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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 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. 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. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Commission/Council Notes: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------_. 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 ------------------------------------------------------------------------------------------------------------------------------------------------------------. 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. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 4 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 P:lAgendaslResolutionslResolutions\201 1\02-07-1 1 Relocation and Replacement Housing Plans - 19th & Sunrise MCC Reso.docx 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 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III 2 P:\AgendasIResolutionslResolutions\2011\02_07_11 Relocation and Replacement Housing Plans - 19th & Sunrise MCC Reso.docx 1 2 3 4 5 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 28 3 P:\AgendasIResolutionslResolutions\201 1102-07-1 I Relocation and Replacement Housing Plans - 19th & Sunrise MCC Reso.docx 1 2 3 4 5 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 P:\AgendasIResolutionslResolutions\2011102-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise CDC Reso.docx 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. 4 1// 5 1// 6 1// 7 /1/ 8 1// 9 1// 10 /1/ 11 1// 12 /1/ 13 1// 14 1// 15 1// 16 1// 17 1// 18 1// 19 1// 20 1// 21 1// 22 1// 23 1// 24 1// 25 1// 26 1// 27 1// 28 1// P:\AgendasIResolutionslResolutions\2011102-07-11 Relocation and Replacement Housing Plans - 19th & Sunrise CDC Reso.docx 3 1 2 3 4 5 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 ~ ~f~ ~~'\'\ .;..'" ~~..\ : a.. '.... ~ .~y . ". ~l' X ~,~/ . ~i .:l \~4 i." l ....:,~r,. "'~ i'-;:'iY. ',.''1, ..,....,. 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 5 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 10 10 10 11 11 11 12 12 13 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 - 2 - 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. - 3 - 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. - 4 - 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. Regional map ,m"., \.'.... ' MU5COY - 1""'lIrfIJYf'lII:allJ Farms l..!!) University. .' District t~ z :E" f 35 Shandln Hill!". ~ " Blair Part ~ " Rancho West z California Mt Vernon Ii I Rrseveh i' La~ PlaZM FoDthil eNd .~\S'" St . j . B:~:~ino /~:--~. "".,. ) ~:~""oo~ i Collon Valleyj V~IIey V.e'1/Ril/erview College . . . PerrisHill!". Small ~ Canyon -: --. (j San Andre8~ c,\N San Highland Goroonio. \....nd fIlIt I ~~,. ,..- ..;-.~.,--~ 'f~ .... ~EaI.rr W -- .... ~__ fj!~ .~ . J>f!~.~~ Baseline Rd l 9- !C! I II: t9 . South Poinle Norlh Central f .. .;:;... RecJlandSW" - 5 - 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 Neighborhood Map H ti!J Z! R:tti';Q(1 BV1D: ' l:i f :7J a ~ o ~ r '" z ~ ~ z !(> C) s;. i 51 Bu' Q~' K,..,,, " f Q 0 ",-I' z 'V I i )> ;;; < . )> W < .. ~ .. m fi,,;] ~ SliM""'} m G(,w:1-. Kra~}Nl Al,j~(.. P iHh. " Pit'.~ EHtghlandAve f % Elm 'we ~ Highland Plaza ShOppIng Center ;z ~ ~ .: ,. . "" (') ! ,. . E 20Ih 5t ~ 0- ~ ;; .. 51 z J :; ~'t\ Cl Z m ~Sl )> 3' < E 17th S1 . )> c: < .oJ .. '" Pasdo SI C; If- f ';'~'''', ~J'h'h1/iJ ~ Paclftc: 51 C...nk' PllClttc: 51 :7J ~ 8 C) .. "i. ;;! Byron S1 . ,... ~ItJS~ ~ " E s..v... Ln MECH E 17lh St ~ ~ .. " S ~ . '9~ ~, ~"IJ 0'1 "to e 18th 51 2: 2: ~ ~ !(> Paciftc: 5\ - ;:.;.)011 r~<,fj"'(,"",,,,, - 6 - o o o Relocation Plan for San Bernardino Redevelooment Aaencv (SBRDA) & Mary Erickson Community Housina (M.E.C.H.) Prepared by Shober Consulting, Inc. Project Site Map Illi en ;0 " :J ~ ~ 5 ~ ~r "' ~ <T ::t: ::t: ~ ~ 2 ~. CD co 0 ~ S' ::I '" N U1 !!l "tJ III "' :r ~ ~ jj; ~ ~ ~ :... <l 0> CD ~ E <> ; .!!!. en 5 ~ fIl' CD Q) = Q. ...-. co S ;? ~ CD' n - .J1HU U'lg ~ 'II: ~..,a O[~;I~~ fHft~ if $ ~g" ;z;E~~ ~ ~e. ~ i !!; .,,0 ~ ! - 7 - 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. - 8 - 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 - 9 - 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 - 10- 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 - 11 - 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 - 12 - 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; - 13 - 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 - 14 - 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. - 15 - 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. - 16 - 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 - 17 - 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 - 18 - 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 ," ...."->L;X..",::.:.:>>.,'y:',:. ". ;i"-~,~," T/"-:<;;;~",:e~' . .~t:::,._ :"\,:",..,:,'\j;",c:,-~<;'__,,w' ~:'''''i' ""'-"";r~0:;;t~Jr:t'~!t];~~' 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. B,t"~~. ~,:f~:l" EHoghIlIncIAve ~ 1& Elm Ave ~ c- ..:1' z Ul ~ f i c )> a; a >- W < c >- ~ f ;0 o ~ )0 0 ~ < '" .. o f !? 09"<;, Ci,;. ~ '>10 of.. PacifIC 51 z f .s..,,, .f "' "'SI )> ~ ., ~ . .. Pa$o\oSt PaofIC SI ByronSt H el :1 R'k/\ld IIi'J UJq ~ $.ri\1't':'ll) li!.l KUt9<:~n Al;~(J Daft<. Gnn:1-. Hlghland Plaza Shopping Center z Cl So i E 20lh Sf II> Mf01 I E 19th SI SBRDA I SBROA I SBRDA I SBRDA I E Su~ Ln f;. s....nm..l... ~ SBROA I~ I ME01 I < " .. E 18th St s ~ Z E 18th Sf E 17th Sl z E 1'hh Sf ~ c J ..J ~ i J . to. ~ ;..,~,;. ..jt'fl.I!\:: ~ " ! ;;:;....n~'" , PaIC 51 PllCIflCSI II 1: 2. t .. ~ U....t~d5f to. r {' " .r";~n h'O!C'l".....,., ~( 6 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