HomeMy WebLinkAboutREDEVELOPMENT AGENCY - FY 1989-90 - 20 % HOUSING SET-ASIDE B REQUEST,FO"!REDEVELOPMENTSEN'CYACTION
RECEIVED _
CITY CLERK ON G/SJ
CITY 4F /l ( .,Oh �®(� RH 89-47
WITIt;(; *CH,CALIF,
r'" ° (� uate June 5, 1989 _
1 1 11 - APPROVED BY CITY COUNCIL.
Honorable Chairma pet - bers w - 02� 89
Submitted to: 19"......
Paul E. Cook, Chief Executive Officer _ L" ,
Submitted by:
IT ,8K
Douglas N. La Belle, Deputy City Administrator/Econ -
Prepared by:
FISCAL YEAR 1989-90 REDEVELOPMENT 20% HOUSING SET-ASIDE
Subject: BUDGET RECOMMENDATION AND IMPLEMENTATION PLAN /:?", #l 7
Consistent with Council Policy? >d Yes [ ] New Policy or Exception ;qt a
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
On October 17, 1988 the Economic Development Department submitted a report to the
Redevelopment Agency regarding the various uses for the Redevelopment Housing
Set-Aside Funds. At that meeting the Agency established a Housing Committee to be
represented by three City Council/Redevelopment Agency members and four citizen
representatives for the purpose of reviewing a potential implementation plan for these
funds as well as reviewing other housing issues. The committee met through the months
of March, April and May with the Economic Development staff and have prepared the
fiscal year 1989-90 20% Housing Set-aside Budget and implementation plan for the
Agency's review and approval.
RECOMMENDATION:
1. Approve the fiscal year 1989-90 20% Housing set-aside budget as presented.
2. Approve the attached resolutions (2) determining that the use of the 20% set-aside
funds outside the project areas will benefit the project areas, and authorizing the
expenditure of such funds.
ANALYSIS:
The 20% Housing set-aside funds are defined as the minimum percentage of tax
increment funds generated from the Redevelopment project areas which must be
utilized by the Agency to increase or improve the housing for low and moderate income
households. If the Redevelopment Agency does not utilize these funds within five years
of accumulating over $500,000, the funds will be transferred to the local Housing
Authority.
The fiscal year 1989-90 budget offers a wide variety of programs to meet the needs of
low (80% of county median income) and moderate (120% of county median income)
income residents of Huntington Beach. The programs are developed to assist
Huntington Beach residents in both the rental market and with a first time home
ownership program.
The fiscal year 1989-90 budget presented herein represents an implementation plan for
all available set-aside funds as required by state law, however, the actual program
implementation will allow for these funds to be expended over the next three fiscal
years.
P10/1/85
Res. No. 174
i
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF HUNTINGTON BEACH)
I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the-
City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing
resolution was duly adopted by the Redevelopment Agency of the City of
Huntington Beach at a meeting of said Redevelopment Agency held on the
26th day of June 19 89, and that it was so adopted
by the following vote:
AYES: Members:
MacAllister, Green, Winchell , Bannister, Silva
t
NOES: Members:
None
ABSENT: Members:
Mays, Erskine out of room
Clerk of the Redevelop ent Agency of
the City of Huntington Beach, Ca.
_.1
RESOLUTION NO. 6026
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH
FINDING AND DETERMINING THAT THE USE OF MONIES FROM
THE LOW AND MODERATE INCOME HOUSING FUND OUTSIDE
THE PROJECT AREAS WILL BENEFIT THE PROJECT AREAS,
AND AUTHORIZING THE EXPENDITURE OF SUCH FUNDS
WHEREAS, the Redevelopment Agency of the City of Huntington
Beach ( "Agency" ) is a Community Redevelopment Agency organized and
existing under the Community Redevelopment Law, Health and Safety
Code §33000 , et seq. , (the "Act" ) ; and
The Agency is authorized to implement the Redevelopment Plans
for each of the Huntington Beach Redevelopment Projects (the
"Plans" ) for each of the Project Areas (the "Project Areas" ) ,
including the Main-Pier Redevelopment Project Area, the Oakview
-Redevel-opment Pro-ject -Area, 'the Huntington Center Redevelopment
Project Area, -the Yorktown-Lake Redevelopment Project Area and the
Talbert-Beach Redevelopment Project Area; and
Section 33334 . 2 of the Act requires that not less than twenty
percent (200) of all taxes which are allocated to the Agency
pursuant to §33670 of the Act shall be used by the Agency for
purposes of increasing and improving the community' s supply of low
and moderate income housing ( "Low and Moderate Income Housing
Fund" ) ; and
Pursuant to §33334 . 2 of the Act the Legislature declares its
intent that the Low and Moderate Income Housing Fund shall be used
to improve and increase housing in the community; and
To carry out the purposes of increasing and improving the
community' s supply o'f low and moderate income housing §33334 . 2 (e)
of the Act states the Agency may exercise any or all of its powers,
-1-
including without limitation, acquiring land or building sites,
improving land or building sites with onsite or offsite
improvements , donating land to private or public persons or
entities, constructing buildings or structures, acquiring buildings
or structures, rehabilitating buildings or structures, providing
subsidies to, or for the benefit of, very low income households,
lower income households, or persons or families of low and moderate
income, or other powers to carry out the purposes of the Act; and
Subsection (g) of §33334 . 2 of the Act authorizes the Agency
to use monies from the Low and Moderate Income Housing Fund inside
or outside the Project Area, but the Agency may only use the funds
outside the Project Area upon resolutions of the Agency and the City
Council finding that such use will .be of benefit to the Project
i Area; and
Under -said Subsection (g) of §333.34 . 2 the Legislature
declares that the provision of replacement housing pursuant to
§33413 is always of benefit to a project area; and
WHEREAS, the City Council desires by this Resolution to
declare that the expenditure of monies from the Low and Moderate
Income Housing Fund outside the Project Area for purposes authorized
under the Act are -and will be of benefit to the Project Area;
NOW, THEREFORE, the City Council of the City of Huntington
Beach finds, declares, and resolves as follows :
1. The Recitals above are fully incorporated into this
resolution and finding .
2 . The expenditure of monies from the Low and Moderate
1 Income Housing Fund for purposes authorized under the Act outside
the Project Areas in which such fund are generated are and will be
-2- 6026
of benefit to the respective Project Areas .
3 . The City hereby authorizes the Agency to expend monies
from the Low and Moderate Income Housing Fund for said authorized
purposes .
adjourned
PASSED AND ADOPTED at a /regular meeting of the City Council
of the City of Huntington Beach on the 2E_ttL day of June ,
1989 .
Mayor
ATTEST: APPROVED AS TO FORM:
¢ City Clerk tNITIATED
n y
_ 4
REVIEWED AND APPROVED: AND APPROG D:
City Administrator Di e •tor of Economic Development
i
i
i
-3- 6026
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF HUNTINGTON BEACH )
I , Connie Brockway City Clerk of the City of Huntington
Beach hereby certify that the above and foregoing Resolution
adjourned
No . 6026 was duly and/regularly passed and adopted by the City
Council at a publicly noticed regular meeting thereof, held on
the 26th day of June 1989 .
IN WITNESS WHEREOF I have hereunto set my hand and affixed
the Seal of the City of Huntington Beach this =28th day
of __June 1989 .
City Clerk
;.i
i
-4_ 6026
R. No. 6026
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I , CONNIE BROCKWAY, the duly appointed, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of at least a majority of all the members of said City Council
at a regular adjourned meeting thereof held on the 26th day
of June , 1989 by the following vote:
AYES: Councilmembers:
-` MacAllister, Green, Winchell , Bannister, Silva
NOES: Councilmembers:
None
ABSENT: Councilmembers:
Mays, Erskine out of room
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
RAA RH 89-47
June 5, 1989
Page 2
FUNDING SOURCE:
Redevelopment 20% housing set-aside funds.
ALTERNATIVE ACTIONS:
1. Do not approve the budget as presented and revise the submittal as appropriate.
2. Direct staff to continue meeting with the Housing Committee on this issue and
return with other recommendations for Agency consideration.
ATTACHMENTS:
I. Redevelopment Agency Resolution
2. City of Huntington Beach Resolution
3. Summary Report
4. Fiscal Year 1989-90 Budget
5. Fiscal Year 1989-90 Budget Narrative
DLB/EN:jar
5008r
SUMMARY REPORT
Housing Committee Review of 20% Set-Aside Program
Fiscal Year 1999-90
During the months of March, April, and May of 1989, three City Council members and
four Huntington Beach residents comprising the Housing Committee met to discuss the
issue of increasing and improving the supply of affordable housing in Huntington Beach.
The Redevelopment funds specifically set-aside for this purpose are referred to as "20%
Set-Aside Funds" which is a reference to the State mandated minimum percentage of
Redevelopment tax increment which must be provided for affordable housing purposes.
The committee recognized three areas where these funds could be effectively utilized in
Huntington Beach:
1. To finance rehabilitation projects to improve the housing conditions for
low and moderate income households.
2. Assist low income households currently renting in Huntington Beach by
reducing their rental payments to 30% of their income through
non-subsidy approaches.
3. To offer down payment assistance to moderate income first time home
buyers currently renting in Huntington Beach.
These three identified objectives evolved into six individual projects which are
represented in the fiscal year 1989-90 budget. These projects offer needed assistance in
the provision and upgrading of affordable housing in Huntington Beach. The fiscal year
1989-90 20% set-aside budget represents the first year of implementation of a
comprehensive affordable housing program. The current funding available is
$3,747,137.00 and combined with the Federal Community Development Block Grant
Program budget of $1,310,000.00 will allow for a-wide variety of innovative housing
programs.
The adoption of a set-aside program and working budget is the first step in providing local
assistance to the National problem of affordable housing. If the City does not implement
a program with the set-aside funds within a five year period from accumulating those
funds, the State automatically transfers the unused funds to the County Housing
Authority. The City would in essence lose local control of this funding and the Housing
Authority would undertake affordable housing projects within the City with minimal
direction from the City Council.
Upon adoption of a 20% set-aside budget, the Economic Development Department will
prepare guidelines and procedures for implementing the individual projects to be reviewed
initially by the Housing Committee and then the City Council.
EN:jar
5015r
MARCH 21, 1989
20% SET-ASIDE HOUSING FUND
DRAFT BUDGET FISCAL YEAR 1989
$3,747,137
AMOUNT
ADMINISTRATION $ 70,000.00
1. REHABILITATION $ 650,000.00
2. MULTI-FAMILY UNIT INTEREST WRITE-DOWN $1,000,000.00
3. 1ST TIME BUYER DEFERRED PAYMENT LOAN $1,000,000.00
4. RELOCATION ASSISTANCE $ 100,000.00
5. PRIVATE MARKET LEVERAGING PROGRAM $ 777,137.00
6. MOBILE HOME ASSISTANCE $ 150.000.00
EN:jar
4666r
DEPARTMENT FUNCTION CITY OF HUNTINGTON BEACH PROGRAM NO. PROGRAM NAME
Economic Housing 20% SET-ASIDE
Development HOUSING PROGRAM
PROJECT DESCRIPTION 1989-90 20% Housing set-aside projected use of funds.
I. Rehabilitation. These funds will be utilized for Rehabilitation projects benefitting low and moderate income households where
federal CDBG funds are found to be too restrictive. These funds will be used on large rental unit projects where Davis/Bacon
Federal prevailing wage requirements would normally apply under the CDBG Program and for carport conversions to enclosed
garages in the Oakview Project Area. $650.000.00
2. Multi-Family Unit Interest Write-Down. This program will offer a lump sum write down of an existing interest bearing note to
reduce the debt service on existing multi-family apartment complex. In return the property owner will execute with the city a
recorded covenant requiring affordable rental rates to low and moderate income households for the longest feasible time but not
less than fifteen years. $1,000.000.00
3. First Time Buyer Deferred Payment Loan: This program will establish a loan pool for down payment assistance to qualifying low
and moderate income first time home buyers. A Deed of Trust and affordable housing covenant will be secured against the
property to ensure the use to be owner occupied and the loan to be paid back to the Agency with a proportionate percentage share
of the equity at the time the property is sold or title transferred. The covenant will designate the use for the longest feasible
time but not less than ten years. $1.000.000.00
4. Relocation Assistance: This program will offer relocation assistance to low income households residing in overcrowded conditions
within neighborhood enhancement target areas. With this relocation, the agency will work with the Orange County Housing
Authority to qualify the tenants for section 8 assistance. Although this program will improve the housing conditions for Iow
income households, the eligibility of this program is still under consideration by Agency Counsel. $100.000.000
5. Private Market Leveraging Program: These funds will be used to increase the supply of affordable housing units in new
construction projects. These funds will be used to writedown the development costs of a housing construction project in
exchange for the set-aside of a designated number of units for low and moderate income households for the longest feasible time
but not less than fifteen years. The number of units set-aside will be a proportionate percentage of the Agency's contribution to
the overall construction costs for the project. $777.137.00
6. Mobile Home Assistance: These funds will be used to assist low income mobile home owners with a variety of eligible programs
including but not limited to:
Relocation assistance due to city/agency action(total funding assistance limited to the set-aside funds contributed from an
individual project).
Emergency repair grants to low income owners not to exceed$1,500.00. $150,000.00
RESOLUTION NO. 174
I A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
FINDING AND DETERMINING THAT THE USE OF MONIES FROM
THE LOW AND MODERATE INCOME HOUSING FUND OUTSIDE
THE PROJECT AREAS WILL BENEFIT THE PROJECT AREAS, AND
AUTHORIZING THE EXPENDITURE OF SUCH FUNDS
WHEREAS, the Redevelopment Agency of the City of Huntington
Beach ("Agency" ) is a Community Redevelopment Agency organized and
existing under the Community Redevelopment Law, Health and Safety
Code §33000, et seq. , (the "Act") ; and
The Agency is authorized to implement the Redevelopment Plans
for each of the Huntington Beach Redevelopment Projects (the
"Plans") for each of the Project Areas (the "Project Areas") ,
including the Main-Pier. Redevel.opment Project Area, the Oakview
Redevelopment Project Area, the_Huntington Center. Redev.elopment
Project Area, the Yorktown-Lake Redevelopment Project Area and the
Talbert-Beach Redevelopment Project Area; and
Section 33334 . 2 of the Act requires that not less than twenty
percent (20%) of all taxes which are allocated to the Agency
pursuant to §33670 of the Act shall be used by the Agency for
purposes of increasing and improving the community' s supply of' low
and moderate income housing ( "Low and Moderate Income Housing
Fund" ) ; and
Pursuant to §33334 . 2 of the Act the Legislature declares its
intent that the Low and Moderate Income Housing Fund shall be used
to improve and increase housing in the community; and
To carry out the purposes of increasing and improving the
community' s supply of low and moderate income housing §33334 . 2 (e)
of the Act states the Agency may exercise any or all of its powers,
-1- 174
r '
including without limitation, acquiring land or building sites,
. , improving land or building sites with onsite or offsite
i
improvements, donating land to private or public persons or
entities, constructing buildings or structures, acquiring buildings
or structures, rehabilitating buildings or structures, providing
subsidies to, or for the benefit of , very low income households,
lower income households, or persons or families of .low and moderate-
income, or other powers to carry out the purposes of the Act; and
Subsection (g) of §33334 . 2 of the Act authorizes the Agency
to use monies from the Low and Moderate Income Housing Fund inside
or outside the Project Area, but the Agency may only use the funds
outside the Project Area upon resolutions of the Agency and the City
Council finding that such use will be of benefit to the Project
Area; ,- and
Under said subsection (g) of §33334 . 2 the Legislature
declares that the provision of. replacement housing pursuant to
§33413 is always of benefit to a project area; and
The Agency desires by this Resolution to declare that the
expenditure of monies from the Low and Moderate Income Housing Fund
outside the Project Area for purposes authorized under the Act are
and will be of benefit to the Project Area;
NOW, THEREFORE, the Redevelopment Agency of the City of
Huntington Beach finds , declares , and resolves as follows :
1 . The Recitals above are fully incorporated into this
resolution and finding .
2 . The expenditure of monies from the Low and Moderate
Income Housing Fund for purposes authorized under the Act- outside
the Project Areas in which such funds are generated are and will be
-2- 174
„ l of benefit to the respective Project Areas .
-f 3 . The Agency is authorized to expend monies from the Low
i
and Moderate Income Housing Fund for said authorized purposes .
PASSED AND ADOPTED at a regular meeting of the Redevelopment
Agency of the City of Huntington Beach on the 26th day
of 1989 .
REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH
(:,2
Chairman
ATTEST: APPROVED AS TO FORM:
__ c�
Secretary -of the -Redeve7lopment )ity Attorn
Agency of ..the City of Huntington
_ 'Beach
REVIEW,-p AND APPROVED: I ITIATED AND APPROVED:
Executive it for ect of Economic Development
i
-3- 174
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF HUNTINGTON BEACH )
: i
1
It Connie Brockway Secretary of the
Redevelopment Agency of the City of Huntington Beach hereby certify
that the above and foregoing Resolution No . 174 was duly and
regularly passed and adopted by the said Agency at a publicly
noticed regular meeting thereof, held on the 26th day
of June 1989 .
•
Secretary of the Rede opment
Agency of the City of Huntington
Beach
I
i.
-4- 174