HomeMy WebLinkAboutRDA Reso No 2009-03
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RESOLUTION NO. 2009-03
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
LAKE ELSINORE ADOPTING THE 2005-2009 AMENDED AND
RESTATED REDEVELOPMENT AND HOUSING IMPLEMENTATION PLAN
WHEREAS, the Lake Elsinore Redevelopment Agency ("Agency") is a community
redevelopment agency duly created, established and authorized to transact business and
exercise its powers, all under and pursuant to the Califomia Community Redevelopment
Law (Part 1 of Division 24, commencing with Section 33000, ofthe Health and Safety Code
. of the State of Califomia ("CRL")); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry
out the Redevelopment Plans ("Redevelopment Plans") for the Lake Elsinore Rancho
Laguna Redevelopment Project Areas No. I, No. II and No. III ("Project Areas"), which were
adopted by the Agency's legislative body, the City Council of the City of Lake Elsinore
("City Council"), by Ordinance No. 607 on September 23, 1980 and thereafter amended by
Ordinance No. 624 on July 20, 1981, Ordinance No. 987 on November 22, 1994 and
Ordinance No. 1249 on February 26,2008 (Project Area No. I), by Ordinance 671 on July
18, 1983 and thereafter amended by Ordinance No. 987 on November 8, 1994 and
Ordinance No. 1249 on February 26,2008 (Project Area No. II), and by Ordinance No. 815
on September 8, 1987 and thereafter amended by Ordinance No. 987 on November 8,
1994 and Ordinance No. 1249 on February 26,2008 (Project Area No. III); and
WHEREAS, California Community Redevelopment Law ("CRL") Subsection
33490(a) (1) (A) requires that:
On or before December 31, 1994, and each five years thereafter, each
redevelopment agency that has adopted a redevelopment plan prior to
December 31, 1993, shall adopt, after a public hearing, an implementation
plan that shall 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
Section 33333.10, if applicable, and Sections 33334.2, 33334.4, 33334.6
and 33413 of the CRL; and
WHEREAS, in November 2005, the Agency adopted by Resolution its 2005-2009
Redevelopment and Housing Implementation Plan for the Project Areas; and
WHEREAS, on September 23, 2008, the Agency conducted a Mid-Term Review to
evaluate the 2005-2009 Redevelopment and Housing Implementation Plan for the Project
Areas and the progress of the Rancho Laguna Redevelopment Projects; and
WHEREAS, in the preparation of the proposed Amended and Restated
Redevelopment Plans, the Agency identified certain minor amendments to the 2005-2009
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RA lEIBOLD,
AGENCY COUNSEL
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Debora Thomsen, Agency Secretary of the Redevelopment Agency of the City of lake
Elsinore, California, hereby certify that Resolution No. 2009-03 was adopted by the
Redevelopment Agency Board of the Redevelopment Agency of the City of lake Elsinore
at a regular meeting held on the 24th day of March, 2009, and that the same was adopted
by the following vote:
AYES: Chairman Thomas Buckley, Vice-Chairwoman Amy Bhutta, Member Daryl
Hickman, Member Robert Magee, Member Melissa Melendez
NOES: None
ABSTAIN: None
ABSENT:
None
M/kA/ ~Pr7
DEBORA THOMSEN,
AGENCY SECRETARY
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EXHIBIT "A"
In
2005-2009 AMENDED AND RESTATED REDEVELOPMENT AND HOUSING
IMPLEMENTATION PLAN
[Attached]
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REDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
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AMENDED AND RESTATED
REDEVIELOPMENT AND HOUSING
IMPLEMENTATION PLAN
2005-2009
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TABLE OF CONTENTS
I. INTRODUCTION ....................................................................................,.............1
II. PURPOSE .......... ................ ........... ..... ... ... ... ........................ ...... .... ... ...... .......... ....1
A. Background and Legislative Requirements................................................ 1
B. Purpose of This Implementation Plan ........................................................2
III. REDEVELOPMENT IMPLEMENTATION PLAN...................................................3
A. The Agency ................................................................................................3
B. Project Area History ...................................................................................3
(1) Rancho Laguna Redevelopment Project Area No. 1........................3
(2) Rancho Laguna Redevelopment Project Area No. 11.......................5
(3) Rancho Laguna Redevelopment Project Area No. 111......................6
(4) Summary of Redevelopment Plan Limits for All Project Areas........6
C. Purpose of the Redevelopment Plans........................................................7
D. Goals and Objectives .................................................................................7
(1) General Agency Goals and Objectives............................................7
(2) Rancho Laguna Redevelopment Project Area No. 1........................9
(3) ~ Rancho Laguna Redevelopment Project Area No. 11.....................10
(4) Rancho Laguna Redevelopment Project Area No. 111....................11
E. Programs and Expenditures.....................................................................12
(1) Policy Overview .............................................................................12
(2) 2000-04 Five-Year Plan: Accomplishments................................... 13
(3) 2005-09 Five-Year Plan.................................................................13
(4) Efforts Undertaken in Furtherance of 2005-2009 Implementation
Plan Goals and Objectives. ......................................................................15
F. Blight Elimination (How the Goals and Objectives, Projects and
Expenditures Will Eliminate Blight) ..........................................................16
IV. HOUSING IMPLEMENTATION PLAN ................................................................17
A. Introduction ..............................................................................................17
B. Goals and Objectives ...............................................................................18
C. Program and Expenditures....................................................................... 1 8
D. Implementation of Agency Housing Responsibilities................................ 19
(1) Housing Fund Revenues ...............................................................19
(2) Proportion of Very Low, Low and Moderate Income Housing .......20
(3) Projected Housing Development...................................................21
(4) Estimate of Housing Production Requirements.............................21
(5) Replacement Housing ...................................................................25
(6) Consistency with the Housing Element...........................................1
ATTACHMENTS
Attachment No.1 Map of Redevelopment Project Areas
Amd Ast Implementation Plan 2005-
2009 (FINAL).doc
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I.
INTRODUCTION
On January 11, 2000, pursuant to Health & Safety Code Section 33490, the
Redevelopment Agency of the City of Lake Elsinore (the "Agency") adopted the
Agency's Five-Year Implementation Plan for the years 2000 through 2004. Limited by
debt incurred in the early 1990's, that Five-Year plan of programs and expenditures was
a continuation of the Agency's previous commitments, whereby tax increment
generated in Rancho Laguna Redevelopment Project Area No. I ("Project No. I"),
Rancho Laguna Redevelopment Project Area No. II ("Project No. II"), and Rancho
Laguna Redevelopment Project Area No. III ("Project No. Iii"), which are collectively
referred to as the "Project Areas", was committed to pay for bond debt service and
other financial obligations associated with specific programs and projects.
While those debt service obligations continue, tax increment projections suggest
that the Agency will enjoy a renewed ability to pursue redevelopment initiatives and is
poised to see significant redevelopment activity within the three Project Areas during
the next five to ten years. The tools accorded the Redevelopment Agency will be
effective in providing residents and businesses a high quality of life while also
strengthening the economic health of the City and providing increased housing
opportunities for all economic segments of the community.
In November 2005, the Agency adopted The Lake Elsinore Redevelopment
and Housing Implementation Plan 2005-2009 (the "2005-2009 Implementation
Plan"). Pursuant to Health & Safety Code Section 33490(c), the Agency conducted a
mid-term review of the 2005-2009 Implementation Plan on September 23, 2008. As
noted in the staff report to the Redevelopment Agency Board on the mid-term review,
the Agency is progressing toward meeting the goals set forth in the 2005-2009
Implementation Plan. The most notable action reported during the mid-term review was
the Agency's initiation of Redevelopment Plan Updates for each of the Redevelopment
Plans. Concurrent with the Agency's consideration of this Implementation Plan, the
Agency is considering Amended and Restated Redevelopment Plans for each Project
Area.
During the preparation of the Amended and Restated Redevelopment Plans, the
Agency has identified certain information in the 2005-2009 Implementation Plan that
should be updated, including: financial, census and housing inventories and current
Agency activities. This Amended and Restated Lake Elsinore Redevelopment and
Housing Implementation Plan 2005-2009 ("Implementation Plan") incorporates the
technical corrections identified by the Agency and supersedes the prior version of the
2005-2009 Implementation Plan in its entirety.
II. PURPOSE
A. Background and Legislative Requirements
Assembly Bill 1290, also known as the Community Redevelopment Law
Reform Act of 1993, effective January 1, 1994, enacted numerous revisions to the
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California Community Redevelopment Law (the "I,.aw," California Health & Safety Code
Section 33000 et seq.).1 One of the provisions of this legislation was the requirement
that each redevelopment agency adopt a five-year implementation plan for each of its
redevelopment project areas. This requirement is codified in Section 33490, which
provides that the Implementation Plan must contain the following:
. Specific redevelopment goals and objectives for each project area.
. Specific programs, projects and expenditures proposed for the next
five years.
. An explanation of how the goals, objectives, programs and
expenditures will contribute to the elimination of blight and
implement the Agency's housing obligations.
. Information about the Agency's low and moderate income housing
fund and affordable housing activities, including proposals to meet
the agency's inclusionary housing requirements, if any.
In accordance with the requirements of Section 33490, the Agency
adopted its first five-year implementation plan (Redevelopment and Housing
Implementation Plans 1995-1999) by Resolution No. RDA 94-12 on December 6, 1994
and has subsequently complied with the requirements of Section 33490 to prepare a
new implementation plan be every five years.
B. Purpose of This Implementation Plan
This Implementation Plan is a policy document used to assist the Agency
in making decisions about individual projects over the term of the Redevelopment Plan
for Rancho Laguna Redevelopment Project No. I, the Redevelopment Plan for Rancho
Laguna Redevelopment No. II, and the Redevelopment Plan for Rancho Laguna
Redevelopment No. III (collectively, the "Plans" or the "Redevelopment Plans"). This
Implementation Plan provides a "big picture" prospective, which can assist in staying
true to the mission and goals of the Agency. In addition, this Implementation Plan can
be used as a communication tool to help educate the community about programs and
projects implemented by the Agency.
The history, goals, objectives, and five-year programs for each of the
Project Areas in the City are described below. This Implementation Plan also
summarizes information concerning the blighting conditions in the Project Areas and
elimination of these conditions through implementation of Agency goals, objectives and
programs. Part III of this Implementation Plan contains the affordable housing
component which includes the following information:
1 All statutory references in this Implementation Plan shall be to the Galitornia Community Redeveiopment
Law unless specifically provided otherwise.
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Status of the Agency's Low and Moderate Income Housing Fund
(''Housing Fund") and estimates of Housing Fund deposits over the
next five years.
Proposed use of the Housing Fund to increase, improve and
preserve the community's supply of housing available at affordable
housing cost and an estimate of the number of units to be assisted
over the next five years.
. Description of the Agency's inclusionary and replacement
affordable housing requirements and proposed activities to meet
these requirements.
.
.
III. REDEVELOPMENT IMPLEMENTATION PLAN
A. The Agency
The Agency is a public body, corporate and politic, exercIsing
governmental functions and powers and organized and existing under Chapter 2 of the
Law. The need for redevelopment was acknowledged in early 1980 after severe
flooding displaced numerous residents, businesses and some local industry, and
caused millions of dollars in damages to private and public property and facilities. In
addition, the flooding caused severe pollution of the Lake. In response to these
conditions, the City Council activated the Agency in July 1980 by the adoption of
Ordinance No. 605-B. The members of the City Council serve as members of the
Agency. The Agency now includes three active Project Areas. The location of these
Project Areas is shown on the Project Area Map (Allachment No.1). The primary
purposes of the Agency are to eliminate blight and blighted conditions in the Project
Areas and to increase, improve and preserve the community's supply of affordable
housing.
B. Project Area History
(1) Rancho Laguna Redevelopment Project Area No. I
The original Project Area ("Original Project Area") consisted of 12
non-contiguous areas distributed throughout the City and totaling approximately 286
acres. The Original Project Area was adopted after severe flooding in early 1980,
which dispiaced numerous residents, businesses and some local industry, and caused
millions of dollars in damage to private and public property and facilities. The resulting
conditions worsened the City's abnormally high unemployment rate and caused long
term deterioration and economic maladjustment due to severe population loss and loss
of housing and employment centers caused by flooding. The original Redevelopment
Plan for Project No. 1 ("Original Plan") was adopted to improve, upgrade and revitalize
those areas within the City which suffered because of the direct damages due to floods
and to assist in the development of vacant portions of the City above the flood line for
moderately priced housing, which would function as replacement housing for flood
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victims and housing for new City residents. In addition, the Agency's objective in
adopting the Original Plan was to generate business for local commercial
establishments, tax revenues to provide needed public facilities and improvements and
jobs for unemployed persons in the community.
A year later in 1981, the Original Plan was amended to add
approximately 1,664 acres ("Added Area") which surrounded two of the original
noncontiguous areas, thereby creating an amended Project Area with 11 noncontiguous
areas comprising approximately 1,950 acres. The objectives of the First Amendment to
the Original Redevelopment Plan to add territory was a desire to achieve additional
community objectives including promotion of industrial development and revitalization of
the downtown and surrounding area. The "Amended Project Area" (Original Project
Area plus the Added Area) includes the Central Business District (the "Downtown") and
surrounding areas between Heald Avenue and the Lake, the area along the 15 Freeway
extending southwest to the Country Club Heights, and the area generally bounded by
Malaga Road, the 15 Freeway, Avenue 9, Dawes Street, and Lakeshore Drive/Mission
Trail. The Amended Project A.rea extends northwest along the 15 Freeway generally
bounded by the Freeway, Pierce Street, Baker Street, and Strickland Avenue. The
Amended Project Area also includes several small non-contiguous areas located at the
western end of the Lake.
The amendment to the Original Plan provided the Agency with the
authority to receive tax increment. With the projected revenue, the goal was to spur
proposed affordable residential development, promote industrial development and
revitalize the Downtown. These goals were to be accomplished with major public
improvements and public utilities to assist the City in mitigating the flood hazards
particularly in underutilized industrial zoned areas. The provision of public
improvements, streetscapes, merchant mix assistance, and mitigation of flood hazards
were objectives for the Downtown. Redevelopment goals also included the promotion
of in fill residential development in the areas surrounding the Downtown and extending
the Downtown to provide commercial development along Graham Avenue and
Lakeshore Drive.
In sum, the Original Redevelopment Plan for Rancho Laguna
Redevelopment Project No. I has been amended three times: by Ordinance No. 624
adopted on July 20, 1981 to add the Added Area; by Ordinance No. 987 on November
22, 1994 to conform plan limits to Assembly Bill 1290 (AB1290); and by Ordinance
No.1249 on February 26, 2008 to repeal the debt establishment limit as provided by
Senate Bill 211 (SB211), to extend the expiration date and time limit to repay debt and
collect tax increment as provided by Senate Bill 1045 (SB1045) for ERAF1 payments
and to make certain technical corrections. The Original Project Area and Added Area
have separate redevelopment plan effectiveness limits, and limits to repay debt and
receive lax increment. The Original Project Area and Added Area have combined tax
increment and bond debt limits.
1 Riverside County's Educational Revenue Augmentation Fund
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(2) Rancho Laguna Redevelopment Project Area No. II
Rancho Laguna Redevelopment Project No. II was adopted in
1983. Project Area No. II includes three non-contiguous areas divided into four
subareas for planning purposes. Subarea A includes the residential and commercial
areas at the northwest end of the Lake in the vicinity of Lakeshore Drive, Machado
Street and Grand Avenue. This area includes older residential and commercial uses
including some recreation areas along the Lakeshore. Subarea B includes what was
the old Back Basin for the Lake and is largely undeveloped. A portion of the area is
within the East Lake Specific Plan and has been developed with approximately 700
residential units but a large portion remains undeveloped. Subarea C includes the
commercial area along Railroad Canyon Road on the north side of Interstate 15 and the
Summerhill Specific Plan area. The last subarea, Subarea D is developed with single-
family residential as part of the Tuscany Hill Specific Plan development.
The Project Area was adopted to extend the Agency's efforts to
improve the physical and economic conditions within the areas included in Project Area
No. II that were impacted from severe flooding during the early 1980's. The flooding
destroyed property and resulted in a decline in population and increased
unemployment. These impacts were notable in Subarea A which included residential
and commercial properties at the northwest end of the Lake. Rehabilitation of older
housing and commercial structures, combined with the construction of flood and
drainage improvements were proposed for this area. Subarea B which includes the old
Back Basin for the Lake was also subject to flooding and almost entirely without
infrastructure to accommodate development. Subarea B required infrastructure and
flood control improvements including extensive grading to raise the area above the
flood plain. Also within this area, infrastructure improvements were needed to develop
industrial uses along Corydon Street. Subarea C includes the commercial area along
Railroad Canyon Road on the north side of Interstate 15 and the Summerhill Specific
Plan area. The commercial area suffered from deterioration and economic stagnation.
To address these blighting conditions, rehabilitation and infrastructure improvements
were proposed. To reduce the high cost to the private sector for providing
infrastructure, it was proposed that Agency assistance would be provided in the
construction of infrastructure necessary to stimulate development of the Specific Plan
area.
The Redevelopment Plan for Rancho Laguna Redevelopment
Project No. II has been amended two times: by Ordinance No. 987 on November 22,
1994 to conform plan time limits to AB1290; and by Ordinance No.1249 on February
26, 2008 to repeal the debt establishment limit for affordable housing debt
establishment only as provided by SB211, to extend the effectiveness date and time
limit to repay debt and collect tax increment as provided by SB1045 for ERAF
payments, and to make certain technical corrections.
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(3) Rancho Laguna Redevelopment Project Area No. III
Rancho Laguna Redevelopment Project No. III was adopted in
1987. Project No. III was adopted to add blighted territory that could be redeveloped
with uses to improve the City's negative image and reverse the trend of business
relocation outside of the City leaving only limited basic consumer services. Neighboring
communities of Riverside and Hemet grew into regional trade and population centers
while the once self sufficient community of Lake Elsinore was evolving into a bedroom
community for Orange County. Project Area No. III includes four non-contiguous areas
including the old County Club Heights area, the residential area referred to as the
Avenues, the former Back Basin area of the Lake and a small area bounded by Skylark,
Palomar, Corydon and Union. Project Area No. III is generally characterized by partially
established residential development (the old County Club Heights and Avenue Areas)
east and west of the Downtown and the remaining portions of the East Lake Specific
Plan area (Back Basin).
The Redevelopment Plan for Rancho Laguna Redevelopment
Project No. III has been amended two times: by Ordinance No. 987 on November 22,
1994 to conform plan time limits to AB1290; and by Ordinance No.1249 on February
26, 2008 to repeal the debt establishment limit for affordable housing debt
establishment only as provided by SB211 and to extend the expiration date and time
limit to repay debt, collect tax increment as provided by SB1045 for ERAF payments,
and make certain technical corrections.
(4) Summary of Redevelopment Plan Limits for All Project Areas
Debt Plan Term Debt Tax Bond Debt Eminent
Establishment Expires Repayment Increment Domain
(receive tax
increment)
Expires
Project No. I Repealed 9/23/21 9/23/31 expired
(Original Area)
Adooted 9/23/80 $3 million $30 million
Project No. I Repealed 7/20/22 7/20/32 annually for both expired
(Added Area) for both areas
Adooted 7/20/81 areas
Project No. II Repealed for 7/18/24 7/18/34 $15 million $120 expired
Adopted 7/1 8/83 affordable housing annually million
debt - non-housing
authoritv exoired
Project No. III Repealed for 9/8/28 9/8/38 $20 million $150 expired
Adopted 9/8/87 affordable housing annually million
debt-
Non-housing
authority exoired
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C. Purpose of the Redevelopment Plans
The 1980 flood seriously impacted the City causing businesses and
residents to suffer property loss and general economic crisis. The selection of the
original Project Area No. I was the Agency's first step towards providing an expanded
economic base and opportunity for additional housing for the community; a goal that
was carried forward by the Agency in establishing the additional Project Areas.
Among the purposes of the Redevelopment Plans adopted for the City's
three Project Areas are:
. reduce the hazard of flooding;
. eliminate public infrastructure deficiencies;
. provide adequate roadways;
. provide improvements to community facilities;
. revitalize declining commercial and industrial centers in order to
increase sales and business tax revenues and increase
employment opportunities;
. increase, improve and preserve housing opportunities for all
economic segments of the community.
Goals and Objectives
D.
(1) General Agency Goals and Objectives
The Agency remains committed to identifying underutilized,
blighted and economically challenged areas within the project areas and working to find
solutions to make them fiscally sound and structurally safe.
According to the 2004 Edition of Redevelopment in California,
published by Solano Press Books, blight is defined as economic or physical liabilities,
requiring redevelopment in the interest of the health, safety, and general welfare of the
people of the community and of the state.
Physical conditions that cause blight are defined as follows:
. Buildings which are unsafe or unhealthy for persons to live
or work
.
Factors that prevent or substantially hinder the economically
viable use or capacity of buildings or lots
Adjacent or nearby uses that are incompatible with each
other and that prevent the economic development of those
parcels or other portions of the project area
.
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. The existence of subdivided lots of irregular form and shape.
and inadequate size for proper usefulness and development
that are in multiple ownership
Economic conditions that cause blight are defined as follows:
. Depreciated or stagnant property values or impaired
investments
. Abnormally high business vacancies, abnormally low lease
rates, high turnover rates
. Abandoned buildings, or excessive vacant lots
. A lack of necessary commercial facilities that are normally
found in neighborhoods
. Residential overcrowding
. An excess of bars, liquor stores, or other businesses that
cater exclusively to adults that has led to problems of public
safety and welfare
. A high crime rate that constitutes a serious threat to the
public safety and welfare
Accordingly, the Agency's five-year goals and objectives for
redevelopment are:
. Identify locations within the Project Areas with the greatest
opportunity for economic development and encourage the
development and revitalization of commercial and industrial
projects/programs that will expand the area's economic base
and provide new job opportunities for all segments of the
community.
. Identify and prioritize necessary public works improvements
or facilities, which will promote the development of land
uses, as appropriate, and eliminate unhealthy and
dangerous conditions.
. Encourage private investment to improve or redevelop
property in the Project Areas as weil as surrounding areas.
. Explore cooperative redevelopment opportunities to partner
with County of Riverside to make improvements to the
lakeshore.
.
Evaluate the benefits of re-establishing the Agency's power
of eminent domain to effectively implement the Agency's
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redevelopment goals and objectives and study the possibility
of targeting geographic sub-areas for such authority.
In addition, the Agency proposes to accomplish the following goals
and objectives during the next five years:
. Prepare amendments to each of the Agency's
Redevelopment Plans in order to consolidate and update the
original plans with previously adopted amendments into a
more "user-friendly" single document and to eliminate
ambiguities and inconsistencies.
Status: Concurrent with the adoption of this Implementation
Plan, the Agency and City Council will consider adoption of
Amended and Restated Redevelopment Plans for each
Project Area.
Increase, improve and preserve the community's supply of
very low-, lower-, and low- and moderate-income housing
opportunities both for ownership and rental units.
.
Status: On November 11, 2008, the Agency approved a
Memorandum of Understanding by and between the Agency
and BRIDGE Housing Corporation whereby the parties
agreed to work diligently and in good faith to identify sites
and opportunities for development of affordable housing. In
addition, on November 11, 2008, the Agency approved a
resolution committing low and moderate income housing
funds to BRIDGE for the development of an affordable
housing project known as Pottery Court.
(2) Rancho Laguna Redevelopment Project Area No. I
The current goals and objectives of the Agency in Project Area No.
I essentially continue with the original goals established for Project Area No. I and
include the following:
. To eliminate and prevent the spread of physical blight and
deterioration by promoting and encouraging immediate
development of parcels comprising Redevelopment Project
Area No. I, which are substantially vacant, underutilized
and/or unproductive.
. Promote redevelopment in the Downtown/Old Town District
and in the vicinity of Grand/Ortega.
.
To encourage and foster the economic revitalization of
Project Area No. I.
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To encourage new construction and rehabilitation of
commercial and industrial uses, which in turn will provide
short-term and long-term employment opportunities for local
residents.
. To encourage new development in the Project Area of high-
quality housing at affordable prices. and with affordable
financing terms. including affordable senior housing.
. To promote the rehabilitation and preservation of the
existing housing stock where appropriate.
(3) Rancho Laguna Redevelopment Project Area No. II
The Agency continues to support the following goals and objectives
in Project Area No. II:
. To eliminate and prevent the spread of physical and
economic blight and deterioration by promoting and
encouraging the revitalization or redevelopment of
deteriorating or underutilized areas within Project Area No.
II.
.
To create an aesthetic, healthful, and functional
environment.
. To promote productive and efficient use of land to improve
and increase the tax base.
. To encourage new residential, industrial, and commercial
development within Project Area No. II to provide additional
housing, employment and service opportunities, and
broaden the tax base.
. To provide needed public improvements and facilities in
Project Area No. II.
. To provide opportunities for participation by owners and a
reasonable preference for persons engaged in business in
Project Area No. II.
. To promote the rehabilitation of the existing housing stock
where appropriate.
.
Promote redevelopment in the vicinity of Lakeshore and
Riverside Drive (Four Corners) and redevelopment of the
Back Basin through implementation of the DDA with Laing-
CP Elsinore LLC and Civic-Partners-Elsinore LLC.
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include:
(4)
Rancho Laguna Redevelopment Project Area No. III
The Agency goals and objectives in Project Area No. III continue to
. To remedy, remove and prevent physical blight and
economic obsolescence in Project Area No. III.
. To encourage the cooperation and participation of residents,
businesses, business persons, public agencies and
community organizations.
. To eliminate substandard structures through rehabilitation or
demolition.
. To remove physical constraints such as existing subdivision
patterns which inhibit market forces for redevelopment or
reuse.
. To eliminate health and safety hazards.
Promote development and redevelopment in and around the
Diamond Stadium and pursue efforts to increase and
improve Stadium use.
To provide for the expansion, renovation and relocation of
businesses within Project Area No. III to enhance their
economic viability.
. To improve inadequate public utilities, infrastructure and
facilities which impair and, in some cases, prevent
development allowed by the General Plan.
.
.
. To eliminate conditions of economic dislocation such as
incompatible land uses, fragmented ownership patterns, and
existing subdivision patterns which impair reinvestment
capabilities, inhibit market forces and result in underutilized
or improperly utilized properties and restrict redevelopment
or reuses by private enterprises acting alone.
. To promote land assembly or parcel consolidation into sites
suitable to accommodate contemporary development trends,
current market demands and efficient site planning.
.
To promote the rehabilitation and preservation of the
existing housing stock where appropriate.
Promote redevelopment of the Country Ciub Heights area
and redevelopment of the Back Basin through
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implementation of the DDA with Laing-CP Elsinore LLC and
Civic-Partners-Elsinore LLC.
Programs and Expenditures
(1) Policy Overview
The Agency supports projects that encourage development and
revitalization of commercial and industrial activities in the Project Areas to enhance
services and employment opportunities to Project Area residents and that generate
increased property values and sales tax revenues. More specifically, the Agency
supports the following types of projects:
. Projects that maximize the efficiency and compatibility of
land uses within the Project Areas.
E.
activities:
. Projects that generate employment opportunities and
expand the community's economic base.
. Projects that provide public improvements and facilities
necessary to eliminate blighted conditions and stimulate
private development activities.
. Projects that increase, improve and preserve affordable
housing opportunities.
The expenditures of the Agency are guided by the following priority
. Satisfaction of debt service obligations.
. Installation, construction, reconstruction, redesign, or reuse
of streets, utilities, curbs, gutters, sidewalks and other public
improvements and facilities.
. Redevelopment of land by private enterprise or public
agencies for use in accordance with the adopted
Redevelopment Plans.
. Financing of the construction of residential, commercial and
industrial buildings and the permanent mortgage financing of
residential, commercial and industrial buildings, as permitted
by applicable State and local laws, to increase the
residential, commercial and industrial base of the City.
In appropriate cases, rehabilitation of structures and
improvements or development of vacant land by present
owners, their successors and the Agency.
.
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Providing affordable housing opportunities to all segments of
the community.
o Such other actions as may be permitted by law.
(2) 2000-04 Five-Year Plan: Accomplishments
The Agency has been actively involved in community
redevelopment since the adoption of Project Area No. I in 1980. However, those initial
redevelopment efforts led the Agency to incur significant debt while property values
waned during much of the 1990's. The start of the new millennium led to increased
optimism that the Agency could begin to make significant progress on the Agency's
downtown revitalization, housing and economic development goals.
First, however, the Agency's primary mission in the past five years
has been to continue to honor its obligation to bondholders by allocating tax increment
to debt service. Secondly, the Agency has continued to honor its obligations under
existing disposition and development agreements and owner participation agreements.
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The Agency also successfully re-negotiated a Disposition and
Development Agreement ("DON') with Laing-CP Elsinore LLC and Civic Partners-
Elsinore LLC, a successor in interest to Eastlake Communities. This DDA is part of an
integrated development strategy benefiting the City's "Back Basin" area in Project Area
Nos. II and III. This Back Basin area has traditionally faced significant hurdles to
development, largely because of flooding concems. Agency assistance will assure the
continued economic viability of this project and, we believe, be a catalyst to significant
ancillary development projects in the Back Basin. The DDA also gives full recognition
to the Agency's existing debt obligations and provides that Agency assistance will be
limited to tax increment that is available only after all existing "senior debt" has been
satisfied.
Equally important, the Agency's existing bonded debt obligations
have been stabilized while existing property values have soared. The resulting increase
in tax increment will allow the Agency to make significant progress towards the
Agency's obligations to reimburse the Housing Fund and the City in accordance with
governing documents and applicable laws.
(3) 2005-09 Five-Year Plan
o
The Five-Year Plan of programs and expenditures is a continuation
of the Agency's previous commitments, whereby tax increment generated in the three
Project Areas will first be spent to pay for bond debt service and other financial
obligations associated with specific programs and projects.
Gross tax increment revenues allocated to the Agency during the
2004-09 planning period are estimated as follows:
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Gross Tax Increment Allocations
2004-05 2005-06 2006-07 2007-08 2008-09
Project No. I $4,988,523 $6,120,855 $6,466,187 $8,076,257 $7,192,000.
Project No. II $6,786,973 $10,250,462 $11,475,533 $14,070,225 $12,350,000
Project No. III $1,360,583 $2,128,598 $3,170,823 $4,337,885 $3,778,000
From gross tax increment for all Project Areas, the Agency must
set aside twenty percent (20%) to its Housing Fund each year. The estimate of
Housing Fund deposits for the each fiscal year of the five-year planning period are set
forth in Section IV.D. below:
Also deducted from gross tax increment for all Project Areas are
S8 2557 administrative fees and payments to other taxing agencies pursuant to tax
sharing agreements entered into when the Redevelopment Plans were adopted.
Commencing in 2008-09, the Agency will also pay a statutory pass-through to other
taxing entities from increment received in Project Area No. I resulting from the City
Council's adoption of Ordinance No.1249 eliminating and amending certain time limits
with respect to the Redevelopment Plans.
For fiscal year 2008-09, the aggregate of these expenses is estimated as follows:
County Administrative fees and Payments to Taxing Agencies
2008-09 2008-09 2008-09
S8 2557 Pass- Pass-
Admin Fees Through Through
Agreements Statutory
Project No. I $63,000 $1,916,000 $341,000
Project No. II $107,000 $5,270,000 $0
Project No. III $33,000 $1,945,000 $0
Anticipated expenditures from the Net Tax Increment Revenues to
be made during the planning period are summarized below:
a. Tax increment to be expended on the debt service for bonds issued
for Project Area Nos. I, II and III. These expenditures are summarized in the following
Table:
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Projected Five-Year Debt Service Schedule
Debt Service 2004-05 2005-06 2006-07 2007-08 2008-09
IBonds)
1995 Series $977,890 $981 ,420 $978,870 $980,510 $981,070
A 1I,1i ,Ii I)
1999 Series $2,197,308 $2,196,682 $2,199,683 $2,196,308 $2,196,558
AII&II)
1999 Series $82,006 $82,838 $83,306 $83,413 $78,338
BII&II)
1999 Series $1,090,203 $1,085,320 $1,084,935 $1,088,713 $1,086,653
CII,II,III)
$4,347,407 $4,346,260 $4,346,794 $4,348,944 $4,342,619
Total
b. Tax increment to be expended on other program and project
obligations including the following:
. Outlet Center (O.P.A.)
n . Walmart/Oak Grove (O.P.A.)
. Amber Ridge Sewer/State Loan Agreement
. Civic Partners (D.D.A.)
. Housing Fund Reimbursement Obligations
. City Reimbursement Obligations
. ERAF
D
. Lake Elsinore Recreation Authority Lease
The Agency anticipates that unencumbered tax increment funds
may be available for limited discretionary projects during the 2005-2009 planning
period, after taking into account the Agency's obligations to reimburse the Housing
Fund and the City in accordance with governing documents and applicable laws.
(4) Efforts Undertaken in Furtherance of 2005-2009
Implementation Plan Goals and Objectives.
Downtown Master Plan
The Agency sponsored the creation of a Downtown Master Plan
document to create a readily actuated and incremental comprehensive urban design
vision for Project Area I's downtown-the area generally located South of Interstate 15,
and North of the lakefront between Riley Street and Chestnut Street. The purpose of
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the Downtown Master Plan is to 1) Establish the design vision for the area; 2) Provide
land development regulations and a regulatory framework to guide future public and
private development in the area; 3) Encourage the development of public space and
community art; 4) Foster opportunities for historic preservation and redevelopment; 5)
Develop evidence-based economic strategies and a comprehensive implementation
plan necessary to support the desired vision; and 6) Establish and recognize an
innovative and distinct Main Street ambiance and experience.
Lake Elsinore TechnoloQV Center
The Agency received a $2.67 million grant from the U.S. Economic
and Development Administration to assist in the development of the Lake Elsinore
Technology Center (LETC) in Project Area 1. As proposed, the LETC consists of a
13,200 square-foot business incubator that will provide ten (10) to fifteen (15)
businesses with professional office space at below market-rate rents, with amenities
that include a central reception area, conference rooms, lunch room, a computer
training room, and related office equipment, business plan and marketing plan training,
networking opportunities, interns from local technology-based school programs, and
professional services, such as legal, accounting, and business advice. The business
incubator will provide the necessary tools to assist new, relocating, and expanding
businesses in their efforts to succeed. Furthermore, existing businesses in the area can
remain at their current location and enroll in the incubator's business affiliate program to
take advantage of the training, services, and networking opportunities offered through
the incubator. Additionally, the LETC assists existing retail businesses in the downtown
by providing a more dedicated daytime Consumer base to support their establishments.
Lake Elsinore Cultural Center Seismic RetrofittinQ
The Agency submitted a proposal to the Federal Emergency
Management Agency's Hazard Mitigation Grant Program to request funding assistance
for the seismic retrofitting of the Lake Elsinore .Cultural Center, a publicly owned 1923
unreinforced masonry building in Project Area 1. This project involves a structural
retrofit with supplemental nonstructural measures. The primary structural measures for
each building include adding reinforced concrete shear walls (with upgraded
foundations), adding collectors to transfer loads to the new shear walls, adding out of
plane anchors to tie the roof diaphragm to the walls, and installing plywood overlays to
strengthen the roof, as necessary. Non-structural measures may include parapet
bracing, gable end wall bracing, and bracing of selected nonstructural contents. The
focus of this mitigation project is life safety, with the additional objectives of reducing
damages and losses in the event of a future earthquake, preserving the functionality of
the important civic building, and preserving the structure's historic facade, which is
located in City of Lake Elsinore's historic district.
F. Blight Elimination (How the Goals and Objectives, Projects and
Expenditures Will Eliminate Blight)
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I : The adoption of AS 1290 substantially changed the delinition 01 blight
which can now be used to qualify project areas for adoption on or after January 1,
1994. However, all of the Agency Redevelopment Projects were adopted prior to this
date and qualified under the previous definitions of blight. Pre-AS 1290 conditions 01
blight are described in detail within the Agency's Reports to the City Council prepared
for each of the Redevelopment Plans.
Implementation of the Agency sponsored projects and programs
together with private development activity have improved conditions in the Project
Areas; however, significant blighting conditions remain. It is the Agency's intent to
locus on the remedy 01 those remaining blight conditions through the continued
implementation of the Redevelopment Plans and this Implementation Plan,
encouragement of private development activities and the provision of new and
rehabilitated housing.
The goals, objectives, programs and expenditures contained in this
Implementation Plan contribute to the elimination 01 the following blight conditions:
. Factors that prevent or substantially hinder the economically
viable use or capacity of buildings or lots.
.
Adjacent or nearby uses that are incompatible with each
other and which prevent the economic development of those
parcels or other portions of the Project Areas.
The existence of subdivided lots of irregular lorm and shape
and inadequate size for proper usefulness and development
that are in multiple ownership.
Depreciated or stagnant property values or impaired
investments.
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. A lack 01 necessary commercial facilities that are normally
found in neighborhoods.
IV. HOUSING IMPLEMENTATION PLAN
A. Introduction
The Housing Implementation Plan addresses the following:
.
How the goals, objectives, programs and expenditures of the
Housing Implementation Plan will implement the affordable housing
requirements of the redevelopment law.
Expenditure 01 the Housing Fund to assist low and very low income
households in proportion to their needs.
.
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. Adoption of a plan to achieve compliance with the affordable
housing production/inclusionary housing obligations.
. Use of the Housing Fund to increase, improve and preserve the
community's supply of housing at affordable housing cost.
B. Goals and Objectives
Among the goals and objectives of the Agency, the following will
implement the Agency's affordable housing requirements.
. To establish a repayment plan and schedule to repay the debt to
the Housing Fund.
. To adopt an affordable housing strategy or plan based upon
projected Housing Fund revenues over the next 5 to 10 years.
. To prioritize Housing Fund expenditures to projects that assist the
Agency in meeting its inclusionary housing requirements under
Section 33413(b).
To provide affordable housing opportunities to all economic
segments of the community.
To promote the rehabilitation and preservation of the existing
housing stock where appropriate.
. To encourage new development within the Project Area of high-
quality housing at affordable prices, and with affordable financing
terms.
.
.
. To eliminate substandard structures through rehabilitation or
demolition.
C. Program and Expenditures
The Agency plans to undertake a housing opportunity survey to identify
housing opportunity sites appropriate for affordable housing projects. This survey
together with the proposed Housing Fund repayment plan and revenue projections will
serve as the foundation for the Agency to participate in affordable housing projects and
programs in the five-year period covered by this Implementation Plan. These activities
and expenditures will contribute to establishing and preserving quality neighborhood
environments. As additional resources become available in the Housing Fund,
programs will be implemented to meet the Agency's affordable housing obligations.
In furtherance of the foregoing, on November 11, 2008, the Agency
entered into a Memorandum of Understanding with BRIDGE Housing Corporation
whereby the parties agreed to work diligently and in good faith to identify sites and
opportunities for development of affordable housing. The Agency has approved a
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resolution committing low and moderate income housing funds to BRIDGE for the
development of an affordable housing project known as Pottery Court. Pottery Court is
a proposed multifamily affordable housing development consisting of approximately 113
units. The project secured a $1 million grant from the U.S. Department of Housing and
Urban Development's Hope VI Main Street grant program in 2008. As currently
proposed, the project plan consists of approximately 111 Very Low and 2 Manager units
of family housing on approximately 4.29 acres of iand in the Redevelopment Agency's
Project Area 1, which has a projected inclusionary requirement of approximately 75 very
low-income units and 114 units at low and moderate income by 2010. Pottery Court's
111 affordable units exceed the project's 15% inclusionary requirement (17 units), and
will reduce the Agency's outstanding inclusionary obligations by 94 very-low income
units. In addition, Pottery Court will satisfy the replacement housing requirement that
will be triggered by the removal of ten (10) existing rental units. Consequently, the
development will make substantial progress toward satisfying the Agency's affordable
housing requirements.
D. Implementation of Agency Housing Responsibilities
This portion of the Implementation Plan addresses the Agency's housing
responsibilities, including sections addressing Sections 33334.2, 33334.4, 33334.6 and
33413 for the provision of low and moderate income housing and related
considerations.
(1) Housing Fund Revenues
The Agency has set aside twenty percent (20%) of its gross tax
increment into its Housing Fund since fiscal year 1995-96. However, due to
commitments for bonded indebtedness, the Housing Fund has only recently begun to
accumulate significant unallocated tax increment.
The estimate of Housing Fund deposits for the each fiscal year of
the five-year planning period are set forth below:
2004-05 2005-06 2006-07 2007-08 2008-09
Housing $2,627,216 $3,700,056 $4,222,509 $5,296,873 $4,664,000
Fund
(20010 set aSide)
By the end of the 2005-2006 fiscal year, the Housing Fund is
anticipated to have available funds of approximately $6.7 million and is projected to
accrue currently unallocated tax increment of a rate in excess of $1.4 million each year
during the five-year planning period.
In addition, as tax increment revenues increase, the Agency will
have the opportunity to reimburse the Housing Fund as contemplated by the applicable
bond documents. Agency staff and financial advisors are preparing the Housing Fund
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Repayment Plan for consideration by the Agency in this regard. Upon approval of such
Plan, the Agency may deem it appropriate to modify this Part III of the Implementation
Plan.
(2) Proportion of Very Low, Low and Moderate Income Housing
It is the policy of the Agency that the expenditures of the Housing
Fund are made in relative proportion to the housing needs of very low, low and
moderate income households in the community. For this purpose, housing need is
based on the City's share of the regional housing need. The need identified in the
City's Housing Element (July 2002) is distributed among the very low, low, moderate
and above-moderate income groups as follows:
# %
Very low 978 26
Low 639 17
Moderate 829 22
Above- 1317 35
n Moderate
3,763 100
While the Housing Element needs assessment reflects a significant
need for housing to serve above-moderate households, the Agency's Low and
Moderate Income funds will be expended exclusively on housing available to very low,
low and moderate income households at an affordable housing cost.
The City of Lake Elsinore is in the process of updating its Housing
Element which will incorporate the City's Regional Housing Needs Allocation published
by SCAG in 2007. This new data continues to reflect a significant need for housing to
serve above-moderate households (over 40% of the community's housing need). The
remaining housing need is distributed among very low, low and moderate income
resulting in the following proportionality requirement as to the Agency's Housing Fund
expenditures:
Very low = 1,311 units = 40%
Low = 921 units = 28%
Moderate = 1,041 units = 32%
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In addition, moneys in the Housing Fund will be expended to assist
housing available to all persons regardless of age in at least the same proportion as the
population under age 65 years to the City's total population. The 2000 Census reports
that Lake Elsinore's senior population is 6.7% and the under 65 population is 93.3%.
(3) Projected Housing Development
Housing development projections made at the time of the adoption
of the 2005-2009 Implementation Plan were as follows:
2005-2009
Project Area No. I 300
Project Area No. /I 1550
Proiect Area No. /111150
Total 3000
2010-2014
Project Area No. I 100
Project Area No. II 1000
Proiect Area No. 11I1100
Total 2200
2015-build-out
Project Area No. I 200
Project Area No. /I 900
Proiect Area No. /111900
Total 3000
The Agency recognizes that actual rate of housing development
has significantly slowed and has made the projections set forth above quite difficult to
achieve. As a result, the Agency is analyzing actual development activity in connection
with projected development needs and will incorporate updated housing development
projections in the upcoming 2010-2014 Implementation Plan.
(4) Estimate of Housing Production Requirements
a.
Housing Units to be Developed or Purchased
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D
The Law provides that "Each redevelopment agency shall,
as part of the implementation plan required by Section 33490, adopt a plan to comply
with the requirements of this subdivision for each project area. The plan shall be
consistent with, and may be included within, the community's housing element. The
plan shall be reviewed and, if necessary, amended at least every five years in
conjunction with the housing eiement cycle. The plan shall ensure that the
requirements of this subdivision are met every 10 years."
b. Housing Units Required to be Developed
Section 33413(b)(4) requires the Agency to adopt a plan to
comply with the inclusionary housing requirements of Sections 33413(b)(1) and (2).
The housing production requirements of State redeveiopment law are:
At least 30% of all new or rehabilitated dwelling units
developed by an agency must be available at affordable housing cost to low or
moderate income households and not less than 50% of that 30% must be for very low
income households. (Section 33413(b)(1 ).)
At least 15% of all new or rehabilitated dwelling units
developed within a redevelopment project area by public or private entities or persons
other than the agency must be available at affordable housing cost to low or moderate
income households and not less than 40% of this 15% must be for very low income
households. (Section 33413(b)(2).)
c. Explanation of Current Housing Production/lnclusionary
Housing Obligation
The Agency has not developed any housing in the three
Project Areas. Therefore, the Agency does not have a 30% affordable housing
production obligation.
"Substantial rehabilitation" is defined as rehabilitation which
equals 25% of the after rehabilitation value of the dwelling, including land value. None
of the housing units rehabilitated in Project Area Nos. I, II, or III since the
Redevelopment Plans were adopted are known to meet this threshold; therefore, there
is no production obligation associated with past rehabilitation activity. The production
obligation, consequently, is based on the construction of new housing units in the three
Project Areas.
The Agency previously estimated its housing production
requirements based upon the best information availabie during preparation of the 2000-
2004 Implementation Plan. Since adoption of the 2000-2004 Implementation Plan, the
Agency has continued to evaluate and inventory residential development activity in
each Project Area. As a result of these efforts, the Agency has determined its housing
production/inclusionary housing requirements as follows:
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D
Redevelopment Project Area No. I was first adopted in
September 1980. Since that time, 956 housing units have been constructed. The
affordable housing production obligation is as follows:
Very Low Income
Very Low. Low or Moderate Income
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144
In Project Area No. II, 1416 housing units have been
constructed since the Plan was adopted in July 1983. The affordable housing
production obligation is as follows:
=
=
Very Low Income
Very Low. Low or Moderate Income
Inclusionary Units as of 1/1/2000
86
126
212
(44)
168
In Project Area No. III, 292 housing units have been
constructed since the Plan was adopted. The affordable housing production obligation
is as follows:
=
=
Very Low Income
Very Low. Low or Moderate Income
=
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44
=
Since the Project Areas were adopted, 44 housing units with
long-term affordability restrictions within the meaning of the Law have been provided
within the Project Area No. II. The remaining 355 inclusionary unit obligation will be
satisfied pursuant to the requirements of the City's and Agency's agreements with
developers of residential projects, which include a housing production/inclusionary
housing requirement and through the implementation of rehabilitation programs,
activities and other opportunities as described below. It is the Agency's priority that
Housing Fund expenditures be made to satisfy these requirements.
Based on future housing development projections, the
Agency's inclusionary housing obligations are anticipated to increase as follows:
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2005-2009
Project Area No. I
Project Area No. II
Proiect Area No. III
Totallnclusionary
45 units (18 Very Low; 27 Very Low/Low/Mod)
233 units (94 Very Low; 139 Very Low/Low/Mod)
173 units (70 Very Low; 103 Very Low/Low/Mod)
451 units (182 Very Low; 269 Very Low/Low/Mod)
2010-2014
Project Area No. I
Project Area No. II
Proiect Area No. III
Totallnclusionary
2015-build-out
Project Area No. I
Project Area No. II
Proiect Area No. III
Totallnclusionary
15 units (6 Very Low; 9 Very Low/Low/Mod)
150 units (60 Very Low; 90 Very Low/Low/Mod)
165 units (66 Very Low; 99 Very Low/Low/Mod)
330 units (132 Very Low; 198 Very Low/Low/Mod)
30 units (12 Very Low; 18 Very Low/Low/Mod)
135 units (54 Very Low; 81 Very Low/Low/Mod)
285 units (114 Very Low; 171Very Low/Low/Mod)
450 units (180 Very Low; 270 Very Low/Low/Mod)
Given the projection of new housing development in the Project
Areas and the consequential inclusionary housing obligations triggered by that
development, the City of Lake Elsinore has as a matter of policy required residential
developers to contribute toward the inclusionary housing needs of the community. The
Agency and the City Council are evaluating the proposed adoption of a citywide
inclusionary housing ordinance that would legislatively mandate residential
development to satisfy a 15% affordable housing inclusionary obligation triggered by
their projects. Through this effort, the Housing Fund resources can be focused on
providing the units necessary to satisfy the unmet existing inclusionary housing
requirement.
d. Housing Programs
State law provides alternative programs, projects and
activities that an agency may implement in order to meet the affordable housing
production obligations. The alternative programs include units that are constructed,
developed, rehabilitated or price-restricted. Therefore, in addition to new construction,
the Agency may, among other activities, implement the following programs:
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Rehabilitation: As funding becomes available, the Agency
will design and implement a rehabilitation program that includes single- and multi-family
housing. Sub-areas and/or neighborhoods located in the Project Areas will be
identified. In addition, policies and procedures will be prepared for the rehabilitation
program.
Price-Restricted Units: AS 1290 allows the Agency to meet
a part of the affordable housing obligation by the acquisition (by purchase or regulation)
of long-term affordability restrictions on existing multi-family units that either are not
presently available at affordable housing cost to low and very low income households,
or are units that are presently available at affordable cost but may be subject to rent
increases that would no longer make the housing affordable.
Price-restricted units in existing multi-family housing is often
accomplished by a debt service reduction or helping non-profits acquire such housing
by providing downpayment assistance. The Agency will implement a program to work
with non-profits and the current owners of multi-family housing.
Similar acquisition of long-term affordability restrictions may
also be pursued on future multi-family and single family units within the City's Specific
Plan areas governed by development agreements stipulating the provision of affordable
housing.
Preservation: There is one multi-family development located
in a Project Area that has 20% of the units at affordable rents. This program will involve
working with the owners to extend the current affordability term and increase the
percentage of units with affordable rents. The accomplishment of this program will
provide a significant contribution to the Agency's affordable housing obligation.
Land Writedown: The Agency will implement a program to
provide a writedown of land costs and thereby help to meet the production obligations.
The degree to which the obligations will be met by this program will depend on surplus
land availability; current and future land values; and the dollar amount available in the
Housing Fund.
(5) Replacement Housing
Section 33490(a)(3) requires that if the Implementation Plan
contains a project that will result in the destruction or removal of dwelling units that will
have to be replaced pursuant to subdivision (a) of Section 33413, the Implementation
Plan shall identify proposed locations suitable for the required replacement dwelling
units.
The projects proposed and described in this Implementation Plan
will not cause the destruction or removal of dwelling units. Moreover, the Agency has
not previously incurred any replacement housing obligations. Therefore, no
replacement housing sites need to be identified. In the event projects are proposed in
the future that will cause the destruction or removal of existing housing occupied by low
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or moderate income persons, the Agency will comply with its replacement housing
obligations pursuant to Sections 33413(a) and 33415.
(6) Consistency with the Housing Element
The basic policy direction for the Housing Implementation Plan is
derived from the Housing Element. The Housing Implementation Plan must be
consistent with the City's Housing Element. According to the California Department of
Housing and Community Development ("HCD"), consistency means that the two plans
should not propose different activities using the same agency resources, or different
uses for the same funds, or conflicting schedules or objectives.
Housing element law, according to HCD, requires the element to
"set forth a five-year schedule of actions the local government is undertaking or intends
to undertake to implement the policies and achieve the goals and objectives of the
housing element through ... the utilization of moneys in a (redevelopment agency's)
Low and Moderate Income Housing Fund" (Government Code Section 65583[c]).
Amd Ast Implementation Plan 2005-
2009 (FINAL).doc
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ATTACHMENT NO.1
MAPS OF PROJECT AREAS
. [Attached]
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__ AREA NO.1 ORIGINAL
12~1 AREA NO.1
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1'1 AREA NO.3 1:65,000
P
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY
PROJECT AREA BOUNDARIES
CITY or ~~.
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