PURPOSE

The purpose of this memorandum is to transmit for the City Council�s consideration the Amended Relocation Plan (Plan) for the Peyton-Grismer Revitalization Project (Exhibit A) following the end of the mandated 30-day 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 acquired 1819 Grismer Avenue and the owner of 1801-1815 Grismer Avenue agreed to a stipulated judgment.   In a concurrent action, the Agency is negotiating terms of a Disposition and Development Agreement (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 Relocation 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.  

The Agency and Authority subsequently initiated condemnation action against the owner of 1729-1735 Elliott Drive (Elliott Site), a site that abuts the aforementioned Grismer properties and within the Peyton-Grismer focus area.   This action triggered the preparation of a draft amendment to the earlier Relocation Plan that was accepted by the City Council on May 27, 2003.

ANALYSIS

The Amended Relocation Plan includes a description of the Elliott Site and the Project site, an assessment of the relocation needs of potential displacees, available replacement housing in Burbank and sets forth the steps and procedures to ensure a fair and equitable relocation program.  The Amended Relocation Plan also describes potential units lost and households displaced from the Elliott Site.  Accompanying the Amended Relocation Plan for the Elliott Site is the earlier Relocation Plan that studied the Project site and serves to provide a broader context of the Project.

At the time of preparation of this report, neither any member of the general public or any resident from the Elliott Site visit the Redevelopment Agency to request a copy of the Amended Relocation Plan nor did anyone visit the Administrative Office at Washington School, the nearest public facility to the Project, where a separate copy was also on file.  In the event, though, that comments are received from the public between preparation of this report and Council consideration of the Plan on July 15, 2003, those remarks will be included into the Plan as a matter of record.

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 Amended Relocation Plan mentions that the Elliott Site will add 12 residential units to the Project, however, two units will be removed by the time of Project completion, which will require 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 that �Generally, displacee households consist of �very low� and �lower� income households (86% of respondents in this field).�   The 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 Relocation 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 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 conforms to 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.

ENVIRONMENTAL REVIEW

The Housing Authority, acting as the lead agency, has determined that, pursuant to the California Environmental Quality Act (CEQA), the 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 and are budgeted and available under 305. CD23A.70005.0000.13160.  

RECOMMENDATION

Staff recommends that the City Council approve the proposed resolution adopting the Amended Relocation Plan for the Peyton-Grismer Revitalization Project.

EXHIBITS

A         Amended Relocation Plan

Pgrelocationplan

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