1994-03 RESOLUTION NO. 94-03 AMS
A RESOLUTION OF THE GRAND TERRACE REDEVELOPMENT
AGENCY, CITY OF GRAND TERRACE, CALIFORNIA ADOPTING
A FIVE YEAR IMPLEMENTATION PLAN
A. Recitals.
(I) California Health and Safety Code Subseciont 33490(a)(1) provides in pertinant
part as follows:.
"On or before December 31, 1994, and each five years thereafter, each agency
that has adopted a redevelopment plan prior to December 31, 1993, shall adopt,
after a public hearing, an implementation plan that shall contain the specific
goals and objectives of the agency for the project area, the specific projects and
expenditures, and an explanation of how the goals and objectives, projects and
expenditures will eliminate blight within the project area....."
.(II) California Health and Safety Code Subsection 33490(d) provides as follows:
"Notice of public hearings shall be published pursuant to this section shall'be
published pursuant to Section 6063 of the Government Code and posted in at
least four permanent places within the project area for a period of three weeks.
Publication and posting shall be completed not less than ten days prior to the
date set for hearing."
NOW, THEREFORE, it is hereby resolved that the Grand Terrace -
Redevelopment Agency adopts a Five Year Implementation Plan.included in this
resolution as Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California,
at the meeting held on the 28th day of December, 1994.
ATTEST:
v - -
City Clerk of the City of Grand Terrace May f the City of Grand Te ace and of
the City Council thereof. and the City Council thereo .
I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, hereby certify
that the foregoing Resolution was introduced and adopted at a regular meeting of the City
Council of the City of Grand Terrace held on the 28th of December, 1994 by the following
vote:
AYES: Agency Members Hilkey, Singley, and Buchanan; Vice-
Chairman Carlstrom; Chairman Matteson
NOES: None
ABSENT: None
ABSTAIN: None
CITY CLERK
APPROVED AS TO FORM
John Harper, Cit�ttorney
RAtiD WR C
GRAND TERRA CE REDEVELOPMENT AGENCY
FIVE YEAR IMPLEMENTATION PLAN
1995-99
PREPARED BY:
REDEVELOPMENT AGENCY BOARD OF DIRECTORS
BYRON MATTESON, CHAIRMAN
GENE CARLSTROM, VICE-CHAIRMAN
DAN BUCHANAN, BOARD MEMBER
HERMAN HILKEY, BOARD MEMBER
JIM SINGLEY, BOARD MEMBER
THOMAS SCHWAB, EXECUTIVE DIRECTOR
DECEMBER, 1994
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i GRAND TERRACE REDEVELOPMENT AGENCY
FIVE YEAR IMPLEMENTATION PLAN
EXECUTIVE SUM34ARY
Formed in 1979, the Grand Terrace Redevelopment Agency has served as an important funding
resource and development tool for the City of Grand Terrace. Initially, the Agency was formed to
facilitate the construction of affordable, high quality housing. In 1981, the goals of the Agency
were again addressed, and the project area was revised to focus activities on the construction of
public improvements, housing and to stimulate the local construction activity and increase
employment opportunities. In 1983, the Agency adopted an Implementation Strategy and
maintained a consistent approach to redevelopment activities within the project areas.
Adopted pursuant to the requirements of AB 1290, this five-year Implementation Plan generally
reflects the 1983 Implementation Strategy in the establishment of goals and objectives for the
Agency to pursue in achieving gains for the City. The guiding document for this and the
Redevelopment Agency will be the City of Grand Terrace's General Plan.
This implementation plan has established Missions to reflect the general wants and needs of the
Agency; Operational Goals to focus on main implementation concepts; and Department Objectives
to reflect actual programs to implement the goals. The Missions of the Implementation Plan are as
follows:
Mission 1 "To enhance the economic health of the community throueh an increase in sales
revenues and the promotion of emplovment generating business development."
Mission 2 "The City will maintain safe environment _for Grand Terrace Residents..
Businesses and Visitors."
Mission 3 "To maximize the Ion-a-terns viability of Grand Terrace. City Government will
work towards compatible development of the business and residential sectors of
the community."
Mission 4 "To enhance existing developed areas with the upgrading of public
improvements."
Mission 5 "To cooperate in the promotion of additional lizht industrial development."
With the considerable changes occurring within the State of California, this and other economically
driven documents will periodically require revision to reflect changing needs. It is the.intention of
the Agency to revise this document in 1996.
Grand Terrace Redevelopment Implementation Plan.........Page 1
Introduction
On October 6, 1993, Governor Pete Wilson signed Assembly Bill 1290 (Isenberg). AB 1290,
enacted as Chapter 942, took effect January 1, 1994 and was sponsored by the California
Redevelopment Association (CRA). Entitled the Community Redevelopment Reform Act of 1993,
the bill includes the most sweeping changes in the Community Redevelopment Law in years. The
changes affect both existing project areas and new plan adoptions and include modifications to the
definition of blight, the end to fiscal review committees, time limits on all project areas, the repeal
of authority to receive sales tax revenues and a strong penalty provision for agencies which do not
spend their housing funds. The bill also includes specific authority for commercial rehabilitation
loans and assistance to manufacturing facilities and provides options for agencies in meeting their
inclusionary housing requirements.
One of the provisions of the bill is the requirement that each agency adopt a five-year
implementation plan which provides documentation for the link between the elimination of blight
and the proposed actions of the redevelopment agency. For redevelopment plans adopted on or
after January 1, 1994, AB 1290 requires agencies to include an implementation plan in the report
submitted by the agency to the legislative body prior to adoption of the redevelopment plan
(Section 33352; SEC 12.). Each agency that has adopted a redevelopment plan prior to December
31, 1993 must adopt, after a public hearing, an implementation plan prior to December 31, 1994
(Section 33490(a); Sec 30.). In addition, at least once during the five-year period, a public hearing
(- on the implementation plan is required to be held. Amendments to the plan may be made at this
time.
The implementation plan must describe specific goals and objectives of the agency, programs,
including program of actions and expenditures to be made within the first or next five years of the
plan, and a description of how these goals, objectives, programs and expenditures will assist in the
alleviation of blight. The implementation plan required of agencies with existing project areas must
also describe how the agency will implement both the requirement to increase, improve and
preserve low-and moderate-income housing and the inclusionary housing requirement. This section
of the plan must contain an annual housing program and specific plans for the expenditures of
monies from the Housing Fund. If the implementation plan contains a project that will result in the
destruction of low- or moderate-income housing, the implementation plan must identify proposed
locations suitable for the replacement dwelling units.
The implementation plan also has implications for the disposition of agency property and for the
agency's funding of public improvements. When the agency conveys property acquired in whole
or in part with tax increment funding, AB 1290 requires that the 33433 Report contain an
explanation of why the sale or lease of the property will assist in the alleviation of blighting
conditions together with supporting evidence. In addition, prior to the agency's paying for the cost
Grand Terrace Redevelopment Implementation Plan:........Page 2
of a public improvement or facility, AB 1290 requires the agency to find that the payment of funds
for the cost of the improvements will assist in the alleviation of blighting conditions.
The Grand Terrace Redevelopment Agency has prepared the following five-year implementation
plan addressing Project Areas A, B and C together.
Proiect Area Description
The redevelopment project area encompasses a majority of the City boundaries of approximately
three square miles. The majority of the area is utilized for residential use, with the Barton Road
Commercial Corridor servicing as the main downtown in an area of approximately 1.3 miles.
Plan Draftine Process
The process used to draft this implementation plan has involved input from a cross-section of
people including representatives from the business community, the Grand Terrace Chamber of
Commerce, the Colton Unified School District and all City departments. Further input into the
plan was solicited from elected officials and members of the public through surveys, a public
workshop and the public hearing process.
Identification of Kev Bliehtine Conditions
The adoption of AB 1290,substantially changed the definition of blight which can be used for
project areas adopted on or after January 1, 1994. Although the Grand Terrace Redevelopment
Agency's project area was adopted prior to this date and qualified under previous definitions, the
new definition included in AB 1290 was primarily relied upon to identify blighting conditions
existing in the project areas for purposes of this plan. Following is an excerpt from the Health and
Safety Code (Sections 33030 and 33031) which contains the new blight definitions. Because a
primary purpose of the implementation is to link the actions of the agency to the elimination of
blight, these sections are being presented in their entirety, rather than being incorporated by
reference.
Section 33030 and 33031 describe the conditions which define a blighted area. According to these
sections - a blighted area is one that contains both of the following:
(1) An area that is predominantly urbanized, as that term is defined in Section 33320.1,
and is an area in which the combination of conditions set forth in Section 33031 is
so prevalent and so substantial that it causes a reduction of, or lack of, proper
utilization of the area to such an extent that it constitutes a serious physical and
economic burden on the community which cannot reasonably be expected to be
Grand Terrace Redevelopment Implementation Plan.........Page 3
�i
reversed or alleviated by private enterprise or governmental action, or both, without
redevelopment.
(2) An area that is characterized by either of the following:
(A) One or more conditions set forth in any paragraph of
subdivision (a) of Section 33031 and one or more conditions set forth in any
paragraph of subdivision (b) of Section 33031.
(B) The condition described in paragraph (4) of subdivision (a)
of Section 33031.(c) A blighted area also may be one that contains the
conditions described in subdivision (b) and is, in addition, characterized by
the existence of inadequate public improvements, parking facilities, or
utilities.
33031. (a) This subdivision describes physical conditions that cause blight:
(1) Building in which it is unsafe or unhealthy for persons to live or work.
These conditions can be caused by serious building code violations, dilapidation and
deterioration, defective design or physical construction, faulty or inadequate
utilities, or other similar factors.
(2) Factors that prevent or substantially hinder the economically viable use of
capacity of building or lots. This condition can be caused by a substandard design,
inadequate size given present standards and market conditions, lack of parking, or
other similar factors.
(3) Adjacent or nearby uses that are incompatible with each other and which
prevent the economic development of those portions of the project area.
(4) The existence of subdivided lots of irregular form and shape and inadequate
size for proper usefulness and development that are in multiple ownership.
(b) This subdivision describes economic conditions that cause blight:
(1) Depreciated or stagnant property values or impaired investments, including,
but not necessarily limited to, those properties containing hazardous wastes that
require the use of agency authority as specified in Article 12.5 (commencing with
Section 33459).
Grand Terrace Redevelopment Implementation Plan.........Page 4
�_--� (2) Abnormally high business vacancies, abnormally low lease rates, high
turnover rates, abandoned buildings, or excessive vacant lots within an area
developed for urban use and served by utilities.
(3) A lack of necessary commercial facilities that are normally found in
neighborhoods, including grocery stores, drug stores, and banks and other lending
institutions.
(4) Residential overcrowding or, an excess of bars, liquor stores, or other
businesses catering exclusively to adults, that has led to problems of public safety
and welfare.
(5) A high crime rate that constitutes a serious threat to the public safety and
welfare.
The following conditions have been identified in the project areas. Attachments to this
implementation plan list in more detail examples of these blighting conditions.
Physical Conditions of Blight Existing In Project Areas
Unsafe Buildings
The project area contains numerous buildings, both commercial and residential, which do not meet
current public safety codes due to lack of fire sprinklers and other obsolete and unsafe
construction methods. In addition, areas exist within the project area which have poorly maintained
buildings, both commercial and residential, necessitating a large amount of code enforcement
oversight. Other buildings are in need of seismic safety reinforcement.
Incompatible Adiacent Uses,
There exist within the project area many instances of residential uses adjacent to heavy industrial or
commercial uses without any kind of buffer to serve as a transition area to the adjacent uses.
Irreeularly Shaped/Inadeauate Sized Lots
Although examples of irregularly shaped and inadequately sized lots exist throughout the project
area, Grand Terrace's downtown core is comprised primarily of this type of lot:
Grand Terrace Redevelopment Implementation Plan.........Page 5
Economic Conditions of Blight Existing in Project Areas
Depreciated or Staenant Property Values.
Within the last two years, many owners of large pieces of property within the project areas have
filed for property tax reassessments due to declining property values. Although some of the decline
is due to the California real estate market, long term vacancies of large industrial facilities also are
not uncommon as companies have downsized, gone out of business or moved out of Grand Terrace
and California.
Economicallv Obsolete Buildinas/1-ots
There are also several special use buildings, which have become vacant due to the effects of
military downsizing and the restructuring of the banking and insurance industry. Although these
buildings are and fairly well-maintained, they present a huge marketing challenge due to their size
and limited application to other suitable uses.
Inadequate Public Improvements
The project areas have major infrastructure deficiencies which have been identified and include the
need for major street reconstruction's, storm drains and sewer improvements and improvements of
underground utility projects.
r
Proposed Agencv Five-Year Goal and Obiectives
Section 33490 (a)(1) states that the Implementation Plan shall contain the specific goals and
objectives of the Agency for the project area. The City of Grand Terrace requires that all of the
work performed in the organization, including that of the Redevelopment Agency, must relate to a
basic policy direction as developed by the City Council/Agency Board. The fundamental building
blocks upon which this policy direction is established are the.CouncillBoard's Mission Statements.
These Mission Statements are then used by each of the various City.departments to develop
Operational Goals. Operational Goals are then followed by Departmental Objectives which are
used to formulate specific action programs used to implement the Operational Goals. The
following list outlines the Mission Statements which pertain to redevelopment activities; the
Operational Goals developed to support each Mission Statement; and the Departmental Objective
developed to implement the Goal. A matrix linking each of these goals to the alleviation of blight
is attached (Attachment 1).
Mission I "To enhance the economic health of the community throuirh an increase in sales
revenues and the promotion of emplovment zenerating business develooment."
Grand Terrace Redevelopment Implementation Plan.........Page 6
.Y
Although Grand Terrace is primarily a residential community, there is presently a main
commercial/ business corridor and prime commercial property. The focus of this effort shall
include the maintenance, renewal and enhancement of existing retail centers along Barton Road and
the promotion of additional retail development.
Operational Goal- Economic and Marketing Plans
Department Objective- Begin the development of an
economic development plan and marketing scheme.
Mission 2 "The City will maintain safe envimnment _for Grand Terrace Residents..
Businesses and Visitors."
The City will continue to use education and prevention approaches as well as enforcement to
enhance people's sense of security. Public safety is a basic element of Grand Terrace being a
special place.
Operational Goal- Improve Public Safety in the Project Areas
Department Objective- Establish a Commercial
Rehabilitation Loan/Grant Program to upgrade
deteriorated or unsafe buildings.
Department Objective- Assist in the
improvement of public infrastructure within the
project areas.
Department Objective- Establish and maintain a
more effective code enforcement program for major
code violations to ensure that business areas and
neighborhoods are attractive and clear of public
nuisances.
Mission 3 "To maximize the ion-&-term viability of Grand Terrace. City Government will
work towards compatible development of the business and residential sectors of
the community."
The success of the implementation of this redevelopment plan will be assisted through adherence
and conformity to the goals and objectives of the City's General Plan. A thriving and enjoyable
Grand Terrace Redevelopment Implementation Plan.........Page 7
r community will be sustained by ensuring a compatibility of the physical, economic and human
development of the City. Through the enhancement of business, housing and community
resources, the Grand Terrace City Government will recognize the diverse needs of its residents and
businesses. A vital Grand Terrace over the long term requires protecting our environmental assets,
as well as promoting our local economy so that all Grand Terrace residents can benefit from a
prosperous community.
Operational Goal- Promote Affordable Housing
Department Objective- Implement affordable housing
projects and programs outlined in the Agency's Housing
Plan in order to enhance and increase Grand Terrace's
stock of quality affordable housing.
Operational Goal-Housing Preservation
Department Objective - To preserve the existing housing
supply as an affordable housing opportunity resource when
possible. The Agency will focus it efforts toward the
rehabilitation of those existing housing units which will
provide affordable housing.
Operational Goal- Promote A Balanced Business Community
Department Objective - Implement a
Commercial/Industrial Economic Enhancement Strategy in
order to retain and attract businesses which will strengthen
Grand Terrace's economic base and, in so doing, provide
the base necessary to continue to provide excellent City
services.
Mission 4 "To enhance eristine developed areas with the upFrndine of Public
improvements. "
Capital improvements have been a key target of discretionary redevelopment funds since the
inception of the initial redevelopment plans. As stated in the 1983 Implementation Strategy, "the
CRA budget was prepared with the intent to give the citizens of Grand Terrace the maximum
amount of capital improvements at minimum cost for management and administration."
Operational Goal- Five Year Capital Improvement Program
Grand Terrace Redevelopment Implementation Plan.........Page 8
i
Departmental Goal - Initiate the development of an on-going
five year capital improvement program to designate needed
financial resources toward basic capital needs.
Mission S "To cooperate in the promotion of additional Ukht industrial development."
The City's general plan identifies a goal primarily directed at industrial development: "The City
shall promote the development of labor-intensive, non-polluting industry which is compatible with
the present land use pattern." Redevelopment is seen as an effective vehicle to attracting and
selecting desired businesses.
Proposed Agencv Programs to Eliminate B ' tin Conditions
Below is a general description of each of the programs proposed to alleviate the blighting conditions
identified. Please see the attached matrix (Attachment 2) which shows the linkages between each of
these programs and the specific blighting condition addressed.
Downtown Revitalization
This program, which is outlined in the Barton Road Specific Plan, provides for the revitalization of
the City's downtown core and, in so doing, the alleviation of a number of blighting conditions. The
program consists of a multi-phase project which combine retail, commercial and business
enhancements to invigorate the downtown by bringing people to the area.
Commercial Rehabilitation Proarams
This program, which is in development, consists of financial assistance in the forms of loans or
grants to facilitate the rehabilitation of commercial buildings which do not meet current building
and safety code requirements.
Affordable Housine Programs
Programs-to increase the city's supply of affordable housing also will be continued. Please refer to
the section below entitled,"Implementation of Affordable Housing Programs" for
a more detailed description.
Proposed Program Expenditures to Eliminate Blighting Conditions
The Health and Safety Code further specifies in its discussion of implementation plan requirements
that agency expenditures be linked to the alleviation of the blighting conditions identified. A matrix
Grand Terrace Redevelopment Implementation Plan.........Page 9
has been developed (Attachment 3) which details the Agency's proposed expenditures as they relate
to the programs described above.
1knWementation of Affordable Housing Programs
In addition to the programs described above, the implementation plan must also describe how the
requirements of Sections 33334.2, 33334.4, 33334.6 and 33413 will be implemented. These
sections of the Health and Safety Code refer to the agency's responsibility to increase, improve and
preserve the community's supply of low- and moderate-income housing at an affordable housing
cost as defined in Section 50093, and very low income households as defined in Section 50105.
As described in Section 33490 (2), the implementation plan shall contain, for each of the five years,
an annual housing program with sufficient detail to measure performance pursuant to the
implementation plan: the number of housing units developed, rehabilitated, price-restricted,
otherwise assisted, or destroyed. If the implementation plan does describe a project in which units
will be destroyed, the plan shall identify proposed locations suitable for the replacement of those
dwelling units.
Following is a list of those programs which the Grand Terrace Redevelopment Agency expects to
begin within the next five years, the number of affordable housing units associated with each and
their targeted income levels, and the type of assistance provided. Two tables are attached
(Attachments 4 and 5) which lists each potential project, the number of units to be provided and the
income level addressed. Other projects under these programs may be considered and developed in
lieu of, or in addition to those shown. As an additional reference, the Agency's Housing
Replacement Plan mandated by Assembly Bill 315 is attached (Attachment 6).
Affordable Housing Land Bank,
Initiate a program for the purchase land for potential sites for future development of family housing
affordable to moderate income and first-time homebuyers.
Single Familv Residential Rehabilitation Programs,
• Continue to purchase and operate rehabilitation program for single family homes for sale to
low-moderate homebuyers.
• Continue to operate a multi-faceted housing rehabilitation program consisting of below market
rate and deferred payment loans for home rehabilitation.
• Formulate program to provide partial funding for the construction of granny-flats/second units
that meet specified locational and other criteria.
Grand Terrace Redevelopment Implementation Plan.........Page 10
T- - Housing Assistance Loan/Grant Programs
f
Formulate program to assist moderate and first time homebuyers with the purchase of previously
existing resale homes.
New Residential Construction Programs
The Agency has participated, and continues to participate, with private sector for-profit and non-
profit housing developers to develop a mix of ownership and rental affordable and market-rate
housing in the Agency's project areas as well as citywide.
Regional Housing Participation
With the stagnation and limited development of housing opportunities for very low and low units,
the Redevelopment Agency will work with local and regional housing agencies to promote the
development of these types of units.
Conclusion
The implementation Plan for the Grand Terrace Redevelopment Agency, detailed above, describes
the programs which are proposed to be undertaken during the next five years in order to assist in
the alleviation of blighting conditions existing in the project areas and to increase the community's
supply of affordable housing. Redevelopment is, however, a very fluid process subject to a myriad
of changing issues and the forces of market dynamics. For these reasons a provision for review
and amendment to the implementation plan is included in the requirements of AB 1290. The law
requires that the plan be the subject of periodic public review. This review must be held in a
noticed public hearing at least once during the five-year period, no earlier than two years and no
later than three years after adoption of the plan. In addition to the mandated review, the Agency
may review and amend the plans, goals, objectives and programs and expenditures (following a
noticed public hearing) at any time conditions require such an amendment.
Attachments: 1 - Goals and Objectives Matrix
2 - Programs Matrix
3 - Proposed Programs Expenditures Table
4 - Affordable Housing Units Table
Grand Terrace Redevelopment Implementation cPlan.........Page 11
�— GRAND TERRACE REDEVELOPMENT AGENCY
Housing Replacement Plan.
INTRODUCTION
The California Community Redevelopment Law, Health and Safety Code Sections 33000 et seq.,
state that one of the fundamental purposes of redevelopment is to increase and improve the
community's supply of low- and moderate-income housing. This is accomplished in part through
three different but interrelated requirements imposed on the Agency by California law. These three
requirements provide for the production, improvement and preservation of housing for low and
moderate income persons. These requirements are:
20 percent of tax increment revenue must be expended to increase, improve and
preserve the supply of low and moderate income housing in the community (H&S
33334.2); the Agency must replace low and moderate income housing which is
removed as a result of a redevelopment project (the replacement rule, H&S
33413[a]); and a fixed percentage of all housing constructed in a redevelopment
Project Area must be affordable to low and moderate income persons and families
(the inclusionary rule, [H&S 33413 [b]).
Section 33413(b)(4) of the Health and Safety Code requires that each redevelopment agency shall,
by January 1, 1993, adopt a plan to comply with the requirements of the inclusionary rule. In
addition, Sections 33413.5 and 33334.5 requires replacement housing plans for compliance with the
replacement rule.
HEALTH AND SAFETY CODE SECTIONS ADDRESSING REPLACENIENT AND
INCLUSIONARY HOUSING PLANS AND REQUIREMENTS
H&S Section 33413(a) - The Replacement Rule.
Section 33413(a) of the Health and Safety Code requires that whenever dwelling units housing
persons and families of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project subject to written agreement
with the agency, the agency shall, within four (4) years of the removal of the dwelling units, cause
to be developed an equal number of replacement dwelling units.
For affordable units removed prior to September 1, 1989, replacement units must be available at an
affordable housing cost to persons and families of low and moderate income, without regard to the
Grand Terrace Redevelopment Implementation Plan.........Page 12
1
L specific income of the person or family originally occupying the removed dwelling unit. However,
for units removed after September 1, 1989, California law requires that 75 percent of the
replacement units be affordable to the same income groups that occupied the units removed.
H&S Section 33413(b)(1) and (2) -The Inclusionary Rule
Section 33413(b)(1) of the Health and Safety Code requires that at least 30 percent of all dwelling
units actually developed by a redevelopment agency shall be available at affordable housing cost to
persons and families of low or moderate income, and not less than 50 percent of the units shall be
available at affordable housing to very low income households.
Section 33413(b)(2) requires that at least 15 percent of all dwelling units developed within a project
area by public or private entities or persons other than the redevelopment agency, but including
those developed pursuant to a written agreement with the agency, shall be available at affordable
housing cost to persons and families of low or moderate income, and not less than 40 percent of the
affordable units shall be available at affordable housing costs to very low income households. To
illustrate the inclusionary rule in terms of numbers, of every 100 dwelling units developed or
rehabilitated by entities other than the agency, 15 shall be affordable, with 9 affordable to persons
of low or moderate income, and 6 available to persons of very low income.
Terms of Affordability.
Health and Safety Code Section 33413(c) requires that replacement and inclusionary units shall
remain available at affordable housing cost to the income levels indicated for the longest feasible
time, which includes but is not limited to unlimited duration. Health and Safety Code Section
33334.3(f) states that when housing units are developed or assisted with money from the Agency's
20 percent affordable housing set-aside fund, the Agency shall require that those housing units shall
remain affordable for the longest feasible time, but for not less than 15 years for rental units or 10
years for owner-occupied units.
In addition, Health and Safety Code Section 33334.14 requires that Very Low Income and Lower
Income units developed with assistance from a homeownership residential mortgage revenue bond
program or a California Housing Finance Agency home financing program shall remain available at
affordable housing cost for at least 30 years. Finally, Government Code Section 65915 states that
Lower Income units provide pursuant to a density bonus shall remain affordable for 30 years.
It is the goal of Grand Terrace Redevelopment Agency and the City of Grand Terrace that Very
Low Income, Lower Income and Moderate Income units developed anywhere with the City
pursuant to any of these Sections shall remain affordable for the longest feasible time, up to and
including 30 years.
Grand Terrace Redevelopment Implementation Plan.........Page 13
H&S Section 33413(b)(4) -The Inclusionary Housing Plan Requirement.
Section 33413(b)(4) of the Health and Safety Code, added in 1991, requires each redevelopment
agency to adopt a plan, prior to January 1, 1993, indicating how the agency will comply with the
requirements of the inclusionary rule, and the plan shall be consistent with the Housing Element.
The plan shall be reviewed and amended at least-every five years, in conjunction with the Housing
Element cycle.
The Plan shall include estimates of the number of new or rehabilitated residential units to be
developed within the Project Area and the number of units for very low, low- and moderate-income
households which will be developed in order to meet the requirements of the inclusionary rule,
paragraph (b)(2), for units developed by entities other than the agency. The Plan shall also include
estimates of the number of agency-developed residential units which will be developed during the
next five years, and the number of units for very low, low- and moderate-income households which
will be developed during the same period of time to meet the requirements of paragraph (b)(1) for
units developed by the agency.
H&S Section 33413.5 -The Replacement Requirement for Redevelopment Proiects.,
Section 33413.5 of the Health and Safety Code requires each redevelopment agency to adopt by
- resolution a replacement housing plan indicating how the agency will comply with the requirements
of the replacement rule as provided for in Section 33413(a). The replacement plan shall include:
(1) location of replacement housing; (2) means of financing replacement housing; (3) compliance
with Article XXXHV; (4) number of affordable units planned for construction; and (5) the timetable
for meeting replacement housing objectives.
H&S Section 33334.5 -Replacement Housing Requirements for Redevelopment Plans.
Section 33334.5 of the Health and Safety Code requires that every redevelopment plan adopted or
amended to expand the project area after January 1, 1977, shall contain a provision regarding
replacement housing requirements pursuant to Sections 33413 and 33413.5 of the Health and Safety
Code. Irrespective of the January 1, 1977 implementation date expressed in Section 33334.5,
Section 33413(d) imposes the replacement and inclusionary rules on any Redevelopment Plan
adopted on or after January 1, 1976.
Grand Terrace Redevelopment Implementation Plan.........Page 14
r THE HOUSING ELENDE T
The purpose of the Housing Element is to identify Grand Terrace housing needs and mitigation
measures; identify housing goals, objectives and policies; report on implementation progress; and,
set forth a five-year housing program implementation schedule.
The housing program must include actions which conserve and improve the condition of existing
affordable housing stock, and assist in the development of adequate housing to meet the needs of
low-and moderate-income households.
The Housing Element specifies that the City will comply with the minimal legal requirements of,
and be in compliance with, California Redevelopment Law. The Housing Element has identified,
the Agency's 20 percent affordable housing set-aside fund as one of the appropriate funding
vehicles for addressing the City's affordable housing goals.
To the maximum extent possible, the Agency will provide replacement housing at the same income
level as units removed. While it is a goal of the Agency to replace as many units as possible at the
same income levels as the units removed, the Agency recognizes the State law provisions which
require a proportionate replacement of removed low- and moderate-income units by income group.
References to the California Community Redevelopment Law and the replacement and inclusionary
requirements of the California State law have been incorporated in and make a part of the City's
Housing Element.
REPLACEMENT HOUSING PER H&S 33413(A) - REDEVELOPMENT PROJECT AREA
INCLUSIONARY HOUSING REQUHUKYW24TS PER H&S 33413(b)
Determining the Inclusionary reauirement oer H&S 33413(b)(2):
New residential units developed or proposed by entities other than the aQencv through 1994:,
includes units provided bv_ develouers pursuant to an A4encv agreement- H&S 33413 (b)(2) and
H&S 33413 (b)(4)
Total Units developed - 1983 through 1994: 1,064
Determining the Inclusionary reauirement per H&S 33413 (b) (2):
Non-Agency Assisted Formula:' Units X 15%= Inclusionary Units
Very Low Inclusionary Units X .40
Low/Moderate Inclusionary Units X .60
Grand Terrace Redevelopment Implementation Plan.........Page 15
Agency Assisted Projects Units X 30%= Inclusionary Units
Very Low Units Inclusionary Units X .40
Low/Moderate Inclusionary Units X .60
Units develoued by other entities:,
516 units X 15%= 77 units for affordable housing:
Very low income units (40% of the 15%) 31
Low and moderate income units: 46
77
Agencv Assisted Develovments:
548 Units X 30%= 164 units for affordably housing
Very low income units (40% of the 30%) 66
Low and moderate 98
164
Summary of Inclusionary requirements for Proiect Area uer H&S 33413(b):
SCAG 33413
Unit Tvoes Built Requirement Requirement
Very Low 19 29 97
Low/Moderate 206 73 144
225 102 241
Additional Units Required 0 10 VL 78 VL
In a review of the Inclusionary Housing requirements, the Agency presently exceeds the
low/moderate category by approximately.62 units or 30%. The deficiency in housing is seen in the
area of very low with a need for the development of 78 units.
COMPLIANCE WITH HEALTH AND SAFETY CODE SECTION 33413.5 -
REPLACEM ENT HOUSING PLAN
1. Means of financing replacement units:
The agency will use its 20 percent housing set-aside funds in worldng with private profit and non-
profit development entitles to develop and/or preserve affordable housing units.
Grand Terrace Redevelopment Implementation Plan.........Page 16
The form of assistance will include any or several of the following:
• land acquisition and assemblage;
• site demolition, grading and preparation;
• occupant relocation;
• on-site and off-site improvements;
• deferred development fees;
• buy-ins to existing housing opportunities;
• mortgage buy-down and down payment assistance programs;
• direct subsidies;
• implementation or coordination of local, state or federal
• low income and first time homebuyer programs;
• loans, advances or other indebtedness;
• bond programs and other leveraging opportunities; and
• supplement the CDBG housing rehabilitation program.
The City will use its various resources, including its general fund, to: implement density bonus
programs; provide land resource and land use studies; investigate and implement where appropriate
inclusionary zoning requirements, linkage fees, and modified impact fees.
Where appropriate, affordable housing units will be provided by the development entity through
- inclusionary requirements, which are voluntary at this time, but contemplated as a mandatory
program for the future, and through density bonuses provided pursuant to the Government Code,
Section 65915. Affordable units provided through these two methods will not use Agency or City
funds unless the development of these units is a result of an agreement with the Agency wherein use
of Agency or City funds is specifically identified.
2. ' Exemption from Article XXXIV requirements:
Housing units developed thus far in the City of Grand Terrace, and those contemplated for the
immediate future, are exempt from the requirements of Article XXXIV. Those requirements
include Agency development, which includes development, construction or acquisition, of a low
rent housing project.
Specifically exempted from the requirements of Article XXXIV are housing units: intended for
owner-occupancy rather than rental occupancy; privately owned housing which is not exempt from
property taxation, and in which not more than 49% of the units are occupied by low income
persons; privately owned housing which is not exempt from poverty taxation by reason of any
public ownership and is not financed with direct long-term financing from a public body; and
rehabilitation, reconstruction or replacement of an existing low rent housing project.
Grand Terrace Redevelopment Implementation Plan.........Page 17
Other types of exemption from the requirement are based on judicial and legislative interpretations
of the meaning of "develop, construct or acquire. These interpretations do not apply if the
Agency's activity is limited to any of the following: financing secured by a deed of trust; land
acquisition; leasing units from a private owner if the lease does not result in a decrease of property
tax; providing assistance to an owner if the lease does not result in a decrease of vwpQ-�y tax;
providing assistance to an owner or occupant of existing housing which enables the occupant to live
in decent, safe and sanitary housing at affordable rent; performing conventional activities of a
lender; and, imposing mandated or authorized conditions accepted by the recipient of the assistance.
All of the affordable housing units assisted by the Agency, developed pursuant to an agreement
with the Agency, or contemplating an Agency agreement or Agency assistance thus far and
proposed through 1994 have either been for sale, owner-occupied units, or have been rental
projects which are privately-owned, not exempt from paying of property taxes, and in which not
more than 49 percent of the units are occupied by low income persons.
�r
Grand Terrace Redevelopment Implementation Plan.........Page 18
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Attachment 1
Grand Terrace Redevelopment Agency
Hve Year Implementation Plan
1995-99
Goals and Objectives Link to Blighting Conditions
Physical Bli ,ht Economic Conditions Infrastructure
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Attachment 2
Grand Terrace Redevelopment Agency
, ve Year Implementation Plan
1995-99
Goals and Objectives Link to Programs
Physical Bli ht Economic Conditions Infrastructure
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Attachment 3
Grand Terrace Redevelopment Agency
Five Year Implementation Plan
1995-99
Financial Projections
:...::
Pirogram 199 - 99G ]9 T 195� iI: ' _
Commercial
Housing
Capital Projects
Industrial
Note: This section is under review and will be provided at a later date
Attachment 4
Grand Terrace Redevelopment Agency
Me Year Implementation Plan
1995-99
Housing Development Goals
Cate ory:<.....
�. 1995 ... �. 1996 .:: �.1997 .:..'..... . �.1998 . :<... .:....... .� .:I999 :.. ... .... Total
Very Low 15 15 5 15 � 25
Low/Moderate 8 8 8 8 18 40
Total 13 13 13 13 13 I:.65
4i
M E M O R A N D U M
DATE: December 15, 1994
TO:. City Manager/City Council ;
FROM: John W. Donlevy, Jr., Assistant City Manage/
RE: Redevelopment Implementation Plan: Attachme t 3 Revision
Attached for your information is a revised Attachment 3 for the Five Year
Implementation Plan. Specifically, it includes a summary of estimated program
expenditures by the Agency.
If you have any questions, please do not hesitate to contact me at (909) 824-6621.
l
Attachment 3
Grand Terrace Redevelopment Agency
Five Year Implementation Plan
1995-99
Program Expenditures
1?�cotrn...................................... . : .......................... ....................................................... .............................................................................: :::.: ....................:::. .:.:.:::::::..:.:::.:.:::::
:::g:.::::::::::::::.::.::::::.:.::::::::::::::.::::::::::.:::...................................................................................::.::.:::.:::............:::::::::::::::::.::::::::::..:::::::::::::::.......::.....:.
xpendito
..... ..........
Commercial NA NA NA NA NA
Housing 7001000 800,000 850,000 875,000 900,000
Capital Projects 260,000 275,000 295,000 315,000 335,000
Planning 20,000 25,000 30,000 35,000 40,000