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HomeMy WebLinkAbout04-11 RDA Resolution I I I RESOLUTION NO. RDA04.11 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ADOPTING A FIVE YEAR IMPLEMENTATION PLAN FOR THE PERIOD 2005-09 FOR TEMECULA REDEVELOPMENT PROJECT NO. 1.1988 WHEREAS, on July 12, 1988, the County of Riverside, prior to the incorporation of the City of Temecula, duly adopted Ordinance No. 658 enacting a Redevelopment Plan, known as the "County of Riverside Redevelopment Plan No. 1-1988" (hereafter referred to as the "Temecula Plan"); WHEREAS, subsequent to the enactment of the Temecula Plan, the City of Temecula was incorporated on December 1, 1989; WHEREAS. pursuant to City Ordinance No. 91-11, which became effective May 9, 1991, and City Ordinance No. 91-15, which became effective April 9, 1991, the City approved the Temecula Plan. Said Ordinances had the effect of adopting the Temecula Plan and transferring jurisdiction over the Temecula Plan to the Redevelopment Agency of the City of Temecula, as of July 1, 1991. Pursuant to City Ordinance Nos. 93-03 and 93-04, City Ordinance No. 91-11 was codified at Section 8.04.010 of the Temecula Municipal Code; WHEREAS, pursuant to City Ordinance No. 94-33 the Temecula Plan was amended to provide for the extension of the Temecula Plan and other financial matters. WHEREAS, the California Legislature has adopted Health & Safety Code Section 33490 which provides that every agency shall consider and adopt, following a public hearing, an implementation plan for each project area which shall contain the specific goals and objectives of the agency for the project area, 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 Agency's low and moderate income housing obligations; WHEREAS, on November 29,1994, the Redevelopment Agency of the City of Temecula adopted Resolution No. 99-06 adopting a Five Year implementation Plan for 1999 to 2004 pursuant to the requirements of Health & Safety Code Section 33490 for Temecula Redevelopment Project No. 1-1988" ("Implementation Plan"); WHEREAS, on December 7, 1999, the Redevelopment Agency of the City of Temecula conducted a duly noticed public hearing in accordance with the requirements of Health & Safety Code Section 33490 and considered the comments of the public with respect to the proposed "Implementation Plan for Temecula Redevelopment Project No. 1-1988" ("Implementation Plan"); and . WHEREAS, all legal prerequisites to the adoption of this Resolution and the proposed Implementation Plan have occurred. NOW, THEREFORE, the Redevelopment Agency of the City of Temecula does hereby resolve as follows: R:/RDA Resos 20O4/RDA 04-11 I Section 1. The Agency hereby specifically finds all of the facts stated in the recitals set forth above are true and correct. Section 2. Pursuant to Health & Safety Code Section 33490, the Agency hereby adopts the document entitled "Implementation Plan" for Temecula Redevelopment Project No. 1- 1988, for the period of January 1, 2005 through December 31, 2009, a true, correct and complete copy of which is attached hereto as Exhibit A, and incorporated herein by this reference as though set forth in full. Section 3. The Secretary of the Agency shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Temecula on December 7,2004. ATTEST: ~' I STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF TEMECULA ) ) ss ) I, Susan W. Jones, CMC, City Clerk/Agency Secretary of the Redevelopment Agency of the City of Temecula, do hereby certify that the Resolution No. RDA 04-11 was duly and regularly adopted by the Redevelopment Agency of the City of Temecula at a regular meeting thereof, held on the December 7,2004, by the following vote, to wit: AGENCY MEMBERS: Naggar, Stone, Roberts, Washington, Comerchero AYES: 5 NOES: 0 ABSENT: 0 ABSTAIN: 0 AGENCY MEMBERS: None AGENCY MEMBERS: None AGENCY MEMBERS: None I R:/RDA Resos 2004/RDA 04-11 I I I IMPLEMENTATION PLAN FOR THE PERIOD JANUARY 1,2005 through DECEMBER 31, 2009 REDEVELOPMENT PROJECT NO.1 - 1988 REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA R:IREDEVlImplementatinnPIan99\IMPLEMENT A TIONPLANII04.dnc I I. II. III. IV. I V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. I TABLE OF CONTENTS Legislative Requirements..................................................................... 1 Background ......................................................................................2 Identified Conditions of Blight """"""""""""""""""""""""""".........3 Long Term Objectives of the Redevelopment Plan ....................................... 3 Short Term (Five-Year) Project Goals....................................................... 4 Proposed Implementation Activities ........................................................ 5 Relationship Between Implementation Activities and Redevelopment Plan Findings of Blight................................................ 6 Inclusionary & Replacement Housing Requirements ..................................... .9 Replacement Housing Requirements .......................................................13 Replacement Housing Plan ..................................................................13 Housing Set-Aside Requirements............................................................ 16 Long Term Housing Goals and Policies ....................................................18 Five-Year Housing Goals.............. ........................ ...............................20 Financial Assistance/Developer Participation............................................. 22 Appendix A. """""""""""""""""""""""""""...................................... 23 R:IREDEVlImplementatinnPlan99\IMPLEMENT A TIONPLAN 11 04.dnc RDA Boundary /\I Streets +N [~ Parcels !IIi] RDA Boundary 1000 0 r--- 1 000 2000 Feet -mapwas...œbyIheCltynfT"""""Ia- -- Themepla--bosodata - by "" -- CounIy ........... - ....1hoT_....LonI--- nf--CounIy. TheCltynfTomoaAa.........", -""""-""""-""- """mop. De!a""-_......map ...-..-....-. The- --""---"-""'" -......- ""'mapls"""""""""""", ~- I I I IMPLEMENTATION PLAN FOR THE TEMECULA REDEVELOPMENT PROJECT PLAN I. LEGISLATIVE REQUIREMENTS Assembly Bill 1290, also known as the Community Redevelopment Law Reform Act of 1993, effective January 1, 1994, enacted numerous revisions to the California Community Redevelopment Law including a requirement for the adoption of an implementation plan. The California Community Redevelopment Law, Health and Safety Code Section 33490 now requires that each redevelopment agency adopt an implementation plan prior to December 31,1994 and each five years thereafter for each redevelopment project area. The implementation plan must contain the specific goals and objectives of the Redevelopment Agency for each project area; the potential projects and estimated expenditures proposed to be made during the five year period of the plan; and, an explanation of how the goals and objectives, potential projects and estimated expenditures will eliminate blight within the project area, and implement the housing related requirements of Code Sections 33334.2, 33334.4, 33334.6, and 33413. The implementation plan must contain, for each year of the five-year period, an annual housing program, including estimates of the number of housing units destroyed and/or removed, and the number of units developed, rehabilitated, price restricted and/or otherwise assisted. Further, the implementation plan must describe the Agency's plans for the use of the annual deposits in the low and moderate income housing fund during each of the next five years. Additionally, if the implementation plan contains a project or projects for which the Redevelopment Agency is providing financial assistance, and which will result in the destruction or removal of dwelling units housing persons and families of low-or moderate-income, the implementation plan must identify proposed locations suitable for replacement housing units. In accordance with Code Section 33490(c), the Agency must conduct a public hearing and hear testimony of all interested parties relative to the Redevelopment Plan and the implementation plan at least once within the five-year term of the Implementation Plan. The hearing must take place no earlier than two years and no later than three years after adoption of the implementation plan. I I I Notice of public hearings conducted regarding the adoption of the implementation plan must be published pursuant to Code Section 6063 of the Government Code and posted in at least four permanent places within the project area for a period of three weeks. Publication and posting must be completed not less than 10 days prior to the date set for hearing. II. BACKGROUND The Redevelopment Plan for Redevelopment Project No. 1-1988 was adopted by the Riverside County Board of Supervisors by Ordinance No. 658 adopted on July 12,1988. The City of Temecula was incorporated on December 1, 1989. Subsequently, on April 9,1991, the City Council approved Ordinance No. 91-14 activating the Redevelopment Agency of the City of Temecula (Agency) and Ordinance No. 91-15 adopting the County of Riverside Redevelopment Plan No. 1-1988. Pursuant to City Ordinance No. 94-33, the Plan was amended to extend the life of the Plan and modify certain financial provisions. Project Area Description The project area includes approximately 1,635 acres of land within four sub-areas described on the attached maps (Attachments A-1 through A-4). Sub-Areas Nos. 1, 2, and 3 are all located west of Interstate 15. Sub-Area No.4 straddles Interstate 15 along Winchester and Ynez Roads. Sub-Area Descriptions/Current Land Uses Sub-area 1 is located south of the Old Town area along Front Street. The primary land uses in this sub-area are highway and locally-serving commercial with some office and industrial uses interspersed. The area west of Front Street is mostly vacant or is the channel of Murrieta Creek. Sub-area 2 contains the historic core of Old Town Temecula. It is generally located between First and Sixth Streets, and including the Pujol neighborhood. The primary land uses in the sub-area are commercial, office, and residential. The channel of Murrieta Creek also crosses this sub-area. Sub-area 3 is located north of the Old Town core. It is generally situated between Sixth Street and Winchester Road. The primary land uses are commercial and industrial. Most of the commercial properties are located along Front Street and Jefferson Road. The area west of Murrieta Creek is primarily industrial. There is limited vacant land in this sub-area. The channel of Murrieta Creek also crosses this sub-area. Sub-area 4 includes property north of Winchester Road and east of Interstate 15. The primary land uses in this sub-area are commercial and industrial. The channel of Murrieta Creek forms the westerly boundary of this area. 2 I I I III. IDENTIFIED CONDITIONS OF BLIGHT The report to the Riverside County Board of Supervisors (Report) prepared in connection with the adoption of Redevelopment Plan No. 1-1988 identifies the blighting conditions within the Project Area that the Redevelopment Plan is intended to remedy. The blighting conditions that were identified in the Report are as follows: The age, obsolescence, deterioration, mixed character or shifting of uses. The subdividing and sale of lots of irregular form and shape, and inadequate size for proper usefulness and development. The existence of inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without redevelopment. A prevalence of depreciated values, impaired investments, and social and economic maladjustment. The defective design in character or physical condition. IV. LONG-TERM OBJECTIVES OF THE REDEVELOPMENT PLAN The Project Area includes a number of conditions which are specified in the California Community Redevelopment Law as characteristics of blight. The objective of the Redevelopment Plan is to eliminate such conditions of blight by providing needed public improvements, by encouraging rehabilitation and repair of deteriorated structures, by facilitating land assembly and development which will result in employment opportunities and an expanded tax base; and by promoting development in accordance with applicable land use controls. The RedeveLopment PLan contains the following general objectives: (1 ) Provide a broad range of public service infrastructure improvements to induce private investment in the Project Area. Such improvements could include the construction or reconstruction of roads, streets, curbs and gutters, sidewalks, the installation of street lights, the construction and reconstruction of water storage and distribution facilities, the construction and reconstruction of sewage collection systems, development of drainage and flood control facilities, and-the construction and reconstruction of overpasses and bridges. (2) Where appropriate to enhance the public health, safety and welfare, provide new or improved community facilities such as fire stations, park and recreational facilities and other public facilities. (3) I (4) (5) (6) (7) (8) (9) I (10) (11 ) (12) (13) V. Promote the preservation and enhancement of Old Town Temecula following goals established for the Old Town Specific Plan. Promote the improvement and centralization of industrial areas to make the provision of public services more efficient and to relieve development pressure on agricultural lands. Promote the expansion of the City's industrial and commercial bases and local employment opportunities to provide jobs to unemployed and underemployed workers in the City. Assist economically depressed areas and reverse stagnant assessed valuation trends. Protect the health and general welfare of low-and moderate-income residents within the Project Area by utilizing 20% of tax increment revenue to increase and improve the supply of low-and moderate- income housing both inside and outside the Project Area. Upgrade the physical appearance of the Project Area. Encourage investment in the Project Area by the private sector. Remove economic impediments to land assembly and in-fill development in areas which are not properly subdivided for development. Consolidate parcels as needed to induce new or expanded, centralized commercial development in the Project Area. Buffer residential neighborhoods from the intrusion of incompatible land uses and noise. Encourage the cooperation and participation of Project Area property owners, public agencies and community organizations in the elimination of blighting conditions and the promotion of new or improved development in the Project Area. SHORT-TERM (FIVE-YEAR) GOALS FOR THE PROJECT AREA The priority short-term goals for the Project Area are intended to guide the City's redevelopment-program from 2005 through 2009. It is anticipated that the majority of the projects and activities undertaken by the Redevelopment Agency (except those resulting from emergency situations) will meet these goals. I Provide a broad range of public infrastructure improvements to induce private investment in the Project Area. This Goal will be achieved 4 I I I through the design and construction of needed public improvements (Long-Term Objective 1). Enhance the public safety and welfare by providing improved community services. This goal will be achieved through the design and construction of needed public facilities and utilities. (Long-Term Objective 2). Promote the preservation and enhancement of Old Town Temecula. This goal will be achieved through the regulation of land uses, the establishment of development standards and the rehabilitation and improvement of obsolete, deteriorated, or inappropriate buildings. (Long -Term Objective 3). Promote expansion of the industrial and commercial economic and job bases. This goal will be achieved through the retention and expansion of existing businesses and the encouragement of new businesses in and around the Project Area. (Long -Term Objective 5). Preserve, improve and expand housing opportunities for low-and moderate-income residents. This goal will be achieved through the rehabilitation, repair, and replacement of currently marginal or substandard residential units, by providing subsidies or other support to qualified low- and moderate-income households, and encouraging the development of new affordable housing resources (Long- Term Objective 7). Remove economic impediments to land assembly and in-fill development in areas which are not properly subdivided for development through the consolidation of existing parcels to induce or expand centralized commercial development. (Long-Term Objective 10 and 11). VI. IMPLEMENTATION ACTIVITIES TO ACHIEVE SHORT-TERM GOALS To achieve these short-term redevelopment goals, the City of Temecula proposes to undertake the following blight elimination and community improvement programs. Design and construct needed public improvements. Typical examples include, but are not limited to: design and construction of curbs, gutters, sidewalks, and parkway improvements along Pujol and Mercedes Streets, design and construction of parking improvements in the Old Town area. I I I VII. Provide improved community services. Typical examples include, but are not limited to: a community park, a community theater, museums and other public facilities which will benefit the Old Town Specific Plan Area and the Redevelopment Project Area. Preservation and enhancement of Old Town Temecula. Typical examples include, but are not limited to projects which implement the Old Town Specific Plan, the General Plan and Development Code, the Non-conforming Sign Removal Program, the Old Town Facade Improvement Program, and the purchase and installation of freeway identification signs directing traffic to Old Town. Expand the industrial and commercial economic and job bases. Typical examples include, but are not limited to: the Business Assistance and Recruitment Group, the Old Town Billboard Lease, economic development and relocation programs, and public-private joint ventures which fulfill the goals of the Old Town Specific Plan. Improve housing opportunities for low-and moderate-income residents. Typical examples include, but are not limited to: the replacement or repair of marginal or substandard dwelling units, providing financial subsidies to qualified low-and moderate-income households, and programs that reduce land, site development and/or construction costs for low-and moderate-income housing. Assemble land in areas, which are not properly laid out for development. Typical examples include, but are not limited to: the acquisition, assembly, marketing, and resale of property to support Redevelopment Project Area redevelopment activities. RELATIONSHIP BETWEEN IMPLEMENTATION ACTIVITIES AND THE FINDINGS OF BLIGHT The preliminary list of redevelopment program activities scheduled for the next five years are shown in Table I. The purpose of this list is to identify which blighting condition(s) a particular project is expected to address and is not intended as a complete or final list of needed improvements within the Redevelopment Project Area. Most of the information and cost estimates are based upon the 2005-2009 Capital Improvement Program and have been rounded to the nearest thousand dollars. The costs depicted below are estimates and are subject to change as additional information becomes available or as local circumstances and needs change. 6 - - - TABLE I COMPARISON OF PROPOSED 5-YEAR ACTIVITIES AND SPECIFIED BLIGHT CONDITIONS IDENTIFIED BLIGHT CONDITIONS IMPLEMENTATION ACTIVITIES Deteriorated Inadequate Parcel Lacks Public Depreciated Values Building Design ESTIMATED COSTS Buildings Sizes Facilities Eseallier House X x $875,000 Community Theatre X 9,500,000 Freeway Signage for Old Town X 110.000 Front Street Building Facades X x X 150,000 Old Town Parking X 6,000,000 Erte Stanley Gardner Exhibit X 33,000 Murrieta Creek Improvements X 300,000 Residential Improvement Program x X 1,2S0,ooo Old Town Streetscape Improvement X 120,000 Phase II Design Old Town Gateway Landscaping X 418,000 Old Town OVerhead/Underground x X 144 , 000 Utilities Distribution Housing Rehabilitation/ Residential X X 1,800,000 Improvement Programs Affordable Housing Units X X X 9.000.000 Old Town Mixed-use X x X X X 1,000,000 Affordable Housing Projects/Future X X X 1,830,000 Obligations Total Estimated Costs 325,52S,ooo 7 I I I VIII. INCLUSIONARY AND REPLACEMENT HOUSING REQUIREMENTS Le2islative Reauirements Effective January 1,1992, AB315 required that an affordable housing plan be prepared by each redevelopment agency that has adopted, or amended to add land area, a redevelopment plan after December 31, 1995. The Community Redevelopment Law Reform Act of 1993 (AB1290) encompassed the former AB315 requirements within the requirement to adopt an annual housing program as a part of the mandated implementation plan. The implementation plan must include the number of housing units developed, substantially rehabilitated, price-restricted, otherwise assisted, or destroyed. The implementation plan must also describe the Agency's plans for using annual deposits in the low-and moderate-income housing fund. If the implementation plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to Code Section 33413, the implementation plans shall identify proposed locations suitable for those replacement dwelling units. Code Section 33413 of the Community Redevelopment Law states: (a) Whenever dwelling units housing persons and families of low-or moderate- income are destroyed or removed from the low-and moderate-income housing market as part of a redevelopment project which is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency, the Agency shall, within 4 years of the destruction or removal, substantially rehabilitate, develop, or construct, or cause to be substantially rehabilitated, developed, or constructed, for rental or sale to persons and families of low-or moderate-income, an equal number of bedrooms as those destroyed or removed units at affordable housing cost within the territorial jurisdiction of the Agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling units shall replace dwelling units available at affordable housing cost in the same income level of very low- income households, lower-income households, and persons and families of low-and moderate-income, as the persons displaced from those destroyed or removed units. (b) (1 ) At least 30 percent of all new and substantially rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to persons 9 I 1- I and families of low-or moderate-income shall be available at affordable housing cost to, and occupied by, very low-income households. (2) At least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of an agency by public or private entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low-or moderate-income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to persons and families of low-or moderate-income shall be available at affordable housing cost to very low-income households. HOUSING NEED The income proportionality test requires that the Agency target set-aside expenditures to the relative percentage of unmet need for very low, low, and moderate income unites, as defined in the City's most recently approved Housing Element. Based on the City's 1999-2004 Housing Element, the Agency's minimum required allocation for very low and low income expenditures, and maximum moderate income housing expenditures are: Very Low Income: Lower Income Moderate Income At least 34% At least 20% No more than 46% The Agency is entitled to expend a disproportionate amount of funds for very low income households, and to subtract a commensurate amount from the low and/or moderate income thresholds. Similarly, the Agency can provide a disproportionate amount of funding for low income housing by reducing the amount of funds allocated to moderate income households. In no event can the expenditures targeted to moderate income households exceed the established threshold amount. In order to meet the income targeting standards, the Agency proposes that this implementation Plan allocate 34% of the Housing Fund project and program expenditures to very low income households, 20% to low income households, and no more than 46% to moderate income households. Expenditures on Senior Citizen Projects The age restriction proportionality test requires that the maximum percentage of set-aside funds that an agency can allocate to senior housing is limited to the percentage of residents within the City that are 65 years of age and older, reported by the most recent census of the U.S. Census Bureau. 10 I I I As shown below, according to Census 2000, 7.1 of the City's population is aged 65 years or older. City of Temecula Senior Test: Under 65 Year Old 65 Yeas and Older 53,619 4,097 92.9 7.1 In order to meet the age restriction proportionality test requirements, the Agency proposes that this Implementation Plan allocate 89.5% of the Housing Fund project and program expenditures to non-age-restricted housing. Additionallnclusionarv Housinl! ReQuirements On September 28, 1994, the passage of SB732 incorporated additional requirements that call for the agency's inclusionary housing requirements to be met every ten years. If the requirements are not met within the applicable ten-year period, the agency must fulfill its inclusionary housing requirements on an annual basis. Further, if the agency exceeds their inclusionary housing goals during a given ten-year period, the excess housing units can be counted towards inclusionary housing goals in the subsequent ten-year period. For example, if 100 new housing units are developed or substantially rehabilitated in a project area within ten years of the initial implementation plan by entities other than the redevelopment agency, 15 of those units must be affordable to low-and moderate- income households (of which 6 must be affordable to very low-income households). If more than 15 units are developed or substantially rehabilitated as units affordable to low-and moderate-income households during this ten-year period, the affordable units in excess of 15 may be counted toward the agency's requirements for the next ten- year period. However, if fewer than 15 units are affordable to low-and moderate- income households at the end of the ten-year period, the agency must meet its production goals on an annual basis until the requirements for the ten-year period are met. Affordabilitv ReQuirements Housing costs for low-and moderate-income housing developed pursuant to Sections 33413 must be affordable to persons and households whose income do not exceed 120 percent of the area family income. 11 I I I For purposes of the Implementation Plan, the following income limits are used: . Very Low Income (0-50 percent of area median family income) . Low Income (51-80 percent of area median family income) . Moderate Income (81-120 percent of the area median family income) The area median family income limits are adjusted for household size, with smaller households having lower income limits. The 2004 HUD median family income adjusted for a four-person household in Riverside County is $47,200. Thus by definition, 2004 maximum income is $23,600 for a very low-income four-person household, $37,750 for a low-income four-person family and $56,650 for a four-person moderate-income family for jurisdictions in Riverside County. TABLE 2 DEPARTMENT OF HOUSING & COMMUNITY DEVELOPMENT - 2004 INCOME LIMITS Standard I 2 3 4 5 6 7 8 Very Low 19000 21700 24450 27150 29300 31500 33650 35850 Income Lower 30400 34750 39100 43450 46900 50400 53850 573S0 Income Median Income 38000 43459 48850 54300 58650 63000 67350 71700 Moderate 45600 52100 58650 65150 70350 75550 80800 86000 Income 12 I I I TABLE 3 AFFORDABLE HOUSING COSTS Income Levels (1) Owner Costs Renter Costs Very Low (0-50%) 30% of 50% of adj. AMI", 30% of 50% of adj. AM"" Low 30% of 70% of adj. AMI", 30% of 60% of adj. AMI", (51-70%) (70-80%) Option: Max: 30% of gross hh inc.", (61-80%) Option: Max: 30% of gross hh inc.", Moderate Min: 28% of gross hh inc.", 30% of 110% of adj. AMI", (81-120%) Max: 35% of 110% of adj. AMI (111-120%) Option: Option: Max: 35% of gross hh inc.", Max: 30% of gross hh inc.", (1) Household income (hh inc.) levels relative to area median-income. (2) Area Median Income (AMI) adjusted for family size appropriate for the unit. Duration of Affordabilitv Section 33413(c) says, in part, that 'The agency shall require that the aggregate number of dwelling units rehabilitated, developed, constructed or price-restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to persons and families of low-income, moderate-income, and very low-income households, respectively, for the longest feasible time, as determined by the agency, but for not less than the period of the land use controls established in the redevelopment plan, except [if] a longer period of time may be required by other provisions of law. The agency may permit sales of owner-occupied units prior to the expiration of the period of the land use controls established by the agency for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency's investment of moneys from the Low and Moderate Income Housing Fund. If land on which those dwelling units are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in this subdivision." Section 33413(g) adds that "'Longest feasible time; as used in this section, includes, but is not limited to, unlimited duration." 13 I I I Subdivisions 33413(c) and (g) and Section 33334.3(f) require that all new or substantially rehabilitated housing units developed or otherwise assisted with monies from the low-and moderate-income housing fund on or after January 1, 1988, shall remain affordable for the longest feasible time but not less than fifty-five years for rental units and forty-five years for owner-occupied units. Section 33413(b)(2)(C) adds that "long-term affordability covenants purchased or otherwise acquired pursuant to subparagraph (8) shall be required to be maintained on dwelling units at affordable housing costs for not less than 55 years." IX. REPLACEMENT HOUSING REQUIREMENTS The Redevelopment Agency is required to replace low-and moderate-income housing units destroyed or removed as a part of a project development with another Low-or Moderate-Income Unit within four years. The Agency may replace destroyed or removed dwellings with fewer units if the replacement units have a greater or equal number of bedrooms and are affordable to the same income level households. Seventy-five percent of the replacement units shall be available at affordable housing cost to the same income level as persons displaced. X. THE REPLACEMENT HOUSING PLAN Consistent with the Community Redevelopment Law and Redevelopment Plan, this Replacement Housing Plan sets forth the City of Temecula Redevelopment Agency's plan for the development and construction of replacement dwellings within four (4) years following the date of destruction of affordable dwelling units removed or destroyed in connection with certain Capitol Improvement Projects within the redevelopment area. From time to time, the Agency pursues the acquisition of property for the purpose of affordable housing. Should such property contain existing low and moderate income households be removed or destroyed, replacement housing would be required. 14 I I I Replacement dwelling units are required to be located within the boundaries of the project area. Alternative sites for affordable housing within the project area, suitable for projects which will provide replacement dwelling units, will be selected within four years following the removal of the units. The Redevelopment Agency plans to meet its replacement housing requirements pursuant to Section 33413(a) on both an opportunity and funds available basis, through one or more Federal, State, County or City sponsored housing programs including without limitation the following programs: 1. 2. 3. 4. 5. 6. 7. Community Development Block Grant Program Home Program Section 202 Program Redevelopment Tax Increment Funds Redevelopment Section 108 Funds Redevelopment Tax Credits Density Bonus Ordinance This portion of the Temecula Redevelopment Area Implementation Plan shall constitute the Replacement Housing Plan as required by Section 33413.5 Existinl! Housing Production In Project Area Since the adoption of the Redevelopment Plan, there have been no Agency assisted housing units developed or substantially rehabilitated within the project area, other than units which are restricted to low-and moderate-income households. Nor has there been any privately developed or substantially rehabilitated housing units constructed within the project area other than low- to moderate-income housing. Therefore, the Temecula Redevelopment Agency has no current inclusionary housing requirements in that all housing developed or substantially rehabilitated is restricted to low-and moderate-income use. Following is an inventory of low-to moderate-income housing constructed and substantially rehabilitated during the previous implementation period. Project Description Number of No, Reserved for No. Reserved for No. Reserv. Units Very Low-Income Low-Income Moderate-Inc Mission Village 76 8, 2-bdrm units 30, 2-bdrm units -0- 8, 3-bdrm units 30, 3-bdrm units Riverbank Villages 66 13, 1-bdrm units 53, 1-bdrm units -0- Cottages of Old Town 17 2, 2-bdrm un 6, 3-bdrm un 9, 4-bdrm un 15 I I I Site Inventory The Temecula Redevelopment Area encompasses approximately 1 ,635 acres of land, of which 42 acres are currently occupied by residential uses. A total of 534 existing residential units can be found within the project area. Another 4.5 acres are currently vacant, but have a residential land use designation. A total of 75 new housing units may be added to the Project Area through the development of currently vacant land. Recycling of currently occupied land would result in a net gain of 132 units. Given a private residential build out of 219 new units in the project area, future inclusionary housing requirements are estimated at 34 units for lower-and moderate-income households, of which 14 units must be affordable to very low-income households. TABLE 5 TEMECULA REDEVELOPMENT PROJECT AREA RESIDENTIAL SITE INVENTORY Potential Buildout Site Inventory Acreage (Dwelling Units) Existing Units 534 Development of Vacant Land Medium (7.12 DUlAC) 1.00 10 High (13.20 DUlAC) 3.56 50 Subtotal 87 Recycling of Underutilized Land 4.5 100 Total 48.75 618 Ten-Year Housina Projections The Temecula Redevelopment Plan was adopted in July 1988 and will expire in July, 2028. The housing production targets in this Implementation Plan extends for the ten- year period between 2005 and 2015 and establishes how the Agency intends to fulfill inclusionary requirements for housing produced during this time frame. Based on the estimated buildout of 219 new units over the next 23 years, a constant pace of residential development would yield an annual housing production of 10 units in the project area. Thus the ten-year housing projection for the Project Area would be 100 units. Six (6) of these units produced each year would be for low-and moderate-income households and 7 units for very low-income households. These ten- 16 I I I XI. year projections are very general and based on economic conditions. They have been included in the Implementation Plan as a means of gauging future residential growth to enable the Agency to develop an appropriate strategy to fulfill inclusionary requirements. However, the Agency's only commitment at the end of the ten-year period is to have provided for the inclusion of low/mod units based on actual development. HOUSING SET-ASIDE REQUIREMENTS The Temecula Redevelopment Agency is required to set aside twenty percent (20%) of the gross annual tax increment into the low-and moderate-income housing fund. The purpose of the housing set-aside fund is to produce, increase, improve and preserve the community's supply of low-and moderate-income housing. In carrying out the annual housing set-aside requirements, the Agency may exercise any or all of its powers, including the following: Acquire real property or building sites subject to the provisions of Code Section 33334.16, California Community Redevelopment Law. Improve real property or building sites with onsite or offsite improvements, but only if the improvements directly and specifically improve or increase the community's supply of low-or moderate-income housing. Donate real property to private or public persons or entities. Finance insurance premiums. Construct buildings or structures. Acquire buildings or structures. Substantially rehabilitate buildings or structures. Provide subsidies to, or for the benefit of, very low-income households, as defined by Code Section 50105, lower-income households, as defined by Code Section 50079.5 or persons and families or low-or moderate-income, as defined by Code Section 50093, to the extent those households cannot obtain housing at affordable costs on the open market. (Housing units available on the open market are those units developed without direct government subsidies.) Develop plans, pay principal and interest on bonds, loans, advance, or other indebtedness, or pay financing or carrying charges. Maintain the community's supply of mobile homes. 17 I I .1 VII. Provide improved community services. Typical examples include, but are not limited to: a community park, a community theater, museums and other public facilities which will benefit the Old Town Specific Plan Area and the Redevelopment Project Area. Preservation and enhancement of Old Town Temecula. Typical examples include, but are not limited to projects which implement the Old Town Specific Plan, the General Plan and Development Code, the Non-conforming Sign Removal Program, the Old Town Facade Improvement Program, and the purchase and installation of freeway identification signs directing traffic to Old Town. Expand the industrial and commercial economic and job bases. Typical examples include, but are not limited to: the Business Assistance and Recruitment Group, the Old Town Billboard Lease, economic development and relocation programs, and public-private joint ventures which fulfill the goals of the Old Town Specific Plan. Improve housing opportunities for low-and moderate-income residents. Typical examples include, but are not limited to: the replacement or repair of marginal or substandard dwelling units, providing financial subsidies to qualified low-and moderate-income households, and programs that reduce land, site development and/or construction costs for low-and moderate-income housing. Assemble land in areas, which are not properly laid out for development. Typical examples include, but are not limited to: the acquisition, assembly, marketing, and resale of property to support Redevelopment Project Area redevelopment activities. RELATIONSHIP BETWEEN IMPLEMENTATION ACTIVITIES AND THE FINDINGS OF BLIGHT The preliminary list of redevelopment program activities scheduled for the next five years are shown in Table I. The purpose of this list is to identify which blighting condition(s) a particular project is expected to address and is not intended as a complete or final list of needed improvements within the Redevelopment Project Area. Most of the information and cost estimates are based upon the 2005-2009 Capital Improvement Program and have been rounded to the nearest thousand dollars. The costs depicted below are estimates and are subject to change as additional information becomes available or as local circumstances and needs change. 6 - - - TABLE I COMPARISON OF PROPOSED 5-YEAR ACTIVITIES AND SPECIFIED BLIGHT CONDITIONS IDENTIFIED BLIGHT CONDITIONS IMPLEMENTATION ACTIVITIES Deteriorated Inadequate Parcel Lacks Public Depreciated Values Building Design ESTIMATED COSTS Buildings Sizes Facilities Escallier House X x S87S,OOO Community Theatre X 9.500.000 Freeway Signage for Old Town X 110,000 Front Street Building Facades X x X 1S0,OOO Old Town Parking X 6,000,000 Erte Stanley Gardner Exhibit X 33,000 Murrieta Creek Improvements X 300,000 Residential Improvement Program x X 1,250,000 Old Town Streetscape Improvement X 120,000 Phase II Design Old Town Gateway Lar,dscaplng X 418,000 Old Town Overhead/Underground x X 144 , 000 Utilities Distribution Housing Rehabilitation/ Residential X X 1,800,000 Improvement Programs Affordable Housing Units X X X 9,000,000 Old Town Mixed-use X x X X X 1,000,000 Affordable Housing Projects/Future X X X 1,830,000 Obligations Total Estimated Costs 3Z5.S25,ooo 7 I I I VIII. INCLUSIONARY AND REPLACEMENT HOUSING REQUIREMENTS Le~islative Reauirements Effective January 1,1992, AB315 required that an affordable housing plan be prepared by each redevelopment agency that has adopted, or amended to add land area, a redevelopment plan after December 31, 1995. The Community Redevelopment Law Reform Act of 1993 (AB1290) encompassed the former AB315 requirements within the requirement to adopt an annual housing program as a part of the mandated implementation plan. The implementation plan must include the number of housing units developed, substantially rehabilitated, price-restricted, otherwise assisted, or destroyed. The implementation plan must also describe the Agency's plans for using annual deposits in the low-and moderate-income housing fund. If the implementation plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to Code Section 33413, the implementation plans shall identify proposed locations suitable for those replacement dwelling units. Code Section 33413 of the Community Redevelopment Law states: (a) Whenever dwelling units housing persons and families of low-or moderate- income are destroyed or removed from the low-and moderate-income housing market as part of a redevelopment project which is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency, the Agency shall, within 4 years of the destruction or removal, substantially rehabilitate, develop, or construct, or cause to be substantially rehabilitated, developed, or constructed, for rental or sale to persons and families of low-or moderate-income, an equal number of bedrooms as those destroyed or removed units at affordable housing cost within the territorial jurisdiction of the Agency. When dwelling units are destroyed or removed after September 1, 1989, 75 percent of the replacement dwelling units shall replace dwelling units available at affordable housing cost in the same income level of very low- income households, lower-income households, and persons and families of low-and moderate-income, as the persons displaced from those destroyed or removed units. (b) At least 30 percent of all new and substantially rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to persons 9 (1 ) I I I and families of low-or moderate-income shall be available at affordable housing cost to, and occupied by, very low-income households. (2) At least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of an agency by public or private entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low-or moderate-income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to persons and families of low-or moderate-income shall be available at affordable housing cost to very low-income households. HOUSING NEED The income proportionality test requires that the Agency target set-aside expenditures to the relative percentage of unmet need for very low, low, and moderate income unites, as defined in the City's most recently approved Housing Element. Based on the City's 1999-2004 Housing Element, the Agency's minimum required allocation for very low and low income expenditures, and maximum moderate income housing expenditures are: Very Low Income: Lower Income Moderate Income At least 34% At least 20% No more than 46% The Agency is entitled to expend a disproportionate amount of funds for very low income households, and to subtract a commensurate amount from the low and/or moderate income thresholds. Similarly, the Agency can provide a disproportionate amount of funding for low income housing by reducing the amount of funds allocated to moderate income households. In no event can the expenditures targeted to moderate income households exceed the established threshold amount. In order to meet the income targeting standards, the Agency proposes that this implementation Plan allocate 34% of the Housing Fund project and program expenditures to very low income households, 20% to low income households, and no more than 46% to moderate income households. Expenditures on Senior Citizen Proiects The age restriction proportionality test requires that the maximum percentage of set-aside funds that an agency can allocate to senior housing is limited to the percentage of residents within the City that are 65 years of age and older, reported by the most recent census of the U.S. Census Bureau. 10 I I I As shown below, according to Census 2000, 7.1 of the City's population is aged 65 years or older. City of Temecula Senior Test: Under 65 Year Old 65 Yeas and Older 53,619 4,097 92.9 7.1 In order to meet the age restriction proportionality test requirements, the Agency proposes that this Implementation Plan allocate 89.5% of the Housing Fund project and program expenditures to non-age-restricted housing. Additionallnclusionarv Housinl! Reauirements On September 28, 1994, the passage of SB732 incorporated additional requirements that call for the agency's inclusionary housing requirements to be met every ten years. If the requirements are not met within the applicable ten-year period, the agency must fulfill its inclusionary housing requirements on an annual basis. Further, if the agency exceeds their inclusionary housing goals during a given ten-year period, the excess housing units can be counted towards inclusionary housing goals in the subsequent ten-year period. For example, if 100 new housing units are developed or substantially rehabilitated in a project area within ten years of the initial implementation plan by entities other than the redevelopment agency, 15 of those units must be affordable to low-and moderate- income households (of which 6 must be affordable to very low-income households). If more than 15 units are developed or substantially rehabilitated as units affordable to low-and moderate-income households during this ten-year period, the affordable units in excess of 15 may be counted toward the agency's requirements for the next ten- year period. However, if fewer than 15 units are affordable to low-and moderate- income households at the end of the ten-year period, the agency must meet its production goals on an annual basis until the requirements for the ten-year period are met. Affordabilitv Reauirements Housing costs for low-and moderate-income housing developed pursuant to Sections 33413 must be affordable to persons and households whose income do not exceed 120 percent of the area family income. 11 I I I For purposes of the Implementation Plan, the following income limits are used: . Very Low Income (0-50 percent of area median family income) . Low Income (51-80 percent of area median family income) . Moderate Income (81-120 percent of the area median family income) The area median family income limits are adjusted for household size, with smaller households having lower income limits. The 2004 HUD median family income adjusted for a four-person household in Riverside County is $47,200. Thus by definition, 2004 maximum income is $23,600 for a very low-income four-person household, $37,750 for a low-income four-person family and $56,650 for a four-person moderate-income family for jurisdictions in Riverside County. TABLE 2 DEPARTMENT OF HOUSING & COMMUNITY DEVELOPMENT - 2004 INCOME LIMITS Standard I 2 3 4 5 6 7 8 Very Low 19000 21700 24450 27150 29300 31500 33650 35850 Income Lower 30400 34750 39100 43450 46900 S0400 53850 57350 Income Median Income 38000 43459 48850 54300 58650 63000 67350 71700 Moderate 45600 52100 58650 65150 70350 75550 80800 86000 Income 12 I I I TABLE 3 AFFORDABLE HOUSING COSTS Income Levels (1) Owner Costs Renter Costs Very Low (0-50%) 30% of 50% of adj. AMI", 30% of 50% of adj. AMI", Low 30% of 70% of adj. AMI", 30% of 60% of adj. AMI", (51-70%) (70-80%) Option: Max: 30% of gross hh inc.", (61-80%) Option: Max: 30% of gross hh inc.", Moderate Min: 28% of gross hh inc.", 30% of 110% of adj. AMI", (81-120%) Max: 35% of 110% of adj. AMI (111-120%) Option: Option: Max: 35% of gross hh inc.", Max: 30% of gross hh inc.", (1) Household income (hh inc.) levels relative to area median-income. (2) Area Median Income (AMI) adjusted for family size appropriate for the unit. Duration of Affordabilitv Section 33413(c) says, in part, that 'The agency shall require that the aggregate number of dwelling units rehabilitated, developed, constructed or price-restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to persons and families of low-income, moderate-income, and very low-income households, respectively, for the longest feasible time, as determined by the agency, but for not less than the period of the land use controls established in the redevelopment plan, except [if] a longer period of time may be required by other provisions of law. The agency may permit sales of owner-occupied units prior to the expiration of the period of the land use controls established by the agency for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency's investment of moneys from the Low and Moderate Income Housing Fund. If land on which those dwelling units are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in this-subdivision." Section 33413(g) adds that "'Longest feasible time; as used in this section, includes, but is not limited to, unlimited duration." 13 I I I Subdivisions 33413(c) and (g) and Section 33334.3(f) require that all new or substantially rehabilitated housing units developed or otherwise assisted with monies from the low-and moderate-income housing fund on or after January 1, 1988, shall remain affordable for the longest feasible time but not less than fifty-five years for rental units and forty-five years for owner-occupied units. Section 33413(b)(2)(C) adds that "long-term affordability covenants purchased or otherwise acquired pursuant to subparagraph (B) shall be required to be maintained on dwelling units at affordable housing costs for not less than 55 years." IX. REPLACEMENT HOUSING REQUIREMENTS The Redevelopment Agency is required to replace low-and moderate-income housing units destroyed or removed as a part of a project development with another Low-or Moderate-Income Unit within four years. The Agency may replace destroyed or removed dwellings with fewer units if the replacement units have a greater or equal number of bedrooms and are affordable to the same income level households. Seventy-five percent of the replacement units shall be available at affordable housing cost to the same income level as persons displaced. x. THE REPLACEMENT HOUSING PLAN Consistent with the Community Redevelopment Law and Redevelopment Plan, this Replacement Housing Plan sets forth the City of Temecula Redevelopment Agency's plan for the development and construction of replacement dwellings within four (4) years following the date of destruction of affordable dwelling units removed or destroyed in connection with certain Capitol Improvement Projects within the redevelopment area. From time to time, the Agency pursues the acquisition of property for the purpose of affordable housing. Should such property contain existing low and moderate income households be removed or destroyed, replacement housing would be required. 14 I I I Replacement dwelling units are required to be located within the boundaries of the project area. Alternative sites for affordable housing within the project area, suitable for projects which will provide replacement dwelling units, will be selected within four years following the removal of the units. The Redevelopment Agency plans to meet its replacement housing requirements pursuant to Section 33413(a) on both an opportunity and funds available basis, through one or more Federal, State, County or City sponsored housing programs including without limitation the following programs: 1. 2. 3. 4. 5. 6. 7. Community Development Block Grant Program Home Program Section 202 Program Redevelopment Tax Increment Funds Redevelopment Section 108 Funds Redevelopment Tax Credits Density Bonus Ordinance This portion of the Temecula Redevelopment Area Implementation Plan shall constitute the Replacement Housing Plan as required by Section 33413.5 Existine Housine Production in Project Area Since the adoption of the Redevelopment Plan, there have been no Agency assisted housing units developed or substantially rehabilitated within the project area, other than units which are restricted to low-and moderate-income households. Nor has there been any privately developed or substantially rehabilitated housing units constructed within the project area other than low- to moderate-income housing. Therefore, the Temecula Redevelopment Agency has no current inclusionary housing requirements in that all housing developed or substantially rehabilitated is restricted to low-and moderate-income use. Following is an inventory of low-to moderate-income housing constructed and substantially rehabilitated during the previous implementation period. Project Description Number of No. Reserved for No. Reserved for No. Reservl Units Very Low-Income Low-Income Moderate-Inc Mission Village 76 8, 2-bdrm units 30, 2-bdrm units -0- .8, 3-bdrm units 30, 3-bdrm units Riverbank Villages 66 13, 1-bdrm units 53,1-bdrmunits -0- Cottages of Old Town 17 2, 2-bdrm un 6, 3-bdrm un 9, 4-bdrm un 15 I I I Site Inventory The Temecula Redevelopment Area encompasses approximately 1,635 acres of land, of which 42 acres are currently occupied by residential uses. A total of 534 existing residential units can be found within the project area. Another 4.5 acres are currently vacant, but have a residential land use designation. A total of 75 new housing units may be added to the Project Area through the development of currently vacant land. Recycling of currently occupied land would result in a net gain of 132 units. Given a private residential build out of 219 new units in the project area, future inclusionary housing requirements are estimated at 34 units for lower-and moderate-income households, of which 14 units must be affordable to very low-income households. TABLE 5 TEMECULA REDEVELOPMENT PROJECT AREA RESIDENTIAL SITE INVENTORY Potential Buildout Site Inventory Acreage (Dwelling Units) Existing Units 534 Development of Vacant Land Medium (7-12 DUlAC) 1.00 10 High (13-20 DUlAC) 3.56 50 Subtotal 87 Recycling of Underutilized Land 4.5 100 Total 48.75 618 Ten-Year Housimz Projections The Temecula Redevelopment Plan was adopted in July 1988 and will expire in July, 2028. The housing production targets in this Implementation Plan extends for the ten- year period between 2005 and 2015 and establishes how the Agency intends to fulfill inclusionary requirements for housing produced during this time frame. Based on the estimated build out of 219 new units over the next 23 years, a constant pace of residential development would yield an annual housing production of 10 units in the project area. Thus the ten-year housing projection for the Project Area would be 100 units. Six (6) of these units produced each year would be for low-and moderate-income households and 7 units for very low-income households. These ten- 16 I I I XI. year projections are very general and based on economic conditions. They have been included in the Implementation Plan as a means of gauging future residential growth to enable the Agency to develop an appropriate strategy to fulfill inclusionary requirements. However, the Agency's only commitment at the end of the ten-year period is to have provided for the inclusion of low/mod units based on actual development. HOUSING SET-ASIDE REQUIREMENTS The Temecula Redevelopment Agency is required to set aside twenty percent (20%) of the gross annual tax increment into the low-and moderate-income housing fund. The purpose of the housing set-aside fund is to produce, increase, improve and preserve the community's supply of low-and moderate-income housing. In carrying out the annual housing set-aside requirements, the Agency may exercise any or all of its powers, including the following: Acquire real property or building sites subject to the provisions of Code Section 33334.16, California Community Redevelopment Law. Improve real property or building sites with onsite or offsite improvements, but only if the improvements directly and specifically improve or increase the community's supply of low-or moderate-income housing. Donate real property to private or public persons or entities. Finance insurance premiums. Construct buildings or structures. Acquire buildings or structures. Substantially rehabilitate buildings or structures. Provide subsidies to, or for the benefit of, very low-income households, as defined by Code Section 50105, lower-income households, as defined by Code Section 50079.5 or persons and families or low-or moderate-income, as defined by Code Section 50093, to the extent those households cannot obtain housing at affordable costs on the open market. (Housing units available on the open market are those units developed without direct government subsidies.) Develop plans, pay principal and interest on bonds, loans, advance, or other indebtedness, or pay financing or carrying charges. Maintain the community's supply of mobile homes. 17 I Preserve the availability to lower-income households of affordable housing units in housing developments which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates. The twenty percent housing set-aside fund monies can also be used for planning and general administrative costs, when directly related to programs and activities associated with Code Section 33334.2(e). This includes the following activities: Costs incurred for salaries, wages, and related costs of the Agency's staff or for services provided through inter-agency agreements, and agreements with contractors, including usual indirect related costs. Costs incurred by a non-profit corporation which are not directly attributable to a specific project. Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project which are authorized under subdivision (3) of Code Section 33334.2 and which are incurred by a non-profit housing sponsor and are not planning and administrative costs for the purpose of this section, but are, instead, project costs. I Housin!! Set-Aside Fund Estimate In order for the Agency to estimate the number of units it could develop in the next five years, a projection of twenty percent (20%) of the tax increment revenue was developed for the period FY 2004-2005 through FY 2008-2009. These monies would be allocated towards the preservation, development and/or substantially rehabilitation of very low, low and moderate income housing units. It is expected that these funds will be leveraged in concert with one of the housing programs cited in Section XIII. TABLE 6 PROJECTED HOUSING SET-ASIDE I I Year I Estimated 20% Tax Increment I 04/ 05 $1,920,640 05/ 06 $1,959,053 06/ 07 $1,998,234 07/08 $2,038,199 08/ 09 $2,078,963 18 I I I XII. LONG TERM HOUSING GOALS AND POLICIES The General Plan Housing Element has five separate and distinct goals developed to address the various housing needs of the City. These are explicitly stated in order to give latitude and authority to design and address the implementation of the housing program. They are as follows: Goal 1 A DIVERSITY OF HOUSING OPPORTUNITIES THAT SATISFY THE PHYSICAL, SOCIAL AND ECONOMIC NEEDS OF EXISTING AND FUTURE RESIDENTS OF TEMECULA. Policy 1.1 Policy 1.2 Policy 1.3 Policy 1.4 Policy 1.5 Policy 1.6 Provide an inventory of land at varying densities sufficient to accommodate the existing and projected housing needs in the City. Encourage residential development that provides a range of housing types options in terms of cost, density and type, and provides the opportunity for local residents to live and work in the same community by balancing jobs and housing types. Require a mixture of diverse housing types and densities in new developments around the village centers to enhance their people- orientation and diversity. Support the use of innovative site planning and architectural design in residential development. Encourage the use of clustered development to preserve and enhance important environmental resources, and maintain important areas in open space. Promote the development of compatible mixed use projects that promotes and enhances the village concept, facilitates the efficient use of public facilities, and supports alternative transit options. Goal 2AFFORDABLE HOUSING FOR ALL ECONOMIC SEGMENTS OF TEMECULA. Policy 2.1 Policy 2.2 Promote a variety of housing opportunities that accommodate the needs of all income levels of the population, and provides opportunities to meet the City's fair share of low- and moderate-income housing. Support innovative public, private and non-profit efforts in the development of affordable housing, particularly for special needs groups. 19 I Policy 2.3 Policy 2.4 Encourage the use of non-traditional housing models, including single- room occupancy structures (SRO) and manufactured housing, to meet the needs of special groups for affordable housing, temporary shelter and/or transitional housing. Pursue all available forms of private, local, state and federal assistance to support development and implementation of the City's housing programs. Goal 3 REMOVAL OF GOVERNMENTAL CONSTRAINTS IN THE MAINTENANCE, IMPROVEMENT AND DEVELOPMENT OF HOUSING, WHERE APPROPRIATE AND LEGALLY POSSIBLE. Policy 3.1 Policy 3.2 Policy 3.3 I Provide reasonable processing time and fees for new construction or substantially rehabilitation of housing. Consider mitigating development fees for projects providing affordable and senior citizen housing. Periodically review City development standards to ensure consistency with the General Plan and to facilitate high-quality affordable housing. Goal 4 CONSERVATION OF THE EXISTING AFFORDABLE HOUSING STOCK. Policy 4.1 Policy 4.2 Policy 4.3 Monitor and regulate, if necessary, the number of affordable units eligible for conversion to market-rate units and develop programs to minimize the loss of these units. Develop rehabilitation programs that are directed at preserving the integrity of the housing stock. Support the efforts of private and public entities in maintaining the affordability of units through implementation of energy conservation and weatherization programs. Goal 5 EQUAL HOUSING OPPORTUNITY FOR ALL RESIDENTS IN TEMECULA. Policy 5.1 Policy 5.2 I Encourage and support the enforcement of laws and regulations prohibiting the discrimination in lending practices in the sale or rental of housing. Assure and support the efforts of others to ensure that unrestricted access to housing is available to all segments of the community. 20 I I I XIII. Policy 5.3 Encourage housing design standards that promote the accessibility of housing for the elderly and disabled. Policy 5.4 Encourage and consider supporting local private non-profit groups that address the housing needs of the homeless and other disadvantaged groups. FIVE-YEAR HOUSING GOALS During the five-year period of the implementation plan, the Redevelopment Agency of the City of Temecula will facilitate the preservation, new construction and/or substantial rehabilitation of affordable housing projects which will support the following goals: Satisfy the replacement housing requirements of community redevelopment law as they relate to any housing units displaced by Redevelopment Agency activities. Satisfy the inclusionary housing requirements of community redevelopment law as they relate to the provision of affordable housing and as a percentage of new or substantially rehabilitated housing constructed within the redevelopment project area. Work toward the City of Temecula's fair share regional affordable housing goals. Support overall community development, economic development, and redevelopment/revitalization efforts within the City of Temecula. It is anticipated that the Redevelopment Agency will couple housing set-aside funds with other public and private funding sources as described below. The Redevelopment Agency will seek to generate the construction, substantial rehabilitation, and/or purchase of afford ability covenants through public and/or nonprofit sponsors. The City of Temecula has no Article 34 authority and it is not anticipated that the Redevelopment Agency or the City will directly own and manage affordable housing projects. Project Selection Criteria Projects seeking financial assistance from the Redevelopment Agency's Low and Moderate Income Housing Fund will be evaluated on a case by case basis based on the following criteria: Ability of the project to generate other public/private funding in support of housing set aside funds. . 21 I I I Degree to which the proposed project meets multiple community goals in addition to affordable housing goals. These goals include but are not limited to the following: a. Replacement housing requirements. b. Inclusionary housing requirements. c. Fair share regional housing requirements. d. Achieve community goals for redevelopment, revitalization and economic development. neighborhood The cost benefit of the proposed affordable housing program as defined by the ratio of affordable housing assistance requested to number of affordable housing units provided. The financial track record, management and development experience of the proposing sponsor. Annual Tan~ets The number of affordable housing units to be developed over the five-year implementation plan period will depend in large part on market conditions, availability of funding to supplement housing set-aside funds and the degree to which proposals are submitted which satisfy the stated goals and objectives. Subject to these limiting factors, the following are the production goals for the five-year implementation plan: TABLE 7 ANNUAL HOUSING GOALS Year Units 2005 12 2006 12 2007 12 2008 12 -- 2009 12 - TOTAL: 60 22 I I I XIV. LimitinR Factors A number of conditions may limit the ability of the Redevelopment Agency to meet Implementation Plan goals. Among them are the existing land uses and socioeconomic characteristics of the project area, limited funds available from the Agency's Low and Moderate Income Housing Funds and other funding sources, and changing market calculations. FINANCIAL ASSISTANCE/DEVELOPER PARTICIPATION The Agency's philosophy with regard to providing financial assistance in the development of affordable housing has been to leverage low-and moderate-income funds with other sources of funds. There are numerous federal, state, county or city programs in which an agency or developer may participate. In addition, the Agency may establish local programs to assist in the establishment and preservation of low-and moderate-income housing. Apendix A, contains a brief description of these various programs. 23 I APPENDIX A LIST OF FUNDING PROGRAMS HOME ProRram The HOME Program is a federally funded grant program for housing. Funds are allocated by formula to participating jurisdictions who are allowed great flexibility with respect to the types of properties to be assisted, the types of development (new construction, modest or major rehab, etc.) to be undertaken, the forms and amounts of financing to be offered, the quality and type of housing provided, the households assisted and procedures for running programs. The intent of HOME is: To expand the supply of decent, safe sanitary and affordable housing. To strengthen the abilities of state and local governments to provide housing. To assure that federal housing services, financing, and other investments are provided to state and local governments in a coordinated, supportive fashion. I HOME is designed as a partnership among the federal government, sate and local governments and those in the for-profit and non-profit sectors who build, own manage, finance and support low-income housing initiatives. CDBG Currently, the City uses CDBG funds primarily for program planning and supportive services. Should the need arise to use these funds for affordable housing production in the future, a portion of the City's annual CDBG allotment could potentially be redirected. Low Income Housim! Tax Credit (LlHTC) As part of the Tax Reform Act of 1986, Congress created the Low Income Housing Tax Credit (LlHTC), which provides a tax shelter for limited partners in low-income housing projects. This program will represent an important financial resource for affordable housing development by the private sector. Private Institutions I Under the Community Reinvestment Act (CRA), private lending institutions such as banks, thrifts, and their affiliated mortgage banking subsidiaries are required to annually assess the credit needs of the communities in which they operate. The City 24 I has and will continue to hold meetings with lenders to discuss local needs and potential programs that may be within the guidelines of community reinvestment. Savinl!s Association Mortl!al!e Company (SAMCO) SAMCO is a statewide organization supported by stockholder savings institutions that assists in the development and financing of socially-oriented affordable housing projects. SAMCO's Board of Directors reviews and selects projects to be offered in loan pools for participation purchase by its members. The pooling process has enabled SAMCO and its members to invest additional funds in low-and moderate-income communities. SAMCO has worked extensively with non-profit developers and financed a variety of housing projects that utilize joint public/private resources. California Communitv Reinvestment Corporation (CCRC) I CCRC is a non-profit mortgage banking consortium specifically designed to provide long-term debt financing for affordable housing developments. Created in 1989, the CCRC is comprised of fifty-six banks representing all areas of the State. The CCRC finances loans by pooling funds from each of its member banks. CCRC has its own staff, which screens applications and provides technical assistance to developers. A loan committee, consisting of senior credit officers from member banks, approves all loans on behalf of member banks. When the loan committee approves a loan, CCRC draws funds from each bank in proportion to their size. CCRC enters into "partnership" with cities to leverage public monies (redevelopment low-and moderate-income housing funds, CDBG, etc.) with CCRC private funds to construct low-and moderate-income housing. Five different 30-year fixed rate loans products are offered, with afford ability required to be maintained for the life of the loan. Below market interest rates are provided to both non-profit and for-profit sponsors (Treasury bonds of comparable maturities plus 100 basis points for non- profits, plus 200 basis points for profits.) Federal Home Loan Bank The affordable housing programs mandated by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 and the Community Reinvestment Act are now being implemented through the 12 Federal Home Loan Banks. By law, the affordable housing provisions call for, among other things, a requirement for interest- subsidized loans to be extended to low-income homebuyers, as well as a variety of - lending activities that fall under the "community investment" heading. I 25 I Through the Affordable Housing Program, the FHLB provides interest rate subsides on advances to member banks that engage in lending for long-term low-to moderate- income owner-occupied or affordable rental housing. Loans that qualify for the program include those used to finance homeownership by low-income families, and loans which finance the purchase, construction or rehabilitation of rental housing, of which at least 20 percent will be occupied by very low-income households. In addition to the Affordable Housing Programs, the FHLB also implements a Community Investment Program. Through this program, each district bank appoints a community investment officer and provides "community-oriented" mortgage loans to members at its own cost of funds. Loans that qualify for the program include those used to finance the purchase or rehabilitation of homes by borrowers earning 115% or less of the are median-income, and those that finance commercial or economic development projects that benefit low-and moderate-income families. Deed-Restrict ExistinR Projects I The City has numerous multi-family projects in the Project Area that are currently occupied by lower-income tenants. The City / Agency may negotiate deed restrictions with owners of these existing projects to restrict rental rates to levels affordable to lower-income households. Low-and moderate-income housing funds for rehabilitation of the buildings may be offered as an incentive in exchange for deed restrictions. Assistance to the existing rental stock should be publicly advertised to solicit applications from existing owners. Extend ExistinR Deed Restrictions The City has four multi-family projects in the Project Area that assist lower-income tenants. However, none are eligible to convert to market rate rents during the five- year period. 1. Rancho West Apartments, 150 units will remain affordable until 2026. 2. Rancho Creek Apartments, 30 units will remain affordable until 2026. 3. Mission Village Apartments, 76 units will remain affordable until 2028. 4. Creekside Apartments, 48 units will remain affordable until 2036. 5. Riverbank Villages Senior Apartments, 66 units will remain affordable until 2058. Rancho West, Rancho Creek, and Mission Village Apartments were financed in part with redevelopment low- to moderate-income housing funds. The construction of Creekside Apartments was financed with FmHA Section 515 funds. Conversion of Commercial Development to Mixed-Use Development I The City of Temecula's General Plan and Old Town Specific Plan both contains policies that encourage the use of mixed-use development. Within the project Area and 26 I particularly within Old Town these policies could facilitate the conversion of second and third story office/retail space to affordable units. Low-and moderate -income housing funds for rehabilitation of the space may be offered as an incentive for conversion to affordable units. As part of the funding assistance the City I Agency may consider placing deed restrictions on these converted units to ensure unit affordability. Subsidized New Construction/Purchase of Existina Housina New construction of rental housing for lower-income households traditionary represents one of the Agency's primary options to fulfill its inclusionary housing production requirements. The gap between market rents and rents affordable to very low-and low- income households, typically require subsidies to achieve affordability. The amount of subsidy required depends on the type and size of housing to be developed. Substantial Rehabilitation I Rehabilitation of existing rental properties is a cost-effective program option to fulfill the Agency's affordable housing production requirements. The Agency uses Redevelopment Low and Moderate Income Housing Funds to provide financial assistance for the rehabilitation of private non-profit and for-profit rental properties. The Agency has established its own rehabilitation program. The Riverside County Economic Development Agency also administers a similar program available to owners at property in Temecula. Residential Improvement Proaram Preservation of the single-family housing stock owned and occupied by very low, low- and median-income families fulfills Agency goals. The Agency uses Redevelopment Low and Moderate Income Housing Funds to assist families with correction of code deficiencies and exterior repairs, which if left deferred would create significant blight. For senior citizens only, the assistance is a grant. Mobilehome Park Assistance Proaram Currently, a single mobile home park exists in the City. The City may develop a program using redevelopment low-and moderate-income housing funds to assist lower- and moderate-income mobilehome park tenants in stabilizing their rents. This may result in the conversion of a park to tenant-owned. A City program should be in conjunction with the State Mobilehome Park Conversion Assistance Program. I Affordability controls on mobilehome parks can be achieved through different approaches: 27 I The City may assist tenant purchase of individual spaces. Permanent financing of lots may be provided through conventional financing, the State's Mobilehome Resident Ownership Program, redevelopment low-and moderate-income housing funds, and other public/private subsidies for lower-income households. The City may provide technical assistance in the formation of a tenant association, which will then purchase the park with financial assistance from the City, State, or other sources. In return, the association will be required to either maintain the existing income mix of tenants or through time, restrict the renting of spaces to lower- income tenants. In order to count mobilehome parks towards fulfillment of very low-income inclusionary production requirements, space rents would need to be deed-restricted for the life of the Redevelopment Project, and restricted to occupancy by very low- income households. First-Time Homebuyers Prollram I The First-Time Homebuyers Program (FTHB) is a down-payment assistance program for median; low- and very low-income homebuyers. Qualified buyers are eligible to receive up to $24,000 is assistance for the purchase of a primary residence. HUD requires that buyers participating in the program agree to an affordability period of 20-year for new construction and 15-years for all other property. If the property is sold prior to the end of the affordability period, and the purchaser is not eligible for the program, the assistance funds must be repaid. The funds are returned to the program to provide assistance to new participants. The program can also be structured as an interest rate buy-down program. Mortllalle Credit Certificate Prollram The Mortgage Credit Certificate Program (MCC) is available for first-time homebuyers who have not had an ownership interest in a principal residence within the previous three years. Buyers interested in participating in the program make application through their lender at the time they apply for a home loan. The MCC provides a tax credit which allows the borrower to qualify for a larger mortgage. This tax credit is calculated a 20% of the annual interest paid on the primary mortgage, and can be no greater than $2,000 per year. Simile Family Mortllalle Revenue Bond Prollram I The County of Riverside coordinates interested lenders and developers who wish to participate in a single family tax exempt bond program. The County issues tax exempt bonds to generate a pool of funds from which mortgages will be drawn. The developers and/or lenders pay the up front costs for the financing and reserve a portion of the pool to originate mortgages in their projects. The individuals 28 I purchasing the homes must be first time homebuyers and fall within certain income parameters. Ultimately, the first time homebuyer can qualify for a larger mortgage because the interest rate is lower than market rate. The developer/lender can use the mortgage pool to more effectively market their homes. Multi-Familv Bond ProRram The Multi-Family Bond Program provides long term financing for multi-family projects at tax exempt rates. The program requires that 20% of the units be reserved for low- and moderate-income residents. Project owners are required to provide a letter of credit, insurance or other credit, insurance or other credit enhancement for the financing. I I 29 I ATTACHMENT A-1 MAP OF SUB-AREA 1 I I 30 I ATTACHMENT A-2 MAP OF SUB-AREA 2 I I 30 DCity /\I Highways /\I Centerline 0 Parcels -,- ~ 0 200 Cl) I 4OOF'" :::,-""""""""'oIT -- ,,"I:"" Tho""..::::"""""" :" ..::.~ ~ .....::: =- _,,~",01~- :::.':"::,~~"""-::""""::::::-,,,,::,,,, ==.=:~~""" .... . -""P"""'" """"""".. ........-".,. """""_0. ........ --""" I ATTACHMENT A-3 MAP OF SUB AREA 3 I I 32 Subarea 3: Zoning Map 00 DCity /\I Highways ... Centerline D Parcels 400 0 ,-- 400 800 Feet m'm.p_m"",,"Ç""'T"""""._, '"'_booS",'~.Tt.""".doi,"'from"""d.t. prod"'" "'.. "~I" """,,, A..""",. Dep""",",,' ,,""T~p"'t"oo"""""'--- of RI,."". """,,,>,. ThoC","'T~'...w~'oo _«',""ffi""""""""'.""""'oo","","", oo".~p. D"""""""""oo"",",.~"'oo~'.m.. ~w~"I<>"","""""""ffiœtioo. Tho_, "'fo<ma'ooS",t~""""'~.~~.ho,"""",oi""«" mœt~~tl"'_'oo. m."""""",,«-«-.. I ATTACHMENT A-4 MAP OF SUB-AREA 4 I I 34 DCity AI Highways IV Centerline D Parcels 400 ,....., 400 800 Feel ___mod..,..CltydT"""""'- """"""",.,...,. Tho""",____,... -.,..-"""""...........- ""'T~_""""'---" d_""""". ThoCbydT~._M -~"'-'by""'-"""""" 00""_.""""'_"""""'00""- ~w~"'I0_"'mod- Tho- """"""",.,...,..._~_"""",bo_""'" """"""""""""""". ---"""".......~...... """"""'_~2004 "<j""'--'."" (¡) I PROPOSED PROJECTS PROGRAMS/CONTRIBUTION - PUBLIC I I I I I PROPOSED C6M1'LETED PROJECTS AND PROGRAMS AND CONTRIBUTION TO BLIGHT REMOVAL- PUBLIC REDEVELOPMENT PROJECT AREA JANUARY 2004-DECEMBER2009 IMPLEMENTATION PLAN Existing Use Project/Program Date Project/Program Description Contribution to Blight Removal Comoleled Public Improvement Program: Civic Center 2008 New Civic Center and Parking . Creale Employmenl Opportunites Structure . Enhance the potential for new private development . Ulilize underproductive land Façade Improvement 2005-2010 To improve the visual Program presentation of individual . Promole the "Old West" design properties in Old town theme . Facililate continued growth and economic stability . Eliminate blight and non- confonning design standards. Old Town Temecula 2005 New Community Theater . Create Employment Opportunites Community Theater . Enhance the potential for new private development . Utilize underproductive land . Removed surrounding property out of flood plain R: IRED E VlImp I omen tati nnPlan99\pnb I iproposed2004 . doc I PROPOSED PROJECTS PROGRAMS/CONTRIBUTION - PRIV A TE I I I I I PROPOSED PROJECTS AND PROGRAMS AND CONTRIBUTION TO BLIGHT REMOVAL - PRIVATE REDEVELOPMENT PROJECT AREA JANUARY 2004 - DECEMBER 2009 IMPLEMENTATION PLAN Existing Use Project/Program Date Project/Program Description Contribution to Blighl Removal Completed Private Development Program: Campus Project 2005 New Construction . Create neighborhood slability Addition to existing 3-story . Prevent business oul-migration Vacant Land commercial retail building . Create employment opportunities . Service uomet commerciaVretail needs . Utilize unproductive land Dallon 2005 New Construction of . Creale neighborhood slability 3 -story commercial building . Prevent business out-migration Vacant land . Create employment opportunities . Service unmet commerciaVretail needs . Utilize unproductive land Seaway 2007 New Construction of . Create neighborhood slability 2-Story Commercial Relail . Prevent business out-migration Vacant Land Building . Create employment opportunities . Service unmet commerciaVretail needs . Utilize unproductive land Penfold II 2005 New Construction of . Create neighborhood slability 3-Story . Prevent business out-migration Vacant Land C 0 mm ere i aVR e laiVResla uran t . Create employment opportunities Bldg, . Service unmet commerciaVretail needs . Utilize unproductive land Butterfield 2006 New Construction of . Create neighborhood slability 3-Story . Prevent business out-migration Commercial Co mm erc iaVR elai VR eSla uran t . Create employment opportunities Bldg. . Service unmet commerciaVretail needs . Utilize unproductive land Penny Dome 2006 New Construction 2 Story . Create neighborhood slability Office Building . Prevent business out-migration Vacant Land . Create employment opportunities . Service unmet commerciaVrelail needs . Utilize unproductive land R: IRED E VlImp I em entati onPlan99\200404 proposedproj ects. dnc I COMPLETED PROJECTS PROGRAMS/CONTRIBUTION - PUBLIC I I I I I COMPLETED PROJECTS AND PROGRAMS AND CONTRIBUTION TO BLIGHT REMOVAL - PUBLIC REDEVELOPMENT PROJECT AREA JANUARY 2000 - DECEMBER 2004 IMPLEMENTATION PLAN Existing Use ProjectlProgram Dale ProjectlProgram Description Contribution to Blight Removal Completed Public Improvement Program: Children's Museum June 2004 Develop an interactive hands- . Created Employment Opportunites on Children's Museum . Enhanced the potential for new private development . Utilized underproduclive land Façade Improvement 1990-2004 To improve the visual Program presentation of individual . Promote the "Old West" design properties in Old town theme . Facilitate continued growth and economic stability . Eliminate blight and non- confonning design standards. Mission Village February 2000 New construction of 76 . Created Affordable Housing 2-3 Bedroom Apartmenl Units . Created Neighborhood Stability . Utilized under productive land . Alleviated crime/lack of public safety Cottages of Old Town September New Construction of 14 - . Utilized unproductive 2004 Single Family Homes and 3 . Provided stability to the Project remodeled existing homes. Area by enhancing the pennanent Restricted to low and residenlial base moderate income facilities . Increased supply of affordable housing . Provided homeownership opportunilies Riverbank Villages September New Construction of . Created Affordable Senior Housing Senior Apartments 2004 66 I - Bedroom Senior . Created Neighborhood Stability Apartment . Utilized under productive land Vacant Land . Alleviated crimenack of public safety R: IRED E VIIm P I ementali onPl an99\pub Ii ccomp leted2004, doc I COMPLETED PROJECTS PROGRAMS/CONTRIBUTION - PRIV A TE I I I I I COMPLETED PROJECTS AND PROGRAMS AND CONTRIBUTION TO BLIGHT REMOVAL - PRIVATE REDEVELOPMENT PROJECT AREA JANUARY 1999-DECEMBER2004 IMPLEMENTATION PLAN Existing Use Project/Program Date Project/Program Description Contribulion 10 Blight Removal Comnleted Private Developmenl Program: Baily Restaurant November 2004 New Construction of Casual . Prevenled business out-migration and Fine Dining Restaurant . Created employment opportunities Vacanl Land . Serviced unmet commerciaVretail needs . Utilized unproductive land Penfold June 2002 New Construction of2 . Prevented business out-migration Story Retail Office Building . Created employment opportunities Vacant land . Serviced unmet commerciaVretail needs . Utilized unproductive land R: IRED EV\1mp I ementati onPI an99\CO MPLE TEDpri vate2004 . doc