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Home My WebLink About1987 015 CC RESO1987 015 CC RESO÷éRESOLUTION NO. 87-15 A RESOLUTION OP THE CITY COUNCIL OF THE CITY OF BALDWIN PARK FINDING THAT A SUBSTANTIAL EFFORT TO MEET LOW AND MODERATE INCOME HOUSING NEEDS IN THE CITY OF BALDWIN PARK IS BEING MADE AND THAT THIS EFFORT, INCLUDING THE OBLIGATION OF FEDERAL FUNDS FOR LOW AND MODERATE INCOME HOUSING IS EQUIVALENT IN IMPACT TO THE FUNDS OTHERWISE REQUIRED TO BE SET ASIDE PURSUANT TO SECTION 33334.2 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND THAT CONSIDERATION HAS BEEN GIVEN TO INCREASED HOUSING REQUIREMENTS RESULTING FROM IMPLEMENTATION OF THE SAN GABRIEL RIVER REDEVELOPMENT PROJECT WHEREAS, the Redevelopment Plan for the San Gabriel RiverRedevelopment Project has been prepared; and WHEREAS, Section 33334.2 of the California Health and Safety Code requires that not less than 20% of all taxes be used by the Agency for purposes of increasing and improving the community's supply of low and moderate income housing unless certain findings are made; and WHEREAS, the City Council has received the Report attached as Exhibit A" and incorporated herein, which describes programs in the City of Baldwin Park which increase the supply of low and moderate income housing in the community; and WHEREAS, said report substantiates that the total impact of existing housing assistance programs in the City of Baldwin Park is significantly greater than the tax increment funds which would otherwise be required to be used for the benefit of low and moderate income housing, NOW, THEREFORE, the City Council of the City of Baldwin Park does hereby resolve, determine and order as follows: SECTION 1. The City Council hereby finds and determines that a substantial effort to meet low and moderate income housing needs in the community is being made and that this effort, including the obligation of funds currently available for the benefit of the community from Federal sources for low and moderate income housing is equivalent or greater in impact to the funds otherwise required to be set aside pursuant to Section 33334.2 of the California Health and Safety Code. * SECTION 2. The City Council further finds that it has considered potential increases in low and moderate income housing needs due to increased employment opportunities and other factors which may directly or indirectly result from the implementation of the San Gabriel River Redevelopment Plan, and has concluded that any such negative impact will be insubstantial SECTION 3. The City Clerk shall certify to the adoption of this resolution. /-^ / / APPROVED and ADOPTED this 4thr(iaTy of February, 1987. MAYOR BIB] 37847-U01 1987-U02 015-U02 CC-U02 RESO-U02 LI3-U03 FO2126-U03 FO20370-U03 DO20550-U03 C6-U03 RESO-U03 8/12/2003-U04 ROBIN-U04 1987 015 CC RESO÷éRESOLUTION NO. 87-15 PAGE TWO STATE OF CALIFORNIA COUNTY OF LOS ANGELES) ss. CITY OF BALDWIN PARK I, LINDA L. GAIR, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing Resolution was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at a REGULAR MEETING of the City Council on the 4th day of February, 1987, by the following vote; AYES: COUNCILMEN GIBSON, KING, IZELL AND MAYOR WHITE______ NOES: COUNCILMEN NONE ABSENT: COUNCILMEN NONE n^DA L. GJ^, CITY CLERK i l BIB] 37847-U01 1987-U02 015-U02 CC-U02 RESO-U02 LI3-U03 FO2126-U03 FO20370-U03 DO20550-U03 C6-U03 RESO-U03 8/12/2003-U04 ROBIN-U04 1987 015 CC RESO÷é20% HOUSING REQUIREMENT REPORT FOR THE SAN GABRIEL RIVER REDEVELOPMENT PROJECT INTRODUCTION Pursuant to Section 33334.2 of the California Health and Safety Code, Not less than 20% of all taxes which are allocated to the Agency pursuant to Section 33670 shall be used by the Agency for purposes of increasing and improving the community supply of housing for persons and families of low and moderate income as defined in Section 50093, and very low income housing as defined in Section 50105 unless one of the following findings are made: a. That no need exists in the community, the provision of which would benefit the Project Area to improve, or increase the supply of housing for persons and families of low and moderate income or very low income households b. That some stated percentage less than 20% of taxes which are allocated to the Agency pursuant to Section 33670 is sufficient to meet such housing needs; or c. A substantial effort to meet low and moderate income housing needs in the community is being made and that effort including the obligation of funds currently available for the benefit of the community from state, local and federal sources for low and moderate income housing alone or in combination with other taxes allocated in this section is equivalent in impact to the funds otherwise required to be set aside pursuant to this section. Legislative bodies shall consider the need that can be reasonably foreseen of low and moderate income or very low and moderate income households from within or adjacent to the Project Areas because of increased employment opportunities, or because of any other direct or indirect result of implementation of the Redevelopment Plan. SUBSTANTIAL REPORT The City of Baldwin Park, through its Housing Authority, its Local Development Corporation and through its use of Community Development Block Grant Funds is making a substantial effort to meet its low and moderate income housing needs. A number of housing programs are now being utilized in Baldwin Park, including the Section 8 Housing Assistance Payments Program for both new construction and existing units; the use of Community Development Block Grant CDBG) funded residential rehabilitation loans for low and moderate income households; and the use of CDBG funds to acquire and rehabilitate residential properties which are then, through a Local Development Corporation, leased to the Baldwin Park Housing Authority for use by Section 8 tenants. BIB] 37847-U01 1987-U02 015-U02 CC-U02 RESO-U02 LI3-U03 FO2126-U03 FO20370-U03 DO20550-U03 C6-U03 RESO-U03 8/12/2003-U04 ROBIN-U04 1987 015 CC RESO÷éNEEDS RESULTING FROM THE IMPLEMENTATION OF THE REDEVELOPMENT PLAN The implementation of the San Gabriel River Redevelopment Plan will not require the displacement of any residences or businesses and therefore will not directly increase low and moderate income housing needs in the community. The project will result in the creation of a substantial number of new jobs. The industrial facilities are and will be occupied by a variety of tenants ranging from the small local firm to national and even international tenants. The jobs which will be created will be equally varied ranging from the unskilled to the highly skilled, and including blue collar", white collar", clerical, technical and managerial. There may be some pressure on the existing low and moderate income housing market as a result of non-resident employees seeking housing in close proximity to their new places of employment However, it is estimated that a local source of employment will enable many existing low and moderate income households who are presently un- or underemployed to raise their incomes and reduce the percentage of their income, which is spent for housing purposes, and absorb increases in housing costs caused by general inflationary factors totally unrelated to the redevelopment activities of the City. Overall impacts of the Redevelopment Project are expected to be beneficial in that a blighted and largely unproductive area is being substantially improved with respect to the number of jobs created, the substantial increase in the property tax base, and the greater demand for retail services within the City- FINDINGS The City of Baldwin Park has instituted a number of programs designed to increase the supply of low and moderate income housing units in the community. Since 1982, these programs have made available a total of 555 standard units for the low and moderate income housing market. The combined community contribution to these programs totals nearly $15,000,000 during that period. The specific programs and agencies which are participating in these programs are described as follows: 1. Baldwin Park Housing Authority The Baldwin Park Housing Authority administers a rental assistance program for low and moderate income households. The Authority currently provides rental assistance to four hundred ninety-eight 498) households at a direct annual cost of approximately $2,800,000. The rental assistance program is an ongoing program, without any expected termination date. The Housing Authority has from time to time applied for and received additional funding to expand the assistance program. In addition, the Housing Authority currently has under construction twelve 12) units of housing for senior citizens. These units are being built at a total cost of $800,000 of which $576,000 is being paid by the Authority. These units will be owned and operated by the Authority. 2. City of Baldwin Park Community Development Block Grant Program. The City of Baldwin Park has elected to devote a substantial portion of its Community Development Block Grant CDBG) funds to the creation and improvement of low and moderate income housing. Specifically, more than $377,000 has been loaned to low and moderate income households for the 2- BIB] 37847-U01 1987-U02 015-U02 CC-U02 RESO-U02 LI3-U03 FO2126-U03 FO20370-U03 DO20550-U03 C6-U03 RESO-U03 8/12/2003-U04 ROBIN-U04 1987 015 CC RESO÷éimprovement of their homes. The rehabilitation loan program has been set up on a revolving basis which provides a perpetual source of new loan funds as the existing loans are repaid. Community Development Block Grant funds in the approximate amount of $224,000 have also been allocated to the senior citizens housing project noted above. Additional CDBG funds in the amount of $131,000 have been allocated or spent to acquire land for additional low and moderate income housing. 3. Baldwin Park Redevelopment Agency The Baldwin Park Redevelopment Agency has allocated or spent more than $2,587,500 to write down the cost of land for a 265 unit condominium project for moderate income households. The Agency additionally issued mortgage revenue bonds in the amount of $14,500,000 to assist moderate income first time" home buyers acquire these units. As stated above, the Community's total contribution toward low and moderate income housing since 1982 is nearly $15,000,000 and is expected to continue at an annual rate of $2 8 to $3 0 million. By way of contrast, the Redevelopment Agency's cumulative total tax increment revenues all projects since 1977) total $2,528,852. Twenty percent of this cumulative total equals $506,000, which has been exceeded by a factor of six each year since 1982, and which expenditures are expected to continue for the forseeable future at a comparable ratio. Specifically, with respect to the San Gabriel River Redevelopment Project, it can be demonstrated that substantial efforts to meet low and moderate income housing needs are being made which are substantially greater in impact relative to the funds otherwise required to be set aside pursuant to Section 33334.2 of the California Health & Safety Code. Based on the tax increment projections prepared for the preliminary Official Statement" for the 1987 Tax allocation Note Refinancing Issue, the projected tax increment for the year AD2012 is $2,650,000 per year. Twenty percent of this total equals $530,000. As stated above, the current annual levels of community spending are six times greater than the maximum funds estimated to be otherwise available twenty- five years from now. In summary, the City of Baldwin Park, through its various agencies, has, is, and will continue to make a substantial effort to meet low and moderate income housing needs in the community. Further- more these efforts, which currently include the obligation of funds from Federal and local sources, is substantially greater in impact to the funds otherwise required to be set aside pursuant to Section 33334.2 of the California Health & Safety Code with respect to the San Gabriel River Redevelopment Project and with respect to all adopted redevelopment projects within the City of Baldwin Park. 3- BIB] 37847-U01 1987-U02 015-U02 CC-U02 RESO-U02 LI3-U03 FO2126-U03 FO20370-U03 DO20550-U03 C6-U03 RESO-U03 8/12/2003-U04 ROBIN-U04