HomeMy WebLinkAboutR22-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
Joint Public Hearing Relocation and
Replacement Housing Plan - 19th Street and
Sunrise Lane Project (The "Project")
DATE:
January 21,2011
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Synopsis of Previous Commission/CounciVCommittee Action(s):
On December 9,2010, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend
that the Mayor and Common Council and the Community Development Commission consider this action for approval.
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Recommended Motion(s):
Open/Close Joint Public Hearing
(Mayor and Common Council)
Resolution of the Mayor and Common Council of the City of San Bernardino consenting to the approval and adoption
of the Relocation Plan and Replacement Housing Plan for displaced residents of the 19th Street and Sunrise Lane
Project
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and adopting the
Relocation Plan and Replacement Housing Plan for displaced residents of the 19th Street and Sunrise Lane Project
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Contact Person(s):
Project Area(s):
Carey K. Jenkins
IVDA Redevelopment Project Area
Phone:
Ward(s):
(909) 663-1044
7th Ward
Supporting Data Attached:
0' Staff Report 0' Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) 0' Other
FUNDING REQUIREMENTS:
Amount: $ 900,000
Source: Low and Moderate Income Housing Fund
Budget Authority:
EDA Budget FY 2009-2010
Signature:
Emil A.
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Commission/Council Notes:
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P:\Agendas\Comm Dev Commission\CDC 2011 \02-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise SR.doc CO MMISSI ON MEETING A G END A
Meeting Date: 02/07/2011
Agenda Item Number: tZ2
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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RELOCATION AND REPLACEMENT HOUSING PLAN _19TH STREET AND SUNRISE
LANE PROJECT (THE "PROJECT")
BACKGROUND:
On September 21, 2009, the Community Development Commission of the City of San Bernardino
("Commission") authorized the Redevelopment Agency of the City of San Bernardino ("Agency")
Staff through its non-profit affiliate Affordable Housing Solutions of San Bernardino ("AHS") to
initiate the acquisition and demolition of the 19th Street and Sunrise Lane Project (the "Project") which
includes the acquisition of a series of four-plex apartment buildings and vacant lots. The Project is a
priority for the Agency as a result of the blighting effects the current apartment complexes are having
on the immediate area. Given the high number of distressed properties and the overall depressed state
of the residential housing market, the Agency has the opportunity to acquire many of these properties.
For those properties acquired by AHS on behalf of the Agency, demolition of the four-plexes will take
place and a combination of subsequent uses for the land will be considered, including a senior housing
project and in-fill single family residential homes, when the market for this housing option returns.
On November 16, 2009, the Commission authorized the Agency to execute a Professional Services
Agreement by and between the Agency and Shober Consulting ("Shober"), for the preparation of a
Relocation Plan and Replacement Housing Plan (collectively referred to as the "Plan") and Relocation
Services associated with the Project. Since the Commission's approval, Shober has worked diligently
interviewing the tenants and assessing their relocation needs in order to prepare the draft Plan.
As the Project site will be used for future redevelopment, existing tenants must be relocated and many
of the apartment complexes demolished. Both Federal and State Relocation Law ("Relocation Law")
requires that prior to displacement of any resident as a result of redevelopment activities that a
Relocation Plan be prepared in order to assess the relocation and housing needs of those displaced.
Further, the Relocation Law states that the Agency will provide relocation assistance and certain
benefits to any displaced resident. Relocation benefits will be provided in accordance with the
provisions of the California Relocation Assistance Law, and the federal Uniform Relocation Act,
including any potential extended benefit beyond the standard 42 months as determined by Section
104(d), should this Section apply. Benefits will be paid to eligible displaced persons upon submission
of required claim forms and documentation in accordance with the City of San Bernardino's ("City")
guidelines and procedures. Specific eligibility requirements and benefit plans will be detailed on an
individual basis with all displacees. In the course of personal interviews and follow-up visits, each
displacee will be counseled as to available options and the consequences of any choice with respect to
financial assistance.
CURRENT ISSUE:
On September 28,2010, Shober completed the attached draft Plan for review and comment. The Plan
has been prepared and relocation assistance will be provided in accordance with the standards and
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P:\AgendasIComm Dev CommissionlCDC 2011102-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise SR.doc COMMISSION MEETING AGENDA
Meeting Date: 02/07/2011
Agenda Item Number: U1-
Economic Development Agency Staff Report
Relocation and Replacement Housing Plan
19th Street and Sunrise Lane Project
Page 2
provisions of the State of California Relocation Law, Government Code Section 7260, et. seq. and
Title 25, Chapter 6, Relocation Assistance and Real Property Acquisition, as amended January 1, 1998.
Pursuant to Section 6038 of Chapter 6, a 30-day public review period is required prior to consideration
of the Plan by the Commission.
The existing tenants were informed that the draft Plan was available for their review at the offices of
the Agency in addition to other public facilities citywide. The total bedrooms to be removed is
estimated below 100, but could be as high as 140. For those properties acquired by AHS on behalf of
the Agency, demolition of the four-plexes will take place and a combination of subsequent uses for the
land will be considered, including a senior housing project and single-family homes once the market
returns for this housing product. Any comments received on the Plan will be included as an addendum
prior to submission to the Mayor and Common Council of the City of San Bernardino (Council) for
approval.
The Plan will also be used to cover the relocation requirements of Mary Erickson Community Housing
("MECH") and their redevelopment plans in the same target area. Their redevelopment requirement
calls for the acquisition and rehabilitation of up to 25 four-plex properties which was approved by the
Commission on July 20,2009, in support ofthe overall Project.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
The estimated total relocation costs are $900,000 and will be funded from the Low and Moderate
Income Housing Fund.
RECOMMENDATION:
That the Mayor and Common Council and Community Development Commission adopt the attached
Resolutions.
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P:lAgendas\Comm Dev Commission\CDC 2011\02-07-11 ReIoeation and Replacement Housing Plans - 19th & Sunrise SR. doe COMMISSION MEETING AGENDA
Meeting Date: 02/07/2011
Agenda Item Number: (L~'J,.,
1
2
3
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5
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO CONSENTING TO THE APPROVAL AND
ADOPTION OF THE RELOCATION PLAN AND REPLACEMENT
HOUSING PLAN FOR DISPLACED RESIDENTS OF THE 19TH STREET
AND SUNRISE LANE PROJECT
6 WHEREAS, the Agency has caused to be published a notice of joint public hearing in the
7 San Bernardino County Sun Newspaper on December 24, 2010, regarding the approval of a
8 relocation plan and replacement housing plan (the "Plan") in consideration of the 19th Street and
9 Sunrise Lane Housing Rehabilitation Project (the "Project"); and
10 WHEREAS, the Project is a component of the City's foreclosure mitigation efforts
11 associated with the Federal Neighborhood Stabilization Program ("NSP" or "Program"); and
12 WHEREAS, on January 24, 2011, the Mayor and Common Council of the City of San
13 Bernardino ("Council") conducted a full and fair joint public hearing with the Community
14 Development Commission of the City of San Bernardino ("Commission"), and considered the
15 written Agency Staff Report and all testimony, documents, plans, reports and communications
16 relating to the Plan for the relocation of existing eligible tenants and the replacement of certain
17 residential structures demolished through the implementation of the Project; and
18 WHEREAS, the minutes of the City Clerk for the January 24,2011, joint public hearing of
19 the Commission and the Council shall include a record of all testimony, documents, plans, reports
20 and communications submitted to the Commission and the Council at the joint public hearing by
21 interested persons relating to the Plan.
22 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
23 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
24 FOLLOWS:
25
Section 1.
The Recitals of this Resolution are true and correct.
26 Section 2. On January 24, 2011, the Mayor and Common Council of the City of tan
27 Bernardino ("Council") conducted a full and fair joint public hearing with the Community
28 Development Commission of the City of San Bernardino ("Commission"), and considered the
1
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1 written Agency Staff Report, and the Council hereby consents to the approval and adoption of the
2 Plan by the Commission. The minutes of the City Clerk for the January 24, 2011, joint public
3 hearing of the Council and the Commission shall include a record of all communication and
4 testimony submitted to the City Council and the Commission at the joint public hearing by
5 interested persons relating to the Plan.
6
Section 3.
The Council hereby finds and determines that the environmental review of the
7 Plan is a "categorically exempt project" under the California Environmental Quality Act (CEQA)
8 pursuant to Section 15326, Acquisition of Housing for Housing Assistance Programs.
9
Section 4.
This Resolution shall take effect upon its adoption and execution in the
10 manner as required by the City Charter.
11 III
12 III
13 III
14 III
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18 III
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20 III
21 III
22 III
23 III
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25 III
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27 III
28 III
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO CONSENTING TO THE APPROVAL AND
ADOPTION OF THE RELOCATION PLAN AND REPLACEMENT
HOUSING PLAN FOR DISPLACED RESIDENTS OF THE 19TH STREET
AND SUNRISE LANE PROJECT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a meeting
day of , 2011, by the following vote to wit:
7 thereof, held on the
8
9 Commission Members:
10 MARQUEZ
DES JARDINS
11
BRINKER
12
SHORETT
13
KELLEY
14
JOHNSON
15
MC CAMMACK
16
17
18
Ayes
Nays
Abstain
Absent
Secretary
19 The foregoing Resolution is hereby approved this
20
21
22
23
24
25
day of
, 2011.
Patrick J. Morris
Mayor of the City of San Bernardino
Approved as to Form:
26
27
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE
RELOCATION PLAN AND REPLACEMENT HOUSING PLAN FOR
DISPLACED RESIDENTS OF THE 19TH STREET AND SUNRISE LANE
PROJECT
6 WHEREAS, on April 20, 2009, the Mayor and Common Council of the City of San
7 Bernardino ("Council") approved the funding and grant agreement for the receipt of $8,408,558
8 from the u.S. Department of Housing and Urban Development (HUD) pursuant to the
9 Neighborhood Stabilization Program ("NSP" or "Program") as authorized and appropriated under
10 the Housing and Economic Recovery Act of2009; and
11 WHEREAS, the funding allocation for NSP activities includes $2.92 million for the
12 acquisition, rehabilitation and resale of single-family homes to income-qualified home buyers,
13 $3.07 million for the acquisition, rehabilitation and rental of residential properties to households
14 with incomes at or below 50% of the area median income ("AMI"), $1.65 million for the
15 acquisition and demolition of blighted residential structures, and $768,508 for Program
16 administration; and
17 WHEREAS, on July 20, 2009, the Community Development Commission of the City of
18 San Bernardino ("Commission") approved the 2009 Neighborhood Stabilization Program
19 Developer Master Agreement ("Master Agreement") by and between the Agency and Mary
20 Erickson Community Housing, Inc. ("MECH"), through which MECH was charged to implement
21 the NSP activity associated with acquisition, rehabilitation and rental of residential properties to
22 households with income at or below 50% ofthe AMI; and
23 WHEREAS, on September 21, 2009, the Commission approved the 2009 NSP Sub-
24 Recipient Agreement ("Sub-Recipient Agreement") through which the Sub-Recipient, Affordable
25 Housing Solutions of San Bernardino, Inc., a California non-profit corporation ("AHS"), was
26 charged with acquiring properties in furtherance of the NSP with the intent of future rehabilitation
27 and resale of single-family properties and the demolition of other residential properties as
28 determined to be appropriate in furtherance of the Agency's foreclosure mitigation activities; and
1
P:\AgendasIResolutionslResolutions\2011\02-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise CDC Reso.docx
1 WHEREAS on November 16, 2009, the Commission approved an agreement by and
2 between the Agency and Shober Consulting, Inc. ("Shober"), to conduct relocation and interim
3 property management services on behalf of AHS as well as to prepare and present a relocation plan
4 and replacement housing plan ("Plan") on behalf of AHS and MECH for submission to the
5 Commission in furtherance of the 19th Street and Sunrise Lane Project ("Project"); and
6 WHEREAS, both Federal NSP Funds and Redevelopment Agency Low- and Moderate-
7 Income Housing Set Aside Funds are being used by AHS and MECH within their respective
8 components of the Project; and
9 WHEREAS, on September 28,2010, Shober completed the draft Plan in accordance with:
10 (1) the Uniform Relocation Assistance and Real Property Acquisition Guidelines for Federal and
11 Federally Assisted Programs under 49 CFR Part 24; and (2) Section 6038 of the California Code of
12 Regulations, Title 25, Division 1, Chapter 6, California Relocation Assistance and Real Property
13 Acquisition Guidelines; and
14 WHEREAS, the draft Plan submitted by Shober calls for a relocation budget of$1,100,000,
15 however, in light of the higher than expected vacancy rate within the Project, Agency Staff
16 believes a $900,000 relocation budget is appropriate; and
17 WHEREAS, the Project and the related relocation associated with it is exempt from the
18 California Environmental Quality Act (CEQA) pursuant to Section 15326, Acquisition of Housing
19 for Housing Assistance Programs; and
20 WHEREAS, the Agency has not received any public comments during the review period.
21 NOW, THERFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
22 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
23 FOLLOWS:
24
25
Section 1.
Section 2.
The Commission finds that the Recitals set out above are true and correct.
The Commission hereby approves and adopts the Plan attached hereto and
26 incorporated herein by reference as Exhibit "A" and authorizes the Interim Executive Director of
27 the Agency to proceed with relocation of the residents residing within the Project pursuant to the
28 Relocation Plan which also calls for the expenditure of Low- and Moderate-Income Housing Funds
2
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1 in an amount up to $900,000.
The Resolution shall take effect from and after its date of adoption by this
2 Section 3.
3 Commission.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE
RELOCATION PLAN AND REPLACEMENT HOUSING PLAN FOR
DISPLACED RESIDENTS OF THE 19TH STREET AND SUNRISE LANE
PROJECT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meeting
6
thereof, held on the day of
7
Commission Members: Ayes
8
MARQUEZ
9 DES JARDINS
10 BRINKER
11 SHORETT
12 KELLEY
13 JOHNSON
14 MC CAMMACK
15
16
, 2011, by the following vote to wit:
Nays
Abstain
Absent
Secretary
17
18 The foregoing Resolution is hereby approved this
day of
, 2011.
19
20
21
22
23
24 Approved as to Form:
2S By: ~^11!
26 Agency sY I .........
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
27
28
4
P:\AgendasIResolutionslResolutions\2011\02-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise COC Reso.docx
EXHIBIT A
N
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m SHOBER
CONSULTING INC.
s
520 S. Sepulveda Blvd., Suitc 204, ] .os Angeles, C\ 90049
Phonc: (310) 476-5433. Fax: (310) 476-5583
RELOCATION INFORMATIONAL BROCHURE
FOR FAMILIES AND INDIVIDUALS
AFFECTED BY THE
SAN BERNARDINO REDEVELOPMENT AGENCY
19TH STREET AND SUNRISE LANE PROJECT AREA
FUNDED BY THE
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
IN PARTNERSHIP WITH
MARy ERICKSON COMMUNITY HOUSING
2
INFORMATIONAL STATEMENT FOR FAMILIES AND INDIVIDUALS
Please do not move prematurely.
This is not a notice to vacate your dwelling!!
I. GENERAL INFORlvL\ TION
II. ASSISTANCE IN Loc-\ TING A REPL-\CEMENT DWELLING
III. MOVING BENEFITS
IV. REPLKEl\IENT HOUSING PAYMENT - TENANTS .-\ND CERTAIN OTHERS
V. QUALIFIC-\TION FORAND FILING OF RELOCATION CL-\IMS
VI. L-\ST RESORT HOUSING ASSISTANCE
VII. RENT.-\L AGREEMENT
VIII. ApPEAL PROCEDURES - GRIEVANCE
IX. TAX STATUS OF RELOCATION BENEFITS
X. ADDITIONAL INFOIUvL-\TION AND ASSISTANCE A V.-\IL-\BLE
I. GENERAL INFORMATION
The building in which you now live has recently been purchased by the City of San Bernardino
(SBRDA) or Mary Erickson Community Housing (MECH). This project is funded by the Federal
Neighborhood Stabilization Program (NSP). It will be necessary for you to move from your dwelling.
You will be notified in a timely manner as to the date by which you must move.
Please read this information carefully as it will be helpful to you in determining your eligibility and the
amount of your relocation benefits under the federal law. \XTe suggest you save this informational statement
for reference.
SBRDA and MECH have retained the services of Shober Consulting, Ine. ("Shober"), a qualified
professional relocation firm, to assist you. Shober Consulting can be reached at their two offices at:
Shober Consulting, Inc.
520 S. Sepulveda Blvd., Suite 204
Los Angeles, CA 90049
Phone: 310-476-5433
Fax: 310-476-5583
-OR-
Shober Consulting, Inc.
444 West Ocean Blvd., Suite 800
Long Beach, CA 90802
Phone: 562-624-2815
Fax: 562-624-2816
Spanish speaking representatives are available. Si necesita esta informacion en Espanol, por favor llame
a su representante.
3
All information obtained by your relocation consultant
will be kept confidential.
Please do not move prematurely. This is not a notice to vacate your dwelling. However, if you desire to
move sooner than required, you must contact your representative with Shober Consulting, Ine. so you will
not jeopardize any benefits. This is a general information brochure only, and is not intended to give a
detailed description of either the law or regulations pertaining to the Agency's relocation assistance
program.
II. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING
SBRDA & MECH, through their representatives, will assist you in locating a comparable
replacement dwelling by providing referrals to appropriate and available housing units. Y ouare
encouraged to actively seek such housing yourself.
When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an
inspection and advise you as to whether the dwelling unit meets decent, safe, and sanitary housing
requirements. A decent, safe, and sanitary housing unit provides adequate space for its occupants, proper
weatherproofing, and sound heating, electrical, and plumbing systems. Your new dwelling must pass
inspection before relocation assistance payments can be authorized.
III. MOVING BENEFITS
If you must move as a result of displacement by SBRDA or MECH, you will receive a payment to assist
in moving your personal property. There are two types of moving payments. You have the option of
selecting either one of the following types of moving payments:
A. FIXED MOVING PAYMENT
A fixed moving payment is based upon the number of rooms you occupy and whether or not you own
your furniture. The payment is based upon a schedule approved by the Agency and ranges, for
example, from $400.00 for one furnished room to $2,150.00 for eight rooms in an unfurnished
dwelling (for details see the table below). Your relocation representative will inform you of the amount
you are eligible to receive if you choose this type of payment.
4
FIXED MOVING SCHEDULE (CALIFORNIA)
Occupant owns furniture Occupant does not own furniture
1 room $625.00 1 room $400.00
2 rooms $800.00 Each additional room $65.00
3 rooms $1,000.00
4 rooms $1,175.00
5 rooms $1,425.00
6 rooms $1,650.00
7 rooms $1,900.00
8 rooms $2,150.00
Each additional room $225.00
If you select a fixed payment, you will be responsible for arranging for your own move and the
Agency will assume no liability for any loss or damage of your personal property.
B. ACTUAL MOVING EXPENSE (PROFESSIONAL MOVE)
If you wish to engage the services of a licensed commercial mover and have the Agency pay the bill, you
may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation
representative will inform you of the number of competitive moving bids (if any) which may be required
and assist you in developing a scope of services for the Agency's approval.
IV. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS
You may be eligible for a payment to assist you in renting or purchasing a comparable replacement
dwelling. In order to qualify you must either be a tenant who has occupied your present dwelling for at least
90 days prior to the Agency's becoming the landlord.
A. RENTAL ASSISTANCE UNDER URA REGULATIONS
If you qualify and wish to rent your replacement dwelling your rental assistance benefits will be based
upon the difference over a forty-two (42) month period between the rent you must pay for a
comparable replacement dwelling and the lesser of your current rent or thirty percent (30%) of your
gross monthly household income. You will be required to provide your relocation representative with
monthly rent and household income verification prior to the determination of your eligibility for this
payment. Note: Initial advance payments can be made, if requested, to provide displaces with sufficient
means to cover move-In expenses.
- OR-
B. RENTAL ASSISTANCE UNDER 104(D) REGULATIONS
If you qualify and wish to rent your replacement dwelling your rental assistance benefits will be based
upon the difference over a sixty (60) month period for 104(d) between the rent you must pay for a
comparable replacement dwelling and the lesser of your current rent or thirty percent (30%) of your
gross monthly household income. You will be required to provide your relocation
5
representative with montWy rent and household income verification prior to the determination of
your eligibility for this payment. Note: Initial advance payments can be made, if requested, to provide
displaces with sufficient means to cover move-in expenses.
V. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS
To qualify for a replacement housing payment, you must rent and occupy a comparable replacement unit
within one year from the later of the following:
A. For a tenant: the date you move from the displacement dwelling
B. The date the Agency fulfills its obligation to make available comparable replacement
dwellings.
All claims for relocation benefits must be ftled with the Agency within eighteen (18) months from the
date on which you receive final payment for your property or the date on which you move, whichever is
later.
VI. LAST RESORT HOUSING ASSISTANCE
If comparable replacement dwellings are not available when you are required to move or if replacement
housing is not available within the monetary limits described above the Agency will provide "last resort'"
housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last resort
housing assistance is based on the individual circumstances of the displaced person. Your relocation
representative will explain the process for determining whether or not you qualify for last resort assistance.
If you are a tenant and you choose to purchase rather than rent a comparable replacement dwelling the
entire amount of your rental assistance and last resort eligibility must be applied toward the down
payment of the home you intend to purchase.
VII. RENTAL AGREEMENT
As a result of the Agency's action to purchase the property where you live you may become a tenant of the
Agency. If this occurs you will be asked to sign a rental agreement that will specify the montWy rent to be
paid, when rent payments are due, where they are to be paid, and other pertinent information.
Except for causes of eviction set forth below no person lawfully occupying property to be purchased by the
Agency will be required to move without having been provided with at least ninety (90) days written notice
from the Agency. Eviction will be undertaken only in the event of one or more of the following infractions:
A. Failure to pay rent; except in those cases where a failure to pay is due to the lessor's failure to keep
the premises in habitable condition, is the result of harassment or retaliatory action, or is the result of
discontinuation or substantial intenuption of services; performance of dangerous illegal acts in the
unit; material breach of the rental agreement and failure to breach within 30 days of notice;
maintenance of a nuisance and failure to abate within a reasonable time following notice; refusal to
accept one of a reasonable number of offers of replacement dwellings; or
6
B. Performance of dangerous illegal acts in the unit;
C. Material breach of the rental agreement and failure to correct breach within 30 days of notice;
D. Maintenance of a nuisance and failure to abate within a reasonable time following notice;
E. Refusal to accept one of a reasonable number of offers of replacement dwellings;
The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of
the public entity.
VIII. APPEAL PROCEDURES - GRIEVANCE
Any person aggrieved by a determination as to eligibility for a relocation payment, or the amount of
payment, may have his/her claim reviewed or reconsidered in accordance with the Agency's appeals
procedure. Complete details on appeal procedures are available upon request from the Agency.
IX. TAX STATUS OF RELOCATION BENEFITS
Relocation benefit programs are not considered to be income for the purposes of the Internal Revenue
Code of1986 or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of
the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part 11 (commencing with
Section 23001) of Division 2 of the Revenue and Taxation Code.
X. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE
Those responsible for providing you with relocation assistance hope to assist you in every way possible to
minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and
greatly appreciated. If you have any questions at any time during the process please do not hesitate to
contact your relocation representative at 310-476-5433, or 562-624-2815.
7
RELOCATION PLAN
SAN aERNARDINO RIIDEVELOPMENT
AGENCY (SBRDA) AND MARY ERICKSON
COIIMUNITY HOUSING (M.E.C.H)
RIELOCATION PROJI!CT
PREPARED FOR
The Redevelopment Agency of the City of
San Bernardino (SBRDA)
And its Non-profit Development Partner
Mary Erickson Community Housing (MECH)
201 North E Street, Suite 301
San Bernardino, California 92418
BY
Shober Consulting, Inc.
August 2010
Relocation Plan for San Bernardino Redevelopment Aaencv ISBRDAl & Marv Erickson Communitv Housina IM.E.C.H. l
Prepared by Shober Consulting, Inc.
TABLE OF CONTENTS
INTRODUCTION
3
SECTION I: PROJECT AREA DESCRIPTION
A. Regional Location
B. Site Location
C. General Demographic Information and Housing Profile
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5
6
8
SECTION II: ASSESSMENT OF RELOCATION NEEDS
A. Methodology With Voluntary Sales
B. Methodology With Multiple Purchasers
C. Survey Results
1. Occupancy
2. Household Income
3. Replacement Housing Needs
4. Ethnic Mix
5. Senior and Disabled Tenants
6. Locational Preferences/Needs
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13
SECTION III: HOUSING RESOURCES
A. Residential Resources Available
B. Summary
13
13
16
SECTION IV: THE RELOCATION PROGRAM
A. Program Assurances, Standards and Objectives
B. Relocation Advisory Assistance
C. Concurrent Residential Displacement
D. Citizen participation
E. Relocation Benefits
F. Projected Dates of Displacement
G. Estimated Relocation Costs
H. Appeals Policy
I. Eviction Policy
16
16
17
18
18
19
20
20
22
22
SECTION V: SUMMARY
EXHIBITS
EXHIBIT A Information Brochure
EXHIBIT B Crime Statistics and Examples of Blight
EXHIBIT C San Bernardino County Median Income Summary
EXHIBIT 0 Information on Development Partner (MECH)
22
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Relocation Plan for San Bernardino Redevelopment Aaencv ISBRDA) & Marv Erickson Communitv Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
INTRODUCTION
The U.S. nationwide economic instability and subsequent real estate contraction began
in 2008. California's Inland Empire has been particularly affected with severe declines
in San Bernardino and Riverside County housing prices. The crisis has created large
and dramatic increases in foreclosure rates of residential properties, which has
accelerated bank repossessions, abandonments of properties, high vacancies in rental
properties and rise in blight and crime rates throughout the area.
Among the federal responses to the national problems has been the enactment of the
Neighborhood Stabilization Program (NSP), which has dealt with financial, banking, real
estate mortgages, and housing concerns throughout the United States. The City of San
Bernardino and the Redevelopment Agency of the City of San Bernardino ("the
Agency") applied for and received funds through the Federal NSP allocations to combat
the housing crisis.
The Agency has approved the use of NSP funds for the "Sunrise and 19th Street
Project" in the City's Arden Guthrie neighborhood. The project includes approximately
71 properties, all of which are in fourplexes along East 19th Street, and East Sunrise
Lane.
NSP and Housing Set-Aside funding will be used to acquire properties in the project
site. The Agency has entered into a partnership with an affordable housing non-profit
developer, Mary Erickson Community Housing ("MECH"). MECH will separately
negotiate and acquire properties in the project area, with the intention of acquiring,
remodeling and renovating the units, and renting the improved housing stock to low-
income tenants at affordable rental rates. The Agency will concurrently purchase
properties in the project site with the intention of demolishing the outdated units and
redeveloping the area with a variety of housing uses (single family housing, senior
housing, etc.).
The Agency and MECH are both actively negotiating with several project area owners to
purchase the properties in a voluntary manner. No owner is forced to sell his or her
property through this program.
When properties are purchased, the tenants in the affected units will be provided with
relocation assistance, relocation services, and relocation benefits in accordance with
the federal Uniform Relocation Act (URA), (See Exhibit A). The Agency has hired
Shober Consulting, Inc. to provide the needed relocation services.
Under the requirements of the federal guidelines, the Agency is required to prepare this
Relocation Plan for the project, addressing the potential concerns of the residential
property owners and tenants in the project area. This Relocation Plan will be reviewed,
modified and approved by the Agency, after the mandatory 30-day public review period.
During this review period, all interested parties, tenants, owners and other stakeholders
are encouraged to comment on the Plan.
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Relocation Plan for San Bernardino Redevelooment Aaencv (SBRDA) & Marv Erickson Communitv Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
Comments should be directed to:
Mr. Carey K. Jenkins, Director of Housing and Community Development
-or-
Mr. Samuel K. Hughes, Consultant
Economic Development Agency of the City of San Bernardino
201 N. "E" St., Suite #301
San Bernardino, CA 92401
This Relocation Plan is presented in four sections:
Section I: Consists of project area descriptions, the general housing information of the
seventy-one (71) affected properties, and the City of San Bernardino's ('the City")
demographic information.
Section II: Consists of survey methodology and an assessment of the aggregate
relocation needs of the seventy-one (71) residential properties to be affected as a result
of the development, with explanation of how these needs are to be met, plus a
Relocation Cost Estimate.
Section III: Consists of an assessment of the availability of comparable replacement
housing sites within the City of San Bernardino and surrounding areas for the seventy-
one (71) affected properties.
Section IV: Consists of the policies and procedures the Agency will follow to ensure a
fair and equitable relocation program, consistent with the Federal Uniform Relocation
Act (URA), the NSP Program, and the state of California Health and Safety Code
requirements.
Shober Consulting, an experienced professional relocation consulting firm, prepared
this Plan in accordance with the applicable provisions of the Uniform Relocation Act,
The NSP Program, the United States Department of Housing and Urban Development
(HUD) Handbook 1378, and the City of San Bernardino's on-going relocation
procedures.
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Relocation Plan for San Bernardino Redevelopment Aoencv ISBRDA) & Marv Erickson Communitv Housino IM.E.C.H.)
Prepared by Shober Consulting, Inc
SECTION I:
PROJECT AREA DESCRIPTION
A. THE REGIONAL LOCATION OF THE PROJECT
The project site is a part of the City's Arden Guthrie neighborhood. This area is in the
north east section of San Bernardino, in a mixed-use neighborhood, just south of the 1_
210 (Foothill) Freeway. The site is three miles east of the 1-215 Freeway, and roughly
five miles north of Interstate 10. San Bernardino is east of Rialto, northwest of Redlands
and approximately thirteen miles north of Riverside.
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Relocation Plan for San Bernardino Redevelooment Aaency (SBRDA) & Mary Erickson Communitv Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
B. PROJECT SITE LOCATION
The Sunrise and 19th St. Project is located directly east of Sterling Avenue, including
properties on E. 19th Street, and Sunrise Lane, all located west of N. Guthrie Street.
The project is within walking distance of the Highland Plaza Shopping Center, the San
Bernardino Community Gardens, and Rodriguez Middle School on N. Guthrie Street.
The neighborhood has many properties abandoned or with deferred maintenance, high
vacancy rates, and corresponding issues of crime and blight (See Exhibit B).
The project site specifically includes:
. 2030 to 2199 E. 19th Street
· 2024 to 2295 E. Sunrise Lane
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- 6 -
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Relocation Plan for San Bernardino Redevelooment Aaencv (SBRDA) & Mary Erickson Community Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
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Relocation Plan for San Bernardino Redevelopment Aaencv (SBRDA) & Mary Erickson Community Housina (M.E.C.H)
Prepared by Shober Consulting, Inc.
C. GENERAL DEMOGRAPHIC INFORMATION & HOUSING PROFILE
San Bernardino is a community with an estimated population of 207,832 according
to the U.S. Census Bureau update of 2008.
Racial and Ethnic Characteristics
The City of San Bernardino is multicultural in its racial and ethnic mix. The City is
rich in diversity. For general illustrative purposes, however, the city's breakdown for
these factors is as follows:
White 101,484
Black or African American 33,703
American Indian and Alaska Native 1,612
Asian 9,166
Native Hawaiian and Other Pacific Islander 729
Some Other Race 56,175
Two or More Races 4,963
Total Population 207,832
The tables above and below display the population mix as reported by the U. S.
Census Bureau in its 2008 update. The Census Bureau does not identify "Hispanic"
as a separate category, and therefore we have also included a pie chart below,
indicating the large Hispanic population in San Bernardino.
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Relocation Plan for San Bernardino Redevelopment Aaencv ISBRDA) & Marv Erickson Communitv Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
Population by Race
2.39%
. White
. Black or African American
. American Indian and
Alaska Native
. Asian
. Native Hawaiian and
Other Pacific Islander
. Some Other Race
. Hispanic
. Non-Hispanic
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Relocation Plan for San Bernardino RedeveloDment Aaencv ISBRDA) & Mary Erickson Community Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
San Bernardino had approximately 66,034 housing units in total (in 2008), with 52%
being owner-occupied units, and 48% as rental housing stock. This translates into
34,337 owner-occupied units and 31,696 rental units citywide. There was a rental
vacancy rate of 7.8% and a housing vacancy rate of 12% based on U.S. Census data
(in 2008).
SECTION II:
ASSESSMENT OF RELOCATION NEEDS
A. METHODOLOGY WITH VOLUNTARY SALES
This project combines the efforts of the City of San Bernardino ("the City") and the non-
profit housing developer "MECH" (See Exhibit D). The program is based on the
voluntarv sale of 71 properties. These properties are owned by individual owners, banks
that repossessed properties, and various other mortgagors or lenders. Because the
ownership of several properties is clouded, it has been difficult to impose a single date
as the initiation of negotiations for the properties. This date triggers certain relocation
eligibility, and so the date used for the initiation of negotiations for this project will differ
with individual parcels.
The relocation guidelines require notification of potential displacees to be interviewed
within thirty (30) days of the initiation of negotiations, and initial contact with the tenants
started shortly after offers were made.
Shober Consulting, Inc. staff conducted initial interviews as escrows were opened. The
interviews were conducted on site, unit by unit, with the respective head-of-household
and any extended family members. All interviews were conducted in either Spanish or
English by bilingual relocation consultants.
The purpose of the interviews was to obtain tenant information for the preparation of this
Plan. Inquiries made of residential occupants included occupancy status, household
size and composition, income and rental information, length and type of occupancy, any
disabilities and/or health problems, and preferences related to replacement housing.
Survey questions and housing profile information helps determine affordability issues.
Ascertaining household income is necessary in order to assess potential relocation
assistance benefits, and Section 8 voucher eligibility. Knowledge of employment
location and current proximity to needed service providers will enable relocation
counselors to assist displacees in identifying appropriate permanent housing.
B. METHODOLOGY WITH MULTIPLE PURCHASERS
There are two entities acquiring properties. The tenants of units purchased by
Affordable Housing Solutions (AHS), a non-profit Housing Agency established to
acquire foreclosed and distressed properties on behalf of the Agency will be interviewed
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Relocation Plan for San Bernardino Redevelopment Aaency (SBRDAI & Mary Erickson Community Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
as soon as possible after interest is identified. Some MECH properties were in escrow
when relocation staff was notified to interview tenants.
C. SURVEY RESULTS
1. OCCUPANCY OF RESIDENTIAL UNITS
There are 71 properties in the original project area, with over 250 residential
units. There is a high vacancy rate approaching 50%, and therefore there are
approximately 125 units occupied. Of these units, only a small percentage has
been interviewed to date, since the voluntary nature of the program means many
landlords have not responded to offers to sell their properties. Relocation staff
has waited to prepare this Relocation Plan until a minimum of ten (10) tenants
could be interviewed and assisted in their relocation needs. When additional
tenants are affected, the Relocation Plan will be adjusted accordingly. At this
time, results reflect the ten tenants presently involved with the program.
2. HOUSEHOLD INCOME
Of the active parcels, ten tenants have been interviewed and services have been
provided for both Agency and MECH-acquired properties.
The income declared by the tenants would be defined as "low-income" or "very-
low-income" by the Housing Authority of the County of San Bernardino's income
schedule (See Exhibit C).
The following table shows the income ranges:
INCOME LEVELS NUMBER OF HOUSEHOLDS
Below $1,000 Monthly 4
$1,001 - $1,250 Monthly 1
$1,251 - $1,500 Monthly 1
$1,501 - $1,750 Monthly 2
$1,751 - $2,000 Monthly 0
$2,001 or More 2
Total Households 10
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Relocation Plan for San Bernardino Redevelooment Aaencv ISBRDA) & Mary Erickson Community Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
3. REPLACEMENT HOUSING NEEDS and/or ASSESSMENT NEEDS
Each family must be relocated into dwellings that meet their family size and do not
allow overcrowded conditions. Presently, there is substantial overcrowding that has
been identified. Four of the 10 units will need larger space in replacement units to
maintain "Decent, Safe and Sanitary" requirements.
HOUSEHOLD CHARACTERISTICS AND NEEDS
Future
Units at Present Relocation Units
Needed
One-Bedroom 0 5
Two-Bedroom 10 1
Three-Bed room 0 3
Four-Bedroom 0 1
Total 10 10
4. ETHNIC MIX
Bilingual relocation consultants have conducted interviews and provided information
in both English and Spanish languages. In this particular project, while several
tenants are Spanish speaking, all tenancies have at least one person who speaks
fluent English.
PROJECT AREA ETHNIC MIX
Ethnicity Number of
Units
WHITE 4
HISPANIC 6
BLACK 0
ASIAN 0
TOTAL 10
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Relocation Plan for San Bernardino Redevelopment Aaencv (SBRDA) & Mary Erickson Community Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
5. SENIOR AND DISABLED TENANTS
Of the ten (10) occupied units, only one has a tenant 62 years of age or older. This
tenant still works, and there are no tenants with a physical handicap.
6. LOCATIONAL PREFERENCES/NEEDS
Each tenant will make his or her own decisions on replacement sites. Each
individual household will select a replacement site based on a combination of
factors:
· Geographic and locational preferences
· Financial assessibility of rental units
· Proximity to needed facilities (such as, hospitals, schools, shopping areas,
and employment opportunities)
· Proximity to other family members
· Proximity to Agency program opportunities
Most tenants have a stated preference to remain in the San Bernardino area. No
tenants have expressed interest in relocating out of state.
Relocation staff will monitor each household's requirements and preferences and will
try to accommodate the tenant's wishes when providing any needed relocation sites.
All selected replacement sites will be inspected to make sure it meets the "Decent,
Safe and Sanitary" dwelling requirements.
SECTION III:
HOUSING RESOURCES
A. RESIDENTIAL RESOURCES AVAILABLE
One of the primary purposes of this Plan is to demonstrate the availability of
comparable and decent, safe, and sanitary housing prior to the displacement of
residential occupants. Naturally the market will change in terms of specific units that will
be on the housing market by the time the Plan is approved. We have conducted rental
surveys starting in March 2010, and have conducted monthly surveys ever since. Our
surveys revealed that there will be more than adequate choices for tenants in selecting
replacement sites. Relocation staff will work with each tenant to find suitable and
appropriate sized units prior to the time of relocation.
To determine the availability of comparable housing prior to the displacement of tenants
from the E. 19th Street & E. Sunrise Lane Project area, housing resources were
researched using the following sources:
1. An on-going survey of classified rental listings of daily and weekly
newspapers which serve San Bernardino and the surrounding areas;
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Relocation Plan for San Bernardino Redevelopment Aaencv ISBRDA) & Mary Erickson Community Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
2. Drive-by "windshield surveys" of residential units in San Bernardino
neighborhoods;
3. Contact with real estate and property management companies serving San
Bernardino and surrounding communities;
4. The use of the Internet and rental listings on websites.
We have used replacement housing sites in the City of San Bernardino, and the
surrounding areas, including Fontana, Highland, Redlands, Rialto, and Grand Terrace.
The tables below show that there is a wide variety of one- , two-, three-, four- and five-
bedroom housing units in San Bernardino representing at least ten (10) times the
number of potentially displaced tenants:
ONE-BEDROOM APARTMENTS AVAILABLE FOR RENT
Rental Rates Number of Units
Available
$500 - $600 26
$601 - $700 31
$701 - $800 19
$801 - $900 26
$901 - $1,000 12
Total 114
TWO-BEDROOM APARTMENTS AVAILABLE FOR RENT
Rental Rates Number of Units
Available
$600 - $700 20
$701 - $800 83
$801 - $900 34
$901 - $1 ,000 26
$1,001-$1,100 48
$1,101-$1,200 43
Total 254
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Relocation Plan for San Bernardino Redevelooment Aaencv ISBRDA\ & Mary Erickson Community Housina IM.E.C.H. \
Prepared by Shober Consulting, Inc.
THREE-BEDROOM APARTMENTS AVAILABLE FOR RENT
Rental Rates Number of Units
Available
$801 - $900 6
$901 - $1,000 23
$1,001-$1,100 16
$1,101 - $1,200 29
$1,201 - $1,300 29
$1,301 - $1,400 23
Total 126
FOUR-BEDROOM APARTMENTS AVAILABLE FOR RENT
Rental Rates Number of Units
Available
$801 - $900 0
$901 - $1 ,000 1
$1 ,001 - $1 ,1 00 3
$1,101-$1,200 4
$1,201 - $1,300 6
$1,301 - $1,400 5
Total 19
Many of the available replacement sites are more expensive than the units currently
occupied. The relocation guidelines assume such a shortfall, and the rental assistance
payment will compensate the tenants for any rental increases, up to 42 months of
subsidy, using standard URA regulations and guidelines. When payments are
determined to meet the Section 104(d) special requirements, the length of subsidy
becomes 60 months rather than 42 months. Specific eligibility requirements are
enumerated in other sections of this document, and Relocation Eligibility Brochures will
be provided to all tenants at the appropriate time.
For purposes of this Plan, the survey results show an ample supply of comparable one,
two, three and four-bedroom replacement units. As an example, there are over 200
available vacancies for the six (6) households that will qualify for two-bedroom
replacement sites.
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Relocation Plan for San Bernardino Redevelopment Aaencv ISBRDA) & Marv Erickson Communitv Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
B. SUMMARY
Replacement housing resources show that there are ample places for each displaced
tenant to relocate based on size and affordability. Affordability guidelines must be
maintained to ensure guideline requirements and the Agency will use its best efforts to
assist each tenant.
SECTION IV:
THE RELOCATION PROGRAM
Relocation assistance will be provided in accordance with the standards and provisions
of the State of California Relocation Law, Government Code Section 7260, et. seq., and
Title 25, chapter 6, Relocation Assistance and Real Property Acquisition, as amended
January 01, 1998, and the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) and the implementing regulations of Handbook 1378 of the
Department of Housing and Urban Development (HUD), as appropriate. Since federal
NSP dollars will be used in this project, federal relocation guidelines will be in place. It
has been determined that some tenants will meet the guidelines for Section 104(d)
relocation benefits.
A. PROGRAM ASSURANCES, STANDARDS AND OBJECTIVES
The relocation program to be undertaken on behalf of the Agency will conform to the
standards and provisions of the State of California Relocation Law, Government Code
7260, et. seq., and the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) and the implementing regulations of Handbook 1378 of the
Department of Housing and Urban Development (HUD).
With these two sets of rules as guideposts, the program objectives will be as follows:
1. To fully inform eligible project occupants of the nature of, and procedures for
obtaining relocation assistance and benefits.
2. To determine the needs of each residential displacee household eligible for
assistance.
3. To provide an adequate number of referrals to comparable, decent, safe and
sanitary housing units within a reasonable time prior to displacement and assure
that no residential occupant displaced is required to move without a minimum of
90 days written notice to vacate.
4. To provide current and continuously updated information concerning comparable
replacement housing opportunities.
5. To provide assistance that does not result in different, or separate treatment due
to race, color, religion, national origin, sex, sexual orientation, marital status, or
other arbitrary circumstances.
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Relocation Plan for San Bernardino Redevelopment Aoencv (SBRDA) & Mary Erickson Communitv Housino (M.E.C.H.)
Prepared by Shober Consulting, Inc.
6. To supply information concerning federal and state housing programs and other
governmental programs providing assistance to displaced persons.
7. To assist each eligible person to complete applications for benefits.
8. To make relocation benefit payments in accordance with State and URA
guidelines, including provisions of the Last Resort Housing sections, where
applicable, and Section 104(d) guidelines where applicable.
9. To inform all persons subject to displacement of the Agency's property
management policies including eviction.
B. RELOCATION ADVISORY ASSISTANCE
As a function of the overall relocation assistance program technical and advisory
assistance will be provided by the Agency, through their relocation representative to all
displacees. Relocation personnel will be capable of conducting business in either
English or Spanish. To date, within this particular project there is only one tenant who
speaks Spanish as the first language.
The following specific activities will occur or have already occurred in connection with
preparation of this Relocation Plan and will occur in its implementation approach:
1. Each household affected by the project has been personally interviewed to
gather information appropriate to determine needs and preferences with regard
to the replacement of existing accommodations. Inquiries made of residential
occupants by relocation personnel will cover the following areas: family size,
ethnic background, immigration status, age and health considerations, current
employment status, family income, transportation needs, and preferences
relative to replacement housing.
2. Printed "Residentiallnform~tion Brochures" have been provided to all displaced
persons. A Spanish residential Information Brochure will be provided to those
households whose primary language is Spanish. Signed acknowledgements will
be obtained to verify receipt of this material. Interviews and all follow-ups will be
conducted in Spanish or English according to the needs of the resident
household.
3. Displacees will be effectively screened by the Agency and relocation personnel
to determine possible eligibility for assistance under the Section 8 program even
though the program is experiencing a "freeze" for new applicants.
4. Field surveys have been conducted in order to identify available housing
resources and, at least one - and preferably three - appropriate replacement
housing referrals will be made on a timely basis, to residential displacees. Every
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Relocation Plan for San Bernardino Redevelopment Aqencv (SBRDA) & Marv Erickson Communitv Housinq (M.E.C.H.)
Prepared by Shober Consulting, Inc.
effort will be made to find replacement housing units which are reasonably
accessible to currently utilized medical facilities, places of employment, schools,
shopping areas, and public transportation.
5. As soon as feasible, the Relocation Consultant shall explain the relocation
payments and other assistance for which the person may be eligible, including
related eligibility requirements and the procedures for obtaining such assistance.
The Relocation Consultant shall describe replacement housing recommendations
and referrals upon which eligibility for assistance has been determined.
6. Assistance will be provided to complete rental application forms if needed.
7. Transportation will be provided, if necessary, for any displaced occupant to
inspect replacement sites within the local area.
8. Assistance will be offered to all displacees in connection with arrangements for
the purchase of real property - if an option - and the completion of applications
for replacement housing; the filing of claim forms to request relocation benefits
from the Agency, and to obtain services from other public agencies.
9. Special assistance in the form of referrals to governmental and social service
agencies will be made, if needed.
10. All assistance provided to displacee households will be in the primary language
spoken by the households.
C. CONCURRENT RESIDENTIAL DISPLACEMENT
The Agency does not have additional competing projects within two miles of the project
site for similar residential units within the City during the potential period of
displacement. If this changes, the Agency pledges that any other project must meet the
same replacement options for those affected by that project. There are ample vacancies
in the area to accommodate displacees should any competing projects occur.
The City of San Bernardino and its Redevelopment Agency periodically have units
being displaced due to their many economic development projects. We will continue to
monitor potential concurrent displacement projects.
D. CITIZEN PARTICIPATION
The City of San Bernardino and Mary Erickson Community Housing have actively kept
the comrr.i.mity aware of the progress of this project.
The Agency has encouraged public knowledge and citizen partic.ipation in the ongoing
history of this project. All tenants in the targeted geographic area have been contacted
numerous times. The Agency has met with some of the previous and current owners
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Relocation Plan for San Bernardino Redevelopment Aaency (SBRDA) & Mary Erickson Community Housina (M.E.CH.)
Prepared by Shober Consulting, Inc
and the tenants of the project site. The Agency has spoken about this project in their
open sessions of Agency meetings and it has been discussed at City of San Bernardino
open meetings.
The Agency has had a series of public meetings for both affected landlords and
potentially affected tenants. On February 9, 2010, the City hosted a landlord meeting
with all interested land owners. Staff from the City, plus relocation and acquisition
agents were present to answer any questions from landlords. Discussion included tax
ramifications of sales, banking and financial options, plus detailed information regarding
relocation guidelines.
A community-wide Open House and discussion was held on February 25,2010, also
hosted by the City. At this meeting, all potential tenants affected by the program were
personally invited to attend the evening meeting, which was catered and included food
and beverage, plus day care services for tenant's family needs. At this meeting, all
tenant questions were individually answered by bilingual relocation staff and acquisition
personnel. City staff and other outside consultants were available for discussion.
As the project goes forward, the Agency will welcome and facilitate open discussion and
citizen participation. The Agency will observe its obligations under Section 6012 of the
California Administrative Code, Title 25, Chapter 6, to give timely notice to all tenants
and to make copies of this Plan available to the public upon request. The City has made
plans to allow public review for a minimum of thirty (30) days before final adoption of the
Relocation Plan.
E. RELOCATION BENEFITS
Relocation benefits will be provided in accordance with the provisions of the California
Relocation Assistance Law, and the federal Uniform Relocation Act, including Section
104(d) requirements. Benefits will be paid to eligible displaced persons upon
submission of required claim forms and documentation in accordance with City of San
Bernardino guidelines and procedures. Specific eligibility requirements and benefit
plans will be detailed on an individual basis with all displacees. In the course of personal
interviews and follow-up visits, each displacee will be counseled as to available options
and the consequences of any choice with respect to financial assistance.
General relocation benefits for residential tenants are summarized in the attached
Relocation Benefits Brochure, Exhibit A.
For tenants qualifying for Section 104(d) relocation guidelines, the main additional
benefit is the extending of 42 months rental subsidy into 60 months of subsidy. Several
factors must apply for this change to be put into effect (income status, handicapped
status, etc.). Relocation staff will closely monitor the triggering of 104(d) status on a
case-by-case basis. The Agency pledges the implementation of such benefits where
required.
- 19 -
Relocation Plan for San Bernardino Redevelooment Aaencv (SBRDA) & Marv Erickson Community Housina (M.E.C.H.)
Prepared by Shober Consulting, Inc.
F. PROJECTED DATES OF DISPLACEMENT
This NSP Program is voluntary in nature. Only the land owners who desire to
participate in selling their property are affected. The projected dates of displacement
vary on a parcel-by-parcel basis, and only for parcels purchased either by the City of
San Bernardino or MECH.
When the Agency purchases a property, the tenants qualify for relocation benefits
based on dates of occupancy. All tenants will be assisted with relocation services by
Shober Consulting staff. Tenants do not need to wait for a Notice to Vacate, if their
landlord participates by selling the property. In general, when MECH or the City
acquires the property, the tenants in residency of those units will shortly thereafter
receive a gO-Day Notice to Vacate.
G. ESTIMATED RELOCATION COSTS
SBRDA and MECH will be using Neighborhood Stabilization Program (NSP) funds and
Housing Set-Aside funds for this project. The Agency retains its right to change,
augment, or modify the sources of funding for this project. The Agency pledges that all
normal and required relocation expenses will be paid to the displacees in a prompt and
timely manner. Relocation costs will include a Fixed Moving Payment (FMP) and a
Rental Assistance Payment (RAP) or Downpayment Assistance Payment (DAP) for
each of the tenancies, taking into account the unknown number of actual cases since
the program is voluntary in nature for the offsite owners. For tenants qualifying for
Section 104(d) benefits, RAP payments are extended to 60 months.
For purposes of a Cost Estimate, we anticipate relocation costs to average
approximately $20,000.00 per occupied unit for standard URA regulations. This is made
up of two components for each case:
For a standard URA relocation payment, we estimate the following:
1. Fixed Moving Payment Estimates, per unit
(Either professional or self-moves)
$ 1.500.00
2. A Rental Assistance Payment for 42 month
subsidy; averaged per unit (Based on
Last Resort Housing Payments of
the initial ten cases)
$18.500.00
3. Estimated Cost Total, per unit with URA
relocation benefits; or
$20,000.00
- 20-
Relocation Plan for San Bernardino Redevelooment Aaencv ISBRDA) & Marv Erickson Communitv Housina IM.E.C.H.)
Prepared by Shober Consulting, Inc.
For a Section 104(d) relocation payment, we estimate the following:
1. Fixed Moving Payment Estimates, per unit
(Either professional or self-moves)
$ 1.500.00
2. A Rental Assistance Payment for 60 month
subsidy; averaged per unit (Based on
Last Resort Housing Payments of
the initial ten cases)
$26.450.00
3. Estimated Cost Total, per unit with 104(d)
relocation benefits
$28.000.00
As a further explanation of how a Rental Assistance Payment (RAP) is calculated for
cost estimate purposes, we provide a sample calculation. The RAP is the shortfall
between the replacement site rental rate and either the current rental rate or the
tenant's ability-to-pay, which is defined as 30% of gross household income.
Example:
a) Replacement Rent:
b) Current Rent:
c) Ability-to-Pay (30%):
$850.00
$750.00
$400.00
New Rent, minus lesser of (b) or (c).
The calculation becomes $850.00 - $400.00 = $450.00.
This figure is then multiplied by the 42-month subsidy, or
$18,900.00
We have used an estimated $20,000.00 average for tenant RAP's of 42 months,
realizing this figure will vary with each tenancy, due to the variations in income and
current rental differences. The $20,000.00 figure also includes a Fixed Moving Payment
estimate. For cases where 104(d) requirements will mandate 60 month subsidies, we
are estimating $26,500 per tenancy, plus $1,500 for Moving Expenses, for a total figure
of $28,000 for 104(d) tenants.
Relocation staff estimates a total of 45 units will be relocated. If that figure changes, so
will the relocation budget; additional cases above 45 would increase total relocation
fees.
25 Cases at 104(d) status, or 25 x $28,000 =
20 Cases at URA status. or 20 x $20.000 =
The total Relocation Budget assumes
45 cases and is estimated at
$ 700,000
$ 400.000
$1,100,000
- 21 -
Relocation Plan for San Bernardino Redevelopment Aoencv (SBRDA) & Marv Erickson Community Housino (M.E.C.H.)
Prepared by Shober Consulting, Inc.
H. APPEALS POLICY
Any person aggrieved by a determination as to eligibility for a relocation payment, or the
amount of payment, may have his/her claim reviewed or reconsidered in accordance
with the Agency's appeals procedure. Complete details on appeal procedures are
available upon request from the Agency.
The Agency will review appeals of any relocation procedures and/or determinations
through its existing RDA Council and the City Council, where appropriate. Complete
details on appeals procedures are available upon request from the Agency.
I. EVICTION POLICY
The City of San Bernardino takes seriously its' obligation to maintain its' properties
under "decent, safe and sanitary" conditions. When tenants violate rental policies,
conditions, lease and/or rental agreements, or when tenants violate municipal or state
rental laws, the City reserves the right to enforce and apply the lawful remedies,
including but not limited to eviction.
SECTION V.
SUMMARY
The Relocation Plan clearly shows several facts:
· There are adequate places for these tenants in appropriately sized replacement
units throughout San Bernardino. We have found at least ten (10) times the
number of units needed in the surrounding community.
· The Plan also shows that the present dwellings have comparable rents or lesser
rents when compared to market rental rates.
· Most of the tenants on-site have relatively lower income than the citywide median
income of San Bernardino. This means that many tenants will qualify for sizeable
Rental Assistance Payments, since their affordability is defined as 30% of their
gross monthly household income.
· The average income level of the Tenants will mean that the program will have
higher-than-average Rental Assistance Payments.
· The Housing Resource Study shows an ample number of replacement sites that
will be utilized to assure an affordable transition. Because the program is
voluntary in nature, the displacement of tenants will be spaced out over time,
thus minimizing competition for available units in the rental market.
· The Agency pledges the time, money, and effort to ensure a successful
relocation program. The Agency takes seriously its responsibilities to assist each
tenant to relocate with a minimum of inconvenience, anxiety, and disruption.
- 22-
REPLACEMENT HOUSING PLAN
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San Bernardino
Economic
Development Agency
201 North "E" St., Ste. 301
San Bernardino, CA 92401
T: 909-663-1044
F: 909-888-9413
www.sbrda.org
19th Street & Sunrise Lane Project
Prepared by:
Shober Consulting, Inc.
520 S. Sepulveda Blvd., Ste. 204
Los Angeles, CA 90049
T: 310-476-5433
F: 310-476-5583
www.shoberconsulting.com
Table of Contents
I. Introduction 3
II. Definitions 4
III. Replacement Housing Requirements 5
IV. Project Description and Location 6
V. Residential Units To Be Removed And Replaced 7
VI. General Location of Replacement Housing To Be
Rehabilitated, Developed or Constructed 7
VII. Financing of Replacement Housing 8
VIII. Timetable For Development of Replacement Housing 8
IX. Applicability of / Compliance With Article XXXIV
of the California Constitution 9
X. Provision For Public Review And Comment 9
2
I. Introduction
When economic instability and real estate contraction hit the United States in 2008, San
Bernardino and its surrounding areas were some of the hardest hit. San Bernardino
. itself has had one of the highest foreclosure rates in the nation. With the housing
industry as the area's number one employer at the height of the real estate bubble,
unemployment joined foreclosure and declining housing prices to create a cascade of
negative impacts in the city. Bank repossessions, abandonments of property, high
vacancies in rental properties and rise in blight and crime rates have all accelerated.
When the federal government created the Neighborhood Stabilization Program (NSP) to
deal with problems like the ones San Bernardino faced, the city applied to NSP and was
allocated funds to combat the housing crisis. The San Bernardino Redevelopment
Agency approved the use of NSP funds for the "Sunrise and 19th Street Project in the
City's Arden Guthrie neighborhood. The project includes approximately 71 properties
totaling over 240 units, mostly fourplexes (see map on page 6).
This Replacement Housing Plan ("Plan") for the 19th Street & Sunrise lane Project
("Project") has been prepared pursuant to Section 33413.5 of the California Health and
Safety Code for the San Bernardino Redevelopment Agency ("Agency"). Section 33413.5
requires executing an agreement for acquisition of real property, or executing an
agreement for the disposition and development of property, or executing an owner
participation agreement, whenever the agreement would lead to the destruction or
removal of dwelling units from the low and moderate-income housing market. The
Agency shall adopt by resolution a replacement housing plan within 30 days.
Section 33413.5 requires the Plan to include the following components:
1. In the proposed project, the number of dwelling units housing persons and
families of low- or moderate-income to be removed and replaced by
construction or rehabilitation;
2. The general location of housing to be rehabilitated, developed or constructed
pursuant to Section 33413;
3. An adequate means of financing such rehabilitation, development, or
construction;
4. The timetable for meeting the Plan's relocation, rehabilitation, and replacement
housing objectives; and
5. A finding that the replacement housing does not require the approval of the
voters pursuant to Article XXXIV of the California Constitution, or that such
approval has been obtained.
3
II. Definitions
For purposes of the Replacement Housing Plan, certain terms and concepts must be
clarified for precise understanding of the terminology and applicability. The definitions
are found below:
"Very-Low-Income Household"
Persons and families whose gross incomes do not exceed SO percent of the area median
income adjusted for family size.
"Low-Income Household"
Persons and families whose gross incomes exceed SO percent but do not exceed 80
percent of the area median income adjusted for family size.
"Moderate-Income Household"
Persons and families whose gross incomes exceed 80 percent but do not exceed 120
percent of the area median income adjusted for family size.
"Affordable Renter Occupied Housing Cost"
Section 50053 of the California Health and Safety Code states that for any rental housing
development, "affordable rent," including a reasonable utility allowance, shall not
exceed:
1) For very-low-income households, the product of 30 percent times SO percent of
the area median income adjusted for family size appropriate for the unit.
2) For lower-income households whose gross incomes exceed the maximum
income for very-low-income households, the product of 30 percent times 60
percent of the area median income adjusted for family size appropriate for the
unit. In addition, for those lower-income households with gross incomes that
exceed 60 percent of the area median income adjusted for family size, it shall be
optional for any state or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of the household.
3) For moderate-income households, the product of 30 percent times 110 percent
of the area median income adjusted for family size appropriate for the unit. In
addition, for those moderate-income households whose gross incomes exceed
110 percent of the area median income adjusted for family size, it shall be
optional for any state or local funding agency to require that affordable rent be
established at a level not to exceed 30 percent of gross income of the household.
"Replacement Dwelling Unit"
For this Replacement Housing Plan, "Replacement Dwelling Unit" means a dwelling unit
developed or constructed in the City of San Bernardino pursuant to Section 33413 in
4
replacement of a dwelling unit destroyed or removed from the low- and moderate-
income housing market by the Agency and which is decent, safe and sanitary, contains
at least the same number of bedrooms and other living areas as the dwelling unit
destroyed or removed, and is available at affordable housing cost to low-and moderate-
income households.
"Developed by the Agency"
For this Replacement Housing Plan, "developed by the Agency" means that the Agency
has contracted directly with a building contractor or third party (Mary Erickson
Community Housing, or M.E.C.H.) for the construction or rehabilitation of dwelling units.
III. Replacement Housing Requirements
Section 33413(a) of the California Health and Safety Code requires that whenever low-
and moderate-income household dwelling units are destroyed or removed from the
housing market as part of a redevelopment project which is subject to a written
agreement with a redevelopment agency or where financial assistance has been
provided by the agency, the agency shall, within four years of the destruction or
removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low- or moderate-income, an
equal number of replacement dwelling units which have an equal or greater number of
bedrooms as those destroyed or removed units at affordable housing costs within the
territorial jurisdiction of the agency.
When dwelling units are destroyed or removed on or after January 1, 2002, 100 percent
(100%) of the replacement dwelling units shall be available at affordable housing cost to
persons in the same or lower income category (low, very low, or moderate), as the
persons displaced from those destroyed or removed units.
Section 33413(f) of the California Health and Safety Code modifies these requirements
as follows:
Notwithstanding subdivision (a), the Agency may replace destroyed or removed
dwelling units with fewer number of replacement dwelling units if the
replacement dwelling units meet both of the following criteria:
1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or
removed units. Destroyed or removed units having one or no
bedroom are deemed for this purpose to have one bedroom.
2) The replacement units are affordable to the same income level of
households as the destroyed or removed units.
5
IV. Project Description and Location
The project site specifically includes: 2030 to 2199 E. 19th Street and 2024 to 2295 E.
Sunrise lane. The proposed project for the 19th Street & Sunrise lane Project includes
approximately 71 properties, all of which are in fourplexes along East 19th Street, and
East Sunrise lane. NSP and Housing Set-Aside funding will be used to acquire properties
in the project site. The Agency has entered into a partnership with an affordable
housing non-profit developer, Mary Erickson Community Housing ("MECH"). MECH will
separately negotiate and acquire properties in the project area, with the intention of
acquiring, remodeling and renovating the units, and renting the improved housing stock
to low-income tenants at affordable rental rates. MECH's activities will not result in any
numerical change in the affordable housing units, as well as all units purchased by
MECH will be rehabilitated and kept as low-income units. The Agency will concurrently
purchase properties in the project site with the intention of demolishing the outdated
units and redeveloping the area with a variety of housing uses (single family housing,
senior housing, etc.), as well as open spaces, parks, etc.
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The primary activities will include the following:
A. Acquisition, Relocation and Demolition: The Agency will acquire the Property,
relocate the existing occupants in accordance with federal relocation law and
demolish the structures to prepare the site for new affordable housing.
B. New construction and/or Substantial Rehabilitation: The assemblage of property
and all new construction and rehabilitation will be in accordance with the
Redevelopment Agency of San Bernardino's General Plan and current City zoning
requirements.
V. Residential Units to Be Removed and Replaced
The subject project has the potential of displacing over 240 units, through a
combination of voluntary acquisition deals with over 71 individual parcel owners. At
present, the voluntary nature of the project has made acquiring the parcels
problematic; with approximately 12 parcels being purchased as of September 30, 2010.
The purchases have been occurring by use of public funds of the NSP authorization and
by the efforts and private funds of the non-profit partner Mary Erickson Community
Housing (MECH).
Because the NSP project relies on voluntary acquisition of housing properties in the
project area, there is no exact number of units that will be affected. In the case of
MECH properties, the units will be rehabilitated and re-rented as affordable housing for
low-income tenants. There will be no net loss of affordable units for the MECH
properties.
For those properties acquired by the City of San Bernardino, demolition of fourplexes
will take place and a combination of subsequent uses for the land will be considered,
including senior housing projects. The total bedrooms to be removed is estimated
below 100, but could be as high as 140.
VI. General Location of Replacement Housing to Be Rehabilitated, Developed or
Constructed
Pursuant to California Health and Safety Code Section 33413, the Agency will, within
four years, rehabilitate, develop or construct, or cause to be rehabilitated, developed or
constructed, for rental or sale to persons and families of very-low, low- or moderate-
income an equal number of dwelling units which have an equal number of bedrooms as
those removed dwelling units which have an equal number of bedrooms as those
removed dwelling units, or a fewer number of replacement dwelling units if the
replacement dwelling units collectively contain an equal or greater number of bedrooms
than the combined bedrooms destroyed or removed and are available at affordable
housing cost to households of the same income category as the displaced households.
7
The replacement dwelling units will be located within the various redevelopment areas
of San Bernardino in close proximity to the Project Area.
The following projects have been completed or are in various states of completion in the
City of San Bernardino. The net number of 631 bedrooms will be built or have been
built by efforts and funding sources directly or indirectly controlled by the City of San
Bernardino and the San Bernardino EDA. This figure of 631 compares favorably to the
potential maximum number of bedrooms that could be demolished after acquisition by
the City of San Bernardino, if all land owners voluntarily sold properties to the City
(approximately 144). Presently, only a fraction of properties have been acquired.
PROJECT UNIT# BEDROOM # AMI PROJECT TIME
AFFORDABILlTY
Lynwood Apartments - Rehab 40 92 40% - 50% Acquisition Phase
Northbrook Apartments - Rehab 190 244 50% - 60% Acquisition Phase
Lugo Apartments - Rehab 120 132 50% - 60% Acquisition Phase
TELACU IV - Senior Development 90 89 50% Lease-Up
TELACU V - Senior Development 75 74 50% Lease-Up
TOTALS 515 631
VII. Financing of Replacement Housing
SBRDA and MECH will be using Neighborhood Stabilization Program (NSP) funds and
Housing Set-Aside funds for this project. The Agency retains its right to change,
augment, or modify the sources of funding for this project. The Agency historically has
also used other sources of funding, including Community Development Block Grants
funds, tax increment and proceeds of tax allocation bond sales, FHA insured loans,
Section 202/Section 8 elderly housing assistance funds, land sales proceeds and pre-
construction developer advances.
The City also reserves its right to utilize its annual NOFA (Notice of Funding Availability)
mechanism to develop affordable units. The NOFA program finances the acquisition
and substantial rehabilitation of existing apartment complexes that are a blighting
influence in the community.
VIII. Time Table for Development of Replacement Housing
The Agency, through agreements with development entities, will complete within four
years of the date the units are destroyed, construction and/or rehabilitation of
replacement housing units necessary to satisfy all very-low and low-income affordable
dwelling units discussed in this Replacement Housing Plan. The Sunrise and 19th Street
8
The units will remain affordable for a 55-year term at recordation of an Agreement
Affecting Real Property (IiAARpli).
IX. Applicability of / Compliance with Article XXXIV of the California Constitution
Article XXIV of the California Constitution requires voter approval of all low-rent housing
projects that are developed, constructed, or acquired by a public entity. Under Section
37001 of the California Health and Safety Code, the Project is not a iii ow-rent housing
projectli as defined in Section 2 of Article XXXIV of the California Constitution because
the housing units are being developed to replace dwelling units previously or currently
occupied by lower-income households. Therefore, the proposed replacement housing
does not require the approval of voters pursuant to Article XXXIV of the California
Constitution.
X. Provision For Public Review And Comment
In accordance with Section 33413.5, this draft Replacement Housing Plan was made
available for 30 days for review and comment by the general public and other public
agencies. All comments received in response have been reviewed and applicable
responses were given by city staff and incorporated into the final version of the Plan.
Comments may be directed to:
Mr. Carey K. Jenkins, Director of Housing and Community Development
Or, Mr. Samuel K. Hughes, Housing Consultant
At: Economic Development Agency of the City of San Bernardino
201 N. IiEIi Street, Suite. 301
San Bernardino, CA 92401
9