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Home My WebLink About120406 Acquis N. French- E. 10th St - Apprv Reloc Replac Hsg Plans_REQUEST FOR COUNCIL/ AGENCY ACTION MEETING DATE: DECEMBER 4, 2006 TITLE: ACQUISITION OF 1002, 10021, 1004 NORTH FRENCH STREET, AND 313, 313'x, 315, 317 EAST TENTH STREET, AND APPROVAL OF RELOCATION AND REPLACEMENT HOUSING PLANS CITY MANAGER EXECUTI E DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: 0 ,:1019 :B; ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO� IC 6e,/ Iq 2 to FILE NUMBER 3 -'6 , 4-t4�f,✓o IV4 /YK�1 cvcQ� 2� z,lwd Adopt a resolution approving the Relocation Plan for the residential property located at 1002, 10021, 1004 North French Street and 313, 313' -�, 315, 317 East Tenth Street. COMMUNITY REDEVELOPMENT AGENCY ACTION 1. Direct the Agency General Counsel to prepare and authorize the Executive Director to execute an agreement for the acquisition of real property and escrow instructions acquiring the real property located at 1002, 100211 -,�, 1004 North French Street and 313, 3131!x, 315, 317 East Tenth Street, Santa Ana, AP# 398 - 027 -15, from the Cort Stricker Separate Property Trust for the amount of $880,000 plus normal escrow and closing costs and rent loss for vacant units. 2. Adopt a resolution approving the Replacement Housing Plan for the residential property located at 1002, 10021 -, 1004 North French Street and 313, 3131 --�, 315, 317 East Tenth Street. 4 -1 Acquisition of 1002, 1002 '-�, 1004 North French Street, and 313, 313 %, 315, 317 East Tenth Street, and Approval of Relocation and Replacement Housing Plans December 4, 2006 Page 2 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION CITY COUNCIL ACTION Recommend that the City Council adopt a resolution approving the Relocation Plan for the residential property located at 1002, 1002, 1004 North French Street and 313, 313; 315, 317 East Tenth Street. COMMUNITY REDEVELOPMENT AGENCY ACTION Recommend that the Community Redevelopment Agency: 1. Direct the Agency General Counsel to prepare and authorize the Executive Director to execute an agreement for the acquisition of real property and escrow instructions acquiring the real_ property located at 1002, 1002, 1004 North French Street and 313, 3131,1, 315, 317 East Tenth Street, Santa Ana, AP# 398 - 027 15, from the Cort Stricker Separate Property Trust for the amount of $880,000 plus normal escrow and closing costs and rent loss for vacant units. 2. Adopt a resolution approving the Replacement Housing Plan for the residential property located at 1002, 1002, 1004 North French Street and 313, 31311, 315, 317 East Tenth Street. This item was continued from the November 7, 2006, Community Redevelopment and Housing Commission meeting by a vote of 4:0 (Jauregui, Turner, Yanez absent). At its Regular Meeting of November 21, 2006, the Community Redevelopment and Housing Commission voted 2:2 on this item (Turner, Yanez, No) (Jauregui, Sarmiento and Welty absent). DISCUSSION The property located at 1002, 1002, 1004 North French Street and 313, 313, 315, 317 East Tenth Street, shown on Exhibit 1, encompasses 9,234 square feet of land and is improved with a single- family residence,/ which has been subdivided into three units and a four -plex. Thee - - -' 4 -2 Acquisition of 1002, 1002 ;1, 1004 North French Street, and 313, 313 ',I�, 315, 317 East Tenth Street, and Approval of Relocation and Replacement Housing Plans December 4, 2006 Page 3 purchase price of $880,000 represents the current fair market value for the property. In an effort to preserve the historic integrity of the original home, the property will be rehabilitated in coordination with the French Park Neighborhood Association and in accordance with state historic .requirements. Once the property is rehabilitated, it will be sold to a moderate - income household. At the time the property is sold, there will be restrictions regarding re -sale affordability and maintenance standards recorded against the property. The California Health and Safety Code (Code) requires that when a Redevelopment Agency enters into an agreement for the acquisition or disposition and development of property that would lead to displacement of people from their homes, the legislative body must adopt, by resolution, a relocation plan. The acquisition of the property and subsequent demolition of the existing improvements will result in the displacement of seven households. The attached Relocation Plan (Exhibit 2) addresses this displacement and has been prepared in accordance with the Code. Additionally, the Code requires the Agency to adopt, by resolution, a replacement housing plan whenever it destroys or removes dwelling units from the low- and moderate - income housing market. Among other things, this replacement housing plan shall specify how and where the Agency shall provide replacement housing units. The attached Replacement Housing Plan (Exhibit 3) has been prepared for the property in accordance with the Code. CEQA COMPLIANCE In accordance with the California Environmental Quality Act, Categorical Exemption No. ER 2006 -176 will be filed for this property. 4 -3 Acquisition of 1002, 1002, 1004 North French Street, and 313, 313, 315, 317 East Tenth Street, and Approval of Relocation and Replacement Housing Plans December 4, 2006 Page 4 FISCAL IMPACT Funds are available in the Housing Set -Aside Fund, Santa Ana Boulevard Development Plan account (account no. 507 -936 -6611, project no. 07- 8042). APPROVED AS TO FUNDS AND ACCOUNTS: Nancy T. 6 Edwards Francisco Gutierrez Assistant Director Executive Director Community Development Agency Finance and Management Services Agency SGH /SLB /mlr H: \ACTIONS \2006 CC \JT CC -CRA Acqui1004NorthFrench 12- 4- 06.doc HWA 11/3/06 les RESOLUTION NO. 2006- A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ADOPTING A REPLACEMENT HOUSING PLAN FOR THE RESIDENTIAL PROPERTY LOCATED AT 1002, 1002'/2 , 1004 NORTH FRENCH STREET, AND 313, 313'Y2, 315, 317 EAST TENTH STREET BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. Community Redevelopment Law ( "CRL ") allows a redevelopment agency to clear or remove buildings, structures or other improvements from any real property acquired and owned by the Agency (Health and Safety Code section 33420). B. Whenever the Agency destroys or removes dwelling units from the low and moderate income housing markets, the Agency shall adopt, by resolution, a replacement housing plan, which shall specify how and where the Agency shall provide replacement housing units (Health and Safety Code section 33413). C. The Agency purchased the property located at 1002, 1002'/2, 1004 North French Street, and 313, 313'/2, 315, 317 East Tenth Street (the 'Property "). The Property encompasses 9,234 square feet of land, and is improved with a single - family residence, which has been subdivided into three units, and a four -plex. D. Section 33413.5 of the California Health and Safety Code requires that not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low- and moderate - income housing market, the Agency shall adopt by resolution a Replacement Housing Plan. E. The Agency has prepared a Replacement Housing Plan relating to the purchase of the Property, in the form presented by the Agency Executive Director. F. The Agency has made a draft of the Replacement Housing Plan available to the public and to other public agencies for a reasonable time prior to this meeting, following the publication of notice of the availability of the draft Replacement Housing Plan for review and comment. 4r-5 11/3/06 les G. The Replacement Housing Plan includes 1) the general location of housing to be rehabilitated, developed or constructed pursuant to section 33413 (the "Replacement Housing "; 2) an adequate means of financing the Replacement Housing; 3) a finding that the Replacement Housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution; 4) the number of dwelling units housing persons or families of low- or moderate - income in the Replacement Housing which will be available at affordable housing cost and which is at least equal to the number of dwelling units being demolished, and which have an equal or greater number of bedrooms as those in the demolished Property and; 5) a timetable for meeting the Replacement Housing Plan's relocation, rehabilitation and replacement housing objectives not later than four years after demolition of the Property. H. In accordance with the California Environmental Quality Act, Categorical Exemption No. ER 2006 -176 will be filed for this Property. Section 2. The Agency hereby approves and adopts the Replacement Housing Plan in the form presented by the Executive Director. Section 3. This Resolution shall take effect immediately upon its adoption by the Community Redevelopment Agency, and the Secretary of the Agency shall attest to and certify the vote adopting this Resolution. 4 -t 6 11/3/06 les ADOPTED this day of 2006. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel Bv: Lisa E. Storck Assistant Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Recording Secretary for the Community Redevelopment Agency, do hereby attest to and certify the attached Resolution No. 2006- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on l Recording Secretary Community Redevelopment Agency City of Santa Ana 4r7 THIS PAGE LEFT INTENTIONALLY BLANK HMO w W W F f N N N ELEVENTH ST. O� TENTH STREET = 9 U Z u z vPNG O w 0 = o[ N D m m N NINTH STREET F� 1004 North French Street Exhibit 1 sm THIS PAGE LEFT INTENTIONALLY BLANK 4 -10 RELOCATION PLAN FOR THE FRENCH STREET RELOCATION PROJECT COMMUNITY REDEVELOPMENT AGENCY OF SANTA ANA Copies are available in the 6h Floor, Community Development Agency Room 626 EXHIBIT 2 4 -11 THIS PAGE LEFT INTENTIONALLY BLANK 4 -12 REPLACEMENT HOUSING PLAN Statement of Purpose and Objectives This Replacement Housing Plan is prepared in accordance with California Health and Safety Code Section 33413. The project consists of the acquisition and removal from the housing market of the residential property located at 1004 North French Street in the City of Santa Ana by the Community Redevelopment Agency of the City of Santa Ana (Agency). The property consists of a single family home that has been divided into three rental units and a four -plex. Six of these units are one bedroom, and the seventh is a studio unit. All were occupied by very low- income households. Therefore they are subject to replacement in accordance with the legal requirements of the California Community Redevelopment Law (Health and Safety Code Section 33413 et seq.). Replacement units will initially be made available for occupancy at any time during the period beginning one year before the Agency's submission of the information required under the Plan and ending four years after acquisition of the property and its removal from the low- and moderate- income housing market. All replacement housing will be provided within four years of acquisition of the property and its removal from the low - and moderate - income housing market. Project Property Description The location of the project property is identified in a site map, attached as Exhibit 1. The property is further described in Exhibit 2, which identifies the property by address with parcel number and number of bedrooms. 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. Replacement Housing Units Exhibit 3 delineates by number of bedrooms the location where the replacement units are or will be located. It is anticipated that 1411 North Durant Street and 1501 North Ross Street units will be utilized for replacement housing purposes. Any replacement units not accommodated in these projects will be developed on infill sites or will be acquired or otherwise caused by regulation or agreement for the purchase of long term affordability covenants that meet replacement obligations for the 1004 North French Street project. In addition, the City's Housing Element identifies potential sites where any remaining replacement units may be located. Income Level of Replacement Units The replacement dwelling units will be affordable and occupied exclusively by tenants with the same income levels as the persons displaced from the dwelling units that are EXHIBIT 3 Page 1 of 4 4 -13 being removed from the low -, very low- and moderate - income housing market. Therefore, all units will be made available to low -, very low- and moderate- income households. Funding Source The Agency and the City of Santa Ana have committed sufficient Tax Increment funds to finance the required replacement units. Low /Moderate Income Assurance All agreements related to replacement housing units will contain a covenant requiring that units remain available at affordable housing cost to, and occupied by, persons and families of very -low, low- and moderate- income for not less than fifty -five years for rental properties and for not less than forty -five years for homeownership units, as required by the Health and Safety Code Section 33413. Article 34 Compliance The replacement housing to be provided pursuant to this Replacement Housing 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 Section 37001. Availability of Plan Section 33413.5 of the Health and Safety Code requires that, for a reasonable period of time prior to its adoption by resolution, the Agency make available a draft of this Replacement Housing Plan for review and comment by the project area committee, other public agencies, and the general public. Beginning October 23, 2006 and ending November 3, 2006, the Plan will be available Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. in the following locations: Housing Department 20 Civic Center Plaza, 3`d Floor Community Redevelopment Agency 20 Civic Center Plaza, 6`s Floor Office of the City Clerk 20 Civic Center Plaza, 8h Floor The availability of the draft Plan will be made known by means of a public notice published in the Orange County Register, a local newspaper of general circulation, on October 21, 2006. EXHIBIT 3 Page 2 of 4 4 -14 UNITS TO BE REMOVED FROM LOW -AND MODERATE - INCOME HOUSING MARKET Unit Address Current Use Assessor's Parcel Number Number 1 313 E-10th Street, Santa One Bedroom 398 - 027 -15 Ana Apartment 2 313 %2 E. I oth Street, Santa One Bedroom 398 - 027 -15 Ana Apartment 3 315 E. 10th Street, Santa Studio Apartment 398 - 027 -15 Ana 4 317 E. IOh Street, Santa One Bedroom 398 - 027 -15 Ana Apartment 5 1002 N. French Street, One Bedroom 398 - 027 -15 Santa Ana Apartment 6 1004 N. French Street, One Bedroom 398 - 027 -15 Santa Ana Apartment 7 1004' /2 N. French Street, One Bedroom 398 - 027 -I5 Santa Ana Apartment EXHIBIT 2 EXHIBIT 3 Page 3 of 4 4 -15 PROJECTED REPLACEMENT PROPERTIES Parcel # To Replace A.P.N Address #Bedrooms Date Unit Available 1 005- 112 -19 1501 N. Ross 1 2007 2 005 - 112 -19 1501 N. Ross 1 2007 3 005- 112 -19 1501 N. Ross 1 2007 4 005- 112 -19 1501 N. Ross 1 2007 5 005- 112 -19 15 01 N. Ross 1 2007 6 005- 112 -19 1501 N. Ross 1 2007 7 398- 522 -25 1411 N. Durant 1 2007 EXHIBIT 3 Page 4 of 4 4 -16