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WORK STUDY SESSION <br />WS.A. ROLE OF REDEVELOPMENT IN AFFORDABLE HOUSING — Presented <br />by Ms. Cathy Head representing Keyser Marston Associates, Inc. <br />Mayor Pulido left the meeting at 7:33 p.m. <br />Highlights of the work study session include the following: <br />• Changes in redevelopment law were enacted in the fall of 2001 (AB <br />637) <br />• One of most important sources of funding is property tax increment <br />housing set -aside funds <br />• These funds are comprised of 20% of gross property tax <br />increments generated by the City's redevelopment areas (Central <br />City, South Main, Inter -City; North Harbor; and Bristol, and, South <br />Harbor) <br />• Set -asides must be used to increase, improve and preserve the <br />supply of low and moderate income housing <br />• Long-term deed restrictions must be applied <br />• Housing must be provided at affordable housing cost <br />• Infrastructure improvements must be directly tied to an affordable <br />housing project subject to covenants, and must be a fundamental <br />component of the project <br />Improvements can only be funded in proportion to percent of <br />affordable units in the project <br />• Replacement housing obligation exists any time Agency causes <br />housing to be destroyed and the replacement housing plan must <br />be adopted before agreement is executed that causes demolition <br />• Replacement units can be anywhere in the City <br />Replacement Units must match income level of household that <br />resided in the destroyed unit <br />• Deed restriction is 55 years for rental and 45 years for sale <br />• 30% of housing developed by an Agency must be available to low <br />and moderate income households; 50% of these units must be <br />available to very -low income households <br />• Requirements apply to project areas adopted after January 1976; <br />would apply to all except Central City <br />15% of units developed in project area by private developers and/or <br />with Agency assistance must be affordable units subject to deed <br />restrictions <br />Agency must spend housing funds for very -low and low income <br />households in proportion to unmet need <br />Agency must limit expenditures on Senior Citizen projects to same <br />proportion as 65+ population in City <br />CITY COUNCIL MINUTES 31 JANUARY 22, 2002 <br />