HomeMy WebLinkAbout2010-09-14 - RESOLUTIONS - AMENDED 5 YR NEWHALL RDA PLAN (2)RESOLUTION RDA 10-12
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SANTA CLARITA ADOPTING THE AMENDED
FIVE YEAR IMPLEMENTATION PLAN FOR THE
NEWHALL REDEVELOPMENT PROJECT
WHEREAS, Section 33490(a)(1)(A) of the California Community Redevelopment Law,
Health and Safety Code 33000 et.ses ("Law") requires all redevelopment agencies to adopt an
Implementation Plan every five years, following a noticed public hearing, and
WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the
specific goals and objectives of the agency for the project area, the specific programs, including
potential projects, and estimated expenditures proposed to be made during the next five years,
and an explanation of how the goals and objectives, programs, and expenditures will eliminate
blight within the project area and implement the requirements of Sections 33334.2, 33334.4,
33334.6, and 33413 of Law, and
WHEREAS, on June 26, 2007, the Redevelopment Agency of the City of Santa Clarita
("Agency") adopted -the Five Year Implementation Plan for the Newhall Redevelopment Project
for the 2007-08 through 2011-12 planning period following a duly -noticed public hearing; and
WHEREAS, the Agency has conducted a midterm review public hearing and prepared an
Amended Five -Year Implementation Plan, including an Amended Ten Year Affordable Housing
Compliance Plan, for the Newhall Redevelopment Project, for the 2007-08 and 2011-12 planning
period, contained herewith as Exhibit A, and
WHEREAS, the Agency has conducted a duly noticed public hearing.
NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita does
resolve as follows:
SECTION 1. The Amended Five -Year Implementation Plan for the Newhall
Redevelopment Project is hereby adopted in the form attached herewith as Exhibit A.
SECTION 2. The Agency Secretary shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND AD
ATTEST(^
? (r -
AGENCY SECRETARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa
Clarita at a regular meeting thereof, held on the 14th day of September 2010, by the following
vote: ,
AYES: AGENCYMEMBERS: Ender, Kellar, McLean, Ferry, Weste
NOES: AGENCYMEMBERS: None
ABSENT: AGENCYMEMBERS: None
2
7�W6-�
AGENCY SECRETARY
1
1
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
REDEVELOPMENT AGENCY RESOLUTION
City Clerk of the City of Santa Clarita, do hereby
certify that this is a true and correct copy of the original Resolution RDA 10-12 adopted by the
Redevelopment Agency of the City of Santa Clarita, California on September 14, 2010, which is
now on file in my office.
Witness my ,hand and seal of the City of Santa Clarita, California, this _ day of
2010.
Agency Secretary
By
Deputy Agency Secretary
1
91
FIVE YEAR
IMPLEMENTATION PLAN
REDEVELOPMENT AGENCY OF THE CITY
OF SANTA CLARILTA
FT 2007-08 THROUGH 2011-
t,
Adopted June 26, 2007.
Cl
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LegalAuthority....................................................................................................................... 1
C:. "_. .... . . . . . . .. . . . . .. . . . . . . . .. . . . .. .. .. . . . .
HousingProduction...................................................... :....................................................... 13
Replacement Housing Needs................................................................................................. 16
Low and Moderate Income Housing Fund.............................................................................. 16
Housing Set -Aside Expenditures........................................................................................... 19
Housing Units Constructed During Prior Implementation Plan Without Housing Set -Aside
Funds....................................................................... ........................................................... 19
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:bout. t.hi.s T,Mpl=..�;rc;ntati_on Plan
Every five years, redevelopment agencies are required to adopt an implementation plan for' each redevelopment
project area that establishes five-year operational and financial work programs for carrying out the redevelopment
and affordable housing responsibilities of a redevelopment agency.
Updating an earlier version adopted on June 26, 2007, this amended Five Year Implementation Plan
("Implementation Plan") for the Redevelopment Agency of the City of Santa Clarita ("Agency") covers the five-year
planning . period for fiscal years ("FY") 2007-08 through 2011-12 for the Newhall Redevelopment Project Area
("Project Area"). This Implementation Plan also contains the Agency's Housing Compliance Plan ("Housing
Compliance Plan") for meeting the Agency's affordable housing requirements for the 10 -year compliance period
(FY 2007-08 to 2016-17), including obligations for producing, replacing, and expending certain funds for
affordable housing.
Legal Authority
In 1993, the Legislature passed Assembly Bill 1290 (Chapter 942, Statutes of 1993), which enacted the California
Community Redevelopment Law Reform Act and made changes to state redevelopment law (Health and Safety
Code §33000 et seq.) ("CRL") in an effort to increase both the effectiveness and accountability of redevelopment
agencies. One notable statutory change was the addition of Article 16.5 (§33490 et seq.) to the CRL, which
required redevelopment agencies to adopt five year implementation plans for all project areas on or before
December 31, 1994, and every five years thereafter. CRL §33490(a) requires that the implementation plan
contain:
• The Agency's goals and objectives, programs, and projects within the Project Area for the next five years,
including estimated expenditures.
• An explanation of how the goals and objectives, programs, projects, and expenditures will eliminate blight and
promote affordable housing within the Project Area.
• A specific location that addresses the Agency's housing responsibilities, including the Agency's Low and
Moderate Income Housing Fund ("Housing Fund") and the Agency's requirements for producing and replacing
affordable housing.
Given these required contents, the implementation plan may naturally serve as more than just a compliance
document to adhere to the legal mandates of State law. The implementation plan provides the Agency with an
opportunity to thoughtfully craft a purposeful and deliberate strategy for the next five years.
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Who, What., Wlier-e, When, and Why
The earliest permanent settlement in the Santa Clarita Valley, Newhall's origins began as an Indian trading
center. During the heyday of the western rail yard network, Newhall was a popular flag stop with general stores,
saloons, and churches. Its reputation as a western town became recognized by the film industry, as a popular
site for silent screen movies, and home to
the former 300 -acre ranch of silent film star
William S. Hart, now a County park and ;Redevelopment Plan History
museum.
Eventually, newer subdivisions in the valley
were developed and Newhall began to
tarnish, leading to the City's efforts to take a
closer look at revitalization of the area shortly
after its incorporation in 1987. The Agency
was created by the Santa Clarita City Council
on November 28, 1989, which later initiated
the Newhall Redevelopment Plan on July 8,
1997.
Original Adoption ........
Amendment No. 1 .......
Amendment No. 2.......
Amendment No. 3.......
... July 8, 1997 (Ord. 97-12)
June 26, 2007 (Ord. 07-05)
. May 13, 2008 (Ord. 08-06)
..June 9, 2009 (Ord. 09-07)
Plan Limits
Commence Eminent Domain' ....................... July 9, 2011
Plan Effectiveness ......................................... July 8, 2028
Receive Tax Increment ........... .. July 8, 2043
The 913.63 -acre Project Area includes retail, industrial, public and residential properties generally along the
Lyons Avenue and former San Fernando Road corridors, as well as the Downtown Newhall Specific Plan Area.
Amenities in the area include the Newhall Metrolink station, access to Interstate 5 and Highway 14, and a rich
fabric of neighborhoods and businesses.
i Pursuant to Section 321 of the Redevelopment Plan, most residential property is excluded from eminent domain by the Agency.
NEWHALL REDEVELOPMENT PROJECT
_ 0 0.24 0,5 0,75 1
s Newhall Redevelopment ProteclAfea � � �- f_^ � Iry or
Sources: -ESR) and Cily Cis I7e,cr�rtrri�rrf
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i'F )EVE.i.J0P'MENT 1�(, "`)M E_,T '�F�I:v`PS
.he Pu.l:li.c Value & Benefit Of RedE:ve1.cpmE:r1t
During. the current planning period, the Agency has completed several redevelopment, affordable housing and
planning projects pursuant to the goals of this Implementation Plan, including the following:
2008 Tax Allocation Bonds. On June 12, 2008, the Agency issued $8,850,000 of tax allocation housing bonds
and $29,860,000 of tax allocation nonhousing bonds. Proceeds from the 2008 Bonds have been used to finance
some of the costs of the Old Town Newhall Library Project, redevelopment of the Lyons/Main Gateway, and
remain available to fund other _..._._......__._, _......__-
implementation activities of the Agency i
during the current Implementation Plan Newhall Library Project
period. i The Redevelopment Agency has completed acquisition of
Lyons/Main Gateway Acquisition.
Together with the developer mitigation fee
revenue, the Agency used the 2008
housing bond proceeds to acquire a 1.7-
acre block of property at the southeast
corner of Lyons Avenue and Main Street in
November 2009. The ultimate use of the
block has not yet been determined,
although a portion of the site will contain
several affordable housing units
commensurate with the amount of Agency
funds invested into the project.
Main Street Realignment. The Agency i
and City Public Works Department }
undertook streetscape improvements. and
traffic calming measures along Railroad
Avenue and Main Street to enhance
downtown Newhall. The project resulted in
additional on -street parking on Main Street, improved traffic flows through Newhall via Railroad Avenue
improvements, and streetscape improvements, including pedestrian friendly sidewalks, new landscaping, street
furniture, and a new storm drain to create a more attractive Main Street environment.
Acquisition of Former Caltrans Oak Creek Park and Ride. In July 2010, the Agency approved the acquisition
of the 1.6 -acre Oak Creek Park and Ride facility to be utilized for an affordable housing development south of
downtown Newhall. The purchase was funded by Neighborhood Stabilization Program funds obtained from the
Federal stimulus program. The Agency anticipates proceeding with this project over the next two years.
Lewis Property Acquisition. In June 2010 the Agency approved acquisition of property located at the
intersection of Railroad Avenue and Lyons Avenue. The purchase was funded with Redevelopment non -housing
funds. The site is directly adjacent to the new public library under construction and the Lyons/Main Gateway
Block. The site will be available for a future commercial development.
Sierra Gateway Conceptual Plan. In fiscal year 2009-10, The Agency and City Planning Division undertook a
preliminary design and fiscal feasibility study for the coordinated planning and development of several parcels of
property located at the southwest corner of Newhall Avenue and Sierra Highway, along Highway 14. Integrating
development of the area would allow the most efficient use of the land in light of environmental and infrastructure
needs, leading to the creation of a high-quality gateway into the Project Area. The study was completed and
presented to the City Council in June 2010, with a recommendation that a preferred mixed use alternative be
presented to the property owners for consideration as well as other interested developers if appropriate.
several properties and relocation of businesses to consolidate
parcels for construction of a new public library. The
architectural design of the Old Town Newhall Library was
approved by the Agency and City Council in May 2010.
Construction of the new facility is expected in Fall 2010 with an
opening in Spring 2012.
roundabout for the intersection of Newhall Avenue, Main Street, and 5th Street. The roundabout will eliminate a
traffic signal and improve traffic circulation at the southern entrance to Old Town Newhall. It will also help provide
connectivity between Old Town Newhall and William S. Hart Park. The City of Santa Clarita has received grant
funding to assist with a portion of the future construction of the roundabout which is expected in Fiscal Year 2011-
12.
Building Improvement Grant Program. In 2009, the Agency and the City's Economic Development Division
obtained $300,000 of Federal Reinvestment and Recovery Act funds to offer grants to eligible Project Area
commercial building owners to upgrade structural and aesthetic conditions in Old Town Newhall. Grants are
generally limited up to $55,000 per building. The Agency has received 19 applications for consideration and will
select the recipients of these grants in late September 2010.
Newhall Redevelopment Small Business Grant Program. The Agency allocated $100,000 for grants of up to
$5,000 to eligible small businesses in the Project Area. Grant funds may be employed to assist with financial and
business management needs as part of the City's business retention and expansion efforts. A total of 20 grants
have been awarded to date.
Branding of Old Town Newhall. In conjunction with the City's Economic Development Division, the Agency
assisted in the promotion of Project Area properties to prospective developers and commercial businesses,
including developing marketing materials for the annual conference of the International Council of Shopping
Centers.
Eminent Domain Authority Extended. In June 2009, the City Council and Agency extended the duration of
eminent domain authority for commercial properties by 12 years, thereby allowing the Agency to further its efforts
to assemble and consolidate land within the Project Area. '
SERAF Redevelopment Loss. Due to the State's actions to balance their FY 2009-10 Budget, the Legislature
and the Governor approved budget bill ABX4-26 which authorizes $2.05 billion from local redevelopment funds,
including $1.7 billion in FY 2009-10 and $350 million FY 2010-11 to be paid to the County Supplemental
Educational Revenue Augmentation Fund ("SERAF").
The Agency is required to pay a total of $1,366,820 to the SERAF over the final two years of this Plan, with
$1,133,646 due by May 10, 2010 and $233,174 due by May 10, 2011. The California Redevelopment Association
("CRA") filed a lawsuit challenging the SERAF payments in October 2009, and is appealing the Court's initial
decision to uphold the SERAF payment. In the meantime, under advice of the CRA and Agency special counsel,
the Agency did remit payment for the first installment in May 2010 and will be monitoring this case to determine
whether the payment(s) will continue to be required.
ABX4-26 provides that an agency may use certain funds allocable to the Housing Fund to make such payments,
however those amounts are required to be repaid by the end of the fifth fiscal year in which the borrowing occurs
or be subject to a 30 percent housing set-aside mandate for the remaining life of the Redevelopment Plan.
Additionally, pending the final outcome of CRA's lawsuit, the Agency may extend the duration of the
Redevelopment Plan by one year as a result of these payments. The Agency may utilize these provisions of
ABX4-26 in making any required payments.
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Communi.t.v R yin cst.ment and P.crvi.tr ].i.zr ti.o
Section 200 of the Redevelopment Plan for the Project Area establishes a variety of goals for redevelopment that
frame the near term redevelopment objectives for the Implementation Plan period.
Build a Place to Appreciate. Create an attractive Main Street
environment to attract new shoppers and businesses. Eliminate
blighting conditions and prevent the acceleration of blight in and
about the Project Area. Upgrade the physical appearance of the
Project Area. Encourage the phasing out of incompatible, and/or
non -conforming land uses from the Project Area.
Put the Base in Place. Maintain and capitalize on the visibility
WfY
and access associated with through traffic. Improve the parking
supply. Promote the design and construction of a more efficient
and effective circulation system.
Create a Regional Destination. Enhance the role of Newhall as
a community center. Pursue opportunities for special facilities
that attract a wide visitor base.
yn t
Housing for All Families. Promote the rehabilitation of existing
housing units now affordable to persons and families of low- and
moderate- income, and promote the construction of replacement
1
housing units where existing units cannot be feasibly
rehabilitated. Provide replacement housing as required by law
when low- or moderate -income persons or families are lost to the
low- or moderate -income housing market.
Nurture Development of a Unique Shopping Area. Expand the
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convenience and comparison/specialty economic niches.
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Consolidate parcels as needed to induce new or expanded,
a.
SHOP
centralized,
commercial development in the Project Area.
Make it Happen with Partnerships. Promote the comprehensive
planning, redesign, replanning, reconstruction and/or
rehabilitation in such a manner as to achieve a higher and better
utilization of the land within the Project Area. Use redevelopment
`'� authority to promote development that is consistent with the
General Plan and the Unified Development Code. Provide for
adequate size parcels and required public improvements to
induce new construction and/or rehabilitation by private
enterprise. Mitigate potential relocation impacts resulting from
changes in Project Area land use from non -conforming and
dilapidated uses to development in conformance with the General
Plan, and the Unified Development Code. Encourage the
cooperation and participation of Project Area property owners,
public agencies and community organizations in the elimination
of blighting conditions and the promotion of new or improved
development in the Project Area.
Stimulate Economic Growth. Promote the development of new
and diverse employment opportunities.
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Show them How it's Done. Establish programs to promote
private sector investment. Remove economic impediments to
land assembly and in -fill development in areas that are not
properly subdivided for development or redevelopment. Provide a
procedural and financial mechanism by which the Agency can
assist, complement and coordinate public and private
development, redevelopment, revitalization and enhancement of
the community.
Restore its Legacy. Create an attractive, memorable image that
expresses Newhall's history and character. Develop programs
and incentives for the rehabilitation of old, obsolescent, and
,., deteriorating structures in the Project Area.
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Over the five year planning period, the Agency plans to implement the following redevelopment projects and
programs. The list below describes the projects proposed, what blighted conditions would be eliminated,
approximate costs, and the Redevelopment Plan goals that would be achieved2.
Project/Description
Preliminary Goals
Cost Estimates Achieved
Old Town Newhall Library Relocation/Expansion (North Civic Site) $25,000,000
The Agency's largest project following the completion of the Downtown
Newhall Specific Plan, the Old Town Newhall Library project relocates and
expands an important public facility for the Project Area and the
surrounding community, not to mention anchor Downtown Newhall
yx
revitalization at the north end of Main Street at Lyons Avenue. To date,
the Agency has assembled several parcels, relocated prior tenants, and
begun site clearance and prep work. Construction is anticipated to begin
in Fall 2010, with the new facility open for use by mid 2012.
Completion of this project would correct inadequate public improvements,
.
factors hindering economically viable use, incompatible uses, and high
vacancies/low lease rates.
111;1
Timeframe............................................................. 2008-09 through 2011-12
I,S'v"1li:�Y
2 Costs are subject to change, and completion of these projects may require future action by the Agency. e
Project/Description
Lyons/Main Gateway — Commercial Component
The Agency and City own a 1.7 acre site at the southeast corner of Main
Street and Lyons Avenue, and are anticipating development of both
affordable housing and supporting commercial uses to create an
integrated mixed use development which will anchor this end of Old Town
Newhall. Over the next two years, the Agency will proceed with relocation
and site clearance, and may be soliciting development proposals. for
redevelopment of the site.
Completion of this project would correct inadequate public improvements,
factors hindering economically viable use, incompatible uses, and high
vacancies/low lease rates.
Timeframe............................................................. 2009-10 through 2011-12
North Newhall Redevelopment
The Agency suspended work on a specific plan pending resolution of a
preferred railroad crossing at Lyons Avenue or elsewhere to connect
Newhall to developing areas to the east of the railroad right of way. While
the timing of this development is unknown at this time, the Agency may
need to facilitate completion of planning and public works projects
necessary to provide accessibility to North • Newhall, while protecting
sensitive uses nearby.
Completion of this project will address factors hindering economically
viable use and correct inadequate public improvements.
Timeframe ........... ................................................. .2007-08 through 2011-12
Preliminary
Cost Estimates
Unknown
Unknown
Goals
Achieved
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Project/Description
Main Street (formerly San Fernando Road)/Railroad Ave. Streetscape
This multi -phased project involved the restriping of Main Street (formerly
San Fernando Road) to calm traffic through Old Town Newhall and direct
more vehicles onto Railroad Avenue. Additional streetscape
improvements are proposed in Phase II, which is located on Main Street
from the centerline of 8th Street to the intersection of Lyons Avenue, and
on Lyons Avenue from Railroad Avenue to Walnut Street. The
improvements include installation of storm drain facilities, paving, curb,
gutter, sidewalk, signing, striping, access ramps, wood boardwalk,
walkway pavers, planters, benches, planning and irrigation, streetlights,
signal modification, and other decorative features.
Completion of this project will address factors hindering economically
viable use and correct inadequate public improvements.
Timeframe............................................................ .2007-08 through 2011-12
Sierra Highway/Newhall Avenue Concept Plan
The Agency and City are looking to work with four separate owners of
property at the southwest corner of Sierra Highway and Newhall Avenue to
formulate an integrated concept plan for the redevelopment of this
southern gateway into the project Area. The effort is intended to maximize
utilization of the site in context of environmental conditions.
Completion of this project will address factors hindering economically
viable use.
Timeframe............................................................ .2010-11 through 2011-12
1
Preliminary
Cost Estimates
$5,000,000 for
both Phases I
and II
Unknown
Goals
Achieved
CLLA F4
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ES
INVI ;T
Preliminary Goals
Project/Description Cost Estimates Achieved
Magic Mountain Parkway and Railroad Avenue Project Unknown
The Agency may entertain proposals for redevelopment of this gateway
into the Project Area from prospective developers. At one time, an auto
dealership was considered for this site, but other uses are considered
more viable today. This site has good visibility from two major arterials and
presents one of the larger redevelopment opportunities in the Project Area.
Completion of this project will address factors hindering economically
viable use.
Timeframe............................................................ .2010-11 through 2011-12
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Total Preliminary Cost Estimate
iI
$30,000,000
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Over the five year planning period, the Agency plans to implement the following affordable housing projects and
programs3. The list below describes the projects proposed, what blighted conditions would be eliminated,
approximate costs, and the Redevelopment Plan goals that would be achieved. Additionally, the Agency has
estimated the number of affordable units that may be assisted by each project and program listed.
Project/Description Preliminary Goals
Cost Estimates Achieved
Lyons/Main Gateway — Housing Component $5,498,243
�
The Agency and City acquired this block for $6.196 million in November expendedin
for
2009 with 2008 Housing Bond Proceeds and other City resources. It is
anticipated that this acquisition cost will lead to the development of Purchase of site
approximately 30 very low income units that may be developed as part of $1,075,000 for
a larger mixed use project on this site. relocation and
Timeframe............................................................. 2009-10 through 2011-12 demo/site
cleanup
Newhall Avenue Development $4,500,000
In July 2010, the Agency authorized the purchase of a 1.6 acre parcel from
Caltrans to develop affordable housing. The Agency is currently working
with a developer proposing to acquire a nearby parcel and construct
approximately 40 very low income units using both parcels. The project is
currently in the early stages of development programming; final design and
financing terms are expected to be forthcoming over the next year with the
goal of commencing construction in early 2012.
Timeframe............................................................. 2010-11 through 2012-13
Total Preliminary Cost Estimate $11,073,243
3 Costs are subject to change, and completion of these projects may require future action by the Agency.
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m ,rl Year Outlook of Aff.o.r.dable Housing
The CRL requires all redevelopment agencies to prepare and adopt affordable housing compliance plans on a ten
year cycle, with updates corresponding with adoption of their five year implementation plans. The housing
compliance plan must identify how a redevelopment agency will achieve the affordable housing production
requirements for its redevelopment project area. The housing compliance plan must be consistent with the
jurisdiction's housing element and must also be reviewed and, if necessary amended at least every five years in
conjunction with the cyclical preparation of the housing element or the agency's five-year implementation plan.
This section of the Implementation Plan, referred to as the "Housing Compliance Plan", addresses specific
requirements in the CRL with respect to prior affordable housing activities and the anticipated housing program
for the current ten-year period (FY 2007-08 to 2016-17) ("Compliance Period"). Additionally, the Housing
Compliance Plan evaluates the Agency's affordable housing requirements for the life of the Redevelopment Plan.
Redevelopment agencies use implementation plans to establish ten year objectives to achieve compliance with
State law in its affordable housing programs. These housing goals generally fall into three categories:
• Housing Production — based on the number of housing units constructed or substantially rehabilitated over a
ten year period, a redevelopment agency is to ensure that a percentage of these units are affordable to low -
and moderate -income households.
Replacement Housing — legal obligation for redevelopment agencies to ensure that any housing units
destroyed or removed as a result of an agency redevelopment project are replaced within four years.
Expenditures by Household Types — are specific percentages (determined by Census and the City's fair share
of the Regional Housing Needs Assessment) on the amount of housing set-aside funds an agency must
spend over a ten year period on housing affordable to very low-income households, low-income households,
and housing for residents under the age of 65.
Housing Production
This Housing Compliance Plan identifies all new residential construction or substantial rehabilitation that has
occurred within the Project Area since adoption of the Plan in order to determine affordable housing production
needs. It accounts for past residential construction and substantial rehabilitation, and includes projects of new
dwelling units that may be constructed or substantially rehabilitated during the current ten-year planning period
which extends through June 30, 2017.
Table 1 below summarizes the Agency's past production activities including the first five years of the current
housing compliance period and identifies the projected production requirements for the Compliance Period and
over the life of the Redevelopment Plan. Historical construction and substantial rehabilitation statistics were
provided by the Agency. The number of affordable units required is based on statutory thresholds, and the
Agency is responsible for ensuring that the appropriate number of affordable units is created during a ten year
period.
It should be noted that neither the housing units nor projections for future dwelling units include any units to be
developed by the Agency. However, the Agency will continue to cooperate with and provide assistance and
incentives to private developers, in order to fulfill the Agency's affordable housing production requirements.
Pursuant to Section 33413(b) of the CRL not less than 15 percent of the units produced by persons or entities
other than the Agency must be affordable to low- and moderate -income households. Not less than 40 percent of
the required affordable units must be restricted for very low-income households. The Agency's affordable
housing production requirements' are indicated in Table 1 below. In addition, to satisfy the Agency's production
requirements, new .or substantially rehabilitated units must have recorded 45 -year income restrictions or
covenants for rental units and 55 -year income restrictions or covenants for owner -occupied units. The affordable
housing units may be constructed inside or outside of the Project Area, but units outside the Project Area may
1
income multifamily units.
Table 1: Actual and Projected Housing Production Needs by Time Period
Time Period
Actual/Assumed Housing Units
Required
1,006
Constructed and Substantially
Affordable Units /1
Rehabilitated in Project Area
Total Very Low
1997-98 to 2006-07 /2
14
2 1
10 Year Forecast
70
11 4
2007 08 to.2011 12
0
0 0
2012-13 to 2016-17 /3
70
11 4
2017-18 to 2027-28 /4
922
138 55
Redevelopment Plan Duration
(1997-98 to 2027-28)
1,006
151 60
Notes:
1/ All required units based on 15 percent of actual/assumed units developed by entities
other than Agency. (Production requirement for units developed with some financial
assistance by the Agency is 30 percent). Of the 15 percent requirement, 40 percent
are to be affordable to very low-income households.
2/ Includes 14 condominium units on Walnut Court constructed in 2002.
3/ Assumes 40 units privately developed in conjunction with the redevelopment of the
Newhall Avenue development site currently being acquired by the Agency. These
units are expected to be completed in 2013. Another 30 units are assumed to be
developed by parties other than the Agency at the Lyons/Main Gateway site
currently owned by the Agency.
4/ Assumes additional development of market rate and affordable housing in the
Project Area, consistent with. the City's Housing Element. Includes 682 units in Old
Town Newhall, 90 units at the southeast corner of Lyons Avenue and Interstate 5
and 150 units on an 11.6 acre shopping center property on the south side of Lyons
Avenue.
As shown in the above table, the Agency anticipates a need for 11 affordable units (including 4 very low-income
units) to fulfill its production goals for the ten year period, and 151 affordable units (including 60 very low-income
units) over the duration of the Redevelopment Plan. Fulfillment of these production goals is shown on the table
below.
Planning and Period Production Needs
Table 2 below summarizes the production goals over various time periods as required by the CRL. The number
of affordable units required is based on statutory thresholds, and the Agency is responsible for ensuring that the
appropriate number of affordable units is created during the Compliance Period.
Table 2: Fulfillment of Affordable Housing Production Requirements by Time Period
Time Period
Units
Units
Remaining Requirement
(1997-98 to 2027-28)
Required
Produced
/(Surplus)
(see previous
/1
table)
Period Cumulative
Total Very
Total Very
Total Very
Total Very
Low
Low
Low
Low
1997-98 to 2006-07 /2
2 1
106 2
(104) (1)
(104) (1)
Canyon Country Seniors
100 0
Fountain Glen
6 2
1O.Year. Forecast'`
11 4
0 0
11 4
(93) 3
(2007-.'08 to 2016-17).,...,
2017-18 to 2027-28
138 55
0 0
138 55
49 58
Red. Plan Duration
151 60
104 1
47 59
49 58
(1997-98 to 2027-28)
Notes:
1/ Includes units produced to date, but excludes units that may be constructed in the
future.
2/ The Canyon Country Senior project is located outside the Project Area and has 200
moderate -income units. The Fountain Glen apartments are also located outside the
Project Area, and have 6 moderate -income units and 2 very low-income units. Both
projects have 55 year affordability covenants, and therefore may be used to. meet the
Project Area's housing production needs on a 2-for-1 unit basis.
As shown in the above table, due to a surplus of low- and moderate -income units produced to date, the need for
affordable housing over the next ten years is limited to three (3) very low-income units cumulatively by the end of
2016-17. The Agency has surplus units.produced prior to 2007-08 that may be used to meet the current planning
period's production need based on the projections in Table 1. Over the remaining duration of the Redevelopment'
Plan, the Agency projects that a total of 58 very low-income units may still be needed based on the projected level
of new housing development anticipated to occur within the Project Area.
As described earlier in this Implementation Plan, the Santa Clarita Redevelopment. Agency anticipates
development of affordable housing projects in the Project Area over the next 10 years that may result in sufficient
units to meet the housing production goal, thereby achieving these housing production goals for the Project Area.
Fulfillment of the projected housing needs is specifically anticipated to be accomplished through the completion of
the following programs:
• Newhall Avenue Development. The Agency is currently working with a nonprofit developer to construct
approximately 40 very low-income units at this former Caltrans property and another .nearby parcel.
Presently, the project is being formulated and financing for the construction (which may include 9 percent
tax credit financing among other sources) still must be secured.
Lyons/Main Gateway. The Agency and City own a 1.7 -acre block on the southeast corner of Lyons
Avenue and Main Street and hopes to facilitate the development of a mixed-use project with
approximately 30 units of affordable housing.
affordable housing projects and programs beyond the two mentioned above. However, over the life of the
Redevelopment Plan, the Agency does anticipate that additional affordable housing will be required and
will work with City, State, and Federal program resources to encourage the development of such housing
in the future.
Replacement Housing Needs
The CRL requires that whenever dwelling units that house low- and moderate -income households are destroyed
as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement
units are constructed or substantially rehabilitated. These units must provide at least the same number of
bedrooms destroyed, and 100 percent of the replacement units must be affordable to the same income categories
(i.e. very low, low, moderate) as those removed. The Agency receives full credit for replacement units created
inside or outside of the Project Area.
According to Agency staff and a review of the Agency's annual reports to the Department of Housing and
Community Development, no units have been destroyed by Agency activities since the Project Area was
established in .July 1997. Additionally, no units are expected to be destroyed or removed as a part of an Agency
project during the planning period or over the life of the Redevelopment Plan.
Low and Moderate Income Housing Fund
The Agency's primary source of funding for housing projects and programs is the annual deposit of the 20 percent
of its tax increment revenue into the Low- and Moderate -Income Housing Fund ("Housing Fund"). The CRL
requires that these funds be used to increase, improve, and preserve the community's supply of affordable
housing available to persons and families of very low, low, and moderate -incomes.
On July 1, 2007, the Agency had a Housing Fund balance of approximately $2,269,2424. The Agency collects
Housing Fund revenues annually and projects that a total of $3,906,725 may be deposited into the Housing Fund
over the five year planning period ending on June 30, 2012. An annual forecast of these deposits is presented on
Table 3.
Table 3: Projected Housing Fund Deposits
Fiscal Year
Housing Set
Aside Deposit
2007-08 (Actual)
$ 738,730
2008-09 (Actual)
800,529
2009-10 (Estimate/Unaudited)
800,000
2010-11 (Estimate)
776,000
2011-12 (Estimate)
776,000
Total
$ 3,906,725
Source: City Finance Department
4 Per Agency's Audited Financial Statements for fiscal year ending June 30, 2007.
Targeting of Housing Fund Expenditures
Effective January 2002, expenditure of housing set-aside revenues is subject to certain legal requirements. At a
minimum, the Agency's low- and moderate -income housing set-aside ("Housing Fund") revenue is to be
expended in proportion to the community's need for very low- and low-income housing, as well as the proportion
of the low-income population under the age of 65. New legal requirements took effect on January 1, 2006 that
modified the previous limitations of spending Housing Fund monies on households under the age of 65. Section
33334.4(b) of the CRL used to require that an agency spend its Housing Fund monies "in at least the same
proportion as the low-income population under age 65 bears to the most recent census." The new language
provides a higher level of specificity to spend "in at least the same proportion as the number of low-income
households with a member under age 65 bears to the total number of low-income households of the community
as reported in the most recent census."
The percentage of very low- and low-income household expenditure requirements are based on Southern
California Association of Governments ("SCAG") Regional Housing Needs Assessment ("RHNA") requirements
for the City of Santa Clarita for the planning period of January 1, 2006 through June 30, 2014. The percentage of
low-income households under the age of 65 is based on Comprehensive Housing Affordability Strategy ("CHAS")
reports of 2000 Census data as required by SB 527 adopted in 2005. Table 4 below presents the Agency's
requirements from January 1, 2002 to June 30, 2014, based on the requirements from the two time periods.
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Table 4: Housing Set Aside Expenditure Targets
Household Type
Housing Fund
Housing Fund
Expenditures
Expenditures
BEFORE 1/1/06
AFTER 1/1/06
Households Under Age 65
92.9% /1
64.6% /3
Very Low Income Households
34.5% /2
43.7% /4
Low Income Households
25.9%
27.3%
Notes:
1/ Percentage of Housing Set Aside expenditures for families under age
65 were based on 2000 Census population data for the City.
According to the 2000 Census, 140,363 residents (92.9 percent) of the
total population of 151,088 were under the age of 65.
(www.census.gov)
2/ Prior to January 1, 2006, Housing Set Aside expenditure targets for
very low and low income households based on the applicable Regional
Housing Needs Assessment fair share for the City at that time. For
said period, 1,256 (34.5 percent) of the 3,636 affordable housing units
in the City's Regional Housing Needs Assessment were specifically in
the very low-income category, and 941 units (25.9 percent) were in the
low-income category.
2/ Effective January 1, 2006, AB 527 (Alquist) enacted a change to how
expenditure targets to households under age 65 should be
determined, specifically to limit the percentage to low-income
households in the community. As a result, the targets changed in
2006. However, because such data is not available directly from the
Census, common practice is to use data for households under the age
of 65 as reported in the Comprehensive Housing Affordability Strategy
("CHAS"). (http://soccis.org/chaxlindex.htm) Based on this data, a total
of 9,570 households earn less than 80 percent of the County median
income; of these households, 6,184 households (64.6 percent) are
non -elderly households.
4/ Based on 2006-2014 fair share from the Regional Housing Needs
Assessment for the City, in which 2,494 (43.7 percent) of the 5,711
low- and moderate -income household fair share total are in the very
low-income category, and 1,560 (27,3 percent) are in the low-income
category.
For low- and moderate -income Housing Fund expenditures from 2002 through 2005, the City was required to
expend at least 92.9 percent of those expenditures on non -senior housing. The minimum non -senior housing
expenditures beginning in 2006 is 64.6 percent of total Housing Fund expenditures. Over the last five years of the
Compliance Plan period available Housing Fund revenue needs to be allocated based on these RHN,A-based
ratios.
The proportionality requirements affect expenditures over a ten year period, although the law permits the
compliance initially for a period beginning in January 2002 and ending in December 2014. As of June 30, 2010,
the Agency expended $5,495,243 of housing set aside bond funds for acquisition of the Lyons/Main Gateway site
for future affordable housing development. However, a specific project for this site has not yet been formulated,
so analysis of past Agency housing set aside expenditures is not yet appropriate. The Agency will judiciously
track and program its housing set aside expenditures to ensure compliance with the requirements and targets
identified in Table 4.
Housing Units Constructed During Prior Implementation Plan Without
Housing Set -Aside Funds.
No funding sources other than housing set-aside funds were used by the Agency to construct affordable units
featuring long term covenant restricted units (affordable units with covenants of at least 45 years for ownership
housing or 55 years for rental housing).
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