HomeMy WebLinkAboutItem BAGENDA REPORT
DATE: January 28, 2002
TO: Chairperson and Members of the Redevelopment Agency
THRU: John B. Bahorski, Executive Director
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: AUTHORIZATION FOR STAFF TO WORK WITH
HOUSING PROVIDERS TO ADDRESS THE LACK OF
LOW - MODERATE INCOME HOUSING
OPPORTUNITIES WITHIN SEAL BEACH
SUMMARY OF REOUEST:
Authorize the Executive Director and staff to work with housing providers to address the
lack of low - moderate income housing opportunities within Seal Beach.
On October 22, 2001 the Agency considered a staff report and received a presentation
regarding the possibility of working with Mercy House to address the lack of low -
moderate income housing opportunities within Seal Beach. As the Agency is aware,
Mercy House is still actively pursuing several opportunities within the community.
City staff have been contacted by other persons and organizations that also wish to
explore opportunities and develop relationships with the Redevelopment Agency in
regards to the utilization of the Agency "housing set - aside" funds as a financing
mechanism to encourage the provision and retention of low- moderate income housing
within the City.
As indicated in a City Council Staff Report of January 14, 2002 (also on the Agency
Agenda this evening):
"As of June 30, 2002, the Redevelopment Agency Housing Set -Aside Fund
will have the following excess fund amounts that will be subject to the
50% additional excess surplus amount provisions of Section
33334.12(a)(2):
o Surfside Project Area: $174,000.00
❑ River Redevelopment Project Area: $ 360.000.00
POP Agenda Item 13
C:Wy Docu nU\RDAU w -Mod Housing PaMicipetion .RDA Staff Re dAwTW01 -23 -02
Authorization for Staff to work with Housing Providers
to Address the Lack ofLow-Moderate Income Housing Opportunities
Redevelopment Agency Staff Report
January 28, 2002
Total Excess Housing Set -Aside Funds $ 534, 000.00
If these excess surplus funds are not spent or encumbered by June 30,
2002, the Agency will then be required to allocate a minimum amount of
$267,000 in fiscal year 2002 -2003 from other Agency revenues to the
Housing Set -Aside Fund for use in increasing or improving the supply of
low- and moderate- income housing within the community..
Further, the Agency does not have unallocated funds sufficient to provide
the potential additional funding of $267,000. In this case, those funds
would have to be provided by the City from the General Fund as a loan to
the Agency. This would have a significant effect on the programs and
services that are funded by the General Fund."
Approval of the staff request will allow the Agency Executive Director and other City
staff to work with various other persons and organizations that also wish to explore
opportunities and develop relationships with the Redevelopment Agency in regards to the
utilization of the Agency "housing set - aside" funds as a financing mechanism to
encourage the provision and retention of low - moderate income housing within the City.
Given the above - stated concerns, it is very important that the City staff be allowed the
opportunity to discuss various projects for potential participation by the Agency in a
timely manner.
Several recent contacts with housing providers have focused on the possible private
acquisition of existing apartment buildings within the City, and the Agency providing
second trust deeds at either reduced or zero interest rates to rehabilitate the units and rent
to low - moderate income persons and families. The assisted units would then be restricted
to certain rental rates to ensure occupancy by the target income population groups.
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
25,800
36,750
51,600
61,900
2
29,500
42,000
58,950
70,750
3
33,150
47,250
66,350
79,600
4
36,850
52,500
73,700
88,450
5
39,800
56,700
79,600
95,550
6
42,750
60,900
85,500
102,600
7
45,700
65,100
91,400
109,700
8
48,650
69,300
97,300
116,750
Low -Mod Housing Paaiciparion.RDA Stan Re ft
J
Authorization for Staff to work with Housing Providers
to Address the Lack ofLow-Moderate Income Housing Opportunities
Redevelopment Agency StafReport
January 28, 2002
It is the strong belief of City staff that many existing residents within the community,
particularly those residing within multiple family apartment developments fall within the
lower and moderate income levels, as can be seen by the above income level information.
If that is in fact the case, then in the large majority of cases, the existing residents would
continue to live within their upgraded living units and not be required to spend more than
certain specified amounts of their income on rent. This could result in existing lower and
moderate income persons and families being able to stay at their existing residence,
which has upgraded and remodeled, and having potentially more available discretionary
income.
FISCAL IMPACT:
None at this time. Staff resources would be allocated to meet and negotiate with potential
housing providers regarding specific project proposals. Any formal commitment of
Agency funds would require formal approval and authorization by the Agency.
RECOMMENDATION:
Authorize the Executive Director and staff to work with housing providers to address the
lack of low- moderate income housing opportunities within Seal Beach.
NOTED AND APPROVED:
e Whittenberg B. Bahmsld, City Mara v
Director of Development Services
Low -Mod Housing Nnidpation.RDA SmRRepon