PURPOSE

The purpose of this memorandum is to convey for the Burbank Redevelopment Agency�s (Agency) consideration the Amended Replacement Housing Plan or Amended Plan (Exhibit A) for the Peyton�Grismer Revitalization Project (Project).

BACKGROUND

California Redevelopment Law under Section 33413.5 (Healthy and Safety Code, Section 33000 et seq.) stipulates that a redevelopment agency is to adopt a replacement housing plan at least 30 days in advance of entering into an agreement that would lead to the destruction or removal of residential units from the low and moderate income housing market.   A replacement plan identifies the affects a redevelopment project will have on the local jurisdiction�s low and moderate-income housing supply and measures an agency will undertake to provide comparable replacement housing.

Redevelopment Law [Section 33413(a)] also 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 commensurate with those households displaced from units removed through Agency assisted projects.

ANALYSIS

On November 19, 2002, the Agency adopted the Replacement Plan for the Peyton-Grismer Revitalization Project (Replacement Plan) affecting properties at 1801-1815 and 1819 Grismer Avenue in anticipation that there would be a loss of low and moderate-income units.  The Agency retained Pacific Relocation Consultants (PRC) to prepare the Replacement Plan to describe the Project, the location of very low, low and moderate-income units to be removed, the general location of replacement units, the financing of the Project and a schedule for the development of replacement housing and the period of affordability. 

Recently, PRC was asked to prepare an amendment to the previously approved Replacement Plan (Amended Plan) for the purpose of incorporating an adjoining site comprised of 12 units at 1729-1735 Elliott Drive (Elliot Site).  The Burbank Housing Authority has initiated condemnation action against the owner of the Elliott Site and the Agency has prepared the Amended Plan as a prerequisite step before any demolition can occur subsequent to the Authority taking site control.

PROJECT DESCRIPTION

The Project entails the acquisition and rehabilitation of certain blighted buildings located in an R-4 medium density residential neighborhood within the Peyton-Grismer focus area. The original Plan included 87 residential units at 1801-1815 and 1819 Grismer Avenue.  The Elliott Site, which triggered the Amended Plan, is comprised of 10 two-bedroom and two three-bedroom units and includes five residential structures contained on a 19,100 square foot site. 

The Burbank Housing Authority and Agency acquired 1819 Grismer Avenue (3 units), reached a stipulated judgment with the owner of 1801-1815 Grismer Avenue (84 units) and are pursuing acquisition of the Elliott Site (12 units), using Low Moderate-Income Housing funds.  Upon acquisition, these properties will be sold to the local nonprofit housing developer, the Burbank Housing Corporation (BHC), via a Disposition and Development Agreement (DDA).

The Project will result in the removal of units required to ameliorate inadequate on-site circulation, while allowing site improvements to increase parking and open space.  At completion, the Project will require reducing the current 99 units to 70 units, a loss of 29 residential units, including two units identified in the Amended Plan for the Elliott Site.  The remaining 70 units will be rehabilitated (staged work to temporarily relocate tenants during rehabilitation of their units).

REPLACEMENT PLAN SUMMARY

Under State Redevelopment Law, the Agency is required to make available, at affordable housing costs, replacement units to persons with the same or lower-income categories as those units removed by the Project.  State Redevelopment Law [Section 33213(f)] allows an agency to replace units removed by an agency assisted project with a less number of replacement units if the total number of bedrooms for the replacement units is at least equal to the number of bedrooms n the destroyed units and the replacement units are affordable to those of the same income categories of the displaced households.

The Amended Plan notes that two two-bedroom units would be destroyed at the Elliott Site, increasing to 29 the number of units to be removed for the Project: 18 one-bedroom, 10 two-bedroom and one three-bedroom. The Amended Plan states that two very low-income households will be displaced from the Elliott Site, increasing the number of households being relocated from the Project to 28 in the following income distribution: 20 very low-income households (0-50% of median family income for the Los Angeles-Long Beach Area or MFI), six low-income households (50-80% of MFI), two moderate-income households (80-120% of MFI) and one above moderate-income household (+120% of MFI).[1]

*Includes additional two two-bedroom units from the Elliott Site.

State Redevelopment Law mandates that agencies ensure that a comparable number of replacement units to those being destroyed be developed, rehabilitated or constructed with commensurate household incomes as those being displaced within four years of the loss of the units.  The Agency has a significant surplus of replacement units (�banked� units) that were developed with Agency assistance and/or are subject to a written agreement with the Agency (e.g., Vertigo and Wesley Towers, Riverside Drive Project).  These banked units are affordable to one or more income categories (very low, low, moderate-income households) for a period of affordability extending in perpetuity or the end of the land use controls for the project area.

The following table compares the Project generated replacement housing obligations (destroyed units) to the banked units (previously created projects).

The Amended Plan notes that after development of the Project the Agency will have the following surplus of replacement bedrooms distributed by low and moderate-income categories.

The Agency will retain a surplus of 308 units (312 bedrooms) after factoring in the loss of the two units (four bedrooms) noted in the Amended Plan and exclusive of any future adjustments to include any units at 1801-1815 Grismer Avenue (1819 Grismer Avenue is being demolished) and 1729-1735 Elliott Drive that are income and rent restricted under a future DDA with BHC that qualify as replacement units.

ENVIRONMENTAL REVIEW

The Housing Authority acting as the lead Agency has determined that, pursuant to the California Environmental Quality Act (CEQA), the Amended 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. Agency LMI funds are budgeted and available under 305.CD23A.70005.0000.13057.  

RECOMMENDATION

Staff recommends that the Redevelopment Agency approve the proposed resolution adopting the Amended Replacement Housing Plan for the Peyton�Grismer Revitalization Project.

EXHIBITS

A         Amended Replacement Plan

  Amendedpgreplacementplan