The URL can be used to link to this page

Home My WebLink About9/2/2009 - STAFF REPORTS - 2.O. AO ;o*pA�M Sr_ ? iy u m oq<�roa�'`P CITY COUNCIUCOMMUNITY REDEVELOPMENT AGENCY STAFF REPORT DATE: September 2, 2009 SUBJECT: FUNDING OF FY 2009-2010 LOW AND MODERATE INCOME HOUSING FUND SET-ASIDE FROM- David H. Ready, City Manager/Executive Director BY: Thomas Wilson, Assistant City Manager SUMMARY The Health and Safety Code of the State of California (Law), allows redevelopment agencies with more than one project area to satisfy the requirement to set aside 20% of the tax increment revenue from a project area in the Low and Moderate Income Housing Fund using tax increment revenue from another project area. The Community Redevelopment Agency of the City of Palm Springs (Agency) has the ability to use Merged Project Area No. 1 tax increment revenue to make the deposit to the Low and Moderate Income Housing Fund otherwise required by Merged Project Area No. 2 for Fiscal Year 2009-10. RECOMMENDATION: CITY COUNCIL RECOMMENDATION. 1) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2009-10 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND". REDEVELOPMENT AGENCY RECOMMENDATION: 2) Adopt Resolution No. , "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2009- 10 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND". ITEM NO, '� City Council/CRA Staff Report September 2, 2009 -- Page 2 FY 2009-10 Low and Moderate Income Housing Fund FISCAL IMPACT: The Agency sets aside 20% of tax increment revenue from Merged Project Area No. 1 and Merged Project Area No. 2 in the Low and Moderate Income Housing Fund. For Fiscal Year 2009-10, such amounts are projected to be approximately $2,177,000 from Merged Project Area No. 1 and $1,336,000 from Merged Project Area No. 2. In order to provide better matching of revenues and expenditures in both project areas for Fiscal Year 2009-10, it is recommended that the Agency fund the Merged Project Area No. 2 share of the required set aside in the Low and Moderate Income Housing Fund from tax increment revenue in Merged Project Area No. 1. The Agency's Five-Year Implementation Plan described a need to create 458 affordable housing units between 2004-06 and 2013-14, including 142 very-low income units. The Agency has already assisted the Vista Sunrise Special Needs Apartments and Coyote Run II Apartments, resulting in the creation of 146 affordable to low and very low income units. Additional projects that have been proposed and will require Agency assistance are the Garden Springs Apartments and Las Vegas Road Apartments, both located in Merged Project Area No. 1, and Tahquitz Court Housing and Sahara Mobile Home Park Improvements, both located outside either Merged Project Area No. 1 or Merged Project Area No. 2. Together, these four projects, with Agency subsidy from the Low and Moderate Income Housing Fund, will result in the creation or preservation of 350 affordable units. The Redevelopment Plans for Merged Project Area No. 1 and Merged Project Area No. 2 recognize that the provision of low and moderate income housing outside of the merged project areas will be of benefit to the merged project areas. The Agency and the City of Palm Springs find that the additional revenue from Merged Project Area No. 1 deposited in the Low and Moderate Income Housing Fund will be of benefit to Merged Project Area No. 1 although it may be spent outside of the project area. The anticipated deposit by Merged Project Area No. 1 of a total $3,513,000 is provided for in the Agency's 2009-10 budget. David H. Ready Thomas WilOn City Manager/Executive Director Assistant City Manager Attachments: Z RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2009-10 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Agency") has two project areas, namely, Merged Project Area No. 1 and Merged Project Area No. 2 , and the Redevelopment Plans for Merged Project Area No. 1 and No. 2 recognize that the provision of low and moderate income housing outside of the merged project areas will be of benefit to the merged, WHEREAS, Section 33334.3(i) of the Health and Safety Code of the State of California (the "Law") provides that redevelopment agencies with more than one project area may satisfy the requirements of Sections 33334.2 and 33334.6 of the Law by allocating, in any fiscal year, less than 20 percent in one project area, if the difference between the amount allocated and the 20 percent required is instead allocated, in that same fiscal year, to the Low and Moderate Income Housing Fund from tax increment revenues from other project areas; WHEREAS, for the fiscal year 2009-10, the Agency desires to satisfy the requirement to deposit 20 percent of tax increment funds from Merged Project Area No. 2 to the Low and Moderate Income Housing Fund by depositing the required amount from tax increment revenues from Merged Project Area No. 1; WHEREAS, prior to allocating additional funds from Merged Project Area No. 1 to the Low and Moderate Income Housing Fund to satisfy the requirement to deposit such amount from Merged Project Area No. 2 tax increment revenues, the Agency shall make the finding that the use of the additional funds deposited will be of benefit to Merged Project Area No. 1; WHEREAS, the Agency's Five-Year Implementation Plan described a need to create 458 affordable housing units between 2004-05 and 2013-14, including 142 very- low income units; WHEREAS, the Agency has assisted the Vista Sunrise Special Needs Apartments and Coyote Run II Apartments, resulting in the creation of 146 affordable to low and very low income units; WHEREAS, additional affordable housing projects that have been proposed and will require Agency assistance are the Garden Springs Apartments and Las Vegas Road Apartments, both located in Merged Project Area No. 1, and Tahquitz Court Housing and Sahara Mobile Home Park Improvements, both located outside either Merged Project Area No. 1 or Merged Project Area No. 2; Resolution No. Page 2 WHEREAS, together, these four projects, which are proposed to be funded in part with an Agency subsidy from the Low and Moderate Income Housing Fund, will result in the creation or preservation of 350 affordable units; and WHEREAS, the creation or preservation of any of the 350 affordable units outside Merged Project Area No. 1 will be of benefit to Merged Project Area No. 1 and the community, and that tax increment revenue deposited in the Low and Moderate Income Housing Fund from Merged Project Area No. 1, which may be spent outside the boundaries of Merged Project Area No. 1, is of benefit to the Merged Project Area No. 1; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs, California as follows: Section 1. Deposit. The City Council concurs and supports the Agency's decision to not make a deposit of tax increment revenue to the Low and Moderate Income Housing Fund for Fiscal Year 2009-10, Merged Project Area No. 2, and that such amounts will be allocated to and deposited from Merged Project Area No. 1 tax increment revenue. Section 2. Effective Date. This resolution shall take effect from and after the date of approval and adoption thereof. PASSED AND ADOPTED THIS 2nd DAY OF SEPTEMBER, 2009. DAVID H. READY City Manager ATTEST: JAMES THOMPSON, City Clerk 4 Resolution No. Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 25 h day of March, 2009 by the following vote: AYES: NOES- ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2009-10 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Agency") has two project areas, namely, Merged Project Area No. 1 and Merged Project Area No. 2, and the Redevelopment Plans for Merged Project Area No. 1 and No. 2 recognize that the provision of low and moderate income housing outside of the merged project areas will be of benefit to the merged, WHEREAS, Section 33334.3(i) of the Health and Safety Code of the State of California (the "Law") provides that redevelopment agencies with more than one project area may satisfy the requirements of Sections 33334.2 and 33334.6 of the Law by allocating, in any fiscal year, less than 20 percent in one project area, if the difference between the amount allocated and the 20 percent required is instead allocated, in that same fiscal year, to the Low and Moderate Income Housing Fund from tax increment revenues from other project areas; WHEREAS, for the fiscal year 2009-10, the Agency desires to satisfy the requirement to deposit 20 percent of tax increment funds from Merged Project Area No. 2 to the Low and Moderate Income Housing Fund by depositing the required amount from tax increment revenues from Merged Project Area No. 1; WHEREAS, prior to allocating additional funds from Merged Project Area No. 1 to the Low and Moderate Income Housing Fund to satisfy the requirement to deposit such amount from Merged Project Area No. 2 tax increment revenues, the Agency shall make the finding that the use of the additional funds deposited will be of benefit to Merged Project Area No. 1; WHEREAS, the Agency's Five-Year Implementation Plan described a need to create 458 affordable housing units between 2004-05 and 2013-14, including 142 very- low income units; WHEREAS, the Agency has assisted the Vista Sunrise Special Needs Apartments and Coyote Run II Apartments, resulting in the creation of 146 affordable to low and very low income units; WHEREAS, additional affordable housing projects that have been proposed and will require Agency assistance are the Garden Springs Apartments and Las Vegas Road Apartments, both located in Merged Project Area No. 1, and Tahquitz Court Housing and Sahara Mobile Home Park Improvements, both located outside either Merged Project Area No. 1 or Merged Project Area No. 2; b Resolution No. Page 2 WHEREAS, together, these four projects, which are proposed to be funded in part with an Agency subsidy from the Low and Moderate Income Housing Fund, will result in the creation or preservation of 350 affordable units; and WHEREAS, the creation or preservation of any of the 350 affordable units outside Merged Project Area No. 1 will be of benefit to Merged Project Area No. 1 and the community and that tax increment revenue deposited in the Low and Moderate Income Housing Fund from Merged Project Area No. 1, which may be spent outside the boundaries of Merged Project Area No. 1, is of benefit to Merged Project Area No.1; NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, California, as follows: Section 1. Deposit. For Fiscal Year 2009-10, Merged Project Area No. 2 will not make a deposit of tax increment revenue to the Low and Moderate Income Housing Fund, such amounts to be allocated to and deposited from Merged Project Area No. 1 tax increment revenue. Section 2. Bud et and Appropriate. The Agency's 2009-10 budget includes a combined $3,513,000 deposit to the Low and Moderate Income Housing Fund from Merged Project Area No. 1. Section 3. Effective Date. This resolution shall take effect from and after the date of approval and adoption thereof. PASSED AND ADOPTED THIS 2nd DAY OF SEPTEMBER, 2009. David H. Ready, Executive Director ATTEST: James Thompson, Assistant Secretary 7 Resolution No. _ Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment Agency of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the Community Redevelopment Agency of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, Assistant Secretary Community Redevelopment Agency City of Palm Springs, California