2005-2009 Five Year Implimentation Plan

Implementation Plan 2005-2009 For the Merged Earthquake Recovery and Reconstruction Project and Eastside Business Improvement Project REDEVELOPMENT AGENCY OF THE CITY OF SANTA CRUZ ADOPTED BY RESOLUTION NO 1269 IMPLEMENTATION PLAN Table of Contents TABLE OF CONTENTS TABLES INTRODUCTION I PURPOSE OF IMPLEMENTATION PLAN II LEGISLATIVE REQUIREMENTS III PLAN PREPARATION AND ADOPTION PROCESS IV PLANNING PROCESS V PLANNING AND POLICY BASIS A Downtown Recovery Plan B General Plan C Eastside Business Area Improvement Plan D Beach Area Specific Plan E Mission Street Corridor Design Plan F Housing Element G Economic Development Strategy VI CONTENTS OF THE PLAN AGENCY ACCOMPLISHMENTS 2000-2004 I ECONOMIC DEVELOPMENT A Merged Project Area B Eastside Project Area 11 II AFFORDABLE HOUSING 12 ECONOMIC DEVELOPMENT 15 I INTRODUCTION 15 II ECONOMIC DEVELOPMENT FIVE YEAR GOALS AND OBJECTIVES 15 A Economic Development Goals General Plan/Merged Earthquake Recovery and Reconstruction Project 15 B Economic Development Goals Economic Development Strategy 17 C Merged Earthquake Recovery and Reconstruction Project Goals Downtown Recovery Plan 19 D Merged Earthquake Recovery and Reconstruction Project Goals Beach/South of Laurel 21 E Merged Earthquake Recovery and Reconstruction Project Goals Mission Street Corridor Design Plan 22 IMPLEMENTATION PLAN F G H Merged Earthquake Recovery and Reconstruction Project Goals Redevelopment Plan 23 Eastside Business Improvement Project Goals Eastside Business Area Improvement Plan 23 Eastside Business Improvement Project Goals Redevelopment Plan 24 III AGENCY PROGRAMS TO ADDRESS PROJECT CONDITIONS 24 A Downtown Recovery and Reconstruction 24 B Eastside Improvement Programs 26 C Beach and South of Laurel Programs 26 D Industrial Development and Technology Information Design and Development Programs 27 E Economic Development Program 27 F Infrastructure Improvement Projects 28 IV FINANCIAL MECHANISMS AND AGENCY OBLIGATIONS 30 A Redevelopment Financing Mechanism 30 B Merged Project 30 C Eastside Project 31 D Agency Resources 31 V ESTIMATED PROGRAM EXPENDITURES 34 VI SUMMARY 35 AFFORDABLE HOUSING 36 I INTRODUCTION 36 II HOUSING PROGRAMS AND HOUSING PRODUCTION PLAN 37 A Background 37 B Current City Programs 41 C Proposed Programs 41 III INCLUSIONARY HOUSING 53 A Definition/Background 53 B Merged Earthquake Recovery and Reconstruction Project – 1990-2004 54 IV REPLACEMENT HOUSING 68 A Introduction 68 B Legal Requirements .68 C Compliance with Health and Safety Code Section 334135 - Replacement Housing Plan 69 IMPLEMENTATION PLAN Tables Table I Summary of Relationship of Redevelopment Conditions of Blight and Agency Programs 29 Table II Five-Year Implementation Plan Estimated Program Expenditures January 1, 2005 – December 31, 2009 35 Table III Estimated Number of Affordable Units Five-Year Affordable Housing Plan Implementation Plan 2005-2014 52 Table IV Five-Year Affordable Housing Implementation Plan Estimated Number of Units Assisted by Income Category 2005-2014 53 Table V Inclusionary Requirement – New Residential (Single-Family & Multi-Family) Units Within Redevelopment Project Areas 62 Table VI Inclusionary Requirement –Rehabilitated Multi-Family Units Within Redevelopment Project Areas (Substantial Rehabilitation) 65 IMPLEMENTATION PLAN INTRODUCTION I PURPOSE OF IMPLEMENTATION PLAN The Implementation Plan is the Redevelopment Agency’s policy statement as to the type of projects and programs it intends to undertake over the five year period 2005-2009 It is prepared to assist the Agency in setting priorities and allocating resources during this period for redevelopment activities within its two redevelopment project areas, the Eastside Business Improvement (Eastside Project) and the Merged Earthquake Recovery and Reconstruction (Merged Project) Project Areas The Implementation Plan provides an explanation of how the goals, objectives, programs and expenditures for the next five years will promote revitalization, eliminate blight, foster economic development and develop affordable housing The Plan is dynamic in nature and, as time passes, adjustments can be made to reflect changing project conditions or other factors, which affect the five-year goals and objectives II LEGISLATIVE REQUIREMENTS AB 1290 and SB 732 were enacted by the California Legislature in 1993 and 1994 respectively, as a comprehensive reform of the California Redevelopment Law (CRL) and established regulations which required each redevelopment agency to adopt an Implementation Plan no later than December 31, 1994, and to update the plan every five years Implementation Plans are required to contain four elements: A description of the redevelopment agency’s goals and objectives, including housing related goals and objectives for the redevelopment project area A description of the programs and expenditures proposed for the next five years An explanation of how these goals, objectives, programs and expenditures will eliminate blight within the project area An explanation of how the housing-related goals, objectives, programs and expenditures, including the use of housing set-aside funds and an annual housing program, will implement State affordable housing requirements and replacement housing requirements III PLAN PREPARATION AND ADOPTION PROCESS The City of Santa Cruz Redevelopment Agency adopted its first Five-Year Implementation Plan on October 18, 1994 for the period January 1, 1995 through December 31, 1999 A mid-term review of the Implementation Plan was conducted by the Agency on October 14, 1997 and a public hearing was held on January 13, 1998 to consider new program opportunities for inclusion in the Implementation Plan A second Five-Year Implementation Plan was adopted on December 7, 1999 for the period January 1, 2000 through December 31, 2004, with its mid-term review public hearing held on April 8, 2003 The Implementation Plan has been prepared to include the Affordable Housing Plan requirements for redevelopment agencies enacted by AB 315 in 1992 and AB 637 in 2001 and to meet the requirements of the California Redevelopment Law per AB 1290, SB 372, AB 315 and AB 637 IMPLEMENTATION PLAN IV PLANNING PROCESS In order to receive public input into the programs and projects for updating the Implementation Plan and to make recommendations to the Redevelopment Agency on the re-adoption of the 19941999 Implementation Plan, the Redevelopment Agency conducted a series of meetings with community organizations including housing providers and neighborhood organizations and business groups V PLANNING AND POLICY BASIS During 2003 and 2004 the Agency and City participated in several comprehensive economic and housing planning processes Each of these processes was highly participatory and resulted in development of a wide range of housing and economic development recommendations The 2005-2009 Implementation Plan has incorporated these recommendations where appropriate and, as a result, a duplicative public participation process was not used in the development of the 2005-2009 Implementation Plan The documents which were developed as part of these planning processes include a new Housing Element to the General Plan and an Economic Development Strategy which will be used in the forthcoming General Plan Update Process A brief description of these planning documents and others used in the development of the previous Implementation Plans follows A Downtown Recovery Plan (1991) The Downtown Recovery Plan, adopted on September 10, 1991, was prepared through the Vision Santa Cruz process and provides a framework for public and private actions related to the rebuilding of downtown Santa Cruz after the 1989 Loma Prieta Earthquake As a specific plan, the Downtown Recovery Plan is limited to various policies and programs relating to the central commercial core of Santa Cruz The Downtown Recovery Plan has been extensively used by the Redevelopment Agency to assist it in guiding the activities of the Merged Earthquake Recovery and Reconstruction Project as it relates to downtown Santa Cruz B General Plan (1992) The General Plan was adopted in 1992 and establishes a broad range of economic development, housing, and land use policies, which are relevant to both the Eastside Business Improvement Project and Merged Earthquake Redevelopment Project Where appropriate, General Plan goals have been included in the Implementation Plan C Eastside Business Area Improvement Plan (1996) The Eastside Business Area Improvement Plan was adopted by the City Council on January 23, 1996 A citizen’s committee comprised of Eastside businesses, property owners and adjacent neighborhood residents prepared the document The Plan establishes a series of goals and programs to ensure the continued vitality of the Eastside business area The Plan was developed specifically to provide the policy basis for the Eastside business area redevelopment project and, as such, has been extensively relied upon in preparation of the Implementation Plan as it relates to the Eastside business area D Beach Area Specific Plan (1998) The Beach Area Specific Plan was adopted as part of the City's General Plan in 1980 This Plan was amended on October 23, 1998 Both Plans set forth a number of goals, policies and programs to bring about the economic and social improvement of the beach area Since adoption of the 1980 Beach Area Specific Plan, the City has implemented a large number of the recommended programs of the Beach Area Plan A number of new programs and policies in this plan will be addressed in the 2005-2009 Implementation Plan for long-term Beach Area improvement IMPLEMENTATION PLAN E Mission Street Corridor Design Plan (2002) This Plan was prepared to complement the Mission Street widening and undergrounding projects and provide design guidelines for new development which will occur following these projects The Plan was prepared as part of the work of the Mission Street Widening Task Force and was part of a citizen participation process F Housing Element (2003) The City’s Housing Element as approved by the Department of Housing and Community Development in 2003 identifies the City’s housing needs and includes various goals, policies, programs and objectives to further the development, improvement and preservation of housing The Implementation Plan has incorporated those aspects of the Housing Element which set goals and objectives for affordable housing G Economic Development Strategy (2004) This report profiles the City’s economy and its relationship to City fiscal conditions The report contains various recommendations to address both near-term and longer-term economic development issues within the City To initiate the process of implementing these recommendations, the Implementation Plan contains various programs and projects which were recommended in the Strategy and would benefit the Agency’s two project areas VI CONTENTS OF THE PLAN The Implementation Plan consists of the following sections:     Introduction Accomplishments during the past five years Economic Development Affordable Housing IMPLEMENTATION PLAN IMPLEMENTATION PLAN AGENCY ACCOMPLISHMENTS 2000-2004 I ECONOMIC DEVELOPMENT This section provides brief descriptions of a few of the public and private improvements supported or implemented by the Redevelopment Agency during the past five years (2000-2004) These projects cover a wide range of developments from commercial development to affordable housing A Merged Project Area Theatre Del Mar - The Agency purchased the closed Theatre Del Mar in June of 2001 from United Artist Theatre Group The Redevelopment Agency then leased the theatre to a local partnership consisting of George Ow and Barry Swenson Builder, local developers/property owners who took the project on as a community service The Swenson/Ow Partnership in turn subleased the theatre to the owners of the popular art cinema house, the Nickelodeon Theatre, located downtown on Lincoln Street The Redevelopment Agency/City, Swenson/Ow, and Nickelodeon Theatre shared in the responsibilities and costs of remodeling the old theatre The Theatre Del Mar was opened to the public in February 2002 and a Gala Grand Opening was held on March 2, 2002 featuring a screening of the film China Clipper, the first film shown at the theatre in 1936 The film's lead actress, Beverly Roberts, was on hand for the festivities Theatre Del Mar 1936 Theatre Del Mar Reopened 2002 Mission Street Widening Project - This project encompassed the widening of State Route #1/Mission Street from Chestnut to Swift Streets and widened the road by creating two lanes in each direction between Chestnut and Swift Streets and left-turn lanes at signalized intersections Construction began in the spring of 2000 and was completed during the spring of 2002 As part of this major construction project the Agency staffed a Public Information Center and a 24-hour hot line providing project activity information to the public, coordinating community issues with construction crews and working with Mission Street businesses to mitigate the construction impacts The Agency is also providing financial support for the undergrounding phase of this project and was well as coordinating the planting of streets along Mission Street Downtown Alley Projects - In 1994 the Redevelopment Agency began the implementation of the Downtown Alley Walk Plan with the drafting of the Alley Walk Concept Plan It was recognized in the plan that the downtown alleys played a significant role for businesses and pedestrians in the downtown In addition, the alleys in Santa Cruz have a rich history During the last ten years there have been a series of alley projects which have resulted in transforming the downtown alley system into a web of new commercial store fronts and pleasant spaces IMPLEMENTATION PLAN During 2000-2004 the Agency completed three alley projects Birch Lane, Fraser Lewis Lane and Maple Alley University Town Center - This project was completed in 2000 and represented a major new commercial development to anchor the Pacific/Cathcart section of downtown The project contains commercial uses on the ground floor and the offices of the University California Extension on the upper floors The Agency sold the project developer an adjacent Agency owned lot to assist in assembling a site for the University Town Center Storefront Improvement Program - This program began in 1994 as a pilot program and has since been expanded to provide assistance to businesses in both the Merged and Eastside Projects and particularly in those areas where major public improvement projects were being completed i.e Mission Street and River Street Since its inception it has assisted over 250 businesses in both project areas The program provides exterior design advice to businesses and commercial property owners and grant funding to implement the new painting and other faỗade improvements This program has had a marked effect in the upgrading of storefront appearances along Mission and River Streets, in the Downtown, Seabright/Murray and Ocean/Barson areas and along River and Coral Streets During the 2000-2004 period, 40 storefront projects were completed in these areas with 20 projects now in progress Graffiti Abatement - The Agency began sponsoring the Graffiti Free Santa Cruz in 2002 administered by the Santa Cruz Volunteer Center The mission of Graffiti Free Santa Cruz is, “To maintain the natural beauty of our city by preventing and removing graffiti through community involvement, eradication, education and enforcement.” The Agency administers a 24 hour hot line through which Santa Cruz residents can report graffiti attacks to support this mission Agency and Volunteer Center staff make every effort to remove graffiti within 48 hours and gang graffiti in 24 hours Over 146 Santa Cruz residents participate in various graffiti abatement programs through this program Business Assistance - During the 2000-2004 period the Agency continued a wide variety of business assistance activities including the publication of a downtown promotion brochure “Experience Downtown Santa Cruz”; maintenance of two bi-monthly space available flyers for commercial/industrial and downtown office space, and an interactive web page at www.ci.santa-cruz.ca.us/ra B Eastside Project Area Rio Theater - The historic Rio Theater, which is one of the significant landmarks on the Eastside closed to the public in 1999 and there was fear in the community that 10 IMPLEMENTATION PLAN Inclusionary Requirements for Rehabilitated Units a Rehabilitated Units Developed or Proposed by Entities Other Than Agency As described above, under CRL at least 15% of all substantially rehabilitated dwelling units developed within a Project Area shall be available at affordable housing cost and 40% of those to persons of very low income Substantially rehabilitated dwelling units are defined as "substantially rehabilitated multi-family rental dwelling units with three or more units or substantially rehabilitated, with Agency assistance, single-family dwelling units with one or two units." The Agency has not assisted in the substantial rehabilitation of single-family dwelling units during the life of the plans, nor has the Agency solely rehabilitated multi-family housing In addition, please note that, except for two (2) units, all of the substantially rehabilitated multifamily housing units in the area utilized some form of public assistance City records not show privately-funded, substantially rehabilitated units due to financial constraints Therefore, the following calculations focus upon multifamily units rehabilitated by entities other than the Agency and, in several cases, assisted by the Agency Substantially Rehabilitated Residential Units No Units Units Rehabilitated in North Mall Project (1984-1990) Units Rehabilitated in San Lorenzo Project (1986-1990) 120 Units Rehabilitated 1990 through 2004 (See Table HP-VI for description.) 291 Total Rehabilitated Residential Units in Project Area 411 57 IMPLEMENTATION PLAN The following table calculates the inclusionary requirement for the Project Area pursuant to Section 33413(b) Substantially Rehabilitated Units in Project Area No Units Total No of Rehab Res units in the Project Area 411 X 15% = the number of units for affordable housing 62 Very Low-income units (40% of the 15%) 25 Total Low- and moderate-income Substantially Rehab Units in the area 411 Total Affordable Rehabilitated units required Summary of inclusionary requirement for Project Areas per 333413(b): Inclusionary Requirement Rehabilitated Residential Units for Substantially Very Low Inclusionary units rehabilitated 1984-1990 Low Total 120 120 Inclusionary units rehabilitated 1990-2004 92 199 291 Total units substantially rehabilitated 92 319 411 Units required to meet 15% inclusionary requirement 25 37 62 Additional Units needed through 2009 0 Credit of Units to meet Inclusionary Requirements 67 282 349 b Number of Rehabilitated Dwelling Units Developed or to be Developed Solely by Agency The Agency has not solely substantially rehabilitated any units in the Project Area or City The Agency will not directly cause the substantial rehabilitation of any moderate/low-income or very low-income units during the term of the Implementation Plan c Estimate of Future Rehabilitated Units Section 33490(a)(2)(B) requires the Agency to estimate the number of substantially rehabilitated residential units and estimate the number of units for very low-, low- and moderate-income households in order to meet the inclusionary requirements Section 33490(a)(2)(B) also requires an estimate of the number of Agency-provided substantially rehabilitated units The Merged Project Area extends to 2031 and therefore covers a longer time period than the City's current General Plan beginning in 1990 and extending to the year 2005 Therefore, the Housing Element has been used for estimation purposes The Agency will adopt a new implementation plan in 2009 and may then address the future General Plan's goals in order to meet the requirements of 33413(b) 58 IMPLEMENTATION PLAN The General Plan estimates 626 residential units in the Merged Project Area require significant rehabilitation The substantial rehabilitation of 291 units has occurred within the Merged Project Area from 1990-2004 Of these, 199 are for low-income and 92 are for very lowincome households As a result the inclusionary requirements for substantially rehabilitated units are met for the next five and ten year monitoring periods The City's housing rehabilitation program has focused on these key properties; however lack of funding from the State and Federal governments has slowed the pace of this program in the last several years Eastside Business Improvement Project 1990-2004 Inclusionary Requirements for New Residential Units a New Residential Units Developed or Proposed by Entities Other Than Agency The residentially zoned property comprises a very small portion of the Eastside Business Improvement Project Area There are only 126 residential units in the entire Project Area Two residential units have been developed in the Eastside Redevelopment Area since the project area's inception in 1990 In 2003, a 15 unit SRO was constructed with inclusionary low-income units and a 37 unit very low-income seniors project was developed in 2004 As a result, the inclusionary housing in the Eastside Project Area is in excess of the inclusionary requirement of CRL Section 33413(b) by 31 low-income units and 34 very low-income units b Number of New Dwelling Units Developed or to be Developed Solely by Agency The Agency assisted in the development of a 37-unit senior affordable housing project in 2004 No other Agency assisted projects are in the planning stages in this project area Since less than 2% of the Project Area is residentially zoned, opportunities for housing projects are by nature, very limited Therefore, if a project is proposed on a residentially zoned property, the Agency will identify opportunities where it can assist or otherwise increase the percentage of low- or moderate-income housing provided in any future project c Estimate of Future New Units Section 33490(a)(2)(B) requires the Agency to estimate new units of very low-, low- and moderate-income households to be developed within the Project Area in order to meet the inclusionary requirements for non-agency developed housing in the next 10 years and life of the Plan The Eastside Project Area extends to 2031 and therefore covers a longer time period than the City's current General Plan which covers the period 1990 to 2005 The 2010 Implementation Plan will utilize the new General Plan’s goals in order to meet the requirements of 33413(b) At present, there are no projects specifically designed for low- and moderate-income housing in the Project Area and there are no residentially zoned vacant sites In addition there have been no requests for the rezoning of commercially zoned property If projects are proposed, the Agency will work cooperatively with developers to assist in ways to increase housing opportunities and to meet the inclusionary requirements 59 IMPLEMENTATION PLAN d City Inclusionary Ordinance/Compliance (1) Zoning Ordinance/Affordable Housing Requirement The City of Santa Cruz zoning ordinance includes an inclusionary housing provision which requires that developers of multi-residential housing of five or more units, set aside 15% of those units as affordable housing to be occupied by persons of low and moderate income The ordinance contains provisions for the combination of affordable and market rate projects, transfer of credits, and investoniums (a concept that allows the deferment of inclusionary requirements for seven to ten years if units are rentals) The inclusionary requirements also apply to land subdivisions An in-lieu fee option is available to subdividers who are creating only lots rather than creating lots and buildings The fee is based on a formula that takes into account the appraised value of lots The fees then go into an affordable housing fund The density bonus provisions of the Inclusionary Housing Ordinance provide for increases of up to 25% in the number of units over the otherwise allowable residential density All units granted under the density bonus provisions are required to be affordable to low-income households (2) Additional Compliance Mechanisms The City of Santa Cruz has adopted a variety of other regulations and programs to assist in the production of low- and moderate-income housing These programs include the Accessory Unit Ordinance, Fee Forgiveness for Affordable Housing Projects, Parking Requirement Reductions for Senior Housing, a Density Overlay Program and priority processing for affordable housing projects Additionally, the City has participated in the Mortgage Credit Certificate Program to assist moderate-income households and has funded construction of a Homeless Shelter Inclusionary Requirements for Rehabilitated Units a Rehabilitated Units Developed or Proposed by Entities Other Than Agency As described in the introduction, at least 15% of all substantially rehabilitated dwelling units developed within a Project Area shall be available at affordable housing cost and 40% of those to persons of very low income Substantially rehabilitated dwelling units are defined as "substantially rehabilitated multi-family rented dwelling units with three or more units or substantially rehabilitated, with agency assistance, single-family dwelling units with one or two units.” From the time the Eastside Project Area was adopted, no residential units were significantly rehabilitated b Number of Rehabilitated Dwelling Units Developed or to be Developed Solely by Agency The Agency has not assisted single-family dwelling units during the life of the Plan, nor has the Agency solely rehabilitated multifamily housing in the Eastside Project Area c Estimate of Future Rehabilitated Units Section 33490(a)(2)(B) requires the Agency to estimate the number of substantially rehabilitated residential units and estimate the number of units for very low-, low-, and moderate-income 60 IMPLEMENTATION PLAN households in order to meet the inclusionary requirements At this time the Project Area does not require the Agency to act to ensure the 15% requirements as there has been no significant rehabilitation in the area It is possible that of the 126 units in the Project Area, 30% of the units could use rehabilitation of some kind It is also estimated that the units will not be rehabilitated without Agency assistance This area is not in a General Plan Target Area However, the City Housing Rehabilitation Program has made several outreach efforts in the past to identify residential property owners in the Eastside Project Area to consider possible rehabilitation of their housing units To date these efforts have not received a positive response from property owners in this area Due to the commercial zoning of the area, many owners consider their residential units transitional uses to future commercial reuse of the property 61 IMPLEMENTATION PLAN Table V Inclusionary Requirement New Residential (Single-Family & Multi-Family) Units Within Redevelopment Project Areas Project/Address Type Year Agreement Expires Affordability Sale/ Rent Very Low Low Mod # of Units Projects completed 1984 through September 1990 1986 1987 Estimated SFD N/A 303 Potrero MFD CIO: 2017 16 Estimated SFD N/A MFD CIO: 10 SFD N/A MFD N/A SFD 2019 SFD N/A Estimated MFD CIO:2019 MFD N/A SFD 2020 Estimated 1988 Estimated Estimated 747 Chestnut St 1989 1990 Estimated Estimated 226 Mora St Rent 1 Rent Subtotal 1984-1990 57 Projects completed October 1990 through October 2004 * 1991 313 Spruce St SFD CIO:2021 Rent 314 Spruce St MFD N/A 218 Ocean Ave SFD N/A 610 Pacific Ave MFD N/A 112 Sycamore SFD N/A 125 Chestnut St SFD CIO:2021 111 Myrtle SFD N/A 1 62 IMPLEMENTATION PLAN Affordability # of Units Project/Address Type Year Agreement Expires 1992 Neary Family Co-op MFD In Perpetuity 95 Arbor Cove Senior Project MFD In Perpetuity 35 La Playa 304 RiversideLeibrandt MFD In Perpetuity Rent 84 308 River St MFD In Perpetuity Sale 36 227 Blackburn St DUP None 137 Campbell SFD None El Centro 1110 Pacific Ave MFD 2023 45 Gularte Building 1114 Pacific Ave MFD Red Cross 2023 14 St George 1520 Pacific Ave MFD 2007 235 Blackburn St SFD None 333 Ocean Ave MFD None 204 Center St SFD None 229 Felix St SFD None 1529 Pacific Ave MFD None 525 Walnut Ave SFD None 115 Blackburn St DUP None 224 Potrero St DUP None 316 Myrtle St SFD In Perpetuity 1 307 Barson St SFD In Perpetuity 1 120-124 Walti St MFD In Perpetuity 132-134 Walti St MFD In Perpetuity 1 125 Sycamore St MFD In Perpetuity Rent 60 60 111 Coral St MFD In Perpetuity Rent 8 116 Everson Dr CONDO Resale or 30 yrs Sale 84 122 Everson Dr CONDO Resale or 30 yrs Sale 150 Everson Dr CONDO Resale or 30 yrs Sale 162 Everson Dr CONDO Resale or 30 yrs Sale 1 1993 1994 1996 1997 1998 1999 Sale/ Rent Very Low Rent Rent 184 Everson Dr CONDO Resale or 30 yrs 190 Everson Dr CONDO Resale or 30 yrs Sale Year Affordability 63 Mod Sale Agreement Low # of IMPLEMENTATION PLAN Project/Address Type Expires Sale/ Rent 206 Everson Dr CONDO Resale or 30 yrs Sale 212 Everson Dr CONDO Resale or 30 yrs Sale 304 Everson Dr CONDO Resale or 30 yrs Sale 316 Everson Dr CONDO Resale or 30 yrs Sale 324 Everson Dr CONDO Resale or 30 yrs Sale 364 Everson Dr CONDO Resale or 30 yrs Sale 330 Swift St ACDU In Perpetuity Rent 140 Vernon St SRO In Perpetuity Rent 511 Swift St MFD 2014 Rent 106 Campbell MFD In Perpetuity Rent 2000 245 Main St MFD N/A Rent 2001 205 Maple Ave MFD In Perpetuity Rent 11 155 Chestnut Ave MFD RDA Rent 219 Fern St MFD In Perpetuity Rent 401 Pacific Ave MFD In Perpetuity Rent 11 71 905 Third St MFD N/A Rent 323 Chestnut Ave SFD N/A Sale 136 Leibrandt Ave MFD RDA Rent 39 1010 Pacific Avenue MFD RDA Rent 22 1280 Shaffer Rd MFD RDA Rent 21 1111 River St MFD In Perpetuity Rent 100 Ocean St SFD N/A Sale 204 Second St SFD N/A Sale 2002 2003 Subtotal 1990-2004 2) 3) 4) Low Mod Units 1 29 7 96 48 21 113 68 206 1019 TOTAL 1984-2004 1) Very Low 1076 The North Mall Project (1984-1990) did not include residential land The following units are for the San Lorenzo Project (1986-1990) and are estimated from the annual building activity/inspection reports as the actual records for projects during that time were lost as a result of the Loma Prieta Earthquake For calculation purposes, it is assumed that all units constructed at this time over five units are subject to the City's Inclusionary Housing Requirements Two projects not included since 1990 were reconstructions of earlier affordable housing units The Saint George had 120 units and built 124 units (net of 4) and the Gularte building had an estimated 10 units and built 24 (net of 14) The net increases are included as new units in the analysis The Downtown Villa project is a rehabilitation project of an existing five unit project that was market rate and is now five very lowincome units As this is an increase in affordable units, these five units, are counted as net new units (3 at 60% and at 80%) CIO = City's Inclusionary Ordinance (30 years), RDA=Redevelopment Agency, VL Very Low Income, L=Low Income, MOD=Moderate Income SF= Single Family House, MFD=Multi-Family Residential, ACDU=Accessory Dwelling Unit, Condo=Condominium * Project dates are identified either from Building Division's issuance of permit date or Planning record completion dates 64 IMPLEMENTATION PLAN Table VI Inclusionary Requirement Rehabilitated Multi-Family Units within Redevelopment Project Areas* (Substantial Rehabilitation) Street Type Year Agreement Expires Affordability Very Low Low # of Units Projects completed 1984 through September 1990 1986 150 Canfield MFD MR: 2001 9 230 Laurel St MFD MR: 2001 8 120 San Lorenzo Blvd MFD MR: 2001 17 17 125 Rigg St MFD CDBG: 2016 21 21 123 Bixby St MFD MR: 2001 9 526 California St MFD CDBG: 2016 8 72 72 1986 Total 1987 431 Locust St MFD CDBG: 2017 4 328 Ocean St MFD MR: 2002 13 13 Palomar Inn 1344 Pacific Ave MFD MR: 2002 (84) 1987 Total (84) 17 17 2 2 1988 206 Locust St MFD CDBG: 2018 1988 Total 1989 Washburn St MFD CDBG: 2019 7 Spruce St MFD CDBG: 2019 22 22 29 29 120 120 1989 Total 1990 - No projects were reported in 1990 Subtotal 1986-1990 65 IMPLEMENTATION PLAN Projects completed October 1990 through September 2004 1991 Washington Street Coop 333 Washington MFD In Perpetuity Palomar Inn 1344 Pacific Ave MFD CALDAP: 2010 80 Front St MFD In Perpetuity Total 1991 97 97 13 14 13 104 118 5 1992 204/212 Kaye St MFD Unknown Total 1992 1993 Shoreline Apts 701 Beach St MFD MR: 2009 45 45 120 Trinity St MFD UHRP: 2023 River's Edge 203 Laurel St Ext MFD MR: 2008 515 Third St MFD UHRP: 2008 12 12 417 Second St MFD UHRP: 2008 8 204 Second St MFD HOME: Unknown 51 51 82 144 11 17 Total 1993 62 11 17 1994 129 Raymond St MFD MR: 2009 3 Heiner House 619 Center St MFD In Perpetuity 5 Downtown Villas 612 Washington St MFD In Perpetuity Total 1994 5 13 1997 307 Barson St SFD UHRP: Unknown 1 1312 Laurel St SFD UHRP: Unknown 1 UHRP: Unknown 1 3 1 244 Walnut Ave SFD Total 1997 1998 203 Blackburn St SFD HOME: 2009 1999-2001 – No Projects Reported 2002 505 Leibrandt Ave 66 IMPLEMENTATION PLAN 2003 143 Bixby St 1) 2) 3) 4) 5) Subtotal September 1990-2004 92 199 291 TOTAL 1984-2004 92 319 411 The North Mall Project Area begun in 1984 did not contain residential units, thus the following units were rehabilitated in the San Lorenzo River Project Area The Palomar was substantially rehabilitated prior to the Loma Prieta earthquake In order to not count this project twice, the 1987 number of units is noted, but not counted The Santa Cruz Community Housing Corporation's projects will remain affordable on the average of 60 years, and 30 years at a minimum and in Perpetuity at the maximum As these unit's affordability requirements extend beyond the 2015 term of the Redevelopment Project Area, they are described as in Perpetuity All 97 units of the Palomar Inn are affordable per the CALDAP loan and will remain so for 20 years In addition, of the units are Section units and 25 of the units are Mod-Rehab units It is estimated that three of the eight units rehabilitated qualify as substantially rehabilitated MR = CDBG = CALDAP = UHRP = HOME = * Mod/Rehab (15 year) Community Development Block Grant (30 year) California Disaster Assistance Program (20 year) Urban Housing Rehabilitation Program Federal HOME funds Information contained in this report represents the best available data at the time of report and will be updated upon City review of loan data 67 IMPLEMENTATION PLAN IV REPLACEMENT HOUSING A Introduction Section 33413.5 requires that the Implementation Plan address the need for replacement housing in the Project Areas The Agency demolished one vacant residential house on Birch Lane in 1996 and 48 units (some units were illegal conversions) in 2002-03 to allow construction of the 48 unit Nueva Vista replacement housing project In terms of the Nueva Vista Project twenty-three households were temporarily relocated during the construction of the new project The remaining twenty-five households consisting of 126 individuals received relocation payments electing to relocate themselves and not return to the project The Sycamore Housing Development was designated as the replacement housing project for the Birch Lane house There are no current plans for further demolitions in either the Merged Project or Eastside Project Areas If demolition is included in any future projects replacement housing will be one of the factors considered in the project planning The City Zoning Ordinance requires the identification of replacement housing, prior to demolition B Legal Requirements Section 33413(a) — The Replacement Rule Section 33413(a) of the Health and Safety Code requires that whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a redevelopment project subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall, within four years of the removal of the dwelling units, rehabilitate, develop, or construct an equal number of replacement dwelling units For units removed after September 1, 1989, California law requires that 75 percent of the replacement units be affordable to the same income groups that occupied the units before they were removed Section 33413.5 — The Replacement Requirement for Redevelopment Projects Section 33413.5 of the Health and Safety Code requires each redevelopment agency to adopt by resolution a replacement housing plan indicating how the agency will comply with the requirements of the replacement rule as provided for in Section 33413(a) The replacement plan shall include: 1) location of replacement housing; 2) means of financing replacement housing; 3) compliance with Article XXXIV; 4) number of affordable units planned for construction or rehabilitation; and 5) the timetable for meeting replacement housing objectives Section 33334.5 — Replacement Housing Requirements for Redevelopment Plans 68 IMPLEMENTATION PLAN Section 33334.5 of the Health and Safety Code requires that every redevelopment plan adopted or amended to expand the Project Area after January 1, 1977, shall contain a provision regarding replacement housing requirements pursuant to Sections 33413 and 33413.4 of the Health and Safety Code Irrespective of the January 1, 1977 implementation date expressed in Section 33334.5, Section 33413(d) imposes the replacement and inclusionary rules on any redevelopment plan adopted on or after January 1, 1976 All of Santa Cruz's current redevelopment plans were adopted after January 1, 1976 and include provisions addressing replacement housing requirements C Compliance with Health and Safety Code Section 33413.5 - Replacement Housing Plan General Location of Replacement Housing Replacement housing will be located in the Merged Project Area within the South of Laurel/Beach Area, along the San Lorenzo River and in-fill projects throughout the Project Area All of the replacement units developed or caused to be developed by the Agency or its designated developer will be developed in the same income categories as the replaced housing, so that the replacement units are affordable to the same income level of households as the destroyed or removed units It will be the Agency's intention for most of the replacement units to be developed in conjunction with major residential and/or mixed-use projects In addition, affordable housing units will also be included in other housing development opportunities as appropriate throughout the City Means of Financing Replacement Units The Agency will use its 25% housing set-aside funds in working with private profit and non-profit development entities to develop and/or preserve affordable housing units The form of assistance will include any or several of the following: Land acquisition and assemblage Site demolition, grading and preparation Occupant relocation On-site and off-site improvements Deferred development fees Buy-ins to existing housing opportunities Mortgage buy-down and down payment assistance programs; direct subsidies Implementation or coordination of local, State or federal low-income and first-time home buyer programs Loans, advances or other indebtedness Bond programs and other leveraging opportunities Supplement to the CDBG housing rehabilitation program and/or other City and non-profit administered housing rehabilitation and assistance programs Where appropriate, affordable housing units will be provided by the development entity through inclusionary requirements and through density bonuses provided pursuant to Government Code, Section 65915 Affordable units provided through these two methods will not use Agency or City funds unless the development of these units is a result of an agreement with the Agency or City wherein use of Agency or City funds is specifically identified 69 IMPLEMENTATION PLAN Exemption from Article XXXIV Requirements In 1979, City of Santa Cruz voters passed a general authorizing referendum providing Article XXXIV approval for low-income rental housing projects in an amount not to exceed one-half of one percent of the total housing stock per year This amounts to approximately 100 of such units per year Housing units developed thus far in the City of Santa Cruz, and those contemplated for the immediate future, are in compliance with the requirements of Article XXXIV Those requirements include Agency development, which includes development, construction or acquisition, of a low-rent housing project Specifically exempted from the requirements of Article XXXIV are housing units: • • • • intended for owner occupancy rather than rental occupancy; privately owned housing which is not exempt from property taxation, and in which not more than 49% of the units are occupied by low-income persons; privately owned housing which is not exempt from property taxation by reason of any public ownership and is not financed with direct long-term financing from a public body; and rehabilitation, reconstruction or replacement of an existing low-rent housing project Other types of exemptions from the requirement are based on judicial and legislative interpretations of the meaning of "develop, construct or acquire." These interpretations provide that the requirements of Article XXXIV not apply if the Agency's activity is limited to any of the following: financing secured by a deed of trust; land acquisition; leasing units from a private owner if the lease does not result in a decrease of property tax; providing assistance to an owner or occupant of existing housing which enables the occupant to live in decent, safe and sanitary housing at an affordable rent; performing conventional activities of a lender; and, imposing mandated or authorized conditions accepted by the recipient of the assistance All of the affordable housing units assisted by the Agency, developed pursuant to an agreement with the Agency, or contemplating an Agency agreement or Agency assistance thus far and proposed through 2004 have either been for sale, owner-occupied units, or have been in rental projects which have been developed by non-profit housing developers and have applied for property tax exemptions through the California property tax welfare exemption The rate of development of tax-exempt affordable housing projects has not exceeded the 100 unit per year threshold established by the proposition passed by Santa Cruz voters 70 IMPLEMENTATION PLAN Number of Units and Income Levels Being Replaced The Agency's legal requirement and actual compliance for replacement housing (pursuant to Section 33413[a]), 1984 through 2004, is zero as shown on the table below Income Level 1984-90 Removal 1990-2004 Removal 1984-2004 Replace Required Units Proposed for Removal Units Needed Very Low Low Moderate Total 0 0 40 48 0 0 0 0 0 0 Timetable for Meeting Replacement Objectives To date, the Agency has removed 48 units The Agency identified the Sycamore Housing Project as the replacement project for the Birch Lane House and the Nueva Vista Project for the Beach Flats housing demolished for the Nueva Vista Replacement Housing Project Future removal of housing will be considered as part of the project planning process and addressed in this context The Agency has also adopted a resolution which allows advance replacement of housing planned for demolition as part of future developments Again these issues will be addressed in the project planning phase To date the Agency has met its obligation to provide replacement affordable housing units within four years of removal of the unit 71 ... Estimated Number of Affordable Units Five- Year Affordable Housing Plan Implementation Plan 2005-2014 52 Table IV Five- Year Affordable Housing Implementation Plan Estimated Number of Units... at the time of the Implementation Plan preparation Future variations will not require a plan amendment 34 IMPLEMENTATION PLAN Table II Five- Year Implementation Plan Estimated Program Expenditures... PROCESS IV PLANNING PROCESS V PLANNING AND POLICY BASIS A Downtown Recovery Plan B General Plan C Eastside Business Area Improvement Plan