MEETING DATE:
SEPTEMBER 25, 2018
SUBJECT:
Title
RESOLUTION NO. SHA 2018-034 - REQUEST FOR FIVE YEAR EXTENSION FOR RETENTION OF CERTAIN PROPERTIES BY THE CITY IN ITS CAPACITY AS THE SUCCESSOR HOUSING AGENCY (SHA)
Body
Recommendation
Recommendation
ADOPT a resolution approving an extension of five years for initiation of development on properties currently retained by the City in its capacity as the Successor Housing Agency (SHA) pursuant to Health & Safety Code section 33334.16.
Body
Board or Commission Action
N/A
Relevant Council Strategic Theme
Planning for the future
Relevant Department Goal
Facilitate Affordable Housing Production
Executive Summary
California Community Redevelopment Law (“CRL”), and specifically Health & Safety Code section 33334.16, requires that for real property acquired using moneys from the Low and Moderate Income Housing Fund the agency shall, within five years from the date it first acquires such property interest for the development of housing affordable to persons and families of low and moderate income, initiate activities consistent with the development of the property for that purpose. If activities have not been initiated within this period, the legislative body may, by resolution, extend the period during which the agency may retain the property for one additional period not to exceed five years.
Discussion
The CRL requires that the agency must initiate activities consistent with the development of the property within five years of acquiring the property. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the legislative body may by resolution, extend the period during which the agency may retain the property for one additional period not to exceed five years.
The following properties presently vested in the name of the City as the SHA or the former Redevelopment Agency (RDA) are within this category:
APN Vesting Description
219-270-67 RDA Vacant remnant parcel from the Promenade at Creekside project
220-130-86 SHA Vacant unfinished commercial component of Westlake Village project
221-051-38 RDA Vacant parcel in the Creek District along Via Vera Cruz
The properties identified above have not yet been the subject of agreements related to development and disposition. For this reason, today’s requested action is to extend the retention period for these properties for up to five years. This will allow the City further opportunity to enter into orderly and deliberate agreements for the development and disposition of the properties for the intended purpose of development of housing affordable to persons and families of low and moderate income.
The SHA assumed its duties on January 10, 2012. In retrospect, the initial five year deadline to initiate activities consistent with the development of the properties appears to have uniformly commenced on this date. However, amid the post-RDA confusion about remaining reporting requirements, this deadline was not clear at the time nor were all of the properties listed owned by the SHA or the RDA. For example, in the case of the vacant remnant parcel from the Promenade at Creekside project (APN 219-270-67), the rescission was not completed until October 1, 2013. In the case of the vacant unfinished commercial component of the Westlake Village project (APN 220-130-86), the Grant Deed transferring this property to the SHA was not recorded until October 18, 2013. In the case of the vacant parcel in the Creek District along Via Vera Cruz (APN 221-051-38), the City did not receive final letter clarification about the Housing Assets Transfer from the Department of Finance until August 29, 2013. In summary, the commencement of the initial five year deadline to initiate activities consistent with the development of each property is vague. In contrast, the commencement of the second five year period requested from the City Council will establish a clear deadline for any future extension associated with all three of the properties.
Environmental Review
N/A
Fiscal Impact
No fiscal impact other than continued minimal ownership costs. In the event that the development of the property for the intended purpose has not begun by the extended period, the property shall be sold and the moneys from the sale, less reimbursement to the agency for the cost the sale, shall be deposited in the agency’s Successor Agency Housing Fund.
Attachment(s)
SHA Resolution No. 2018-XXX
Map - Affordable Housing Creekside Drive
Map - Affordable Housing Westlake Village
Map - Affordable Housing Via Vera Cruz
Prepared by: Harry Williams, Housing Programs Manager
Reviewed by: Beth Herzog, Administrative Services Manager, Development Services Department
Reviewed by: Dahvia Lynch, Development Services Director
Approved by: Jack Griffin, City Manager