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REQUEST FOR <br /> <br /> COUNCIL ACTION <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> JUNE 7, 2010 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> ADEQUATE SITES PROGRAM REPORT ? As Amended <br /> ? Ordinance on 1S` Reading <br /> FOR 703 N. LACY ? Ordinance on 2"d Reading <br /> ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> Receive and file the Adequate Sites Program Report for 703 N. Lacy Street. <br /> DISCUSSION <br /> California Government Code Section 65583 created the State's Adequate Sites Program <br /> (Program) which enables cities to meet a portion of their Regional Housing Needs Assessment <br /> (RHNA) obligation to produce affordable housing by means other than new construction. One of <br /> the approaches allowed by the Program is the acquisition and rehabilitation of existing multifamily <br /> projects when that activity results in the conversion of rental units from non-affordable to <br /> affordable, and when a number of other conditions are met. <br /> During the preparation of the City's recently approved 2006-2014 Housing Element, staff engaged <br /> in substantial discussions with the California Department of Housing and Community Development <br /> (HCD) regarding which of the City's multifamily acquisition and rehabilitation projects were eligible <br /> to receive credit. All but one were rejected by HCD because in its view the timing of the <br /> commitment of City funding made them ineligible. Only those activities that were listed as projects <br /> in the new Housing Element and that received City or Redevelopment Agency funding between <br /> July 2006 and August 2009 were considered eligible for the Program. The 26 unit multifamily <br /> project located at 703 N. Lacy Street met this and all other HCD requirements. <br /> A report on the project must be made to the legislative body and to HCD by July 1, 2010. The <br /> Adequate Sites Program Alternative Checklist (Exhibit 1) was created by HCD for the purpose of <br /> determining if activities such as the 703 N. Lacy project meet the requirements of the Program. <br /> The checklist indicates that the project qualifies because prior to acquisition, project rents were not <br /> affordable to low- or very low-income households. Following the acquisition, rents were made <br /> affordable by means of a recorded covenant that will be in place for 55 years. Additionally, all <br /> applicable relocation requirements were met; and once the rehabilitation is complete, all units will <br /> be decent, safe and sanitary. <br /> 19D-1 <br /> <br />