CDC - Item 3 - Improving 2005-09 Redevelopment Implementation PlanTO: HONORABLE CHAIRMAN
AND MEMBERS
ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSIOI�(��
FROM: BILL CROWE, EXECUTIVE DIRECTOR
DATE: DECEMBER 14, 2004
SUBJECT: PUBLIC HEARING RESOLUTION NO. 2004 -25,
APPROVING THE 2005 -2009 REDEVELOPMENT
IMPLEMENTATION PLAN
California law has required the preparation of Implementation Plans since 1994. These
Implementation Plans must be prepared every five years and reviewed every two and
one /half years and all Commission expenditures must be in general conformance with the
plans. The Implementation Plans can also be amended, as necessary, to accommodate
changing goals and programs the Agency may consider in the future.
One of the State's primary purposes in requiring Implementation Plans is ensure that
redevelopment agencies review their progress on meeting the housing requirements in
state law. These requirements include the use of housing set -aside or "20% funds" and to
demonstrate that agencies are complying with the requirements for inclusive and
replacement housing in the law.
With respect to the subject Implementation Plan for the next five years, economic
development activities are to pursue a variety of business attraction activities, work with
property owners to develop property as defined in the City's General Plan and to assist
businesses and retailers in processing plans with the City and in analyzing market needs.
Future housing programs are projected to include the Home Purchase Program and will
continue to subsidize annual shortfalls in the operating income for the Garvey and
Angelus Senior Housing Projects to keep rents affordable.
COMMISSION AGENDA
DEC 12 2004
ITEM No. 1_? .
Infrastructure and public facility efforts focus on improvements to the City's park
facilities; the Rosemead Public Safety Center at Zapopan Park and to the National
Pollutant Discharge Elimination System. In addition, the Five -Year Capital Improvement
Program includes San Gabriel Boulevard beautification, Virginia Street improvements,
traffic signal controller upgrades and the Columbia Avenue storm drain.
Each program alluded to within the Implementation Plan will require subsequent
Commission approval prior to the expenditure of funds. The Implementation Plan does
not bind the Commission to actually undertake any specific program; it merely sets forth
the goals and objectives as they are currently envisioned for the next five -year period.
The public hearing has been advertised in accordance with the law with publication dates
on November 22, 2004, November 29, 2004 and December 4, 2004; and posted on
November 18, 2004 at eight places throughout the Project Areas.
Recommendation
Adopt Resolution No. 2004 -25, a Resolution of the Rosemead Community Development
Commission approving the Implementation Plan for 2005 - 2009.
RESOLUTION NO. 2004 -25
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION, CITY OF ROSEMEAD, CALIFORNIA ADOPTING THE
2005 - 2009 IMPLEMENTATION PLAN
WHEREAS, California Health and Safety Code Subsection 33490(a)(1)
provides, in part, on or before December 31, 1994, and each five years thereafter, each
agency that has adopted a redevelopment plan prior to December 31, 1993, shall
adopt, after a public hearing, an implementation plan that shall contain the specific
goals and objectives of the Commission for the project area, the specific projects and
expenditures proposed to be made during the next five years, and an explanation of
how the goals and objectives, projects and expenditures will eliminate blight within the
project area; and
WHEREAS, in compliance with California Health and Safety Code Subsection
33490(d) notice of public hearings conducted pursuant to this section shall be
published pursuant to section 6063 of the Government Code and posted in at least four
permanent places within the project area for a period of three weeks. Publication and
posting shall be completed not less than ten days prior to the date set for hearing; and
WHEREAS, on December 14, 2004, this Commission conducted and concluded
the above - referenced duly noticed public hearing; and
WHEREAS, all legal, prerequisites to the adoption of this Resolution have
occurred.
NOW, " THEREFORE, THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
SECTION 1: Pursuant to California Health and Safety Code Section 33490, this
Commission hereby adopts that document entitled "2005 — 2009 Implementation Plan ",
a true and correct copy of which is attached hereto and marked Exhibit "A ". and
incorporated herein by this reference as the 2005 — 2009 Implementation Plan for
Project Area No. 1 and Project Area No. 2.
SECTION 2: The Secretary to this Commission shall certify to the adoption of this
Resolution.
ADOPTED SIGNED AND APPROVED this 14th day of December 2004.
CHAIRPERSON
ATTEST:
I, , Secretary of the Rosemead Community Development Commission, DO
HEREBY CERTIFY that the foregoing Resolution, being Resolution No. has
been duly signed by the Chairperson and attested by the Commission. Secretary, all at
a regular meeting of the Rosemead Community Development Commission, held on
December 14, 2004, and that the same was adopted, signed and approved by the
following vote to wit:
AYES:
NOES
ABSENT:
ABSTAINED:
COMMISSION SECRETARY
2005 —2009
Redevelopment
Implementation Plan
Rosemead Community Development
Commission
TABLE OF CONTENTS
1.0 INTRODUCTION 1
1.1
Overview
1
1.2
Background
1
1.3
Intent of the Implementation Plan
2
1.4
Implementation Plan Requirements
3
1.4.1 AB 1290 Requirements
3
1.4.2 AB 637 Requirements
4
1.4.3 Senate Bill 701
5
1.5
Purpose of the Implementation Plan
5
1.6
Drafting Process /Relationship to Other Plans
6
1.7
Definition of Blight
6
1.8
Amendments to the Implementation Plan
7
2.0 ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
8
2.1
History of the Commission
8
2.2
Commission Organization
8
2.3
Rosemead Housing Development Corporation
8
2.4
Project Area Background
9
2.4.1 Project Area No. 1
9
2.4.2 Project Area No. 2
9
2.5
Housing Production Plan
9
3.0 FIVE -YEAR PLAN FOR THE ELIMINATION OF BLIGHT
10
3.1
Background
10
3.2
Universal Commission Goals and Objectives
10
3.3
Project Area No. 1
11
3.3.1 Initial Conditions of Blight
11
3.4
Project Area No. 2
11
3.4.1 Initial Conditions of Blight
11
3.3.2 Commission Activities Over the Last Five Years
12
3.5
Five Year Goals, Objectives and Programs
13
4.0 HOUSING
PROGRAMS
16
4.1
Background
16
4.1.1 Twenty Percent Set -Aside Allocations
16
4.1.2 Policy Declaration Regarding Expenditure of Housing Funds in
Proportion to Unmet Need
16
4.1.3 Replacement Housing
17
4.1.4 Production Requirement
17
4.1.5 Applicability
18
4.2
Commission Housing Activities -Use of Housing Funds
19
4.2.1 Rosemead Housing Development Corporation
19
4.2.2 Housing Fund Deposits /Financial Plan Summary
19
4.3
Replacement Housing Plans
19
4.4 Housing Production Plan 20
4.4.1 Legal Requirements 20
4.4.2. Housing Units Anticipated to Be Developed Within Project Areas (2004-
2009) 20
4.4.3 Housing Units Anticipated to Be Developed Within Project Areas (Ten
Year Plan Term /Life of Redevelopment Plans) 21
4.5 Five Year Affordable Housing Implementation Plan 21
5.0 IMPLEMENTATION PLAN ADMINISTRATION 22
5.1 Implementation Plan Review 22
5.2 Implementation Plan Amendment 22
5.3 Financial Commitments Subject to Available Funds 22
5.4 Monitoring of Affordable Housing 23
5.5 Redevelopment Plans Control 23
6.0 FIVE -YEAR FINANCIAL PLAN
Appendix A — Five -Year Budget
24
ii
LIST OF TABLES
Table 1 Project Area Adoption Dates .... ...............................
Table 2 Capital Improvement Program (1999 - 2004) ..........
Table 3 Five -Year Capital Improvement Program ................
........................... a
.........................13
.........................14
IM
1.0 INTRODUCTION
1.1 Overview
At the conclusion of World War ll, an intense interest in the condition of cities was
evident throughout the United States. The federal government took the initial leadership
position in urban revitalization through the implementation of urban renewal programs in
the late 1940's. However, the power of federal programs, which provided enormous
sums of money to local communities to eradicate blighted conditions, began to diminish
as political philosophies of succeeding administrations and budgetary pressures at the
federal level forced a virtual abandonment of federally controlled "urban renewal" or
redevelopment programs.
Fortunately for California, the initial legislative framework of the Community
Redevelopment Law (California Health and Safety Code Sections 33000 et seq.,
hereinafter, the` "CRL ") was in place as early as 1952, and while the process has been
amended, refined, and in some ways restricted over the years, redevelopment exists as
a strong effective tool to deal with the eradication of blight and to improve housing and
employment conditions within local communities.
In many early California redevelopment projects, a major focus was upon demolition of
blighted residential buildings and development of new non - residential uses or high -
income residential uses to replace the demolished residential buildings. Those kinds of
projects worked to eliminate blighting conditions. However, those projects did little or
nothing to aid the mostly low- and moderate - income residents of the housing that was
demolished.
To address the problems that arose regarding the impact of redevelopment on low- and
moderate - income housing, over the past eighteen years the Legislature has enacted a
series of increasingly comprehensive revisions to the CRL which require redevelopment
agencies to undertake activities which will assist in the production of low- and moderate -
income housing.
Redevelopment activities are carried out under the provisions of the CRL. The principal
financing tool available under the CRL is tax increment financing. The Commission may
borrow money or sell debt instruments to finance improvements in a project area, and
repay these debts by capturing taxes generated from the incremental increase in the tax
base from new development occurring after final adoption of the redevelopment plan.
When all such indebtedness of the Commission is repaid, the tax increment thereafter
produced is paid to the taxing entities providing services to the project area. The second
element of the CRL that makes the provisions of the CRL unique is the process by which
the Commission is authorized to acquire privately owned property within a
redevelopment project area for redisposition to a private developer at a reduced price or
with other incentives. The private developer is then obligated to develop such property
in a manner that will eliminate blighting conditions and at the same time providing a profit
to the developer.
1.2 Background
The Rosemead Community Development Commission (the "Commission ") was created
to alleviate conditions of blight and stimulate economic development in the community.
As such, the Commission is the primary vehicle for ensuring the long -term economic
vitality of the City of Rosemead (the "City'). The Commission may by law undertake a
wide variety of activities and programs to promote economic development and
residential revitalization.
The focus of Commission activities and programs is in two redevelopment project areas
adopted since 1972. Although each project area has a redevelopment plan, it is
important to note that these plans do not dictate future redevelopment or revitalization
activities on a parcel -by- parcel basis. Rather, each redevelopment plan authorizes a
variety of tools that the Commission may employ to revitalize a project area following a
generalized blueprint for area land uses that must be consistent with the Rosemead
General Plan. Additionally, actual redevelopment activities and the timing often hinge on
the plans and resources of the many tenants, property owners, or business owners in a
project area, because the CRL affords these individuals certain rights and opportunities
for project area participation.
In accordance with the goals and objectives established for each project area, the
Commission may undertake a wide variety of activities aimed at stemming blight and
economic decline. Such activities include, but are not limited to, acquiring land for resale
to a redeveloper, providing financial assistance to existing owners or tenants for building
repairs, constructing needed public facilities and improvements, and developing
comprehensive economic development strategies that facilitate local investment and job
creation.
The Commission is also responsible for increasing, preserving, and improving the supply
of housing units for very low, low- and moderate - income individuals and families. The
Commission is required to set aside a portion of its property tax increment revenues for
this purpose.
1.3 Intent of the Implementation Plan
On October 6, 1993, Governor Pete Wilson signed into law the California Community
Redevelopment Law Reform Act of 1993 (hereinafter referred to as "AB 1290 "). AB
1290 was authored to address perceived abuses in redevelopment practice, and to
refocus the redevelopment process on statewide concerns of alleviating blight,
stimulating economic development, and providing affordable housing.
The legislature expressed concern that some redevelopment agencies were not
implementing programs to alleviate the blighting conditions that formed the basis for the
original project area adoption. Instead, these agencies were using the redevelopment
financing tool to construct new city halls, hotels, auto malls, etc. Consequently, AB 1290
contains a number of provisions that require the Commission to implement adopted
redevelopment plans in a manner that will address defined conditions of blight.
The CRL permits the preparation and adoption of a single implementation plan
applicable to one or more redevelopment project areas. Therefore, this Five -Year
Redevelopment Implementation Plan. 2005 -2009 (the "Implementation Plan ") addresses
implementation activities in the Commission's two project areas. For the sake of clarity
and completeness, project goals, activities, and blight elimination are addressed
together for the two project areas.
The Implementation Plan covers the Commission's activities from July 1, 2004 through
June 30, 2009, which is identical to the timeframe required for the Redevelopment
Agencies Financial Transactions Report and the HCD (California Department of Housing
2
and Community Development) Annual Report of Housing Activity of Community
Redevelopment Agencies. Consistency of the information contained in the
Implementation Plan and the above - described reports is important.
In addition, all section references are contained in the CRL unless otherwise stated.
1.4 Implementation Plan 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. This Implementation Plan represents the third implementation plan prepared by
the Commission. Between two and three years after adoption of the Implementation
Plan, the Commission must hold another noticed public hearing to review the
redevelopment plans and the Implementation Plan. Following adoption of the
Implementation Plan, this review is scheduled to take place during 2006 -07.
For redevelopment plans adopted on or after January 1, 1994, the first implementation
plan must be prepared and adopted prior to the end of the fifth year after which it was
adopted.
The Implementation Plan has been prepared to address each of these issues and is
organized into six sections as follows:
Section 1.0
Introduction
Section 2.0
Rosemead Community Development Commission
Section 3.0
Implementation Plan by Project Area
Section 4.0
Housing Programs
Section 5.0
Implementation Plan Administration
Section 6.0
Five -Year Financial Plan
1.4.1 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
Commission:
Redevelopment Requirements
• Specific goals and objectives for each project area.
• Specific programs, including potential projects for each project area.
• Estimated expenditures.
• Explanation of how the goals and objectives, programs, and expenditures will
eliminate blight within the project area.
Housing Requirements
• An explanation of how the goals, objectives, programs and expenditures will
implement the Low and Moderate Housing Set -Aside Fund (the "Housing Fund ")
and housing production requirements set forth in the redevelopment law. This
F
explanation must include a detailed annual implementation plan for each of the
five years covered by the Implementation Plan so that performance can be
measured.
• The amount of money available in the Housing Fund, the amount of money
expected to be deposited thereto during the next five years as well as plans for
using the annual deposits to the Housing Fund.
• The estimated number of units to be constructed, rehabilitated or price restricted
in each of the five years.
• An estimated number of units to be provided over the next five (5) and ten (10)
years to meet the Commission's 15 percent 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 there
placement housing the Commission will be required to produce (Health and
Safety Code Section 33413).
• The project area affordable housing production plan (AB 315 plan, required by
Health and Safety Code Section 33413(b)(4)).
1.4.2 AB 07 Requirements
On January 1, 2002, a new law, AB 637 (Lowenthal), went into effect in California that
created additional housing requirements on redevelopment agencies. This law was
enacted to eliminate the sunset for most of the provisions in AB 1290 which had been in
effect since 1993. AB 1290 contained a number of modifications to the inclusionary and
production requirements contained in Section 33413(b) of the Health and Safety Code.
In addition to eliminating the sunset for most of these provisions, AB 637 addressed
many issues raised by the Western Center on Law and Poverty during the last several
years. Under the Lowenthal Committee, the provisions of AB 637 were negotiated with
the California Redevelopment Association (CRA), the Western Center on Law and
Poverty, representatives of housing nonprofits and the Department of Housing and
Community Development (HCD).
In addition to the sunset inclusionary provisions of AB 1290, six additional issues were
addressed in AB 637. Those additional issues are:
Targeting Housing Funds (Section 33334.4)
• Replacement Housing (Section 33413 (a)) 100 percent to be affordable instead
of 75 percent.
• Replacement Housing (Section 33411.5) Commission must keep a list of those
displaced and who are to be given priority.
• Housing Funds and Infrastructure. (Section 33334.2(e)(2)) Establishes
regulations where Housing Funds may be used for onsite or offsite
improvements.
4
• Length of Covenants (Section 33334.3) 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
projects.
• Leverage (Section 33334.30)) Housing Fund monies are to be used only to the
extent other reasonable means of private or commercial financing is not
reasonably available.
The additional issue of targeting of Housing Funds is now required of the Commission.
Pursuant to Section 33334.4, this provision requires that over the duration of a housing
implementation plan (a ten -year period), the Commission is to spend monies from the
Housing Fund for low- and very low- income persons in at least the proportion of the total
housing need that these 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, the moneys in the Low and Moderate Income Housing Fund to
assist housing that is available to all persons regardless of age in at least the same
proportion as the population under age 65 years bears to the total population of the
community as reported in the most recent census of 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.
1.4.3 Senate Bill 701
SB 701 was Chaptered on September 22, 2002 and clarifies how AB 637 is to be
enacted. Per SB 701 the Implementation Plan will be prepared taking into account AB
637 requirements. Subsequently, the City will have ten years or until December 31,
2014 to comply with the legal requirements outlined in AB 637.
1.5 Purpose of the Implementation Plan
The first and foremost purpose of preparing this updated Implementation Plan is to fulfill
the Commission's legal requirements. The requirement for implementation plans reflects
a strong legislative concern that redevelopment activities should be connected with the
blight that justified adoption of the redevelopment plan. The Implementation Plan is one
of several requirements which now direct that redevelopment activities be linked to
elimination of blight.
For each of the Commission's two project areas, the Implementation Plan will identify the
following:
• The original project area goals and conditions of blight;
• The projects previously undertaken to address the conditions of blight;
• The goals /objectives for the project area during the next five years; and,
• The specific action programs for each of the next five years.
The Implementation Plan also includes a five -year budget, which identifies the proposed
program expenditures and the anticipated sources of funding.
The Implementation Plan also summarizes the Commission's housing programs for the
next five years identifying the Commission's prior housing accomplishments, its
outstanding legal obligations to produce affordable units, the financial status of the
5
Housing Fund, and a five -year housing strategy consistent with the City's Housing
Element.
1.6 Drafting Process /Relationship to Other Plans
The CRL requires that the Commission adopt the Implementation Plan after holding a
public hearing. Notice of the public hearing must be posted in at least four locations in
each project area for a period of at least three weeks ending at least ten days prior to the
hearing. In addition, notice of the public hearing must be published once a week for
three consecutive weeks in a newspaper of general circulation. The first notice must be
published at least 31 days prior to the hearing.
1.7 Definition of Blight
The presence of blight has always been the justification for the employment of
redevelopment authority. The definition of blight is therefore a critical element of the
initial analysis documenting the legal foundation for redevelopment.
The legal definition of "blight" has changed several times over the years. Although the
Commission adopted its plans under prior blight definitions, the most recent definition is
used in this Implementation Plan:
Health and Safety Code Sections 33030 and 33031 define a blighted area as one that...
... is predominantly urbanized and in which the combination of statutorily
enumerated conditions (identified below) is so prevalent and so
substantial that it causes a reduction or lack of proper utilization of an
area to the extent that it constitutes a serious physical and economic
burden on the community which cannot be expected to be reversed by
private and /or govern - mental action, without redevelopment.
The enumerated conditions of physical and economic blight are as follows:
Physical Blight
• Unsafe or unhealthy buildings that may result from code violations, dilapidation
and deterioration, defective design or physical construction, faulty or inadequate
utilities, or other similar factors.
• Conditions preventing or substantially hindering the effective use or capacity of
buildings or lots, which may be caused by substandard design, inadequate size
given present market conditions, lack of parking, or similar factors.
• Adjacent or nearby uses that are incompatible with each other and prevent
economic development of the area.
• The existence of subdivided lots in multiple ownership of irregular form and
shape and inadequate size for proper development.
Economic Blight
• Depreciated or stagnant property values or impaired investments, including, but
not necessarily limited to properties containing hazardous waste and requiring
redevelopment remediation authority.
• Abnormally high business vacancies, abnormally low lease rates, high turnover
rates, abandoned buildings, or excess vacant lots in an area developed for urban
use and served by utilities.
• Lack of necessary commercial facilities normally found in neighborhoods (e.g.
grocery stores, banks, and drug stores).
• Residential overcrowding that has led to public safety and welfare problems.
• An excess of bars, liquor stores, or other businesses catering exclusively to
adults that has led to public safety and welfare problems.
• A high crime rate constituting a serious threat to the public safety and welfare.
The Implementation Plan does not reopen the issue of blight in the project areas to
outside challenge, but it does require agencies to adopt goals, objectives and programs
that are reasonably linked to the elimination of blight, as it is currently defined.
1.8 Amendments to the Implementation Plan
The Implementation Plan is intended to be a flexible document, which defines the
Commission's strategy for addressing the community's blighting conditions. The
Implementation Plan does not identify every potential activity or expenditure of the
Commission during the next five years. Circumstances and market conditions change,
new projects are prioritized, and a variety of events cannot be foreseen at this point in
time.
The Implementation Plan sets forth a general strategy for the redevelopment of the
project areas and identifies a variety of programs, which are consistent with this strategy.
The Implementation Plan will be amended only if significant changes in direction are
contemplated.
The Commission is required to conduct a public review of the Implementation Plan
sometime between the second and third year after its adoption. Assuming that no major
changes in direction occur before that time, the Implementation Plan may be amended
at that time to incorporate any new directions the Commission may wish to pursue in its
mission to eliminate blight in the Project Areas.
7
2.0 ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION
2.1 History of the Commission
The Rosemead Redevelopment Agency (the "Agency') was established pursuant to the
CRL. The Agency was activated by City Ordinance in 1972. In 1972, the Agency
adopted its first project area. Over the past three decades a total of two project areas
have been approved. Together, these project areas cover approximately 714 acres of
the City, and include residential, commercial, industrial and public land uses. Table 1
indicates the adoption date for each project area. Figure 1 illustrates the. geographic
location of each project area.
Table 1
Project Area Adoption Dates
Project Area
Adoption Date
Number of Acres
Project Area No. 1
June 1972
511
Project Area No. 2
June 2000
203
Source: Rosemead Community Development Commission
2.2 Commission Organization
In January 2002, the City Council of the City of Rosemead (the "City Council ") adopted
Ordinance No. 821, declaring the need for a Community Development Commission (the
"Commission ") to function in the City. The Commission was created in order that the
City may have the option of the operating and governing its redevelopment agency, or its
redevelopment agency and its housing authority, under a single operating entity and
board. The Commission is also created and established for the purpose of exercising
any 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 is a public body, corporate and politic, existing by virtue of the
Health and Safety Code. Part 1.7, Section 34100. The Commission oversees the
operation and accountability for redevelopment activities.
The Commission is governed by a five - member board, which consists of the Mayor and
City Council. The Chairperson is the Mayor of the City and is appointed from its
members. The Vice Chairperson of the Commission Board is appointed from its
members. Daily administration of the Commission is provided by the City Manager who
serves as the Commission's Executive Director. The Assistant City Manager serves as
the Deputy Executive Director and the Commission also employs support staff to
undertake various tasks, projects and programs of the Commission.
2.3 . Rosemead Housing Development Corporation
On March 16, 1992, the Agency established the Rosemead Housing Development
Corporation (the "RHDC "), a local nonprofit housing development corporation organized
under the Section 501 C (3) of the Internal Revenue Code of 1986. The corporation was
established to develop, construct, finance and assist with low- and moderate - income
housing and to assist the Commission with redevelopment purposes related to housing.
2.4 Project Area Background
2.4.1 Project Area No. 1
The Redevelopment Plan for Rosemead Project Area No. 1 was originally adopted by
the Rosemead City Council on June 27, 1972 by Ordinance No. 340 and was
subsequently amended 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 on December 9, 1986. The second amendment to the Redevelopment
Plan was approved on December 20, 1994 by Ordinance 752 to bring it into conformity
with the requirements of Assembly Bill 1290. On January 22, 2002 by Ordinance 822,
the City Council approved the third amendment to the Plan for the purpose of extending
the duration of the Plan's effectiveness.
2.4.2 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.
2.5 Housing Production Plan
The housing production provisions of CRL Section 33413 apply to project areas adopted
after January 1, 1976. Therefore, only Project Area No. 2 is subject to the housing
production provisions of the law at this time.
3.0 FIVE -YEAR PLAN FOR THE ELIMINATION OF
BLIGHT
3.1 Background
This section of the Implementation Plan focuses on the Commission's non - housing
activities for the next five -year period and addresses:
• The specific goals and objectives of the Commission.
• The specific programs, including potential projects, proposed to be made during
the next five years.
• An explanation of how the goals, objectives, and projects will eliminate blight
within the project areas.
3.2 Universal Commission Goals and Objectives
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. These general redevelopment goals and objectives for the
two project areas have been combined and consolidated into a set of mutual goals and
objectives as follows:
1. 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 businesses to occupy.
2. 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.
3. Encourage private sector investment in the development of the project areas.
4. Provide adequate parcels so as to encourage new construction by private
enterprise, thereby providing the City with an improved economic base.
5. 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.
6. Provide new or improved public improvements and facilities, the absence or
inadequacy of which are impediments to development as contemplated in the
General Plan of the City.
7. 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.
8. Protect the health and general welfare of the project area residents by
rehabilitating and otherwise improving the supply of housing in the project areas.
9. Ensure the long -term viability of the commercial portions of the project areas by
encouraging commercial rehabilitation and planned new commercial
developments.
10
10. 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.
11. Provide new or improved public improvements and facilities, the absence or
inadequacy of which constitute an economic liability of the City and which cannot
be remedied by private or governmental action without redevelopment.
12. Establish development criteria and controls for the permitted uses within the
project area in accordance with modern and competitive development practices,
thus assuring the highest design standards and environmental quality.
13. Provide for relocation assistance and benefits to businesses which may be
displaced, in accordance with the provisions of CRL.
14. Make provision for housing as is required to satisfy the needs and desires of
various age, income, and ethnic groups of the community, maximizing
opportunity for individual choice.
15. Achieve a physical,environment reflecting a high level of concern for architectural
and urban design principles deemed important by the community.
16. 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.
3.3 Project Area No. 1
3.3.1 Initial Conditions of Blight
Project Area No. 1 encompasses an area of 511 acres. Project Area No. 1 is roughly
triangular with Garvey Avenue, San Gabriel Boulevard and Walnut Grove Avenue being
the major thoroughfares traversing the area. Project Area No. 1 is within a few miles of
the City's Civic Center and is located between the San Bernardino and Pomona
Freeways to the north and south, respectively.
The area contains a complete cross section of the City's existing land uses. At the time
of the adoption of the Redevelopment Plan, major sections were composed of
deteriorating commercial strips along Garvey Avenue and San Gabriel Boulevard,
industrial uses in the east Garvey area, large vacant areas surrounding the Southern
California Edison headquarters, several schoolyards, segments of the Alhambra wash,
Southern California Edison rights -of -way, and residential areas with some deterioration
present.
3.4 Project Area No. 2
3.4.1 Initial Conditions of Blight
Project Area No. 2 comprises 260 contiguous parcels on 203 acres or approximately
nine percent of the total area of the City. The Project Area generally follows the
alignment of Valley Boulevard and Rosemead Boulevard (SR -19) north of the 1 -10
Freeway. The principal north -south streets in Project Area No. 2 are Walnut Grove
Avenue, Muscatel Avenue, Rosemead Boulevard, Rio Hondo Avenue and Temple City
Boulevard. The principal east -west streets include Mission Drive, Valley Boulevard and
Marshall Street.
11
The existing land uses in the Project Area are predominately commercial with a small
percentage of land dedicated to industrial and institutional uses.
The following is a brief summary of the physical and economic conditions that exist in
the Project Area No 2 at the time of plan adoption:
1. Approximately 22 percent of the buildings exhibit deteriorated and dilapidated
conditions and 26 percent of the buildings require maintenance and repair.
2. Incompatibility with adjacent land uses in some residential areas limits the viable
use of buildings or lots per community standards;
3. Inadequate parking and on -site circulation problems;
4. Vacant or abandoned building and vacant lots;
5. Irregularly shaped parcels in multiple ownerships; and
6. Lower assessed value and lease rates than other areas of the City.
The average construction year for buildings in the Project Area is 1957 and do not
comply with modern health and safety codes. Due to the age of the buildings, an
estimated two - thirds of the existing structures have a potential for hazardous materials
such as lead -based paint and asbestos.
The review of the existing conditions within the Project Area highlights the minimal
efforts that have been made by certain owners to address deterioration. There are 22
commercial and industrial parcels with potential hazardous waste on site.
Probably the greatest evidence of economic blight is that improvement values in the
Project Area average about 36% less than those in areas of the City with structurally
sound buildings.
Underutilized land and vacant commercial and industrial properties are also indicators of
impaired investment and reduced property values. Most of the parcels along Valley
Boulevard are small and have separate owners, which create difficulties in the assembly
of private land for redevelopment.
3.3.2 Commission Activities Over the Last Five Years
This section examines the redevelopment activities that were initiated by the
Commission to eliminate blighting conditions over the last five years.
Commercial Rehabilitation Proiects
The Commission operates a commercial rehabilitation program that is funded both with
Community Development Block Grant funds and tax increment funds. This program is
implemented on a citywide basis not just in the Project Areas. Since the inception of this
program, the Commission has provided rehabilitation assistance totaling over $450,000
to businesses within the City.
Economic Development Activities
The Commission continues to pursue a variety of business attraction activities. The
Commission has sent representatives to the International Convention of Shopping
Centers (ICSC) to promote business sites within the City and Project Areas. The
Commission has also assisted businesses and retailers in processing plans with the City
and analyzing market needs.
12
The Commission has focused on funding capital improvements for both Project Areas.
Table 2 illustrates the capital improvement program funded by tax increment over the
last ten years.
Table 2
Capital Improvement Program (1999 - 2004)
No.
PROJECT TfhE
':19"12wo
( ACTUAL(
.i 2000101
(ACTUAL)
- i;DO1/02
i(ACTUAL)
. :i2gO 03 :�:::.
(ACTUAL)
20031e4
(ESTIMATE01
pkGUEGTTOTAL
1
Walnut Grove Avenue Beautification
$108.400
6,740
7,809
S107.331
2
San Gabriel Boulevard Beautification
201,287
180
40
152
394,142
3
Del Mar Avenue Beautification
42.206
6,901
35.303
4
Street Resurfacing
109,991
102,082
(7,909
5
Street b0fino m rovements
5,395
5,395
6
Concrete Re airs
71,254
71,254
7
SlurN Seal
3,872
61,504
65376
9
Delta Storm Drain
221,526
221 526
10
Kelbum Storm Drain
140,994
140,994
11
Walnut Grove eritl e/Alhambre Wash Retrofit
4,850
1
66.699
8,412
81
12
Hellman /Jadson Traffic SI nal
10,510
19,493
9,046
1
500
40
13
Walnut Grove Excess Callrans Parcel Purchase
3
8,880
14
Garvey Ave over Rio Hondo Bride
7,015
2,117
9.132
15
Ga,ey Sr. Housing T2@ic Sugnal
10.559
2.250
1.281
9,590
16
Safe Route to Schools Citywide School Si nin
25,149
6,036
31
17
Hellman Ave over Alhambra Wash Bride
5
21,365
81
30.000
138,167
18
City Halt Fountain Rehabilitation
109,676
2221
111,897
19
Traffic Signal Uninterru tible Power Supply
177,988
177
20
Virg inia Street Improvements
380
200
580
21
ADA Park Im rovements
98,000
98 000
23
Street Widening
6,901
6.901
TOTAL
:::':5829 q16
:ji $203572
:::::5303645
'i:i 5116,5 @5
?:`S28p Z00
i.. $1.733,918:
3.5 Five Year Goals, Objectives and Programs
The goals and objectives for the upcoming five years for Project Area No. 1 and Project
Area No. 2 are listed below.
Goal: To promote the economic revitalization and development opportunities in
the City.
Objective #1: Redevelop sites throughout both Project Areas into viable
commercial projects.
Actions:
(a) Work with property owners to develop property as defined in
the City's General Plan.
(b) Work with developers /property owners to assemble property
for appropriate development.
(c) Continue to market commercial sites to retailers.
(d) Assist in streamlining development approvals.
Objective #2: Assist in the economic revitalization of Valley Boulevard.
Actions:
(a) Implement code enforcement activities to eliminate Health &
Safety Code violations.
(b) As sites become available, examine the reuse opportunities.
(c) Encourage property owners to assemble properties for retail
developments.
(d) Target development, which generates tax revenues to the
City and /or amenities to the residents.
13
Goal: To conform to State law by updating the City's General Plan & Zoning
Code.
Objective #1: Continue the process to update General Plan.
Actions:
(a) Hire a consultant to begin preparation of the General Plan.
(b) Begin community discussions regarding proposed changes.
(c) Conduct study sessions with City Council regarding land use
changes and solicit input from City Council.
(d) Hold public hearings on adoption of General Plan Update.
(e) Adopt General Plan Update
Goal: To provide a broad range of public infrastructure and facility improvements
to induce private investment in the City.
Objective #1: Invest $3.7 million for a Public Works Capital Improvement
Program as shown in Table 3.
Table 3
Five -Year Capital Improvement Program
ROSEMEAD REDEVELOPMENT AGENCY
FUTURE FIVE -YEAR CAPITAL IMPROVEMENT PROGRAM
OCTOBER 2004 UPDATE
ryo
PROJECTTITLE
2004105
(BURG &TED)
2005108
7006107
2D07 /a8
:2008/09
PROJECT
TOTAL
1
Walnut Grove Avenue Beautification
0
2
San Gabriel Boulevard Beautification
1.128,000
1.128.000
3
Alhambra Wash Sewer Intercept
0
4
Street Resur(acin g
500,000
500 D00
1.000,000
5
Street LutnrnQ improvements
0
6
Goncrele Repairs
0
7
SlunY Seal
75,000
75
150
B
Hellman Ave over Alhamb2 Wash Bride
390,000
39,000
9
Vlrinia Street lmrovements
45
45000
10
Traffic Si nal Controller U rades
95,000
95
11
Columbia Storm Droin
i
1
0
12Slormwaler
BMPS NPDES
150,000
1 150
1
300,000
13
Traffic Signal lm rovements
1
1 125,0001
125
1
250
14
Gaove Avenue Resulaang
100,000
1 250,000
1
1
350.000
TOTAL
S1;B58,0o0
'.'S950,000
.;$1;100000
SO
EO
i:i 53J08000.
Objective #2: Assist in the improvement of the City's park facilities.
Action:
(a) Rosemead Park improvements
(b) Rosemead Community Recreation Center improvements
(c) Garvey Park improvements
(d) Sally Tanner Park improvements
(e) Garvey Community Center
(f) Jess Gonzalez Sports Complex
Objective #3: Prepare a Pavement Management Study
14
Objective #4: Assist in the improvement of the Rosemead Public Safety
Center at Zapopan Park
Objective #5: Contribute to the improvement of the National Pollutant
Discharge Elimination System
15
4.0 HOUSING PROGRAMS
4.1 Background
The Implementation Plan must describe the programs and projects the Commission will
undertake to fulfill its various housing obligations under the CRL. The Commission is
charged with three major housing obligations, which are discussed below.
4.1.1 Twenty Percent Set -Aside Allocations
The Commission must allocate twenty percent (20 %) of the gross tax increments to the
Housing Fund and spend these funds solely on projects to increase, improve, and
preserve the community's supply of low- and moderate - income housing. Units assisted
with Housing Funds prior to January 1, 2002 must remain affordable for the longest
feasible time, but not less than 10 years for owner occupied units and 15 years for renter
occupied units.
SB 211 was approved by the Legislature in 2001 requiring redevelopment agencies on
or after January 1, 2002 to require units assisted with Housing Funds to remain
affordable for the longest feasible time, but not less than 45 years for owner - occupied
units and not less than 55 years for rental units.
The Implementation Plan must include the following information regarding the
Commission's Housing Fund:
• The amount available in the housing fund and the estimated amounts to be
deposited during each of the next five years;
• A housing program with estimates of the number of new, rehabilitated or price
restricted units to be assisted during each of the five years and estimates of the
expenditures of monies from the Housing Fund during each of the five years;
A description of how the housing program will
expenditures of moneys
over a ten -year period
December 21, 2014.
in the Housing Fund fo r
with the first ten -yea
r implement the requirement for
various groups within the City
period ending on or before
4.1.2 Policy Declaration Regarding Expenditure of Housing Funds in
Proportion to Unmet Need
A new provision of the CRL, which applies to implementation plans adopted on or after
December 31, 2002, was approved by AB 637, which requires the Commission to
expend its Housing Funds in proportion to the unmet need for housing in the City.
Pursuant to Section 33334.4, this provision requires that over the duration of a housing
implementation plan (a ten -year period), the Commission is to spend monies from the
Housing Fund for low- and very low- income persons in at least the proportion of the total
housing need that these income groups represent, as determined for the City pursuant
to Section 65584 of the Government Code (Regional Housing Needs Assessment). In
addition, the Commission is to spend monies during this same period of time for housing
available to persons regardless of age in at least the same proportion as the population
under age 65 bears to the total population of the community as reported in the most
recent census.
1112
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.
Therefore, according to the Regional Housing Needs. Assessment ( "RHNA "), the housing
for very low- and low- income households represents 68 percent of the City's total
housing need. In addition, the Commission is to spend monies during this same period
of time for housing for persons regardless of age in at least the same proportion as the
population under age 65 bears to the total population of the community as reported in
the most recent census. Based on the 2000 U.S. Census, Rosemead's proportion is as
follows:
Total Population (2000): 53,505
Population under 65 years: 47,820 (89.3 %)
Under AB 637, after January 1, 2002, for every one dollar spent for senior housing
subsidy, nine dollars would be spent for housing available to persons under the age of
65.
4.1.3 Replacement Housing
When the Commission destroys dwelling units for low- and moderate - income persons, it
must replace the units within four years after demolition. The units must be replaced
with new construction or substantial rehabilitation similar in character and quality to the
units destroyed. Replacement units must remain affordable for the longest feasible time,
but not less than 55 years for rental units and 45 years for homeownership units.
If the Commission contemplates the destruction or removal of dwelling units, which are
required to be replaced under the CRL, then the Implementation Plan must identify
proposed development sites suitable to replace the demolished units.
4.1.4 Production Requirement
Prior to the time limit on the effectiveness of a redevelopment plan, at least 30 percent of
the new or substantially rehabilitated housing developed by the Commission must be
restricted for low- and moderate - income households, with 50 percent of the total
restricted units reserved for very low- income households.
Not less than 15 percent of the housing produced by public or private entities other than
the Commission within applicable project areas, must be restricted for low and
moderate - income households, with 40 percent 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 years at the
same income level as the original. After January 1, 2002, units must remain affordable
for the longest feasible time, but not less than 55 years for rental units and 45 years for
homeownership units.
The Commission is required to prepare a ten -year plan to comply with the housing
production obligations. The Commission addressed its ten -year obligations in the Five -
Year Redevelopment Implementation Plan 1994 -1999 adopted in 1994. This
17
Implementation Plan will address the Commission's obligations for housing production
for the next ten -year period.
The Implementation Plan must include the . following information regarding the
Commission's production obligations:
• The number of units of very low -, low- and moderate - income housing which have
been developed within one or more project areas 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 one or more 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 one or more 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.
4.1.5 Applicability
Housing Production
The housing production requirements of Section 33413 apply only to project areas
adopted after January 1, 1976, or to areas added to a project area after January 1, 1976.
This means that the Project Area No. 2 is subject to the production housing
requirements.
Project Area No. 1 is not subject to the provisions of Section 33413, with the exception
of providing replacement housing units for any units destroyed after January 1, 1996.
Expenditure of Housing Funds
Over the next ten years, the Commission is required to spend its Housing Funds as
follows:
• According to the RHNA, the housing for very low- and low- income households
represents 68 percent of the City's total housing need. Therefore, the
Commission must spend at least 68 percent of its Housing Funds on housing for
very low- and low- income households. Over the next 10 years, the remaining 32
percent of the Housing Funds may be spent on any income group that qualifies
under the CRL.
• Based upon the 2000 U.S. Census, 89.3 percent of the City population is under
the age of 65. Therefore, the Commission is required to spend 89.3 percent of
its Housing Funds on persons of any age and the remaining 10.7 percent may be
spent on any household group over the age of 65 during the same 10 -year
period.
f[•]
4.2 Commission Housing Activities -Use of Housing
Funds
This section examines the redevelopment activities initiated by the Commission to
increase housing opportunities and eliminate blighted conditions.
4.2.1 Rosemead Housing Development Corporation
RHDC is responsible for the oversight of two senior housing facilities and the operations
of the homeownership and rehabilitation assistance programs. The RHDC has assisted
the following projects using Housing Fund resources:
Garvey Avenue Senior Housing Project
The Commission has finished construction of the 72 unit low- income senior housing
project located on Garvey Avenue to be owned and operated by the Rosemead Housing
Development Corporation. Commission costs totaled approximately $7,006,000 in
construction costs and $450,000 in architecture and engineering costs paid from housing
set -aside funds over the last three years. Additionally, the Commission has agreed to
subsidize the annual shortfall in operating income, if any, to keep rents affordable. This
project marks the completion of the Commission's second goal.
Angelus Senior Housing Project
This project was completed prior to the adoption of the 1999 Implementation Plan;
however, the Commission has helped cover ground lease payments, management
costs, and administration expenses totaling approximately $90,000 per year. The
project has been fully occupied and rents averaging $250 per month for the one -
bedroom units have not been increased.
Housing Projects and Programs
The Commission operates a first -time homebuyer program that targets low- and
moderate - income households. This program offers first -time homebuyers up to $20,000
in down payment assistance in the form of a low- interest loan (interest rate is generally
set to 1 %0). Since the July 1, 1999, the Commission has granted eight loans for a total of
$145,205. The Commission does not currently offer any rehabilitation programs.
4.2.2 Housing Fund Deposits /Financial Plan Summary
The Commission deposits approximately $870,000 per year into its Housing Fund from
tax increment. As of June 30, 2004 the Housing Fund had a fund balance of $628,360.
Section 6.0 illustrates the five -year cashflow for the debt service and capital project
funds of the Housing Fund.
4.3 Replacement Housing Plans
In the event that dwelling units affordable by low- or moderate- income households are
destroyed or otherwise removed from the housing stock (e.g., converted to an office or a
retail shop) in any project area, then the Commission must replace these units in four
years with equivalent or better units. This requirement applies only if the development
project in question is subject to a written agreement with the Commission or if financial
19
assistance has been provided by the Commission. Unassisted private development in
the project area does not trigger this requirement.
This Implementation Plan does not anticipate any projects that will result in the
destruction or removal of dwelling units that will have to be replaced pursuant to the
CRL.
4.4 Housing Production Plan
4.4.1 Legal Requirements
The two basic production obligations are:
• At least 30 percent of all new or substantially rehabilitated dwelling units
developed by the Commission must be available to persons or families of low or
moderate income. Of these, 50 percent must be available to very low- income
households. This requirement would apply to housing developed directly by the
Commission, but not to housing projects developed by a private party under an
agreement with the Commission.
• At least 15 percent of all new or substantially rehabilitated dwelling units
developed by parties other than the Commission shall be available at affordable
costs to persons or families of low or moderate income. Of these, 40 percent
must be available at affordable costs to very low- income households.
These requirements apply in the aggregate, and not to each individual housing
development project. These low- and moderate - income dwelling units may be provided
outside the project area(s), but will only be counted on a two- for -one basis. In other
words, if the Commission has an inclusionary housing need of 10 units inside the project
area, then 20 units outside the project area would satisfy the overall requirement on a
two - for -one basis.
Prior to January 1, 2002, the housing must be deed restricted for the longest feasible
time but not less than the last date for redevelopment activities as provided for in the
redevelopment plan. If an owner occupied affordable unit is released due to an
acceleration event, the Commission has three years to replace the unit and continue to
count the unit toward the production requirement.
After January 1, 2002, AB 637 increases the minimum affordability period to 55 years for
rental housing units and 45 years for owner - occupied units, though owner - occupied units
may be sold if they are subject to an equity sharing agreement.
Within Project Area No. 2, only 0.4% of the property is designated in the City's General
Plan as residential. Therefore, over the life of the redevelopment plan, the Commission
expects that approximately six (6) new units may be developed in the project area.
4.4.2. Housing Units Anticipated to Be Developed Within Project Areas
(2004 -2009)
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 over lay
zone allows both residential and commercial development. A major factor in determining
the ultimate use of this property is determined by market conditions.
20
4.4.3 Housing Units Anticipated to Be Developed Within Project Areas
(Ten Year Plan Term /Life of Redevelopment Plans)
The Commission expects several mixed use development projects to be submitted to the
City. Density Bonus provisions may be requested by developers to maximize the
number of units. Each project will be analyzed for adequate design amenities, which will
ultimately determine the unit counts. Currently the density is a maximum of 14 dwelling
unit per acre. The anticipated number of units is difficult to determine at this time. A
major factor in determining the ultimate use of these properties is determined by market
conditions. Factors that determine the ultimate densities of projects include not only
zoning regulations, but the changing structure of State Density Bonus laws and other
macro economic conditions that drive real estate decisions in the private market.
4.5 Five Year Affordable Housing Implementation Plan
The programs contemplated for the next five years are summarized below. .
Garvey Avenue Senior Housing Project - The RHDC has agreed to subsidize the
annual shortfall in operating income, if any, to keep rents affordable. In addition,
the RHDC makes the ground lease payment in the amount of $72,000 per year
to the City.
Angelus Senior Housing Proiect —In order to keep the rents averaging $250 per
month for the one - bedroom units, the RHDC will continue to help cover ground
lease payments, management costs, and administration expenses totaling
approximately $90,000 per year.
Home Purchase Program — The RHDC will continue implementing its first -time
homebuyer's program. The budget for this program is $50,000.
21
5.0 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.
5.1 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 from July 1, 2004 through
June 30, 2009, which is identical to the timeframe required for the Redevelopment
Agencies Financial Transactions Report and the HCD (California Department of Housing
and Community Development) Annual Report of Housing Activity of Community
Redevelopment Agencies. Consistency of the information contained in the
Implementation Plan and the above - described reports 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 Commission 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 an efficient process.
Notice of the public hearing to review the redevelopment plans and Implementation Plan
shall be published pursuant 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.
5.2 Implementation Plan Amendment
Pursuant to California Redevelopment Law Section 33490, this Implementation Plan
may from time to time be amended after holding a public hearing on the proposed
amendment.
5.3 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, interest income, Commission bonds secured by tax increment
or other revenues, or any other legally available revenue source. Although the sources
of revenue utilized by the Commission are generally deemed to be reliable from year to
22
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.
In addition, with regard to the Commission's primary revenue source, tax increment
revenues, it must be noted that revenue flows are subject to diminution caused by
events not controlled by the Commission, which reduce the taxable value of land or
improvements in any of the project areas. Moreover, the formulas governing the amount
or percentage of tax increment revenues payable to the Commission may be subject to
legislative changes that directly or indirectly reduce the tax increment revenues available
to the Commission.
Due to the above - described uncertainties in Commission funding, the Projects described
herein and the funding amounts established to be available are subject to modification,
changes in priority, replacement with another project, or cancellation by the Commission.
5.4 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 CRL.
As part of this monitoring, the Commission will require owners or managers of the
affordable housing 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. The CRL states that the information
on income and family size that is required to be reported by the owner or manager must
be supplied by the tenant and shall be the only information on income or family size that
the 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 the affordable housing must be included in any reports required by law
to be submitted to the Department of Housing and Community Development ( "HCD ") or
the State Controller. In addition, Section 33418(c) finds that 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 with 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 CRL.
5.5 Redevelopment Plans Control
If there is a conflict, which exists 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.
23
6.0 FIVE -YEAR FINANCIAL PLAN
The Commission has an opportunity over the next five years to continue funding various
special projects and capital improvements. However, in the last two years of this
implementation plan cycle, the Commission will not have the funds to invest in any
capital improvement projects. Over the next five years, the Housing Fund will continue
its existing programs with an emphasis in assisting very low- and low- income
households.
The five -year budget for the Commission is located in Appendix A.
24
Appendix A
Appendix A
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NOT OFFICIAL UNTIL APPROVED
r? BY THE ROSEMEAD COMMUNITY
DEVELOPMENT CORPORATION
MINUTES OF THE REGULAR MEETING
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
DECEMBER 9, 2003
The regular meeting of the Rosemead Community Development Commission was called to order
by Chairman Vasquez at 7:00 p.m. in the conference room of City Hall, 8838 E. Valley
Boulevard, Rosemead, California.
The Pledge to the flag was led by Chairman Vasquez
The Invocation was delivered by Commissioner Taylor
ROLL CALL OF OFFICERS:
Present: Commissioners Alarcon, Taylor, Chairman Vasquez
Absent: Vice- Chairman Clark and Commissioner Imperial — absent excused
APPROVAL OF MINUTES: NOVEMBER 25, 2003 — REGULAR MEETING
MOTION BY COMMISSIONER TAYLOR, SECOND BY COMMISSIONER
ALARCON that the Commission approve the minutes of the regular meeting of November 25,
2003. Vote resulted:
Aye: Alarcon, Vasquez, Taylor
No: None
Absent: Clark, Imperial
The Chairman declared said motion duly carried and so ordered.
1. CDC RESOLUTION NO. 2003 -24 CLAIMS AND DEMANDS
The following Resolution was presented to the Agency for adoption:
RESOLUTION NO. 2003 -24 CLAIMS AND DEMANDS
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND
DEMANDS IN THE SUM OF $29,911.19 AND DEMANDS NO. 7179
THROUGH 7189
MOTION BY COMMISSIONER TAYLOR, SECOND BY COMMISSIONER
ALARCON that the Commission adopt Resolution No. 2003 -24. Vote resulted:
Aye:
Alarcon, Vasquez, Taylor
No:
None
Absent:
Clark, Imperial
r ,
The Chairman declared said motion duly carried and so ordered.
2. MATTERS FROM OFFICIALS - None
3. ORAL COMMUNICATIONS FROM THE AUDIENCE ON COMMUNITY
DEVELOPMENT COMMISSION MATTERS - None
4. ADJOURNMENT
There being no further action to be taken at this time, the meeting was adjourned at 7:04
p.m.
Respectfully submitted: APPROVED:
Commission Secretary
CHAIRMAN