RRA – Item 2 – Public Hearing to Review and Evaluate Redevelopment Plan for Project Area No. 1 ROSEMEAD REDEVELOPMENT AGENCY
R RA
8838 VALLEY BLVD,ROSEMEAD,CA91770•(818)288-6671*Telecopier 8183079218
TO: HONORABLE CHAIRMAN
AND MEMBERS
ROSEMEAD REDEVELOPMENT AGENCY
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: DECEMBER 3, 1997
RE: PUBLIC HEARING TO REVIEW AND EVALUATE REDEVELOPMENT PLAN FOR
PROJECT AREA NO. I
California Redevelopment Law requires the Agency to adopt an implementation plan for its
redevelopment project every five years. The implementation plan is intended to set forth the plans,
goals and objectives for Rosemead Redevelopment Project Area No. 1 during the five-year period.
Pursuant to Section 33490 of the Health and Safety Code, the Rosemead Redevelopment Agency
adopted an implementation plan in December 1994. In addition to updating that plan every five years,
the law requires that half way through the term of an implementation plan, the Agency conduct a
public hearing and hear testimony from all interested parties for the purpose of reviewing the
redevelopment plan and the implementation plan. No forma] action is required following the hearing.
The purpose of the hearing is merely to hear public comments on how the redevelopment project is
progressing.
Staff has attached a copy of the implementation plan for Project Area No. 1, as approved by the
Rosemead Redevelopment Agency in December 1994.
RECOMMENDATION:
It is recommended that the Redevelopment Agency open the public hearing, hear testimony from
interested parties and close the hearing. No further action is required.
mime troupdtc,ils
AGENCY AGENDA
DEC 91997
ITEM No. a•
IMPLEMENTATION PLAN
ROSEMEAD REDEVELOPMENT PROJECT AREA 1
1. Background and Legal Setting for the Implementation Plan
This implementation plan for Rosemead' s Redevelopment Project
Area 1 [the "Project" ] has been prepared and adopted in compliance
with Health and Safety Code section 33490 of the Community
Redevelopment Law [ "CRL" ] .' The implementation plan covers a five
year span commencing with fiscal year 1994-95 and ending with fiscal
year 1998-1999 .
1.1 Requirements of an Implementation Plan
Section 33490 requires every redevelopment agency to prepare
and adopt a five-year implementation plan, 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
[ "LMIHF" ] , (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 The Community Redevelopment Law is contained in Health
and Safety Code sections 33000 et sea. All section references in
this implementation plan are to the Health and Safety Code unless
otherwise indicated.
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 have identified various physical and
economic blighting conditions within the Project Area which the Plan
seeks to alleviate. These include:
1 . 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.
2
♦ 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 .
♦ 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 Five Year Implementation Plan
The original Plan documents identified numerous goals and
objectives designed to deal with deleterious conditions in the
Project Area. While the above-described Agency activities
alleviated many of those conditions, some forms of blight persist
and must be eliminated. In addition, other activities to further
the stated goal of the Project to "improve the quality of life for
the residents of the City of Rosemead" are warranted and will be
addressed in this five year plan. The goals and objectives of this
plan give direction to the projects and programs that will be
initiated over the next five years . The specific goals and
objectives for the implementation plan period 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 the 200 units of low income senior citizen
3
housing 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
blight identified in the Project Area .
4
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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 will become 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 has been 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 1991-1992 and 1992-1993, and has
pre-funded a portion of the deposit requirements for fiscal years
1996-1997 through 2021-2022 . Accordingly, by July 1, 1994 the
Agency had already expended $1, 837, 331 of fund monies on land
acquisition and construction of affordable housing and had a fund
balance of $6, 353 , 876 . It is estimated that, pursuant to Agency
Resolution No. 93-27, additional deposits totalling approximately
$1, 300, 000 will be made in annual installments in excess of $400, 000
each in the third, fourth and fifth years of the implementation
plan. Thus the Agency should have over $7 , 600, 000 of funds
available to provide low and moderate income housing during the five
years of this implementation plan.
5
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 housing need estimates were developed by the Southern
California Association of Governments [ "SLAG" ] through its Regional
Housing Allocation Model . According to SCAG, a total of 149 housing
units affordable to low and moderate income households need to be
provided within the City of Rosemead between 1990 and the Year 2000 .
The breakdown of this estimated need by income category is shown in
Table 2 .
Table 2
Estimated Housing Needs By
Income Category
Number of Additional
Affordable Housing
Units Needed
Income 1990-2000
Category
Very low 44
Low 58
Moderate 47
Total 149
Source : Southern California Association of Governments .
*****************************************************************
While SCAG has estimated a need for 149 additional affordable
housing units within the City by the Year 2000, 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 233
new affordable housing units and the rehabilitation of 175 housing
6
units occupied by lower income households over the 7-year life of
the Housing Element .
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.
*****************************************************************
Table 3
Quantified Housing Objectives
1989-1996
Income Category New Construction Rehabilitation
Very low 150 131
Low 18 44
Moderate 65 0
Totals 233 175
Source: Housing Element, Rosemead General Plan.
3 . Five Year Capital Improvement Program (July 1, 1994 - June 30,
1999) .
3 .1 Programs
At the commencement of the implementation plan period the
Agency had a balance in its capital projects fund of $21, 948, 754 .
These funds, proceeds of the Series 1993A Tax Allocation Bonds, 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 . San Gabriel Boulevard beautification, utility
7
undergrounding and landscaping project .
2 . Del Mar Avenue beautification, utility undergrounding and
landscaping project.
3 . 1993-94 Street Overlay Project - various streets .
4 . 1994-95 Street Overlay Project - various streets .
5 . 1995-96 Street Overlay Project - various streets .
6 . Highcliff Street Reconstruction Project .
7 . Burton Avenue Storm Drain Construction Project.
8 . Bartlett Street Storm Drain Construction Project.
9 . Muscatel Avenue Storm Drain Construction Project.
10 . Walnut Grove Avenue Off-ramp Construction Project .
11 . Walnut Grove beautification, utility undergrounding and
landscaping project.
12 . East Garvey Avenue Bridge Reconstruction Project .
13 . San Gabriel Avenue/Fern Street Storm Drain Construction
Project .
14 . Delta Avenue Storm Drain Construction Project .
15 . Fern Avenue Reconstruction and Extension Project.
16 . Street Light Improvement Project - various streets .
17 . Development of Sewer System Master Plan.
18 . Ongoing Slurry Seal Program - various streets .
19 . Wheelchair Access Ramp Construction Program - various
streets .
20 . Concrete and Hardscape Repair Program.
3 .2 Implementation Schedule
Tables 4 and 5 which follow provide the time frame for the
five-year expenditure plan for these programs .
8
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4 . Five Year Housing Development Program by Year (July 1, 1994 -
June 30, 1999 . )
As pointed out above in the discussion of the legal requirements
and funding to date of the LMIHF, approximately $7 , 600, 000 of LMIHF
monies are expected to be available for affordable housing
expenditures during the implementation plan period. Housing activity
will be directed to the development of two senior housing projects,
assisted first time homeowner purchase programs for low-and moderate
income households, assisted homeowner rehabilitation for low-and
moderate-income homeowners and support for mobile home park
conversions .
4.1 Angelus Senior Housing Project
4. 1.1 Program Description
The Rosemead Housing Development Corporation [ "RHDC" ] , a City
controlled nonprofit public benefit corporation will own and operate
a 51-unit senior citizen apartment complex now being built on land
leased from the City. The construction and permanent financing for
the Angelus Senior Housing Project [ "Angelus Project" ] consists of
fully committed LMIHF funds . The apartment complex contains 50-units
for very low income seniors and a manager ' s unit . It will contain
amenities such as a large community room, exterior gardens, a library
and laundry room.
The project is fully entitled, building permits have been issued
and the project is about 90% complete. The Agency has provided
financing totalling approximately $3 , 844, 372 in the form of two loans
with simple interest of 3% . The tax credit investor equity in the
limited partnership will pay off approximately $2 , 201, 842 of the
first construction loan balance when the Project is placed in service
during the first year of the implementation plan. The Agency will
maintain a permanent loan of approximately $1, 000, 000 in first
position with simple interest at 3% with a term of 30 years when the
principal amount shall be due.
The operational agreements for the Angelus Project require that
the Agency subsidize the project ' s operational losses . Those losses
are projected to be about $28, 000 annually, and such payments will be
drawn from the Agency' s housing fund.
4 .1.2 Implementation Schedule
A breakdown of the Angelus Project costs for the period through
March 1995 is presented in Table 6 . Table 6A indicates the assessed
valuation projections through the Year 2022 . Table 6B states the
projected revenues available for repayment of the 1993 Bond Issue.
Table 6C shows the revenues available for repayment of the 1993 Bonds
and deposits to the Housing Fund through 2022 .
9
ROSEMEAD REDEVELOPMENT AGENCY
ANGELUS SENIOR HOUSING COSTS
(Table 6)
New Construction $2,896,000
Architectural $173,100
Survey and Engineering $8,800
Construction Interest $56,169
and Title Fees
Attorney Fees $15,000
Appraisal $5,000
Developer Costs $490,000
Other costs (furniture, permit $200,303
fees, TCAC fees, etc.)
TOTAL COSTS $3,844,372
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4.2 Garvey Avenue Senior Housing Project
4.2 .1 Program Description
The RHDC will build and operate a senior housing project at 9018
Garvey Avenue [the "Garvey Project" ] . The Agency will provide 1 . 1
acres of land which it owns together with 2 acres the Agency 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.
The Garvey units will be similar in size to the Angelus project .
Each unit will be approximately 550 square feet, contain one bedroom,
a kitchen and living area, be handicap accessible and be for
independent living. The project will be developed in conjunction
with a community center which will occupy the first floor. The
senior apartments will be on the second, third and fourth floors .
The total square footage of the project is approximately 110, 000
square feet for housing and 30, 000 square feet for the community
center.
4 .2 .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
$60, 000 per unit, or $9, 000, 000 if all 150 units are built. Monies
to finance the development and construction costs will come from the
LMIHF and funds from other government and/or private loans and/or tax
credit investors.
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 .
10
Using LMIHF proceeds, this program will be operated by the RHDC.
Financial assistance is made available in the form of deferred
payment, interest free loans for the purchase of single-family homes
or condominium units . The loan funds are to be 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" ) . Loans may be used to provide up to 75% of the required
down-payment with the maximum loan amount being $25, 000 . The RHDC
can establish a maximum purchase price for housing purchased by
individuals qualifying for this assistance program.
Such a loan is due and payable to the RHDC upon transfer of
title to the property. All loans are to be secured by a deed of
trust (not less than second position) and a promissory note . Sub-
leasing or renting of the property is not allowed. The purchaser
must subsequently sell the home to a low- and moderate-income buyer
at an affordable price while allowing for a "fair return on
investment . " Upon sale, the RHDC will recover its initial investment
and a portion of any appreciation in home value, based on the
percentage of its initial investment, at the time of resale.
4 .3 .2 Implementation Schedule
Year Two - This program is expected to become operational during
the 1995-96 fiscal year.
4.3 .3 Funding
This program will be initially capitalized by an allocation of
$150, 000 from the LMIHF. Based on the maximum loan amount of
$25, 000, these funds will facilitate the purchase of six homes by
first-time homeowners including administrative costs for loan
packaging and underwriting. Assuming an average loan amount of
$15, 000, these funds could assist nine first-time home buyers.
Expenditures in years three, four and five of the implementation plan
would be dependent upon demand generated in the first year of the
program and on availability of funds .
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 600 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.
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This new program will supplement 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 low- and moderate-income
households . The financial assistance will be provided in the form of
deferred payment, non-interest bearing loans . The maximum loan
amount is $35, 000 with a maximum term of 15 years . 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 trust and a
promissory note. Loan proceeds can be used to pay for:
• energy conservation improvements ;
♦ elimination of lead-based paint hazards ;
• 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 a rehabilitation project;
• room additions and remodeling projects.
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 - This program will be initiated during the 1994-95
fiscal year .
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4.4.3 Funding
$150, 000 from the LMIHF will 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.
4 .5 Mobile Home Park Conversion Program
4.5.1 Program Description
Mobile home parks represent a viable opportunity to preserve
affordable housing in the City because they constitute an existing
housing stock which is accepted within the community. Preservation
of mobile home parks has a less disruptive effect than the
introduction of new housing. Nevertheless, because of the location
of the parks, the low intensity land use, and development pressures
to convert mobile home park land to a "higher and better use" , the
parks often succumb to development pressures and are converted to
market-rate housing or non-housing uses.
The resulting loss of affordable housing can be avoided by the
Agency promoting resident acquisition of mobile home parks . The CRL
authorizes use of LMIHF monies to finance the acquisition of mobile
home parks so long as the acquired park is owned by a non-profit
coLporation, a non-profit limited equity housing cooperative formed
by park residents or a housing authority created by the City.
4.5.2 Implementation Schedule
Year One - During the first year of the implementation plan the
Agency will assess the demographics of the mobile home parks within
the City and evaluate whether preservation of selected parks fits
within the City' s housing strategy. At the end of Year One, after
the completion of this evaluation and assessment, the Agency can then
develop a strategy for Years Two, Three and Four, as it relates to
Mobile Home Parks .
stafinem.1290plan
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