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HomeMy WebLinkAboutItem D of sE4 \BF. i.NIV67/470,"\ Clfri cea.,( geacp,‘ tik--„w„) CITY HALL•211 EIGHTH STREET SEAL BEACH. CALIFORNIA 90740-6379 (562)431-2527 April 23, 2002 Department of Justice Attn: Meg Halloran, Deputy Attorney General 1300 "I" Street, Suite 125 Sacramento, CA 94244-2550 SUBJECT: CITY OF SEAL BEACH — ADOPTION OF AB 1290 IMPLEMENTATION PLAN The Redevelopment Agency of the City of Seal Beach conducted a public hearing on April 22, 2002, in accordance with our previously committed timeline to your office, and at the conclusion of the public hearing adopted the "2000-2005 Seal Beach Redevelopment Implementation Plan" (Plan"). The Plan was adopted through the adoption of Agency Resolution Number 02-2, A Resolution of the Redevelopment Agency of the City of Seal Beach Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project. A copy of the adopting resolution and the adopted Plan are included for your information and files. The City of Seal Beach appreciates the cooperation shown by your office as the City has completed the adoption of this Plan. By separate letter a copy of both documents are also being transmitted to Mr. Walter Barnes, Chief Deputy Controller, Finance, Controller of the State of California. Please contact my office at your earliest convenience if you require additional information or have questions regarding the enclosed documents. I can be reached at (562)431-2527, extension 300,or by e-mail at jbahorski @ci.seal-beach.ca.us. • . 00010F Sinccr° • I J. 7B. Bahorski Manager and xecutive Director, Seal Beach Redevelopment Agency C:\My Documents\RDA\AB 1290 Plan Adoption Letter.AG Letter.doc\LW104-23-02 L . , t Transmittal Letter to Department of Justice re: Adoption of 2000-2005 AB 1290 Implementation Plan By Redevelopment Agency of the City of Seal Beach April 23, 2002 Enclosures: (2) Enclosure 1: "2000-2005 Seal Beach Redevelopment Implementation Plan", adopted by the Seal Beach Redevelopment Agency April 22, 2002 Enclosure 2: Agency Resolution Number 02-2, A Resolution of the Redevelopment Agency of the City of Seal Beach Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project Distribution: City Council City Clerk City Attorney Director of Development Services • AB 1290 Plan Adoption Letter.AG Letter • 2 SEAL ctyccJPJ �' zeU �P'� r CITY HALL•211 EIGHTH STREET SEAL BEACH,CALIFORNIA 90740-6379 (562)431-252T April 23, 2002 Controller of the State of California Attn: Mr. Walter Barnes, Chief Deputy Controller,Finance, P. 0. Box 942850 Sacramento, CA 94250 SUBJECT: CITY OF SEAL BEACH — ADOPTION OF AB 1290 IMPLEMENTATION PLAN The Redevelopment Agency of the City of Seal Beach conducted a public hearing on April 22, 2002, and at the conclusion of the public hearing adopted the "2000-2005 Seal Beach Redevelopment Implementation Plan" (Plan"). The Plan was adopted through the adoption of Agency Resolution Number 02-2, A Resolution of the Redevelopment Agency of the City of Seal Beach Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project. A copy of the adopting resolution and the adopted Plan are included for your information and files. The City of Seal Beach appreciates the cooperation shown by your office as the City has completed the adoption of this Plan. By separate letter a copy of both documents are also being transmitted to Meg Halloran, Deputy Attorney General, Department of Justice. Please contact my office at your earliest convenience if you require additional information or have questions regarding the enclosed documents. I can be reached at (562)431-2527, extension 300, or by e-mail at jbahorski @ci.seal-beach.ca.us. Sis ahors i /City Manager and Executive Director, Seal Beach Redevelopment Agency C:\My Documents\RDA\AB 1290 Plan Adoption Letter.Controller Letter.doc\LW\04-23-02 4 Transmittal Letter to Controller re: Adoption of 2000-2005 AB 1290 Implementation Plan By Redevelopment Agency of the City of Seal Beach Apri123, 2002 Enclosures: (2) • Enclosure 1: "2000-2005 Seal Beach Redevelopment Implementation Plan", adopted by the Seal Beach Redevelopment Agency April 22, 2002 Enclosure 2: Agency Resolution Number 02-2, A Resolution of the Redevelopment Agency of the City of Seal Beach Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project Distribution: City Council City Clerk City Attorney Director of Development Services 2 AB 1290 Plan Adoption Letter.Controller Letter RESOLUTION NUMBER 02 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ADOPTING AN IMPLEMENTATION PLAN FOR THE RIVERFRONT REDEVELOPMENT PROJECT AND THE SURFSIDE REDEVELOPMENT PROJECT THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Plan for the Riverfront Redevelopment Project of the Redevelopment Agency of the City of Seal Beach (the "Agency") was approved and adopted by Ordinance No. 780 of the City Council of the City of Seal Beach (the "City Council") on March 3, 1969, and has been amended from time to time. The Redevelopment Plan for the Surfside Redevelopment Project of the Agency was approved and adopted by Ordinance No. 1134 of the City Council on December 20, 1982, and has been amended from time to time. Section 2. Health and Safety Code Section 33490 requires that each redevelopment agency that has adopted a redevelopment plan prior to December 31, 1993, adopt,after a public hearing, an implementation plan every five years containing the specific goals and objectives of the agency for the 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 implement the low and moderate income housing requirements of the Community Redevelopment Law (Health and Safety Code Section 33000,et set.). Section 3. The Agency has prepared an implementation plan (the "Implementation Plan") for the Riverfront Redevelopment Project and the Surfside Redevelopment Project (collectively, the "Project Areas") in accordance with the requirements of Health and Safety Code Section 33490. Section 4. On April 22, 2002, the Agency held a duly noticed public hearing on the proposed adoption of the Implementation Plan at which time all persons desiring to comment on or ask questions concerning the Implementation Plan were given the opportunity to do so. Prior to the public hearing on the Implementation Plan, a draft of the Implementation Plan was available for public inspection in the office of the City Clerk. Section 5. The Agency has reviewed and considered all written and oral comments, questions and concerns regarding the Implementation Plan received prior to and at the public hearing on the Implementation Plan. Section 6. The Agency hereby adopts the Implementation Plan presented to the Agency at this meeting, as revised by the staff recommendations on April 22, 2002, and on file in the office of the City Clerk and incorporated herein by reference as the implementation plan for the Project Areas pursuant to the requirements of Health and Safety Code Section 33490. Section 7. The Implementation Plan may be amended from time to time after a public hearing on the proposed amendment. Section 8. Adoption of the Implementation Plan does not constitute an approval of any specific program, project or expenditure and does not constitute a project within the meaning of Section 21000 of the Public Resources Code. C:\My Documents\RESO\2000-2005 AR 1290 Implementation Plan.RDA Reso.doc\LW\04-23-02 4 w • Section 9. The Agency hereby directs that the Implementation Plan remain on file in the office of the City Clerk and be open to public inspection. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach at eeting thereof held on the act iC. day ofL ,2002,by the following vote: AYES: Agency Members .d , , ; ., I �..,, i` / 411,0 /NOES: Agency Members ABSTAIN: Agency Members �L, ABSENT: Agency Members /4 CHAI N ATTEST: 0 ETARY STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I,Joanne M. Yeo, City Clerk of the City of Seal Beach, California, and Secretary to the Seal Beach Redevelopment Agency,do hereby certify that the foregoing resolution is the original copy of Resolution Number Dg,•,,,z on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach, at a regular meeting re�off held on the or 4E44.— day of ( ii . ,2002. _ / '/ zr e M. Yeo, City Clerk/S-cretary • Beach Redevelopment Agency g Y 2 ti AGENDA REPORT jolt � ti DATE: April 22, 2002 � TO: Chairperson and Members of the Redevelopment Agency THRU: John B. Bahorski, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: PUBLIC HEARING and ADOPTION - AB 1290 IMPLEMENTATION PLAN FOR 2000 -2005 SUMMARY OF REOUEST• Adopt the 2000 -2005 Implementation Plan through the adoption of Agency Resolution 02- 2, A Resolution of the Redevelopment Agency of the City of Seal Beach Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project, as revised by the staff recommendations. BACKGROUND: AB 1290 . added section. 33490, to the California Health and Safety Code, which requires that on or before December 31, 1994, each five years thereafter, the agency adopt, after a public hearing, an implementation plan for each redevelopment plan adopted prior to December 31, 1993. The Agency adopted the initial AB 1290 Implementation Plan in December 1994. The Agency must now adopt its Implementation Plan for 2000 -2005. The City of Seal Beach has two redevelopment plans that were adopted prior to December 31, 1993. These plans are for the River&ont and Surfside Redevelopment Project Areas. The proposed 2000 -2005 Implementation Plan addresses both project areas. MAJOR SECTIONS OF PROPOSED 1WLEMENTATION PLAN: The proposed Implementation Plan includes the following major sections: ■ Introduction ■ Relationship of Redevelopment Activities to Eliminating Blight ■ Redevelopment Agency Housing Responsibilities ■ Implementation Plan for Addressing Agency Housing Responsibilities j;t?A Agenda Item D C:MY nocum.n WM2000 -2005 AB 1290 Pl. A Stiff Re ad.cLL -17 -02 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Progress in Implementing Redevelopment Activities: The Redevelopment Agency has completed several projects and eliminated many of the blighting conditions in the Riverfront Project Area. However, the Project Area is still characterized by several parcels of undeveloped and unproductive raw land, including land from former oil and gas uses. The major redevelopment activities undertaken since adoption of the plan or currently being pursued by the Agency are summarized in the table presented below. Each activity addresses one or more of the blighting conditions identified in the Redevelopment Plan. Table 1 Progress in Implementing Redevelopment Activities Designated Current Blighting Project Parcel Land Re-Use Conditions Description Status 1 Commercial Vacant Hotel and retail This property has been deed- (Hellman Ranch project restricted for wetland Property) entitlement restoration pursuant to being sought decisions of the Coastal Commission. 2 'Residential Existing oil/gas Future low The Agency pursued a (Exxon/Chevron use density residential project on this site Property) residential use but was unsuccessful in securing a development proposal. Exxon and Chevron are currently continuing remediation work on site. • 2000-2005 AB 1290 Plan.RDA Staff Report 2 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Table 1 (Continued) • Progress in Implementing Redevelopment Activities Designated Current Blighting Project Parcel Land Re-Use Conditions Description Status 3 Residential Seal Beach Trailer Rehabilitation Oakwood Apartments (Oakwood Park and conversion to completed. Apartments, Tenant In November 2000, the Seal Seal Beach ownership Beach Redevelopment Trailer Park) Agency provided funding to LINC Housing for the purchase and rehabilitation of the 125-unit Seal Beach Trailer Park, as well as conversion of the trailer park to tenant ownership. The funding commitments for the project included: • Tax-exempt bond issuance of$6.75 Million, to be repaid by trailer park revenues; • • State MPROP loan of $1 Million; • Bridge loan to LINC housing of $1 Million, provided from the housing set-aside fund; • Loan from the redevelopment agency of $1 Million from the housing set-aside fund; and • Grant from the Redevelopment Agency of $965,000 to LINC Housing, for rental subsidy over 12 years from the date of acquisition. 4 Residential Eliminated Low density Bridgeport project developed (Bridgeport) residential as a planned residential community of 176 homes. 5 Residential Eliminated Condominium An 80-unit condominium (Riverbeach) project project was developed in 1988. 2000-2005 AB 1290 Plan.RDA Staff Report 3 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Table 1 (Continued) Progress in Implementing Redevelopment Activities Designated Current Blighting Project Parcel Land Re-Use Conditions Description Status 6 Public Eliminated Park Completed as Marina Park. (Marina Park) 7 Residential Eliminated Low density Bridgeport project developed (Bridgeport) residential as a planned residential community of 176 homes. 8 Commercial Eliminated Commercial A highway commercial center (PCH Plaza) center completed at Pacific Coast Highway and Fifth Street. 9 Commercial/ Vacant Hotel project to The Specific Plan identifies Park be pursued this area as a potential site (DWP Property) for hotel development. The property has recently been sold to a new owner, who is holding property for improved economic condition. • 10 Commercial/ Vacant Hotel project to The Specific Plan identifies ' Park be pursued this area as a potential site (DWP Property) for hotel development. The property has recently been sold to a new owner, who is holding property for improved economic condition. 11-17 Public Underutilized rail Greenbelt Completed the Greenbelt, a (Greenbelt) right-of-way City-owned open space area containing a senior facility, new main public library, and museum devoted to the Pacific Electric Railroad Red Cars. 18 Commercial Vacant Neighborhood Completed the Bay City (Bay City commercial Center, a neighborhood Center) center commercial center with 45,000 square feet of gross leasable space. • 2000-2005 AB 1290 PIan.RDA Staff Report 4 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Table 1 (Continued) Progress in Implementing Redevelopment Activities Designated Current Blighting Project Parcel Land Re-Use Conditions Description Status 19 Commercial Abandoned Hotel and retail This is a state-owned (State Lands project property deed-restricted for Property) entitlement being commercial use only. Retail sought was initially a component of the Hellman Ranch project. When the proposal for a golf course on this property did not proceed, the retail component was also put on hold. 20 Residential Vacant oil/gas fields Planned This parcel is the Hellman (Hellman and farming residential Ranch project, consisting of Ranch) community a 149-acre site located on the Seal Beach Wetlands. Originally approved for 329 dwelling units, the plan has been modified to 70 single- family units, park and • restored wetlands due to site constraints and California Coastal Commission determinations. Proposed Redevelopment Agency Funded Projects, 2001-2006 The City's Capital Improvement Plan (CIP) for FY 2001/02 through FY 2003/04 identifies the following public improvement projects using redevelopment tax increment funds: ❑ FY 2001/02 - $ 42,000: Library improvements. ❑ FY 2002/03 - $ 350,000: Corporation Yard NPDES/Water Quality Facilities. ❑ FY 2002/03 and 2003/04 - $ 2,300,000: West End Pump Station Replacement. The ability to fund these necessary public improvement projects was the result of an Agency bond refinancing approved by the Agency on December 28,2000. Redevelopment Housing Set-Aside Requirements: Legislative Requirements/Definition of Terms 2000-2005 AB 1290 Plan.RDA Staff Report 5 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Sections 33334.2 and 33334.6 of the Health and Safety Code require redevelopment agencies to set aside 20 percent of their tax increment into a low and moderate income" housing fund. The housing fund must be used to increase, improve, and preserve the supply of affordable housing within the redevelopment project area. (Section 33334.3 (c)). Section 33334.4 of the Health and Safety Code requires that the Agency expend, over the duration of this implementation plan, moneys in the low and moderate income housing fund to assist housing for persons of very low income and housing for persons of low income in at least the same proportion as the total housing units needed for each of these income groups bears to the total number of units needed for moderate, low, and very low income households in the City. For the 2000-2005 period, the City of Seal Beach has a Regional Housing Needs Allocation(RHNA)of 265 units. The income distribution of these units is as follows: ❑ Very Low Income—76 units ❑ Low Income—35 units ❑ Moderate Income—47 units ❑ Above Moderate Income— 107 units Overall, very low (48.1%) and low-income units (22.2%) represent 70.3 percent (111 units) of the total units needed for very, low, and moderate income households (158 units). Pursuant to Section 33334.4, 48.1 percent of housing set-aside funds would need to be expended to assist housing for persons and families of very low income and 22.2 percent of housing set-aside funds would need to be expended to assist housing for persons and families of low income during the duration of this Implementation Plan. In addition, the agency must expend set-aside funds during the duration of this implementation plan for housing available to families with children in at least the same proportion as the population under age 65 bears to the total population of the City. According to the 2000 Census,persons over the age 65 constitute 37.5 percent of the Seal Beach population. Thus, 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. Redevelopment Housing Set-Aside Fund Projections: As indicated within the Plan, the Riverfront Project Area has not been generating a significant amount of tax increment funds. Between 1993 and 1997, the Agency has deferred payments into the 20 percent housing set-aside fund. Repayment of the deferred set-aside fund began in 1997, when overall Agency funds were sufficient to cover pre- existing debt service requirements. 2000-2005.AB 1290 Plan RDA Staff Report 6 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report Apri122, 2002 Table 2 • Housing Set-Aside Fund Projections 2000/ 2001/ 2002/ 2003/ 2004/ 2001 2002 2003 2004 2005 20% Tax $183,396 $207,280 $211,085 $215,937 $220,911 Increment Deferral $39,000 $0 $0 $0 $0 Repayments Interest $89,000 $61,000 $61,000 $61,000 $61,000 Income Total Set- $311,396 $268,280 $272,085 $276,937 $281,911 Aside Fund The Agency has an existing fund balance of$ 711,339 in the Housing Set-Aside Fund including the 2000/2001 set-aside funds referenced above, which will increase to $1,711,339 in the event the MPROP Loan is funded and the Agency is reimbursed for the "bridge loan" approved as part of the Seal Beach Trailer Park acquisition. The $1,711339 and the projected set-aside fund amounts for Fiscal Years 2001/2002 through 2004/2005 total approximately $ 2,800,000. That amount is shown to be expended in Table 3, Five-Year Housing Assistance Goals - 2000-2005, below. Implementation Plan for Addressing Agency Housing Requirements: Existing and Proposed Housing Programs The housing programs for the five-year period of this plan are consistent with the Seal Beach Housing Element (2000), which identifies the following housing goals: ❑ Facilitate the development of a variety of housing types for all income levels to meet the existing and future housing needs of residents; ❑ Assist in the development of adequate housing to meet the needs of low and moderate income households; ❑ Address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing; ❑ Maintain and enhance the existing quality of residential neighborhoods in Seal Beach; ❑ Promote equal housing opportunities for all persons regardless of race, color, national origin, ancestry, religion, sex, marital status, or familial status. The proposed programs that address these goals are described below. A. Home Improvement Program Using set-aside funds, the Agency operates a rehabilitation program for owner- occupied and renter-occupied units. For owner-occupied units, grants of up to 2000-2005 AB 1290 Plan.RDA Staff Report 7 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 $10,000 are available to low and moderate income households to complete exterior improvements, correct code compliance issues, health and safety concerns, and install energy efficient systems, including weatherization. In addition, deferred payment loans of up to $50,000 are available to low and moderate income households. The loan becomes due and payable upon the sale of the home, or is forgiven after 20 years. In the past, the Agency has utilized set-aside funds to write off the interest on the Federal Housing Authority Title I Program loans of up to $25,000. However, the Title I program has been suspended, and the City has recently restructured the program to expand the level of participation among homeowners, as indicated above. For single-family rental units, set-aside funds are used to provide low-interest rehabilitation loans and rental subsidies for the rehabilitation of deteriorated rental housing in the City. Acquisition, Rehabilitation, Deed Restriction,and Rental Assistance of Aging Multi-Family Properties The City contains aging multi-family residential buildings that serve as a source of affordable housing in the City. As the structures age and deteriorate, increased pressure exists for demolition of the structure and construction of market-rate housing, due to the desirable location of the City and the high land costs. In order to maintain the existing affordable housing stock, the Agency will assist interested property owners and nonprofit organizations to rehabilitate/acquire deteriorated buildings and place deed restrictions on some of the multi-family units. In exchange, the property owners must maintain affordable rents on the units for specified time periods, determined on a project-by-project basis, with a maximum period of 55 years. The difference between the market-rate rent and the allowable rent, based on the occupants income, would be provided through the redevelopment agency funds for rental assistance. Tenant Ownership of Seal Beach Trailer Park/Rehabilitation-Replacement of Existing Units Tenant Ownership: To ensure the long-term preservation of Seal Beach Trailer Park as an important affordable housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue tenant ownership of the park. The City was awarded by the State Department of Housing and Community Development (HCD) a $20,000 Technical Assistance grant to facilitate conversion of the park to tenant ownership. Through the issuance of a revenue bond by the Agency, approval of a MPROP Loan by the State of California and subsequent loan to 2000-2005 AB 1290 PIan.RDA Staff Report 8 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 LINC housing, conversion of the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units have been deed-restricted as housing affordable to very low income households and 75 units have been deed- restricted as housing affordable to low/moderate income households. In addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary to repay the bond. The rental assistance is for a period of 12 years with a maximum funding commitment of$ 965,000.00. Rehabilitation-Replacement of Existing Units: In addition to the Agency assistance in the acquisition and rental assistance of the Trailer Park, a substantial rehabilitation/replacement loan program is proposed at a maximum loan amount of $50,000 for individual existing units within the Trailer Park. Specific re-sale and equity sharing provisions would apply if the property were sold to a non-qualified buyer. Mortgage Assistance Loans Using set-aside funds, the Agency would provide a mortgage assistance loan program for first-time homebuyers. For owner-occupied units, loans of up to $35,000 or 20% of the purchase price would be available to low and moderate income households to purchase an existing residence, generally a condominium or mobile home in the Seal Beach Trailer Park. Specific re-sale and equity sharing provisions would apply if the property were sold to a non-qualified buyer. The loan becomes due and payable upon the sale of the home, or is forgiven after 10 years. B. Housing Production and Assistance Goals Table 3 provides estimates in terms of number of households to be assisted and amount of housing set-aside fund to be expended over the five-year period (2000- 2005) of this implementation plan. 2000-2005 AB 1290 PIan.RDA Staff Report 9 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Table 3 Five-Year Housing Assistance Goals - 2000-2005 Households Set-Aside Funds Program Assisted to be Expended 1. Home Improvement Loan/Grant 10 $ 6 e 0.03 Program 4.0077 2. Acquisition, Rehabilitation, Deed 15 $ 92 4 Restriction and Rental Assistance of Aging Multi-Family Properties 3. Tenant Ownership of Seal Beach Trailer Park Acquisition of Park (Loan)1 120 ($1,Q00,000) Rental Subsidy for 5 Years2 25 $ 600;000 Replacement/Rehabilitation 10 $ 500,0005 4. Mortgage Assistance Loans 5 $ 17 Total 65 $ 2,800,000 Notes: 1. The $1,000,000 loan to LINC for acquisition of the park will be repaid back to the Agency within the time frame of this Implementation Plan. These funds are proposed to be expended upon receipt within the time frame of this Implementation Plan. 2. Total Rental Subsidy is for 12 Years and will be allocated in future plans as appropriate. Total subsidy is not to exceed $965,000.00 3. $ 300,000 of funding for this program will not be available until the MPROP Loan is funded by the State of California and the Agency bridge loan is reimbursed. 4. $ 425,000 of funding for this program will not be available until the MPROP Loan is funded by the State of California and the Agency bridge loan is reimbursed. 5. $ 200,000 of funding for this program will not be available until the MPROP Loan is funded by the State of California and the Agency bridge loan is reimbursed. 6. ' $ 75,000 of funding for this program will not be available until the MPROP Loan is funded by the State of California and the Agency bridge loan is reimbursed. The Agency has discretion to re-allocate funding levels among the various programs identified above, with the understanding that the allocated funds must total the $2,800,000 indicated. In addition, the Agency needs to allocate funds to the proposed programs in such a manner as will allow the Agency to comply with the following requirements discussed on page 6 of this Staff Report: ❑ 70.2 percent of the housing set-aside funds would need to be expended to assist housing for persons with very low and low income during the duration of this Redevelopment Implementation Plan. ❑ 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. 2000-2005 AB 1290 Plan.RDA Staff Report 1 0 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 Please note that the above recommendations are different than presented within the 2000 2005 AB 1290 Implementation Plan document prepared by Cotton/Bridges/Associates, provided as Attachment 2, and the document will be revised to reflect these final amendments. INTENT OF PROPOSED ASSISTANCE PROGRAMS: These programs are proposed to comply with the provisions of the State of California regarding the use of Redevelopment Agency "Housing Set-Aside" funds. The programs have been designed to assist identified groups of low- and moderate-income persons and families that reside or are anticipated to reside within the City of Seal Beach over the time period of 2000-2005. These programs do not propose the use of funds for new construction of living units within the City, with the exception of the replacement program for units within the Seal Beach Trailer Park. All of the other programs are proposed to assist current residents, both owners and renters, who would qualify under the various program guidelines established within the Seal Beach Housing Assistance Program Guidelines. ENVIRONMENTAL IMPACT: Adoption of the Implementation Plan does not constitute an approval of any specific program, project or expenditure and does not constitute a project within the meaning of Section 21000 of the Public Resources Code. FISCAL IMPACT: No direct fiscal impact upon Agency or City. Funds are available for the completion of the proposed housing assistance programs, with the exception of the unit rehabilitation/replacement program for the Seal Beach Trailer Park, and portions of future funding for the Home Improvement Program, the Acquisition, Rehabilitation, Deed Restriction and Rental Assistance of Aging Multi-Family Properties Program, and the Mortgage Assistance Loan Program. Those funds will be available upon funding the MPROP Loan by the State of California and the reimbursement of the Agency"bridge loan" as indicated in the footnotes to Table 3, Five-Year Housing Assistance Goals - 2000-2005, above. Adopted Implementation Plan will require additional staff resources to fully implement the programs/activities adopted in the Implementation Plan. Program implementation costs are an eligible expense of the Housing Set-Aside Fund Account. RECOMMENDATION: Adopt the 2000-2005 AB 1290 Implementation Plan through the adoption of Agency Resolution 02-2, A Resolution of the Redevelopment Agency of the City of Seal Beach 2000-2005 AB 1290 Plan.RDA Staff Report 11 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April22, 2002 Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project,as revised by the staff recommendations. NOTED A. APPROVE . w 11,, i Tee Whittenberg John r'. Bahorski, Executive Director Director of Development Servi - Re,;'elopment Agency Attachments: (3) Attachment 1: Agency Resolution 02-2,A Resolution of the Redevelopment Agency of the City of Seal Beach . Adopting an Implementation Plan for the Riverfront Redevelopment Project and the Surfside Redevelopment Project Attachment 2: "2000-2005 Seal Beach Redevelopment Implementation Plan", prepared for the Seal Beach Redevelopment Agency by Cotton/Bridges/Associates, dated March 2002 Attachment 3: 2002 Orange County Income Guidelines • • 2000-2005 AB 1290 Plan.RDA Staff Report 12 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 ATTACHMENT 1 AGENCY RESOLUTION 02-2, A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ADOPTING AN IMPLEMENTATION PLAN FOR THE RIVERFRONT REDEVELOPMENT PROJECT AND THE SURFSIDE REDEVELOPMENT PROJECT 2000-2005 AB 1290 Plan.RDA Staff Report 13 Public Hearing and Adoption—AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 ATTACHMENT 2 "2000-2005 SEAL BEACH REDEVELOPMENT IMPLEMENTATION PLAN", PREPARED FOR THE SEAL BEACH REDEVELOPMENT AGENCY BY COTTON/BRIDGES/ASSOCIATES, DATED MARCH 2002 • 2000-2005 AB 1290 Plan.RDA Staff Report 17 2000-2005 Seal Beach Redevelopment Implementation Plan Seal Beach Redevelopment Agency April 2002 Cotton/Bridges/Associates 747 E. Green Street, Suite 300 Pasadena, CA 91101 #1244.00 Table of Contents page I. Introduction 1 II. Relationship of Redevelopment Activities to Eliminating Blight 4 III. Redevelopment Agency Housing Responsibilities 9 IV. Implementation Plan for Addressing Agency Housing Requirements 10 List of Tables 1. Relationship of Goals to Eliminating Blight 6 2. Progress in Implementing Redevelopment Activities 7 3. Tax Increment Projections 9 4. Housing Set-Aside Fund Projections 13 5. Five-Year Housing Assistance Goals 16 List of Figures 1 . Redevelopment Project Areas 3 I . Introduction A. Purpose and Intent The Community Redevelopment Law (Health and Safety Code Section 33000 and following) (the "law') requires that each redevelopment agency in California adopt an implementation plan every five years. The implementation plan must present (1) specific goals and objectives of the agency; (2) specific projects and expenditures proposed over the five-year period; and (3) the relationship of the goals, objectives, and programs to eliminating blight and meeting affordable housing requirements. The implementation plan must also include certain information relating to an agency's affordable housing program. B. Organization of the Implementation Plan This document is the implementation plan for the Seal Beach Redevelopment Agency (the "Agency") for the five-year period beginning December 31, 1999. This Plan is organized into two major sections. The first section sets forth a five-year strategy for the elimination of blight in the Agency's Project Areas. The second section addresses the Agency's low and moderate income housing obligations and use of the housing set-aside funds in the project areas. Seal Beach Redevelopment Implementation Plan Page 1 C. Seal Beach Redevelopment Plan The Seal Beach Redevelopment Agency has adopted Redevelopment Plans for two project areas: ❖ The Riverfront Redevelopment Project Area, initially adopted in 1969, and amended in 1974, 1975, 1981, 1986, 1989 and 1994; and • The Surfside Project Area, initially adopted in 1982, and amended in 1994. Riverfront Redevelopment Project Area The Riverfront Redevelopment Project Area lies primarily along the San Gabriel River Channel, with a small strip stretching northwest to southeast through the Old Town Portion of Seal Beach (see Figure 1). The Project Area originally contained 104 acres, but subsequent amendments have increased the total area to 205 acres. Approximately 160 acres are designated for residential use while approximately 40 acres are allocated for commercial uses. The remaining acreage is set aside for public use including facility improvements. The Redevelopment Plan for the Riverfront Redevelopment Project Area ceases to be effective with regard to the original territory of the project area in 2009, and ceases to be effective with regard to the remainder of the project area in 2014. Surfside Project Area The Surfside Redevelopment Project was established in December 1982 and last amended in 1993. The boundaries included the beach community of Surfside and the ocean out to the three- mile limit. The limited purpose of the Agency in adopting the Redevelopment Plan for this project area (which was permissible under the Redevelopment Law at that time) was to eliminate conditions of blight in the Project Area by building a seawall to protect the ocean front residential uses from inundation during heavy storms and high tides. The wall was constructed at a cost of $250,000, the amount of which was advanced by the City of Seal Beach to accomplish the actual construction. All of the debt was paid back within a few years and at the present time the project is inactive from the standpoint of further public involvement or generation of tax increment from the Project Area. Without an amendment to the Redevelopment Plan, the Agency's authority to establish loans, advances, and indebtedness with respect to this Project Area expired in 1987. Since the Project Area no longer has any debt outstanding, the tax increment revenues have been returned to the other taxing agencies. The Redevelopment Plan for this Project Area will cease to be effective in 2022. Page 2 Seal Beach Redevelopment Implementation Plan Housing Resources 1�. .,....I ,,m t -` `.' !..:,,;.,./...,...--` • Jam— ' [ ,•- j' V I, ?.. i ' 1 ` : :Q h ;: 1, , I ',=`-i �' .I ; I ,-- LOS ALAMITOS _L 1.� -., = ! I ' ORANGE _� i, ` `r= TF i CO UNTY { ARMED FORCES ._ (1.. w-�J7 RESERVE CENTER LONG BEACH— -- •�.:;., -�. ' _, • 3 22 _ _4•4...: it ` WES INSTER• ;.� .- -..'= �`1.. t SEAL BEACH• LA COUNT`( —: l__�- 1�� WESTMINSTER AVE UNITED STATES t-= ::,L .. .. . NAVAL .,....-,...:77. :^ ,4,' ,4•aoJ� -,.-0 WEAPONS STATION _."_-// -.• II <;,4i * #rw ����� , ANA t :•Y 0 -E ___ ` :' P44 ' A , N• 0.-. — �.:: WILD E REF GE JI �,. . 1 O 1.,:_. / , ,e4r7,..,?: � 'BOLSA CHICA CHANNEL — zy .%� %j/ �''.' - �..= --HUNTINGTON I 3" \��� i BEACH / / , • 2 ,-,•.:.-::'......,‘,,,, - = L < < '` I = PACIFIC __ ----�_ OCEAN \z5 a 1.I. . - \ , „ N:. Source:Seal Beach Redevelopment Plan, 1994;CBA,Inc.,October 2000 II*"1 City Boundary 1 Riverfront Redevelopment Area 2 Surfside Redevelopment Area 4 Figure 1 1 Redevelo ment Protect Areas North 0 2,000 4,000 ft Redevelopment 1 Seal Beach Redevelopment Implementation Plan Page 3 II . Relationship of Redevelopment Activities to Eliminating Blight The Implementation Plan must (i) describe specific goals and objectives of the Agency for each project area; (ii) identify specific programs, including potential projects, and estimates of expenditures proposed to be made in the next five years; and (iii) identify specific projects, and describe how the goals, objectives, and programs will eliminate blight in the project area. The Surfside Project Area has no active or planned programs, the Agency no longer receives tax increment funds in connection with the Surfside Project Areas, and the redevelopment plan no longer permits the Agency to incur indebtedness in connection with the Surfside Project Area. Therefore, this section of the Implementation Plan will discuss only the Riverfront Project Area. A. Blight Conditions Assessment 1. Blighting Conditions Eliminating blight is a fundamental objective of the Seal Beach Redevelopment Agency. At the time of adoption, the Riverfront Project Area was characterized by undeveloped and unproductive raw land, insufficient street systems and vehicular access, inadequate street lighting, absence of utility services; and inadequate flood control facilities. In addition, the removal and relocation of the Los Angeles Water and Power Steam Plant and the Dow Chemical Company Plant led to losses in the land value of the area. Although much of the Project Area has been improved by the Agency or by private development to eliminate or reduce this blight, a number of blighted parcels remain in the Project Area. 2. Goals and Objectives The goals and objectives for the Riverfront Project Area include: ❖ Eliminate the conditions of blight existing in the Project Area; - Continue to pursue development projects for the remaining blighted parcels in the Riverfront Project Area. ❖ Ensure, to the extent possible, that the causes of blight will either be eliminated or protected against; - Provide ongoing rental assistance and rehabilitation loan assistance to residents of the Seal Beach Trailer Park Page 4 Seal Beach Redevelopment Implementation Plan ❖ Encourage participation of owners and tenants in the redevelopment of the Project Area; - Assist property owners and nonprofit organizations to rehabilitate/acquire deteriorated apartment buildings and place deed restrictions on some of the multi- family units through the Acquisition, Rehabilitation, Deed Restriction, and Rental Assistance of Aging Multi Family Properties Program. ❖ Encourage and ensure the rehabilitation, rebuilding, and development of the Project Area; - Provide funds for housing rehabilitation to 10 households through the Home • Improvement Program. - Provide mortgage assistance loans to 5 households. ❖ Encourage and foster the economic revitalization of the Project Area; - Pursue development of a Hotel project on the DWP property ❖ Redevelop and rebuild the public facilities in the Project Area to provide safer and more efficient public services. . - Complete the West End Pump Station Replacement to eliminate flooding during high storm water runoff incidents. - Complete improvements to the City Library. - Complete the Corporation Yard NPDES/Water Quality Facilities. Seal Beach Redevelopment Implementation Plan Page 5 • Each implementation plan must contain an explanation of how the Goals and Objectives will eliminate blight within the Project area [Section 33490(a)(1)(A)]. Table 1 shows the relationship of the Agency's goals and objectives to the elimination of blight in the Project Area. Table 1 Relationship of Goals to Eliminating Blight Blighting Conditions Eliminated Goal Physical Economic Conditions Conditions Eliminate the conditions of blight ✓ ✓ existing in the Project Area Ensure, to the extent possible, that the causes of blight will either be ✓ ✓ eliminated or protected against Encourage participation of owners and tenants in the redevelopment of ✓ ✓ the Project Area Encourage and ensure the rehabilitation, rebuilding, and ✓ ✓ development of the Project Area Encourage and foster the economic ✓ revitalization of the Project Area Redevelop and rebuild the public • facilities in the Project Area to ✓ provide safer and more efficient public services 3. Redevelopment Activities Undertaken in the Project Area The Redevelopment Agency has completed several projects and eliminated many of the blighting conditions in the Riverfront Project Area. However, the Project Area is still characterized by several parcels of undeveloped and unproductive raw land, including land from former oil and gas uses. The major redevelopment activities undertaken since adoption of the plan or currently being pursued by the Agency are summarized in Table 2. Each activity addresses one or more of the blighting conditions identified in the Redevelopment Plan. Page 6 Seal Beach Redevelopment Implementation Plan Table 2 Progress in Implementing Redevelopment Activities Current Blighting Project Parcel Designated Land Re-use Conditions Description Status 1 Commercial Vacant Hotel and retail This property has been deed-restricted (Hellman Ranch.Property) project for wetland restoration pursuant to entitlement decisions of the Coastal Commission. being sought 2 Residential Existing Future low The Agency pursued a residential project (Exxon/Chevron Property) oil/gas use density on this site but was unsuccessful in residential use securing a development proposal. Exxon and Chevron are currently continuing remediation work on site. 3 Residential Seal Beach Rehabilitation Oakwood Apartments Completed (Oakwood Apartments, Trailer Park and conversion In November 2000, the Seal Beach Seal Beach Trailer Park) to tenant Redevelopment Agency provided ownership funding to LINC Housing for the purchase and rehabilitation of the 125- unit Seal Beach Trailer Park, as well as conversion of the trailer park to tenant ownership. The funding commitments for the project included: Tax-exempt bond issuance of $6.75 million, to be repaid by trailer park revenues; + State MPROP loan of$1 million; + Bridge loan to LINC housing of $1 million, provided from the housing set-aside fund; + Loan from the redevelopment agency of $1 million from the housing set- aside fund; and v Grant from the Redevelopment Agency of $965,000 to LINC Housing, for rental subsidy over 12 years from the date of acquisition. 4 Residential Eliminated Low density Bridgeport project developed as a (Bridgeport) residential planned residential community of 176 homes. 5 Residential Eliminated Condominium An 80-unit condominium project was (Riverbeach) project developed in 1988. 6 Public Eliminated Park Completed as Marina Park. (Marina Park) Seal Beach Redevelopment Implementation Plan Page 7 Table 2 Progress in Implementing Redevelopment Activities Current Blighting Project Parcel Designated Land Re-use Conditions Description Status 7 Residential Eliminated Low density Bridgeport project developed as a (Bridgeport) residential planned residential community of 176 homes. 8 Commercial Eliminated Commercial A highway commercial center completed (PCH Plaza) center at Pacific Coast Highway and Fifth Street. 9 Commercial/ Park Vacant Hotel project to The Specific Plan identifies this area as a (DWP Property) be pursued potential site for hotel development. The property has recently been sold to a new owner, who is holding property for improved economic condition. 10 Commercial/ Park Vacant Hotel project to The Specific Plan identifies this area as a (DWP Property) be pursued potential site for hotel development. The property has recently been sold to a new owner, who is holding property for improved economic condition. 11-17 Public Underutilized Greenbelt Completed the Greenbelt, a City-owned (Greenbelt) rail right-of- open space area containing a senior way facility, new main public library, and museum devoted to the Pacific Electric Railroad Red Cars. 18 Commercial Vacant Neighborhood Completed the Bay City Center, a (Bay City Center) commercial neighborhood commercial center with center 45,000 square feet of gross leasable space. 19 Commercial Abandoned Hotel and retail This is a state-owned property deed- (State Lands Property) oil/gas uses project restricted for commercial use only. entitlement Retail was initial a component of the being sought Hellman Ranch project. When the proposal for a golf course on this property did not proceed, the retail component was also put on hold. 20 Residential Vacant Planned This parcel is the Hellman Ranch (Hellman Ranch) .oil/gas fields residential project, consisting of a 149-acre site and farming community located on the Seal Beach Wetlands. Originally approved for 329 dwelling units, the plan has been modified to 70 single-family units due to site constraints and California Coastal Commission determinations. Page 8 Seal Beach Redevelopment Implementation Plan B. Five-Year Plan for the Elimination of Blight 1. Five-Year Goals and Objectives The goals and objectives listed in Section A.2 remain appropriate for the 2000-2005 period. These goals and objectives address blighting conditions within the project area, and provide general direction for Agency activities over the next five years. 2. Financial Assessment The primary funding source for redevelopment agencies is tax increment revenues. Briefly stated, and somewhat simplified, tax increment is the. difference between property tax revenue generated in a given year and the revenue generated in the year the redevelopment plan was adopted. This difference in property tax revenue, the tax increment, is allocated to the redevelopment agency annually for the purpose of eliminating the blighting conditions.contained in the redevelopment project area. On an annual basis, the Riverfront Project Area generates approximately $1,000,000 in tax increment. The majority of tax increment generated has been, and will continue to be, used to repay debt. Table 3 Tax Increment Projections Fiscal Year: 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 Tax Increment Revenue $991,980 $1,036,398 $1,055,426 $1,079,686 $1,104,553 Debt Service ($672,665) ($676,448) ($674,760) ($672,362) ($674,530) Housing Set- Aside ($183,396) ($207,280) ($211,085) ($215,937) ($220,911) Administration ($20,000) ($20,000) ($20,000) ($20,000) ($20,000) Available Tax Increment $115,920.00 $132,671.00 $149,582.00 $171,388.00 $189,113.00 3. Five-Year Programs, Projects, and Estimated Expenditures The City's Capital Improvement Plan (CIP) for FY 2001/02 through FY 2005/06 identifies the following public improvement projects using redevelopment tax increment funds: • FY 2001/02 - Library improvement for $42,000 • FY 2002/03 - Corporation Yard NPDES/Water Quality Facilities for $350,000 • FY 2002/03 - West End Pump Station Replacement for $2,300,000 Seal Beach Redevelopment Implementation Plan Page 9 III . Redevelopment Agency. Housing Responsibilities A fundamental purpose of redevelopment is to increase and improve the supply of affordable housing in the community. The Law contains three types of requirements with respect to affordable housing: ❖ Inclusionary Requirements (Section 33413 (b)): that a certain portion of new and substantially rehabilitated housing be available at affordable housing cost to, and occupied by, persons and families of low and moderate income. • Replacement requirements (Section 33413 (a)): that certain low and moderate income housing units destroyed or removed as part of a redevelopment project must be replaced with an affordable unit. ❖ Set-aside requirements (Sections 33343.2, 33343.4, and 33343.6): that not less than 20 percent of tax increment revenue allocated to the agency must be expended to increase, improve, and preserve the supply of low and moderate income housing in the City. A. Inclusionary Housing Requirements Health and Safety Code Section 33413 (b)(1) requires that: ❖ At least 30 percent of all new and substantially rehabilitated units developed by an agency be available at affordable housing costs to persons and families of low and moderate income and be occupied by such persons and families, of which not less than 50 percent be available at affordable housing costs to and occupied by very low income households. • At lease 15 percent of all new and substantially rehabilitated units developed within the project area by other public and private entities be available at affordable costs to persons and families of low and moderate income and be occupied by such persons and families, of which not less than 40 percent be available at affordable housing costs to very low income households. Substantial rehabilitation means rehabilitation in the value that constitutes 25 percent of the after rehabilitation value of the unit, inclusive of land value. Specifically: • Substantial Rehabilitation Occurred Prior to January 1, 2002: Substantially rehabilitated units refer to substantially rehabilitated multi-family rented units with three or more units, or agency-assisted substantially rehabilitated single- family units with one or two units. Page 10 Seal Beach Redevelopment Implementation Plan • Substantial Rehabilitation Occurred on or After January 1, 2002: Substantially rehabilitated refers to Agency-assisted substantially rehabilitated multi-family rented units with three or more units, or agency-assisted substantially rehabilitated single-family units with one or two units. These requirements do not apply to the Riverfront Project Area, which was formed prior to January 1, 1976 and to which territory was last added prior to January 1, 1976. The requirements do, however, apply to the Surfside Project Area. 1. Housing Production in the Surfside Project Area Existing Housing Production and Deed-Restriction Project Areas are subject to housing production requirements, which ensure that a specified percentage of new or rehabilitated housing is available at prices affordable to low and moderate income households. New Construction:Since adoption of the Surfside Project Area, only limited residential construction has occurred, primarily as single-lot demolition/replacement or infill development. Rehabilitated Units: No housing unit has been substantially rehabilitated in the Project Area. Deed Restricted Units: No housing unit has been deed-restricted as affordable housing for low and moderate income households in the Project Area. Existing Affordable Housing Production Requirements The limited residential development in the Surfside Project Area has generated a small affordable housing production requirement. This requirement can be met by the 100 deed restricted units in the Seal Beach Trailer Park, located in the Riverfront Project Area. These units can be counted on a two for one basis in the Surfside project area for a total of 50 units, which would more than offset the requirement generated by the limited residential development. Future Production Potential The Surfside Redevelopment Project Area is built out with no potential for future production. Seal Beach Redevelopment Implementation Plan Page 11 B. Replacement Housing Requirements 1. Legislative Requirements/Definition of Terms When residential units occupied by low and moderate income households are destroyed or otherwise removed from the low and moderate income housing market as part of a redevelopment project that is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the Agency must rehabilitate, develop, or construct; or cause to be rehabilitated, developed, or constructed, for rental or for sale to persons and families of low and moderate income, and equal number of replacement dwelling units that meet certain criteria (Section 33413 (a)). In addition, 100 percent of replacement housing units shall be at affordable housing cost to the same income level as the removed units (Section 33413 (a)). 2. Existing Replacement Housing Obligations No housing unit has been destroyed or removed from either Project Area due to Agency action. 3. Anticipated Removal of Units During Five-Year Plan The Agency does not anticipate any redevelopment activity that will involve the removal or demolition of housing units in either project area. However, should removal or demolition of housing occur as a result of redevelopment activities in the future, the Agency will ensure that replacement housing is provided according to the requirements specified by the CRL. C. Redevelopment Housing Set-Aside Requirements 1. Legislative Requirements/Definition of Terms Sections 33334.2 and 33334.6 of the Health and Safety Code require redevelopment agencies to set aside 20 percent of their tax increment into a low and moderate income housing fund. The housing fund must be used to increase, improve, and preserve the supply of affordable housing within the redevelopment project area. (Section 33334.3 (c)). Section 33334.4 of the Health and Safety Code requires that the Agency expend, over the duration of this implementation plan, moneys in the low and moderate income housing fund to assist housing for persons of very low income and housing for persons of low income in at least the same proportion as the total housing units needed for each of these income groups bears to • the total number of units needed for moderate, low, and very low income households in the City. For the 2000-2005 period, the City of Seal Beach has a Regional Housing Needs Allocation (RHNA) of 265 units. The income distribution of these units is as follows: Very Low Income - 76 units Low Income - 35 units Page 12 Seal Beach Redevelopment Implementation Plan Moderate Income - 47 units Above Moderate Income - 107 units • Overall, very low (48.1%) and low-income units (22.2%) represent 70.3 percent (111 units) of the total units needed for very, low, and moderate income households (158 units). Pursuant to Section 33334.4, not less than 48.1 percent of the housing set-aside funds would need to be expended to assist very low income households and not less than 22.2 percent must be spent to assist low income households for the duration of this Redevelopment Implementation Plan. In addition, the agency must expend set-aside funds during the duration of this implementation plan for housing available to families with children in at least the same proportion as the population under age 65 bears to the total population of the City. According to the 2000 Census, persons over the age 65 constitute 37.5 percent of the Seal Beach population. Thus, 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. 2. Redevelopment Housing Set-Aside Fund Projections As indicated before, the Riverfront Project Area has not been generating a significant amount of tax increment funds. Between 1993 and 1997, the Agency has deferred payments into the 20 percent housing set-aside fund. Repayment of the deferred set-aside fund began in 1997. Table 4 • Housing Set-Aside Fund Projections 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 20%Tax Increment $183,396 $207,280 $211,085 $215,937 $220,911 Deferral Repayments $39,000 $0 $0 $0 $0 Interest Income $89,000 $61,000 $61,000 $61,000 $61,000 Total Set-Aside Fund $311,396 $268,280 $272,085 $276,937 $281,911 Seal Beach Redevelopment Implementation Plan Page 13 IV. Implementation Plan for Addressing Agency Housing Requirements A. Existing and Proposed Housing Programs The housing programs for the five-year period of this plan are consistent with the Seal Beach Housing Element (2000), which identifies the following housing goals: ❖ Facilitate the development of a variety of housing types for all income levels to meet the existing and future housing needs of residents; Assist in the development of adequate housing to meet the needs of low and moderate income households; ❖ Address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing; • Maintain and enhance the existing quality of residential neighborhoods in Seal Beach; ❖ Promote equal housing opportunities for all persons regardless of race, color, national origin, ancestry, religion, sex, marital status, or familial status. The programs that address these goals are described below. 1. Home Improvement Program Using set-aside funds, the Agency operates a rehabilitation program for owner-occupied and renter-occupied units. For owner-occupied units, grants of up to $10,000 are available to low and moderate income households to complete exterior improvements, correct code compliance issues, health and safety concerns, and install energy efficient systems including weatherization. In addition, deferred payment loans of up to $50,000 are available to low and moderate income households. The loan becomes due and payable upon the sale of the home, or is forgiven after 20 years. In the past, the Agency has utilized set-aside funds to write off the interest on the Federal Housing Authority Title I Program loans of up to $25,000. However, the Title I program has been suspended, and the City has recently restructured the program to expand the level of participation among homeowners. For rental units, set-aside funds are used to provide low-interest loans and rebates for the rehabilitation of deteriorated rental housing in the City. In exchange, the property owners must maintain affordable rents on the units for five years. Page 14 Seal Beach Redevelopment Implementation Plan 2. Acquisition, Rehabilitation, and Deed Restriction of Aging Multi-Family Properties The City contains several aging multi-family residential buildings that serve as a source of affordable housing in the City. As the structures age and deteriorate, increased pressure exists for demolition of the structure and construction of market-rate housing, due to the desirable location of the City and the high land costs. In order to maintain the existing affordable housing stock, the Agency will assist nonprofit organizations to acquire and rehabilitate deteriorated buildings, or place deed restrictions on some of the multi-family units. In exchange, the property owners must maintain affordable rents on the units for specified time periods, determined on a project-by- project basis, with a maximum period of 55 years. The difference between the market-rate rent and the allowable rent, based on the occupant's income, would be provided through the redevelopment agency funds for rental assistance. 3. Tenant Ownership of Seal Beach Trailer Park Tenant Ownership: To ensure the long-term preservation of Seal Beach Trailer Park as an important affordable housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue tenant ownership of the park. The City was awarded by the State Department of Housing and Community Development (HCD) a $20,000 Technical Assistance grant to facilitate conversion of the park to tenant ownership. Through the issuance of a revenue bond by the Agency, approval of a MPROP Loan by the State of California and subsequent loan to LINC housing, conversion of the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units have been deed-restricted as housing affordable to very low income households and 75 units have been deed-restricted as housing affordable to low/moderate income households. In addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary to repay the bond. The rental assistance is for a period of 12 years with a maximum funding commitment of$ 965,000.00. Rehabilitation-Replacement of Existing Units: In addition to the Agency assistance in the acquisition and rental assistance of the Trailer Park, a substantial rehabilitation/replacement loan program is proposed at a maximum loan amount of $50,000 for individual existing units within the Trailer Park. Specific re-sale and equity sharing provisions would apply if the property were sold to a non-qualified buyer. 4.Mortgage Assistance Loans Using set-aside funds, the Agency would provide a mortgage assistance loan program for first- time homebuyers. For owner-occupied units, loans of up to $35,000 or 20% of the purchase price would be available to low and moderate income households to purchase an existing residence, generally a condominium or mobile home in the Seal Beach Trailer Park. Specific re- sale and equity sharing provisions would apply if the property were sold to a non-qualified buyer. The loan becomes due and payable upon the sale of the home, or is forgiven after 10 years. Seal Beach Redevelopment Implementation Plan Page 15 B. Housing Production and Assistance Goals Table 4 provides an estimate in terms of number of households to be assisted and amount of housing set-aside fund to be expended over the five-year period (2000-2005) of this implementation plan. Table 5 Five-Year Housing Assistance Goals 2000-2005 Households Set-Aside Funds Program Assisted to be Expended 1. Home Improvement Program 10 $600,000 2. Acquisition, Rehabilitation, and Deed Restriction of Aging Multi-Family Properties 15 $925,000 3. Tenant Ownership of Seal Beach Trailer Park Acquisition of Park (Loan)' 120 $1,000,000 Rental Subsidy for 5 Years2 25 $600,000 Replacement/Rehabilitation3 10 $500,000 4. Mortgage Assistance Loans 5 $175,000 Total $2,800,000 Notes: 1. The$1,000,000 loan to LINC for acquisition of the park will be repaid back to the Agency within the time frame of this Implementation Plan. 2. The total rent subsidy is for 12 years and will be allocated in future plans as appropriate. Total subsidy is not to exceed $965,000. 3. Funding for this program will not be available until the State of California funds the MPROP Loan and the Agency bridge loan is reimbursed. Page 16 Seal Beach Redevelopment Implementation Plan Public Hearing and Adoption-AB 1290 Implementation Plan Redevelopment Agency Staff Report April 22, 2002 ATTACHMENT 3 2002 ORANGE COUNTY INCOME GUIDELINES Provided below for the information of the Agency are the current income limits for Orange County that define very low,-lower, median, and moderate income: Number of Persons In Family Income Limits Very Low Lower Median Moderate Income Income Income Income 1 26,450 38,100 52,900 63,500 2 30,250 43,500 60,500 72,550 3 . 34,000 48,950 68,050 81,650 4 37,800 54,400 75,600 90,700 5 40,800 58,750 81,650 97,950 6 43,850 63,100 87,700 105,200 7 46,850 67,450 93,750 112,450 8 49,900 71,800 99,800 119,700 * * * * 2000-2005 AB 1290 Plan.RDA Staff Report 18