california redevelopment association redevelopment set-aside presented by: andrew lazzaretto...
TRANSCRIPT
![Page 1: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/1.jpg)
California Redevelopment Association
Redevelopment Set-Aside
Presented By: Andrew Lazzaretto
September 16, 1999
![Page 2: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/2.jpg)
Origin of Housing Set-Aside
• Tax Increment Revenue– Based on Value in Project Area at Time of
Adoption– Increase in Property Taxes Split
• Taxing Entities
• Redevelopment Agency - General
• Redevelopment Agency - Housing Set-Aside
![Page 3: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/3.jpg)
Tax Increment Distribution
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000B
ase 4 8 12 16 20 24 28 32 36 40 44
Base Housing Agency - Gen'l Taxing Agencies
![Page 4: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/4.jpg)
Tax Increment Distribution
$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000
Increment
HousingAgencyTaxing Entities
![Page 5: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/5.jpg)
Use of Housing Set-Aside Funds
• “To Improve, Increase, & Preserve the Supply of Affordable Housing In the Community”
• New Construction
• Acquisition
• Improvements– Off Site & On-Site
![Page 6: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/6.jpg)
Use of Housing Set-Aside Funds
• Rehabilitation
• Provide Subsidies– Low & Moderate Income Families– Private Entities to Maintain Affordability
• Loans, Bonds, & Advances
• Develop Plans
• Maintain Supply of Mobile Home Parks
![Page 7: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/7.jpg)
Use of Housing Set-Aside Funds
• Preserve Affordable Housing Threatened w/Conversion to Market Rate Housing
![Page 8: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/8.jpg)
Limitations on Housing Funds
• When any affordable housing is destroyed or removed from the market, the Agency must replace an equal number of units w/in 4 years– 75% of housing units must be in same income
levels
![Page 9: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/9.jpg)
Limitations on Housing Funds
• At least 30% of all new units developed by the Agency must be affordable– 50 % must be provided to very low income
households
• At least 15% of all new (or substantially rehabilitated) units developed by others must be affordable– 40% must be very low income units– Within Project Area Only!
![Page 10: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/10.jpg)
Limitations on Housing Funds
Units Developedby Agency
Units Developedby Others
Total 100 100
Total Affordable 30 15
Low/ModerateIncome 15 9
Very Low Income 15 6
![Page 11: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/11.jpg)
Limitations on Housing Funds
• To satisfy the provisions of the CRA, the Agency may aggregate the replacement housing units in one or more projects, provided that doing so will not cause or exacerbate racial, ethnic, or economic segregation
![Page 12: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/12.jpg)
Limitations on Housing Funds
• The CRA requires affordability to be maintained for the “longest time feasible”– Not less than 30 years– The Code permits the resale of units to eligible
families, including equity sharing• The Agency’s investment from the Low and
Moderate Income Housing Fund must be protected
![Page 13: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/13.jpg)
Limitations on Housing Funds
• The Agency can replace destroyed or removed units with a fewer number of replacement units, provided the total number of bedrooms equals or exceeds the number of bedrooms in the destroyed or removed units
![Page 14: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/14.jpg)
Limitations on Housing Funds
• The Agency must develop a Replacement Housing Plan 30 days prior to acquiring real estate, or entering into a DDA or OPA
![Page 15: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/15.jpg)
Practical Uses for FundsFour Case Studies
![Page 16: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/16.jpg)
Norwalk Senior Housing
• Acquisition of Land• Relocation of Tenants• Environmental Review• Demolished Existing Improvements• Undergrounded Utilities• Abandoned Rights-of-Way• Attracted Developer• Contributed Land in Return for Community Center
Development
![Page 17: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/17.jpg)
La Mirada Town Homes
• Off-site Improvements• Agreed to Acquire Developed Units
– Negotiated Price– Below Public Offering Price– Dispersed Throughout Larger Project
• Agency Sold Units to Eligible Families– Absorbed Affordability Gap
• Issues w/Homeowner’s Association
![Page 18: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/18.jpg)
Avalon Metropole Project
• Proposed• Land Acquisition• Tenant Relocation• City Contributed City Hall Land• Mixed Use Development• Seeking Developer
– City Hall, Affordable Housing, Market Rate Housing, Community Center
![Page 19: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/19.jpg)
Santa Fe Springs Approach• Home Repair Crew
– Make Improvements for Eligible Families• Home Acquisition & Renovation Program
– Purchase Dilapidated Homes– Upgrade to Current Standards– Sell to Qualifying Families
• Multi-Family Acquisition– Acquired RTC Apartment Building– Replaced w/New Single-Family Neighborhood
![Page 20: California Redevelopment Association Redevelopment Set-Aside Presented By: Andrew Lazzaretto September 16, 1999](https://reader035.vdocuments.us/reader035/viewer/2022072116/56649e585503460f94b52022/html5/thumbnails/20.jpg)
Conclusions
• CRA Law Has Many Mandates, but Provides Flexibility
• Most Effective Use is in Conjunction w/Other Private & Public Resources