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Home My WebLink About98-047 - Approving a Replacement Housing Plan for 435-437 S. Brich Street307 RESOLUTION NO. 98-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA DNA APPROVING A REPLACEMENT HOUSING PLAN FOR 435-437 S. BIRCH STREET THE CITY COUNCIL OF THE CITY OF SAigTA DNA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: SECTION 1. The City of Santa Aha ("City") is responsible for administerinG the use of certain funds made available by the United States Department of Housing and Urban Development (~HUD") under the HOME Investment Partnerships Program (the "HOME" ProGram). SECTION 2. The City has used HOME funds to purchase th9 vacant property located at 435-437 S. Birch Street (the ~Property"), on which there are two vacant apartment buildings, includin9 ten occupiable units and eight units that are substandard and unsuitable for rehabilitation. SECTION 3. The City and the Community Redevelopment AGency ~of the City of Santa Aha (~A9ency") propose to enter into a Cooperation Agreement, pursuant to which the Agency will use Low- and Moderate-Income Housin9 Funds pursuant to California Health and Safety Code Section 3334.2 et seq., to demolish the improvements on the Property and cause to be constructed three new residential units on the Property, consistinG of three- bedroom and four-bedroom dwellings, to be used exclusively as affordable housinG for low- and moderate-income households. SECTION 4. Projects assisted with HOME funds are subject to the replacement housin~ requirements of Section 104(d) of the Housin~ and Community Development Act of 1974, 42 U.S.C. 55304(d), and the implementin9 regulations set forth at 24 Part 42, Subpart C (542.301-42.390), which are referred to collectively as "Section 104(d).# SECTION 5. As the result of the demolition of the ten oceupiable units on the Property, the City, as the recipient of the HOME funds, is required under Section 104(d) to cause to be developed ten suitable replacement housinG units. SECTION 6. The City and Agency have prepared a draft Replacement Housin9 Plan pursuant to Section 104(d) and California Health and Safety Code Sections 33413 and 33413.5, which has been presented to this Council by the Executive Director. This draft Plan has been made available to the public prior to this meeting, followin9 the publication of notice of the availability of the draft Replacement Housin9 Plan for review and 309 comment, and the draft Replacement Housing Plan has been submitted to the HUD field office. SECTION 7. The Replacement Housing Plan includes the following information: (a) a description of the Project; (b) the location on a map and number of dwelling units by size (number of bedrooms) that will be demolished; (c) a time schedule for the commencement and completion of the demolition; (d) to the extent known, the location on a map and the number of dwelling units by size (number of bedrooms) that will be provided as replacement housing units; (e) the source of funding and a time schedule for the provision of replacement units; (f) the basis for concluding that the replacement units will remain a lower- income dwelling unit for at least 10 years from the date of initial occupancy; and (g) information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a two-bedroom unit with 2 one-bedroom units) is consistent with the City's HUD-approved consolidated plan. SECTION 8. The City Council hereby approves and adopts the Replacement Housing Plan in the form presented by the Executive Director. Adopted this 17thday of August vote: 1998 by the following CITY COUNCIL MEMBERS Pulido Aye Richardson Absent Espinoza ABsent Franklin Aye Lutz Aye Moreno ~sent McGuigan Ay~ ATTEST: /~ice ~. Guy- ~Cl'erk of the Councfl APPROVED AS TO FORM: Joseph W. Fletcher Agency Attorney 310 RESOLUTION NO. 98-047 CERTIFICATE OF ORIGINALITY State of California County of Orange I, JANICE C. GUY, Clerk of the Council, do hereby certify the attached Resolution No. ~' O, ~'~ ~to be the original resolution adopted by the City Council of the City of Santa Ana on / / ' J/ Clerk of (he C~un~2d~ City of Santa Ana' 311 REPLACEMENT HOUSING PLAN 435-437 S. BIRCH Statement of Purpose and Objective This Replacement Housing Plan is prepared in accordance with California Health and Safety Code Sections 33413 and 33413.5 and Section 104(d) of the federal Housing and Community Development Act. The project consists of the acquisition and demolition of 10 occupiable units and 8 units substandard and unsuitable for rehabilitation. The city of Santa Ana (City) and the Community Redevelopment Agency (Agency) will replace all occupied and vacant occupiable loW- or moderate-income dwelling units demolished or converted: . to a us~ other than as low- or moderate-income housing in connection with the 435-437 S. Birch Project. The acquired property includes two housing structures. Included in said structures are 4 bachelor and 6 one-bedroom units which were suitable for occupancy or rehabilitation and will require replacement. They also included 8 two-bedroom units which were not suitable or occupancy or rehabilitation and therefore will not be replaced. The 10 units are subject to replacement in accordance with the legal requirement of the California Community Redevelopment Law (Health and Safety Code Section 33413 et seq.) and the federal Housing and Community Development Act Section 104(d). The units will be demolished within 60 days from the execution of a contract. Replacement units will initially be made available for occupancy at any time during the period beginning one year before the City/Agency's submission of the information required under this plan and ending three years after commencement of demolition. Ail replacement housing will be provided within three years of commencement of demolition. Before entering into a contract committing the Community Redevelopment Agency and the City of Santa Ana to provide funds for the proposed activity that will result in demolition, the City/Agency will make public by publication in a newspaper of general circulation the information listed below. Project Property Description The project property location is delineated on a map (Exhibit A) attached. Each property is listed by address with the parcel number and number of bedrooms (Exhibit B). Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33413 et seq.), all occupied and vacant occupiable units will be replaced in kind. EXHIBIT 1 Page 1 of 2 313 Replacement Housing Units It is anticipated that the Town Square Project, located at 600- 700 West First Street and 600-700 West Third Street will be utilized for the 10 replacement housing sites. In addition, the City's land survey report identifies potential sites where any remaining replacement units will be located. Income Level of Replacement Units Over eighty percent of the replacement dwelling units will be affordable to and occupied exclusively by very-low-income tenants. This exceeds the requirement that seventy-five p~cent of the replacement units must be available at affordable housing ¢~st to persons in the same 'income level as the persons' displaced'from the dwelling ~nits.that are being removed from the iow- or moderate-income housing market. Funding Source The Agency and the City of Santa Ana have committed sufficient HOME and tax increment funds to finance the acquisition and rehabilitation of the 10 required replacement housing units in the Town Square Condominium Project. Any units not accommodated in Town Square will be developed on infill sites or will be vacant uninhabitable units that are acquired and rehabilitated to meet the replacement housing obligations for the Birch Street Project. Low/Moderate Income Assurance Ail agreements related to replacement housing units will contain a covenant guaranteeing 30 years of low or moderate income affordability, as required by the state Health and Safety Code and the federal Housing and Community Development Act. Article 34 Compliance The replacement housing to be provided pursuant to this Plan does not require the approval of the voters pursuant to Article 34 of the California Constitution, in that all of the replacement housing units fall within exceptions to the definition of "low-rent housing project" in California Health and Safety Code 37001. The 10 units consist of the acquisition and rehabilitation of vacant uninhabitable existing units and will be privately owned housing. Availability of Plan In accordance with Community Redevelopment Law, a copy of the Replacement Housing Plan will be available for review and comment by other public agencies and the general public at the City of Santa Aha City Hall, 20 Civic Center Plaza, Santa Ana, California, in the office of the City Clerk located on the eighth floor. EXHIBIT 1 Page 2 of 2 315 StNG~E RES. (2 STORY) MULTI (2STOB~ CHESTNUT ST. APARTME~VTS SINGLE FAMII. Y RES. SINGLE FA. MILY RES. (2STORY) 425 SIIVG~E FAMILY I~ESID~I37AI. cr~O STORY) 441 CAMILE ST. t 501 SINGLEFAMILYRES. I 435 & 437 S. BIRCH STREET EXHIBIT A 317 List APN 398-292-25 Birch Street of Acquisition and Demolition 435 S. or occupation. Birch - 8 two-bedroom units, unsuitable for rehabilitation Replacement Unit Original Unit No. Bedroom 1 2BR/1BA N/A 2 2BR/1BA N/A 3 2BR/1BA N/A 4 2BR/1BA N/A 5 2BR/1BA N/A 6 2BR/1BA N/A 7 2BR/1BA N/A. 8 2BR/1BA N/A APN 398-292-25 437 S. Birch - 10 units (4 bachelor and 6 one-bedroom), vacant and suitable for rehabilitation. Original Unit No. Bedroom Replacement Unit 1. 201 1BR/1BA 1BR/1BA 2. 202 1BR/1BA 1BR/1BA 3. 203 1BR/1BA 1BR/1BA 4. 204 Studio 1BR/1BA 5. 205 Studio 1BR/1BA 6. 301 1BR/1BA 1BR/1BA 7. 302 1BR/1BA 1BR/1BA 8. 303 1BR/1BA 1BR/1BA 9. 304 Studio 1BR/1BA 10. 305 Studio 1BR/1BA EXHIBIT B 319 Project Budget Demolition of 435 and 437 S. Construction Contract Contingency/Site Work Birch Street $39,850 7,970 Total Estimated Construction Cost $47,820 %-¸ EXHIBIT 2