HomeMy WebLinkAbout1990 040 CC RESO1990 040 CC RESO (Ìì ¾ O RESOLUTION NO. 90-40
A RESOLUTION OF 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 TO 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
River Redevelopment 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 the resolution.
APPROVED and ADOPTED this 6th day of June, 1990.
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1990 040 CC RESO (Ìì ¾ O RESOLUTION NO. 90-40
PAGE TWO
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES)
CITY OF BALDWIN PARK
I, LINDA La 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
6th day of June, 1990, by the following vote:
AYES: COUNCILMEN IZELL, MCNEILL, GALLEGOS, KEYSER, MAYOR LOWES
NOES: COUNCILMEN NONE
ABSTAIN: COUNCILMEN NONE
ABSENT: COUNCILMEN NONE
C
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1990 040 CC RESO (Ìì ¾ O EXHIBIT A"
20% 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.
NEEDS RESULTING FROM THE
IMPLEMENTATION OF THE REDEVELOPMENT PLAN
The implementation of the San Gabriel River Rededevelopment Plan
did not require the displacement of any residences or businesses
to date. The development of the remaining parcels within the
project area will not require the displacement of any residences
or businesses. Therefore, low and moderate housing needs in the
community have not experienced a direct increase due to this
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1990 040 CC RESO (Ìì ¾ O project. The project has to date created 1,497 jobs; and is
expected to create an additional 1,344 jobs. The
office/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 have been created to date,
and will continue to be created, vary from the unskilled to highly
skilled, including but not limited to, labor, clerical, technical,
professional, and managerial.
There may be some pressure on the existing low and moderate
housing market as a result of non-resident employees seeking
housing in close proximity to their new places of employment.
However, to date informal studies carried out show tenants and
owners within the project area have not relocated due to their new
employment but rather followed the general Los Angeles Basin trend
of commuting from their previous residences. The City of Baldwin
Park historically has a high percentage of un- or underemployed
within its boundaries and these persons have been or will be able
to raise their income in finding new employment and thereby
reducing the percentage of their income which is spent for housing
purposes, and absorbing the increase in housing costs caused by
general inflation a factor which is unrelated to redevelopment
activities of the City).
The overall impact of the redevelopment project to date, and as
seen in the future, is beneficial. Blighted and largely
unproductive land has been substantially improved. A substantial
increase in the property tax base has been created, 2,841 new jobs
have been created, and the income generated through further
employment has additionally increased the demand for retail
services within the City.
FINDINGS
F
The City of Baldwin Park, through its Department of Housing and
Economic Development, has instituted a number of programs designed
to increase the supply of low and moderate housing units within
the community. There are presently approximately 669 units
created by the City's programs for the low and moderate income
housing market. To date the combined community contribution to
these programs totals $25,658,542.00, with additional
contributions foreseen.
The specific programs and agencies within which the City
contributed towards the low and moderate income housing market 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 Section 8 rental assistance
to 275 households at a direct rental cost of approximately
$1,382,376.00. Additionally, the Housing Authority
administers a voucher rental assistance program for 21 low
and moderate households with a direct annual cost of
$95,916.00. The rental assistance program is on-going and
is not expected to be terminated due to the City's strong
commitment to providing affordable housing within the
community. The Housing Authority has from time to time
applied for and received additional funds to expand the
assistance program.
In addition, the Housing Authority has constructed 12 units
of housing for low income senior citizens. The units were
constructed at a total cost of $750,000.00, of which
$576,000.00 was paid by the Housing Authority. These units
are owned and operated by the Housing Authority. All tenants
have an income of 50% of the median.
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1990 040 CC RESO (Ìì ¾ O 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. In the past over $500,000.00 has been loaned to low
and moderate income households for the improvement of their
homes. In the 1989-90 Fiscal Year the City has set aside
$370,000.00 for the Residential Rehabilitation Loan Program,
which has been set up on a revolving basis and provides a
perpetual source of new loan funds as existing loans are
repaid. In the 1990-91 Fiscal Year $275,000.00 was budgeted
for the Residential Rehabilitation Loan Program.
The City entered into an Agreement with United States
Department of Urban Development HUD) for access to funds
within the Section 312 Loan Program for low interest
residential rehab loans available to low and moderate income
persons only. The city is applying for $500,000.00 in
FY1990-91 and FY1991-92.
Community Development Block Grant funds have additionally
been allocated in the past for the building of the above
referenced senior citizens housing project, as well as an
additional $300,000.00 of CDBG funds which were spent to
acquire land for additional low and moderate income housing.
3. Department of Housing and Urban Development Section 202 Loan
Project
The City of Baldwin Park, through its developer, has been
awarded a $4,517,700.00 Section 202 Loan from the Department
of Housing and Urban Development. The 75 unit structure is
soon to be under construction and housing assistance is
projected of $450,000.00 for this low income housing project.
Additionally, the City acquired 2 parcels of land for
$135,000.00 which made this project possible. The
construction plans were submitted to HUD June 1, 1990 with
a scheduled construction starting date of September, 1990 and
completion of the project in September 1991.
4. Baldwin Park Redevelopment Agency
The Baldwin Park Redevelopment Agency spent more than
$2,587,500.00 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 $14,500,000.00 to assist moderate income first
time" home buyers to acquire these units.
The Agency has purchased 21 units of low and moderate income
rentals. The 21 units were purchased with Redevelopment
Agency funds for a total of $820,050.00. The Agency has
committed to continue these 21 units availability for three
more years with the option to extend the units' availability
for an additional time period.
As stated above, the Community's total contribution towards low
and moderate income housing is over $25,658,542.00. The
continuance of this contribution is estimated at an annual rate
of $1,000,000.00 per year. By way of contrast, the Redevelopment
Agency's cumulative total of tax increment revenues is
$1,699,974.00 per year. Twenty percent 20%) of this equals
$339,995.00. The Agency was created in 1974, over 15 years, even
at the present 20% tax increment value of $339,995 per year, 20%
set aside total expenditures would have been required for
$5,099,925.00. To date the Agency has expended over
$25,000,000.00. The City has exceeded by a factor of 5 its
contribution towards low and moderate income housing.
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1990 040 CC RESO (Ìì ¾ O 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.
The tax increment received for FY 1989-90 within the San Gabriel
River Redevelopment Project was $587,506.03; 20% of this total
equals $117,501.00. As stated above, the current annual
leverages of community spending are greater than the maximum funds
estimated to be available through the 20% set aside.
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.
Furthermore, 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.
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