RES-ORA-0228 Redevelopment Agency Approving Replacement Housing PlanRESOLUTION NO. ORA-
0228 A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY APPROVING THE REPLACEMENT
HOUSING PLAN IN CONNECTION WITH THAT
CERTAIN PROPERTY COMMONLY KNOWN AS 4649
EAST WALNUT, ORANGE,
CALIFORNIA WHEREAS, California Health and Safety Code Section 33334.2 and
the Redevl~lopment Plan for the Tustin Street Redevelopment Project Area (the "Project Area")
as adopted and thereafter amended by the City Council of the City of Orange authorize and
direct the Orange Redevelopment Agency (the "Agency") to expend not less than twenty
percent 20%) of all taxes which are allocated to the Agency pursuant to California Health and
Safety Code Section 33670 for the purposes of increasing, improving and preserving the community'
s supply of low- and moderate-income housing available at affordable housing cost
to persons and families of low or moderate income and very low
income; and WHEREAS, pursuant to California Health and Safety Code Section 33334.
2 the Agency has established Low- and Moderate-Income Housing Funds (the "
Housing Funds") in connection with the
Project Area; and WHEREAS, pursuant to California Health and Safety Code Section
33334.2 in carrying out its low- and moderate-income housing activities, the
Agency is authorized to increase the community's supply of low- and
moderate-income housing through
development of affordable housing; and WHEREAS, the Agency is contemplating the acquisition
of certain real property more commonly known as 4649 East
Walnut, Orange (the "Property"); and WHEREAS, a building is situated on the Property which is
vacant, is not offered for rent, has been vacant for a substantial period of time, and which
was occupied as a residence by a household whose income is not
known
to the Agency; and WHEREAS, California Health and Safety Code Section 33314.5
provides, in part: Not less than 30 days prior to the execution of an agreement for acquisition of
real property, or the execution of an agreement for the disposition and dt~velopment of property,
or the execution of an owner participation agreement, which agreement would lead to
the destruction or removal of dwelling units from the low- and moderate-income housing
market, the Agency shall adopt by n~solution
a replacement housing plan; and WHEREAS, it is the intention of the Agency that the Property be
used as a resource to directly or indirectly contribute toward the community's
supply of housing available at affordable housing cost to persons and families of low, very
WHEREAS, the proposed Replacement Housing Plan (the "Housing Plan"), as
submitted herewith, has been available for public inspection for not less than 10 days prior to
the considl~ration of this Resolution, and notice that this matter would be considered at the
meeting of the Agency on August 27, 1991 was published on August 15, 1991 in the Orange
City News.
NOW, THEREFORE, THE ORANGE REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE AS FOLLOWS:
1. Based upon the staff report submitted in connection with this matter, the Agency
finds and determines that the Property does not contain a dwelling unit the replacement of
which is required pursuant to Section 33413.5 of the California Health and Safety Code.
2. The Housing Plan is approved. The Executive Director and the Agency staff are
authorized and directed to carry out the provisions of the Housing Plan.
ADOPTED this 27th day of AUQust 1991
ATTEST:
hJ1~Jd~range evel m Agency
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the 27th day of
AugUS.t , 1991 by the following vote:
AYES: DIRECTORS: STEINER, BARRERA, CHAIRMAN BEYER i
I
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABST AIN: DIRECTORS: COONTZ,
RESO NO. ORA-
0228 1m: b:
resomnc
REPLACEMENT HOUSING PLAN
FOR 4649 EAST WALNUT AVENUE
INTRODUCTION
The
Orange Redevelopment Agency is contemplating the purchase
of that certain property commonly known as 4649 East Walnut
Avenue, Orange, California (the "Site"), as described in greater
detail in Exhibit "A" hereto. There is, as of the date notice
is first published of consideration of the acquisition of
the Site, a building on the Site which at one time was last used
as a single-family residence over two and one-half (2-
1/2)years ago. Based upon information provided by
James Edward Mounce and Sandra Lynn Mounce, the current
owners ("Owners")the building has been vacant for several years and has
not been offered
for rent.Based upon those factors, the staff is of the
believe that the building is not part of the low- and
moderate income housing market in that the building has not been
occupied and has been off the market for over two and one-
half (2-1/2)years, the Site is not offered for rent
and the purchase price sought by the Owners for the Site is
not consistent with the use of the existing building on the
Site for
low- or moderate-income housing.Nevertheless, should Section 33413.
5 of the Health and Safety Code ("Section 33413.5") be
deemed to apply to the acquisition of the Site and the removal
by the Agency of the building situated therein (
see attached copy of Section 33413.5), and further to set forth its
intentions as to the use of the Site, the Agency
staff submits this document for consideration entitled as "
Replacement Housing Plan for the Mounce Property". Should Section
33413.5 be applicable, this Replacement Housing
Plan constitutes the Orange Redevelopment Agency's fulfillment of the
requirements of Article 9, Section 33413. That section requires the
replacement of any low or moderate income dwelling unit removed
as part of a project within a Redevelopment Project Area
adopted or amended to add land, on or after January I,
1976. Section 33413.5 requires the Agency to adopt, by resolution,
a plan for
the replacement of such housing.This Replacement Housing Plan
concerns the Tustin Street Project Area. The Redevelopment Plan
for the Tustin Street Project Area was approved and adopted on
December 6, 1983 and amended on June 21, 1988. The
Redevelopment Plan includes the requirements for replacement housing
provided
in Section 33413.attachment
This Replacement Housing Plan will cover housing removed
and anticipated to be removed due to activity of the Agency in
acquiring property. The Agency is currently negotiating a
Purch.ase Agreement with the Owners. It is anticipated that the
Agency will have agreements executed by September of 1991.
I
If the Agency proceeds to acquire the Site, it will purchase
the building which was at one time used as a dwelling unit
but is now vacant; the Agency will clear all improvements from
the Site. Additionally, a caretaker who has resided at the
Site in a camper on a temporary basis will not remain at the
Site.If
the building is removed, a good faith effort will be made
to produce replacement housing within the required four-4)
year period, financing permitting.LOCATION
OF HOUSING OPPORTUNITIES In
addition to describing the location of the dwelling unit which
will be removed or destroyed as a result of the development
activities proposed for this project, this Replacement
Housing Plan also describes the general location and
intentions for the development and construction of replacement
housing and the timetable and means of financing such
development and construction.The
Orange Redevelopment Agency proposes the following plans
for replacement of the housing removed by redevelopment activities.
The
Agency intends to negotiate with developers or market the
Site for the development of affordable housing units.Depending
upon density, cost, and other factors, it is possible that
affordable housing units may be developed with or without financial
participation by the Agency. For the Agency to participate
financially in such development, there must be a demonstration
that such participation is justified.In
addition, the Agency has active programs for first-time
homebuyers and mobilehome residents. The Agency provides
financial assistance for the rehabilitation of rental and
owner-occupied affordable housing. In addition, the Agency
has caused the construction on an ongoing basis of
affordable senior apartments; these will continue to be
available.FINANCING OF DEVELOPMENT AND CONSTRUCTION OF REPLACEMENT
HOUSING Obtaining financing for replacement housing units will
be an important component of this Replacement Housing
Plan.Financing for replacement units will rely upon private
market financing and, if justified, some public
participation.08/07/
91 6405u/2359/000 2 -
Funding assistance for financing the replacement units may
come from two (2) basic sources:
1. Private capital; and/or
1-
2. Tax increment funds or proceeds of bonds or notes
secured by tax increment funds.
The Agency anticipates that all replacement units, whether
rental or owned units, will be privately owned and that
property taxes will be payable with respect to such units. At
this time, public construction is not contemplated. Each
project will be reviewed for conformity with the provisions of
Section 37001 of the California Health and Safety Code.
In addition to Health and Safety Code Section 33334.3 which
provides for the assurance of affordability for certain
periods, density bonuses may be considered with appropriate
safeguards to assure the continued availability of dwelling
units to the low or moderate income housing market.
In addition, the Agency will actively pursue and encourage
development of low or moderate income housing projects by
providing potential developers with specific information on
thoSE! sites best suited for housing. The Agency will consider
providing below-market-rate financing for
eligible projects through the sale of tax-exempt
mortgage revenue bonds.The Redevelopment Agency may also need
to commit increment funds to subsidize replacement housing to
the extent provided by Section 33334.2 of the California Health
and
Safety Code.08/
07/91 6405u/2359/000 3 -
EXHIBIT "A"
l'
That portion of the West Half of Lot 13 in Block B of the
I~and of Oge and Bond, County of Orange, State of California
as shown on a Map recorded in Book 3, pages 430 and 431 of
1iscellaneous Records of Los Angeles County, California,
described as follows:
Beginning
at a point in the South line of said Lot 13,distant
thereon South 890 44' 11", East 497.21 feet from the
Southwest corner thereof, and running thence North 00 02'
36" West 263.00 feet to a point in the North line of the
South 4.00 acres of said West half; thence South 890 46'
29" East along said North line, 165.67 feet to a point in
the East line of said West half; thence South 00 03' 28"East
along said East line 263.1 feet to a point in the South
line of said Lot 13; thence North 890 44' II" West along
said South line, 165.73 feet to the point of beginning.
I '
08/
07/
91 6405u/2359/
000 EXHIBIT "A"attachment Reso ORA-0228