HomeMy WebLinkAboutJT25K - LOAN AGMT HOUSING DEV.
REQUEST FOR
COUNCIUAGENCY
ACTION
MEETING DATE:
~
~
CLERK OF COUNCIL USE ONLY:
JANUARY 18, 2005
TITLE:
APPROVED
D As Recommended
D As Amended
D Ordinance on 1 st Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
LOAN AGREEMENT WITH ORANGE
HOUSING DEVELOPMENT CORPORATION
AND AUTHORIZATION OF RELOCATION
PLAN
; OJÐ{k Y2LeMLiL
CITY MANAGER EXECUTIVE DIRECTOR
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
CITY COUNCIL ACTION
1.
Recommend that the City Council:
a)
Direct the City Attorney to prepare a loan agreement with
Orange Housing Development Corporation for the acquisition of a
24 unit multi-family property located at 901 E. Sixth Street in
an amount not to exceed $1,300,000 and authorize the Executive
Director of the Community Development Agency or designee to
execute all required documents.
b)
Adopt a resolution approving the Relocation
residential property located at 901 E. Sixth Street.
Plan
for
COMMUNITY REDEVELOPMENT AGENCY ACTION
Direct the Agency General Counsel to prepare a loan agreement with Orange
Housing Development Corporation for the acquisition of a 24 unit multi-
family property located at 901 E. Sixth Street in an amount not to exceed
$2,607,500 and authorize the Executive Director of the Community
Development Agency or designee to execute all documents as necessary.
JT25K-1
Loan Agreement with
OHDC and Authorization of
Relocation Plan
January 18, 2005
Page 2
COIGmNJ:TY REDEVELOPMEN'l' AND HOUSING COHHISSION RECOMMENDATION
1.
Recommended that the City Council:
a)
Direct the City Attorney to prepare a loan agreement with Orange
Housing Development Corporation for the acquisition of a 24 unit
multi-family property located at 901 E. Sixth Street in an
amount not to exceed $1,300,000 and authorize the Executive
Director of the Communi ty Development Agency or designee to
execute all required documents.
b)
Adopt a resolution approving the Relocation Plan for residential
property located at 901 E. Sixth Street.
2.
Recommended that the Community Redevelopment Agency direct the Agency
General Counsel to prepare a loan agreement with Orange Housing
Development Corporation for the acquisition of a 24 unit multi-family
property located at 901 E. Sixth Street in an amount not to exceed
$2,607,500 and authorize the Executive Director of the Community
Development Agency or designee to execute all documents as necessary.
By a vote of 4:1 (Turner opposed, Betancourt and Rodriguez absent) at its
Special Meeting of January 10, 2005.
DISCUSSION
Orange Housing Development Corporation (OHDC) is a California nonprofit
corporation, which is dedicated to the development of quality affordable
housing. OHDC owns and operates 1,300 affordable rental units in Orange,
San Diego, and San Bernardino counties. In Santa Ana, OHDC most recently
partnered with the City of Santa Ana to successfully rehabilitate a hotel
located at 939 E. 17th Street into an 89 unit senior complex. OHDC also
owns 146 units on Minnie Street and has been instrumental in the success
of the Cornerstone Village Owners Association.
OHDC has entered into a conditional purchase agreement for the
acquisition of a 24 one-bedroom multifamily property located at 901 E.
Sixth Street (Exhibit 1) for $3,360,000. This amount is approximately 5%
below the appraised value. OHDC will be obtaining a first mortgage with
Washington Mutual in the amount of $1,032,158. The City and Agency loans
will be zero percent interest with annual residual receipts payments.
JT25K-2
Loan Agreement with
OHDC and Authorization of
Relocation Plan
January 18, 2005
Page 3
The City and Agency loans will fund the
rehabilitation, relocation, and other soft
acquisition and rehabilitation (Exhibit 2) .
gap
cost
in acquisition cost,
associated with the
All units will have affordability covenants recorded, which will restrict
the rents for a period of 55 years. The affordable unit mix and rents
will be as follows:
Affordability Level Number Of units Rent
Extremely low-income (30%) 2 $425
Very low-income (40%-50%) 8 $566-$756
Low -income (60%-80%) 14 $901-$907
The acquisition of this property will assist the City and Agency to meet
its very low-income affordable housing goals as identified in the
Consolidated Plan, Redevelopment Implementation Plan and Housing Element.
When a Redevelopment Agency enters into an agreement for the acquisition
or disposition and development of property which agreement would lead to
displacement of people from their homes, the legislative body must adopt,
by resolution, a relocation plan. The OHDC Sixth Street Project
Relocation Plan (Exhibit 3) has been prepared in conformance with
applicable provisions of California Relocation Assistance Law and
Relocation Guidelines as well as United States Department of Housing and
Urban Development (HUD) regulations. This plan is required due to the
temporary displacement of 20 households as a result of the
rehabilitation. There are currently 4 vacant units and there will be no
permanent relocation of any households. All households will be
accommodated within the project. The estimated cost for temporary
relocation, including a contingency, is $221,400 and will be paid from
loan proceeds.
JT25K-3
Loan Agreement with
OHDC and Authorization of
Relocation Plan
January 18, 2005
Page 4
FISCAL IMPACT
Funds for the acquisition and rehabilitation loans are available in the
HOME Program in the amount of $1,300,000 (account no. 130-148-6951) and
Tax Increment Housing Set-Aside Fund accounts in the amount of $2,607,500
(account nos. 502-936-6951, 503-936-6951, 504-936-6951 and 505-936-6951) .
APPROVED AS TO FUNDS AND ACCOUNTS
~~~~~ l~. . U-.J)
Francisco Gutierrez --CvJ
Executive Director f
Finance & Management Services
Agency
patricia C. Whitaker
Executive Director
Community Development Agency
PCW/SLB/mlr
H:Actions\2005CC\JT CC-CRA LoanAgreeOHCSandAuthorizRelocationPlan
1-18-05
JT25K-4
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5TH ST.
1
901 East Sixth Street
Exhibit 1
JT25K-5
Sources And Uses Budget
901 E. Sixth Street
Sources
Washington Mutual
Agency Loan
City Loan
Uses
Acquisition Cost
Construction/Rehabilitation Cost
Relocation
Exhibit 2
JT25K-6
$1,032,158
2,607,500
1,300,000
$4,939,658
$3,360,000
1,358,258
221,400
$4,939,658
RELOCATION PLAN
FOR THE
ORANGE HOUSING DEVELOPMENT CORPORATION
901 EAST 6TH STREET PROJECT
PREPARED FOR
THE CITY OF SANTA ANA
By
OVERLAND, PACIFIC & CUTLER, INC.
DECEMBER 2004
EXHIBIT 3
JT25K-7
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1
I.
PROJECT LOCATION AND DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2
A. LOCATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2
B. PROJECT DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
II.
ASSESSMENT OF RELOCATION NEEDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
A. METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
B. SURVEY RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
1. Occupancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
2. Household Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
3. Demographic Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
4. Profile of Potentially Displaced Residents. . . . . . . . . . . . . . . . . . . . . . .. 7
III.
HOUSING RESOURCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
IV.
THE RELOCATION PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10
A. PROGRAM ASSURANCES, STANDARDS AND OBJECTIVES. . . . . . . . . .. 10
B. RELOCATION ADVISORY ASSISTANCE. . . . . . . . . . . . . . . . . . . . . . . . . . .. 11
C. RELOCATION BENEFITS (FINANCIAL ASSISTANCE) ................. 12
1. Temporary Displacees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
2. Permanent Displacees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
3. Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
RELOCATION TAX CONSEQUENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
GRIEVANCE PROCEDURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
EVICTION POLICY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
PROJECTED DATES OF DISPLACEMENT....... ..... .... . .. ........ 15
CITIZEN PARTICIPATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
ESTIMATED RELOCATION COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
D.
E.
F.
G.
H.
I.
JT25K-8
Table 1:
Table 2:
Table 3:
Table 4:
Distribution of Households by Family Size. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
Income Levels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
2000 Census Population - City of Santa Ana & Tract 744.05 ................... 6
Rental Unit Availability and Cost by Bedroom Size. . . . . . . . . . . . . . . . . . . . . . . . . .. 8
Exhibit A:
Exhibit B:
Exhibit C:
HUD Income Limits - Orange County
Notice of Non-Displacement
Plan Addendum (Public Comments & Response to Public Comments)
JT25K-9
The following relocation plan (the Plan) has been prepared for submission to the
Redevelopment Agency of the City of Santa Ana (the Agency) in conformance with the
applicable provisions of the California Relocation Assistance Law (California Government
Code Section 7260 et seq.), the Relocation Guidelines (California Code of Regulations Title
25, Chapter 6) and Handbook 1378 of the United States Department of Housing and Urban
Development (HUD). The subject of the Plan is the 901 East 6th Street Project (the Project)
being undertaken by the Orange Housing Development Corporation (the Developer). The
Project involves the rehabilitation of 24 multi-family housing units in a densely occupied and
highly impacted residential area of central Santa Ana. Funding being used to complete the
rehabilitation will be from Tax Increment, HOME, and Developer funds.
The statutory basis for this plan arises from the anticipated need to displace households
temporarily. No permanent displacement is anticipated as all households meet occupancy
and income standards to return to the rehabilitated units. The Plan is presented in 4
Sections:
Section I: Project description and general demographic data
Section II: Profile of tenants who may be displaced
Section III: Description of available housing resources
Section IV: Description of the relocation assistance program
The Plan has been prepared by Overland, Pacific & Cutler, Inc. (OPC) for Orange Housing
Development Corporation (the Developer), who is responsible for submitting a plan to the
Agency.
Prepared by Overland, Pacific & Cutler, Inc.
Pagel
JT25K-10
A.
LOCATION
The Project is located at 901 East 6th Street in northeastern portion of the City of Santa
Ana, generally bounded by Brown Street to the north, 6th Street to the south, Poinsettia
Street to the east and Garfield Street to the west. (see Figures 1 and 2).
Figure 1: Regional Project Location
Prepared by Overland, Pacific & Cutler, Inc.
Page 2
JT25K-11
Relocation Plan for the OHDC 901 East 6th Street Project
Figure 2: Project Site Location
B.
PROJECT DESCRIPTION
The Developer has conducted a thorough inspection of the Project building and is
proposing to undertake all needed improvements to the individual units, up to six units at
a time. Interior rehabilitation activities will include replacement of major kitchen appliances,
new paint and bathroom enhancements as well as replacement of floor coverings, doors
and windows. Exterior improvements will include the addition, repair or replacement of
roofs, staircases, balconies, landscaping, water heaters, decking, trash enclosures, parking
lots and building facades.
Prepared by Overland, Pacific & Cutler, Inc.
Page 3
JT25K-12
Relocation Plan for the OHDC 901 East 6th Street Project
The rehabilitation and construction cycle will last between three weeks to one month per
unit and the construction is expected to begin immediately following the Agency approval
in February 2005.
As a result of the rehabilitation, residents will be required to move temporarily from their
units. Upon completion of the rehabilitation, residents will be able to return to a rehabilitated
unit in the building/complex.
Prepared by Overland, Pacific & Cutler, Inc.
Page 4
JT25K-13
A.
METHODOLOGY
As a result of the need to temporarily displace Projects occupants, a survey was conducted
of the households that would be impacted to better plan for the temporary displacements.
Personal interviews were conducted with 19 of 20 residents, followed up by efforts to
compare gathered information to the data provided by the Developer's property
management staff. Data for this Plan are accurate as of November 24, 2004. One
household could not be reached despite several attempts and the Developer's information
was used for preparation of this plan. Three units were confirmed vacant at the time of the
interviews and one unit gave notice to vacate by the end of November 2004.
B.
SURVEY RESULTS
The resident population within the Project totals 109 individuals. Among this group, there
are 54 adults and 55 children. The 24 units included in this Plan now contain 24 rentable
one-bedroom apartments.
1.
Occupancy
The breakdown of households by family size is as follows:
Table 1: DistriblJti()n9f.Hou~~holds...~yFaI11Uy.Slze (20 households)
# in HoUsehOld 3 4 5 6 7 8 9
# of Households 1 6 4 5 1 2 1
There is an average of 5.5 occupants per unit in the Project. In accordance with the
State Building Code, all households will meet the necessary occupancy standards
and be able to return to a rehabilitated unit in the Project.
Prepared by Overland, Pacific & Cutler, Inc.
Page 5
JT25K-14
Relocation Plan for the OHDC 901 East 6th Street Project
2.
Household Income
Income data were obtained from 20 households. The figures below include income
provided by the property management staff for the one no respondent household.
According to income standards for the County of Orange (Exhibit A) adjusted for
family size as published by the United States Department of Housing and Urban
Development (HUD), six Project area tenant household qualify as extremely low
income (30% or less of median), seven qualify as very low income (31%-50% of
median) and seven as low income (51 %-80% of median) as seen in Table 2 below.
The range of reported annual household incomes among the 20 respondents was
$12,000-$60,000.
Táble2: 11"I9pm....""e",I$ (20itlQU sehQI~.)
Extremely Low Ve ry Low Low Moderate
6 7 7 0
3.
Demographic Summary
Of the 109 currently known residents, there are 54 adults and 55 children. The
ethnic distribution in the Project is 100% Hispanic with Spanish reported as their
primary household language in majority of households. This generally resembles the
rankings and pattern in the Census Tract Area but deviates from the overall Census
figures for the City.
Table 3:.....2000Cem~...s..PQPÙlåt~<m.Ci~QfSåtlt~~l1i)&. Tri)ct 744¡Q5
Population Tract 744.05 % City 0/0
White 2,655 38.1 % 144,425 42.7%
Black or African American 147 2.1 % 5,749 1 .7%
American Indian and Alaska Native 76 1 .1 % 4,01 3 1 .2%
Asian 81 1 .2% 29,778 8.8%
Native Hawaiian and Other Pacific 1 0 0.1 % 1 ,1 60 0.3%
Islander
Prepared by Overland, Pacific & Cutler, Inc.
Page 6
JT25K-15
Relocation Plan for the OHDC 901 East 6th Street Project
Some Other .Race 3,571 51.3% 137,360 40.6%
Two or More Races 425 6.1% 15,492 4.6%
Hispanic orL.atino(of Any Race) 6,450 92.6% 257,097 76.1%
Source: 2000 U.S. Census
4.
Profile of Potentially Displaced Residents
Funding source requirements limit occupancy in the Project to those households
which earn less than 80% of the median income standard adjusted for family size
as established by the United States Department of Urban Development (HUD) (See
Exhibit A). Based upon the most currently available tenant income data, there are
no households whose income exceeds the permitted limit.
Prepared by Overland, Pacific & Cutler, Inc.
Page 7
JT25K-16
Rehabilitation work in the Project will result in the need to temporarily displace residents
from their units. Temporary relocation needs will be met by utilizing available on-site units,
if any. Households that cannot be accommodated on-site will be provided temporary units
off-site in either comparable apartment or motel accommodations.
Since the rehabilitation is planned to last between three to fourweeks, finding landlords that
will allow occupancy of only a month is not likely. Therefore, it is anticipated that most
households will be provided temporary housing at motels. Regardless, both types of
temporary sites were researched and the following is the information gathered.
A survey was conducted during the month of November 2004 to determine the availability
of rental housing resources within the City of Santa Ana. The results, summarized below,
indicate the number of found units by bedroom size, the cost range in each category and
median market rent for each category. The one-bedroom and two-bedroom units found
were all apartments. The three- and four-bedroom units included apartments and single-
family rental units. Housing availability is not expected to be a factor in the relocation
process, given the balance between needs and available resources.
Tåble4: RØt'~åIY"'ltAV~ilabill~ and Costþy BedrQÞmSize
1bdr 2 bdr 3bdr 4 bdr
# Found 48 34 1 5 4
RenfR¡¡nge $750-$1 ,1 00 $1 ,1 50-$1 ,670 $1 ,500-$2,500 $1 ,750-$2,300
Market Median Rent $975 $1 ,250 $1 ,700 $2,000
The survey of motels reflected two types of units available; units with cooking facilities and
those without. The following are the results of the survey. Twelve motels in the radius of
1-4 miles from the Project were contacted and willing to provide the information needed.
Five motels have cooking ability within their units by providing refrigerators, microwaves,
stoves and even dishwashers to their clients. In some cases they have studio or one
bedroom suite accommodations. The weekly rates for these motels range from $260-$560
depending on the size of the unit, number of beds and amenities available. The remaining
seven motels might offer refrigerators and microwaves but do not provide cooking facilities
Prepared by Overland, Pacific & Cutler, Inc.
Page 8
JT25K-17
Relocation Plan for the OHDC 901 East 6th Street Project
that are available in most homes. The weekly rates for these units are from $245-$511 and
are a less desirable choice for the length of stay needed for temporary displacees. The
median weekly rate expected at the time of displacement is $385 for a studio suite with a
full kitchen allowing up to four people in a room. It is anticipated that larger families will
require two such rooms to satisfy the decent, safe and sanitary requirements of temporary
replacement housing.
Since it is anticipated that six units at a time will be rehabilitated, it is expected that there
will be adequate temporary facilities to house the occupants.
Concurrent Displacement
The Santa Ana Community College Expansion Project undertaken by the Rancho Santiago
Community College District is expected to result in a permanent displacement of
approximately 55 households. Its location is about two miles west from the 6th Street
Project. Given its location and the minimal expected off-site replacement housing
requirements of the 6th Street Project, it should be easy to satisfy both projects by existing
market opportunities.
Prepared by Overland, Pacific & Cutler, Inc.
Page 9
JT25K-18
The relocation program and assistance offered by the Developer will conform to provisions
of the California Relocation Law, Government Code Section 7260, et. seq., the California
Relocation Guidelines, California Code of Regulations Title 25, Chapter 6, as amended
January 1, 1998, the federal Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) and the implementing regulations of Handbook 1378 of the
Department of Housing and Urban Development (HUD), as appropriate.
A.
PROGRAM ASSURANCES, STANDARDS AND OBJECTIVES
1.
Fully inform eligible project occupants of the nature of, and procedures for
obtaining relocation assistance and benefits, including the date and
approximate duration of temporary relocation.
2.
Determine the needs of each residential displacee household eligible for
assistance.
3.
Provide an adequate number of referrals with addresses to comparable,
decent, safe and sanitary housing units within a reasonable time prior to
displacement and supply information concerning the terms and conditions
under which the tenant may lease and occupy said housing.
4.
Assure that no residential occupant is required to move without a minimum
of 90 days written notice to vacate.
4.
Provide assistance that does not result in different, or separate treatment due
to race, color, religion, national origin, sex, sexual orientation, marital status,
or other arbitrary circumstances.
5.
Supply information concerning federal, and state housing programs and other
governmental programs providing assistance to displaced persons, as
needed.
6.
Assist each eligible person to complete applications for benefits.
Prepared by Overland, Pacific & Cutler, Inc.
Page 10
JT25K-19
7.
B.
Relocation Plan for the OHDC 901 East 6th Street Project
Make relocation benefit payments in accordance with State and HUD
guidelines.
8.
Inform all persons ofthe Developer's property management policies including
criteria for pursuing tenant evictions.
RELOCATION ADVISORY ASSISTANCE
As a function of the overall relocation assistance program, technical and advisory
assistance will be provided to all residents by Agency staff, the Developer and contracted
relocation representatives. The following services and tasks will be undertaken:
1.
Each displaced household will be personally interviewed to gather
information appropriate to determine needs and preferences with regard to
the replacement of existing accommodations. Inquiries made of residential
occupants by relocation personnel will cover the following areas: family size,
ethnic background, immigration status, age and health considerations,
current employment status, family income, transportation needs, and
preferences relative to replacement housing.
2.
Non-displaced residents will be provided a formal Notice of Non-
Displacement (see Exhibit B). Permanent displacees will be referred to the
Agency personnel to determine possible eligibility for assistance under the
Section 8 Program.
3.
As soon as feasible, the relocation representative shall explain the relocation
payments and other assistance for which households and individuals may be
eligible, including related eligibility requirements and the procedures for
obtaining such assistance.
4.
Assistance will be provided to complete rental application forms and
coordinate move-in arrangements. Temporary displacees will be kept
informed of project timing and receive appropriate notice to prepare for
required moves. Claims for compensable expenses associated with the
temporary displacement process will be processed expeditiously.
Prepared by Overland, Pacific & Cutler, Inc.
Page 11
JT25K-20
Relocation Plan for the OHDC 901 East 6th Street Project
5.
Special assistance in the form of referrals to governmental and social service
agencies will be made, as appropriate.
6.
Bilingual (Spanish-English) assistance will be provided, as needed.
C.
RELOCATION BENEFITS (FINANCIAL ASSISTANCE)
Relocation benefits will be offered to all households temporarily or permanently displaced
in accordance with the California Relocation Law, Government Code Section 7260, et. seq.,
the California Relocation Guidelines, California Code of Regulations Title 25, Chapter 6,
as amended January 1, 1998, the federal Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) and the implementing regulations of Handbook 1378
of the Department of Housing and Urban Development (HUD), as appropriate. Benefits will
be paid to eligible displaced persons upon submission of required documentation in
accordance with approved procedures.
Eligibility requirements and benefit plans will be discussed with all temporary and
permanent displacees. In the course of personal interviews and follow-up visits, each
displacee will be counseled as to available options and the consequences of any choice
with respect to housing choices and potential financial assistance.
The Developer will process advance payment requests in order to alleviate hardships for
tenants who do not have access to sufficient funds to pay move-in costs such as first
month's rent and/or security deposits. Requests for advance payments will be processed
expeditiously to help avoid the loss of desirable, appropriate replacement housing.
The relocation process includes: household interviews; needs analyses; appropriate
replacement housing referrals; preparation and service of appropriate notices; file
documentation, eligibility determinations, processing of claims; moving coordination; and
other general services intended to assist displacees.
1.
Temporary Displacees
Temporary displacees will be entitled to compensation for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation including, but
Prepared by Overland, Pacific & Cutler, Inc.
Page 12
JT25K-21
Relocation Plan for the OHDC 901 East 6th Street Project
not limited to, the cost of moving to and from the temporarily occupied unit, furniture
storage, utility connection charges, and any increase in housing costs, if any.
2.
Permanent Displacees
No permanent displacees are anticipated for this Project.
3.
Summary
All Project area residents will be personally informed in writing of their status as a
temporary displacee and will be provided advance written notice of the date,
approximate duration and location of the temporary dwelling to be made available.
Each affected household will receive printed information concerning the benefits and
assistance to which they may be entitled and the terms and conditions under which
the tenant may lease and occupy a suitable dwelling in the building/complex upon
completion of the project.
Temporary displacees will be provided compensation for reasonable and necessary
out-of-pocket expenses. All temporary displacement needs will be accommodated
and should not exceed 30 days.
The Developer will make timely payments to all eligible claimants. This may include,
where necessary to avoid hardship, advance payments to help secure appropriate
temporary replacement housing.
D.
RELOCATION TAX CONSEQUENCES
In general, relocation payments are not considered income for the purpose of the Internal
Revenue Code of 1968, or the Personal Income Tax Law, Part 10 of the Revenue and
Taxation Code. Displaced persons are encouraged, however, to consult with personal tax
advisors concerning the tax consequences or social service providers to obtain information
concerning the tax consequences associated with relocation payments.
Prepared by Overland, Pacific & Cutler, Inc.
Page 13
JT25K-22
Relocation Plan for the OHDC 901 East 6th Street Project
E.
GRIEVANCE PROCEDURES
The Developer's Grievance Policy follows the standards described in Article 5, Section
6150 et seq., Title 25, Chapter 6, State of California, Department of Housing and
Community Development Program guidelines. All displaced persons have the right to ask
for administrative review concerning determinations of eligibility; relocation payment
amount; the failure by the Developer to provide comparable replacement housing referrals;
or, the property management practices of the Developer.
F.
EVICTION POLICY
Eviction may affect eligibility for relocation assistance and benefits.
Relocation records will be documented to reflect the specific circumstances
surrounding any eviction action.
1.
2.
Eviction may be undertaken for one, or more of the following reasons:
(a)
Failure to pay rent, except in those cases where the failure to pay is
due to the owner's failure to keep the premises in habitable condition;
is the result of harassment or retaliatory action; or, is the result of
discontinuation, or a substantial interruption of services;
(b)
Performance of a dangerous, and/or illegal act in the unit;
(c)
A material breach of the rental agreement, and failure upon
notification to correct said breach within 30 days of Notice;
(d)
Maintenance of a nuisance, and failure to abate such nuisance upon
notification within a reasonable time following Notice;
(e)
Refusal to accept one of a reasonable number of offers of
replacement dwellings; and/or,
Prepared by Overland, Pacific & Cutler, Inc.
Page 14
JT25K-23
Relocation Plan for the OHDC 901 East 6th Street Project
(f)
A requirement under State, or local law or emergency circumstances
that cannot be prevented by reasonable efforts on the part of the
Developer.
G.
PROJECTED DATES OF DISPLACEMENT
It is anticipated that gO-day Notices-to-Vacate will be issued to the temporary displacees
of the first units to be rehabilitated no later than February 2005.
H.
CITIZEN PARTICIPATION
The Developer will fully meet its obligations under the Relocation Guidelines with respect
to the following activities:
1.
Full and timely access to documents relevant to the relocation program;
2.
Provision of technical assistance necessary to interpret elements of the
Relocation Plan and other pertinent materials;
3.
Distribution of a general notice concerning the availability of this Plan for
public review, as required, 30 days prior to its proposed adoption. Notice
recipients will include affected Project residents and all other interested
parties;
4.
The opportunity to submit written or oral comments conceming the Plan and
to have these comments attached to the Plan when it is forwarded to the
Agency Board for adoption;
5.
Final review of Plan to ensure its feasibility, compliance with applicable
environmental standards and compatibility with the City's General Plan and
relocation guidelines.
Prepared by Overland, Pacific & Cutler, Inc.
Page 15
JT25K-24
Relocation Plan for the OHDC 901 East 6th Street Project
I.
ESTIMATED RELOCATION COSTS
The Project will be funded with a combination of local, state, federal and Developer funds.
The estimate of relocation benefits is based on anecdotal tenant data and current market
rental rates.
Estimated relocation costs for the Project, including a 10% contingency are: $221,400.00.
The estimated relocation budget does not include consideration of relocation administrative
services nor any related consulting services which may be necessary for the
implementation of the Plan and Project.
Prepared by Overland, Pacific & Cutler, Inc.
Page 16
JT25K-25
JT25K-26
JT25K-27
The following figures are approved by the U. S. Department of Housing and Urban
Development (H.U.D.) for use in the County of Orange to define and determine housing
eligibility by income level.
Figures are per the Department of Housing and Community Development, Division of
Housing Policy Development, January 28, 2004.
HUDlnçc>trI~l...itrli~~. qr~ng~ Cø...raty (2004)
FamilY. Siz, l;>ttre"",lyI,.Ow V,ry.L.<ÞW L.ow Moderate
1 Person 1 5,900 26,450 40,250 63,500
2 Person 18,150 30,250 46,000 72,550
3 Pèrson 20,400 34,000 51 ,750 81 ,650
4 Person 22,700 37,800 57,500 90,700
5 Pèrson 24,500 40,800 62,100 97,950
6 Person 26,300 43,850 66,700 105,200
7 Person 28,1 00 46,850 71 ,300 1 12,450
BPèrson 29,950 49,900 75,900 1 1 9,700
JT25K-28
JT25K-29
,2004
Dear ----_:
The Orange Housing Development Corp., (OHDC) has submitted an application for financial assistance with the City of Santa
Ana to rehabilitate the building which you occupy.
This notice is to inform you that, if the assistance is provided and the building is rehabilitated, you will not be required to move
permanently. Therefore, we urge you not to move anywhere at this time. (If you elect to move for reasons of your choice, you
will not be provided relocation assistance.)
You will be able to lease and occupy your present apartment (or another suitable, decent, safe and sanitary apartment in the same
building/complex), owned by OHDC, upon completion of the rehabilitation. Of course, you must comply with standard lease
terms and conditions.
After the rehabilitation, your initial rent, including the estimated average monthly utility costs, will not exceed the greater of (a)
your current rent, or (b) 30 percent of your average monthly gross household income. Households moved to larger sized units to
satisfy state occupancy standards will be charged rents at a level based upon the relocation plan prepared by Overland, Pacific
& Cutler, Inc. If you must move temporarily so that the rehabilitation can be completed, suitable housing will be made available
to you for the temporary period, and you will be reimbursed for all reasonable extra expenses, including all moving costs and any
temporary increase in housing costs.
As a result of the necessity for temporary relocations, OCHD is required to prepare a Relocation Plan to assess the relocation
needs of those being temporarily displaced as well as to identify the relocation program that will be followed to assist in the
relocation of occupants. Therefore, OCHD has retained Overland, Pacific & Cutler, Inc. (OPC) to prepare an assessment of your
relocation needs. In order to prepare this relocation plan, OPC staff will need to conduct personal interviews with you in order
to prepare this Plan. OPC is planning to conduct personal interviews beginning the week of October 25th.
Again, we urge you not to move. If the project is approved, you can be sure that we will make every effort to accommodate your
needs. Because Federal assistance is involved, you would be protected by the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended.
This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions or want
to schedule an appointment for the personal interview, please contact Georgia Marquis of Overland, Pacific & Cutler, Inc.,
100 West Broadway, Suite 500, Long Beach, CA 90802-4432, telephone (562) 304-2000.
Sincerely,
[NAME]
[TITLE]
[AGENCY]
JT25K-30
JT25K-31
1/11/05Ies
RESOLUTION NO. 2005-007
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA APPROVING THE
RELOCATION PLAN FOR RESIDENTIAL
PROPERTY LOCATED AT 901 E. SIXTH STREET
TO MEET FEDERAL AND STATE MANDATED
REGULATIONS FOR PAYMENT OF RELOCATION
BENEFITS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1: The City Council of the City of Santa Ana hereby finds,
determines and declares as follows:
A. The City and the Community Redevelopment Agency are providing
acquisition and rehabilitation financing to Orange Housing Development
Corporation ("OHDC") a California non-profit organization, for the purchase and
rehabilitation of multi-family housing units located at 901 E. Sixth Street in Santa
Ana.
B. OHDC has entered into a conditional purchase agreement for the
acquisition of a twenty-four (24) one-bedroom unit multi-family property. The
affordability requirement for the Property will be as follows: 2 units for extremely
low income households (30% of area median income) ; 8 units for very low
income (40-50% of area median income); and 14 units for low income
households (60-80% of area median income).
C. Pursuant to California Government Code section 7260, et seq., the
legislative body is required to adopt a relocation plan, by resolution, whenever it
enters into an agreement for acquisition of real property or an agreement for the
disposition and development of property which would lead to displacement of
people from their homes.
D. The OHDC Sixth Street Project Relocation Plan has been prepared in
conformance with applicable provisions of the California Government Code
section 7260, et seq., Relocation Guidelines (California Code of Regulations,
Title 25) and Handbook 1378 of the United States Department of Housing and
Urban Development.
E. The relocation plan is required due to the temporary displacement of
twenty households in the OHDC Sixth Street acquisition and rehabilitation
project. No household will be permanently displaced; they will all be
accommodated within the project upon completion.
Resolution No. 2005-
JT25K-32
1/11/05Ies
Section 2: The City Council hereby approves the OHDC Sixth Street
relocation plan for the residential properties located at the aforementioned
address, and the establishment of an account in accordance with state and
federal mandates for the payment of relocation benefits to the temporarily
displaced households.
Section 3: This Resolution shall take effect immediately upon its adoption
by the City Council, and the Clerk of the Council shall attest to and certify the
vote adopting this Resolution.
ADOPTED this
day of
,2005.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Lisa E. Storck
Assistant City Attorney
AYES:
Councilmembers:
NOES:
Councilmembers:
ABSTAIN:
Councilmembers:
NOT PRESENT:
Councilmembers:
Resolution No. 2005-
JT25K-33
1/11/05 les
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2005-007 to be the original resolution adopted by the
City Council of the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2005-
JT25K-34