BURBANK REDEVELOPMENT AGENCY

Tuesday, 2006

 

Agenda Item - 3

 

 

 

 

 

DATE:

March 6, 2007

TO:

Mary J. Alvord, Executive Director

FROM:

Susan M. Georgino, Assistant Executive Director

Ruth Davidson-Guerra, Assistant Community Development Director for Housing and Redevelopment

By:  Arelene Roldan, Redevelopment Project Analyst

SUBJECT:

REPLACEMENT HOUSING PLAN FOR THE PROPOSED 1726-28 ELLIOT DRIVE and 1730 ELLIOT DRIVE PROJECT

 

PURPOSE

 

The purpose of this report is to provide information to the Burbank Redevelopment Agency Board to consider a Replacement Housing Plan for 1726-28 Elliot Drive and 1730 Elliot Drive in preparation for a proposed affordable housing development. 

 

BACKGROUND

 

In May 2005, at a Joint Study Session on Affordable Housing with the Planning Board and City Council, staff discussed a concept for providing affordable homeownership opportunities to low and moderate-income families living in our Focus Neighborhoods.  Increasing homeownership opportunities will complement the Redevelopment Agency�s current revitalization efforts and contribute towards stabilizing our Focus Neighborhoods. 

 

In July 2005, staff and Burbank Housing Corporation (BHC) identified an opportunity in the Peyton-Grismer Focus Neighborhood for the development of such an affordable homeownership project.  With Agency assistance, BHC acquired a residential property located at 1902 Keeler Street.  BHC performed minor rehabilitation on the property which is currently occupied by a moderate-income household at an affordable rent. The acquisition of 1902 Keeler Street provided the cornerstone property for the proposed homeownership project.  As a result, adjacent properties were identified to acquire for a future affordable housing project including 1722 Elliot Drive, 1726-28 Elliot Drive, and 1730 Elliot Drive (Exhibit A).  To date, all properties have been acquired and are now owned by BHC.  The Agency Board has supported these efforts by entering into Affordable Housing Loan Agreements and providing financing to assist BHC in acquiring the properties identified for the proposed affordable homeownership development.  In addition, the Agency has provided the required relocation assistance and benefits to households pursuant to California Relocation Assistance Law.

 

Staff and BHC are in discussions with Habitat for Humanity of Greater Los Angeles (Habitat) to assist BHC in developing the properties.  Habitat has expressed an interest in participating in the proposed project and has submitted a development proposal which is currently being reviewed by staff.  The proposal includes the development of seven new residential units and the remodel of one existing unit for a total of eight units. The development of eight units would not increase the density currently existing on the site and would complement the existing lower densities along Keeler Street and remove blighted properties along Elliot Drive.  Staff intends to bring an Owner Participation Agreement for the proposed homeownership development with BHC and Habitat for the Agency�s consideration within the next 60 days.  If approved, these actions would lead to the demolition of residential units from the low and moderate-income housing market. 

 

California Redevelopment Law requires a redevelopment agency to adopt a replacement housing plan, prior to the execution of an agreement for the acquisition of real property, or an agreement for the disposition and development of property that would lead to the demolition or removal of residential units from the low and moderate-income housing market.  In anticipation of the Agency Board�s future consideration of an Owner Participation Agreement that would lead to the demolition of 1726-28 Elliot Drive and 1730 Elliot Drive, staff has contracted with Overland, Pacific & Cutler, Inc., an acquisition and relocation consulting firm, to prepare the attached Replacement Housing Plan (Plan) for the Agency Board�s consideration and approval.  The Plan identifies the number of housing units and bedrooms that require replacement by the Agency as a result of the proposed demolition of 1726-28 Elliot Drive and 1730 Elliot Drive (Exhibit B).  In April 2006, the Agency Board approved a Replacement Housing Plan for the 1722 Elliot Drive property which was subsequently demolished because of its blighted and substandard condition.

 

ANALYSIS

 

Description and Occupancy of Property at 1726-28 Elliot Drive

The property at 1726-28 Elliot Drive is approximately 4,548 square feet and is located directly adjacent to 1722 Elliot Drive.  The property contains a single family home and a partially improved second dwelling unit.  The single family home is approximately 950 square feet and contains three bedrooms and one bathroom.  The building permits indicate that the detached second dwelling unit was originally the garage for the residence and was legally converted into a studio unit containing approximately 365 square feet of living space. 

 

The three bedroom single family home is currently renter-occupied and the studio (one-bedroom) is currently vacant.  For the purpose of the Plan, the Agency will consider the two units and replace the units as very low income households. 

 

Description and Occupancy of Property at 1730 Elliot Drive

The property at 1730 Elliot Drive is approximately 4,550 square feet and is located directly adjacent to and behind property at 1902 Keeler Street.  The property contains a single family home with a one-car detached garage.  The home is approximately 735 square feet and contains two bedrooms and one bathroom. 

 

The two bedroom single family home is currently renter-occupied.  For the purpose of the Plan, the Agency will consider the unit and replace the unit as a moderate-income household. 

 

Replacement Housing Plan

As stated above, California Redevelopment Law under Section 33413.5 (Health and Safety Code, Section 33000 et. sec.) requires a redevelopment agency to adopt a replacement housing plan when entering into an agreement that would lead to the destruction or removal of residential units from the low and moderate-income housing market.  The plan should identify the effect that a redevelopment project will have on the supply of low and moderate-income housing in the community and describe the measures an agency will undertake to provide comparable replacement housing.  The Replacement Housing Plan notes that Community Redevelopment Law offers a redevelopment agency two options in meeting its replacement housing obligations:

 

  • Section 33413(a) mandates that whenever housing units for low or moderate-income households are destroyed, an agency is to replace the removed units with comparable housing units within four years of demolition.  Since January 1, 2002, all replacement units must also be available at an affordable housing cost and be occupied by households whose income levels are equivalent with those households displaced from units removed through Agency assisted projects.

  • Section 33413 (f) allows a redevelopment agency to replace destroyed or removed dwelling units with a lesser number of replacement units if the following criteria are met:  (1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units, and (2) the replacement units are affordable to the same income level of the households as the destroyed or removed units.

 

Replacement units must be in standard condition and be affordable to very low, low, and moderate-income households for the longest feasible period, but not less than the land use controls set for the Redevelopment Plan.

 

The table on the next page identifies three housing units and corresponding bedrooms that will be removed from the low and moderate-income housing market as a result of the proposed demolition of 1726-28 Elliot Drive and 1730 Elliot Drive.  The replacement of units by income category will necessitate four replacement bedrooms affordable to very low-income households, and two replacement bedrooms affordable to moderate- income households.  A lesser number of units may serve as replacement units to the extent that the total number of bedrooms by income category is achieved.

 

 

1726-28 Elliot Drive and 1730 Elliot Drive

Displaced Units and Bedrooms by Dwelling Unit Size and Household Income Level

 

 

Unit

Size

Very Low-Income Units/Beds

Low-Income Units/Beds

Moderate Income Units/Beds

Total Units/Beds to be Replaced

One Bedroom

1 (1)

0 (0)

0 (0)

1 (1)

Two Bedroom

0 (0)

0 (0)

1 (2)

1 (2)

Three Bedroom

1 (3)

0 (0)

0 (0)

1 (3)

Total Dwellings & Bedrooms Displaced

2 (4)

0 (0)

1 (2)

3 (6)

 

Note:  Values in parenthesis indicate the number of bedrooms displaced.

 

 

 

 

 

 

 

The table below shows that the Agency currently has an inventory of 333 replacement units and 372 replacement bedrooms created from other Agency affordable housing projects for very low, low, and moderate-income households.  The Agency will draw from this surplus or �banked� replacement units and bedrooms to satisfy the replacement obligations for the two very low-income units (four bedrooms) and the one moderate-income unit (two bedrooms), which will result in a remaining surplus of 330 units and 366 bedrooms available for any future replacement housing needs. 

 

 

Surplus Replacement Housing Units / (Bedrooms)

 

Unit

Size

Very Low-Income Units/Beds

Low-Income Units/Beds

Moderate Income Units/Beds

Total Surplus Units/Beds

 

Total Dwelling Units Created

193 (196)

44 (53)

96 (123)

333 (372)

 

1726-28 Elliot Drive and 1730 Elliot (Housing Units / Bedrooms to be Replaced)

-2 (4)

0 (0)

-1 (2)

-3 (6)

 

Total Remaining Surplus of Units / Bedrooms

191 (192)

44 (53)

95 (121)

330 (366)

 

 

Note:  Values in parenthesis indicate the number of bedrooms displaced.

 

ENVIRONMENTAL REVIEW

 

The Redevelopment Agency, acting as the lead agency pursuant to the California Environmental Quality Act (CEQA), has determined that the proposed use of the Property is categorically exempt under CEQA guidelines section 15332 pertaining to in-fill development.  A Public Notice of Environmental Decision has been posted at the Planning Division counter.

 

CONCLUSION


California Redevelopment Law requires a redevelopment agency to adopt a replacement housing plan prior to the execution of an agreement for the acquisition of real property, or an agreement for the disposition and development of property that would lead to the demolition or removal of residential units from the low and moderate-income housing market.  In anticipation of the Redevelopment Agency Board�s future consideration of an Owner Participation Agreement that would lead to the demolition of 1726-28 Elliot Drive and 1730 Elliot Drive, a Replacement Housing Plan has been prepared for the Redevelopment Agency Board�s consideration and approval.   The Plan has identified three housing units and six bedrooms that will be removed from the low and moderate-income housing market as a result of the proposed demolition of 1726-28 Elliot Drive and 1730 Elliot Drive.  The Agency will draw from its surplus or �banked� replacement units and bedrooms to satisfy the replacement obligations for two very low-income units (four bedrooms) and the one moderate-income unit (two bedrooms). 

 

FISCAL IMPACT

 

There is no fiscal impact to the City�s General Fund and the Agency�s 20% Low and Moderate Income Housing Fund.  The Agency will use its surplus replacement housing units to meet its replacement housing obligation for the two very low-income units and the one moderate-income unit.

 

RECOMMENDATION

 

Staff recommends that the Redevelopment Agency Board approve the proposed resolution adopting the Replacement Housing Plan for 1726-28 Elliot Drive and 1730 Elliot Drive.

 

EXHIBITS

 

A         Site Plan

B         Replacement Housing Plan

 

 

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