CDC - Item 2A - Community Development Commission Five-Year ImplementationROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: JEFF ALLRED, EXECUTIVE DIRECTO
DATE: AUGUST 11, 2009
SUBJECT: COMMUNITY DEVELOPMENT COMMISSION FIVE-YEAR
IMPLEMENTATION PLAN
SUMMARY
Redevelopment Law requires that all redevelopment agencies adopt an Implementation
Plan (IP) every five years. An IP is designed to address activities within project areas
and includes project goals, activities (including affordable housing), and blight
elimination. In addition to adopting the IP, redevelopment law also requires that at least
once during the five-year period, a public hearing on the progress of the IP be held.
The Rosemead Community Development Commission last approved its' Five-Year
Implementation Plan in July 2005.
Staff Recommendation
Staff recommends that the Community Development Commission conduct a public
hearing, take public testimony, and adopt Resolution 2009-20 approving the FY 2009-
2013 Five-Year Implementation Plan.
ANALYSIS
The purpose of a Five Year Implementation Plan is to draw a clear connection between
the agency's projects and the requirement under Redevelopment Law to eliminate
blight, and to address affordable housing.
The Rosemead Community Development Commission's FY 2009-2013 Five-Year
Implementation Plan includes programs and expenditures of the Commission and
provides an explanation of how these goals, objectives, programs, and expenditures will
eliminate blight within the project areas. The IP also describes the programs and
projects the Commission will undertake to fulfill its various affordable housing
obligations as defined by redevelopment law.
The CDC's goals will be to continue to improve the physical appearance and strengthen
the economic environment and enhance the community with safe, decent, and
affordable housing, supported by recreational, educational, and cultural opportunities.
ITEM NO. !4 N
APPROVED FOR CITY COUNCIL AGENDA:
Community Development Commission
August 11, 2009
Page 2 of 3
The majority of the projects and activities to be undertaken by the CDC have been
developed to meet some of the following keys goals:
• Promoted the economic revitalization of the commercial corridors in the Project
Areas
• Provide improved park facilities, public facilities and street improvements in the
Project Areas
• Provide an updated General Plan and Zoning Ordinance according to State law
• Promote affordable housing programs throughout the City
• Contribute to the improvement of the National Pollutant Discharge Elimination
System (NPDES)
To achieve these goals the IP purposes to undertake the following physical blight
elimination and economic revitalization programs:
• Design and construct needed public improvements (median upgrades, street tree
planting, street light projects, improved street signage, and other Public Works
improvement projects)
• Promote the revitalization and appropriate economic development within the
Project Areas
• Create housing opportunities for low- and moderate-income residents (Garvey
Senior Housing, First Time Homebuyer program, Owner-Occupied Rehabilitation
Program)
Staff believes that the IP meets all legal requirements, and that it sufficiently details
current Commission polices. The IP represents an accurate description of the programs
intended to be undertaken by the Commission over the next five (5) years. The IP
establishes a nexus between the Commission's goals and objectives, programs
activities, and the purpose of redevelopment which is to eliminate blight and to develop,
preserve and rehabilitate affordable housing.
It is not the intent of the IP to restrict Commission activities as they relate to the goals
and objectives, programs, and expenditures outlined herein, since conditions, values,
expectations, resources, and the needs of the community may change from time to
time.
LEGAL REVIEW
The attached Resolution has been reviewed and approved by the City Attorney.
ENVIRONMENTAL REVIEW
The FY 2009-2013 Implementation Plan is exempt from the California Environmental
Quality Act (CEQA) pursuant to Health & Safety Code section 33490(a)(1)(B).
However, each individual project, program, or expenditure discussed in the
Implementation Plan will be considered a "project" and the Commission will perform the
Community Development Commission
August 11, 2009
Page 3 of 3
appropriate level of CEQA review at the time each project is before the Commission for
consideration.
PUBLIC NOTICE PROCESS
This item has been noticed according to the California Health and Safety Code Section
33490.
Prepar by:
Mi he a G. Ramirez
Economic Development Administrator
Development Director
Attachment A: Resolution 2009-20
Attachment B: Five Year Implementation Plan
RESOLUTION NO. 2009-20
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION APPROVING THE PROPOSED FISCAL YEAR 2009
THROUGH FISCAL YEAR 2013 FIVE-YEAR IMPLEMENTATION PLAN
FOR THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO. 1
AND THE ROSEMEAD REDEVELOPMENT PROJECT AREA NO. 2
WHEREAS, the Rosemead Community Development Commission (the
"Commission") is a duly constituted redevelopment agency under the laws of the State
of California; specifically, the California Community Redevelopment Law (CCRL; Health
and Safety Code, Section 33000, et seq.), and the Commission is responsible for the
administration and implementation of redevelopment activities within the City of
Rosemead (the "City"); and
WHEREAS, the Commission established the Redevelopment Project Area No. 1
and the Redevelopment Project Area No. 2 upon a determination of blighting condition
in the City of Rosemead; and
WHEREAS, by its Ordinance no. 871, adopted February 10, 2009, the City
Council adopted merger amendment to the Redevelopment Plans for the Rosemead
Redevelopment Project Area No. 1 and the Rosemead Redevelopment Project Area
No. 2
WHEREAS, State Law requires every Redevelopment Agency to approve an
Implementation Plan outlining proposed activities for a five year period; and
WHEREAS, notice of the public hearing to review the Implementation Plan has
been published pursuant to Section 6063 of the Government Code and posted in at
least four permanent places with each project area for a period of at least three weeks;
and
WHEREAS, on this day the Commission held a public hearing on the proposed
Five-Year Implementation Plan for the period of July 1, 2009 - June 30, 2014.
NOW, THEREFORE, BE IT RESOLVED by the Rosemead Community Development
Commission as follows:
Section 1. The Commission hereby approves the FY 2009 through FY 2013
Five-Year Implementation Plan attached to and incorporated as part of this Resolution.
Section 2. The Secretary shall certify to the passage and adoption of this
Resolution, whereupon it shall take immediate effect and be in force.
PASSED, ADOPTED AND APPROVED this 11TH day of August 2009.
Margaret Clark, Chairman
Attest:
Gloria Molleda, Secretary
Approved as to Form:
Joe Montes
Burke, Williams & Sorensen, LLP
Legal Counsel
ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION
Five Year Implementation Plan
(FY 2009-10 to 2013-14)
ADOPTED:
FY 2009-10 to FY 1013-14 Five Year Implementation Plan
Reserved
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
TABLE OF CONTENTS
1. INTRODUCTION
1
A. Organization
1
B. Requirements
2
• AB 1290
2
• AB 637
3
• SB 701
4
C. Project Area Background
4
• History of Commission
4
Project Area No. 1
5
Project Area No. 2
5
• Rosemead Housing Development Corporation
5
2. FIVE YEAR PLAN FOR THE ELIMINATION OF BLIGHT
7
A.
Background
7
• Commission's Goals
7
• Commission's Objectives
8
B.
Blight in the Project Areas
8
C.
Five Year Redevelopment Plan
11
• Redevelopment and Economic Redevelopment Activities
11
• Capital Improvements
11
• Circulation and Transportation Improvements
12
• Community Beautification and Visual Blight Removal
12
• Housing Component
12
D.
How the Commission's Proposed Goals, Objectives, Activities,
and Expenditures will Eliminate Blighting Conditions
13
E.
Five Year Financial Plan
14
• Tax Increment Revenues Available for Non-Housing Projects and
Activities
16
• Other-Commission and Non-Commission Revenues
16
F.
Five Year Expenditures
16
3. HOUSING COMPONENT 16
A. Requirements 17
• Commission's Statutory Affordable Housing Objectives 17
• Policy Declaration Regarding Targeting of Monies from the Housing
Fund according to Income Need 17
B. Replacement Housing 19
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
C. Housing Production Requirements 19
• Law Restrictions on the Use of the Housing Funds 20
• Commission's Housing Activities/Use of Monies in the Housing Fund 21
• Housing Funds Deposits during the Implementation Plan Period 22
D. Housing Production Plan 22
E. Plan for affordable Housing 23
• Expenditure of Housing Funds, FY 2009-10 to FY 2013-14 24
4. PLAN ADMINISTRATION 24
• Implementation Plan Review 24
• Implementation Plan Amendment 24
• Financial Commitments Subject to Available Funds 24
• Monitoring of Affordable Housing 25
• Prevailing Wage Issues 25
• Redevelopment Plans/Conflicts 25
TABLES
1 Project Area Adoption Dates 4
2 Projected Revenues and Expenditures 15
3 Regional Housing Need Allocation 18
4 Regional Housing Need Allocations per SCAG 21
5 Housing Production and Affordable Obligation 23
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
1. INTRODUCTION
Section 33490 of the California Community Redevelopment Law ("Law'') requires that a
redevelopment Commission administering a redevelopment plan prepare and adopt a five year
implementation plan for its project areas. The principal goal of the implementation plan is to
guide a Commission in implementing its redevelopment program to help eliminate blighting
influences. In addition, the affordable housing component of the implantation plan provides a
mechanism for a redevelopment Commission to monitor its progress in meeting both its
affordable housing obligations under the Law and the affordable housing needs of the
community. In effect, the implementation plan is a guide, incorporating the goals, objectives,
and potential programs of a Commission for the five-year implementation plan period ("Planning
Period"), while providing flexibility so the Commission may adjust to changing circumstances
and new opportunities.
This document constitutes the FY 2009-10 through FY 2013-2014 Implementation Plan ("Plan")
for the Rosemead Community Development Commission ("Commission"). This Plan outlines
the programs of revitalization, economic development, and affordable housing activities for the
Commission for the Planning Period.
The Affordable Housing Production Plan is included in the Housing Component of the Plan and
covers historical and projected housing production in the Project Areas, the Commission's
affordable housing production obligation, and the Commission's plans to meet its housing
production obligation.
A. Organization
Generally, the Plan must contain the following information:
• Specific goals and objectives for the next five years for both housing and
non-housing activities.
• Specific programs and expenditures for the next five years for both housing
and non-housing.
• An explanation of how the goals, objectives, programs and expenditures will
assist in the elimination of blight and in meeting affordable housing
obligations.
Other information related to the provision of affordable housing, including the Commission's
housing replacement plan, if applicable, and its housing production obligation throughout the
life of the Project Areas.
Section 1 provides a basic discussion of the legal requirements, Project Areas Description
and Background, and goals and objectives for the Project Areas. Section 2 summarizes the
Commission's proposed non-housing activities, and related revenues and expenditures for the
next five years, and a description of the blighting conditions and how they will be alleviated
by the Commission's proposed activities. Section 3 addresses the affordable housing
activities and expenditures, and charts the Commission's progress in providing affordable
housing, along with the Affordable Housing Production Plan.
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
B. Requirements
For redevelopment plans adopted prior to January 1, 1994, the first implementation plan for
fiscal years 1995-1999 was required to be adopted by December 31, 1994. The next five
year implementation plan was adopted in 1999 by the Commission for years 2000-2004 and
in 2004 for the years 2005-2009. This Implementation plan represents the fourth
implementation plan prepared by the Commission and will cover the planning period of FY
2009-10 through FY 2013-14.
AB 1290 Requirements
AB 1290 added Section 33490 to the Health and Safety Code. This section requires
agencies to produce implementation plans every five years, beginning in 1994. Section
33490 has been amended numerous times since its original adoption. In accordance with
this section, the implementation plan must contain the following, if applicable to the
Con11111SS1011:
Redevelopment Requirements
• Specific goals and objectives for each project area
• Specific programs, including potential projects for each project area
• Estimated expenditures to address the remaining blight in the Project Areas
• Explanation of how the goals and objective, programs, and expenditures will
eliminate blight within the project area
Housing Requirements
• An explanation of how the goals, objectives, and programs will achieve the
required housing production as well as an explanation of the expenditures from
the Low and Moderate Housing Set-Aside Fund ('Housing Funds") as set forth
in the Law. This explanation must include a detailed annual implementation plan
for each of the five years covered by the Implementation Plan in order for
performance to be measured.
• The amount of money available in the Housing Fund, the amount of money
expected to be deposited during the next five years as well as plans for the using
the annual deposits to the Housing Fund.
• The estimated number of units to be provided over the next five years and ten
years to meet the Commission's fifteen percent (15%) inclusionary housing
requirements, if applicable.
• The number of qualifying very low, low, and moderate-income units that have
been produced in the project area, and the number of additional units that will be
required to meet the inclusionary housing requirements.
• The number of units that will be developed by the Commission, if any, including
the number of units that the Commission will make available for very low, low,
and moderate-income households.
• If a planned public improvement or development project will result in destruction
of existing affordable housing, an identification of proposed locations for their
replacement will be required (Health and Safety Code Section 33413).
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
The Project Areas affordable housing production plan (Health and Safety Code
Section 33413(b)(4)).
Project Area No. 1 Final Housing Requirements
Pursuant to the Law Project Area No. 1 must address housing requirements as follows:
For a project area that is within six years of the time limit on the
effectiveness of the redevelopment plan established pursuant to Section
33333.2, 33333.6, 33333.7, or 33333.10, the portion of the
implementation plan addressing the housing responsibilities shall
specifically address the ability of the Commission to comply, prior to the
time limit on the effectiveness of the redevelopment plan, with
subdivision (a) of Section 33333.8, subdivision (a) of Section 33413 with
respect to replacement dwelling units, subdivision (b) of Section 33413
with respect to project area housing, and the disposition of the remaining
moneys in the Low and Moderate Income Housing Fund.
The Redevelopment Plan for Project Area No. 1 is effective through June 22, 2013;
therefore, the Commission must address the Commission's ability to comply with the
above referenced Sections of the Law dealing with replacement housing and remaining
low and moderate income housing funds. The Commission has not assisted in
developing housing units nor have privately developed housing units resulted in the need
for the Commission to provide replacement housing units. The Commission does not
currently have replacement housing obligations nor does it anticipate generating
replacement housing needs for Project Area No. 1 through the end of the effective term of
the Redevelopment Plan. In March 2009, the City Council adopted Ordinance No. 871
approving the merger of Project Area No. 1 and 2. The benefit of merging the two
project areas into one was the ability to spend tax increment funds generated in one area
in another within the City based on a finding of benefit resolution, approved by the
Commission Board.
AB 637 Requirements
AB 637 created additional housing requirements on redevelopment agencies. It
eliminated the sunset for most of the provisions in AB 1290 which had been in effect
since January 1, 1994. AB 1290 contained a number of modifications to the inclusionary
and production requirements contained in Section 33413(b) of the Health and Safety
Code. The issues addressed by AB 637 include:
■ Targeting housing funds.
■ 100 percent of removed or destroyed affordable units need to be replaced instead
of 75 percent.
■ Commission must keep a list of those persons displaced and who are to be given
priority in the replacement housing plan.
■ Establishes regulations of how and where Housing Funds may be used for onsite
or offsite improvements.
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
■ Covenants increased from 10 to 45 years in the case of owner occupied units, and
from 15 to 55 years in the case of rental housing.
■ Housing Funds monies are to be used only to the extent other reasonable means
of private or commercial financing is not reasonably available.
The Commission is required to spend the Housing Fund in at least the proportion of the
total housing need that these low to moderate-income groups represent, as determined for
the City pursuant to Section 65584 of the Government Code (Regional Housing Needs
Assessment). In addition, the commission shall expend over the duration of each
redevelopment implementation plan period, the money in the Housing Fund to assist
housing that is available to all persons regardless of age in at least the same proportion as
the population under 65 years of age relates to the total population of the community as
reported by the United States Census Bureau.
In accordance with Section 33490(a)(2)(A)(iii), the first time period to implement the
requirements for targeting of Housing Funds is on or before December 31, 2014, and
each ten years thereafter.
SB 701 Requirements
SB 701 clarifies how AB 637 is to be implemented. The Commission will have until
2014 to comply with the legal requirements outlined in AB 637.
C. Project Area Background
History of the Commission
The Rosemead Redevelopment Commission ("Commission") was established pursuant to the
Law. The Commission was activated by City Ordinance in 1972. On June 22, 1972, the
Commission adopted its first project area, Project Area No. 1, encompassing 511 acres. On
June 27, 2000, the Commission approved its second project area, Project Area No. 2,
encompassing approximately 203 acres. Together, these project areas cover approximately
714 acres of the City, and include residential, commercial, industrial, and public land uses.
Table 1
Project Area Adoption Dates
Timeframe to
Adoption
Ordiance
Tax Increment
Collect Tax
Project Area
Date
No.
Effective Date
Limit
Increment
Project Area No. 1
June 22, 1972
340
June 2013
$249,245,938
June 22, 2023
Project Area
1~x~_=
v,^ne
June 27. 2040
In 2002, the City Council of the City of Rosemead ("City Council") adopted Ordinance No.
821, declaring the need for a Community Development Commission to function in the City.
The Commission was created in order that the City may have the option of operating and
governing its redevelopment Commission and its housing authority, under a single entity and
board. The Commission is also created and established for the purpose of exercising any
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
other powers regarding community development which the City Council may desire to
delegate to the Commission subject to such conditions as may be imposed by the City
Council. The Commission oversees the operation and accountability for redevelopment
activities.
On February 10, 2009 the City Council adopted Ordinance No. 871 merging Project Area
No. 1 and 2. The merger allows the flexibility of tax increment funds generated in one
project area to be spent in either project area. This would allow exempt bond proceeds as
well as tax increment generated in project area 1 to be spent in project area 2 for various
capital improvement projects like street rehabilitation, public facilities renovations, and
economic development projects.
Project Area No. I
The Redevelopment Plan for Rosemead Project Area No. I was originally adopted by
Ordinance No. 340 and was amended as follows:
• December 9, 1986 by Ordinance No. 592 to increase the limitation on the number
of dollars allocated to the Commission and to re-establish eminent domain
authority to the Commission.
• October 9, 1991, the Commission prepaid its housing obligation for Project Area
No. 1 in the amount of $6,813,849.62. The Commission's 20% low to moderate
income housing set aside requirement has been reduced by $469,142 per year
through the 2021-22 fiscal year. This reduction was determined by analyzing the
yield on the Commission's outstanding bonds.
• December 20, 1994 by Ordinance No. 752 to bring it into confonnity with the
requirements of Assembly Bill 1290.
• On January 22, 2002 by Ordinance No. 822 for the purpose of extending the
duration of the Plan's effectiveness.
Project Area No. 2
On June 27, 2000, the City Council approved the Redevelopment Plan for the Rosemead
Project Area No. 2 by Ordinance No. 809.
Rosemead Housing Development Corporation
On March 16, 1992, the Commission established the Rosemead Housing Development
Corporation (RHDC), a local non-profit housing development corporation organized under
the Section 501(c)3 of the Internal Revenue Code of 1986. The RHDC was established to
develop, construct, finance and assist with low and moderate-income housing and to assist
the Commission with redevelopment issues related to housing.
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Rosemead Community Development Commission
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Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
2. FIVE YEAR PLAN FOR THE ELIMINATION OF BLIGHT
A. Background
This section describes the five-year non-housing redevelopment program, including a
summary of the deficiencies to be corrected, project and activity descriptions, and estimated
revenues and costs. As they are implemented, these projects and activities may be modified
over time to better serve the purposes of redevelopment. The cost estimates are preliminary
and subject to refinement as the Commission's redevelopment activities, planning and
implementation proceed. Some of these projects and activities may not be completed within
the next five years, and thus, related costs may not be incurred in the next five years.
Commission's Goals
Although the Commission has specific goals and objectives for each project area, the
redevelopment plans have a high degree of redevelopment policy and programmatic
consistency among them. The general redevelopment goals and objectives for the two
project areas have been consolidated into a set of mutual goals and objectives as follows:
■ Eliminate blighting influences, including deteriorating buildings, incompatible
land uses, obsolete structures, and other environmental, economic, and social
deficiencies; improve the overall appearance of existing buildings, streets,
parking areas and other facilities, public and private; and assure that all
buildings, new and old, are safe for persons and business to occupy.
■ Encourage the cooperation and participation of property owners, public agencies,
and community organizations, in the elimination of blighting conditions and in
the development of the project areas.
■ Encourage private sector investment in the project areas.
■ Be sensitive to environmental concerns and considerations.
■ Be sensitive to existing and planned patterns of development particularly in and
adjacent to the immediate vicinity of the Project Areas.
■ Remove materials or facilities that impede development.
■ Provide adequate parcels so as to encourage new construction by private
enterprise, thereby providing the City with an improved economic base.
■ Provide construction and employment opportunities in the development of new
facilities and by providing employment opportunities in the operation of new
industrial and commercial facilities.
• Establish development criteria and controls for the permitted uses within the
project areas in accordance with modern and competitive development practices,
thus assuring the highest design standards and environmental quality.
■ Encourage and foster opportunities for continued sustained growth of existing
City business sectors.
■ Protect the health and general welfare of the project area residents by
rehabilitating and otherwise improving the supply of housing in the project areas.
■ Ensure the long-term viability of the commercial portions of the project areas by
encouraging commercial rehabilitation and planned new commercial
developments.
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
■ Provide for new housing as required to satisfy the needs of the various age,
income and ethnic groups in the City, maximizing the opportunity for individual
choice.
■ Provide new or improved public improvements and facilities, the absence or
inadequacy of which constitute an economic liability of the City, are
impediments to development, and which cannot be remedied by private or
governmental action without redevelopment.
■ Provide for relocation assistance and benefits to businesses which may be
displaced, in accordance with the provisions of Law.
■ Achieve a physical environment reflecting a high level of concern for
architectural and urban design principles deemed important by the community.
■ Provide a procedural and financial mechanism by which the Commission can
assist, complement, and coordinate public and private development,
redevelopment, revitalization, and enhancement of the community.
■ Increase, improve, and preserve the community's supply of housing affordable to
very low, low and moderate income households.
Commission's Objectives
The following objectives are intended to provide a framework for efforts to attain the
goals outlined above:
• Beautify the City through appropriate Economic Development.
• Work with developers of major projects to facilitate the construction of attractive
and compatible developments within the community.
• Promote sales tax growth by attracting new businesses to the City, and retaining
and strengthening existing business and commercial centers.
• Redevelop sites throughout both Project Areas into viable commercial projects.
• Invest in Capital Improvement Projects to improve public infrastructures.
• Assist in the revitalization of Valley Boulevard and Garvey Avenue.
• Provide funding for affordable housing projects.
B. Blight in the Project Areas
The redevelopment tools contained in the Law are granted for use in a project area in order to
eliminate and prevent the prevalence of blighting conditions. A blighted area is one that
necessitates the creation of a redevelopment project area because the combination of
conditions in an area constitute a burden on the community and cannot be alleviated by
private enterprise, governmental action, or both. Law Section 33031 defines blight as
follows:
Physical Conditions that Cause Blight
• Unsafe/Unhealthy/Deteriorated Buildings - Buildings and structures that are unsafe
or unhealthy for people to live or work. The lack of deferred maintenance that results
in serious dilapidation and deterioration, faulty or, inadequate utilities, serious
building code violations, and construction that is vulnerable to serious damage from
seismic or geologic hazards.
Rosemead Community Development Commission Five Year Implementation Plan
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
• Phvsical Conditions that Substantially Hinder the Economic Viability and Use
of Lots/Buildings - Conditions that prevent or substantially hinder the viable use or
capacity of buildings or lots. These conditions may be caused by buildings of
substandard, defective, or obsolete design or construction given the present general
plan, zoning, or other development standards
• Incompatible Land Uses - Adjacent or nearby uses that are incompatible with each
other and which prevent the economic development of those parcels or other portions
of the Project Area.
• Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownerships - The
existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and developments that are in multiple ownership, given present
general plan and zoning standards and present market conditions.
Economic Conditions that Cause Blight
• Depreciated/Stagnant/Impaired Property Values - Depreciated or stagnant
property values or impaired investments, including, but not necessarily limited to
those properties containing hazardous wastes that require the use of Commission
authority as specified in Article 12.5 (commencing with Section 33459 of the
Law).
• High Business Turnovers and Vacancies/Low Lease Rates/Abandoned
Buildings/Vacant Lots - Abnormally high business vacancies, abnormally low
lease rates, high turnover rates, abandoned buildings, or excessive vacant lots.
• Lack of Neighborhood Commercial Facilities - A serious lack of necessary
commercial facilities that are normally found in neighborhoods, including
grocery stores, drug stores, and banks.
• Overcrowding - Serious residential overcrowding that has resulted in significant
public health or safety problems. As used in this paragraph, "overcrowding"
means exceeding the standard reference in Article 5 (commencing with Section
32) of Chapter 1 of Title 25 of the California Code of Regulations.
• Excess of Bars/Liquor Stores/Adult Businesses - An excess of bars, liquor
stores, or adult-oriented business that has resulted in significant public health,
safety, or welfare problems.
• High Crime Rates- A high crime rate that constitutes a serious threat to the
public safety and welfare of Project Area residents.
Blighting Conditions in the Project Areas
As part of the amendment to merge Project Areas No. 1 and 2 a blight survey was
conducted in 2008 of both project areas. The blight survey described the existing
physical and economic conditions of blight as provided by Law. Among the findings the
following blight remains in the project areas:
Physical Blight Conditions Present in the Project Areas
Deteriorated buildings are considered unsafe and unhealthy for persons to live or work, to
the extent that such conditions are caused by serious code violations, dilapidations and
deterioration caused by long-term neglect, faulty and inadequate construction and public
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
infrastructure. Other physical deterioration, including peeling paint, hazardous electrical
wiring. leaking roofs, cracked plaster and other major structural deterioration are deemed
to be unhealthy and unsafe.
Approximately 11% of the parcels in the project areas, according to the City's Code
Enforcement Department, have major code violations. Serious deterioration and
dilapidation is observed in 53% of the parcels in both project areas and exhibited at least
one or more indicators of structural dilapidation or deterioration. Additionally,
approximately 9% of parcels exhibited one or more indicators of poor construction and
75% of parcels are affected by inadequate fire safety issues.
Approximately 55% all parcels in both project areas exhibited at least one or more
blighting conditions including code violations, deterioration, inadequate construction, and
faulty water systems that create an unhealthy and unsafe environment in which to live or
work.
Conditions that prevent or substantially hinder the viable use or capacity of buildings or
lots are also prevalent within the project areas. Approximately 81% of parcels exhibited
one or more indicators of such conditions including substandard, defective or obsolete
design or construction, along with a high presence of adult businesses and high crime.
The existence of irregular, subdivided lots in multiple ownership whose physical
development has been impaired given present conditions was found in 8% of the parcels
in the project areas. Such conditions include narrow lots, excessively deep parcels, flag-
shaped and land land-locked parcels.
The remaining physical blight in the project areas is present in at least 85% of the parcels
within the project areas.
Economic Blight Conditions Present in the Project Area
Economic blight is described by Law and includes depreciated or stagnant property
values, residential overcrowding and poverty, inadequate retail and commercial facilities,
and crime and public safety risks. Economic blight can lead to an environment that
creates diminished economic opportunities to be undertaken by private entities or local
government agencies.
The 2008 blight survey, as part of the merger amendment, shows that economic blight
remains in the project areas. The project areas show economic conditions that diminish
the lasting positive efforts to improve economic standards of residents, limit effective
utilization of business and property resources, and hinder opportunities to realize
economic growth.
Existing conditions that indicate economic blight remains in the project areas include a
high poverty rate of 2.1 times greater than that of Los Angeles County, overcrowding
conditions affecting nearly one-half of all households in the project areas. Retail and
Rosemead Community Development Commission Five Year Implementation Plan
10
FY2009-10 to FY2013-14 Five Year Implementation Plan
commercial facilities suffer from an abnormally high vacancy rate of 6.7% when
compared to the surrounding area which stands at 1.5%. Sales by retail merchandisers
are also comparably weak at 73% of the benchmark level for the area. In addition, the
existing retail is characterized by weak operators that contribute to a 50% sales leakage
from the project areas. A disproportionately high level of police activity also contributes
to the economic blight conditions remaining in the project areas.
C. Five-Year Redevelopment Plan
The Commission will undertake projects and activities in the Project Areas over the next five
years to alleviate blighting conditions and achieve its goals and objectives. These projects
and activities are described below.
Redevelopment and Economic Development Activities
The Commission will continue its effort to create economic activity through the use of
redevelopment activities. The projects are designed to promote revenue and employment
generating businesses in the Project Areas and include the following: business retention
and attraction, commercial rehabilitation, assistance with on-site and oft-site public
improvement, and property acquisition, if necessary. The Commission will continue to
pursue redevelopment efforts along Valley Boulevard, Rosemead Boulevard, Glendon
Way, and Garvey Avenue within the Planning Period including, but not limited to, the
following potential sites:
• the development of the southeast corner of Valley Boulevard and Rosemead
Boulevard
• the development of the northeast corner of Valley Boulevard and Temple City
Boulevard
• the development of five parcels aggregating approximately 8.5 acres on the
southwest corner of Rosemead Boulevard and Glendon Way
• former auto auction site
Capital Improvements
Public infrastructure and facilities projects and activities will involve the construction and
installation of public improvements to upgrade the existing aged and/or deteriorated
infrastructure systems to support private investment.
Projects to improve the public infrastructure and facilities in the Project Areas may
include improvements to gateways, sewer and water systems, and utilities. The
Commission may also assist in funding the construction of new and rehabilitated public
facilities within or serving the Project Areas. Projects are intended to stimulate the
growth of existing and new businesses and reduce stagnant economic conditions.
In addition, the Commission assists in the administration of street maintenance and the
National Discharge Elimination System Program (NPDES) implementation and
compliance, provides plan check and inspection services, and works with other
departments and outside agencies on sub-regional transportation and public work issues.
Rosemead Community Development Commission Five Year Implementation Plan
11
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Additional capital improvements projects that may be undertaken over the next five years
include:
• Open space development of Edison rights-of=way
• Annual Slurry Seal
• Citywide Curb Ramp Improvements
• Citywide Energy Efficiency Project
• Installation of new street signs
• Tree Planting Project
• Synthetic turf at Rosemead High School
In addition, the Commission may undertake projects outside of the project area that
would provide a direct benefit to the project areas.
Circulation and Transportation Improvements
Circulation and transportation projects and activities will involve the construction and
installation of public improvements to upgrade existing roads and problematic circulation
and pedestrian accessibility issues. Several proposed projects are shown under the
"Capital Improvements" section. In addition, the Commission may undertake
neighborhood traffic safety improvements to help reduce traffic speeds, enhance
pedestrian crossing areas, and improve traffic safety around schools and highly active
pedestrian areas.
Community Beautification and Visual Mehl Removal
Community beautification and visual blight removal projects and activities will alleviate
blighting conditions and provide physical improvements along commercial corridors.
Efforts will include landscaping, lighting, and street signage. Beautification initiatives
will be undertaken in both residential and commercial areas to provide visual linkages
between various areas of the City. As part of the beautification efforts, the Commission
will support improvements to the Rosemead Park Trails as well as projects outside of the
project area that would enhance the project area and improve safety. In addition, the
Commission intends to reactivate the Commercial Facade Rehabilitation Program. The
Commission believes that by providing financial incentives to commercial
owners/merchants located in the project area, it will be possible to improve the physical
appearance of Rosemead shop fa4ades and thus create a more attractive place for
consumers to shop.
Housing Component
The Commission will continue to utilize Housing Funds to increase and preserve
affordable housing for very low, low, and moderate-income households. Section 3
describes the planned housing activities by the Commission.
Rosemead Community Development Commission Five Year Implementation Plan
12
FY 2009-10 to FY 1013-14 Five Year Implementation Plan
D. How the Commission's Proposed Goals, Objectives, Activities, and
Expenditures Will Eliminate Blighting Conditions
the Commission's proposed goals, objectives, programs and expenditures are designed to
eliminate blighting influences in the Project Areas. The Redevelopment activities aim to
alleviate the blighting conditions that interfere with the revitalization of the project areas by
improving economic conditions, stimulating private investment, improving public
infrastructure and facilities, and meeting the Commission's affordable housing obligation.
In general, the Redevelopment activities are designed to:
• Revitalize areas that exhibit adverse physical and economic conditions.
• Stimulate private investment and complementary development
• Improvement circulation, public infrastructure and public facilities.
• Provide tax increment funds for the redevelopment activities that are needed to
alleviate blighting conditions
• Produce affordable housing, both rental and ownership units.
The ongoing improvement of public infrastructures and facilities and the alleviation of blight
will signal to the private sector the Commission's commitment to improving the project
areas. These improvements will enhance the competitiveness of the businesses they serve.
The projects and activities makes evident the Commission's continuing interest in making
Rosemead a better place to live, work and conduct business. It will help create an
environment where property owners, businesses and outside developers have the incentive to
make and carry out long range plans.
The Commission is committed to enhancing the economic vitality of the project areas by
identifying the needs of the existing businesses and attracting new ones. Commercial
rehabilitation projects will enable existing business owners to upgrade their properties.
Business development activities will be aimed at reducing business vacancies by attracting
new tenants and owners and stabilizing current ones with rehabilitated and newly constructed
development in the project areas. This will enhance the feasibility of creating or enhancing
commercial facilities as well as enhance the competitiveness of the people they serve.
The Commission's circulation improvements will ameliorate circulation problems throughout
the project areas, making both pedestrian and vehicular traffic safer and more pleasant.
Infrastructure improvements will provide sufficient capacity to support private commercial
revitalization and new commercial and mixed-use development. Landscaping and
streetscape improvements beautify the streetscape, upgrade the appearance of the area, and
establish clear gateways that define the edges and boundaries of the district commercial
districts. Streetscape improvements also encourage increased investment from the private
sector by alleviating blighting conditions in the area.
Rosemead Community Development Commission Five Year Implementation Plan
13
FY 2009-10 to FY 2013-14 Five Year Implementotion Plan
Economic development activities are also intended to help in the reduction of vacancies by
attracting new tenants and owners and expanding current business by facilitating
rehabilitation and new development in the project areas. In particular, the Commission is
targeting development along Valley Boulevard and Garvey Avenue that will enhance
economic activity.
The Commission will continue to support private investment efforts to directly address some
of the more serious blighting conditions within the project areas including deteriorated and
obsolete buildings. New or expanded commercial activity will enhance the economic vitality
and generate jobs within the project areas. Retail development will prevent further economic
decline and enhance access to goods and services for all Rosemead residents.
The Commission's Affordable Housing Program will allow the Commission to provide
increased and enhanced affordable housing opportunities for Rosemead residents. In
addition, the Commission's efforts will improvement project design and leverage federal,
state and private sources to develop high quality, attractive, affordable housing development
serving a diverse population.
E. Five-Year Financial Plan
Over the next five years, the Commission will undertake those activities that can be
financially supported by its revenue stream. The Commission must make statutory pass
through payments pursuant to Health and Safety Code Section 33607.7 as a result of an
amendment to the redevelopment plans for both. Project Areas to remove the timeframe to
incur indebtedness. Additionally the Commission entered into a tax increment sharing
agreement with the Los Angeles County Consolidated Fire Protection District and the Los
Angeles County Public Library District. Per the Agreement the Consolidated Fire Protection
District receives 17% of gross tax increment and the Public Library District receives 4% of
gross tax increment.
The Commission projects revenues equaling approximately $29,364,437 for the five year
implementation plan period from three revenue sources:
• Annual tax increment revenues
• Bond issuance proceeds
• Other Commission and non-Commission revenues
The available revenues for non-housing projects and activities are summarized in the
following table.
Rosemead Community Development Commission Five Year Implementation Plan
14
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Tax Increment Revenues Available for Non-Housing Projects and Activities
As shown in Table 2, the tax increment revenues generated in the project areas (after
payment of pass-through payments, Commission administration, debt service, and housing
fund obligations) during the next five-year period are projected to be approximately
$27,102,277. The Commission is anticipating contributing $11,564,834 towards non-
housing projects and activities. However, in the light of the uncertainty with respect to State
cuts in local government funding and the uncertain local economy, it is possible that the
funding ability of the Agency could be less than what is predicted.
Other Commission and Non-Commission Revenues
Whenever possible, the Commission has been and will continue to leverage other funds in
connection with its redevelopment efforts including the targeting local, state and federal
funding sources to assist in financing eligible projects. As permitted by law, possible
funding sources include government grants and assistance programs, as well as private sector
sources. In addition, the City's development impact fees generated from new development
will be source of public infrastructure and facilities funding when feasible. The Commission
will also pursue funds from federal programs including the Community Development Block
Grant (CDBG) program and HOME Investment Partnerships (HOME) program, in addition
to state and county programs.
F. Five Year Expenditures
The nature and scope of the Commission's programs and expenditures in the Project Areas
have been shaped by the goals and objectives for the Project Areas, available revenues for
funding projects and activities, and blighting factors to be eliminated with each Project Area.
The estimated cost of the non-housing activities and projects for the implementation planning
period of FY 2009-10 to FY 2013-14 will be approximately $38,667,111 (see Table 2). The
funds will be spent on activities to alleviate blighting conditions including public
infrastructure and facilities, economic development activities, and community beautification
and visual blight removal projects.
As they are implemented, the projects and activities may be modified over time to better
serve the purposes of redevelopment. The cost estimates are preliminary and subject to
refinement as the planning and implementation proceed. Many projects and activities may
not be completed within the next five years of the Implementation Plan based on available
revenues, market conditions, community needs, priorities, and developer interest, and thus
the following budget represents initial funding of the program costs incurred in the next five
years. Additional revenues may become available for projects and activities for the Project
Areas through non-Commission sources.
3. HOUSING COMPONENT
This section of the Implementation Plan describes the obligations the Commission will undertake
pursuant to requirements under California Redevelopment Law. This housing component of the
Implementation Plan contains the following:
Rosemead Community Development Commission Five Year Implementation Plan
16
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
An account of available Housing Funds and the estimated amounts to be deposited in the
Housing Fund during each of the next five years.
A housing program that estimates the number of new, rehabilitated. restricted units to be
assisted during each of the next five years by the Commission and estimates of Housing
Fund expenditures for each of the next five years.
A description of how the housing program will implement the requirements to spend the
Housing Funds over a ten year period for the various groups as required by
Redevelopment Law.
The Commission is also guided by the City of Rosemead's Housing Element, which is currently
being updated, as part of the General Plan. The goals, policies, and strategies described in this
section are intended to be implemented by the Commission.
A. Requirements
Commission's Statutory Affordable Housing Obligations
The Commission must allocate no less than twenty percent of its gross tax increment to the
Housing Fund for the purpose of increasing, improving and preserving the supply of housing
available to low and moderate income households.
In addition, Senate Bill 211 approved by the legislature in 2001 requires Agencies, on or
after January 1, 2001, to require housing units assisted with Housing Funds to remain
affordable for the longest feasible time, but no less than 45 years for owner occupied units
and not less than 55 years for rental units.
Project Area No. 1 does not have an inclusionary housing requirement and is not subject to
the housing production provisions of Section 33413 of the Law; however, it is subject to
replacement housing obligations and the expeditious expenditure of housing funds. The
Commission has not assisted in developing housing units nor have privately developed
housing units resulted in the need for the Commission to provide replacement housing units.
Approximately 0.4% of the total area of Project Area No. 2 is developed for residential use.
In the past five (5) years no dwelling units have been privately developed or developed as a
result of Commission participation; therefore, Project Area No. 2 does not currently have an
inclusionary housing production requirement.
Policy Declaration Regarding Targeting of Monies from the Housing Fund according to
Income Need
Pursuant to Section 33334.4, Housing Fund monies are required to be spent over the ten year
planning period of the Implementation Plan in at least the same proportion to the total
number of housing units needed for very low, low, and moderate income groups within the
community, as determined for the City pursuant to Section 65584 of the Government Code.
In accordance with Section 33490(a)(2)(A)(iii), the first time period to implant the
requirements for targeting of Housing Funds is on or before December 31, 2014, and each
ten years thereafter.
Rosemead Community Development Commission Five Year Implementation Plan
17
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
According to the Final Regional Housing Allocation Plan ("RHNA"), for the planning period
between January 1, 2006 and June 30, 2014, the housing for very low and low income
households represents 39% percent of the City's total housing need. The following table
shows the proposed fair share allocation for the different income groups.
Table 3
Regional Housing Need Allocation
Planning Period January 1, 2006 -June 30, 2014
Income Level
Allocation
Targeting
Fair Share
Allocation
Fair Share
Targeting
Very Low
190
24%
190
43%
Low
119
15%
119
27%
Moderate
Above-Moderate
131
340
17%
44%
131
30%
Total
780
100
440
100%
Source: SLAG RHNA, 2007
As illustrated in the above table the Commission is required to spend 43% of its Housing
Funds on very low income households, and 27% and 30% on low and moderate income
households respectively.
As permitted under the Law, agencies are able to shift or reduce their income targeting
requirement if other locally controlled funds are available for those targeted income groups.
These additional funds, however, must not be used in combination with Housing Fund
monies and long term affordability must be met, 45-years for owner-occupied and 55-years
for rental housing. Such locally controlled funds include CDBG, HOME and fees received
by the city pursuant to inclusionary housing programs.
In addition, the Commission is to spend a defined minimum of Housing Fund monies during
this same period of time to assist persons regardless of age. This minimum is defined as
those persons under the age of 65. Based on the 2000 U.S. Census, the City of Rosemead,
proportion as identified in following table:
Housing Funds Expenditures
Age Proportionality Requirement
Age
Population Percentage
Less than 65 years
65 ears and over
47,820 89%
5.685 11%
To!ai
53.505 10 0 ~ u
Source: 2000 U.S. Census
Rosemead Community Development Commission Five Year Implementation Plan
18
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
B. Replacement Housing
The Commission must replace any housing units that have been demolished or removed from
the affordable housing stock as a result of a redevelopment project or program, the
Commission must do so within four (4) years after they are removed from the market. The
replacement housing obligation is triggered when units are destroyed or removed by a
redevelopment project, which is subject to a written agreement with the Commission or
where financial assistance has been provided by the Commission. Vacant units that could
reasonably be expected to be occupied by low- or moderate-income households if occupied
must be replaced within four (4) years of their removal and may be located anywhere within
the territorial jurisdiction of the City.
When dwelling units are destroyed or removed after January 1, 2002, Section 33413(a)
requires that all the replacement units be available at affordable housing cost to the same
household income level as the households that were displaced from the destroyed or removed
units. Income limits for replacement units are equivalent to those for inclusionary units.
Pursuant to the Law, Section 33413(f)(1)(2), the Commission may replace destroyed or
removed dwellings with fewer units if the replacement units have a greater or equal number
of bedrooms and are affordable to household of the same income level as the destroyed or
removed units.
The Commission, at this time, has not removed or destroyed any residential units in the
Project Areas and has no plans to remove or destroy any units with in the next ten years. As
a result, the Commission has no obligation to replace any housing units and should the
Commission need to remove or destroy any units in the future they will follow all
requirements to replace those units.
C. Housing Production Requirements
Redevelopment project areas adopted on or after January 1, 1976 and territory added to
project areas by amendments adopted on or after January 1, 1976 must meet the affordable
housing production requirements. As part of the Implementation Plan, agencies must adopt a
plan showing how the Commission intends to meet its housing production requirement
(Housing Production Plan).
Project Area No. 1 was originally adopted on June 27, 1972 by the Rosemead City Council
and is not subject to the housing production provisions of Section 33413 of the Law;
however, it is subject to replacement housing obligations and the expeditious expenditure of
housing funds.
Project Area No. 2 adopted on June 27, 2000 is subject to housing production provisions. In
addition, the plan must be consistent with the community's Housing Element and must cover
the following time periods:
■ Production over ten year compliance period (FY 2009-10 through FY 2019-20)
■ Production through the life of the Redevelopment Plan (though FY 2030)
Rosemead Community Development Commission Five Year Implementation Plan
19
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Prior to the time limit on the effectiveness of a redevelopment plan, at least 30 percent (30%)
of the new or substantially rehabilitated housing developed by the Commission in Project
Area No. 2 must be restricted for low- and moderate-income households, with 50 percent
(50%) of the total restricted units reserved for very low-income households.
Not less than 15 percent (15%) of the housing proceeds by public or private entities other
than the Commission within Project Area No. 2 must be restricted for low- and moderate-
income households, with 40 percent (40%) of the total restricted units reserved for very low-
income households.
Prior to January 1, 2002, the units must be price restricted for the longest feasible time but
not less than the period of time the land use controls of the redevelopment plan remain in
effect. For owner-occupied housing, current law provides a limited exception to this
covenant requirement by allowing a non-qualifying sale of an affordable production unit
provided that the Commission replaces the unit within three (3) years at the same income
level as the original. After January 1, 2002, units must remain affordable for the longest
feasible time, but no less than 55-years for rental units and 45-years for the homeownership
unit.
The Implementation Plan must include the following information regarding the
Commission's housing production obligations for Project Area No. 2:
• The number of units of very low-, low- and moderate-income housing which have been
developed within the project area which meet the production requirements;
• An estimate of the number of new, substantially rehabilitated, or price restricted
residential units to be developed or purchased within the project areas, both over the life
of the redevelopment plan and during the next ten years;
• An estimate of the number of units of very low- low-, and moderate-income housing
required to be developed within project areas in order to meet the production
requirements;
• An estimate of the number of Commission developed residential units which will be
developed during the next five years; and
• An estimate of the number of Commission developed units for very low-, low-, and
moderate-income households during the next five years.
Within Project Area No. 2, approximately 10% of the property is designated in the City's
General Plan as mixed-use residential. Therefore, the Commission anticipates that there is
the potential for development submittals within the mixed use overlay zone in Project Area
No. 2 over the next five years. The anticipated number of units is difficult to determine at
this time because the overlay zone allows both residential and commercial development.
Market conditions are the major factor in determining the ultimate use of this property.
Law Restrictions on the Use of the Housing Fund
As of January 1, 2002, there are additional restrictions on the use of monies from the
Housing Fund. Redevelopment agencies are now required to spend Housing Funds in
proportion to the community's need as defined in the City's Housing Element.
Rosemead Community Development Commission Five Year Implementation Plan
20
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
The City of Rosemead's Housing Element, adopted by the City Council and certified by the
State Department of Housing and Community Development in 2002, concluded that there
was a need for 202 very low-income units, 132 low-income units, and 155 moderate-income
units. The date presented in the following table indicates the percentage of funds from the
Housing Fund to be spent with each income category over a 10-year time frame.
Notwithstanding this requirement, funds required to be expended within a higher income
category can be utilized for a lower income category.
Table 4
Regional Housing Need Allocations per SCAG
2000 Housing
Element'
2007 RHNA2
Income Level
Allocation'
Targeting
Allocation2
Targeting
Very Low
Low
Moderate
202
132
155
41%
27%
32%
190
119
131
43%
27%
30%
100%
(1) SCAG RHNA for 1998-2005
(2) SCAG RHNA for 2006-2014
The Southern California Association of Governments has determined that for the planning
period of 2006 through 2014, the City of Rosemead will necessitate 190 units for very low-
income households and 250 for low- and moderate-income households.
Commission Housing Activities/Use of Monies in the Housing Fund
The Commission has initiated the following redevelopment activities to increase housing
opportunities and eliminate blighted conditions.
Rosemead Housing Development Corporation (RHDC)
The RHDC is responsible for the oversight of two senior housing facilities in which the
Commission allocates approximately $250,000 annually towards the financing, operation,
and management of the two sites.
• Angelus Senior Housing Project
A 51-unit, very low-income senior housing built in 1995. The project is
fully occupied with rents at $250 per month for one person one bedroom
and $300 per month for two person's one bedroom.
• Garvey Senior Housing Project
A 72-unit, very low-income, senior housing projected completed in 2002.
This project is owned and operated by the RHDC. The project had a cost
of $7,456,000. The project is fully occupied with rents at $250 per month
for one person one bedroom, $300 per month for two person's one
bedroom, and $450 per month for two person's two bedroom.
Rosemead Community Development Commission Five Year Implementation Plan
21
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Housine Program and Projects
The Commission helps offset the cost of purchasing affordable units through the City's
HOME Community Housing Development Organization (CHDO) Program. The City is
required to enter into an Agreement with a CHDO for the production of affordable
housing using the 15% CHDO set-aside funding as required under the Home Investment
Partnerships (HOME) entitlement grant. Partnering with the Commission allows for
additional funding under this program to acquire housing units for low to moderate-
income renters.
Housing Fund Deposits during the Implementation Plan Period
The Commission is projected to receive approximately $3.1 million in tax increment to be
deposited in the Housing Fund over the next five years to implement housing activities. The
Commission intends to spend all of its available funds within the planning period.
D. Housing Production Plan
Housing Production Plan Obligations for Projecl Area No. 2 (2002-2009)
The Commission does not have any current housing obligation since no new or substantially
rehabilitated units were built within the Project Area since its adoption in 2002.
Housing Production Obligations (FY 2009-10 to FY 2029-30)
Project Area No. 2 is primarily commercial with approximately 0.4% of the area designated
in the City's General Plan as residential. In addition, the Commission has currently
suspended any residential construction under the mixed use zoning. Therefore, the
Commission anticipates that over the life of Project Area No. 2 that no new or substantial
rehabilitated housing units will be produced; and therefore, the Commission will have no
affordable housing obligations. The Commission, however, intends to spend the Housing
Fund monies on the creation and preservation of affordable housing for very-low-, low- and
moderate-income households as called for in the Housing Element and as part of the
Regional Housing Needs Allocation.
Housing Production Compliance (FY2009-10 to FY 2029-30)
The Commission anticipates creating an additional 10 affordable housing units for very-low
income households within the planning period to be located in Project Area No. 1. The
creation of 10 units over the life of Project Area No. 1 plus the 131 units previously created
will meet the Commission's housing production requirements of the expeditious expenditure
of the Housing Fund.
Rosemead Community Development Commission Five Year Implementation Plan
22
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Table 5
Rosemead Community Development Commission
Housing Production and Affordable Obligation
Ho
usina Producti
on
Affordable Obligation
Affordable Production
Sur
oluslDefici
t)
New
Substatial
Rehabiliation
Total
Very Low Low/Mod Total
Very Low Low/Mod
Total
Very Low
LowlMod
Total
Historical P n
PA No i
Prior to 2009
123
0
123
0 0 0
123 0
123
123
0
123
Histo a/ Protect
Area No. 2
Prior to 2009
0
0
0
0 0 0
0 0
0
0
0
0
Proiec~d Produchon
PA No. 1
FY 2009110- 2012/13
0
10
10
0 0 0
10 0
10
10
0
10
Promded Prody0bon
PA No. 2
FY 2009/10 - 2014/15
FY 2014115 - 2019,20
FY 2014/15 - 2030
0
0
0
0
0
0
0
0
0
0 0 0
0 0 0
0 0 0
0 0
0 0
0 0
0
0
0
0
0
0
0
0
0
0
0
0
Total Production
123
10
133
0 0 0
133 0
133
133
0
133
(1) Propel Area No 1 adopted n 1972 a nor subpct of housnp producton mpuirements
(2)No new or substanrby renabdated unts are es petted to be produced over the Nis or the Pro/ed area, M ererae no atWrdbb propclion wiibe geared
E. Plan for Affordable Housing
The Rosemead Community Development Commission, during the Implementation Plan
planning period, will concentrate on activities that help the Commission meet its housing
goals and objectives. The affordable housing activities planned to be undertaken by the
Commission will advance and support the overall goals of the Housing Element as part of the
City's General Plan. The Housing Element sets forth the following goals:
• Protect existing stable, single-family neighborhoods throughout the City.
• Encourage the development of a range of housing types in a range of prices
affordable to all Rosemead residents.
• Encourage the maintenance and upgrading of existing housing stock to ensure
decent, safe and sanitary homes for all Rosemead residents.
• Support federal and state laws that prohibit discrimination in housing on the basis
of age, sex, or race.
The Commission plans to spend its Housing Funds in proportion to the need for the specific
income groups as required by Law. The Commission will continue to encourage the
preservation and development of housing affordable to those income groups with the greatest
need. The Commission will leverage its Housing Fund monies in order to maximize the
number of affordable units produced and will partner with a non-profit affordable housing
developer to produce at least 10-units within the planning period for very-low-income
households. The Commission anticipates that these units will be located within Project Area
No. 1.
The Commission will also utilize HOME funds to provide first-time home buyer loans to
low-income households.
Rosemead Community Development Commission Five Year Implementation Plan
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FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Expenditures of Housing Funds, FY 2009-10 to FY 2013-14
The Commission plans to spend the $3.2 million of Housing Funds over the next five years;
and will therefore, use all of its Housing Fund monies. The Commission also intends to use
the Housing Fund in proportion to the needs for each income category as set forth in the
Housing Element.
4. IMPLEMENTATION PLAN ADMINISTRATION
The Commission shall be responsible for administering this Implementation Plan and for
monitoring redevelopment activities or programs undertaken pursuant to this Plan.
Implementation Plan Review
At least once within this Implementation Plan's five-year term, the Commission shall
conduct a public hearing and hear testimony of all interested parties for the purpose of
reviewing the adopted redevelopment plans and the corresponding Implementation Plan and
evaluating the progress of the redevelopment projects. The public hearing shall be held no
earlier than two years and no later than three years after the date of adoption of this
Implementation Plan. The Commission may choose to conduct a single public hearing
applicable to all adopted project areas described in this Implementation Plan, or may conduct
separate public hearings for each project area.
This Implementation Plan covers the Commission's activities in the redevelopment project
areas from January 1, 2009 through December 31, 2014. Consistency of the information
contained in the Implementation Plan and the Redevelopment Agencies Financial
Transactions Report and the HCD Annual Report of Housing Activity of Community
Redevelopment Agencies is important. Comparing the information reported each year to the
State Controller's Office and to HCD to the information within the Implementation Plan will
assist the Commission's Staff in monitoring the progress the Commission is making in
achieving its goals and objectives for redevelopment and housing activities. This will make
preparing the staff report for the mid-term review and efficient process.
Notice of the public hearing to review the redevelopment plans and Implementation Plan
shall be published pursuant to Section 6063 of the Government Code and posted in at least
four permanent places within each project area for a period of at least three weeks.
Publication and posting of the notice shall be completed not less than 10-days prior to the
date set for hearing.
Implementation Plan Amendment
Pursuant to Redevelopment Law Section 33490, this Implementation Plan may from time to
time be amended after holding a public hearing on the proposed amendment.
Financial Commitments Subject to Available Funds
The Commission is authorized to utilize a wide variety of funding sources for implementing
each Redevelopment Plan. Such funding sources include but are not limited to financial
assistance from the City, State of California, federal government, property tax increments,
Rosemead Community Development Commission Five Year Implementation Plan
24
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
interest income, Commission bonds secured by tax increment or other revenues, or any
legally available revenue resource. Although the sources of revenue utilized by the
Commission are generally deemed to be reliable from year to year, such funds are subject to
legislative, program, or policy changes that could reduce the amount or availability of the
funding sources upon which the Commission relies.
Monitoring of Affordable Housing
Pursuant to Section 33418, the Commission is required to monitor, on an ongoing basis, any
housing affordable to persons and families of low- or moderate-income developed or
otherwise made available through any provision of the Redevelopment Law.
As part of this monitoring, the Commission will require owners or mangers of affordable
housing units to submit an annual report to the Commission. The annual reports will include
for each rental unit the rental rate and the income and family size of the occupants, and for
each owner-occupied unit whether there was a change in ownership from the prior year and,
if so, the income and family size of the new owners. The income information required by
this section shall be supplied by the tenant in a certified statement on a form provided by the
Commission. Redevelopment Law states that information on income and family size is
required to be reported by the tenant and shall be the only information on income or family
sizes that owner or manager will be required to submit in the annual report to the
Commission.
Section 33418(b) states that the information obtained by the Commission from owners and
managers of affordable housing must be included in any reports required by law to be
submitted to the HCD or the State Controller. In addition, Section 33418(c) finds the
Commission must adequately fund its monitoring activities as needed to insure compliance of
applicable laws and agreements in relation to affordable units. For purposes of defraying the
cost of complying with these monitoring requirements and the HCD Report required to be
filed with the State Controller's Report, the Commission can establish and impose fees upon
owners of properties monitored pursuant to the Redevelopment Law.
Prevailing Wage Issues
Since the Commission's approval of the last Implementation Plan, the California Legislature
has amended Labor Code Section 1720 et seq. to require payment of prevailing wages for
private improvements which are financially assisted by the Commission or City whether for
commercial, industrial, office, or housing uses. There is a very limited exception that applies
to the construction or rehabilitation of affordable housing assisted by a redevelopment
Commission using its Housing Fund which is the only source of public funding for such
development. In order to qualify for the exception there can be no other federal or state
assistance or mortgage credit certificates or state or federal low income housing credits.
Redevelopment Plans/Conflicts
If there is a conflict, which exist between this Implementation Plan and any one or all of, the
respective Redevelopment Plans or any other City or Commission plan or policy, the
applicable redevelopment plan shall control.
Rosemead Community Development Commission Five Year Implementation Plan
25
FY 2009-10 to FY 2013-14 Five Year Implementation Plan
Reserved
Rosemead Community Development Commission Five Year Implementation Plan
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