PURPOSE

The purpose of this memorandum is to transmit for the City Council�s consideration the Draft Amended Relocation Plan or Draft Amended Relocation Plan (Exhibit A) for the Peyton�Grismer Revitalization Project (Project) to initiate the 30-day plan review period.

BACKGROUND

The Burbank Redevelopment Agency (Agency) and the Burbank Housing Authority (Authority) have been engaged in acquiring property for the Project located within the Peyton-Grismer focus neighborhood.  The Agency has acquired 1819 Grismer Avenue and the owner of 1801-1815 Grismer Avenue has agreed to a stipulated judgment.   In a concurrent action, the Agency is negotiating terms of a Disposition and Development Agreement or DDA with the Burbank Housing Corporation (BHC) under which BHC is to acquire these properties from the Agency, rehabilitate and operate a mixed-income, affordable housing development of approximately 60 units.

Acquiring and rehabilitating the Project will require the relocation of tenants and, accordingly, the necessity to prepare a Plan.  Under California Relocation Guidelines, a relocation plan is required subsequent to the initiation of negotiations and precedent to any action prompting displacement, in this instance, acquisition and rehabilitation actions. Consequently, the Agency�s relocation consultants, Pacific  

Relocation Consultants (PRC) prepared a Draft Relocation Plan, which was accepted by the Council on October 22, 2002.  And, on January 14, 2003, the Council adopted the Relocation Plan for the Project.  

ANALYSIS

The Agency and Authority have initiated condemnation action against the owner of 1729-1735 Elliott Drive (Elliott Site), a site contiguous to the aforementioned Grismer properties and within the Peyton-Grismer focus area.  The Plan included a description of the area and the Project site, an assessment of the relocation needs of potential displaces and available replacement housing in Burbank and set forth the steps and procedures to ensure a fair and equitable relocation program.  The Draft Amended Relocation Plan describes the Elliott Site and potential units lost and households displaced from the Elliott Site.

A Description of the Area and the Specific Project Site

The Project site is located north of State Highway 5 on the west side of Grismer Avenue on a portion of the block bound generally by Elliott Drive to the north, Grismer Avenue to the east, Morgan Avenue produced easterly to Grismer Avenue to the south and Keeler street to the west.  This includes the Elliott Site, which is the source of the Plan Amendment, located between Keeler Street and Grismer Avenue and includes five residential structures contained on a 19,100 square foot site.

The previously approved Plan suggested that the Project entailed the Authority�s purchase of 87 rental units, 27 of which will be demolished by the time rehabilitation is completed, leading to the displacement of 27 households.  The Draft Amended Relocation Plan mentions that the Elliott Site will add 12 residential units to the Project, two that will be removed by Project completion requiring the displacement of two households.  Combined, a total of 29 households will be displaced by the Project, as amended. 

An Assessment of the Relocation Needs of Residents Expected to be Displaced by the Project

The adopted Plan pointed out �Generally, displacee households consist of �very low� and �lower� income households (86% of respondents in this field).�   The Draft Amended Relocation Plan indicates that the two displacee households from the Elliott Site are very low-income.  The following table summarizes reported income levels of those households (21 of 27 households) responding to PRC�s initial survey for the adopted Plan plus reported income levels of the households for the Elliott Site. 

The previously approved Plan noted that a �considerable degree of �upgrading� in dwelling unit sizes predicated upon bedroom-count� would be required.  Of the households interviewed (25 of 27 in the adopted Plan plus the two households at the Elliott Site), it was found that most of the households to be displaced are currently overcrowded (based upon the Agency�s occupancy standard of two persons per bedroom plus one additional person) suggesting a need for units with more bedrooms.

*           The two households in two-bedroom units at the Elliott Site were not

          overcrowded 

An Assessment of the Availability of Replacement Housing in Burbank

The Adopted Plan points out that, with regard to rental housing, �there will be an increase in the monthly cost of replacement dwelling units in comparison to current rents.�  PRC indicated that, given today�s tight housing market and the requirement that housing resources must be available in the open market when displacement occurs, (a) relocation staff will constantly canvas the city to locate rental units that are not currently advertised but may be available and (b) displacee households requiring �Last Resort Housing� or extended rent subsidy payments will be counseled regarding the potential use of these payments to the purchase of a replacement dwelling.  Should a displacee household be eligible to return to the Project and opt to do so, rental assistance payments (RAP) will be pro-rated to the time the household occupies a unit again in the Project.  Computation of a RAP under State Relocation Law is predicated upon the monthly housing need multiplied by 42 months.

The Draft Amended Relocation Plan points out that �Replacement resources should be adequate to relocate the prospective two households,� and that neither household indicated any special needs.

The Steps and Procedures to be Undertaken to Ensure a Fair and Equitable Relocation Program

The relocation program that the Agency is to implement is in accordance with State Relocation Law (Government Code Section 7260, et. Seq.) and Relocation Assistance and Real Property Acquisition (Title 25, Chapter 6) and, as such, is intended to achieve the following objectives:

q       Inform all eligible occupants of the relocation process, assistance and benefits;

q       Determine the needs of each eligible displacee household;

q       Provide current information on replacement housing opportunities and an adequate number of referrals to comparable

      decent, safe and sanitary housing units;

q       Provide non-discriminatory relocation assistance to all relocated persons;

q       Assist each eligible person to complete applications for benefits;

q       Make relocation benefit payments in accordance with the State relocation guidelines;

q       Inform all persons subject to displacement of the Agency�s policies with regard to eviction and property management; and

q       Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of

      Agency decisions with respect to relocation assistance.

In conformance with State relocation guidelines, the Draft Amended Relocation Plan is to be available for public review for 30 days before any relocation activities are initiated, including issuance by the Agency to any displacee household of a 90-day notice to vacate.

ENVIRONMENTAL REVIEW

The Housing Authority, acting as the lead agency has determined that, pursuant to the California Environmental Quality Act (CEQA), the Draft Amended Relocation Plan is covered under the Negative Declaration previously prepared for the Peyton-Grismer Revitalization Project.

FISCAL IMPACT

There will be no direct fiscal impact to the City General Fund.  Any relocation costs incurred in eliminating units as outlined in the Amended Plan will be funded by the Agency Low Moderate-Income Housing funds are budgeted and available under 305. CD23A.70005.0000.13160.  

RECOMMENDATION

Staff recommends that the City Council accept the Draft Amended Relocation Plan for the Peyton-Grismer Revitalization Project for public circulation and instruct staff to return at the end of the 30-day review period at which time the City is to consider the adoption of the Amended Relocation Plan.

EXHIBITS

A         Draft Amended Relocation Plan

Pgrelocationplan

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