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RRA - Item 3A - Review and Adopt an Updated Implementation Plan for Redevelopment Project Area r B R A ROSEMEAD REDEVELOPMENT AGENCY 8838 VALLEY BLVD_,ROSEMEAD.CA 91770•(818)288-6671 •Yelecopler 81 83079218 TO: HONORABLE CHAIRMAN AND MEMBERS ROSEMEAD REDEVELOPMENT AGENCY FROM: �ANK G. TRIPEPI,EXECUTIVE DIRECTOR DATE: DECEMBER 9, 1999 RE: PUBLIC HEARING TO REVIEW AND ADOPT AN UPDATED IMPLEMENTATION PLAN FOR REDEVELOPMENT PROJECT AREA NO. 1 FOR FISCAL 1999-00 THROUGH 2003-04 Pursuant to current law, we are required to update our current implementation plan, which was approved by the Agency on December 14, 1994. The attached updated plan must be approved by the Agency by December 31, 1999. It has been prepared by staff and reviewed by the Agency Attorney. RECOMMENDATION It is recommended that after the close of the Public Hearing,the Agency approve the Updated Implementation Plan for Project Area No. 1 for Fiscal Years 1999-00 through 2003-04. [Jill' :": _ [ii : I-`,:`. DEC 141999 1 ''O. 03 IMPLEMENTATION PLAN ROSEMEAD REDEVELOPMENT PROJECT AREA 1 FY 1999/00 TO FY 2003/04 1. BACKGROUNDS AND LEGAL SETTING FOR THE IMPLEMENTATION PLAN On December 20, 1994, the Rosemead Redevelopment Agency (RRA) adopted an implementation plan for Rosemead Redevelopment Project Area 1 (the Project) in compliance with the Health and Safety Code section 33490 of the Community Redevelopment Law ["CRL"]. The implementation plan covered a five-year span commencing with fiscal year 1994/95 and ending with fiscal year 1998/99. This update of the implementation plan has been prepared and adopted in compliance with Health and Safety Code section 33490 and covers a five-year period commencing with fiscal year 1999/00 and ending with fiscal year fiscal year 2003/04. 1.1 Requirements of an Implementation Plan Section 33490 requires every redevelopment agency to prepare and adopt an implementation plan every five-years, with the first one adopted, after a public hearing, no later than December 31, 1994. The required components of an implementation plan applicable to the Project are: • A list of the specific goals and objectives of the agency for the project area. • Identification of the specific programs and estimated expenditures proposed to be made during the next five years. • An explanation of how the goals and objectives,programs and expenditures will: (1) eliminate blight within the project area; and (2) implement the CRL requirements that: (a) the Agency set aside and spend Low-Moderate Income Housing Funds ["LMIIHF"], (b) the City and Agency target ways to provide affordable housing in accordance with the SCAG RHAM allocation and (c) replacement housing will be produced where the project results in destruction of existing affordable housing (one for one replacement) [section 33413]. • A detailed housing program for each year of the five years of the Implementation Plan, which explains how the requirements and objectives will be achieved annually [section 33413(b)(4)]. 1.2 The Rosemead Redevelopment Project The Redevelopment Plan [the "Plan'] for the Project was adopted by the Rosemead City Council June 27, 1972. The Project Area is in the southern part of the City, principally south of Hellman Avenue and east of San Gabriel Boulevard and contains approximately 511 acres. At the time of adoption, the Project Area was mainly commercial (151.83 acres) and industrial (147.81 acres) with some residential development (71.78 acres) and the balance in open spaces and schools (98.83 acres). The Report to the City Council upon Plan adoption, other Plan documents and the Plan itself has identified various physical and economic blighting conditions within the Project Area, which the Plan seeks to alleviate. These include: I. Defective design and character of physical construction of structures. 2. Age, obsolescence, deterioration or disuse of buildings. 3. Economic dislocation, deterioration or disuse resulting from faulty planning. 4. The existence of inadequate streets, open spaces and utilities. 5. A lack of proper utilization of areas resulting in a stagnant and unproductive condition of land potentially useful for contributing to public health, safety and welfare. 6. Inadequate provision for ventilation, light, sanitation, open spaces and recreation facilities. 7. Depreciated values and impaired investments. 8. Building vacancies and abandoned structures. 9. Social and economic maladjustment. 1.3 Agency Activities to Date Since the adoption of the Plan in 1972,the Agency has undertaken numerous activities to alleviate blighted conditions in the Project Area. These activities include: • Construction of streets to provide proper access to private property. • Reconstruction of substandard and/or deteriorated streets. • Installation of curbs, gutters and sidewalks along streets lacking such improvements. • Construction of storm drains and other facilities to eliminate drainage problems. • Replacement of undersized or otherwise inadequate water mains. 2 • Improvement of park and recreational facilities. • Acquisition and reparcelization of land in order to create adequately sized and dimensioned sites for development. • Installation of landscaping to enhance the appearance of the commercial portions of the Project Area. • Development of a community/senior citizen center. • Provision of financial aid and technical assistance for the rehabilitation of commercial properties in the Project Area. • Provision of financial aid for the development of affordable housing for low-and moderate-income households. 1.4 Goals and Objectives of the Implementation Plan - FY 1999/00 to FY 2003/04 The original five-year Implementation Plan, adopted bythe Rosemead Redevelopment Agency in December 1994 sought to address persisting frms of blight and describe other activities that advanced the stated goal of the Project to "improve the quality of life for the residents of the City of Rosemead." Since that time, the RRA has completed a large number of successful projects furthering that goal. However, some forms of blight still exist, thus requiring the continued efforts of the RRA. The following is a list of goals and objectives, which will give direction to the projects and programsthat will be initiated over the next five years. The specific goals and objectives for the implementation plan period FY 1999/00 to FY 2003/04 are: 1. To encourage the redevelopment of deteriorated or blighted properties through the provision of needed public infrastructure improvements such as the reconstruction of streets, the construction of street lighting improvements, the construction of storm drains and other drainage facilities and the Improvement of recreation and open space facilities. 2. To construct 72 additional units of low-income senior citizen housing, as authorized by citywide referendum pursuant to Article 34 of the State Constitution. 3. To improve the appearance and appeal of commercial segments of the Project Area. 4. To conserve and improve the existing housing stock within the City. 5. To financially assist property owners in the rehabilitation and improvement of existing housing. 6. To create home-ownership opportunities for low and moderate-income households. 7. To provide public services meeting the diverse needs of the City's residents. 8. To implement the principal recommendations of the Rosemead General Plan. The Matrix presented in Table 1 which follows, illustrates how these eight goals and objectives address and eliminate the conditions of light identified in the Project Area. . a PSC 3 • - - - °.0 7.7 C. , a • - - - - - - - - - - - CC / { " ® ! ! x $ ! § ; y y rE tel la _ &- - I! { @ l : /- } ; , , , , , _ 7,5 0,\ 7. \ /n z -' / : 0\ - { \ \ \ \ \\ } / o } cc is v /\ \ \ \ �\ \ \ \ } 3 a- 2 a c. - \ K \ ( a } } . - ® } ° : \ s._ ( 3 XI on on; \ E\ ( _ ( } ( , C.- \ [ } } ! 3 ! ! - _ 7 ` _ - ) ( / \ � \ — , - f E \\ \ \ \\ } 0. \ \ \ te \ \ \ \re- \ � �n co 3 \ \ \ r 2. ADDITIONAL CONSIDERATIONS REGARDING THE IMPLEMENTATION PLANNING PROCESS 2.1 Housing Production Requirements As a pre-1976 redevelopment plan the Project is exempt from the housing production requirements of section 33413. The Agency became subject to the one-for-one housing replacement requirement of section 33413 beginning January 1, 1996. However, in carrying out the Plan the Agency has avoided projects that would result in the elimination of existing housing and no implementation activities are scheduled in the next five years that would result in any housing removal. For the above stated reasons, the housing section of this implementation plan does not include an AB 315 Housing Production Plan. Nor does it identify proposed locations for replacement dwelling units. Instead, it projects planned and potential uses of monies deposited in the Low-Moderate Income Housing Set-Aside Fund ["LMIHF"] and establishes an annual housing program for use of these funds. 2.2 Housing Fund Requirements;Available Funds Since fiscal year 1985-86 the Agency has been required to allocate 20% of its tax increment to the LMIHF. As authorized by the redevelopment law, some of this obligation was deferred to give funding priority to projects and obligations itemized in Resolution 86-36,the Agency's Statement of Existing Obligations and Projects. The Agency has adopted a plan to eliminate that deficit after retirement of its bonded indebtedness but that deficit repayment is not anticipated to occur during the five-year life of the current implementation plan. Despite the deferral of LMIHF payments, the Agency has paid the deposits required for fiscal years 1991-92,1992-93, 1996-97, 1997-98 and 1998-99. The Agency has also pre- funded a portion of the deposit requirements for fiscal years 1999-2000 through 2021- 2022. As of June 30, 1999, the LMIHF had a balance of$5,857,163. During the five-year period of the implementation plan the fund will receive approximately $240,000 per year in tax increment set aside funds and an aggregate of$538, in interest earnings. Thus, there will be more than $7,000,000.00 available for the housing programs detailed later in this plan. However, it is anticipated, primarily due to the need to cash finance construction of the Garvey Senior Citizens Residential Project,that Agency expenditures on affordable housing programs will actually exceed that amount. Accordingly, approximately $3,570,000 of non set-aside funds will have be advanced to the LMIHF. These advances, administrative expenses, and debt service, will essentially exhaust all tax 5 increment received by the Agency over the five years of the implementation plan, leaving nothing for additional projects except for those capital projects which will be funded from existing tax allocation bond proceeds. 2.3 Relationship to Housing Element of the Rosemead General Plan The five-year Housing Development Program to be undertaken as part of this implementation plan must be consistent with the Housing Element of the Rosemead General Plan. Two key components of the Housing Element that must be considered in determining consistency are the housing need estimates and the quantified objectives contained in the Housing Element. The Southern California Association of Governments [(SCAG)] through its Regional Housing Allocation (RHNA) Model developed the housing need estimates in 1999. The San Gabriel Valley Council of Governments (SGVCOG) undertook the responsibility of distributing the amount of housing unit needs to the individual cities of the San Gabriel Valley. The SCVCOG allocated to the City of Rosemead a need for 489 affordable housing units between January of 1998 and January of 2003. The breakdown of this estimated need by income category is shown in Table 2. It should be noted that RHNA numbers were adopted by SCAG's governing board on November 4, 1999 in draft form and the appeal process will be available for 90 days, if individual cities wish to contest their appropriated target housing need numbers. Rosemead may exercise the right of appeal to these numbers, after a more thorough study of the formulas and base data. **********************t****************x******************************x* Table 2 Estimated Housing Needs By Income Category Number of Additional Affordable Housing Units Needed Income Category 1998-2005 Very low 202 Low 132 Moderate 155 Total 489 Source: Southern California Association of Governments - 1999 Draft RHNA. ***************************************************************** 6 While SCAG has estimated a need for 489 additional affordable housing units within the City by the Year 2005, the number of affordable units that the City believes it can reasonably provide, using its available resources, constitutes the quantified objectives of the Housing Element. As shown in Table 3, the maximum feasible effort to be made by the City could result in the provision of 485 new additional affordable housing units and the rehabilitation of 175 housing units. However, the City of Rosemead is in the process of updating the Housing Element of the General Plan and these unit numbers will change slightly. The update will be complete in June of 2000. These need estimates and quantified objectives have been considered in formulating the Five-Year Housing Development Program presented later in this plan. This implementation plan, and specifically its housing production component, is consistent with the Housing Element of the Rosemead General Plan. The implementation of the housing projects and programs proposed in this plan will further the attainment of the goals and objectives of the Housing Element. ******************************************************************kik** Table 3 Quantified Housing Objectives 1998-2005 Income Category New Construction Rehabilitation Very low 138 131 Low 187 44 Moderate 140 0 Totals 485 175 *********************************************************************** 3. FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM-FY 1999/00 TO 2003\04 3.1 Programs At the commencement of the implementation plan period the Agency had a balance in its capital projects fund of$7,896,979. These funds, proceeds of the Series 1993A Tax Allocation Bonds, together with interest earnings on the fund balance, are earmarked for use during the five years of the implementation plan on capital improvement programs and other miscellaneous plan activities. The following capital improvement programs have been designed to further the specific goals and objectives directed at eliminating blight. (See section 1.4 above.) 1. Walnut Grove Avenue Beautification, Utility Undergrounding and Landscaping Project 7 2. San Gabriel Boulevard Beautification, Utility Undergrounding and Landscaping Project 3. Del Mar Avenue Beautification, Utility Undergrounding and Landscaping Project 4. Street Resurfacing- Annual Project on Various Streets 5. Street Lighting Improvements -Annual Project on Various Streets 6. Slurry Seal - Annual Project on Various Streets 7. Concrete Repairs -Annual Project on Various Streets 8. Highcliff Street Widening and Reconstruction Project 9. Delta Storm Drain Construction Project 10. Kelbum Storm Drain Construction Project 11. Del Mar Sewer Collector Construction Project 12. Sanitary Sewer Improvements -Various Relief Projects 13. Bridge Maintenance and Retrofit Projects 14. Substandard Street Widening - Annual Project on Various Streets 15. Virginia Street Widening and Reconstruction Project 16. Walnut Grove Off-ramp Construction Project 17. Park Renovations/Improvements - Annual Project at Various Locations 3.2 Implementation Schedule Table 4, which follows, provides the time frame for the five-year expenditure plan for these programs. 8 ^ 2 \ j \ / ) 2 § { { 77 / \ )© 5 , O oC noo 5 2 \ G_ , ; , :' ; : ` 0 & \ © = o , z > « z + > , , \ 0 ! \ ! 2 ® r [ ! ° « \ } k } ( \ B ° -C?. 2 { \ zs ) 8011)0 ] w ( ! ) $ _1l202 , a O ° oaE ° 3 / - ` Ea § ET! / ƒ ; ) - © / j } } X50 0 0- :CD $ 70 \ $ § \ to _ , _ _a bb \ _ , 0 cialo ° § § -1 \ \ § 2 $ / ) ` O \ k § m / § ) \ \ \ \ / / § \ 000 j \ ¥ \ i � \ \ \ / o 0 bt ) to , t9 ) _ ) / ) \ / $ t = 2 / / 7 ) $ , \ 7 \ / 4. FIVE-YEAR HOUSING DEVELOPMENT PROGRAM- JULY 1, 1999 THROUGH JUNE 30,2004 As pointed out above in the discussion of the legal requirements and funding to date of the LMIHF,more than $7,000,000 LMIHF, and additional non LMIHF tax increment monies, are expected to be available for affordable housing expenditures during the implementation plan period. Housing activity will be directed to the development and operation of two senior housing projects, first time homeowner purchase assistance programs for low-and moderate-income households, and homeowner rehabilitation assistance for low-and moderate-income homeowners. 4.1 Angelus Senior Housing Project 4.1.1 Program Description The Rosemead Housing Development Corporation ["RFIDC"], a City sponsored nonprofit public benefit corporation owns and operates a 51-unit senior citizen apartment complex on land leased from the City. The construction and permanent financing for the Angelus Senior Housing Project ["Angelus Project"] consisted of fully committed LMIHF funds. The apartment complex contains 50-units for seniors with income less than 40%of median and a managers unit. It contains amenities such as a large community room, exterior gardens, and a library and laundry room. The operational agreements for the Angelus Project require that the Agency subsidize the project's operational losses. Those losses are $150,000 annually, and such payments will be drawn from the Agency's housing fund. 4.1.2 Implementation Schedule The Angelus Senior Housing Project was completed in April 1995, and is currently in operation. 4.2 Garvey Avenue Senior Housing Project 4.2.1 Program Description During the course of this implementation plan the RHDC will build and operate a senior housing project at 9018 Garvey Avenue[the"Garvey Project"]. The City will lease 1.1 acres of City owned land to the RHDC, together with 2 acres the City leases from the federal government, giving the project in excess of three acres for the site. The Garvey Project is voter approved for development of up to 150 units of low-income senior housing, although the RHDC initially plans for the development of 72 units. The Garvey Project will consist of 1- and 2-bedroom units. Each unit will be between approximately 550 and 700 square feet, contain a kitchen and living area,be handicap 10 adaptable and be designed for independent living. The four(4)-story housing project will be developed in conjunction with a community center occupying a portion of the site. The community center will provide recreation and meeting facilities for the occupants of the senior housing project and the overall community. The total square footage of the project is approximately 67,500 square feet for the housing portion and 25,000 for the community center. 4.2 Implementation Schedule As currently scheduled, in the first two years of the implementation plan the Garvey Project will be planned, designed and put to bid. In the third year the Agency anticipates constructing the project. In the fourth year the project will be in operation. 4.2.3 Funding The estimated construction cost for the Garvey Project is $70,000 per unit, or$5,000,000 for the 72 units that will be constructed in 2000-01. Monies to finance the development and construction costs of the residential units, and operational shortfalls following lease- up,will come from the LMQ-IF and advances of other tax increment revenues. Park Bond Act funds, CDBG Grants and state grants will be used for the community center. 4.3 First Time Homeowner Purchase Program 4.3.1 Program Description According to SCAG, approximately 2,400 low and moderate-income households that rent housing in the City of Rosemead are overpaying their monthly housing cost. This proposed program will assist such households in reducing their housing costs by helping them become homeowners. In addition,the homeowner/purchaser must occupy the home that is purchased with Agency assistance as their primary residence. Using LMIHF proceeds, this program is operated by the RHDC. Financial assistance is made available in the form of deferred payment and low-interest loans for the purchase of single-family homes or condominium units. The loan funds are used to cover the difference between the purchase price of a home(market value) and the sales price that would be affordable to the purchaser("gap financing"). The loans are used to provide down payment assistance for households qualifying under guidelines that have been established by the RHDC. First time homeowner loans are secured by a deed of trust and a promissory note. All loans are due and payable upon transfer of title to the property. Sub-leasing or renting of the property is not allowed. 4.3.2 Implementation Schedule Year One-This program became operational during the 1998-99 fiscal year. 11 4.3.3 Funding This program was initially capitalized by an allocation of$250,000 from the LIvIIHF during fiscal year 1998/99. The RRA may increase that amount in subsequent years if the need arises and the program achieves the goals established by the RRA. 4.4 Homeowner Rehabilitation Program 4.4.1 Project Description Based on a 1981 housing condition survey, 2,271 housing units in the City of Rosemead were deteriorated and in need of rehabilitation. At the time,this represented approximately 16%of the City's total housing stock. Since then,the City has effectively used federal Community Development Block Grant ["CDBG"] funds to rehabilitate nearly 670 residences. While measurable progress has been made in improving the condition of the local housing stock, a substantial number of units are still in need of rehabilitation. This new program will complement on-going CDBG funded efforts and stimulate increased housing rehabilitation activity in the City. It will offer financial assistance for the rehabilitation of single-family homes that are owned and occupied by households at the 80-120%of the median income. It will offer handyman grants, emergency grants, rebates, deferred loans and loans. The maximum loan amount and term would be established by the RHDC. A loan is due and payable to the RHDC at the end of the loan term or upon transfer of title to the property, whichever occurs first. A loan would also become due and payable if the property is rented during the term of the loan. All loans are to be secured by a deed of mist and a promissory note. Loan proceeds can be used to pay for: • energy conservation improvements; • elimination of lead-based paint hazards and corrections of code violations; • accessibility improvements for handicapped persons; • repair or replacement of electrical, plumbing, and/or heating/cooling systems; • repair of incipient problems and general property improvements of a non-luxury nature; • any improvements required to bring the property into compliance with the City's Housing Rehabilitation Standards; • demolition of existing improvements and utility connections when an essential part of rehabilitation project; 12 Loan funds may be used to pay for related "soft" costs such as the preparation of plans or drawings, building permit fees, financing costs (e.g., credit and title reports, appraisals and recording fees) and temporary relocation costs. All rehabilitation must conform to the City's building codes. If the work involves substantial rehabilitation(i.e., more than $25,000 in total cost), it must also meet local zoning ordinance and rehabilitation standards. 4.4.2 Implementation Schedule Year One- LMIIIF will be budgeted and expended on this program at such time as demand for the program exceeds CDBG funding. 4.4.3 Funding $150,000 from the LMIHF could be allocated to initially capitalize this program. Assuming an average loan amount of$20,000,this funding would be sufficient to rehabilitate six single-family homes,including the administrative costs for loan processing and construction management. Expenditures in ensuing years would be dependent upon demand generated in the first year of the program and on availability of funds. Djwmem:ab 1290imppin.04 13 1P—O6-1999 853A FROM P. 2 (Space below for Inc of County Clerk only) SAN GABRIEL VALLEY TRIBUNE affiliated with SGV Newspaper Group 1210 N. Azusa Canyon Road West Covina,CA 91790 PROOF OF PUBLICATION • (2015.5 C.C.P.) STATE OF CALIFORNIA - Proof of Publication of County of Los Angeles CITY OF ROSEMEAD _ NOTICE OF PUBLIC HEARING am a citizen of the United States, and aNotice is hereby even shot the Rosemeod resident of the countyaforesaid; I am over the hevringRedevelopment review will on a undated Implementation Plan for Redevelopment age of eighteen years, and not a party to or v . I.Thheatolo held orTueemofo. trir o interested in the above-entitled matter. I am the City Conference Room at Rosemead Clv the principal clerk of the printer of glal.San E. Volley Boalevarl Rosemeod,CA ' SAN GABRIEL VALLEY TRIBUNE, a At the public hearing,all people interested in newspaper of general circulation which has been the implementation plan may appear and be adjudicated as a newspaper ofgeneral heard. If you wish to challenge the Jlementoton pion in court, you may be circulation by the Superior Court of the County precluded from doing so unlers you have objected to R3 approve/ orally at the pubhr i of Los Angeles, State of California, on the date hearing or by delUVerin9 written objections to the City Clerk at or prior to the pubt: of September 10, 1957, Case Number 684891. tiering Copies of the impleentation Dion ore The notice, of which the annexed is a true availablm e of the Office of me city clerk for pt,b c inspection and copying cd a cost not t0 printed copy, has been published in each regular exceed the cost of duolicaron. and enured issue of said newspaper and not in Publish: November e,15,V.1999 any supplement thereof on the following dates, Son Gaanel Polley Tribune Ad No.roan to wit: 78, ` h, ' 'lc� y 1891 I declare under penalty of perjury that the foregoing is true and correct. Execut at West Covin- LA Co. California Cy th' day of S 19 / 7 Signature Cit JOE VA oseslacada v' JOE VA MAYOR PRO TEM: Y� APOARET CLARK COUNCILMEMBERS: ♦ 1 8638 E.VALLEY BOULEVARD•PO.BOX 399 ROBERT W BROESCH •Cyr ROSEMEAD.CALIFORNIA 91770 JAY T IMPERIAL TELEPHONE(626)288-6671 GARY A.TAYLOR FAX(626)307-9215 CITY OF ROSEMEAD NOTICE OF PUBLIC HEARING Notice is hereby given that the Rosemead Redevelopment Agency will hold a public hearing to review and adopt an updated Implementation Plan for Redevelopment Project Area No. 1. The hearing will be held on Tuesday, December 14, 1999, at 7:00 p.m. in the City Conference Room at Rosemead City Hall, 8838 E. Valley Boulevard, Rosemead, CA 91770. At the public hearing, all people interested in the implementation plan may appear and be heard. If you wish to challenee the implementation plan in court, you may be precluded from doing so unless you have objected to its approval orally at the public hearing or by delivering written objections to the City Clerk at or prior to the public hearing. Copies of the implementation plan are available at the Office of the City Clerk for public inspection and copying at a cost not to exceed the cost of duplication.