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Home My WebLink About2017-08-22 - AGENDA REPORTS - FIVE-YEAR EXTENSION OF THE TIME PERIOD FOR THE DEV (2)Agenda Item: 16 CITY OF SANTA CLARITA Q:° AGENDA REPORT CONSENT CALENDAR 7, CITY MANAGER APPROVAL: 1 j4 _ " DATE: August 22, 2017 SUBJECT: FIVE-YEAR EXTENSION OF THE TIME PERIOD FOR THE DEVELOPMENT OF PROPERTY FOR AFFORDABLE HOUSING DEPARTMENT: Community Development PRESENTER: Erin Lay RECOMMENDED ACTION City Council adopt a resolution approving a five-year extension of the time period required for the development of property for the use of affordable housing. BACKGROUND In 2010, the Redevelopment Agency of the City of Santa Clarita (Redevelopment Agency) acquired two parcels of land on Newhall Avenue with the intent to use them for future affordable housing projects. The parcels were purchased using funds from the Redevelopment Agency's Low- and Moderate -Income Housing Fund. On June 29, 2011, the Governor signed into law ABX1 26 (Dissolution Act). A lawsuit against the bill was filed by the California Redevelopment Agency, the League of California Cities, and the City of San Jose and Union City. In December 2011, the California Supreme Court upheld the Dissolution Act, dissolving redevelopment agencies in California and implementing a variety of processes and time -lines for the affairs of the agencies to wind down. Subsequently, the City of Santa Clarita (City) became the Housing Successor to the former Redevelopment Agency, with responsibility for carrying out housing -related activities and functions as allowed by California Redevelopment Law. In 2012, in its capacity as the Housing Successor, the City submitted a Housing Asset Transfer Plan (HAT) to the State of California Department of Finance (DOE) to formalize the transfer of the two properties from the former Redevelopment Agency to the Housing Successor. The HAT was approved by DOE on August 31, 2012. California Civil Code (CCC) 33334.16 provides that the Housing Successor should initiate activities consistent with the development of housing for low- and moderate -income households within five years of the date the HAT was approved by DOE, or return to the City Council to Page 1 Packet Pg. 151 extend the deadline for an additional five years. The two properties transferred to the Housing Successor through the approval of the HAT were: • Caltrans parcel: 23610 Newhall Avenue (APN 2833-016-900) • Jang parcel: 23652 Newhall Avenue (APN 2833-016-901) The Caltrans parcel was sold to a partnership of National Community Renaissance of California and Newhall Avenue Housing Partners for $1 as part of the Disposition and Development Agreement (DDA) for the development of Three Oaks Apartments. The DDA was approved by the City Council on June 9, 2015. Construction on Three Oaks was completed in July 2017, meeting the requirement of CCC 33334.16. Activities to develop housing for low- and moderate -income households on the Jang parcel have not yet commenced. The site is severely constrained by its size, neighboring uses, and the limited amount of funds available to subsidize affordable housing related activities. Staff is investigating what housing -related development options may be feasible on the property. The deadline for initiating the required affordable housing activities on the Jang parcel, or for extending the deadline, is August 31, 2017. If the City Council does not extend the deadline for the additional five years, the Housing Successor will be required to sell the property and deposit any funds, minus the costs of sale, into the Low- and Moderate -Income Housing Fund. The acquisition price of the Jang parcel was $734,000; however, it is anticipated that the property will not sell for the acquisition price, due to the development constraints on the land. If the Housing Successor extends the deadline for five additional years and then determines that the property is not feasible for any affordable housing related activities, the City retains the right to sell the property at any time and deposit any funds realized from the sale into the Low- and Moderate -Income Housing Fund. ALTERNATIVE ACTION Other actions as determined by City Council. FISCAL IMPACT There is no fiscal impact by this action. ATTACHMENTS Resolution Site Map Page 2 Packet Pg. 152 16.a RESOLUTION 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA CALIFORNIA, APPROVING A FIVE-YEAR EXTENSION OF THE TIME PERIOD FOR THE DEVELOPMENT OF PROPERTY, AS REQUIRED IN CALIFORNIA CIVIL CODE 33334.16 WHEREAS, in June 2010 the Redevelopment Agency of the City of Santa Clarita (Redevelopment Agency) and the City of Santa Clarita (City) acquired property located at 23610 Newhall Avenue (APN 2833-016-900), commonly called the Caltrans parcel, with the intent to use it for afuture affordable housing project; and WHEREAS, in December 2010, the Redevelopment Agency and the City acquired property located at 23652 Newhall Avenue (APN 2833-016-901), commonly called the Jang parcel, with the intent to use it for a future affordable housing project; and WHEREAS, The Caltrans parcel and the Jang parcel were acquired in part using funds from the Redevelopment Agency's Low- and Moderate -Income Housing Fund; and WHEREAS, on June 14, 2011, the Planning Commission of the City of Santa Clarita approved the entitlements for a 30 -unit, 100% affordable rental housing development on the Caltrans parcel; and WHEREAS, On June 29, 2011, the Governor signed into law ABX1 26 (Dissolution Act); and WHEREAS, in December 2011, the California Supreme Court upheld ABX 1 26, dissolving redevelopment agencies in California and implementing a variety of processes and time -lines by which the affairs of the Agency would wind down; and WHEREAS, the City became the Housing Successor to the former Redevelopment Agency with responsibility for carrying out housing -related activities and functions as allowed by California Redevelopment Law; and WHEREAS, in 2012, the City, it its capacity as the Housing Successor, submitted a Housing Asset Transfer Plan (HAT) to the State of California Department of Finance (DOE) to formalize the transfer of the Caltrans and Jang parcels from the former Redevelopment Agency to the Housing Successor; and WHEREAS, on August 31, 2012, the DOE approved the HAT which transferred the Caltrans and Jang parcels into the control of the Housing Successor; and WHEREAS, California Civil Code (CCC) 33334.16 provides that the Housing Successor should initiate activities consistent with the development housing for low- and moderate -income households on those properties within five years of the date the HAT was approved by the DOE, or return to the City Council to extend the deadline for an additional five years; and WHEREAS, the deadline for the initiation of activities consistent with the development of housing affordable to low- and moderate -income households is August 31, 2017; and Packet Pg. 153 WHEREAS, in June 2015, the City Council approved a resolution authorizing a Disposition and Development Agreement (DDA) with a partnership of National Community Renaissance of California and Newhall Avenue Housing Partners, L.P. (Partnership) for the development of 100% affordable housing on the Caltrans parcel; and WHEREAS, the DDA conveyed the Caltrans parcel to the Partnership for $1, authorized a residual receipts loan of $303,361 in Community Development Block Grant funds to the Partnership, and authorized a grant of $3.8 million in Low- and Moderate -Income Housing Funds to the Partnership; and WHEREAS, development on the Caltrans parcel began in March 2016 and was completed in July 2017, meeting the requirements outlined in CCC 33334.16; and WHEREAS, development on the Jang parcel has not commenced, requiring the City Council to extend the time period for development on the property for an additional five years, as outlined in CCC 33334.16. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The deadline to initiate the activities required in CCC 33334.16 is hereby extended for five years to the date of August 31, 2022. SECTION 2. The Resolution shall be effective upon adoption. The City Clerk shall certify to the adoption of this Resolution, and certify this record to be a full, complete, and correct copy of the action taken. PASSED, APPROVED, AND ADOPTED this 22nd day of August, 2017. MAYOR ATTEST: CITY CLERK DATE: 16.a Packet Pg. 154 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 22nd day of August, 2017, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 16.a Packet Pg. 155 flet �.-•� Y ,e� 411 Three Oaks Family Ap ✓Jf � monmer c nra,avaReell) p 5P J Y� h Jang Parcel ror� Y fib