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HomeMy WebLinkAbout6/2/2010 - STAFF REPORTS - 2.K. .y ti G1 9?IkLM S. 4 N City COUrICIIl �44rraa�`P. Redevelopment A _ ec�ncy Staff Report DATE: June 2, 2010 SUBJECT: Funding of 2010-11 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 2010-11. RECOMMENDATION: 1. Adopt Resolution No. , "RESOLUTION OF THE CITY OF PALM SPRINGS, CALIFORNIA MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2010-11 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND" 2. Adopt Resolution No. , "RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2010-11 DEPOSIT TO THE 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 2010-11, such amounts are projected to be approximately $2,257,000 from Merged Project Area No. 1 and $1,241,000 from Merged Project Area No. 2. In order to provide better matching of revenues and expenditures in both project areas for Fiscal Year 2010-11, 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 256 affordable housing units between 2009-10 and 2013-14, including 58 very-low income units. The Agency has already assisted the Vista Sunrise Special Needs Apartments, Coyote Run II Apartments, and the Cottonwood/Chuckwalla single family residential project resulting in the creation of 156 affordable to low and very low income families in the previous 5 years. Additional projects that have been proposed and will require Agency assistance are the CVHC Rosa Gardens Apartment Project and the Vista San Jacinto Apartments, both located in Merged Project Area No. 1 and Indian Canyon/San Rafael project, located outside either Merged Project Area No. 1 or Merged Project Area No. 2. Together, these three projects, with Agency subsidy from the Low and Moderate Income Housing Fund, will result in the creation or preservation of 181 affordable units, including 130 units restricted for very low income households. 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 $3,498,200 is provided for in the Agency's 2010-11 budget. 7-_ David H. Ready Thomas Wils�X City Manager/Ex u ive Director Assistant City Manager Attachments: RESOLUTION NO. RESOLUTION OF THE CITY OF PALM SPRINGS, CALIFORNIA MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2010-11 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND The City Council of the City of Palm Springs finds. A. 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 that 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. B. 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. C. For the fiscal year 2010-11, 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. D. 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. E. The Agency's Five-Year Implementation Plan described a need to create 256 affordable housing units between 2009-10 and 2013-14, including 58 very-low income units. F. The Agency has assisted the Vista Sunrise Special Needs Apartments, Coyote Run II Apartments, and Cottonwood/ChuckwaIla single family residential project resulting in the creation of 156 affordable to low and very low income families over the previous 5 years; G. Additional affordable housing projects that have been proposed and will require Agency assistance are the CVHC Rosa Gardens Apartment Project and the Vista San Jacinto Apartments, both located in Merged Project Area No. 1 and the Indian Canyon/San Rafael project, located outside of either Merged Project Area No. 1 or Merged Project Area No. 2. H. The three projects described in Finding G of this resolution, 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 181 affordable units, including 130 units restricted for very low income households. I. The creation or preservation of any of the 51 affordable units outside Merged Project Area No. 1 will be of benefit to Merged Project Area No. 1 and the community and that 3 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 City Council of the City of Palm Springs: 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 2010-11, 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 day of June, 2010, by the following vote. AYES: Members NOES: ABSENT: MAYOR (SEAL) Attest By- CITY CLERK RESOLUTION NO. RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS MAKING CERTAIN FINDINGS WITH RESPECT TO THE 2010-11 DEPOSIT TO THE LOW AND MODERATE INCOME HOUSING FUND The Community Redevelopment Agency of the City of Palm Springs finds: A. 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 that 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. B. 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. C. For the fiscal year 2010-11, 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. D. 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. E. The Agency's Five-Year Implementation Plan described a need to create 256 affordable housing units between 2009-10 and 2013-14, including 58 very-low income units. F. The Agency has assisted the Vista Sunrise Special Needs Apartments, Coyote Run II Apartments, and Cottonwood/Chuckwalla single family residential project resulting in the creation of 156 affordable to low and very low income families over the previous 5 years; G. Additional affordable housing projects that have been proposed and will require Agency assistance are the CVHC Rosa Gardens Apartment Project and the Vista San Jacinto Apartments, both located in Merged Project Area No. 1 and the Indian Canyon/San Rafael project, located outside of either Merged Project Area No. 1 or Merged Project Area No. 2. H. The three projects described in Finding G of this resolution, 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 181 affordable units, including 130 units restricted for very low income households. I. The creation or preservation of any of the 51 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, as follows: Section 1. Deposit. For Fiscal Year 2010-11, 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. Budget and Appropriate. The Agency's 2010-11 budget includes a combined $3,498,200 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 day of June, 2010, by the following vote: AYES: Members NOES: ABSENT: STEPHEN P. POUGNET, CHAIRMAN, Community Redevelopment Agency of the City of Palm Springs (SEAL) Attest. By: SECRETARY, Community Redevelopment Agency of the City of Palm Springs