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HomeMy WebLinkAbout2/16/2000 - STAFF REPORTS DATE: FEBRUARY 16,2000 TO: COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL FROM: CDBG/HOUSING COORDINATOR and DIRECTOR OF PLANNING &BUILDING VIA CITY MANAGER HOUSING ELEMENT AND COMPREHENSIVE AFFORDABLE HOUSING STRATEGY RECOMMENDATION: It is recommended that the Agency and Council approve a contract amendment with David Paul Rosen and Associates to include the preparation of a City's Housing Element and a comprehensive affordable housing strategy. The contract amendment is in an amount not to exceed$99,300. Final contract amendment to be in a forth approved by the City Attorney. BACKGROUND: According to Section 65300 of the California Government Code,"each planning agency shall prepare and the legislative body of each county and city shall adopt a comprehensive, long-term general plan for the physical development of the county or city,and of any land outside its boundaries which in the planning agency's judgment bears relation to its planning. Chartered cities shall adopt general plans which contain the mandatory elements specified in Section 65302." Section 65302 details the required elements, including,and pertinent to this report,the Housing Element. Under State Law,the City is required to submit to the State an updated Housing Element by June 30,2000. Jurisdictions with an out-of-compliance Housing Element may expose themselves to potential litigation. Section 65580 describes in detail the requirements of the Housing Element. Additionally, in November 1999 the Agency directed staff to pursue the development of a Comprehensive Housing Strategy(Strategy)as a result of an Affordable Housing Analysis which was completed by David Paul Rosen&Associates(DRA). Developing a strategy will allow the City to be proactive in the creation of its affordable housing and take the initiative in meeting the needs of the community as well as its Regulatory Requirements. The Redevelopment Agency entered into agreement with DRA July 28, 1999,by CRA Resolution No. 1073,to complete the affordable housing analysis. Staff is recommending an amendment to DRA's contract in order for DRA to complete the above referenced documents in a cohesive,coordinated fashion. The Scope of Services attached to the Contract Amendment states that DRA will produce a Housing Element Update pursuant to State law, and will also develop a Comprehensive Housing Strategy which will make maximum use of the City of Palm Springs' resources and will target very low and low income households proportionately to their needs in the City. The Strategy will build upon the data generated in the recently completed Affordable Housing Analysis, and will provide concrete, achievable housing goals for incorporation in the Housing Element update,rendering it approvable by the State. DRA proposes to place an emphasis on community consensus in the development of these two documents. Opportunities for public participation will be provided tlu•ough a proposed Advisory Committee, Community Workshops and Planning Commission and City Council/Redevelopment Agency joint study sessions/hearings. One of the first tasks in the work program will be to refine the public participation process by holding discussions with staff and the elected officials. This action is brought to the City Council and Redevelopment Agency for joint approval due to the use of two funding sources for the contract amendment—the General Fund and the Housing Set Aside Fund. The General Fund will cover all tasks related to the production of the Housing Element and the Housing Set Aside fund will cover costs associated with the development of the Comprehensive Housing Strategy, $27,000 and$72,300,respectively. City funds will be appropriated from Fund Balance since no appropriation was made this year for the preparation of the Housing Element. Agency finds are available from the Housing Set Aside Fund under Unscheduled Capital Projects, account4882-8382-5000. D LLAS J.FLICEK l-&FRANCESCA TOSCANO MERRIT Inter' ty M ager CDBG/Housing Coordinator o AA7 DOUGLA� .EVANS Director of lanning&Building �1�1�'S� 116Jijt`P ATTACHMENTS: 1. Resolution—Agency approval 2. Minute Order—City approval 3. Scope of Services 4. Resolution amending the budget David Paul Rosen 8i Associates C r� City of Palm Springs Scope of Services Palm Springs Comprehensive Affordable Housing Strategy Objectives The availability of a well-balanced housing stock is essential to the economic and social vitality of individual communities, as well as the regions they comprise. As portions of California continue to experience rapid population growth, in the context of a changing demographics, providing housing to meet the needs of existing and future populations becomes a more difficult challenge for communities. Because of the complex interrelationship between policies and decisions involving housing, land use, transportation, air quality and economic development, cities must develop creative strategies to promote the availability and affordability of housing. The scope of services will develop a Comprehensive Housing Strategy ("Strategy") which will make maximum use of the City of Palm Springs' resources and will target very low and low income households proportionately to their needs in the City. The scope of services will also produce a Housing Element Update pursuant to State law under which jurisdictions within the SCAG region are required to update their housing elements by June 30, 2000. The Comprehensive Housing Strategy will complement the City's HUD Consolidated Plan for program years of 2000-2004, and the Redevelopment Agency's (Agency) Five-Year Implementation Plan for program years FY 1999/00 — FY 2003/04 in compliance with AB 1290. The Strategy will build upon the data generated in the recently completed Palm Springs Market Analysis for Affordable Housing, and will provide concrete, achievable housing goals for incorporation in the Housing Element update, rendering it approvable by the State Department of Housing and Community Development. The Housing Element must comply with State law with respect to its mandated components and General Plan consistency. Jurisdictions with an out-of-compliance housing element may expose themselves to legal vulnerabilities. Certification is considered to be essential in order for the City to participate favorably in requesting State and Federal housing grants in the upcoming years. The coordinated development of the Housing Element and Affordable Housing Strategy will result in a legally adequate, and more importantly, a functional housing element. SCAG recently completed the process of developing regional fair share housing allocations through the Regional Housing Needs Assessment (RHNA) process. The City's construction need allocation is 1,502. A component of our approach will be DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 1 to achieve community consensus on how and where the City's future affordable housing needs will be satisfied. Our proposed scope of work places emphasis on developing this consensus through effective facilitation of a broadly representative Task Force, potentially composed of elected and appointed officials as well as representatives in the community. Our team's positive working relationship with HCD enables us to approach the resolution of identified issues and concerns in a streamlined manner. We believe this aspect of our services has been a major factor in the success rate of our elements in terms of conformity review. The Consultants have a strong reputation for facilitating effective community consensus building in order to develop an Affordable Housing Strategy and Housing Element that meet legal requirements in a way that is acceptable to the community. Opportunities for public participation will be provided through a proposed Advisory Committee, Community Workshops and Planning Commission and City Council joint study session/hearings. The specifics of the public participation program will be refined in consultation with City staff and decision-makers as one of the first tasks in the work program. A cornerstone of our proposed work effort is a Project Team with depth and range of experiences. The result is that tasks can be undertaken in the most efficient manner. The underlying assumption of the team's composition is to match the level of expertise required for each task with the individuals most suitable to accomplish its objective. Although the actions proposed in the Housing Element will constitute a "project" under the California Environmental Quality Act, the environmental consequences of these actions remain general in nature. It is assumed that environmental impacts will be minimal and the majority of impacts associated with the Housing Element Update non-significant. It is anticipated that a Mitigated Negative Declaration will be appropriate, supported by a Mitigation Monitoring Plan for non-policy mitigation measures if warranted. The Consultant will work under the City's direction as an extension of staff, and will handle all notices, mailings, copying and minutes of staff meetings and community workshops required for the Housing Element. If requested by the City, the Consultant will prepare Planning Commission and City Council staff reports as an optional task. Task 1: Background Research/Project Initiation David Paul Rosen 8z Associates (DRA), in conjunction with The Consultants (TPC), jointly referred to as the "Consultants", will complete the following scope of work. Initial organization of the work program is essential to assure that a process is established to provide close communication between DRA, TPC, City staff and, if necessary, legal counsel. DRA Scope p of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 2 DRA and TPC are highly experienced and skilled in working with such citizen advisory groups. We recommend that if this approach is used, the Advisory Committee be appointed by the City Council and charged with the responsibility of bringing forward a consensus recommendation for the Comprehensive Affordable Housing Strategy and the Housing Element to the Council for its consideration and adoption. The Consultants will work closely with City and Agency staff to provide the preparation, reports, presentations and meeting facilitation services required to assure the highest quality and impartial process and substance is provided to the Advisory Committee for its consideration. In addition to the Advisory Committee, the scope of services and budget includes two study sessions. The Consultants will coordinate and facilitate all public workshops in consultation with City staff, and will be responsible for developing agendas, workshop materials, and preparing meeting summaries. Task 2 Deliverables • Public Involvement Program for the Affordable Housing Strategy and the Housing Element Update. Task 3: Conduct Housing Affordability Gap Analysis The Consultants will analyze the "affordability gap" between the cost of building housing at various densities and the amount that households at different income levels and family sizes can afford to pay for housing based on a review of market and income data in Palm Springs, as well as our own considerable experience in Riverside County and throughout Southern California. The affordability gap analysis provides an understanding of the City's financial capacity to assist in the development and preservation of affordable housing under alternative targeting strategies, given its resources and market conditions. The Consultants will: l . Define target income levels (three income levels); 2. Calculate maximum affordable monthly housing costs (renter and owner, by income level) Define affordable housing expense (e.g. rent plus utilities for renters; mortgage principal and interest, taxes, insurance, and potentially homeowners association/maintenance costs for owners) 3. Develop housing prototypes Analyze up to three renter and three owner prototypes representing different types and densities of housing that could be developed or acquired and rehabilitated in Palm Springs. Development cost DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 4 among state, federal and private sector sources. This review will describe programs available to Palm Springs, associated program requirements, and remaining available funding levels. The following non-local sources will be among those analyzed: State Department of Housing and Community Development, California Housing Finance Agency, Federal and State Low Income Housing Tax Credits, tax-exempt mortgage revenue bonds, U.S. Department of Housing and Urban Development, community reinvestment loan commitments from private lenders and insurers, non-profit intermediaries and other private sector resources. DRA will assist the Agency and the City in identifying leverage opportunities consistent with the policy, program and project priorities in Palm Springs. Task 4 Deliverable • Report on local affordable housing resources and comprehensive review of current affordable housing assistance programs. Task 5: Housing Element Sections on Existing Conditions, Housing Needs, Constraints, Resources and Opportunities The purpose of this task is to develop drafts of the Existing Conditions, Housing Needs, Constraints, Resources and Opportunities sections of the Housing Element. The Consultants will use data on affordable housing needs, supply, and prices from the recently prepared Palm Springs Affordable Market Analysis, with additional focused research as required. The information will be compiled in a format consistent with the requirements of Government Code Section 65583 and the City's General Plan. An analysis of potential and actual governmental and non-governmental constraints to the maintenance, improvement and development of housing will be prepared. A key component of this review will be the availability of land suitable for development of affordable housing. The requirement for demonstrating sufficient sites to accommodate future housing needs is a key issue in the preparation of the Housing Element. It will also be critical to developing the programs and policies of the Housing Strategy affecting the location of new affordable housing development. This analysis will include the relationship of zoning and public facilities and services to sites suitable for residential development. Map exhibits will be prepared showing the location of available sites. The potential number of housing units that could be developed on the sites listed in the inventory will be calculated and compared to the City's future needs (RHNA) to determine the adequacy of available sites. The results of this evaluation will be used in refining the policies, programs and quantified objectives of the Housing Strategy and Element. The Consultants will integrate the results into a digitized ARC-View base map to be provided by the City. A hard copy of the maps will also be provided to the City. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 6 crib vp7 cm6y During the project initiation phase the scope will be reviewed and fine-tuned by the City and the Consultants in order to complete the project in the most efficient and cost-effective manner. Task i Deliverables • List of data. • Kick-Off Meeting. • Preliminary identification of key issues. • Housing Element format. Advisory Committee/Public Involvement Program In consultation with City staff, the Consultants will develop a program to promote public involvement and consensus building in the development of the Affordable Housing Strategy and Housing Element Update. The program will identify opportunities to solicit input, review, and participation from the public and concerned organizations throughout the process. Any special considerations will be reviewed with City staff during Task 1 and a framework for community involvement will be developed. The public involvement program will seek to provide: • Opportunities for community representatives and interests to participate in the process in a meaningful way. o Effective facilitation and consensus-building strategies to maximize the chances that the final Affordable Housing Strategy and Housing Element programs will be both legally adequate and politically acceptable. Some jurisdictions find impaneling a special Affordable Housing Advisory Committee a useful step in reaching consensus on the key program and policy elements central to both the Comprehensive Affordable Housing Strategy and Housing Element Such an Advisory Committee should be composed of representatives of key stakeholder groups in the community, including but not limited to the Chamber of Commerce, Tourism Council, apartment owners, social service providers, developers and operators of affordable rental housing, and others. Qualifications for representatives on the Advisory Committee should include recognized leadership within their respective constituent organizations as well as a willingness to work toward common goals for a sound affordable housing strategy responsive to needs in the City. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 3 CM6 = 40 estimates will be prepared for the prototypes after compiling and reviewing housing development cost data (including land acquisition, construction, fees and soft costs) for Palm Springs. 4. Calculate the affordability gap between the amount households can afford to pay versus housing costs for each prototype; and, 5. Calculate subsidy needs for each prototype. Target income levels and prototypes will be selected in consultation with City staff and others as appropriate. We will use current Department of Housing and Urban Development (HUD) income limits and maximum affordable housing costs for renters and owners by family size and income level for the Riverside/San Bernardino MSA, consistent with Housing Element, Community Redevelopment and HUD law and regulation. Housing acquisition, rehabilitation and development costs will be estimated through analysis of market data, interviews with local housing developers in Palm Springs and neighboring communities. To the extent comparable market data on multi-family land costs are not available in Palm Springs, due to the lack of multi-family zoned sites, we will use market prices for land appropriately zoned in surrounding jurisdictions. The Consultants will review available data on market housing prices and rents from on-line computer services and local market sources. Task 3 Deliverables • Affordability Gap Analysis Report Task 4. Review Local Resources and Leverage Opportunities These activities will assure the Agency and City that its Comprehensive Affordable Housing Strategy appropriately responds to the housing needs, obligations, current and prospective revenue resources available for affordable housing, and current and proposed land use policies in Palm Springs. a. Local Resources DRA will review information provided by City staff on existing programs and current and projected resources for affordable housing from all resources, including the Palm Springs Redevelopment Agency's Low and Moderate Income Housing Fund, Community Development Block Grant and HOME funds, City and Agency general funds and other local housing moneys. These will include funds from tax increment and tax allocation bond issues, as appropriate. b. Leverage Opportunities DRA will conduct a comprehensive review and description of currently available leverage opportunities for affordable housing subsidies from non- City sources. Leverage opportunities will be comprehensively surveyed DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 5 co fu This task will also include an analysis of opportunities for energy conservation. The Consultants will review the City's existing Housing Element and evaluate the progress in implementing the adopted housing programs and meeting identified goals of the current housing element. This review must include an analysis of the effectiveness and appropriateness of the goals, policies and objectives in contributing to the attainment of the state housing goal. In addition, the current housing programs must be evaluated for their effectiveness in addressing the issues identified in the housing conditions survey. The following specific program areas will be included in the analysis: ■ Conserving, maintaining and improving the existing housing stock; ■ Assisting in the development of housing for low- and moderate-income households; ■ Removing the impediments posed by identified local governmental constraints; and ■ Providing equal housing opportunities for all income groups. In conducting this analysis, it is assumed that the City will provide information on the resources allocated to housing programs since the last Housing Element was adopted. A Technical Report will be prepared documenting the findings from the review of the existing Housing Element. This report will be used to address legal requirements and to guide the refinement of goals, objectives and programs in the revised element, and the development of new programs. Task 5 Deliverables • Working Drafts of the Housing Element sections addressing Existing Conditions, Housing Needs, Constraints, Resources and Opportunities. o Technical Report summarizing review of existing Housing Element Task 6: Develop Housing Policies and Priorities The strategy must be informed by policies, which provide clear guidance for the targeting of limited City, Agency and leveraged resources. The Consultants will clarify and recommend options and modifications to current City and Agency priorities, goals and policies. Policy guidelines may include but will not be limited to such issues as income targeting, housing type and tenure, definition of affordable housing expense, mix of unit sizes, compliance with state and federal legal requirements, affordability term, location, public/private partnerships and other factors. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 7 The Consultants will distinguish between the City's obligations under Housing Element Law and the Agency's obligations under Community Redevelopment Law. We will work with the Agency and City's legal counsel to address consistency of the recommended priorities, goals and policies with relevant legal requirements including the Redevelopment Agency's Low and Moderate Income Housing Fund, replacement housing and inclusionary housing obligations within the City's Redevelopment Project Areas. We will review restrictions pertaining to tax-exempt and taxable bonds financed using Agency Housing Set-Aside revenues, if any. We will also address the City's and Agency's obligations to provide state relocation benefits to eligible lower income displacees. Task 6 Deliverables • Statement of housing goals and policies for the Affordable Housing Strategy and Housing Element Task 7: Identify Program and Project Opportunities The Consultants will review available program and project opportunities in Palm Springs and will provide recommendations for a variety of programs and policies consistent with Palm Springs' housing needs and resources. Program elements to be considered may include the following, as well as others: • New affordable housing construction; • Acquisition of existing housing; • Preservation of existing affordable housing at-risk of conversion to market rate; • Syndications using Federal and State Low Income Housing and Federal Historic Rehabilitation Tax Credits; o Negotiations with developers for inclusionary components to overall development plans; • Housing rehabilitation grants or loans; o Ventures with non-profit housing development corporations; • Mortgage "buy-down" and "second loan" programs to assist qualified home purchasers in obtaining financing for the acquisition of housing units; • Emergency relief to prevent foreclosures and rental evictions; DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 8 C (C.6• � C 1 K 10 .0/0 • Community lending partnerships with financial institutions under the Community Reinvestment Act (CPA) and initiatives such as the California Organized Investment Network (COIN). The Consultants will design program elements so that they are consistent with the City's affordable housing needs, fulfill the City's and Agency's housing obligations, feasible within the City's current and potential financial resources, and meet community objectives and priorities. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 9 Task 7 Deliverables • Program element section of Affordable Housing Strategy Task 8: Prepare Five-Year Capital Plan and Quantif;ed Objectives Once the housing assistance policies described above are established, housing assistance goals specifying the number of households to be assisted by tenure, family income, family size and special needs populations will be established. These will describe achievable objectives over the five-year implementation plan required under AB 1290 (Health and Safety Code Section 33490) and Housing Element law. The Consultants will detail the affordable housing capital requirements needed to achieve these assistance goals. These capital requirements will be categorized by: 0 Subsidy capital; 0 Debt capital; 0 Equity capital. The Comprehensive Affordable Housing Strategy will provide concrete, achievable housing goals to be incorporated in the Housing Element and AB 1290 Implementation Plan. The Consultants will review and advise the Agency on the AB 1290 Implementation Plan documents as desired. Task 8 Deliverables: • Five-year capital plan section of the Affordable Housing Strategy o Quantified objectives section of the Housing Element • Summary matrix identifying each housing program, its intent and quantified objective, funding source(s), responsible agency, and timeframe for implementation for incorporation into the Housing Element Task 9: Prepare Comprehensive Housing Strategy Document The Consultants will prepare written work products for each of the tasks, as noted above. After incorporation of staff comments and revisions, these reports will become chapters of the Housing Strategy document. The Consultants will prepare a draft Comprehensive Housing Strategy documents for review by staff and the Advisory Committee (if used), the Planning Commission and City Council. Task 9 Deliverables: DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 10 C roe 10 - rl Cra - �•�z • Draft Affordable Housing Strategy document DPA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page I I Task 10: Preparation of Draft Housing Element Document A comprehensive Screencheck Housing Element will be prepared for staff review prior to the public review process. The Screencheck document will be based on all information developed through the scope of work and will include all issues, opportunities, constraints, assumptions, analysis, goals, policies, data and mapping. The Element will comply with all applicable state provisions regarding the content, methodology and processing of housing element updates. As this Update constitutes a General Plan Amendment, the format will be consistent with the City's General Plan. The completed Screencheck will be submitted to the City staff for distribution to appropriate departments and decision-makers for review and proofing. It is requested that the City provide a single set of consolidated comments on the Screencheck for streamlining the revision and editing process. All City departments, including the City Counsel, should review the Screencheck at this point. Three (3) rounds of revisions to the Screencheck will be made, and a Draft document prepared for distribution during the study session portion of the project. The Consultants will conduct a study session for the Planning Commission and City Council on the Draft Affordable Housing Strategy and Housing Element documents. Task 10 Deliverables: • Screencheck Document, including all appendices, reports, etc. (one (1 ) reproducible and ten (10) copies). • Ten (10) copies of the revised Draft document will be provided to reflect all comments. • Errata sheet documenting input from study session. Task 11: Environmental Assessment Concurrent with the preparation of the Housing Element, the Consultants will conduct an environmental analysis of the project. It is assumed that this analysis will justify the adoption of an Initial Study/Mitigated Negative Declaration. The Mitigated Negative Declaration will include an Initial Study which will contain the required elements, including: a description of the project; its location; a comprehensive environmental checklist; information concerning the project's environmental effects; suggested means for mitigating the significant effects; and a review of the project's consistency with existing plans and land use controls. The sources of information used in the Initial Study will be cited. All environmental topics will be reviewed in the checklist. The checklist will be followed with a review of the potential impact, an explanation for the determination DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 12 Crow bw13 e to. 6 • Iq and recommended mitigation. Following review and comment by the City, modifications will be made to the Screencheck Initial Study. Assuming there are no impacts which cannot be mitigated to a level of insignificance, a Screencheck Mitigated Negative Declaration will be prepared and transmitted to the City for review. Comments from the City will be incorporated and a Draft Negative Declaration and Mitigation Monitoring Program prepared. The Draft Negative Declaration will be sent to the State Clearinghouse for distribution for 30 day review. NOTE: This proposal includes a scope of work and associated fee for preparation of an initial study and Negative Declaration. If an environmental impact report is required, the City shall be notified at the time of determination and appropriate action taken. Task 11 Deliverables Screencheck Initial Study (1 ) reproducible and ten (10) copies. o Draft Initial Study and Environmental Assessment (one (1 ) reproducible copy). 0 Draft Negative Declaration (one (I ) reproducible copy). o Draft Mitigation Monitoring Program (if applicable) (one (1 ) reproducible copy). Task 12: Housing Element Revisions and HCD Review The Consultants shall incorporate all changes based on comments received through the review process into a Draft Final copy for submittal to HCD. A camera ready copy of the Draft Final document will be provided to the City for transmission to state HCD for review and comment. Upon receipt of the HCD review response, the Consultants will work with the City at a Staff Meeting to meet the concerns of HCD to demonstrate compliance with legislative requirements. Any comments of substantive nature, which would require change in policy direction or other action by the City Council, will be identified for consideration by the Council. A follow-up conference call with HCD, or other appropriate forms of communication, will be made to ascertain satisfaction of their concerns prior to adoption of the Element. Once revisions and modifications are made subsequent to HCD review and comment, a Final Draft General Plan Amendment for the Housing Element Update and associated environmental and processing documentation will be prepared for the DPA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 13 Planning Commission and City Council study sessions and subsequent Public Hearing process. The Consultants will attend one Planning Commission hearing on the General Plan Amendment for the Housing Element Update and associated environmental documentation (see Task 10 for description of final environmental documents). It is recommended that any identified edits and/or modifications to the documents resulting from the Redevelopment and the Planning Commission hearing be documented in the form of an Errata Sheet, specifying the page number, paragraph and line of the revision, as well as the specific language added, deleted or modified. The Consultants will participate in one City Council hearing related to the approval of the Housing Element and environmental documentation, based on recommendations from the Planning Commission and documentation of proposed revisions in the form of Errata Sheets from the hearings. The Council can then approve, modify or delete any recommended changes to the documents highlighted in the Errata Sheets, as well as any new editorial actions. The Errata Sheet will be edited following the first Council hearing to incorporate all recommended actions to be brought to the final Council hearing. Following the Public Hearings, a Final Housing Element will be prepared. Task 12 Deliverables: • Study session: Joint Planning Commission, and City Council. • Draft Final Housing Element document (one (1 ) reproducible for HCD and ten (10) copies). • Revised Draft Final Housing Element document (responding to HCD comments) (ten (10) copies, one (1 ) reproducible copy and computer disk). • One (1 ) Planning Commission and one (1 ) City Council hearing. • Errata sheets following each public hearing. • Final Comprehensive Affordable Housing Strategy and Housing Element documents (one (1 ) reproducible copy, as well as a file on computer disk that is compatible with the City's software). Task 13: Preparation of Final Negative Declaration Following the 30 day review (which will occur concurrently with HCD review of the Housing Element), a Response to Comments (if warranted) will be prepared, constituting the Final Mitigated Negative Declaration. A Mitigation Monitoring program with appropriate mitigation measures will accompany the Final Mitigated Negative Declaration. This documentation will be brought to the Planning Commission and City Council for review and adoption. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 14 Cra � �/�` The Consultants will finalize the environmental documentation and Mitigation Monitoring Program and file the Notice of Determination (NOD) with the County following adoption of the Housing Element Update by the City Council. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 15 Task 13 Deliverables: • Final Negative Declaration and Mitigation Monitoring Program (one (1 ) reproducible copy and computer disk). o Notice of Determination. Meetings and Presentations The Consultants will be present at meetings as required by research and program development, and as desired and requested by City/Agency staff. Meetings will be paid on a time and expense basis according to the attached fee and expense reimbursement schedule, allowing for on-site and preparation time, and the following reimbursable expenses, as needed: coach round-trip air travel, lodging, meals, ground transportation and parking expenses. The maximum meeting budget in the fee schedule will not be exceeded without prior authorization of the Agency or City. This budget line item allows for preparation of presentation materials, travel and on-site time with City staff and officials. The meetings and presentations budget is presented in two alternatives; with an Advisory Committee, and without an Advisory Committee, in Attachment 1 : Palm Springs 2000 Affordable Housing Strategy Recommended Process and Schedule. DRA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 16 Ow ra. 6 Budget The not-to-exceed maximum price for preparation of the above scope of services is $99,300. The Consultants will bill on a percent completion basis for Tasks 1 through 13. Production, meetings and reimbursable expenses will be billed on a time and expense basis. In no event will the contract maximum be exceeded without the mutual written consent of the City and the Consultant. Billing rates for professional fees and expense reimbursement will be per the attached 2000 fee and expense reimbursement schedule (Attachment 2). The following is an estimated breakdown of costs, and fixed price, by task. 1 . Project Initiation/Kick-Off Meeting $ 2,900 2. Public Involvement Program 1,200 3. Housing Affordability Gap Analysis 7,500 4a. Local Resources 3,500 4b. Leverage Opportunities 8,500 5. Housing Element Sections on Existing Conditions, Housing Needs, Constraints, Resources and Opportunities 3,000 6. Housing Policies and Priorities 7,500 7. Program and Project Opportunities 7,000 8. Five-Year Capital Plan and Quantified Objectives 12,000 9. Affordable Housing Strategy Document 5,000 10. Draft Housing Element 5,900 11 . Environmental Assessment 4,100 12. HCD Review and Final Housing Element 3,000 13. Final Negative Declaration 700 Production and Reimbursable Expenses 51700 Subtotal: $77,500 Meetings' • (charged on a time and expense basis up to a maximum budget, without Advisory Committee): $171800 • (charged on a time and expense basis up to a maximum budget, with Advisory Committee): $21,800 Includes, progress meetings with staff, two study sessions with the City Council and/or Planning Commission, and two public hearings for the Housing Element, with or without Advisory Committee meetings as noted. Kick-off meeting budget is included in Task 1. DPA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 17 Schedule The Consultants will work with City/Agency staff to develop a mutually agreed upon schedule for completing the above scope of services that allows for integration of the Housing Strategy effort with the General Plan and Housing Element Update. (See Attachment 1 : Recommended Process and Schedule.) We estimate a five to seven month time frame for completion of the scope of work, depending upon whether a citizen's Advisory Committee is used, from contract execution. Contracting Relationship DRA will serve as prime contractor for the above scope of services. The Planning Center will serve as subcontractor to DRA for preparation of the Housing Element. DPA Scope of Services February 4, 2000 Palm Springs Comprehensive Affordable Housing Strategy and Housing Element Page 18 cro6 cl David Paul Rosen&Assoc. Amend#1 to Contract Srv. Agr. Affordable Hsng Strategy(ref A4208) AGREEMENT#393C R1095, 2-16-00 Related FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT DAVID PAUL ROSEN&ASSOCIATES THIS FIRST AMENDMENT TO CONTRACT SERVICES AGREEMENT(herein "Amendment")is made and entered into this 'I „Z4—day of 4 �G q, evL�, ,2000,by and between the PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, "Agency") a public body, corporate and politic,the CITY OF PALM SPRINGS("herein"City")a municipal corporation, and DAVID PAUL ROSEN&ASSOCIATES(herein"Contractor"). The parties hereto agree to this First Amendment to the Contract Services Agreement,Agreement No. 393C. Said agreement was approved by the Agency on July 28, 1999 by Resolution No. 1073. The Contractor,through Agreement No. 393C,provided a Market Analysis of Affordable Housing within the City of Palm Springs. As a follow-up to the Market Analysis,the parties agree to amend the following sections of the original contract: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Amendment,the Contractor shall provide those services specified in the"Amended Scope of Services"attached hereto as Exhibit"A"and incorporated herein by this reference,which services may be referred to herein as the "services"or"work"hereunder. Contractor warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry,and all materials will be of good quality,fit for the purpose intended. 1.2 Contractor's Proposal. The Amended Scope of Services shall include the Contractor's proposal or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Amendment,the terms of this Amendment shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Amendment,the Contractor shall be compensated in accordance with the"Amended Schedule of Compensation"attached hereto as Exhibit`B"and incorporated herein by this reference,but not exceeding the maximum amended contract amount of Ninety Nine Thousand Three Hundred Dollars($99,300.00)(herein"Amended Contract Sum"). The method of compensation may include: (i)a lump sum payment upon completion,(ii) payment in accordance with the percentage of completion of the services,(iii)payment for time and materials based upon the Contractor's rates as specified in the Amended Schedule of Compensation,but not exceeding the Amended Contract Sum or(iv)such other methods as may be specified in the Schedule of Compensation. 3.0 PERFORMANCE SCHEDULE 3.1 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s)established in the"Amended Schedule of Performance"attached hereto as Exhibit"C", if any, and incorporated herein by this reference. When requested by the Contractor,extensions to the time period(s)specified in the Amended Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty(180)days cumulatively. 4.0 Coordination of Work 4.1 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the u� 0 PROOF OF PUBLICATION This is space for County Cleric's Filing Statnp (2015.5.C.C.P) No.1772 -- - COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS REQUEST FOR PROPOSAL (RFP) 01-00 TO PROVIDE MARKET ANALYSIS OF AFFORDABLE HOUSING IN THE CITY OF PALM SPRINGS, CALIFORNIA NOTICE IS HEREBY GIVEN that the Community Redevelopment Agency of the City of Palm Springs is so Skir proposals from interested and qualland firms to pertorm an analysis of the market for af- fordable housing in Palm Sprinq s, focusing on the STATE OF CALIFORNIA three following chat acteristms aueating the market: Count of Riverside '�Impf:ne . B 1 90),th Re- ..- -- Y opmant Implementation Plan (AB 1290), the Re- gronal He, Needs Assessment THNA nurn- bers, as well as the required Consolidated Plan prepared for the Department of Housing and Urban Development, 2. The supply of existing affordable housing stock by type (apartment vs single family), location, do- ordinary, price rent, and condition: Special atten- tion wal be given to any geographic concentration of affordable housing; and 3 The demand for affordable housing in Palm I am a citizen of the United States and a resident of sp�necentps, based on the current demographms,(most r available), historical growth rates in the the County aforesaid;I am over the age Of eighteen community, and projected trends over the next five years,and not a party t0 or interested In the ea errsponses received which are at in conformance above-entitled matter.lam the principal clerk Of a with the instructions outlined in the RFP document printer of the,DESERT SUN PUBLISHING —Th. REP documenected ast non responsive -- --e - - The RFP document wa al rob etl neon request e COMPANY a newspaper of general circulation, no cnarge. copies may also be obtained from the printed and published in tiro city of Palm Springs, Offlca of Procurement at the addresses below or bv tele�phone reG uest at (760)323-8239. County of Riverside,and which newspaper has been STREET ADDRESS adjudged a newspaper of general circulation b the CITY OF PALM SPRINGS 1 gg Y ATrN: Procurement Mariaqer Superior Court of the County of Riverside,State of 3200 E Tahgwtz canyon Way California under the date of March 24, 1988.Case Palm ?rings, Ca 92262 PHONE R 0)323-8239 Number 191236;that the notice,Of which the MAILING ADDRESS annexed is a printed co set in a not smaller CITY OF PALM SPRINGS p copy( type ATTN' Procurement Manager than non pariel,has been published in each regular P O. Box 2743 and entire issue of said a0 newspaper and not in Palm Strings, CA 92263-2743 Y PHONE: 1760)323-8239 supplement thereof On the following dates,to wit: EVALUATION CRITERIA: All propposals received by the closing date and time will be evaluated by an Evaluation Committee who will review and June 12th judge the merit of the proposals received in need, dance with all criteria an specifications contained - "----------------"- in the REP document. Proposals will be judged on the basis of the following criteria. ___ A Firm's experience - -------------------------'-- --"-----'-----' B. Experience of Personnel Dedk ed to the Pro- _- C lest . All in the year 1999 machSo Project_ D. Re Apfperences - -- E. cost I certify(or declare)under penalty of perjury that the An oral presentation Or site Visit may be required after the Community Redevelopment Agency re- foregoing is true and correct. ceives and evaluates the written proposals. How- 15th ever, the Community Redevelopment Agency re- serves the right to award a contract on the basis Dated at Palm Springs,California this--------------day on moral pproposals received, without interviews. DEAPLINE: Proposals must be received in the June Procurement Office at the street address above of----------------------------------'---e 1999 prior to the deadline of Wednesday, July 7, 1999, 5:00 P.M. local time. It is the responsibility of the Offeror to see that any proposal sent through the -- �n /4- mad shall have sufficient time to be received by .C� \ __ this specified date and time. will o be c ephon- ted. t"---'-----'- -------- --- m or Specified (fax)proposals will no be accepted. Signature Proposers attention is drawn to the fact that all proposals documents submitted are subject to the C Ol rfolmia Code Section 6250 at sag, commonly known as the Public Records Act. Information con- tained in the proposals may be made public after the review process has been completed in a rec- omrnendauon for award to the Cornmunrt Rede- velopment Agency of the City of Palm Springs, andlor following award INSURANCE REQUIREMENTS: The successful Offeror must meet all insurance requirements of the Community Redevelopment Agency of the City of Palm Springs The Community Redevelopment Agency reserves the right to award a Contract, or make no award, whichever is in the best interests of the Agency. The Agency also reserves the right to negotiate the terms and conditions of the Contract resulting from this sriamt non Final award, if any, will be made by the Community Redevelopment Agency of the Cit of Palm Springs. laJy arold E Good, GPPO Procurement Manager Date. June 9, 1999 PUB: June 12 1999 CITY OF PALM SPRINGS, CALIFORNIA REQUEST FOR PROPOSAL (RFP) 01-00 TO PROVIDE MARKET ANALYSIS OF AFFORDABLE HOUSING IN THE CITY OF PALM SPRINGS, CALIFORNIA NOTICE IS HEREBY GIVEN that the City of Palm Springs is soliciting proposals from interested and qualified firms to perform an analysis of the market for affordable housing in Palm Springs, focusing on the three following characteristics affecting the market: 1 . Regulatory requirements, including the Redevelopment Implementation Plan (AB 1290), the Regional Housing Needs Assessment (RHNA) numbers, as well as the required Consolidated Plan prepared for the Department of Housing and Urban Development; 2. The supply of existing affordable housing stock by type (apartment vs single family), location, occupancy, price/rent, and condition. Special attention will be given to any geographic concentration of affordable housing; and 3. The demand for affordable housing in Palm Springs, based on the current demographics (most recent available), historical growth rates in the community, and projected trends over the next five years. Responses received which are not in conformance with the instructions outlined in the City's RFP document will be rejected as non-responsive. The RFP document will be mailed upon request at no charge. Copies may also be obtained from the Office of Procurement at the addresses below or by telephone request at (760) 323- 8239. STREET ADDRESS MAILING ADDRESS CITY OF PALM SPRINGS CITY OF PALM SPRINGS ATTN: Procurement Manager ATTN: Procurement Manager 3200 E. Tahquitz Canyon Way P. 0. Box 2743 Palm Springs, Ca 92262 Palm Springs, CA 92263-2743 PHONE: (760) 323-8239 PHONE: (760) 323-8239 EVALUATION CRITERIA: All proposals received by the closing date and time will be evaluated by an Evaluation Committee who will review and judge the merit of the proposals received in accordance with all criteria and specifications contained in the RFP document. Proposals will be judged on the basis of the following criteria. A. Firm's experience B. Experience of Personnel Dedicated to the Project C. Approach to Project D. References E. Cost An oral presentation or site visit may be required after the City receives and evaluates the written proposals. However, the City reserves the right to award a contract on the basis of initial proposals received, without interviews. DEADLINE: Proposals must be received in the Procurement Office at the street address above prior to the deadline of Wednesday, July 7 1999 5:00 P.M. local time. It is the responsibility of the Offeror to see that any proposal sent through the mail shall have sufficient time to be received by this specified date and time. Telegraphic, telephonic or facsimile (fax) proposals will not be accepted. Proposers attention is drawn to the fact that all proposal documents submitted are subject to the California Code Section 6250 et seq, commonly known as the Public Records Act. Information contained in the proposals maybe made public after the review process has been completed in a recommendation for award to the Palm Springs City Council, and/or following award. INSURANCE REQUIREMENTS: The successful Offeror must meet all insurance requirements of the City. The City reserves the right to award a Contract, or make no award, whichever is in the best interests of the City. The City also reserves the right to negotiate the terms and conditions of the Contract resulting from this solicitation. Final award, if any, will be made by the Palm Springs City Council. C� 91{ ( HAROLD E. GOOD, CPPO Procurement Manager Date: June 9, 1999 Publish in Desert Sun: June 12, 199 Interoffice Memo Date: June 8, 1999 To: Rob Parkins, City Manager Cc: John Raymond, Economic Programs Manager From: Fr oscano Merritt, CDBG/Housing Coordinator VIA Dal as Flicek,Asst. City Manager,Admiw—.Xp •� RE: Eligible Affordable Housing Requests In response to your request for a list of eligible affordable housing projects for potential encumbrance of the Housing Fund "excess surplus," I provide you the following two suggestions with project description and approximate funding amounts. John Raymond and have discussed several other projects, but these two have been discussed before Council and have the most potential to move forward. We have prepared a "Request for Proposals" (which should go out the end of the week), looking for a consultant to assist us in providing Council requested information on the City's affordable housing stock, and our future needs. As evident by Tom Kanarr's memo, funds are available for projects, and need to be put to use in order to reduce the risk of either giving the money to the County Housing Authority, or being unable to spend any other redevelopment funds until we reduce our excess surplus. • Single Family Residential Housing Project in Cottonwood/Chuckwalla $350 000. This project has received preliminary Agency blessing. The Coachella Valley Housing Coalition is proposing to build 7 single-family homes on the corner of Cottonwood Rd., Avendia Caballeros and Chuckwalla Rd. I am currently working on a staff report to bring to the Agency on July 7, 1999 requesting approval of an OPA with CVHC. The OPA approves Agency reimbursement of property acquisition costs to CVHC; approves Agency financial assistance for homebuyer permanent financing, and approves Agency financial assistance to CVHC so that they may begin the tract map process. Specific details to be worked out in future DDA. • Small Apartment Rehabilitation Program — Cottonwood/Chuckwalla $250 000. This program would offer property owners of small apartment complexes (5-10 units) a small loan program. The loan funds could be used to make necessary property improvements whether they are code enforcement issues or basic property improvement projects. Cottonwood/Chuckwalla would be a test area to see how well the program is accepted. Should the program be successful it could be opened up to the whole community or to specific areas where the Agency is intent to see revitalization. June 8, 1999 Interoffice Memo: Eligible Affordable Housing Requests 2 The above projects are not only two projects that we would like to see move forward, but also two examples of the use of Housing Set Aside funds. According to Redevelopment Law, so long as the expenditure of set aside funds serves to increase, improve, or preserve the supply of low and moderate income housing, the law authorizes a broad range of uses for the Housing Fund, including but not limited to: acquisition of land or buildings; construction of buildings, onsite improvements or offsite improvements; rehabilitation of buildings; paying a portion of the principal and interest on bonds issued to finance low and moderate income housing; and the preservation of housing subsidized by federal, state, or local government and subject to conversion to market rate rental. The activities that are allowed are broad enough to give redevelopment agencies quite a bit of flexibility when participating in the production, rehabilitation, and preservation of low and moderate income housing. Redevelopment agencies have the option of providing financial assistance to developers of affordable housing, whether it's new construction or rehabilitation of existing housing. Assistance may also be given directly to homeowners. The prime requirement being that assisted households must fall below 120% of area median income. We are required to assist all levels of affordable housing — very low, 50% of median income; low, 60-80% of median; and moderate, 120% of median (in our area this income range often matches market rate costs). Direct homeowner assistance may be provided in the form of grants or loans, dollar amount and terms would be at discretion of the Agency. Funds may be used to assist with ownership (down-payment, closing costs, etc.), or rehabilitation issues — exterior painting, exterior improvements, interior improvements (paint, a/c, carpeting, plumbing, etc.). Assistance (grants or loans) may also be provided to landlords for rehabilitation of units (similar to the above referenced Cottonwood/Chuckwalla Loan Program) as long as the units are dedicated to a majority of low/moderate income households. Additionally, housing fund monies must be used inside the redevelopment project area unless the Agency makes a finding that use outside the project area will be of benefit to the redevelopment project. This finding can usually be made if the housing to be constructed (or rehabilitated) is in close proximity to the project area or the implementation of the project has or will generate demand for low/moderate income housing through removal of existing supply of housing or through generation of jobs in the project area. As indicated earlier, redevelopment agency use of housing funds is quite flexible long as recipients are income qualified and resale restrictions are put into place. In order to avoid any possible misuse of funds, we should seek City Attorney concurrence on program guidelines and terms. Let me know if you need any further information on the above. fmt RESOLUTION NO. 1095 OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A CONTRACT AMENDMENT WITH DAVID PAUL ROSEN & ASSOCIATES TO COMPLETE THE CITY'S HOUSING ELEMENT ACCORDING TO STATE LAW, AND TO DEVELOP A COMPREHENSIVE AFFORDABLE HOUSING STRATEGY; CONTRACT AMENDMENT TO BE IN AN AMOUNT NOT TO EXCEED$99,300.00. BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, California,that a Contract Amendment in the amount of$99,300.00 with David Paul Rosen&Associates to complete the city's Housing Element according to State Law,and to develop a Comprehensive Affordable Housing Strategy is approved; and,the Executive Director or his designee is authorized to sign any documents related to the Agreement. ADOPTED this 16th day of February ,2000. AYES: Members Hodges, Oden, Reller-Spurgin and Chairman Kleindienst NOES: Member Jones ABSENT: None ABSTAIN: ATTEST: COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS, CALIFORNIA BY Assistant Secretary Chairman REVIEWED AND APPROVED: