency's affordable housing programs. This Compliance Plan is
incorporated by reference in the Agency's Five Year Implementation Plan 2005-09, adopted
simultaneously as companion documents. This Housing Compliance plan expires on December 31, 2014.
Legal Requirements for Compliance Plans
Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the California
Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("Law"), this
Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low,
low, and moderate-income housing units will be produced as a result of new construction or substantial
rehabilitation!
Contents of the Compliance Plan
This Compliance Plan has been developed to accomplish the following goals:
• To account for the number of affordable dwelling units,either constructed or substantially rehabilitated,in
the Project Area since its adoption;
• To review affordable housing production needs and activities over the past ten years,pursuant to the prior
1994 Affordable Housing Compliance Plan;
• To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated
between 2005-14 and over the duration of the Redevelopment Plan;
• To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the
Agency between 2005-14;
• To project the availability of City/Agency and other revenue sources for funding affordable housing
production;
• To identify implementation policies/programs and potential sites for affordable housing development;
• To establish a timeline for implementing this Compliance Plan to ensure that the requirements of Section
33413 are met during the 10-year period between 2005-14;and
• To review the affordable housing goals,objectives,and programs contained in the February 1999 City of
Huntington Beach Housing Element("Housing Element")and to confirm that this Compliance Plan is
consistent with the Housing Element.
' Since 1994, Section 33413 of the Law defines"substantial rehabilitation"as"rehabilitation,the value of which
constitutes 25 percent of the after rehabilitated value of the dwelling,inclusive of the land value." Prior to 1994,this
definition did not exist,and the definition of substantial rehabilitation was left to the discretion of redevelopment
agencies.
Also, Section 50052.5 of Health and Safety Code defines affordable housing cost as:
-Very Low-Not more than 30%of 50%of the County median household income.
-Low-Not more than 30%of 70%(or 60%for rental projects)of the County median household income.
-Moderate-Not more than 35%of 110%(or 30%of 120%for rental projects)of the County median household
income.
Redevelopment Agency of the 1 Affordable Housing Compliance Plan
City of Huntington Beach
Purpose
Since 1976, redevelopment and community development agencies have been required to assure that at
least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable
costs to households of very low, low, or moderate income. Of this 30%,not less than 50%are required to
be available at affordable costs to very low-income households. Further, for all units developed by
entities other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated
dwelling units within the Project Area be made available at affordable costs to low or moderate income
households. Of these, not less than 40% of the dwelling units are required to be available at affordable
costs to very low-income households. These requirements are applicable to housing units as aggregated,
and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so
required by an agency.
In 1994 the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how
the agency would achieve the aforementioned affordable housing mandates. Known as Housing
Compliance Plans, the Law also requires agencies to update their plans every five years, meaning this
plan would need to be updated by the end of 2009.
Methodology and Data Compilation
This Compliance Plan takes into account all residential construction or substantial rehabilitation that has
occurred within the Project Area since its adoption in order to determine affordable housing production
needs; it accounts for existing residential construction and substantial rehabilitation, and includes
projections of new dwelling units that may be constructed or substantially rehabilitated during a ten year
planning period.
It should be noted that neither the existing housing stock nor projections for future dwelling units in the
Project Area include any units to be developed by the Agency. The Agency does not anticipate directly
developing or substantially rehabilitating any dwelling units that would trigger the 30% affordable
housing requirement within the ten-year planning period of this Compliance Plan. However, the Agency
will continue to cooperate with and provide assistance and incentives to private developers in order to
meet affordable housing production goals.
Section 33413(b) provides that redevelopment agencies shall ensure that 15% of the non-agency
developed or substantially rehabilitated units created within its jurisdiction are affordable to very low,
low, and moderate income households. The Law does not elaborate what constitutes the "Agency's
jurisdiction," and there are varying legal interpretations of this definition. Agency legal counsel has
opined that the Agency's jurisdiction is defined as the units for which the Agency has been involved
through direct financial or other assistance, while a more conservative interpretation defines the Agency's
jurisdiction as all units created in the Project Area,whether or not the agency is involved.
This Compliance Plan applies the more conservative definition of the Agency's jurisdiction (basing
production requirements on the new construction and substantial rehabilitation activity in the Project
Area)in order to determine the maximum number of production units that could be required by Law.
Provision of Affordable Housing to Date
Pre-1994 Activities
Prior to the commencement of the ten-year production requirement in 1994, a total of 1,254 units were
constructed in the Project Area, including 164 units developed by the Agency(Emerald Cove project) and
1,090 units developed by other entities. Review of City building permit data indicates that no units had
Redevelopment Agency of the 2 Affordable Housing Compliance Plan
City of Huntington Beach
been substantially rehabilitated prior to 1994. Pursuant to the Agency's affordable housing production
mandates, at least 30% of the Agency developed units and l 5% of the privately developed units, or 213
units in total, are required to be restricted for affordable households. Of these, 85 units are to be reserved
for very low-income households.
Prior to 1994, the Agency met a portion of the 213-unit production-housing requirement with the
construction of the 164-unit Emerald Cove project. This project consists entirely of 164 very low-income
units. Two additional projects developed prior to 1994 produced a total of 92 affordable units (because
these projects are located outside of the Agency's project area, only 46 units can be credited towards
fulfilling the Agency's housing production requirements.
The pre-1994 housing production activities and production requirements are summarized in Tables l(a)
and(b)below.
Table 1 a
Units Developed Inside Project Area(Pre-1994)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Agency Developed
1986 Emerald Cove Senior Apartments - 164
Subtotal - 164
Non-Agency Developed
Private Housing Production - 1,090
Subtotal - 1,090
Total Units Developed Inside Project Area - 1,254
Low/Mod-Income Production Requirement - 128
Very Low-Income Production Requirement - 85
Total Production Requirement(Pre-1994) - 213
Table 1 b
Affordable Units Developed (Pre-1994)
Status of Affordable Housing Production Requirement
ery ow- Low/Mod-
Income Income Total Units
Credits Credits Total Credits Produced
Inside Proiect Area
1986 Emerald Cove Senior Apartments 164 - 164 164
Subtotal 164 - 164 164
Outside Proiect Area
1993 Brisas Del Mar - 22 22 44
1993 Five Points Senior Apartments 16 8 24 48
Subtotal 16 30 46 92
Total Affordable Units Developed 180 30 210 256
Production Housing Requirement 85 128 213
Production Housing Surplus/Deficit(Pre-1994) 95 (98) (3)
Redevelopment Agency of the 3 Affordable Housing Compliance Plan
City of Huntington Beach
This shows that as of 1994, at the very low-income level, the Agency had a surplus of 95 units. At the
low/moderate-income level, the Agency had a deficit of 98 units. Overall, the Agency had a deficit of 3
affordable units.
The Law does not stipulate a time frame for meeting production-housing deficits incurred prior to 1994.
(After 1994, production housing goals must be met within each ten-year planning period.) As such, the
Agency will first count its production program towards achieving production goals in each ten-year
planning period, with any surplus units credited towards the pre-1994 low-income level deficit. As a
policy, it is the Agency's intention to meet all production housing production needs during the duration of
the Redevelopment Plan.
Post-1994 Activities to Date (January 1994-September 2004)
Over the last Ten-Year Housing Compliance Plan period (1994-2004), the Agency completed 28
affordable housing projects, producing a total of 930 units at a total cost to the Agency of$16,577,813.
These projects produced a total of 307 homeownership units and 623 rental units, as briefly described
below.
• Ash Street Condos: This project was built in 2002 as new affordable ownership housing for median-
income families by Westgate Homes. As part of the City's Inclusionary Housing Program,all six,three-
bedroom homes will remain affordable for 60 years.
• Bowen Court: The Agency partnered with Merit Housing and
the Related Companies to build Bowen Court Senior Apartments '
in 2002,which consists of 20 very-low income apartments for
seniors. Affordability for this project is guaranteed for a l
minimum of 60 years. ,.
• Bridges Apartments: This 80-unit apartment complex was
purchased and rehabilitated in 2002 with financial assistance from
the Redevelopment Agency and from local housing developers
through the City's Inclusionary Housing Program. All units will
remain affordable for very low and low-income households for 30
years.
• Cape Ann: As part of the City's Inclusionary Housing Program, Cape Ann was built by WL Homes in
2000 to satisfy the affordable housing obligations of various development companies that had created
market rate homes in Huntington Beach. A total of 146 detached homes were sold to moderate-income
buyers at affordable prices and will remain affordable for 30 t ��
years.
• The Fountains Senior Apartments: Completed in 2003 by
FountainGlen Properties,the Fountains Senior Apartments
include 80 affordable units among 271 total units. In exchange
for financial assistance from the Agency, units for very low and
low-income seniors will remain affordable for 60 years.
• Habitat for Humanity—Ronald Road &Yorktown: Between
1997 and 2001 Habitat for Humanity and the Agency partnered to
build six new homes, consisting of two two-bedroom,two three-bedroom,and two four-bedroom houses,
each of which will remain affordable for very low-income households for at least 60 years.
• Hermosa Vista Apartments: The Agency partnered with Village Investments and KDF Communities in
2004 to acquire and rehabilitate the Hermosa Vista Apartments. This 88-unit complex will offer affordable
housing for very low and low-income families for 60 years.
Redevelopment Agency of the 4 Affordable Housing Compliance Plan
City of Huntington Beach
• Huntington Pointe: The Agency partnered with Village Investments
g g Y P g
and KDF Communities in 2003 to acquire and rehabilitate the
Huntington Pointe Apartments(formerly known as Quo Vadis
Apartments). This 104-unit complex features 24 studio,64 one-
bedroom,and 16 two-bedroom apartments, all of which will remain
affordable for very low and low-income households for 60 years.
• Interval House: In 2001,the Redevelopment Agency assisted Interval House acquire and rehabilitate a
six-unit apartment complex that is now used as safe housing for women and children recovering from
domestic violence. These units will remain affordable for very low-income families for 30 years.
• Orange County Community Housing: Between 1994 and 2001 the
Agency partnered with Orange County Community Housing " ° +
(OCCHC)to purchase and rehabilitate eight apartment buildings in r
the Oakview Neighborhood,making 64 units affordable for very low-
income households. Earlier projects require 30-year affordability.
Recently completed project require affordability for 60 years.
• Greystone Keys: Greystone Homes completed 23 units for ',`"
moderate-income buyers in 1998 as part of a larger community of 150
new homes. These units will remain affordable for 30 years.
• Pacific Landing: In 1998,Heritage Communities built Pacific Landing,a 29-unit residential community
that includes 5 homes affordable for moderate-income buyers. These units will remain affordable for 30
ears.
Fl
• Pacific Park Villas: The Agency partnered with Sassounian Capital °M ,� € �' ,.
Ventures to build Pacific Park Villas in 1996,a 38-unit condominium
complex. As part of this partnership,the Agency provided down
payment assistance loans to 25 moderate-income homebuyers. These
25 units have affordability requirements that will last 30 years.
• The Promenade: The Olson Company built The Promenade in 2000
to satisfy the affordable housing obligations of various development
aZ
companies that had created market rate homes in Huntington Beach. ` "
These 80 condominium units will remain affordable for moderate-income home buyers for 30 years.
• Sea Air Apartments: Formerly a flash point for many criminal
problems,including s prostitution,the owners of Sea Air
P g drug and P
Apartments received assistance from the Agency in 1996 to improve i
the property. The 25-unit apartment complex is now well maintained
and operated and will provide low-income affordable housing for 30
years. m
• Shelter for the Homeless: Between 1994 and 2002,the Agency _ „ }}
partnered with Shelter for the Homeless for three Oakview p�tuau
neighborhood rehabilitation projects,improving and making
affordable 12 two-bedroom units for very-low income families for 30 years.
• Sher Lane Apartments: Bridges America Foundation acquired and g ' ,
rehabilitated Sher Lane Apartments,a once run-down apartment
complex plagued by gangs,drugs,and other social ills. Completed in Mr,
2002,2002,this 66-unit complex consists of 33 one-bedroom and 33 two-
bedroom units that will remain affordable to very low,low,and
moderate-income households for 30 years.
• The Tides: Shea Homes completed 12 units for moderate-income
buyers in 2004 as part of a larger community of 77 new homes. These
units will remain affordable for 30 years.
• Housing Rehabilitation Loans: During the last five years, 101 loans and 9 grants were processed for low-
income residents, at a total cost of$1,769,391 using federal CDBG program funds.
Redevelopment Agency of the 5 Affordable Housing Compliance Plan
City of Huntington Beach
Table 2(b), page 7, demonstrates that at the end of the most recently completed Ten Year Plan period, the
Agency has a surplus of affordable units at both the very low-income and low/moderate-income levels.
Overall, the Agency created 322 affordable units in excess of its production housing requirement during
this period.
Table 2 a
Units Developed Inside Project Area(1994-2004)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Non-Agency Developed
1994 OCCHC Keelson 4 -
1994 Shelter for the Homeless- Barton 1 4 -
1994 Shelter for the Homeless- Keelson 4 -
1996 OCCHC Koledo 1 10 -
1996 Pacific Park Villas - 38
1997 OCCHC Koledo 2 8 -
1997 OCCHC Queens 8 -
2000 OCCHC Koledo 3 10 -
2000 OCCHC Koledo 4 10 -
2000 Plaza Almaria - 42
2001 Interval House 6 -
2001 OCCHC Koledo 5 5 -
2002 Ash Street Condos - 6
2002 Bowen Court - 20
2002 Shelter for the Homeless- Barton 2 4 -
Private Housing Production - 1,182
Total Units Developed Inside Project Area 73 1,288
Low/Mod-Income Production Requirement 7 116
Very Low-Income Production Requirement 4 77
Total Production Requirement(1994-2004) 11 193
Redevelopment Agency of the 6 Affordable Housing Compliance Plan
City of Huntington Beach
Table 2 b
Affordable Units Developed (1994-2004)
Status of Affordable Housing Production Requirement
Low/Mod-
Very Low- Income Total Units
Income Credits Credits Total Credits Produced
Inside Project Area
1994 OCCHC Keelson 4 4 4
1994 Shelter for the Homeless-Barton 1 4 4 4
1994 Shelter for the Homeless-Keelson 4 - 4 4
1996 OCCHC Koledo 1 10 - 10 10
1996 Pacific Park Villas 25 25 25
1997 OCCHC Koledo 2 8 - 8 8
1997 OCCHC Queens 8 - 8 8
2000 OCCHC Koledo 3 10 - 10 10
2000 OCCHC Koledo 4 10 - 10 10
2001 Interval House 6 - 6 6
2001 OCCHC Koledo 5 5 - 5 5
2002 Ash Street Condos - 6 6 6
2002 Bowen Court 20 - 20 20
2002 Shelter for the Homeless-Barton 2 4 - 4 4
Subtotal 93 31 124 124
Outside Project Area
1994 OCCHC PSS 5 - 5 9
1996 Sea Air Apartments 18 18 36
1997 Habitat for Humanity-Ronald Rd. 2 - 2 3
1998 Huntington Village Senior Apartments 12 9 20 40
1998 Pacific Landing - 3 3 5
1998 Greystone Keys - 12 12 23
2000 Cape Ann - 73 73 146
2000 Promenade - 40 40 80
2001 Habitat for Humanity-Yorktown 2 2 3
2002 Bridges Apartments-Nichols 2 39 40 80
2003 Huntington Pointe 11 42 52 104
2003 Scattered Planning Units(Holly&Huntington) 2 2 3
2003 Sher Lane Apartments 11 22 33 66
2003 The Fountains Senior Apartments 28 13 40 80
2004 Hermosa Vista Apartments 13 31 44 88
2004 Main Place Apartments 14 - 14 27
2004 The Tides - 6 6 12
Subtotal 96 307 403 805
Total Affordable Units Developed 189 338 527 929
Production Housing Requirement 82 122 204
Production Housing Surplus/Deficit(1994-2004) 107 215 322
Redevelopment Agency of the 7 Affordable Housing Compliance Plan
City of Huntington Beach
Policy Declaration Regarding Unmet Need
According to Health & Safety Code Section 33334.4(a), the Agency must allocate Housing Set-Aside
funds proportionately to unmet housing needs for very-low and low-income persons as determined in the
City's Housing Element. And according to Health and Safety Code Section 33334.4(b), Housing Set-
Aside funds shall assist housing that is available to all persons regardless of age in at least the same
proportion as the population under the age of 65.
Based upon the City's current Housing Element and according to the Southern California Association of
Government's ("SCAG") Regional Housing Needs Assessment ("RHNA"), Table 3 below shows the
target percentages for each income category. The Agency will pursue these housing needs throughout the
City.
Table 3
Comparison of Regional Housing Growth Needs(RHNA,2005 Targets)*
and Agency Affordable Units Produced(as of 2004)
Income Citywide RHNA Affordable RHNA Agency Units
Category Targets Targets Only Produced
Units Percent of Units Percent of Units Percent of
Total Total Total
Very Low 388 19% 388 37% 370 50%
Low J 255 13% 255 24% 174 24%
Moderate 400 20% 400 38% 194 26%
Above Moderate 972 48% 1 0 0% 0 0%
Total 2,015 100% 1,043 100% 737 100%
*7.5-year planning period
According to the 2000 Census, the City of Huntington Beach had a general population of 189,594 of
which 169,938 are under the age of 65, which comprises of 89.6% of the population. Table 4 below
shows the Agency's distribution of affordable units produced by age.
Table 4
Distribution of Agency Affordable Units Produced for Seniors and Non-Seniors*
Agency Affordable
Population City Po ulation Units Produced
Units Percent of Units Percent of
Total Total
Seniors 20,016 11% 140 19%
Non-Seniors 169,938 89% 597 81%
Total 189,954 1 100% 737 1 100%
*Census population data reflects seniors as 65 and older. Agency senior projects define
seniors as 55 and older.
Redevelopment Agency of the 8 Affordable Housing Compliance Plan
City of Huntington Beach
Projected Production Housing Needs
Estimates for the total number of dwelling units to be constructed within the Project Area,both during the
current Ten Year Plan period (2005 through 2014) and over the life of the Redevelopment Plan (1982
through 2024), were generated by the Agency based on a review of infill and build out opportunities in
the Project Area.
As shown in Table 5(a)below, the City estimates that 1,451 units will be developed and 150 units will be
substantially rehabilitated during the next ten years. The Agency anticipates that all of these units will be
developed by entities other than the Agency. Applying the 15% production requirement would create an
affordable housing production obligation of 240 units, 40% of which, or 96 units, must be affordable to
very low-income households.
Table 5 a
Units Anticipated to be Developed Inside Project Area(2005-2014)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Non-Apency Developed
Acquisition & Rehab (200 Units) 100 -
Oakview Rehab 50 -
Pacific City Residential - 516
Private Housing Production - 500
Sea Colony(Hyatt Residential) - 78
Sea Cove (Hyatt Residential) - 106
Studios at Center SRO (100% credit) - 251
Total Units Developed Inside Project Area 150 1,451
Low/Mod-Income Production Requirement 14 131
Very Low-Income Production Requirement 9 87
Total Production Requirement(2005-2014) 23 218
Redevelopment Agency of the 9 Affordable Housing Compliance Plan
City of Huntington Beach
Table 5
Affordable Units Developed(2005-2014)
Status of Affordable Housing Production Requirement
Very Low- Low/Mod- Total Units
Income Credits Income Credits Total Credits Produced
Inside Project Area
Oakview Rehab 50 - 50 50
Pacific City Residential 39 39 78 78
Studios at Center SRO 124 127 251 251
Subtotal 213 166 379 379
Outside Project Area
Acquisition&Rehab 50 50 100 100
Beachview Villas SRO 24 30 53 106
Collette's Children's Home 2 2 4
Ellis/Patterson 2 - 2 3
Habitat for Humanity-Delaware 1 - 1 1
Huntington Gardens 93 - 93 185
Private New Construction 4 6 10 20
Subtotal 600 418 1,018 1,177
Total Affordable Units Developed 600 418 1,018 1,177
Production Housing Requirement 96 1" 240
Production Housing Surplus/Deficit(2005-2014) 504 273 777
Proposed Affordable Housing Projects (2005-14)
Over the current Ten-Year Housing Compliance Plan period (2005-2014), the Agency anticipates
completing 10 affordable housing projects, producing a total of 1,177 units. These projects are briefly
described below.
• Oakview Rehabilitation: In parternship with affordable housing nonprofit organizations,the Agency will
continue acquiring and rehabilitating properties in the Oakview neighborhood. Over the current plan
period,the Agency will seek to develop 50 units for very low-income families.
• Pacific City Residential: The proposed Pacific City commercial and residential project in the Downtown
Sub-Area includes 516 homes. To satisfy the Agency's affordable housing obligations incurred by this
project,the developer will create 78 affordable units for very low,low,and moderate-income families.
• Studios at Center SRO: The Agency has a Disposition and Development Agreement for the construction
of a Single Room Occupancy affordable housing project on Center Avenue near Gothard Street. The
project is currently anticipated to include 251 units for very low and low income residents.
• Acquisition and Rehabilitation: The Agency will continue to pursue acquisition and rehabilitation
opportunities Citywide over the plan period as apartment buildings become available for sale. The
Agency's goal for the next 10 years is to develop 100 units for very low and low-income families.
• Beachview Villas SRO: Currently under construction on Ellis Avenue,near Beach Boulevard,Beachview
Villas SRO is a 106-unit Single Room Occupancy project for very low and low-income residents. The
project is anticipated to be completed in early 2005.
• Collete's Children's Home: The Agency recently executed an Owner Participation Agreement to finance
the acquisition and rehabilitation of a 4-unit apartment complex in the Oakview neighborhood. When
completed,this property will provide substance abuse recovery assistance in addition to affordable
transitional housing for very low-income families.
Redevelopment Agency of the 10 Affordable Housing Compliance Plan
City of Huntington Beach
• Ellis/Patterson: The Agency recently acquired a vacant residential parcel at the corner of Ellis Avenue
and Patterson Street and anticipates developing the site as affordable homeownership housing for very low-
income families.
• Habitat for Humanity—Delaware: The Agency recently acquired a vacant residential parcel at the
corner of Delaware Street and Yorktown Avenue and executed a Disposition and Development Agreement
with Habitat for Humanity to develop a single-family residence on the site for a very low-income family.
The project will be funded using federal HOME program funds and is anticipated to be completed in early
2005.
• Huntington Gardens: Huntington Gardens is a 185-unit Section 8 project-based seniors affordable
housing project formerly known as Wycliffe Gardens. Although the Section 8 contract recently expired,
the owner has continued the federal affordable housing program while attempting to sell the property. The
Agency anticipates that over the current plan period,there will be an opportunity to participate in the
acquisition and rehabilitation of the property,thereby preserving the project's affordability.
• Private New Construction: Under certain circumstances,housing developers are often required to
provide affordable units when building in the City. The continued affordability of these units are ensured
by the Agency. Over the current plan period,the Agency anticipates 20 affordable units to be developed
through this program.
• Housing Rehabilitation Loan Program: Through the Community Development Block Grant(CDBG)
program,housing rehabilitation loans are available to low-income families. The City will lend up to
$25,000 to pay for rehabilitation costs for a single family home and up to$15,000 for a mobile home,
townhouse, or condominium. Over the next ten years,the City anticipates funding approximately$1
million in rehabilitation loans.
Projected Production Housing Surplus
Table 2(b),page 7, identifies 929 affordable units completed over the last Ten Year Plan period. Because
a portion of these units were developed outside of the Agency's Project Area, only 527 units can be
credited towards fulfilling the Agency's housing production requirements. Of the 527 unit credits, 189
are very low-income units and 338 are low/moderate-income units. Based on the housing production
estimates for the next 10-year planning period, the Agency is expected to incur an obligation of 240
affordable dwelling units, including 96 very low-income units and 144 low/moderate-income units.
Because the Agency has a deficit of 3 affordable units from its pre-1994 period and a surplus of 322
affordable units from the last Ten Year Plan period, the net surplus units will be credited towards future
obligations. In addition, the Agency anticipates producing 1,177 new affordable units during the current
Ten Year Plan period, as demonstrated in Table 5(b),page 10. At the end of the current plan period, the
Agency's anticipated total affordable housing production surplus will be 1,097 units.
Estimated Housing Program Resources
The Agency's primary revenue source for its housing program is the annual 20% housing set-aside
deposits. The Law requires that not less than twenty percent(20%)of all tax increment revenue allocated
to the Agency must be used to increase, improve, and preserve the community's supply of housing
available, at affordable housing cost, to persons and families of very low, low, and moderate incomes.
Entering into the 2004-2005 year, the cash balance in the Housing Fund is estimated at nearly $3 million.
As shown in Table 6 on the next page during the next five years the Agency projects revenue of nearly
$15 million, consisting of housing fund Tax Increment of just over $12 million with the remaining from
other resources. This forecast assumes the current assessed values in the Project Area will increase by
2.0% annually, without adding any other new construction assessments. Projections of Housing Fund
expenditures are estimated to be near $11.5 million that includes administrative costs, and new program,
and project costs for the five-year period.
Redevelopment Agency of the 11 Affordable Housing Compliance Plan
City of Huntington Beach
Extrapolating out the additional five years to 2009 and using the 2% annual increase for anticipated
revenues, it is anticipated that the housing set-aside revenues will be approximately $37 million for the
ten-year period.
Table 6
Estimated Five Year
Housing Set-Aside Budget
200410 1 2005106 1 2006107 1 2007108 2008/09 5 Year Total
EST.BEGINNING CASH BALANCE 1 2,993,675 3,577,867 6,050,686 3,453,6011 4,932,708
REVENUE
Total Tax Increment
Tax Increment(20%) 2,134,991 2,435,890 2,484,608 2,534,300 2,584,986 12,174,776
SE Area Tax Increment(201/6) 0
Interest 67,358 84,964 154,665 190,956 228,961 726,903
ERAF Repayment from 80% 0 731,000 0 0 0 731,000
Payment from Main-Pier 0 1,363,000 0 0 0 1,363,000
Total Revenue 2,202,348 4,614,855 2,639,273 2,725,256 2,813,947 14,995,680
EXPENSES
Projects
Property Tax Collection Charge 10,563 10,563 10,563 10,563 10,563 52,815
Rental Housing Acquisition 750,000 750,000 750,000 750,000 750,000 3,750,000
Collette's Children's Home 400,000 0 0 0 0 400,000
Ellis/Patterson 0 415,000 0 0 0 415,000
Oak view Rehab 280,000 280,000 280,000 280,000 280,000 1,400,000
Studios At Center 4,000,000 0 4,000,000
Repayment to Agency 0 500,000 0 0 0 500000
Sub-Total 1,440,563 1,955,563 5,040,563 1,040,563 1,040,563 10,517:815
Operating Expenses
Operating Expenses 177,593 186,473 195,796 205,586 215,865 981,313
Total Expenses 1,618,156 2,142,036 5,236,359 1,246,149 1,256,428 11,499,128
NET INCOME 584,192 2,472,819 2,597,086 1,479,107 1,557,519 3,496,552
EST.ENDING CASH BALANCE 3,577,867 6,050,686 3,453,601 4,932,708 6,490,226
Redevelopment Agency of the 12 Affordable Housing Compliance Plan
City of Huntington Beach
Potential Sites for Future Production Housing
Potential sites for affordable housing include property zoned for residential uses throughout the City.
During the planning period, the Agency will work with private and nonprofit developers to find sites that
are suitable for cost efficient development and rehabilitation of affordable housing.
Implementation Timeline
Table 7 below shows an estimated annual production timeline for the production and estimated costs of
affordable dwelling units over the planning period. Because many programs are still in their formative
stage, specific details of the type and number of units created are not yet certain.
Table 7
Implementation Timeline
Affordable Housing Projects(2005-2009)
Affordable Units Produced by Year
2004-2005 2005-2006 2006-2007 2007-2008 2008.2009 Total
Project Agency Cost VL UM Tot VL UM Tot VL UM Tot VL UM Tot VL UM Tot VL UM Tot
Beachview Villas SRO $0 24 30 53 24 30 53
Collette's Children's Home $400,000 2 0 2 2 0 2
Habitat for Humanity-Delaware $194,400 1 0 1 1 0 1
Ellis/Patterson $415,000 2 0 2 2 0 2
Pacific City Residential $0 39 39 78 39 39 78
Studios at Center $4,000,000 124 127 251 124 127 251
Oakview Rehabilitation $1,400,000 5 0 5 5 0 5 5 0 5 5 0 5 5 0 5 25 0 25
Citywide Acquisition/Rehabilitation $3.750,000 10 0 10 10 0 10 10 0 10 10 0 10 10 0 10 50 0 50
Housing Rehabilitation Loans 1 $500,000 20 7 27 20 7 27 20 7 27 20 7 27 20 7 271 100 35 135
Total $10,659,400 62 37 98 37 7 44 198 173 371 35 7 42 35 7 42 367 231 597
City Housing Element Consistency
Because this Compliance Plan focuses on providing housing for lower income households who are
generally the most difficult segment of the community for whom to provide housing, it is clearly
consistent with the Housing Element's goal to provide housing for all economic groups within the City.
Both this Compliance Plan and the Housing Element state there is a definite need to ensure an adequate
supply of housing for the lower income segments of the City.
A major point of the goals, policies, and objectives of the Housing Element is to provide housing for all
economic segments of the City, especially lower-income families. Because the major goal of this
Compliance Plan is also to provide housing for these lower-income households, the proposed plans and
programs for improving the supply of affordable housing in the City presented in this Compliance Plan
are similar to plans and policies of the Housing Element. The Compliance Plan is therefore consistent
with Housing Element.
Future housing programs proposed in this Compliance Plan are designed to compliment Housing Element
objectives, including the provision of special needs housing and creation of housing in proportionally the
same income categories as the City's RHNA needs.
Redevelopment Agency of the 13 Affordable Housing Compliance Plan
City of Huntington Beach
Housing Unit Estimates Over the Duration of the Agency's
Project Area (1982-2024)
Table 8(a), page 15, illustrates the Agency's anticipated affordable housing production obligations over
the life of the Redevelopment Project Area (1982-2024). As required under California Redevelopment
Law, any construction of new housing or substantial rehabilitation of existing housing that occurs within
a redevelopment project area triggers an obligation of the Agency to create affordable housing,whether or
not such housing was developed by the Agency. This table shows how the Huntington Beach
Redevelopment Agency will fulfill its affordable housing production obligations over the duration of the
Agency's Project Area.
Table 8(a), page 15, shows the number of housing units that have been built or substantially rehabilitated
in the Agency's merged project area to date along with the number anticipated to be completed through
the duration of the Project Area. California Redevelopment Law requires at least 15% of all housing units
built or substantially rehabilitated in a project area to be affordable. This affordability requirement is
higher for units developed directly by the Agency. Of these affordable units, 40% must be restricted to
very low-income households, and 60%must be restricted to low/moderate-income households.
Over the life of the Agency's Project Area (1982-2024), a total of 2,690 units are anticipated to be
constructed or substantially rehabilitated within the boundaries of the Project Area. Of these units, 164
will have been developed directly by the Agency. The affordable housing production requirement
incurred by the Agency is anticipated to be 447 total units, of which 265 must be affordable for very low-
income families and 176 for low/moderate-income families.
Table 8(b), page 16, shows the total number of affordable units anticipated to be developed over the life
of the Project Area in order to meet the Agency's production obligations. The Agency currently projects
that it will develop a total of 2,113 affordable units; however, because some projects will have been
located outside of the Project Area, only 1,516 affordable units will be credited towards meeting the
Agency's requirements. That Agency anticipates that there will be surplus units at each required
affordability level. At the very low-income level, a surplus of 664 units is projected. At the low-income
level, a surplus of 411 units is projected. A total surplus of 1,075 affordable units is projected over the
life of the Agency's project area.
Redevelopment Agency of the 14 Affordable Housing Compliance Plan
City of Huntington Beach
Table 8(a)
Units Developed Inside Project Area(1982-2024)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Agency Developed
1986 Emerald Cove Senior Apartments - 164
Subtotal - 164
Non-Agency Developed
1994 OCCHC Keelson 4 -
1994 Shelter for the Homeless- Barton 1 4 -
1994 Shelter for the Homeless - Keelson 4 -
1996 OCCHC Koledo 1 10 -
1996 Pacific Park Villas - 38
1997 OCCHC Koledo 2 8 -
1997 OCCHC Queens 8 -
2000 OCCHC Koledo 3 10 -
2000 OCCHC Koledo 4 10 -
2000 Plaza Almaria - 42
2001 Interval House 6 -
2001 OCCHC Koledo 5 5 -
2002 Ash Street Condos - 6
2002 Bowen Court - 20
2002 Shelter for the Homeless - Barton 2 4 -
Acquisition & Rehab 200 -
Oakview Rehab 80 -
Pacific City Residential - 516
Private Housing Production - 1,182
Private New Construction - 20
Sea Colony(Hyatt Residential) - 78
Sea Cove (Hyatt Residential) - 106
Studios at Center SRO - 251
Subtotal 353 2,259
Total Units Developed Inside Project Area 353 2,337
Low/Mod-Income Production Requirement 32 233
Very Low-Income Production Requirement 21 155
Total Production Requirement(1982-2024) 53 388
Redevelopment Agency of the 15 Affordable Housing Compliance Plan
City of Huntington Beach
Table 8(b)
Affordable Units Developed(1982-2024)
Status of the Affordable Housing Production Requirement
Income Income Total Total Units
Credits Credits Credits Produced
Inside Proiect Area
1986 Emerald Cove Senior Apartments 164 - 164 164
1994 OCCHC Keelson 4 - 4 4
1994 Shelter for the Homeless- Barton 1 4 - 4 4
1994 Shelter for the Homeless-Keelson 4 - 4 4
1996 OCCHC Koledo 1 10 - 10 10
1996 Pacific Park Villas 25 25 25
1997 OCCHC Koledo 2 8 - 8 8
1997 OCCHC Queens 8 - 8 8
2000 OCCHC Koledo 3 10 - 10 10
2000 OCCHC Koledo 4 10 - 10 10
2001 Interval House 6 - 6 6
2001 OCCHC Koledo 5 5 - 5 5
2002 Ash Street Condos - 6 6 6
2002 Bowen Court 20 - 20 20
2002 Shelter for the Homeless-Barton 2 4 - 4 4
Future Acquisition&Rehab 100 100 200 200
Future Oakview Rehab 80 - 80 80
Pacific City Residential 39 39 78 78
Private New Construction 8 12 20 20
Studios at Center SRO 124 127 251 251
Subtotal 608 309 917 917
Outside Proiect Area
1993 Brisas Del Mar - 22 22 44
1993 Five Points Senior Apartments 16 8 24 48
1994 OCCHC PSS 5 - 5 9
1996 Sea Air Apartments - 18 18 36
1997 Habitat for Humanity-Ronald Rd. 2 2 3
1998 Huntington Village Senior Apartments 12 9 20 40
1998 Pacific Landing - 3 3 5
1998 Greystone Keys - 12 12 23
2000 Cape Ann - 73 73 146
2000 Promenade - 40 40 80
2001 Habitat for Humanity-Yorktown 2 - 2 3
2002 Bridges Apartments-Nichols 2 39 40 80
2003 Fountains Senior Apartments 28 13 40 80
2003 Huntington Pointe 11 42 52 104
2003 Scattered Inclusionary Units - 2 2 3
2003 Sher Lane Apartments 11 22 33 66
2004 Hermosa Vista Apartments 13 31 44 88
2004 Main Place Apartments 14 - 14 27
2004 The Tides 6 6 12
Beachview Villas SRO 24 30 53 106
Collette's Children's Home 2 - 2 4
Ellis/Patterson 2 - 2 3
Habitat for Humanity-Delaware 1 - 1 1
Huntington Gardens 93 - 93 185
Subtotal 233 367 599 1,196
Total Affordable Units Developed 841 676 1,516 2,113
Production Housing Requirement 176 265 441
Production Housing Surplus/Deficit(1982-2024) 664 411 1,075
Redevelopment Agency of the 16 Affordable Housing Compliance Plan
City of Huntington Beach
RCS+► ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Approve the Five Year Implementation Plan (2005-09)
and the Ten Year Housing Compliance Plan (2005-14)
for the Huntington Beach Redevelopment Project
(merged Project Area)
COUNCIL MEETING DATE: November 15, 2004
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑ :.
Not Ap licable
:,.
Contract/Agreement (w/exhibits if applicable) Attached El
Not Applicable ❑,
(Signed in full b the CityAttorne )
Attached ❑ ..
Subleases, Third Party Agreements, etc. Not Applicable
Approved as to form by City Attorne )
Certificates of Insurance (Approved b the CityAtt Attached ❑
y orney� Not A plicable ❑
Attached ❑ _r
Fiscal Impact Statement (Unbudget, over$5,000) Not Applicable
Attached ❑
Bonds (If applicable) Not Applicable ❑
Attached ❑
Staff Report (If applicable) Not Ap licable
Commission Board or Committee Re ort If applicable Attached El
p ( pP ) Not Applicable ❑
s/Conditions for Approval and/or Denial Attached
Findin
g pP Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator (Initial)
City Administrator Initial
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
1
The Five-Year
Implementation Plan
(2005-2009)
& Five Year
Ten-Year
Housing Compliance Plan Implementation Plan
_ ............. __... .......---- ...................... .__
Huntington Beach Project
(Merged Project)
Huntington Beach Project
November 15, 2004 (Merged Project Area)
Goals & Objectives
i N�emoro�
i t
- 0 Eliminate blighting conditions
Improve the commercial base
0 Improve housing opportunities
{ Improve the infrastructure
:-
Projects & Programs Projects
Last Five Years
•Non-Housing a Hyatt Regency
•Housing a Degraded Wetland Restoration
Waterfront Residential
Dukes/Chimayo& Pier Plaza
Plaza Almeria
The Strand
l
Projects
•Main/Walnut
•Bella Terra (Huntington Center) Looking forward
•Sale of Agency Properties Next Five Years
•Elm/Cypress
...................._. ......_.
15
•Edinger Corridor Specific Plan
Ongoing & Future Ongoing & Future
•Hyatt Regency Resort&Spa a Huntington Center- Bella Terra
•Waterfront Residential a Beach/Edinger Project
•Waterfront Expansion (third hotel) a Cypress Elm
The Strand a Oceanview Promenade
•Pacific City 4 Auto Dealer Sign
•Atlanta Beach Project &Economic Development Program
ia Edinger Corridor Specific Plan &Public Improvements
Hyatt Regency Waterfront Residential
Mg-'AQ� Anticipate an Monitor completion
annual loan of the project and .4 `
payment of$2 track the
million per participation
year. payments due to the
Agency
2
Waterfront Expansion The Strand
Third Hotel The Agency is
Ensure it proceeds , M.� assisting the
in a timely manner -_ ,° 'r � developer with the
pursuant to the *, issuance of a$15
'r million CFD bond
existing DDA Anticipating
reimbursing the
developer$2.3 million
Pacific City Huntington Center
31 acres I i tl, fly0 Agency will
il Mixed use project to reimburse the
include restaurants, developer$5.6
entertainment, i, million contingent
retail, hospitality, upon project
office&residential -. `"� p p
performanceEstimated for �+ rw`,t"��" """ •
2004/05 start
Atlanta/Beach Project Beach/Edinger
h,
•Schematic 1.3 Acres
drawings for a
major remodel held for future
and upgrade development
14u �
3
Cypress/Elm Oceanview Promenade
Prepare an Owner 4 Office Rental
Participation ` Subsidies are a ;#
Agreement when ,, contingent f
timely and convey obligation,budget
the property. sufficient funds
annually. ...
Public Improvements Economic Development
Programs
n Undertake public 0 Initiate economic
improvement development
projects to achieve activities in the
goals project area
0$7.5 million 0$2.5 million
Accomplishments
Ten Year a 27 affordable housing projects
Housing Compliance completed during the last ten years
Plan •15 projects completed during the last five
years(640 units)
— .350 owner-occupied Inclusionary Housing
units during the last five years
Huntington Beach Project
(Merged Project Area)
4
Housing Estimates Proposed Projects
10 projects/10 years(1,177 units)
Agency has exceeded 0 Oakview Rehabilitation 4 Collette's Home
its Affordable Housing *Pacific City Residential 0 Ellis/Patterson
Obligations to date Studios at Center a Habitat for Humanity
raa Units Developed Rental Housing 4 Huntington Gardens
•Very-low 189 Acquisition/ 0 Private New
• Low/Mod 338 Rehabilitation Construction
Beachview Villas 0 Housing Rehab
Loans
Production Requirement Production Requirement
Production Requirement 0 Inside Project Area 1:1 credit
•Studios at Center(100%credit) 4 Outside Project Area 2:1 credit
•Privately Developed within Project Areas
•Waterfront Residential
•Pacific City Residential
•Substantial Rehabilitation
Future Housing Projects Five Year Budget
Estimate
Non Housing
Center Avenue • $87 million
Project—"Studios .Projects(including Public Improvements)
at Center •ERAF Payments
.Debt Service Payments
# Housing Fund Repayments
100% Credit :. .Operating Expenses,Fees
Proposed 0 Affordable Housing
• $11.5 million
5
Recommended Action
Public Hearing
•Open,Conduct,&Close •
Approve the Five Year Implementation
Plan and the Ten Year Housing Plan for
the Huntington Beach Project(Merged
Project Area)
6
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
NOTKE� within the Housing
I am a Citizen of the United States and a Compliance Plan how to
APUBIKHEAW improve and increase
resident of the County aforesaid; I am OF THE REDEVELOPMENT the supply.of affordable
housing for the very low,
over the age of eighteen years and not a AGENCY OF THE CITY OF low, and moderate
' HUNII 70N BEACH TO income households.
party to or interested in the below entitled APPROVE THE FIVE YEAR mentati n Plan and the
UMPLEMENTATBN KM Housing Compliance Plan
matter. I am a principal clerk of the may be reviewed on line
HUNTINGTON BEACH INDEPENDENT, TENYURH2005 �OUIsB COW AN. at followbg.loc or at
the following locations:
Reference Desk, central
a newspaper of general circulation PUANCE PLAN(2005--2014) Library, 7111 Talbert
FOR THE HUNTOTON Street, or at City Hall,
BEACH REDEVELOPMENT 2000 Main Street,in the
printed and published in the City of _ city Clerk's Office (2nd
WEICT Floor) and in the De-
Huntington Beach, County of Orange, MERGEpPRO partment of Economic
NOTICE O HEREBY Development (5th
State of California, and that attached Floor).
GIVEN that Redevelop- A notice of this hear-
Notice is a true and complete copy as of Agency of the City ac r to t published
of Huntington Beach according to Govern-
("Agency") will hold a ment Code 6063 and
was printed and published in the public hearing on Mon must posted in at least
day,November 15,2004, four permanent places
Huntington Beach issue of said at 7:00 p.m. or soon within the project area
thereafter in the City for a period of three
newspaper to wit the Issue(s) of: Council Chambers lo- weeks as required by the
Gated at 2000 Main California Community
Street, Huntington Redevelopment Law
Beach, California, to 33490(d).
approve the Five Year ALL. INTERESTED
Implementation Plan PERSONS are invited to
October 21 28 r 2004 (2005--2009) and the l attend the hearing and
Ten Year Housing Com- express their opinions
pliance Plan (2005-- on the projects identified
November 4 2004 2014)for the Huntington in the Five Year Imple-
i Beach Redevelopment mentation Plan or
Project (Merged Project Housing Compliance
Area) having five sub- Plan.Direct your written
areas: Main-Pier, York- comments to the Agency
town-Lake, Oak view, Clerk prior'to the date
Huntington Center, and and time set for the
Talbert-Beach.California 'hearing. for fufther
Community Redevelop- information, call the
ment Law§33490. Department of Economic
declare, under penalty of perjury, that The purpose of the Development at (714)
Implementation Plan is 536-5224.
the foregoing is true and correct. B identify j ctves for Agecific
ency
Flynn,
goals and objectives Agency Clerk
the Huntington Beach Redevelopment Agency
Project, describe the the.City of Huntington
specific programs, is l .leach,2000 Main Street,
Executed on eluding potential 2nd Floor, Huntington
November 4 2004 projects and estimated
expenditures that would Beach,California 27
be made during the five lishe 53 Huntington
at Costa Mesa, California. Published Huntington
years, and explain how Beach Independent Oc-
these activities will tober 21, 28, November
eliminate blight, and 4,2004 103-116
Signature �-
NOTICE OF Beach,2000 Main Street,
2nd Floor, Huntington
A i°`� Beach,tffmbvai42648
OF THE REDEVELOPMENT (714)536-5227 U N T I N G T O N B EACH
AGENCY OF THE CITY OF Published Huntington
Beach Independent Oc-
HUNTINGTON BEACH TO tober 21, 28, November
APPROVE THE FIVE YEAR 4'2" _ 103 b. PE
IMPLEMENTATION PLAN
11 D
T
(2005--2OD9)AND THE
TEN YEAR HOUSING COM-
PLIANCE PLAN(2005--2014) Z604
FOR THE HUNTINGTON
BEACH REDEVELOPMENT
PROJECT
(MERGED PROJECT AREA) y
NOTICE IS HEREBY Client Reference #
GIVEN that Redevelop-
ment Agency of the City
of Huntington Beach
("Agency") will hold a
public hearing on Mon- Huntington Beach Independent Reference
day,November 15,2004,
at 7:00 p.m. or soon
thereafter in the City
Council Chambers lo-
cated at 2000 Main
Street, Huntington
Beach, California, to
approve the Five Year
Implementation Plan
(2005--2009) and the
Ten Year Housing Com-
pliance Plan (2005--
2014)for the Huntington
Beach Redevelopment
Project (Merged Project
Area) having five sub-advertiser-
areas: Main-Pier, York-
town-Lake, Oakview,
Huntington Center, and
Talbert-Beach.California
Community Redevelop-
ment Law§33490.
The purpose of the sed is a clipping of your ad from the
Implementation Plan is ]Ist publication, beginning on
identify the specific g 1/_ (✓ and expiring on _7 goals and objectives for
the Huntington Beach
Project, describe the
specific programs, in-
cluding potential need to make and/ changes or corrections, please call me at your
projects and estimated 1
expenditures that would;t convenience.
be made during the five
years, and explain how
these activities will
eliminate blight, and ��JJ
within the Housing st of this ad is $ L�
Compliance Plan how to
improve and increase
the supply of affordable
housing for the very low,
low, and moderate s for your cooperation and patronage.
income households.
A copy of the Imple-
mentation Plan and the
Housing Compliance Plan
may be reviewed on line
at www.hbbiz.com or at
the following locations:ely,
Reference Desk, Central
Library, 7111 Talbert
Street, or at City Hall, "
2000 Main Street, in the
City Clerk's.Office (2nd
Floor) and in the De-
partment of Economic!Sletten
Development (5th
Flo
or).
no Advertising
A notice of this hear-
ing is to be published
according to Govern-
ment Code 6063 and
must posted in at least
four permanent places
within the project area
for a period of three
weeks as required by the
California Community
Redevelopment Law
33490(d).
ALL INTERESTED
PERSONS are invited to
attend the hearing and
express their opinions _
on the projects identified
in the Five Year Imple- 18682 Beach Blvd.,Ste. 160,Huntington Beach,California 92646
mentation Plan or
Housing Compliance (714)965-3030 Fax(714)965-7174
Plan.Direct your written
comments to the Agency
Clerk prior to the date publication of Times Community News •A Division of the
and time set for the fdo5 An eles dimes hearing. For further g
information, call the
Department of Economic
Development at (714)
• NOTICE OF A PUBLIC HEARING
OF THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH TO APPROVE
THE FIVE YEAR IMPLEMENTATION PLAN (2005 --2009) AND THE
tY°°RrM�� �E� t�A=h TEN YEAR HOUSING COMPLIANCE PLAN (2005--2014)
FOR THE HUNTINGTON BEACH REDEVELOPMENT PROJECT
(MERGED PROJECT AREA)
NOTICE IS HEREBY GIVEN that Redevelopment Agency of the City of Huntington
Beach ("Agency")will hold a public hearing on Monday,November 15, 2004, at 7:00 p.m. or
soon thereafter in the City Council Chambers located at 2000 Main Street, Huntington Beach,
California, to approve the Five Year Implementation Plan (2005--2009) and the Ten Year
Housing Compliance Plan (2005--2014) for the Huntington Beach Redevelopment Project
(Merged Project Area) having five sub-areas: Main-Pier, Yorktown-Lake, Oakview, Huntington
Center, and Talbert-Beach. California Community Redevelopment Law §33490.
The purpose of the Implementation Plan is to identify the specific goals and objectives for
the Huntington Beach Project, describe the specific programs, including potential projects and
estimated expenditures that would be made during the five years, and explain how these activities
will eliminate blight, and within the Housing Compliance Plan how to improve and increase the
supply of affordable housing for the very low, low, and moderate income households.
A copy of the Implementation Plan and the Housing Compliance Plan may be reviewed
on line at www.hbbiz.com or at the following locations: Reference Desk, Central Library, 7111
Talbert Street, or at City Hall, 2000 Main Street, in the City Clerk's Office (2nd Floor) and in the
Department of Economic Development (5th Floor).
A notice of this hearing is to be published according to Government Code §6063 and
must posted in at least four permanent places within the project area for a period of three weeks
as required by the California Community Redevelopment Law §33490(d).
ALL INTERESTED PERSONS are invited to attend the hearing and express their
opinions on the projects identified in the Five Year Implementation Plan or Housing Compliance
Plan. Direct your written comments to the Agency Clerk prior to the date and time set for the
hearing. For further information, call the Department of Economic Development at (714) 536-
5224.
Joan Flynn, Agency Clerk
Redevelopment Agency of the City of Huntington Beach
2000 Main Street, 2nd Floor
Huntington Beach, California 92648
(714) 536-5227
Publication Dates: October 21, 28, &November 4, 2004
For the Posted Notice:
Please do not remove this POSTED NOTICE until after the hearing,
November 15, 2004
Tj
MEETING DATE: November 15, 2004
DEPARTMENT RECEIVED SUBJECT:
REQUESTING: DATE
Econ Dev 10-14-04 Redevelopment Five Year Implementation Plan &
10 year Housing Compliance Plan
TODAY'S DATE October 14, 2004
VERIFIED BY
ADMININSTRATION:
APPROVED BY:
Penelope Culbreth-Graft
City Administrator
10/14/2004 2:47 PM
POSTING CERTIFICATION
• THE PUBLIC NOTICE SUBJECT TO THE PUBLIC HEARING OF
THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON BEACH
For
THE FIVE YEAR IMPLEMENTATION PLAN (2005-2009) AND THE
TEN YEAR HOUSING COMPLIANCE PLAN (2005-2014)
Red cityaof HuvelQnting!ent n 104Eh FOR THE HUNTINGTON BEACH REDEVELOPMENT PROJECT
(MERGED PROJECT AREA)
This is to certify that the attached PUBLIC NOTICE given by Redevelopment Agency
of the City of Huntington Beach("Agency") to hold a public hearing on Monday, November 15,
2004, at 7:00 p.m. or soon thereafter in the City Council Chambers located at 2000 Main Street,
Huntington Beach, California, to approve the Five Year Implementation Plan (2005-2009) and
the Ten Year Housing Compliance Plan (2005-2014) for the Huntington Beach Redevelopment
Project (Merged Project Area)was posted in at least four permanent places within the project
area for a period of three weeks as required by the California Community Redevelopment Law
§33490(d).
Date of Posting: October 21, 2004
IZ-
Locations of Posting:
• Art Center, Downtown
• Main Street Library
• Post Office, corner of Orange & Main
• Oakview Library
• Civic Center, City Hall
c -
_� y
I declare under penalty of perjury that I am employed by the City of Huntington Beach, in the
Economic Development Department and that I posted the Public Notice as indicated above.
✓� 'kize Dater`/
Carol Runz , Assistant Project Manager
NOTICE OF A PUBLIC HEARING
OF THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH TO APPROVE
—14 THE FIVE YEAR IMPLEMENTATION PLAN (2005 --2009) AND THE
f tiF o6 pue ti^tlo^�e�R TEN YEAR HOUSING COMPLIANCE PLAN (2005--2014)
FOR THE HUNTINGTON BEACH REDEVELOPMENT PROJECT
(MERGED PROJECT AREA)
NOTICE IS HEREBY GIVEN that Redevelopment Agency of the City of Huntington
Beach ("Agency") will hold a public hearing on Monday,November 15, 2004, at 7:00 p.m. or
soon thereafter in the City Council Chambers located at 2000 Main Street, Huntington Beach,
California, to approve the Five Year Implementation Plan (2005--2009) and the Ten Year
Housing Compliance Plan (2005--2414) for the Huntington Beach Redevelopment Project
(Merged Project Area) having five sub-areas: Main-Pier, Yorktown-Lake, Oakview, Huntington
Center, and Talbert-Beach. California Community Redevelopment Law §33490.
The purpose of the Implementation Plan is to identify the specific goals and objectives for
the Huntington Beach Project, describe the specific programs, including potential projects and
estimated expenditures that would be made during the five years, and explain how these activities
will eliminate blight, and within the Housing Compliance Plan how to improve and increase the
supply of affordable housing for the very low, low, and moderate income households.
A copy of the Implementation Plan and the Housing Compliance Plan may be reviewed
on line at www.hbbiz.coin or at the following locations: Reference Desk, Central Library, 7111
Talbert Street, or at City Hall, 2000 Main Street, in the City Clerk's Office (2nd Floor) and in the
Department of Economic Development(5"' Floor).
A notice of this hearing is to be published according to Government Code §6063 and
must posted in at least four permanent places within the project area for a period of three weeks
as required by the California Community Redevelopment Law §33490(d).
ALL INTERESTED PERSONS are invited to attend the hearing and express their
opinions on the projects identified in the Five Year Implementation Plan or Housing Compliance
Plan. Direct your written comments to the Agency Clerk prior to the date and time set for the
hearing. For further information, call the Department of Economic Development at (714) 536-
5224.
Joan Flynn, Agency Clerk
Redevelopment Agency of the City of Huntington Beach
2000 Main Street, 2nd Floor
Huntington Beach, California 92648
(714) 536-5227
Publication Dates: October 21, 28, &November 4, 2004
For the Posted Notice:
Please do not remove this POSTED NOTICE until after the hearing,
November 15, 2004
Pubic Review Documents
THE FIVE YEAR IMPLEMENTATION PLAN (2005 --2009)
AND
THE, TEN YEAR HOUSING COMPLIANCE PLAN (2005--2014)
FOR THE HUNTINGTON BEACH REDEVELOPMENT PROJECT
(MERGED PROJECT AREA)
BeOtvafppmant A each
city of"Unetrtotge%each
Contact Information:
Department of Economic Development
Carol Runzel,Assistant Project Manager
(714)536-5224
NOTICE OF A PUBLIC HEARING
OF THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH TO APPROVE
-14 THE FIVE YEAR IMPLEMENTATION PLAN (2005 --2009) AND THE
TEN YEAR HOUSING COMPLIANCE PLAN (2005--2014)
FOR THE HUNTINGTON BEACH REDEVELOPMENT PROJECT
(MERGED PROJECT AREA)
NOTICE IS HEREBY GIVEN that Redevelopment Agency of the City of Huntington
Beach ("Agency") will hold a public hearing on Monday,November 15, 2004, at 7:00p.m. or
soon thereafter in the City Council Chambers located at 2000 Main Street, Huntington Beach,
California, to approve the Five Year Implementation Plan (2005--2009) and the Ten Year
Housing Compliance Plan(2005--2014) for the Huntington Beach Redevelopment Project
(Merged Project Area) having five sub-areas: Main-Pier, Yorktown-Lake, Oakview, Huntington
Center, and Talbert-Beach. California Community Redevelopment Law §33490.
The purpose of the Implementation Plan is to identify the specific goals and objectives for
the Huntington Beach Project, describe the specific programs, including potential projects and
estimated expenditures that would be made during the five years, and explain how these activities
will eliminate blight, and within the Housing Compliance Plan how to improve and increase the
supply of affordable housing for the very low, low, and moderate income households.
A copy of the Implementation Plan and the Housing Compliance Plan may be reviewed
on line at www.hbbiz.corn or at the following locations: Reference Desk, Central Library, 7111
Talbert Street, or at City Hall, 2000 Main Street, in the City Clerk's Office (2"d Floor) and in the
Department of Economic Development(51" Floor).
A notice of this hearing is to be published according to Government Code §6063 and
must posted in at least four permanent places within the project area for a period of three weeks
as required by the California Community Redevelopment Law §33490(d).
ALL INTERESTED PERSONS are invited to attend the hearing and express their
opinions on the projects identified in the Five Year Implementation Plan or Housing Compliance
Plan. Direct your written comments to the Agency Clerk prior to the date and time set for the
hearing. For further information, call the Department of Economic Development at (714) 536-
5224.
Joan Flynn, Agency Clerk
Redevelopment Agency of the City of Huntington Beach
2000 Main Street, 2pd Floor
Huntington Beach, California 92648
(714) 536-5227
Publication Dates: October 21, 28, &November 4, 2004
For the Posted Notice:
Please do not remove this POSTED NOTICE until after the hearing,
November 15, 2004
THE FIVE YEAR
IMPLEMENTATION PLAN 2005-09
THE HUNTINGTON BEACH PROJECT
"MERGED PROJECT AREA")
OF
REDEVELOPMENT AGENCY
OF
THE CITY OF HUNTINGTON BEACH
Department of Economic Development
November 15, 2004
City of Huntington Beach
Redevelopment Agency
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ACKNOWLEDGEMENTS
Redevelopment Agency
Chair
CATHY GREEN
Vice-Chair
JILL HARDY
Members
CONNIE BOARDMAN
GIL COERPER
DEBBIE COOK
DAVE SULLIVAN
PENNY CULBRETH-GRAFT
Executive Director
WILLIAM P. WORKMAN
Assistant Executive Director
DAVID C. BIGGS
Deputy Executive Director
DEPARTMENT OF ECONOMIC DEVELOPMENT—CONTRIBUTING STAFF
Gustavo Duran, Housing and Redevelopment Manager
Carol Runzel,Assistant Project Manager
Steve Holtz, Assistant Project Manager
Luann Brunson, Senior Administrative Analyst
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TABLE OF CONTENTS
Introduction.................................................................................................................................................. 1
Contents of the Implementation Plan................................................................................................... 3
BlightingConditions............................................................................................................................ 3
Goals of the Redevelopment Plan........................................................................................................4
Implementation Plan 1999-2004-Accomplishments.............................................................................. 5
Projects & Activities............................................................................................................................ 5
AffordableHousing Projects................................................................................................................ 8
Implementation Planning Period: 2005-09................................................................................................ 10
Non-Housing Projects&Activities........................................................................................................ 10
Waterfront Project—Hyatt Regency Huntington Beach Resort & Spa............................................. 10
WaterfrontResidential....................................................................................................................... 11
Waterfront Expansion(Third Hotel).................................................................................................. 11
The Strand(Blocks 104-105), CIM Project....................................................................................... 12
PacificCity- 31-Acre Site................................................................................................................. 13
Atlanta/Beach Project........................................................................................................................ 13
Edinger Corridor Specific Plan No.14............................................................................................... 14
HuntingtonCenter Bella Terra ....................................................................................................... 15
Beach/Edinger Project ....................................................................................................................... 16
Cypressand Elm................................................................................................................................ 17
Oceanview Promenade—Abdelmuti Development........................................................................... 17
AutoDealer Sign ............................................................................................................................... 18
Economic Development Program...................................................................................................... 18
PublicImprovements......................................................................................................................... 19
Non-Housing Projects Summary—Table 11.......................................................................................20
Affordable Housing Programs—Housing Compliance Plan.................................................................22
Five-Year Budget .......................................................................................................................................22
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Introduction 1"W
The City Council of the City of Huntington Beach ("City") created its Redevelopment Agency in March
1, 1976. Between 1982 and 1984, the Agency adopted five separate redevelopment projects, namely
Main-Pier, Talbert-Beach, Yorktown-Lake, Oakview, and Huntington Center. In December 1996, five
redevelopment project areas were amended and merged to from a single project area called the
Huntington Beach Redevelopment Project Area, also more conunonly known as the "Merged Project
Area", consisting of 619 acres (less than 3.5%of the City's acreage). The primary goal of the merger was
to allow for the tax increment revenues from the five sub-areas to be spent throughout the merged area.
Later on July 15, 2002, an amendment to the Merged Project Area Redevelopment Plan was approved
which eliminated the time limits to incur debt to January 1, 2014 (City Ordinance 3566). After the plan
termination dates (40 years from adoption date) listed below, the Agency can only pay previously
incurred indebtedness, collect tax increment revenue, and enforce existing covenants, contracts, or other
obligations.):
Sub-Area Adoption Adoption Date Termination Date
Yorktown Lake Ord. 2576 Sept. 20, 1982 Sept 20, 2022
Talbert-Beach Ord. 2577 Sept. 20, 1982 Sept. 20, 2022
Original Main Pier Ord. 2578 Sept. 20, 1982 Sept. 20, 2022
Oakview Ord. 2582 Nov. 1, 1982 Nov. 1, 2022
Added Main-Pier Ord. 2634 Sept. 6, 1983 Sept. 6, 2023
Huntington Center Ord. 2743 Nov. 26, 1984 Nov. 26. 2024
With the adoption of AB1290 in 1993, Redevelopment Agencies were required to adopt implementation
plans that contained specific goals and objectives for the project areas showing how expenditures were
going to eliminate blight (California Health & Safety Code, §33490) and to update the plans every five rrrr
years. The last Five-Year Implementation Plan 1999-2004 was adopted on December 20, 1999 and will
expire on December 31, 2004. On December 16, 2002, a public hearing was held to evaluate the progress
of the plan. The report showed that the Agency was meeting its goals and fully described the
accomplishments for the period evaluated.
The Merged Project Area Five Year Implementation Plan 2005-09 (Implementation Plan) presents the
goals and objectives, anticipated projects and programs, and estimated expenditures for 2005 through
2009. The adoption of the Implementation Plan does not constitute an approval of any specific program
or project, as these approvals will be considered as the projects are implemented. The Implementation
Plan provides a framework to guide the Agency to affirm its goals and evaluate its progress. California
Community Redevelopment Law §33490(c) requires that the Redevelopment Agency evaluate the
progress of its Five Year Implementation Plan by holding a public hearing prior to the end of the third
year, which would be in December 2007. In addition,to monitor the progress of the Agency in relation to
its Implementation Plan, the Agency submits its annual reports to the California State Controller and the
Department of Housing and Community Development. This Implementation Plan will expire on
December 31, 2009.
As additional background information, the Agency adopted two other project areas that arc not part of the
Merged Project Area. The first was the Warner-Goldenwest Small Lot Redevelopment Plan, adopted on
August 1, 1977 and closed on August 30, 1992, earlier than the original duration of the plan as the goals
of the plan were achieved. The second is the Southeast Coastal Redevelopment Project Area, adopted on
June 17, 2002 that is still within its first Five Year Implementation Plan.
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Redevelopment Agency of the 1 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Redevelopment Agency of the 2 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Contents of the Implementation Plan
Section 33490 of the California Community Redevelopment Law ("Law") requires that the
Implementation Plan include the following information:
• specific goals and objectives of the Agency for the Merged Project Area,
• the specific programs, including potential projects, and estimated expenditures proposed to be
made during the next five years, and
• an explanation of how the goals and objectives, programs, and expenditures will eliminate blight
within the project area and will improve and increase the supply of housing affordable to very
low, low, and moderate income households.
The Law also requires that the Implementation Plan address the Agency's affordable housing production
needs and achievements. These items are addressed in a separate document, the Ten Year Affordable
Housing Compliance Plan, which is incorporated herein by reference.
Blighting Conditions
Redevelopment projects are established to remedy conditions of blight as defined by the Law that is in
effect at the time a redevelopment project is adopted. The Law's definition of what constitutes blight has
changed substantially since the constituent areas of the Project Area were established in the early 1980s.
The Law's current blighted definition is set forth below:
• Unsafe/Dilapidated/Deteriorated Buildings: Buildings in which it is unsafe or unhealthy for V4W
persons to live or work. Serious building code violations, dilapidation and deterioration,
defective design or physical construction, faulty or inadequate utilities, or other similar factors
can cause these conditions.
• Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings: Factors
that prevent or substantially hinder the economically viable use or capacity of buildings or lots.
This condition can be caused by a substandard design, inadequate size given present standards
and market conditions, lack of parking, or other similar factors.
• Incompatible Uses: Adjacent or nearby uses that are incompatible with each other and which
prevent the economic development of those parcels or other portions of the project area.
• Lots of Irregular Shape,Inadequate Size, and Under Multiple Ownership: The existence of
subdivided lots of irregular form and shape and inadequate size for proper usefulness and
development that are in multiple ownership.
• Depreciated/Stagnant Property Values; Impaired Investments: Depreciated or stagnant
property values or impaired investments, including, but not necessarily limited to,those
properties containing hazardous wastes that require the use of agency authority as specified in
Article 12.5 (commencing with Section 33459).
• High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant
Lots: Abnormally high business vacancies, abnormally low lease rates, high turnover rates,
abandoned buildings, or excessive vacant lots within an area developed for urban use and served
by utilities.
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Redevelopment Agency of the 3 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
• Lack of Neighborhood Commercial Facilities: A lack of necessary commercial facilities that
are normally found in neighborhoods, including grocery stores, drug stores, and banks and other
lending institutions.
• Overcrowding/Excess of Adult Businesses: Residential overcrowding or an excess of bars,
liquor stores,or other businesses that cater exclusively to adults, that has led to problems of
public safety and welfare.
• High Crime Rates: A high crime rate that constitutes a serious threat to the public safety and
welfare.
The Law also characterizes inadequate public improvements as blight when the above conditions are also
present.
The Agency has previously documented blighting conditions that persist in the Project Area in
conjunction with the 1996 plan amendment and again in 1999. These persistent conditions included
deterioration, irregular subdivision of lots, age and obsolescence, inadequate public improvements, and
high crime rates relative to other areas of the City. The Agency's proposed projects and expenditures
outlined in this Plan will be evaluated in terms of how such activities address these blighting conditions.
Goals . .
Section 500 of the Huntington Beach Project Redevelopment Plan delineates the Agency's community
development goals for the Project Area. These goals formulate the overall strategy for this
Implementation Plan and serve as a guide for the Agency's activities:
A) Eliminate and prevent the spread of conditions of blight including: underutilized properties and
deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and
facilities,obsolete structures, and other economic deficiencies in order to create a more favorable
environment for commercial, office, industrial, residential, and recreational development.
B) Expand the commercial base of the Project Area.
C) Improve public facilities and public infrastructure.
D) Improve inadequate drainage infrastructure.
E) Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both developed
and undeveloped properties within the Project Area.
F) Promote local job opportunities.
G) Encourage the cooperation and participation of residents,businesses,business persons,public
agencies, and community organizations in the redevelopment/revitalization of the Project Area.
H) Implement design and use standards to assure high aesthetic and environmental quality, and
provide unity and integrity to developments within the Project Area.
I) Address parcels of property that are: of irregular form and shape, are inadequately sized for
proper usefulness and development, and/or are held in multiple-ownership.
J) Remove impediments to land disposition and development through the assembly of property into
reasonably sized and shaped parcels served by improved infrastructure and public facilities.
K) Recycle and/or develop underutilized parcels to accommodate higher and better economic uses
while enhancing the City's financial resources.
L) Promote the rehabilitation of existing housing stock.
Redevelopment Agency of the 4 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
M) Increase, improve, and preserve the community's supply of housing affordable to very low, low
and moderate-income households.
Implementation Plan 1999-2004 - Accomplishments
On December 16, 2002, a public hearing was held to evaluate the progress of the Implementation Plan
adopted in 1999. The report showed that the Agency was meeting its goals of the plan. Now at the
conclusion of this five-year period,the accomplishments of the Agency are:
Projects & Activities
• Waterfront Project—Hyatt Regency Huntington Beach Resort& Spa: The 517-room Hyatt
Regency Huntington Beach Resort & Spa and its Conference Center opened for business on
January 19, 2003. The project includes a 50,000 square foot conference center and 13,000 square
feet of specialty retail and a spa. A Community Facilities District was formed to fund $16 million
in public improvements related to the Hyatt Regency. This project won the California
Redevelopment Association's Award for Excellence 2004 in the Special Citation Category.
Landscaping improvements in Pacific Coast Highway were completed later in the year that added
to the resort theme. An initial completion value of$177 million determined the 2003-04 property
Tax Increment for the Hyatt Resort. The success of the project has resulted in Transient
Occupancy Tax and Tax Increment being higher than expected. So far, the Agency has made
three payments totaling $2,471,800 towards its Developer Advance loan repayment obligation of
over$11 million plus interest.
• Degraded Wetland Preservation: In 2002, the Robert Mayer Corporation quitclaimed back to
the Redevelopment Agency a one acre parcel that was removed from the Residential project for
wetland preservation. An additional three(3)acres was dedicated to the City to serve as a buffer
area between the development and the wetland.
• Waterfront Project—Residential: Escrow closed on June 13, 2003, conveying the Waterfront
Residential parcel from Mayer Financial, LLC to the residential merchant builders. Shortly
thereafter, construction on 184 market rate residential units began. William Lyon Homes is
building 78 paseo homes ("SeaColony"), and Christopher Homes is building 106 courtyard
homes ("SeaCove"). Sales have commenced in both developments with escrow closing on the
first two phases of the paseo homes. The Redevelopment Agency will receive a"participation
payment"of 15%of the sales proceeds above a $59 million threshold. As of October 15,2004,
$1,142,355 in participation payments has been received.
• Duke's/Chimayo's restaurants and Pier Plaza: These restaurants are located in a City owned
15,000 square foot building adjacent to the pier. Just north of the pier is Pier Plaza, a major
public venue that hosts the Friday Farmer's Market &Crafts Fair, and other public events such as
"Pier Plaza Presents".
• Plaza Almeria: Construction was completed in August 2000,
on this mixed-use with 40 000 sf of retail/commercial
project �
and 42 townhomes. Plaza Almeria received national
recognition as an example of successful mixed-use _ #
development and was awarded the California Redevelopment
Association's 2002 Award of Excellence.
Redevelopment Agency of the 5 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
• The Strand(Downtown Blocks 104-105): A Disposition and
Development Agreement was approved in 1999 for the
redevelopment of the two-block area bounded by Fifth,Pacific
Coast Highway, Sixth and Walnut. On October 1,2002,the
Planning Commission approved the project's entitlements with F
certain conditions. CIM is proposing a visitor-serving project
with retail, restaurants, entertainment and hospitality uses on a
portion of Blocks 104 and 105 in downtown Huntington Beach.
The project is proposed with retail (53,000 sq. ft.),restaurants
(40,000 sq. ft.) offices(28,000 sq. ft.) and a 149-room hotel
(110,880 sq. ft.). The total project is estimated to be 231,880 sq. ft. During 2003-04, Agency
staff worked to clear title for its parcels to be conveyed to CIM,including paying off a loan
secured by several properties owned by the Agency within this project. The CIM Group began its
oil well re-abandonment program. The Replacement Housing Plan for the project, adopted on
May 3, 1999, first identified that there would be nine residential rental units displaced; since that
time, consideration for these units are no longer necessary as the portion of the site with
residential units was removed from the scope of development. In September 2003,the
Redevelopment Agency and CIM entered into an Implementation Agreement whereby the
Agency agreed to pay up to $1.5 million for 60 or more additional parking spaces to be
constructed on-site. A $250, 000 conic itment payment toward these additional spaces was made
in September, 2004. The site was conveyed to the developer on June 25, 2004. Construction on
the project began on October 11, 2004. Community Facilities District(CFD 2004-1) is in the
process of being formed to issue a maximum of$15 million in tax-exempt bonds to fund the
public improvements associated with this project.
• Main/Walnut: The former Standard Market building was � � d
replaced with a new 9,000-sf, two-story, retail building with
construction completed in 2000 that houses a restaurant on they
second level and retail at the street level. An Owner
Participation Agreement between the Redevelopment Agency I
and Mohammed&Adel Zeidan was approved June 20, 1997. I
The Agency provided $146,800 in financial assistance and
obtained a recorded covenant to restrict its use(no residential,
no arcade, no manufacturing)until 2022. The 1997 Assessed
Value was$347,149, compared to the 2004 Assessed Value of
$1,424,877.
• Bella Terra (Huntington Center Mall): Majority ownership of this 58-acre regional site
changed hands in late 1999,with Ezralow Retail Properties becoming the new owner. As
Huntington Center Associates, LLC (FICA), Ezralow partnered J.h Snyder Co. to redevelop this
outdated retail property into an
` entertainment/life style center. FICA entered
CFD
into an Owner Participation Agreement(OPA)
with the Agency on October 2, 2000. Kohl's
��. _ opened for business on March 7, 2003, in the
z remodeled retail space vacated by the
Broadway. Community Facilities District
2003-1 (Huntington Center)was formed in
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2003 that ultimately resulted in providing$25
million in tax-exempt bonds to fund the public
improvements associated with the project.
Redevelopment Agency of the 6 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Construction of Phase I improvements near Sher Lane and Edinger were completed with new
drive lanes,pedestrian walkways and landscaping improvements. During the summer of 2004,
the construction on the movie theatres and public parking structure commenced.
• Sale of Agency Properties: During this period the Agency sold two of its downtown properties,
438 Main Street and 214 Fifth Street. The 438 Main Street office building sold for$887,513, and
has been renovated to modern standards. The vacant parcel at 214 Fifth Street sold for
$1,047,700 in September 2004.
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• Elm/Cypress—Negotiation on this Agency owned parcel is on hold due to a change of ownership
in the adjacent properties.
• Edinger Corridor Specific Plan: The Department of Economic Development, the Planning
Department, and the Public Works Department have been working with EDAW, Inc. to draft the
Edinger Corridor Specific Plan SP14. Three public workshops were held inviting property
owners, businesses, and tenants to provide input on the community's vision for the area. SP14 is
proposed to cover an area along Edinger Avenue between Beach Boulevard and Goldenwest
Street, and most of the Huntington Center Redevelopment sub-area. Draft SP-14 is near
completion and will be presented to the Planning Commission and City Council for approval
during 2005.
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Redevelopment Agency of the 7 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Affordable
The Agency completed 27 affordable housing projects during its last Ten-Year Housing Compliance Plan
period(1994-2004), of which 15 were completed during the last five years of the plan period(1999-
2004). The housing projects completed during this five-year period added 640 units to the Agency's
affordable housing inventory, at a total cost to the Agency of$11,804,734.
Table I below lists the Agency's affordable housing projects completed during the last ten years. These
projects are more fully described in the companion document, the Ten Year Housing Compliance Plan
2005-14.
TABLE I
Affordable Housing Projects Completed
Affordability Affordable Units
Project Period Year Built Category /Total Units Type of Agency Assistance
The Tides 30 years 2004 Family 12/77 Inclusionary
Hermosa Vista 60 years 2004 Family 88/88 $3,325,000 Agency loan&
Apartments bond financing
The Fountains Senior 60 years 2003 Senior 80/271 $2,000,000 Agency loan&
Apartments bond financing
Huntington Pointe 60 years 2003 Family 104/ 104 $1,700,000 Agency loan&
Apartments bond financing
Sher Lane Apartments 30 years 2003 Family 66/66 $1,200,734 Agency loan
Bowen Court Senior 60 years 2002 Senior 20/20 $900,000 Agency loan&
Apartments discounted land lease
Ash Street Condos 60 years 2002 Family 6/6 Inclusionary
Shelter for the Homeless 30 years 2002 Family 4/4 $350,000 Agency loan
—Barton 2
Habitat for Humanity— 60 years 2001 Family 3/3 $319,000 Agency grant
Yorktown
Interval House 30 years 2001 Family 6/6 $585,000 Agency loan
OCCHC-- Koledo 5 60 years 2000 Family 5/5 $285,000 Agency loan
OCCHC—Koledo 4 60 years 2000 Family 10/ 10 $570,000 Agency loan
Cape Ann 30 years 2000 Family 146/ 146 Inclusionary
The Promenade 30 years 2000 Family 80/80 Inclusionary
OCCHC—Koledo 3 60 years 2000 Family 10/10 $570,000 Agency loan
Greystone Keys 30 years 1998 Family 24/ 150 Inclusionary
Pacific Landing 30 years 1998 Family 5/29 Inclusionary
Habitat for Humanity— 30 years 1997 Family 3/3 $163,000 Agency grant
Ronald Road
OCCHC—Koledo 2 30 years 1997 Family 8/8 $380,000 Agency loan
Bridges Apartments 30 years 1997 Family 80/80 $79,079 Agency loan&
Inclusionary
OCCHC—Queens 30 years 1997 Family 8/8 $490,000 Agency loan
Redevelopment Agency of the 8 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Affordability Affordable Units
Project Period Year Built Category /Total Units Type of Agency Assistance
Sea Air Apartments 30 years 1996 Family 36/36 $546,000 Agency loan
Pacific Park Villas 30 years 1996 Family 25/38 $1,057,000 Agency down
payment assistance loans
OCCHC—Koledo 1 30 years 1996 Family 10/ 10 $518,000 Agency loan
Shelter for the Homeless 30 years 1994 Family 4/4 $320,000 Agency loan
—Barton 1
Project Self Sufficiency 30 years 1994 Family 9/9 $650,000 Agency loan
OCCHC—Keelson 30 years 1994 Family 4/4 $225,000 Agency loan
Shelter for the Homeless 30 years 1994 Family 4/4 $345,000 Agency loan
—Keelson
In addition to these projects,the Agency also implemented the following programs:
• Preservation of Affordable Housing Covenants: The Agency holds 30-year affordability
covenants on 350 owner-occupied Inclusionary Housing Program units, which are restricted to
very low, low, median, and moderate income buyers. When any of these units sell, the Agency
must determine the home's affordable sales price and verify buyer eligibility. During the current
five-year plan period,the Agency approved 377 sales and/or resales of these homes. The Agency
must also approve all refinances to ensure that homeowners do not over encumber their property.
During this five-year period, the Agency reviewed and approved 367 refinances.
• Housing Rehabilitation Loans: During the current five-year plan period, 101 housing
rehabilitation loans and 9 emergency repair grants were awarded to low-income homeowners for ,
a cumulative amount of$1,769,391 using CDBG program funds.
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Redevelopment Agency of the 9 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Implementation Planning Period: 2005-09
The following narratives describe the non-housing projects proposed for the next five years. Anticipated
program expenditures are based on projected tax increment revenue expected for FY 2004-05 to FY
2008-09. Greater or lesser funding may be available; depending upon actual assessed valuation changes
in the Project Area. Table II, page 17, summarizes the non-housing projects as described below. Table
III,page 19, summarizes the housing projects with the detail of these projects more fully contained in the
Ten Year Housing Compliance Plan.
Non-Housing Projects & Activities
HuntingtonWaterfront Project - Hyatt Regenc . .
Description: f
The Hyatt Regency Resort and Spa opened for business in
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January 2001. The economic success of this project is
enabling the Agency to repay its loan to the developer at a
much-accelerated rate than first anticipated. The balance -Au
of the Developer Advance as of June 2004 is
approximately $11,459,000. Beginning with the Third
Operating Year (2005), the Developer must submit a
Certified Annual Statement to the Agency prior to April
30th (120 days after the close of the Operating Year). The
Participation Rent, 3% of the Adjusted Room Revenue
above $25 million, is due by April 30"'.
Action:
Agency staff will work to assure that the Developer Advance loan is repaid from the pledged revenue
sources and that other obligations pertaining to the Disposition and Development Agreement are met.
Staff will continue to monitor the Tax Increment and Transient Occupancy Tax pledged as the sources for
the loan repayment, and will calculate and process the payments to the developer. Staff also monitors the
lease payments and the beach restriction lease payments to assure that these payments to the Agency are
made. Likewise, the revenues are monitored for consistency with the agreement.
Expenditures:
Anticipate an annual loan payment of$2 million per year over the next five years for a total of$10
million paid.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand coinrnercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed:
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 10 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Waterfront Residential
Description: .r
Construction is underway on 184 market-rate residential units on the residential portion of the Waterfront
site.
Action:
Staff will monitor completion of the project to ensure it conforms with the requirements of the
Disposition and Development Agreement. In addition, staff will monitor and track the participation
payments due.
Plan Objectives Addressed:
• Improve public facilities and infrastructure
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed:
• Inadequate public improvements
• Social and economic maladjustment
ExpansionWaterfront
Description:
Located on a 3.456-acre parcel between the Hyatt Regency and the Hilton hotels, a future Waterfront
phase calls for an additional,third hotel of about 300 rooms. Currently there are interim uses on the site:
tennis courts, gazebo,parking and a large tent used for conferences and community meetings.
Action:
Staff will work with the developer to ensure it proceeds in a timely manner pursuant to the existing DDA.
Expenditures:
None anticipated at this time.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Remove impediments to development
• Redevelop underutilized parcels
Conditions of Blight Addressed.
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 11 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
The Strand • 14 iProject
Description:
Over a period of years the Redevelopment Agency assembled
several small lots in the downtown and proposed a mixed use
commercial and hospitality (hotel or timeshare) uses that may
include theaters, restaurants/cafes, retail and a specialty market
Escrow closed on June 25, 2004, conveying the Agency properties q
to CIM group for the Strand project. The project encompasses 3.97
acres (including the Fifth Street right of way) and includes four
separate buildings ranging in height from two to four stories with
not more than 227,000 gross square feet of floor area. Uses include
between 100,000 and 110,000 square feet of commercial space and
a hotel with between 140 to 152 rooms. Of the commercial space, up to 40,000 square feet may be
devoted to restaurant uses and a minimum of 28,000 square feet will be devoted to office uses. Parking
will be provided in two levels, subterranean parking garage accessed from Sixth Street with
approximately 500 spaces. A Community Facilities District was formed in 2004 that will enable the
issuance of bonds to fund public improvements associated with the project.
Action:
The Agency is assisting the developer with the issuance of a$15 million CFD bond.
Expenditures:
During the five-years, the Agency anticipates reimbursing the developer approximately $2.3 million of its
$7.9 million developer advance obligation. Project-generated tax revenues will offset these costs. In
addition, a second $250,000 commitment payment for the additional parking shall be paid to the
developer upon commencement of construction on the parking facility in 2005. The balance of the up to
$1.5 million of total cost for the additional parking shall be funded through the proposed CFD. The
Agency will commence repayment of the financed portion of the additional parking costs upon
completion of the project with up to $400,000 in payments to be made during the next Implementation
Plan period.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
Redevelopment Agency of the 12 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Description:
Makar Properties, owner of this key downtown property known
as "Pacific City,"a unique 31-acre parcel fronting on PCH
between First and Huntington streets is well suited for an Vie,
exciting regional visitor-serving oriented project and residential s -
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uses on the rear portion of the site. The approved plan includes
restaurants, entertainment, retail, hospitality and residential on ��
the site. A multi-year construction program is anticipated.
Action:
None required. m
Expenditures:
No Redevelopment funding is anticipated for this project.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
!:Atlanta/Beach Project
Description:
One of the current owners is attempting to assemble the �
remaining properties encompassing the Atlanta and Beach ,q ,
Boulevard property, a severely deteriorated shopping area. -` .—�._,_ .evn
Schematic drawings have been presented to the City for a major
remodel and upgrade. It is anticipated that the Redevelopment
Agency will be an active participant in facilitating the
redevelopment of this center.
Action:
Continue to monitor the feasibility of redeveloping this center.
Expenditures:
None are anticipated at this time.
Plan Objectives Addressed: q,
• Alleviate and prevent the spread of blighting conditions
Redevelopment Agency of the 13 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
CorridorEdinger . -
Description:
The Edinger Corridor Specific Plan No.14 covers an area along Edinger Avenue between Beach
Boulevard and Goldenwest Street, and most of the Huntington Center Redevelopment sub-area. It
surrounds the Crossings at Huntington Specific Plan, SP13, and North Huntington Center Specific Plan,
SP1. The intent of this plan is to provide a more cohesive planning effort between Beach Boulevard to
the commercial properties at Goldenwest and Edinger, and northerly towards McFadden. The plan has
evaluated the land use, zoning, and proposes to improve the circulation, ingress/egress, and new
development opportunities in the area.
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Huntington center Subarea Redevelopment Project Area
Overlayed with Specific Plan Area
Action:
Approve the Edinger Corridor Specific Plan No_ 14 and implement public improvements programs.
Redevelopment Agency of the 14 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Expenditures
During the five-year period, it is anticipated that the Agency will make expenditures on public
improvements in the Edinger Corridor area. However,these amounts will not be determined until after
the Edinger Corridor Specific Plan No.14 is approved.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Encourage the cooperation and participation of residents, businesses,business persons,public
agencies, and community organizations in the redevelopment/revitalization of the project area
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
Huntington
Description:
Formerly known as the Huntington Beach Mall, ownership of this 63-acre regional site changed hands in
late 1999 with Ezralow Retail Properties becoming the new owner,teaming with J.h Snyder Company.
Plans for the new center include an entertainment/retail focus. Century Theaters will occupy an all- err
stadium 5,000-seat 20-screen cinema complex that will anchor the transformation of the Mall into an
open-air entertainment/life-style center renamed as "Bella Terra". Bella Terra will follow an upscale
Northern Italian village theme, incorporating fountains, courtyards, and garden areas into a great space for
people of all ages. The new project will total almost I million square feet. Through the Owner
Participation Agreement, approved on October 2, 2002 between Huntington Center Associates and the
RDA, the Redevelopment Agency's financial contribution is limited to$16,750,000, if the site included
the Wards parcel and $15 million without. The Wards parcel, under separate ownership,is not yet
included in the redevelopment of the mall. The Agency's obligation will be reimbursed to the developer
over 20 years from site-generated Tax Increment and Sales Tax. The Agency's reimbursable costs are for
the following activities: demolition,clearance, site preparation,public improvements,utilities&
facilities, and acquisition of the land and easements. The interest rate on the Developer Advance has not
been fixed since a Community Facilities District was formed issuing bonds at a lower interest cost. The
Agency may share in future project revenues of 20%of the adjusted gross project revenues if a certain
benchmark is achieved. Project completion on the Ezralow development is anticipated by the third
quarter of 2005.
Action:
Continue to monitor the progress of the completion of the redevelopment of the Ezralow portion. Work
to encourage the redevelopment of the Wards parcel in an integrated manner. The Developer Advance
payments will need to be calculated and made on an annual basis.
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Redevelopment Agency of the 15 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Expenditures:
Through its construction costs, as the Wards parcel is not included in the renovation,Huntington Center
Associates will have advanced$15 million to the Agency,which created the"Developer Advance" loan
to the Agency. During the next five-year period,the Agency anticipates reimbursing the developer$5.6
million contingent upon project performance.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
. -
Description:
,x,.
In the Huntington Center sub-area, the Redevelopment Agency owns
1.3-acres that is being held for possible development after the
proposed Edinger Corridor Specific Plan is approved and after Bella
Terra(Huntington Center) is closer to completion. � '':
Action:
Hold the property until the Edinger Corridor Specific Plan is
completed. When feasible, evaluate proposals for development.
Continue with annual maintenance of this vacant land.
Expenditures:
None are anticipated at this time.
Redevelopment Agency of the 16 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Redevelop underutilized parcels
• Remove impediments to development
Conditions of Blight Addressed:
• Inadequate public improvements
Cypress and
Elm
Description:
The .262-acre parcel owned by the Redevelopment
Agency is proposed to be sold to the adjacent i
property owner to enlarge the capacity of the parking
area. A new owner has purchased both properties
and negotiations have not commenced. r �
Action:
Prepare an Owner Participation Agreement when
timely and convey the property.
Expenditures: M }j
None.
. m
Plan Objectives Addressed: •
• Alleviate and prevent the spread of blighting
P P g g
conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Inadequate public improvements
Description:
Although this project was completed in 1992,there are two activities that need monitoring: I)the
Abdelmuti Development Company's loan payments of$28,375 are obligated to be made monthly to the
Agency and will continue to February 2010 and 2)possible Agency office rent subsidies may be due to
the developer. Corrently, the building is fully leased and no subsidy payments are being made.
Redevelopment Agency of the 17 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Action.
Monitor the office tenant leases.
Expenditures:
Rental subsidies is a contingent obligation, with $90,000 per year
budgeted, the total of $450,000 is budgeted for this obligation
over the five years.
Plan Objectives Addressed:
• Alleviate and spread
prevent the s d of blighting conditions
P p g g
• Expand eomtnercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Irregular lot subdivision
• Inadequate public improvements
• Social and economic maladjustment
Auto Dealer Sign
Description:
The Redevelopment Agency approved a $474,000 loan to the Huntington Beach Auto Dealers
Association to improve the electronic reader board sign located near the 405 Freeway and Bella Terra.
Action:
Monitor the renovation of the reader board sign.
Expenditures:
None-the loan was made during the previous five-year period.
Plan Objectives Addressed:
• Expand commercial base of Project Area
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
DevelopmentEconomic . .
Beyond those projects identified above, the Agency is also pursuing other possible economic
development projects throughout the Project Area. Because these projects are still in a formative stage,
specific project parameters and any subsidies are not yet available. However, all projects under the
Agency's economic development program are oriented towards the elimination of Project Area blighting
conditions, expansion of the community's economic base, and other Redevelopment Plan goals.
Redevelopment Agency of the 18 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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Action:
Monitor blighting conditions on an ongoing basis and evaluate economic development projects as they are
proposed.
Expenditures:
During the five-year period, the Agency has allocated approximately$2.5 million to implement economic
development programs, contingent upon specific project needs.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Expand commercial base of Project Area
• Improve public facilities and infrastructure
• Promote local job opportunities
• Implement compatible design and use standards
• Remove impediments to development
Conditions of Blight Addressed:
• Defective design and character
• Age, obsolescence and deterioration
• Inadequate public improvements
• Social and economic maladjustment
Public Improvements
The Agency is interested in improving the public infrastructure within the project area. Possible projects
in this category may include the improvements to Main Street and needed improvements in the Oakview
sub-area. The elimination blighting conditions, expansion of the cominunity's economic base,and other �►
Redevelopment Plan goals will continue to underline the intent of these projects.
Expenditures:
During the five-year period,the Agency has allocated approximately $7.5 million to implement public
improvement projects.
Plan Objectives Addressed:
• Alleviate and prevent the spread of blighting conditions
• Improve public facilities and infrastructure
• Remove impediments to development
Conditions of Blight Addressed:
• Age, obsolescence and deterioration
• Inadequate public improvements
Redevelopment Agency of the 19 five-Year Implementation Plan 2005-2009
City of Huntington Beach
,Non-Housing Projects Summary~ Table 11
Program Time Frame Goals* Blight Estimated Cost
Mitigated*
Waterfront—Hyatt Regency Ongoing A,B,C, F,J,K d,e $10 million to repay Agency Loan for project
development
Waterfront—Residential Ongoing A,C,D,E,H,I,J,K A,b,c,d,e None
Waterfront—Third Hotel N/A A,B,C,F,J,K d,e None
The Strand Ongoing A,B,C, F,J,K a, b,c,d,e $2.3 million to repay Agency Loan for project
development
Pacific City Multi-year A,B,C,F,J,K a,b,c,d,e Undetermined
Atlanta,/Beach Undetennined A, B,C,F, H,J a,b,d Undetermined
Edinger Corridor Specific Plan Area Ongoing A, B,C,F,G,H,J,K a,b,d,e Undetermined
Huntington Center—Bella Terra Ongoing A,B,C,F,J,K a,b,d,e $5.6 million to repay Developer Advance for
project development
Beach/Edinger Project 4 years A,B,C,F,J,K d Undetermined
Cypress&Elm 2 years A,B,C,J a,d None
Oceanview Promenade Ongoing A, B,C,D, H,J a,b,c,d,e $450,000
Auto Dealer Sign 1 year B a,b None(Loan in prior period)
Economic Development Ongoing A,B,C,F,H,J a,b,d,e $2 million
Public Improvements Ongoing A, B,C, D, E,J a,b,d $10 million
TOTAL
*Note: For the completed projects, although the ongoing activity may now be only debt repayment, the Goals & Blight Mitigated mentioned here
are,for the project as when f rst implemented. Seethe Letter references expanded descriptions on the next page.
Redevelopment Agency of the 20 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
GOALS OF THE REDEVELOPMENT PLAN
A) Eliminate and prevent the spread of conditions of blight including:underutilized properties and deteriorating buildings,incompatible and uneconomic land uses,
deficient infrastructure and facilities,obsolete structures,and other economic deficiencies in order to create a more favorable environment for commercial,office,
industrial,residential,and recreational development.
B) Expand the commercial base of the Project Area.
C) Improve public facilities and public infrastructure.
D) Improve inadequate drainage infrastructure.
E) Improve and/or provide electric,gas,telephone,and wastewater infrastructure to both developed and undeveloped properties within the Project Area.
F) Promote local job opportunities.
G) Encourage the cooperation and participation of residents,businesses,business persons,public agencies,and community organizations in the
redevelopment/revitalization of the Project Area.
H) Implement design and use standards to assure high aesthetic and environmental quality,and provide unity and integrity to developments within the Project Area.
1) Address parcels of property that are: of irregular form and shape,are inadequately sized for proper usefulness and development,and/or are held in multiple-
ownership.
J) Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved
infrastructure and public facilities.
K) Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources.
L) Promote the rehabilitation of existing housing stock.
M) Increase,improve,and preserve the community's supply of housing affordable to very low,low and moderate-income households.
CONDITIONS OF BLIGHT(SIMPLIFIED)
a) Defective design&character
b) Age,obsolescence&deterioration
c) Irregular lot subdivision
d) Inadequate public improvements
e) Social&economic maladjustment
Red pment Agency of the 21 Five-Y nplementation Plan 2005-2009
City ,Auntington Beach
Affordable Housing Programs - Housing Compliance Plan
During the next five years,the Agency anticipates completing 10 projects that will produce approximately
439 new construction and 209 substantially rehabilitated units,totaling 648 affordable units. At the end
of this Implementation Plan period,the total number of affordable units developed by the Agency will be
1,857.
Table III below lists the housing projects to be undertaken or completed during the next five years. These
projects are more fully described in the companion document,the Ten Year Housing Compliance Plan
2005-14. All of the Agency housing programs to meet its requirements pertaining to this Five Year
Implementation Plan are contained in the Compliance Plan.
The redevelopment goals of all of the housing projects are to either: a)promote the rehabilitation of
existing housing stock or b)to increase, improve, and preserve the community's supply of housing
affordable to very low, low and moderate-come households.
Table III
Affordable Housing Projects, Planning Period
Project Time Frame Funding Sources Estimated Project Cost
Beachview Villas SRO 1 year No Agency Assistance
Citywide Acquisition& Continuous Set Aside $3,750,000
Rehabilitation
Collette's Children's Home 1 year Set-Aside $400,000
Ellis/Patterson 2 years HOME/Set Aside $415,000
Habitat for Humanity— 1 year HOME $194,400
Delaware
Housing Rehabilitation Continuous CDBG $500,000
Loans
Huntington Gardens 5 years No Agency Assistance
Oakview Rehab Continuous HOME/Set-Aside $1,400,000
Pacific City Residential 3 years Unknown
Studios at Center 3 years Set-Aside $4,000,000
Five-Year Budget
The Tax Increment revenue of$10.7 million forecasted for 2004-2005, anticipates a number of key
projects being completed,namely the Waterfront residential component,the Strand Project(CIM), and
Bella Terra. Looking forward, a conservative 2%increase is applied to estimate Tax Increment for the
following fiscal years. The budget also contains other project revenues, including interest earnings, rental
income, proceeds from property sold and transient occupancy tax reimbursements. Expenditures include
project costs,bond debt service, loan repayments, pass-through payments, and other administrative costs.
Redevelopment Agency of the 22 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
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The five-year total estimate for Agency expenditures is $97 million for non-housing programs and over
$11.5 million for affordable housing programs. It could be estimated that the non-housing cash balance
after five years would be approximately $2.5 million and the housing set-aside cash balance is estimated
at $2 million.
Estimated Five-Year Budget
Non-Housing
2004105 2005106 1 2006107 1 2007108 1 2008109 5 Year Total
EST.BEGINNING CASH BALANCE 51;826;549 S114244196 :::: 020:638 SS 171tb58 $3,537;$62.
REVENUE
Total Tax Increment
Main Pier T569,448 8,286,837 8,452,573 8,621,625 8,794,057 41,724,540
Huntington Center 1.513,680 2,268,954 3,064,333 3,125,619 3,188.132 13,160,717
Oakview 646,148 659.071 672,252 685,697 699,411 3,362,578
Talbert Beach 481,713 491,348 501,175 511,198 521,422 2,506,856
Yorktown Lake 463,964 473,244 482,708 492,363 502,210 2,414,489
Tax Increment(100'%) 10,674,953 12.179,452 13,173,041 13,436,502 13,705,232 63,169,180
Tax Increment Less 20%Housing Set Aside 8,539,962 9,743,562 10,538,433 10,749.202 10,964,186 50,535,344
Other Revenue
Interest Eamines 37,911 140,372 243,538 220,204 227.147 869,172
Main Pier 17..524.624 3,722.517 3.240,060 3.258,034 3,276,451 31,021,686
Huntington Center 6,924 607,093 607,093 607,093 607,093 2,435,296
0akview 0 0 0 0 0 0
Talbcn Bcach 0 0 0 0 0 0
Yorktown Lake 0 0 0 0 0 0
Sub Total Other Revenue 17,569,459 4,469,982 4,090,690 4,085,330 4.110,691 34,326,153
TOTAL REVENUE 28.2 44,412 16&49,434 17,263,732 17.521.832 17.815.923 97.495"334
EXPENSES
Debt Service Fund
Debt Service Fund 16,064.815 16,087,318 16,191,568 16.298,805 16A09,129 81,051,636
Operating Expenses 663.950 693,673 724,744 757,223 791,177 3,630.767
Projects Fund
Public Improvements 1,500,000 1,500.000 1,500.000 1,500,000 1,500.000 7,5W000
Fconnmic Development Activities 500,000 500,000 5W000 500,000 500,000 2,500.000
Abdebnuli Contract 90,000 90,000 90,000 90,000 90,000 450.000
FRAF Repayment 0 731,000 0 0 0 731,000
Housing FundRep"ent 0 1,363,000 0 0 0 1,363,000
Trustee Fees 8.000 8,000 8,000 8.000 8,000 40,000
Total Projects Fund 2,098000 4,192,000 2,098,000 2.098.000 2,098,000 12,584,000
TOTAL EXPENSES S18,826,765 $20.972.992 $19 19_I54.02R $19. "011¢ $97Z66.402
NET INCOME $9,417,647 ($4,323,558) ($1,750,581) ($1,632,196) ($1,482,382) 228,931
EST.ENDING CASH BALANCE $IL,244;196 1 S6,920,638 , :;;$$,170,95$ $3;537,862 1 $2,055ASO
Redevelopment Agency of the 23 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
Five-Year Budget
Housing Set-Aside
2004105 1 2005106 1 2006107 1 2007108 1 2008109 5 Year Total
EST.BEGINNING CASH BALANCE Z 9936.75 1 3,577,867 6050fiM 3.4534601 4,932,708
REVENUE
Total Tax Increment
Tax lncrement(20%) 2,134,991 2,435,890 2,484,608 2,534,300 2,584,986 12,174,776
SE Area Tax Increment(20%) 0
Interest 67,358 84,964 154,665 190,956 228,961 726,903
ERA Repayment from 80% 0 731,000 0 0 0 731,000
Payment from Main-Pier 0 1,363,000 0 0 0 1,363,000
Total Revenue 2,202,348 4,614,855 2,639,273 2,725,256 2,813,947 14,995,680
EXPENSES
Projects
Property Tax Collection Charge 10,563 10,563 10,563 10,563 10,563 52,815
Rental Housing Acquisition 750,000 750,000 750,000 750,000 750,000 3,750,000
Collette's Children's Home 400,000 0 0 0 0 400,000
F:Ilis,'Patterson 0 415,000 0 0 0 415,000
Oak View Rehab 280,000 280,000 280,000 280,000 280,000 1,400,000
Studios At Center 4,000,000 0 4,000,000
Repayment to Agency 0 500,000 0 0 0 500,000
Sub-Total 1,440,563 1,955 563 5,040,563 1,040,563 1,040,563 10,517,815
Operating Expenses
Operating Expenses 177,593 186,473 195,796 205,586 215,865 981,313
Total Expenses 1,618,156 2,142,036 5,236,359 1,246,149 1,256,428 11,499,128
NET INCOME 584,192 2,472 819 2,597 086 1,479,107 1,557519 31496,552
EST.ENDING CASH BALANCE 3,SZ7;RG7 6,OSD;686 3,453,601 419321708 6490;226
Redevelopment Agency of the 24 Five-Year Implementation Plan 2005-2009
City of Huntington Beach
TEN YEAR
HOUSING COMPLIANCE PLAN 2005-14
HUNTINGTON BEACH PROJECT
("MERGED PROJECT AREA")
d
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REDEVELOPMENT AGENCY
OF
THE CITY OF HUNTINGTON BEACH
Department of Economic Development
November 15, 2004
City of Huntington Beach
Redevelopment Agency
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ACKNOWLEDGEMENTS
Redevelopment Agency
Chair
CATHY GREEN
Vice-Chair
JILL HARDY
Members
CONNIE BOARDMAN
GIL COERPER
DEBBIE COOK
DAVE SULLIVAN
PENNY CULBRETH-GRAFT
Executive Director
WILLIAM P. WORKMAN
Assistant Executive Director
DAVID C. BIGGS
Deputy Executive Director
DEPARTMENT OF ECONOMIC DEVELOPMENT—CONTRIBUTING STAFF
Gustavo Duran, Housing and Redevelopment Manager
Carol Runzel, Assistant Project Manager
Steve Holtz, Assistant Project Manager
Luann Brunson, Senior Administrative Analyst
TABLE OF CONTENTS
Introduction.................................................................................................................................................. 1
Legal Requirements for Compliance Plans.............................................................................................. 1
Contents of the Compliance Plan............................................................................................................. 1
Purpose.....................................................................................................................................................2
Methodology and Data Compilation........................................................................................................2
Provision of Affordable Housing to Date.....................................................................................................2
Pre-1994 Activities...................................................................................................................................2
Post-1994 Activities to Date(January 1994-September 2004)................................................................4
Policy Declaration Regarding Unmet Need............................................................................................. 8
Projected Production Housing Needs...........................................................................................................9
Proposed Affordable Housing Projects(2005-14)................................................................................. 10
Projected Production Housing Surplus................................................................................................... 11
Estimated Housing Program Resources.....................................................
Potential Sites for Future Production Housing....................................................................................... 13
ImplementationTimeline........................................................................................................................... 13
City Housing Element Consistency............................................................................................................ 13
Housing Unit Estimates Over the Duration of the Agency's Project Area (1982-2024)............................ 14
Introduction
This document is the Redevelopment Agency's Ten-Year Affordable housing Compliance Plan 2005-14,
("Compliance Plan") for the Huntington Beach Redevelopment Project ("Merged Project Area"). The
Compliance Plan is an economic development tool to assist the Agency in establishing its affordable
housing goals and implement its programs over the next ten-year period. The goals are established by
reviewing housing needs, especially for very low, low, and moderate-income households. The last
Compliance Plan was adopted on October 14, 1994, approximately two years before the 1996 merger of
the Agency's five project areas into the Merged Project Area. The approved Redevelopment Plan
provides the legal framework for the Agency's affordable housing programs. This Compliance Plan is
incorporated by reference in the Agency's Five Year Implementation Plan 2005-09, adopted
simultaneously as companion documents. This Housing Compliance plan expires on December 31, 2014.
Legal Requirements for Compliance Plans
Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the California
Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("Law"), this
Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low,
low, and moderate-income housing units will be produced as a result of new construction or substantial
rehabilitation.'
Contents of the Compliance Plan
This Compliance Plan has been developed to accomplish the following goals:
• To account for the number of affordable dwelling units,either constructed or substantially rehabilitated,in
the Project Area since its adoption;
• To review affordable housing production needs and activities over the past ten years,pursuant to the prior
1994 Affordable Housing Compliance Plan;
• To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated
between 2005-14 and over the duration of the Redevelopment Plan;
• To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the
Agency between 2005-14;
• To project the availability of City/Agency and other revenue sources for funding affordable housing
production;
• To identify implementation policies/programs and potential sites for affordable housing development;
• To establish a timeline for implementing this Compliance Plan to ensure that the requirements of Section
33413 are met during the 10-year period between 2005-14- and
• To review the affordable housing goals,objectives, and programs contained in the February 1999 City of
Huntington Beach Housing Element("Housing Element")and to confirm that this Compliance Plan is
consistent with the Housing Element.
' Since 1994, Section 33413 of the Law defines"substantial rehabilitation"as"rehabilitation,the value of which
constitutes 25 percent of the after rehabilitated value of the dwelling,inclusive of the land value." Prior to 1994,this
definition did not exist,and the definition of substantial rehabilitation was left to the discretion of redevelopment
agencies.
Also, Section 50052.5 of Health and Safety Code defines affordable housing cost as:
-Very Low-Not more than 30%of 50%of the County median household income.
-Low-Not more than 30%of 70%(or 60%for rental projects) of the County median household income.
-Moderate-Not more than 35%of 110%(or 30%of 120%for rental projects)of the County median household
income.
Redevelopment Agency of the 1 Affordable Housing Compliance Plan
City of Huntington Beach
Purpose
Since 1976, redevelopment and community development agencies have been required to assure that at
least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable
costs to households of very low, low, or moderate income. Of this 30%, not less than 50%are required to
be available at affordable costs to very low-income households. Further, for all units developed by
entities other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated
dwelling units within the Project Area be made available at affordable costs to low or moderate income
households. Of these, not less than 40% of the dwelling units are required to be available at affordable
costs to very low-income households. These requirements are applicable to housing units as aggregated,
and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so
required by an agency.
In 1994 the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how
the agency would achieve the aforementioned affordable housing mandates. Known as Housing
Compliance Plans, the Law also requires agencies to update their plans every five years, meaning this
plan would need to be updated by the end of 2009.
Methodology and Data Compilation
This Compliance Plan takes into account all residential construction or substantial rehabilitation that has
occurred within the Project Area since its adoption in order to determine affordable housing production
needs; it accounts for existing residential construction and substantial rehabilitation, and includes
projections of new dwelling units that may be constructed or substantially rehabilitated during a ten year
planning period.
It should be noted that neither the existing housing stock nor projections for future dwelling units in the
Project Area include any units to be developed by the Agency. The Agency does not anticipate directly
developing or substantially rehabilitating any dwelling units that would trigger the 30% affordable
housing requirement within the ten-year planning period of this Compliance Plan. However, the Agency
will continue to cooperate with and provide assistance and incentives to private developers in order to
meet affordable housing production goals.
Section 33413(b) provides that redevelopment agencies shall ensure that 15% of the non-agency
developed or substantially rehabilitated units created within its jurisdiction are affordable to very low,
low, and moderate income households. The Law does not elaborate what constitutes the "Agency's
jurisdiction," and there are varying legal interpretations of this definition. Agency legal counsel has
opined that the Agency's jurisdiction is defined as the units for which the Agency has been involved
through direct financial or other assistance, while a more conservative interpretation defines the Agency's
jurisdiction as all units created in the Project Area, whether or not the agency is involved.
This Compliance Plan applies the more conservative definition of the Agency's jurisdiction (basing
production requirements on the new construction and substantial rehabilitation activity in the Project
Area)in order to determine the maximum number of production units that could be required by Law.
Provision of Affordable Housing to Date
Pre-1994 Activities
Prior to the commencement of the ten-year production requirement in 1994, a total of 1,254 units were
constructed in the Project Area, including 164 units developed by the Agency (Emerald Cove project) and
1,090 units developed by other entities. Review of City building permit data indicates that no units had
Redevelopment Agency of the 2 Affordable Housing Compliance Plan
City of Huntington Beach
1W VW
been substantially rehabilitated prior to 1994. Pursuant to the Agency's affordable housing production
mandates, at least 30% of the Agency developed units and 15% of the privately developed units, or 213
units in total, are required to be restricted for affordable households. Of these, 85 units are to be reserved
for very low-income households.
Prior to 1994, the Agency met a portion of the 213-unit production-housing requirement with the
construction of the 164-unit Emerald Cove project. This project consists entirely of 164 very low-income
units. Two additional projects developed prior to 1994 produced a total of 92 affordable units (because
these projects are located outside of the Agency's project area, only 46 units can be credited towards
fulfilling the Agency's housing production requirements.
The pre-1994 housing production activities and production requirements are summarized in Tables 1(a)
and(b)below.
Table 1 a
Units Developed Inside Project Area(Pre-1994)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Agency Developed
1986 Emerald Cove Senior Apartments - 164
Subtotal - 164
Non-Agency Developed
Private Housing Production - 1,090
Subtotal - 1,090
Total Units Developed Inside Project Area - 1,254
Low/Mod-Income Production Requirement - 128
Very Low-Income Production Requirement - 85
Total Production Requirement (Pre-1994) - 213
Table 1(b)
Affordable Units Developed (Pre-1994)
Status of Affordable Housing Production Requirement
Very Low- Low/Mod-
Income Income Total Units
Credits Credits Total Credits Produced
Inside Project Area
1986 Emerald Cove Senior Apartments 164 - 164 164
Subtotal 164 - 164 164
Outside Project Area
1993 Brisas Del Mar - 22 22 44
1993 Five Points Senior Apartments 16 8 24 48
Subtotal 16 30 46 92
Total Affordable Units Developed 180 30 210 256
Production Housing Requirement 85 128 213
Production Housing Surplus/Deficit(Pre-1994) 95 (98) (3)
Redevelopment Agency of the 3 Affordable Housing Compliance Plan
City of Huntington Beach
This shows that as of 1994, at the very low-income level, the Agency had a surplus of 95 units. At the
low/moderate-income level, the Agency had a deficit of 98 units. Overall, the Agency had a deficit of 3
affordable units.
The Law does not stipulate a time frame for meeting production-housing deficits incurred prior to 1994.
(After 1994, production housing goals must be met within each ten-year planning period.) As such, the
Agency will first count its production program towards achieving production goals in each ten-year
planning period, with any surplus units credited towards the pre-1994 low-income level deficit. As a
policy, it is the Agency's intention to meet all production housing production needs during the duration of
the Redevelopment Plan.
Post-1994 Activities to Date (January 1994-September 2004)
Over the last Ten-Year Housing Compliance Plan period (1994-2004), the Agency completed 28
affordable housing projects, producing a total of 930 units at a total cost to the Agency of$16,577,813.
These projects produced a total of 307 homeownership units and 623 rental units, as briefly described
below.
• Ash Street Condos: This project was built in 2002 as new affordable ownership housing for median-
income families by Westgate Homes. As part of the City's Inclusionary Housing Program,all six,three-
bedroom homes will remain affordable for 60 years.
• Bowen Court: The Agency partnered with Merit Housing and
the Related Companies to build Bowen Court Senior Apartments %
in 2002.which consists of 20 very-low income apartments for
seniors. Affordability for this project is guaranteed fora
minimum of 60 years.
• Bridges Apartments: This 80-unit apartment complex was
purchased and rehabilitated in 2002 with financial assistance from
the Redevelopment Agency and from local housing developers
through the City's Inclusionary Housing Program. All units will
remain affordable for very low and low-income households for 30
years.
• Cape Ann: As part of the City's Inclusionary Housing Program,Cape Ann was built by WL Homes in
2000 to satisfy the affordable housing obligations of various development companies that had created
market rate homes in Huntington Beach. A total of 146 detached homes were sold to moderate-income
buyers at affordable prices and will remain affordable for 30
years.
• The Fountains Senior Apartments: Completed in 2003 by
FountainGlen Properties,the Fountains Senior Apartments _
include 80 affordable units among 271 total units. In exchange
for financial assistance from the Agency,units for very low and
low-income seniors will remain affordable for 60 years.
• Habitat for Humanity—Ronald Road&Yorktown: Between
1997 and 2001 Habitat for Humanity and the Agency partnered to
build six new homes,consisting of two two-bedroom,two three-bedroom,and two four-bedroom houses,
each of which will remain affordable for very low-income households for at least 60 years.
• Hermosa Vista Apartments: The Agency partnered with Village Investments and KDF Communities in
2004 to acquire and rehabilitate the Hermosa Vista Apartments. This 88-unit complex will offer affordable
housing for very low and low-income families for 60 years.
Redevelopment Agency of the 4 Affordable Housing Compliance Plan
City of Huntington Beach
Ills• Huntington Pointe: The Agency partnered with Village Investments
and KDF Communities in 2003 to acquire and rehabilitate theHuntington Pointe Apartments(formerly known as Quo Vadis
Apartments). This 104-unit complex features 24 studio,64 one-
bedroom,and 16 two-bedroom apartments,all of which will remain
affordable for very low and low-income households for 60 years.
• Interval House: In 2001,the Redevelopment Agency assisted Interval House acquire and rehabilitate a
six-unit apartment complex that is now used as safe housing for women and children recovering from
domestic violence. These units will remain affordable for very low-income families for 30 years.
• Orange County Community Housing: Between 1994 and 2001 the i
Agency partnered with Orange County Community Housing '
(OCCHC)to purchase and rehabilitate eight apartment buildings in
the Oak-view Neighborhood,making 64 units affordable for very low-
income households. Earlier projects require 30-year affordability.
Recently completed project require affordability for 60 years.
� P �
• Greystone Keys: Greystone Homes completed 23 units for ��� li'� `�
moderate-income buyers in 1998 as part of a larger community of 150
new homes. These units will remain affordable for 30 years.
• Pacific Landing: In 1998,Heritage Communities built Pacific Landing,a 29-unit residential community
that includes 5 homes affordable for moderate-income buyers. These units will remain affordable for 30
years.
• Pacific Park Villas: The Agency partnered with Sassounian Capital µ H.
Ventures to build Pacific Park Villas in 1996, a 38-unit condominium
complex. As part of this partnership,the Agency provided down -'
payment assistance loans to 25 moderate-income homebuyers. These
25 units have affordability requirements that will last 30 years.
• The Promenade: The Olson Company built The Promenade in 2000 .ter
to satisfythe affordable housing obligations of various development .,
g g p
companies that had created market rate homes in Huntington Beach.
These 80 condominium units will remain affordable for moderate-income home buyers for 30 years.
• Sea Air Apartments: Formerly a flash point for many criminal
problems,including drugs and prostitution,the owners of Sea Air
Apartments received assistance from the Agency in 1996 to improve
i
the property. The 25-unit apartment complex is now well maintained °
and operated and will provide low-income affordable housing for 30
years. M,'
• Shelter for the Homeless: Between 1994 and 2002,the Agency
partnered with Shelter for the Homeless for three Oakview
neighborhood rehabilitation projects,improving and making
affordable 12 two-bedroom units for very-low income families for 30 years.
• Sher Lane Apartments: Bridges America Foundation acquired and
rehabilitated Sher Lane Apartments,a once run-down apartment
complex plagued by gangs, drugs,and other social ills. Completed in
2002,this 66-unit complex consists of 33 one-bedroom and 33 two- "
bedroom units that will remain affordable to very low,low,and
moderate-income households for 30 years.
• The Tides: Shea Homes completed 12 units for moderate-income
buyers in 2004 as part of a larger community of 77 new homes. These
units will remain affordable for 30 years.
• Housing Rehabilitation Loans: During the last five years, 101 loans and 9 grants were processed for low-
income residents, at a total cost of$1,769,391 using federal CDBG program funds.
Redevelopment Agency of the 5 Affordable Housing Compliance Plan
City of Huntington Beach
Table 2(b), page 7, demonstrates that at the end of the most recently completed Ten Year Plan period, the
Agency has a surplus of affordable units at both the very low-income and low/moderate-income levels.
Overall, the Agency created 322 affordable units in excess of its production housing requirement during
this period.
Table 2(a)
Units Developed Inside Project Area (1994-2004)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Non-Agency Developed
1994 OCCHC Keelson 4 -
1994 Shelter for the Homeless - Barton 1 4 -
1994 Shelter for the Homeless - Keelson 4 -
1996 OCCHC Koledo 1 10 -
1996 Pacific Park Villas - 38
1997 OCCHC Koledo 2 8 -
1997 OCCHC Queens 8 -
2000 OCCHC Koledo 3 10 -
2000 OCCHC Koledo 4 10 -
2000 Plaza Almaria - 42
2001 Interval House 6 -
2001 OCCHC Koledo 5 5 -
2002 Ash Street Condos - 6
2002 Bowen Court - 20
2002 Shelter for the Homeless - Barton 2 4 -
Private Housing Production - 1,182
Total Units Developed Inside Project Area 73 1,288
Low/Mod-Income Production Requirement 7 116
Very Low-Income Production Requirement 4 77
Total Production Requirement(1994-2004) 11 193
Redevelopment Agency of the 6 Affordable Housing Compliance Plan
City of Huntington Beach
1
Table 2 b
Affordable Units Developed (1994-2004)
Status of Affordable Housing Production Requirement
Low/Mod-
Very Low- Income Total Units
Income Credits Credits Total Credits Produced
Inside Proiect Area
1994 OCCHC Keelson 4 4 4
1994 Shelter for the Homeless-Barton 1 4 4 4
1994 Shelter for the Homeless-Keelson 4 4 4
1996 OCCHC Koledo 1 10 10 10
1996 Pacific Park Villas 25 25 25
1997 OCCHC Koledo 2 8 - 8 8
1997 OCCHC Queens 8 - 8 8
2000 OCCHC Koledo 3 10 - 10 10
2000 OCCHC Koledo 4 10 - 10 10
2001 Interval House 6 - 6 6
2001 OCCHC Koledo 5 5 - 5 5
2002 Ash Street Condos 6 6 6
2002 Bowen Court 20 - 20 20
2002 Shelter for the Homeless-Barton 2 4 - 4 4
Subtotal 93 31 124 124
Outside Proiect Area
1994 OCCHC PSS 5 - 5 9
1996 Sea Air Apartments 18 18 36
1997 Habitat for Humanity-Ronald Rd. 2 - 2 3
1998 Huntington Village Senior Apartments 12 9 20 40
1998 Pacific Landing 3 3 5
1998 Greystone Keys 12 12 23
2000 Cape Ann 73 73 146
2000 Promenade 40 40 80
2001 Habitat for Humanity-Yorktown 2 2 3
2002 Bridges Apartments-Nichols 2 39 40 80
2003 Huntington Pointe 11 42 52 104
2003 Scattered Planning Units(Holly&Huntington) 2 2 3
2003 Sher Lane Apartments 11 22 33 66
2003 The Fountains Senior Apartments 28 13 40 80
2004 Hermosa Vista Apartments 13 31 44 88
2004 Main Place Apartments 14 - 14 27
2004 The Tides - 6 6 12
Subtotal 96 307 403 805
Total Affordable Units Developed 189 338 527 929
Production Housing Requirement 82 122 204
Production Housing Surplus/Deficit(1994-2004) 1 107 215 322
�v
Redevelopment Agency of the 7 Affordable Housing Compliance Plan
City of Huntington Beach
Policy Declaration Regarding Unmet Need
According to Health & Safety Code Section 33334.4(a), the Agency must allocate Housing Set-Aside
funds proportionately to unmet housing needs for very-low and low-income persons as determined in the
City's Housing Element. And according to Health and Safety Code Section 33334.4(b), Housing Set-
Aside funds shall assist housing that is available to all persons regardless of age in at least the same
proportion as the population under the age of 65.
Based upon the City's current Housing Element and according to the Southern California Association of
Government's ("SCAG") Regional Housing Needs Assessment ("RLINA"), Table 3 below shows the
target percentages for each income category. The Agency will pursue these housing needs throughout the
City.
Table 3
Comparison of Regional Housing Growth Needs (RHNA,2005 Targets)*
and Agency Affordable Units Produced (as of 2004)
Income Citywide RHNA Affordable RHNA Agency Units
Category Targets Targets Only Produced
Units Percent of Units Percent of Units Percent of
Total Total Total
Very Low 388 19% 388 37% 370 50%
Low 255 13% 255 24% 174 24%
Moderate 400 20% 400 38% 194 26%
Above Moderate 972 48% 0 0% 0 0%
Total 2,015 100% 1,043 100% 737 100%
*7.5-year planning period
According to the 2000 Census, the City of Huntington Beach had a general population of 189,594 of
which 169,938 are under the age of 65, which comprises of 89.6% of the population. Table 4 below
shows the Agency's distribution of affordable units produced by age.
Table 4
Distribution of Agency Affordable Units Produced for Seniors and Non-Seniors*
Agency Affordable
Population City Po ulation Units Produced
Units Percent of Units Percent of
Total Total
Seniors 20,016 11% 140 19%
Non-Seniors 169,938 89% 597 81%
Total 189,954 100% 737 100%
*Census population data reflects seniors as 65 and older. Agency senior projects define
seniors as 55 and older.
Redevelopment Agency of the 8 Affordable Housing Compliance Plan
City of Huntington Beach
Projected Production Housing Needs
Estimates for the total number of dwelling units to be constructed within the Project Area,both during the low
current Ten Year Plan period (2005 through 2014) and over the life of the Redevelopment Plan (1982
through 2024), were generated by the Agency based on a review of infill and build out opportunities in
the Project Area.
As shown in Table 5(a)below, the City estimates that 1,451 units will be developed and 150 units will be
substantially rehabilitated during the next ten years. The Agency anticipates that all of these units will be
developed by entities other than the Agency. Applying the 15%production requirement would create an
affordable housing production obligation of 240 units, 40% of which, or 96 units, must be affordable to
very low-income households.
Table 5(a)
Units Anticipated to be Developed Inside Project Area (2005-2014)
Affordable Housing Production Requirement
Substantial New
Rehabilitation Construction
Non-Agency Developed
Acquisition & Rehab(200 Units) 100
Oakview Rehab 50 -
Pacific City Residential - 516
Private Housing Production - 500
Sea Colony(Hyatt Residential) - 78
Sea Cove (Hyatt Residential) - 106
Studios at Center SRO (100% credit) - 251
Total Units Developed Inside Project Area 150 1,451
Low/Mod-Income Production Requirement 14 131
Very Low-Income Production Requirement 9 87
Total Production Requirement (2005-2014) 23 218
Redevelopment Agency of the 9 Affordable Housing Compliance Plan
City of Huntington Beach
Table 5(b)
Affordable Units Developed (2005-2014)
Status of Affordable Housing Production Requirement
Very Low- Low/Mod- Total Units
Income Credits Income Credits Total Credits Produced
Inside Project Area
Oakview Rehab 50 - 50 50
Pacific City Residential 39 39 78 78
Studios at Center SRO 124 127 251 251
Subtotal 213 166 379 379
Outside Project Area
Acquisition&Rehab 50 50 100 100
Beachview Villas SRO 24 30 53 106
Collette's Children's Home 2 2 4
Ellis/Patterson 2 2 3
Habitat for Humanity-Delaware 1 1 1
Huntington Gardens 93 - 93 185
Private New Construction 4 6 10 20
Subtotal 600 418 1,018 1,177
Total Affordable Units Developed 600 418 1,018 1,177
Production Housing Requirement 96 144 240
Production Housing Surplus/Deficit(2005-2014) 504 273 777
Proposed Affordable Housing Projects (2005-14)
Over the current Ten-Year Housing Compliance Plan period (2005-2014), the Agency anticipates
completing 10 affordable housing projects, producing a total of 1,177 units. These projects are briefly
described below.
• Oakview Rehabilitation: In parternship with affordable housing nonprofit organizations,the Agency will
continue acquiring and rehabilitating properties in the Oakview neighborhood. Over the current plan
period,the Agency will seek to develop 50 units for very low-income families.
• Pacific City Residential: The proposed Pacific City commercial and residential project in the Downtown
Sub-Area includes 516 homes. To satisfy the Agency's affordable housing obligations incurred by this
project,the developer will create 78 affordable units for very low,low,and moderate-income families.
• Studios at Center SRO: The Agency has a Disposition and Development Agreement for the construction
of a Single Room Occupancy affordable housing project on Center Avenue near Gothard Street. The
project is currently anticipated to include 251 units for very low and low income residents.
• Acquisition and Rehabilitation: The Agency will continue to pursue acquisition and rehabilitation
opportunities Citywide over the plan period as apartment buildings become available for sale. The
Agency's goal for the next 10 years is to develop 100 units for very low and low-income families.
• Beachview Villas SRO: Currently under construction on Ellis Avenue,near Beach Boulevard,Beachview
Villas SRO is a 106-unit Single Room Occupancy project for very low and low-income residents. The
project is anticipated to be completed in early 2005.
• Collete's Children's Home: The Agency recently executed an Owner Participation Agreement to finance
the acquisition and rehabilitation of a 4-unit apartment complex in the Oakview neighborhood. When
completed,this property will provide substance abuse recovery assistance in addition to affordable
transitional housing for very low-income families.
Redevelopment Agency of the 10 Affordable Housing Compliance Plan
City of Huntington Beach
'w %W
• Ellis/Patterson: The Agency recently acquired a vacant residential parcel at the corner of Ellis Avenue
and Patterson Street and aticipates developing the site as affordable homeownership housing for very low-
income families.
• Habitat for Humanity—Delaware: The Agency recently acquired a vacant residential parcel at the
corner of Delaware Street and Yorktown Avenue and executed a Disposition and Development Agreement
with Habitat for Iumanity to develop a single-family residence on the site for a very low-income family.
The project will be funded using federal HOME program funds and is anticipated to be completed in early
2005.
• Huntington Gardens: Huntington Gardens is a 185-unit Section 8 project-based seniors affordable
housing project formerly known as Wycliffe Gardens. Although the Section 8 contract recently expired,
the owner has continued the federal affordable housing program while attempting to sell the property. The
Agency anticipates that over the current plan period, there will be an opportunity to participate in the
acquisition and rehabilitation of the property,thereby preserving the project's affordability.
• Private New Construction: Under certain circumstances,housing developers are often required to
provide affordable units when building in the City. The continued affordability of these units are ensured
by the Agency. Over the current plan period,the Agency anticipates 20 affordable units to be developed
through this program.
• Housing Rehabilitation Loan Program: Through the Community Development Block Grant(CDBG)
program,housing rehabilitation loans are available to low-income families. The City will lend up to
$25,000 to pay for rehabilitation costs for a single family home and up to$15,000 for a mobile home,
townhouse, or condominium. Over the next ten years,the City anticipates funding approximately$1
million in rehabilitation loans.
Projected Production Housing Surplus
Table 2(b),page 7, identifies 929 affordable units completed over the last Ten Year Plan period. Because
a portion of these units were developed outside of the Agency's Project Area, only 527 units can be
credited towards fulfilling the Agency's housing production requirements. Of the 527 unit credits, 189
are very low-income units and 338 are low/moderate-income units. Based on the housing production
estimates for the next 10-year planning period, the Agency is expected to incur an obligation of 240
affordable dwelling units, including 96 very low-income units and 144 low/moderate-income units.
Because the Agency has a deficit of 3 affordable units from its pre-1994 period and a surplus of 322
affordable units from the last Ten Year Plan period, the net surplus units will be credited towards future
obligations. In addition, the Agency anticipates producing 1,177 new affordable units during the current
Ten Year Plan period, as demonstrated in Table 5(b), page 10. At the end of the current plan period, the
Agency's anticipated total affordable housing production surplus will be 1,097 units.
Estimated Housing Program Resources
The Agency's primary revenue source for its housing program is the annual 20% housing set-aside
deposits. The Law requires that not less than twenty percent (20%) of all tax increment revenue allocated
to the Agency must be used to increase, improve, and preserve the community's supply of housing
available, at affordable housing cost, to persons and families of very low, low, and moderate incomes.
Entering into the 2004-2005 year, the cash balance in the Housing Fund is estimated at nearly $3 million.
As shown in Table 6 on the next page during the next five years the Agency projects revenue of nearly
$15 million, consisting of housing fund Tax Increment of just over $12 million with the remaining from
other resources. This forecast assumes the current assessed values in the Project Area will increase by
2.0% annually, without adding any other new construction assessments. Projections of Housing Fund
expenditures are estimated to be near $11.5 million that includes administrative costs, and new program,
and project costs for the five-year period.
Redevelopment Agency of the 11 Affordable Housing Compliance Plan
City of Huntington Beach
Extrapolating out the additional five years to 2009 and using the 2% annual increase for anticipated
revenues, it is anticipated that the housing set-aside revenues will be approximately $37 million for the
ten-year period.
Table 6
Estimated Five Year
Housing Set-Aside Budget
2004105 2005/06 2006107 2007108 2008109 5 Year Total
EST.BEGINNING CASH BALANCE 2 9367.5 ..::::3 F i 577 867 6 050 6.94 :3A536U] 4 932 708
REVENUE
Total Tax Increment
Tax Increment(20%) 2,134,991 2,435,890 2,484,608 2,534,300 2,584,986 12,174,776
SE Area Tax Increinent(20%) 0
Interest 67,358 84,964 154,665 190,956 228,961 726,903
ERAF Repayment from 80% 0 731,000 0 0 0 731,000
Payment from Main-Pier 0 1,363,000 0 0 0 1,363,000
Total Revenue 2,202,348 4,614,855 2,639,273 2,725,256 2,813,947 14,995,680
EXPENSES
Projects
Property Tax Collection Charge 10,563 10,563 10,563 10,563 10,563 52,815
Rental dousing Acquisition 750.000 750,000 750,000 750,000 750,000 3,750,000
CullettesChildren'sHome 400,000 0 0 0 0 400,000
FOiS Nnerson 0 415,000 0 0 0 415,000
Oak View Rehab 280,000 280,000 280,000 280,000 280,000 1,400,000
Studios At Center 4,000,000 0 4,000,000
RepayrneRu to Agency 0 500,000 0 0 0 500000
Sub=rotal 1,440,563 1,955,563 5,040,563 1,040,563 1,040,563 10,517:815
Operating Expenses
Operating Expenses 177,593 186,473 195,796 205,586 215,865 981,313
Total Expenses 1,618,156 2,142,036 5,236,359 1,246,149 1,256,428 11,499,128
NET INCOME 584,192 2,472,819 2,597,086 1,479 107 1,557519 3,496,552
ad
EST.ENDING CASH BALANCE 3 571 867 6,050,086 3,453.4tll 4932,708 6 490 226
Redevelopment Agency of the 12 Affordable Housing Compliance Plan
City of Huntington Beach
low
Potential Sites for Future Production Housing
Potential sites for affordable housing include property zoned for residential uses throughout the City.
During the planning period, the Agency will work with private and nonprofit developers to find sites that
are suitable for cost efficient development and rehabilitation of affordable housing.
Implementation Timeline
Table 7 below shows an estimated annual production timeline for the production and estimated costs of
affordable dwelling units over the planning period. Because many programs are still in their formative
stage, specific details of the type and number of units created are not yet certain.
Table 7
Implementation Timeline
Affordable Housing Projects(2005-2009)
Affordable Units Produced by Year
2004.2005 2005-2006 2006-2007 2007-2008 2008-2009 Total
Project Agency Cost VL LIM Tot VL LIM Tot VL LIM Tot VL LIM Tot VL LIM Tot VL LIM Tot
Beachview Villas SRO $0 24 30 53 24 30 53
Collette's Children's Home $400,000 2 0 2 2 0 2
Habitat for Humanity-Delaware $194,400 1 0 1 1 0 1
Ellis/Patterson $415,000 2 0 2 2 0 2
Pacific City Residential $0 39 39 78 39 39 78
Studios at Center $4,000,000 124 127 251 124 127 251
Oakview Rehabilitation $1,400,000 5 0 5 5 0 5 5 0 5 5 0 5 5 0 5 25 0 25
Citywide Acquisition/Rehabilitation $3,750,000 10 0 10 10 0 10 10 0 10 10 0 10 10 0 10 50 0 50
Housing Rehabilitation Loans 1 $500,000 1 20 7 271 20 7 27 20 7 27 20 7 27 20 7 27 100 35 135 �r
Total $10,659,400 62 37 98 37 7 44 198 173 371 35 7 42 35 7 42 367 231 597
City Housing Element Consistency
Because this Compliance Plan focuses on providing housing for lower income households who are
generally the most difficult segment of the community for whom to provide housing, it is clearly
consistent with the Housing Element's goal to provide housing for all economic groups within the City.
Both this Compliance Plan and the Housing Element state there is a definite need to ensure an adequate
supply of housing for the lower income segments of the City.
A major point of the goals, policies, and objectives of the Housing Element is to provide housing for all
economic segments of the City, especially lower-income families. Because the major goal of this
Compliance Plan is also to provide housing for these lower-income households, the proposed plans and
programs for improving the supply of affordable housing in the City presented in this Compliance Plan
are similar to plans and policies of the Housing Element. The Compliance Plan is therefore consistent
with Housing Element.
Future housing programs proposed in this Compliance Plan are designed to compliment Housing Element
objectives, including the provision of special needs housing and creation of housing in proportionally the
same income categories as the City's RIWA needs.
Redevelopment Agency of the 13 Affordable Housing Compliance Plan
City of Huntington Beach
Housing Unit Estimates Over the Duration of the Agency's
Project Area (1982-2024)
Table 8(a), page 15, illustrates the Agency's anticipated affordable housing production obligations over
the life of the Redevelopment Project Area (1982-2024). As required under California Redevelopment
Law, any construction of new housing or substantial rehabilitation of existing housing that occurs within
a redevelopment project area triggers an obligation of the Agency to create affordable housing, whether or
not such housing was developed by the Agency. This table shows how the Huntington Beach
Redevelopment Agency will fulfill its affordable housing production obligations over the duration of the
Agency's Project Area.
Table 8(a), page 15, shows the number of housing units that have been built or substantially rehabilitated
in the Agency's merged project area to date along with the number anticipated to be completed through
the duration of the Project Area. California Redevelopment Law requires at least 15% of all housing units
built or substantially rehabilitated in a project area to be affordable. This affordability requirement is
higher for units developed directly by the Agency. Of these affordable units, 40% must be restricted to
very low-income households, and 60%must be restricted to low/moderate-income households.
Over the life of the Agency's Project Area (1982-2024), a total of 2,690 units are anticipated to be
constructed or substantially rehabilitated within the boundaries of the Project Area. Of these units, 164
will have been developed directly by the Agency. The affordable housing production requirement
incurred by the Agency is anticipated to be 447 total units, of which 265 must be affordable for very low-
income families and 176 for low/moderate-income families.
Table 8(b), page 16, shows the total number of affordable units anticipated to be developed over the life
of the Project Area in order to meet the Agency's production obligations. The Agency currently projects
that it will develop a total of 2,113 affordable units; however, because some projects will have been
located outside of the Project Area, only 1,516 affordable units will be credited towards meeting the
Agency's requirements. That Agency anticipates that there will be surplus units at each required
affordability level. At the very low-income level, a surplus of 664 units is projected. At the low-income
level, a surplus of 411 units is projected. A total surplus of 1,075 affordable units is projected over the
life of the Agency's project area.
Redevelopment Agency of the 14 Affordable Housing Compliance Plan
City of Huntington Beach
` W
Table 8(a)
Units Developed Inside Project Area (1982-2024) .W
Affordable Ilousing Production Requirement
Substantial New
Rehabilitation Construction
Agency Developed
1986 Emerald Cove Senior Apartments - 164
Subtotal - 164
Non-Agency Developed
1994 OCCHC Keelson 4 -
1994 Shelter for the Homeless - Barton 1 4 -
1994 Shelter for the Homeless - Keelson 4 -
1996 OCCHC Koledo 1 10 -
1996 Pacific Park Villas - 38
1997 OCCHC Koledo 2 8 -
1997 OCCHC Queens 8 -
2000 OCCHC Koledo 3 10 -
2000 OCCHC Koledo 4 10 -
2000 Plaza Almaria - 42
2001 Interval House 6 -
2001 OCCHC Koledo 5 5 -
2002 Ash Street Condos - 6 r►
2002 Bowen Court - 20
2002 Shelter for the Homeless- Barton 2 4 -
Acquisition & Rehab 200 -
Oakview Rehab 80 -
Pacific City Residential - 516
Private Housing Production - 1,182
Private New Construction - 20
Sea Colony(Hyatt Residential) - 78
Sea Cove (Hyatt Residential) - 106
Studios at Center SRO - 251
Subtotal 353 2,259
Total Units Developed Inside Project Area 353 2,337
Low/Mod-Income Production Requirement 32 233
Very Low-Income Production Requirement 21 155
Total Production Requirement (1982-2024) 53 388
r✓
Redevelopment Agency of the 15 Affordable Housing Compliance Plan
City of Huntington Beach
Table 8 (b)
Affordable Units Developed (1982-2024)
Status of the Affordable Housing Production Requirement
Income Income Total Total Units
Credits Credits Credits Produced
Inside Project Area
1986 Emerald Cove Senior Apartments 164 164 164
1994 OCCHC Keelson 4 4 4
1994 Shelter for the Homeless- Barton 1 4 - 4 4
1994 Shelter for the Homeless-Keelson 4 - 4 4
1996 OCCHC Koledo 1 10 - 10 10
1996 Pacific Park Villas 25 25 25
1997 OCCHC Koledo 2 8 - 8 8
1997 OCCHC Queens 8 - 8 8
2000 OCCHC Koledo 3 10 - 10 10
2000 OCCHC Koledo 4 10 - 10 10
2001 Interval House 6 - 6 6
2001 OCCHC Koledo 5 5 - 5 5
2002 Ash Street Condos - 6 6 6
2002 Bowen Court 20 - 20 20
2002 Shelter for the Homeless-Barton 2 4 - 4 4
Future Acquisition&Rehab 100 100 200 200
Future Oakview Rehab 80 - 80 80
Pacific City Residential 39 39 78 78
Private New Construction 8 12 20 20
Studios at Center SRO 124 127 251 251
Subtotal 608 309 917 917
Outside Protect Area
1993 Brisas Del Mar - 22 22 44
1993 Five Points Senior Apartments 16 8 24 48
1994 OCCHC PSS 5 5 9
1996 Sea Air Apartments - 18 18 36
1997 Habitat for Humanity-Ronald Rd. 2 - 2 3
1998 Huntington Village Senior Apartments 12 9 20 40
1998 Pacific Landing - 3 3 5
1998 Greystone Keys - 12 12 23
2000 Cape Ann - 73 73 146
2000 Promenade - 40 40 80
2001 Habitat for Humanity-Yorktown 2 - 2 3
2002 Bridges Apartments- Nichols 2 39 40 80
2003 Fountains Senior Apartments 28 13 40 80
2003 Huntington Pointe 11 42 52 104
2003 Scattered Inclusionary Units - 2 2 3
2003 Sher Lane Apartments 11 22 33 66
2004 Hermosa Vista Apartments 13 31 44 88
2004 Main Place Apartments 14 - 14 27
2004 The Tides 6 6 12
Beachview Villas SRO 24 30 53 106
Collette's Children's Home 2 - 2 4
Ellis/Patterson 2 - 2 3
Habitat for Humanity-Delaware 1 - 1 1
Huntington Gardens 93 - 93 185
Subtotal 233 367 599 1,196
Total Affordable Units Developed 841 676 1,516 2,113
Production Housing Requirement 176 265 441
Production Housing Surplus/Deficit(1982-2024) 664 411 1,075
Redevelopment Agency of the 16 Affordable Housing Compliance Plan
City of Huntington Beach