Loading...
HomeMy Public PortalAbout2008-06-17LRA~ _ ~' ~~~11k~~.~,~i~ 1I~3C1 I~t~iLLl~ f~~~~~ L~"C~1!l~/~~~, ~f~LII=~~T~![f~ 9®2~2-~~a-S ~3[t~~ X03-~9~~® ~~1 Maria T. Santillan, Chair Aide Castro, Vice Chair Alfredo Flores, Member Jim Morton, Member Ramon Rodriguez, Member This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Materials related to an item on th-s Agenda submitted to the Agency Board after distribution of the Agenda packet are available for public inspection at the Agency Secretary's office at the above address during normal business hours. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. AGENDA LYNWOOD REDEVELOPMENT AGENCY JUNE 17, 2008 JUN 12 Z00~ REGULAR MEETING CITY OF LyNWOO® 6:00 P.M. OITY CLEf~~S OFFICE a LYNWOOD CITY HALL, 11330 BULLIS ROA MARIA T. SANTILLAN CHAIR • AIDE CASTRO ALFREDO FLORES VICE CHAIR MEMBER JiM MORTON RAMON RODRIGUEZ MEMBER MEMBER EXECUTIVE DIRECTOR ROGER L. HALEY RECEIVED AGENCY COUNSEL FRED GALANTE OOt~~~[I~`~C~ ~~~~~v~©G`~9i~~o A. Call VVieeting to Order B. Roll Call (FLORES-i!/dORTON-RODRIGUE~-CASTRO-SAV~TILLAI~) C. Certification of Agenda Posting by Secretary PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS PUBLIC HEARING 1. FY 08/09 LRA Budget Comments: The FY 200$-2009 proposed budget presentation will discuss the FY 2008-2009 budget highlights. The budget process is a challenging time for staff and policy makers. With the increasing expectation for services and limitations on raising revenues, it becomes an on-going challenge to find ways to contain costs and meet the community's needs. Recommendation: Staff recommends that the Lynwood Redevelopment Agency open a public hearing, receive a presentation on the proposed FY 2008-2009 Budget, accept public comments, close the public hearing, and adopt the attached resolution: "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY ADOPTING THE FISCAL YEAR 2008-2009 BUDGET". 2 ~®~~~E~I'v~`~ CG~LE~9®A~ All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items are removed from the consent calendar for separate action. 2. MINUTES OF PREVIOUS MEETINGS Regular Meeting of June 3, 2008 3. RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS. 4. APPROVAL OF THE AFFORDABLE HOUSING AGREEMENT WITH AOF/PACIFIC AFFORDABLE HOUSING CORP., THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY TO LEASE/PURCHASE, REHABILITATE, AND MANAGE THE PROPERTY LOCATED AT 3250 MAGNOLIA AVENUE FOR LOW INCOME HOUSEHOLDS Comments: In July 2007 the City of Lynwood purchased two triplexes located at 3254 Palm and 3250 Magnolia utilizing a combination of HOME funds and 20% Housing set aside funds. By purchasing these properties the City avoided the loss of over a million dollars of HOME funds. On October 19, 2007 the City Council authorized the release of an RFP to find a developer to acquire/release, rehabilitate, and lease/sell 3254 Palm and 3250 Magnolia to low income families. On January 2, 2008 the City authorized staff to negotiate with Habitat for Humanity of Greater Los Angeles regarding 3254 Palm Avenue and AOF/Pacific Affordable Housing Corp. regarding 3250 Magnolia Avenue. Recommendation: Staff recommends the approval of the resolution entitled "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRPERSON TO EXECUTE AN AFFORDABLE HOUSING AGREEMENT WITH THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY, AND AOF/PACIFIC AFFORDABLE HOUSING CORP., FOR THE TO LEASE, REHABILITATE, SALE, AND MANAGEMENT OF THE PROPERTY LOCATED AT 3250 MAGNOLIA FOR LOW INCOME HOUSEHOLDS. Comments: In March 2008 Habitat for Humanity of Greater Los Angeles ("Habitat), a non profit organization submitted a proposal to build homes at 4237 Imperial Highway. Potential alternatives were presented regarding different density mixes on the site. Due to potential risks involved with zone changes, the Agency elected not to seek dense development on the site. Habitat is currently in escrow to purchase 4237 Imperial Highway to build 10 affordable homes on the site. Recommendation: Staff recommends that the Lynwood Redevelopment Agency adopt the attached resolution entitled" A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA AUTHORZING THE USE OF LOW AND MODERATE INCOME HOUSING FUNDS FOR A PROPERTY LOCATED OUTSIDE OF THE REDEVELOPMENT PROJECT AREA "A" AND ALAMEDA PROJECT AREA" And authorize staff to negotiate development costs with Habitat for Humanity of Greater Los Angeles for 4237 Highway CLOSED SESSION 6. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.8 CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) 1. Name of Case: Lynwood Redevelopment Agency vs. Angeles Fields LLC, et al. Case No. BC379877 ADJOURNMENT THE NEXT REGULAR MEETING W1LL BE HELD ON JULY 1, 2008 AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA. aT ~,~ °~ .o ~,, ~~ , ._ __~_ ,; =- DATE: June 17, 2008 T®: Honorable Chairperson and Agency tubers APPR®VED BY: Roger L. Haley, Executive Direct PREPARED BY: Robert Torrez, Assistant City Manager-Finance ~~~ SUBJECT: Adoption of the FY 2008-2009 Bud et g Recommendation: Staff recommends that the Lynwood Redevelopment Agency open a public hearing, receive a presentation on the proposed FY 2008-2009 Budget, accept public comments, close the public hearing, and adopt the attached resolutions: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY ADOPTING THE FISCAL YEAR 2008-2009 BUDGET Background: The FY 2008-09 Proposed Budget presentation will discuss the FY 2008-2009 budget highlights which can also be found in your budget binder distributed with the agendas. Key highlights include reduction of subsidies to the other funds to protect General Fund Reserves. Discussion and Analysis: The citywide expenditure budget totals $82.9 million and is offset by $66.8 million in revenues and $16.1 million in use of available reserves, including bond proceeds for capital projects. The citywide budget includes all funds and programs, such as the LRA, Water utility, Gas Tax, CDBG, Street Light and Landscape Maintenance Districts, and the General Fund. The General Fund expenditure budget totals $30.9 million, and is funded by $27.8 million in revenues and use of $3.1 million of available reserves. The proposed budget maintains services related to quality of life and safety of the community. This budget takes action to protect the General Fund reserves by reducing subsidies to the deficit funds which consist of Traffic Safety, Lighting Maintenance, Street Maintenance, and Self-Insurance. In doing so, these funds that relied on the General Fund for support in prior and current fiscal years may experience shortfalls. Staff is currently assessing the potential impacts to services of these shortfalls. Staff is also proposing fees in Public Works, Development Services, and other user fees to generate additional revenues to offset increasing City costs. M1, a ~:,r_~ ~6~6~~~ ~~~~~~~tia d be r'isca9 impacts ®~ true FY 2008-2009 proposed B~aalget cap Be ~ro~9n~9 i~ the budget presentation and transmit`~al letter of the budget Binder. ~®®~dii~a~e~1 ii~ho All ®epartments A~~achmen~a 1. Resolution adopting Fiscal Year 2008-2009 Budget ~~~o~~~o©~~ ~~oo ~c~~~~ ~®®PTING ~~ FISCAL Y~A~ ~®®~a~®®~ u~~~ HEREAS, the Board of Directors for the Lynwood Redevelopment Agency (LRA) reviewed the Executive Director's Fiscal Year 2008-2009 Proposed Budget for the LRA, attached herein and made a part of this resolution through this reference; and WHEREAS, the LRA published public notices for the June 17, 2008 meeting, and properly noticed a public hearing on the Proposed Budget for the June 17, 2008 regular LRA meeting; and NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE LYNWOOD REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS: Section 1. The Lynwood Redevelopment Agency budget for Fiscal Year 2008-2009 is hereby adopted as presented in the Executive Director's FY 2008- 2009 Proposed Budget. Section 2. The Executive Director or his designee is hereby authorized to approve any transfer between accounts, provided that they are within the same department and the same fund. Section3. This resolution shall go into effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this day of 2008. Maria Teresa Santillan, Chairperson Qu u~~~~o 6Viaria ~uic~one~ Secretary APPR®VE AS T F® ~ppG~o0~1~D ~~ u OO ~rJC~~i ~~~~o Roger L. E~aley Executive ®irector Fred Galante, Agency Counsel ~E~®~MTO~E~9 ~`~®. A RESOL~~TI®~9 ®F THE ~I`~ ~®~NCII~ ®F THf~ CITY ®F LYN ®®® ETA I_ISHII~ °~hIE APPRPRIATI®l~ LI I`P FO FISCAL YEA 2000-2009 PIJRSlJA T T A TICLE XIII F THE CALIF®R IIA COIVSTITIJTION WHEREAS, Article XIIIB of the California Constitution provided that the total annual appropriation subject to limitations of each government entity shall not exceed the appropriation limit of such entity of government, except for prior year adjustments in the cost-of-living or personal income and population, as noted in Article XIIIB and State Statues; and WHEREAS, pursuant to Article XIIIB of the California Constitution, and section 7900 et seq. of the California Government Code, the City of Lynwood is required to set its appropriation limit for each fiscal year by resolution, and approve appropriate inflation and population factors used in calculating limit; and WHEREAS, the total annual appropriation subject to limitation has been computed in accordance with provisions set forth in Article XIIIB, Government Code Section 7900 et seq. and Proposition 111; and WHEREAS, detailed documentation used in calculating limit is available for review on file in the Finance and Administration Department, and a summary is provided in the attached Exhibit A, which is incorporated as a part of this resolution for reference. NOW THEREFORE, the City Council of the City of Lynwood does hereby find, order, and resolve as follows: Section 1. That the City of Lynwood's Appropriation Limit for FY 2008-2009 is X24,049,162 Section 2. That the growth factors used in calculating the FY 2008-2009 Appropriation Limit shall be the percentage change in California per capita income and ,° the percentage change in population in the City of Lynwood. Section 3. The resolution shall take effect immediately upon its adoption. PASSE, APPROVE® AN A®OPTE this day of 2008. IViaria Teresa Santillan, Mayor City of Lynwood ~~u~~~o i~daria Quinonez City ClerFz A~~R®V~® A~ ~® F®R~e Fred Galante City Attorney AR!!E A~ ~® C~`~~NTo Roger L. Haley City Manager [~~~~uo~o~ ~ REVENUE SUMMARY FISCAL YEAR 2008-09 ACCT BUDGET TOTAL NO SOURCE FY 2008-09 NON-TAXES/OTHER TAXES 1011-00-30150 FRANCHISE FEES 1,105,200 1011-00-30160 FRANCHISE TX IN LIEU 0 1,105,200 LICENSES AND PERMITS 1011-00-31105 BUSINESS LICENSE AP 8,000 1011-00-31110 CONSTRUCTION PERMITS 400,000 1011-00-31115 SIGN PERMITS 7,500 1011-00-31120 FENCE PERMITS 8,600 1011-00-33101 REAL PROPERTY REPORT FEES 45,000 1011-00-31125 ANIMAL LICENSE FEES/SURPLUS 29,100 498,200 FINES, FORFEITS AND PENALTIES 1011-00-34101 MUNICIPAL COURT FINES 392,000 1011-00-34105 VEHICLE CODE FINES 150,000 1011-00-34110 ST SWEEPING PARKING FINES 350,000 1011-00-34115 PARKING METER FINES 35,000 1011-00-34125 LAWN PARKING FINES 9,000 1011-00-34135 CODE ENFORCEMENT tNF 2,000 1011-00-34145 CODE ENF-BLDG VIOLAT 40,000 1011-00-34145 LOUD PARTY VIOLATION 0 1011-00-34150 MISC. PARKING FINES 150,000 1,128,000 REVENUE FRM USE OF MONEY/PROP 1011-00-35101 INTEREST SEE INTEREST ALLOCATION 1011-00-35105 RENTAL -NON RECREATIONAL 200,000 1011-00-35115 RENTAL- PARKING LOT 24,000 1011-00-36110 INTEREST INCOME/NON-ALLOC. 46,800 3421-00-351011NTEREST 68 270,868 REVENUE FROM OTHER AGENCIES 1011-00-32110 STATE-MANDATED COST 90,000 1011-00-32175 USDA GRT SPTS/LEIS. 84,000 1011-00-37110 LOAN PROCEEDS-LRA 65,000 4011-00-30544 HAZARD' ELIM. GRT 413,288 Fund 7011 GAS TAX 2107 1,003,657 Fund 2601 SHERIFF DRUG SEIZURE FUND 10,800 Fund 2451 AIR QUALITY IMPROVEMENT FUND 81,100 Fund 4101 PARK REPLACEMENT FUND 17,998 Fund 2551 SB 821 FUND 40,000 Fund 2401 STATE TRANSP PARTNERSHIP PROGRAM 1,250,000 Fund 2901 HUD SECTION 108 LOAN 7,820 Fund 2941 H.U.D FUND 2,488,640 Fund 2961 HUD HOME PROGRAM 1,065,385 Fund 2201 STP FUND 6 779 Fund 3461 GRAFFITI PREVENTION GRANT 0 ~~~~~oC~o~ h~ REVENUE SU11/iNiARY FISCAL YEAR 2003-2009 ACCT BUDGET NO SOURCE FY 2008-2009 Fund 2551 LOCAL LAW ENF BLOCK GRANT 0 Fund 2501 COPS PROGRAM - AB 3229 105,000 Fund 3501 BEVERAGE RECYCLING GRANT 15,000 Fund 3541 1996 LA COUNTY PK & REC ACT 0 Fund 3601 LAC HWY THRU CITIES 0 Fund 3621 USED OIL RECYCLING GRANT 20,000 Fund 72 ROBERTI-ZBERG BOND 2000 0 Fund 73 PER CAPITA BOND ACT 2000 338,410 Fund 3681 TEA GRANT 0 Fund 3761 STATE HOMELAND SECURITY GRANT TOTAL 0 Fund 3781 PROP 40 GRANT 0 Fund 3801 JUSTICE ASSISTANCE PROGAM 60,000 Fund 86 RMC GRANT 0 Fund 7101 INFORMATION SERVICES 0 CHARGES FOR CURRENT SERVICES 1011-00-33110 PLAN CHECK FEES 275,000 1011-00-30602 SPEC. INSPECTION FEE 10,000 1011-00-33120 GENERAL PLAN AMEND 0 1011-00-33125 ZONING & VARIANCE 16,000 1011-00-33130 CONDITIONAL USE PRMT 35,000 1011-00-33135 PARCEL & TRACT MAP 15,000 1011-00-33140 APPEAL PROCESSING 0 1011-00-33145 SITE PLAN REVIEW FEES 25,000 1011-00-33155 LAND USE DETERMINATION 200 1011-00-33165 ENGINEERING INSPECT. 160,000 1011-00-33170 FIRE INSPECTION FEES 380,000 1011-00-33180 REG. SPECIAL EVENTS 2,500 1011-00-33190 ADULT SPORTS FEE 0 1011-00-33195 YOUTH SPORTS FEE 0 1011-00-33201 FIELD RENTAL FEES 4,000 1011-00-33205 PUBLIC BUILDING RENTAL 4,500 1011-00-33210 NATATORIUM FEES 55,000 1011-00-33215 BATEMAN RENTALS 275,000 1011-00-33220 RECREATION FEES 7,500 1011-00-33225 DAY CAMP FEES 43,000 1 01 1-00-33240 WEED ABATEMENT CHRGS 1,000 1011-00-33255 WASTE COLLECTION-REBID 2,066,703 1011-00-33285 CANDIDATE FILING FEES 500 1011-00-36135 SALE OF MAPS, PLANS & PHOTOS 2,500 1011-00-33285 YOUTH CTR SPEC. EVENTS 1,000 1011-00-33315 RACQUETBALL FEES 510 Fund 2051 ST. SWEEPING /IMPROV CHARGES 50,000 TOTAL 7,162,877 L~,~~6f~o~~ REVENUE SUNiMAF:Y FISCAL YEAR 2008-2009 ACCT. BUDGET NO. SOURCE FY 2008-2009 Fund 2651 LIGHTING ASSESSMENT 1,119,576 Fund 3381 BUSINESS IMPROVEMENT DISTRICT 125,000 Fund 2401 PASSENGER FARES/BUS PASS COLLECTIONS 15,000 Fund 2701 LANDSCAPE MAINTENANCE 1,162,597 Fund 2751 IMPACT FEES FUND 177,232 Fund 2801 PUBLIC ART FUND 84,146 Fund 2851 LITTER ABATEMENT PROGRAM 268,000 OTHER REVENUE 1011-00-36999 MISCELLANEOUS REV 105,000 1011-00-33340 ADMIN SUPPORT-WATER 1,118,246 1011-00-33345 ADMIN SUPPORT - LRA 0 1011-00-33350 ADMIN SUPPORT-HUD 0 1011-00-33375 ADM SUPPORT-CAPITAL 0 1011-00-33385 CASH OVER/SHORT -250 1011-00-36155 DAMAGE TO CITY PROPERTY 0 1011-00-33390 ADMIN. SUPPORT-PERS 0 1011-00-33405 PAINT PERMIT 800 1011-00-36175 MISC. DONATIONS 0 1011-00-33415 VEHICLE RELEASE/ADMIN. FEE 119,900 1011-00-33420 RUBBISH ADMIN. FEES 316,983 SUBTOTAL NON-TAXES/OTHER TAXES TAXES: PROPERTY TAXES (GENERAL) 1011-00-30101 CURRENT YEAR SECURED 1,840,000 1011-00-30105 CURRENT YEAR UNSECUR 106,405 1011-00-31110 PRIOR YEARS 0 1011-00-30115 INTEREST & PENALTIES 16,320 1011-00-30120 TAX REDEMPTION 42 ggg 1011-00-30125 PROPERTY TAX IN LIEU 0 1011-00-30130 HOMEOWNER'S EXEMPT. 22,234 1011-00-30135 SUPPLEMENTAL TAXES 284,653 1011-00-30140 IN-LIEU PROPERTY TX/VLF SWAP 5,765,276 PROPERTY TAXES (RETIREMENT) 2011-00-30101 CURRENT YEAR SECURED 2,157,591 2011-00-30105 CURRENT YEAR UNSECUR 78,692 2011-00-30110 PRIOR YEARS 6,684 201-00-30115 INTEREST & PENALTIES 36,514 TOTAL 6,381,464 1,660,679 18,207,288 8,077,887 ~~:C~oC~u'e i'~ ~oEV~f~9UE ~~111fd~/il-lk~Y ~r=1SCAL YE!-\R 2008-2009 I~CC"i' BUDGET ~i OTAL. NO SOURCE FY 2008-2009 2011-00-30120 TAX REDEMPTION 53,487 2011-00-30130 HOMEOWNER'S EXEMPT. 103,773 2011-00-30135 SUPPLEMENTAL TAXES 84,460 2,521,201 OTHER TAXES 1011-00-30145 SALES TAX 2,741,850 1011-00-30155 DOCUMENTARY TRANSFER TAX 102,000 1011-00-31101 BUSINESS LICENSE 450,000 1011-00-30615 UTILITY USER'S TAX 6,306,983 1011-00-30175 SALES TAX-PUBLIC SAFETY 147,900 1011-00-30185 SALES TAX COMP/BACKFILL 912,750 Fund 2301 PROP "A" LOCAL RETURN FUND 1,036,445 Fund 2351 PROP "C" FUND 1,065,000 12,762,928 REVENUE FROM OTHER AGENCIES 1011-00-32101 STATE-MTR VEHICLE 673,100 1011-00-32105 STATE-OFF HWY FEES 0 1011-00-32115 STATE -HIGHWAY RENTAL 2,000 675,100 SUBTOTAL TAXES 24,037,116 TOTAL NON-TAXES 8a TAXES 42,244,404 INTEREST ALLOCATION: INTEREST 200,000 TOTAL NON-TAXES & TAXES & INTEREST 42,444,404 INTEREST DISTRIBUTION (%): NON-PROCEEDS OF TAXES 37.72% 75,439 PROCEEDS OF TAXES 62.28% 124,561 TOTAL 100.00% 200,000 C=T~G~i oG~le aG~pV30o „~~Q~O~~~ ~~~~~~ GcQI~~M~~`~DOO~`~ POPULATIOf~ APPROPRIATIOfLI YEAR CPI ChIAi~GE % " FACTOR LIMI°f'"` FY 1986-87 BASE YEAR 8,490,630 FY 2002-2003 4 91 % 1.63% 1.06620 18,650,087 FY 2003-2004 2.31 % 1.03% 1.03384 19,281,206 FY 2004-2005 3 28% 0 61 % 1.03910 20,035,101 (FY 2004-2005 Recalculated) FY 2005-2006 5.26% 0.31 % 1.05580 21,153, 060 (FY 2005-2006 Recalculated) FY 2006-2007 3.96% 0.35% 1.04320 22,066,872 FY 2007-2008 4.42% 1.20% 1.0567 23,053,261 2008-2009: *Per Capita Cost of Living Change = 4.29 percent *Population Change (Lynwood) = 1.31 percent Per Capita Cost of Living converted to a ra 4.29 + 100 = 1.0429 100 Population converted to a ratio: 1.31 + 100 = 1.0131 100 Calculation of factor for FY 2008-2009: 1.0429 x1.0131 = 1.0566 Calculation of Appropriation Limit $23,053,261 X 1.0432 = $24,049,162 (Prior Year's Appropriation Limit multiply by factor) STATUS OF APPROPRIATION LIMIT FY 2008-2009 Maximum Appropriation Limit 24,049,162 (1) Proceeds of Taxes (less Retirement Taxes + Interest Allocation for Taxes) 21,640,476 Under Maximum Appropriation Limit 2,408,686 Over Maximum Appropriation Limit 0 (1) (+) Proceeds of Taxes 24,037,116 (-) Retirement Taxes 2,521,201 (+) Interest Alloc. on Proceeds of Taxe~ 124,561 Total 21,640,476 Source: State Department of Finance DATE: June 17, 2008 TO: Lynwood Redevelopment Agenc Members APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Maria Quinonez, Secretary SUBJECT: Lynwood Redevelopment Agency Minutes Recommendation: Staff recommends the Lynwood Redevelopment Agency approve following minutes: • Regular Meeting, June 3, 2008 Background: N/A Fiscal Impact: N/A Coordinated With: N/A ~~~~~'~©®o ~~®E~9ELOo p~E~~T ~~E~9CY AEG®~8p9,LAR~pj.VGpEETIN~ C~4~9NE C9y [°®®~ The Lynwood Redevelopment Agency of the City of Lynwood met in a regular meeting in the Council Chambers, 11330 Bullis Road on the above date at 6:20 p.m. Chairman Santillan presiding. Members Castro, Morton, Rodriguez and Santillan were present. Council Member Flores was absent. Also present were Executive Director Haley, Agency Council Galante, Secretary Quinonez and Treasurer Alatorre. Secretary Quinonez announced that the Agenda had been posted in accordance with the Brown Act. SUBSEQUENT NEED ITEM Item #2A AMENDING RESOLUTION NO. 2008.018 After discussion it was moved by Member Morton, seconded by Vice Chair Castro to add this subsequent need item to the Agenda and determine that: 1) This agenda item came to the attention of the Agency after the agenda was posted. 2) This agenda item requires immediate action. This item was voted on in the consent calendar ROLL CALL: AYES: MEMBERS CASTRO, MORTON, RODRIGUEZ AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: FLORES PUBLIC ORAL COMMUNICATIONS (Agenda Items) (None) PUBLIC 012AL COMMUNICATIONS (None) ~®~~E~T C~L~~®~~ All matters listed under the Consent Calendar will be acted upon by one motion af~irming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Agency or staff request specific items to be removed from the consent calendar for separate action. After discussion it was moved by Vice Chair Castro, seconded by Member Rodriguez to approve the minutes and adopt the resolutions. Item #1 MINUTES OF PREVIOUS MEETINGS ^ Special Meeting of April 29, 2008 ^ Regular Meeting of May 20, 2008 Item #2 RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS RESOLUTION NO. 2008.020 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFORE. Item #2A AMENDING RESOLUTION NO. 2008.018 RESOLUTION N0.2008.021 ENTITLED: A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 2008.018 APPROVING A LOAN AGREEMENT IN CONNECTION WITH AN AFFORDABLE HOUSING PROJECT BETWEEN HABITAT FOR HUMANITY OF GREATER LOS ANGELES, THE LYNWOOD REDEVELOPMENT AGENCY AND THE CITY OF LYNWOOD FOR HABITAT TO PURCHASE, REHABILITATE, DEED RESTRICT, AND RESELL 5525 CLARK STREET AND 3076 REDWOOD AVENUE TO LOW INCOME HOUSHOLDS. ROLL CALL: AYES: IVIEiViBERS CASTRO, IViORTON, RO®RIGUE~ AN® SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: FLORES CLOSED SESSION It was moved by Member Rodriguez, seconded by Member Morton, and carried to recess to closed session at 8:24 p.m. Agency reconvened at 9:52 p.m. Agency Council Galante stated that the Council met on the aforementioned matters and with respect to the following: Item #3 With respect to every item of business to be discussed in closed session pursuant to Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS: Property: Redwood Housing Project -North side of Redwood Avenue, between State Street and Peach Street APNs 6171-008-022 6171-008-023 6171-008-024 6171-008-025 6171-008-026 6171-008-027 6171-008-028 6171-008-029 6171-008-030 f-0~gencg~ nego~~u~t©r: ~~o,~~~~r Braley, E~~~~;utive Direc~i®6; fi=red G~I~nde, ~ccJal ~oun~~ei; G~c~yce J®nes, Special Agency C©a~nsei Negotia~i:ing V~ardy: gay Patel Under Negotiation Price and terms No action was taken. 4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN #. 6170-034-024 3187 Norton Avenue, Lynwood CA Agency Negotiator: Roger Haley, Executive Director; Fred Galante, Legal Counsel Negotiating Party: Ofelia & Alfredo Rivera Under Negotiation Price and terms No action was taken. 5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN #6174-008-901 Muriel Drive and Thorson Avenue Agency Negotiator: Roger Haley, Executive Director; Fred Galante, Legal Counsel Negotiating Party: Javier Barajas/JB Construction Under Negotiation: Price and terms No action was taken. 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Atlantic Ave./Carlin Ave. Housing Development Project-Real property on the northwest corner of Atlantic Avenue and Carlin Avenue and identified by Assessor's Parcel Numbers below: ~Pi~s 6186-011-083 6186-012-005 6186-012-023 6186-012-024 6186-012-027 6186-012-032 6186-012-033 6186-012-034 6186-012-037 6186-012-038 6186-012-006 Agency Negotiator: Roger Haley, Executive Director; Fred Galante, Legal Counsel Negotiating Party: Abel Helou Under Negotiation: Price and terms No action was taken. 7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APNs 6170-002-026 6170-002-034 6170-002-035 6170-002-036 6170-002-037 6170-002-038 6170-002-039 6170-002-040 6170-002-043 ~~~e~~c~ i`~eg©~ia~~~~~: V~oaier C 9aley, E~~ecuti~~~ ®i~eceo.~~; i='re~1 C~alan~~e, Legal Counsel h~egotiating Par~~y: 6-lermilio G'ranco Under f~egotiation: Price and terms A discussion was held with Vice Chair Castro abstaining and leaving the Council Chambers. No reportable action was taken. 8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APNs 6177-002-041 6177-002-042 6177-002-021 6177-002-043 6177-002-018 Agency Negotiator: Roger Haley, Executive Director, Fred Galante, Agency Counsel Negotiating Party: Anthony Wright Under Negotiation: Price and terms No reportable action was taken. 9. WITH RESPECT TO EVERY ITEM OF BUSINESS TO BE DISCUSSED IN CLOSED SESSION PURSUANT TO SECTION 54956.8 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) 1. Name of Case: Rogel vs. Lynwood Redevelopment Agency Los Angeles Superior Court Case Number BS106592 No rep® ble acti®n was taken. 2. d`~9ai~e of Case: Lynwood redevelopment Agency vs. Angeles Fields LLC, et al. Case 190. ~C379377 `phis item was not discussed, since a quorum was not attained with the absence of Member I°lores and the abstaining votes of Chair Santillan and Member Rodrigueze ADJOURNMENT Having no further discussion, it was moved by Vice Chair Castro, seconded by Member Rodriguez, and carried to adjourn the regular Lynwood Redevelopment Agency meeting at 9:53 p.m. Maria Santillan, Mayor Maria Quinonez, City Clerk 'p4 LY, C ~z ~~~, DATE: June 17, 2008 TO: Honorable Chairperson and Members of the L nwood Redevelopment Agency APPROVED BY: Roger L. Haley, Executive Directo PREPARED BY: Robert S. Torrez, Assistant City Manager-Finance Monica Castellanos, Accounting Technician SUBJECT: Approval of the Warrant Register Recommendation: Staff respectfully recommends that the Agency Chairperson and Board Members approve the warrant register for Fiscal Year 2007-08. Attached Warrant Register dated June 17, 2008-------------- k~ f6 ~. V C d Q r ++ _ N d J Q. d ~ t ~ V ~ ~ ~ O 3 C J •~ ~ w~a ~•cxr oo® ~~~• o~ 00 00 0® o MM ~ ~ O ® ~ ~ O O ® d' d' t5? I~ f\ ~; O O O ~ O ® ~ Mai ® ~ ~ O ® O O ® ' I~ ~ ei O M e9 O O I~ 1~ E g s 1~ B® lS ) Ll7 ® f` N® Ln Ln M M B® O) d) 69 ~ O O O O n W O O O O M~ M C O ~ as ~- e~8 h 6® M~ &fl ct' M :- N N M r ~ ~ M 6v8 0) R ~ ~ 0 O O ~ ~ ~ ~ _~ Z W 00 (n fn ~ f/1 f/1 f/1 O O ~ C ~ ~ > > > J -J ~/ ~ ~ M N ~ tt7 to W ' to ~ 47 W N d1 ~ ~ O d1 N d) 0.' 2' N v N ~ J O O J ~~ O O a O O W O fn to ~ J O~ J O O J O O O M M M a 0 O n' J Q V ~ Z N Z N ~ ~ ~ ~ ~ ~ ~ N ~ E E O O N N ¢ C O ( O V ( D Z ( D C O Z O Z C C O ~ C C 0 O ~ Z 0 ~ 0 ~ 0 0 0 0 0 O 0 O O ~ `~ ~ 0 0 ~ 0 0 ~ W a 0 W o 0 0 0 ~ 0 0 a o o00 W W W W ~ W ~ W ' ~ o w o W o o w o o W o o W oowoo~o N oUO U ~ W I~ W t` W t` ~ LL n t` ~ t` t` W t\ t` LL ti ~ ~ ~ ¢ h Q t` ~ O ~ N O N ll! Z O N tt7 =~ N ~ ~~ ~ r~ ~ N C7 N C7 N ~ 0 ~ ~ Q. O fl X 0 0 U 0 0 O d d7 d7 Q, ~ d) d~ J O J~ 0.. (fl 0C1 d' ~ O O ~ tl" ~ ~ O O O O O O O O O O O O O O ~ O O O O O O O O O O O O D o 0 0 0 0 d 0 0 0 0 0 0 0 ~. rn 0 rnrn 0 0 m ~ 0 0 rnrn rnrn rn 0 0 0 0 0 o~ rn 0 0 M M N 00 O n ~ ~ 00 V N N 00 ao O ~ ~ ~ ~ M N 000 O ~ r M O d M el• M O O M v O ~ _ N ~ ~ N ~_ O o Z O w o. a Z ~ ~ ~ Z Z } a O z ~ ~ W U W ~ Z H ~ w X ~ Q m 5" ~ M O O ~ ~ M O C d O O O > O O O Q O O N O O ~ O O t`6 Q ~ I~ ~ r ~ _ O ~ O O ~ ~ O O d! v ~ ^ ~ C 3 00 O '~ ` R p M ~ ~ ~ ~ ~ 00 W ~ ® x _U Z W Z w t` N M O O M O O N (O O M M 00 W D W W M M M O O 00 O O N t` O M 00 U Z U w g U O Q U C7 t` N O M O O W O O N t` CO N 00 M OO z Y W 00 w J Q 00 W QZ Y V' M O O M O O N N (D M 00 M 00 w F- U 0 Q Z O Q a w U } W Y O M O O 00 O O N CO d' W M W ~i7 `~ v C7 C7 ® O O ® l() l7 ~ O ® O G7 CO Ce v' V" ~ M M C7 6 O O ® h fa ~ O ® O G7 C9 L~ ~ Cfl R~ f~ ® W W 00 C49 lfl ~ ® r f•`3 O ® f`~ CJ li7 ~ CO t9 ~ ~ M M M ~ M M 6a r gig O ® C9 C9 r ~ ~ Ga 9Pd ~L N N N ha C9 G9 Ci9 r r gig ~ ~P M Gee ~ g~ e43 ~ c 62 CQ ~ R~ ~ fia S! C3 ~. _ .. is c~ ~ ~ ® ® O O ® ~ ~ ~ U ~ ~ } ~ v ~ c 0 ~ w ~ ~ ~ a ~ U o w ~ ~ A V C d •r r ~ N d J C ~ O t V ~ ~ ~ O O C J ~ ~ J u~ rn gn U O u~ ~ ~ ~ ~.._. gn ~ M ga M O al h- I` m V tg'y z r N fn O I~ d' N ~ N~ ~ V V ~ N W '[Y V' la V W (D CO O ~ g0 O CO O fn M ~ O M M ~ ~ Z r ~ J = O O O ~, O O O O Q O (n O O O ~ O a0 00 00 J oD a0 W oO a0 uJ W a0 a0 oD ap O O O X 0 0 X 0 0 Q O Z 0 0 0 ~ O la ti la ~ ti ti Q ~ ~ ~ la J h ~ n ~ la N N N Z N N A N N a N a N N N U N ~c`~o~ O ~a°o v~ o v w v~~ w ti rno>rn U rnrn ¢ rnrn - Q rn ~ rnrnw to rn N N N 0 0 O ~ 0 ( 0 ( ' d- O N O O O O O O O O O O O O O O O O O O O O d~ o~ o~ o~ di o~ 0 0 0 0 o O o N ~ Q ~ U c o N } , c o d. u~ F- U ~ ~ M w r d W H Q U O z O w W Y o ~ a m C i O W w N ®p Q 6i1 g6 ® la ~ ~ ~ d ' ® 8 s O ~ t~! ti S N ~ c ~' a ~ ~ ~ o m ~ S W .~ ® U z vi w Q U O a '7 O O M O O N n O 0 M OD C9 w g J M O O a0 O O N O 0 0 M M U Z N W Q U O U ~ _ Y ~ Q U J Q W a a ~ ~ M O O O O O O N N ~ ~ O O ~ ~ W W N O W W w W d U z ui w U w U d W L cn ~ o Q- o o > O ~ ~ O Q w i C O ~ N y S 1~ O v M ® ~ * M w w M O N W a ~- ~ utiti ty ~, '14 ,~~ l DATE: June 17, 2008 TO: Honorable Chairperson and Members o Agency APPROVED BY: Roger L. Haley, Executive Direct PREPARED BY: Lorry Hempe, Assistant City Mana r Ernie Nishii, Housing Manager SUBJECT: APPROVAL OF THE AFFORDABLE HOUSING AGREEMENT WITH AOF/PACIFIC AFFORDABLE HOUSING CORP., THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY TO LEASE/PURCHASE, REHABILITATE, AND MANAGE THE PROPERTY LOCATED AT 3250 MAGNOLIA AVENUE FOR LOW INCOME HOUSEHOLDS Recommendation: Staff recommends that the Agency approve the attached resolution entitled "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRPERSON TO EXECUTE AN AFFORDABLE HOUSING AGREEMENT WITH THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY, AND AOF/PACIFIC AFFORDABLE HOUSING CORP. FOR THE LEASE, REHABILITATE, SALE, AND MANAGEMENT OF THE PROPERTY LOCATED AT 3250 MAGNOLIA AVENUE FOR LOW INCOME HOUSEHOLDS". Background: On or about July 2007 the City of Lynwood purchased two triplexes located at 3254 Palm and 3250 Magnolia utilizing a combination of HOME funds and 20% Housing set aside funds. By purchasing these properties the City avoided the loss of over a million dollars of HOME funds. On October 16, 2007 the City Council authorized the release of an RFP to find a developer to acquire/lease, rehabilitate, and lease/sell 3254 Palm Avenue and 3250 Magnolia Avenue to low income families. On January 2, 2008 the City authorized staff to negotiate with Habitat for Humanity of Greater Los Angeles regarding 3254 Palm Avenue and with AOF/Pacific Affordable Housing Corp. ("AOF") regarding 3250 Magnolia Avenue. ~~ o~~~~sa ~, ~~ ~, ~r~~1i~~o~: u he Agreemer~f~ negotiated with A®1= will pr®vide AO1= Three ~n©nths ~io rehabilitate and improve The property as set forih in The scope of worR~ and the elevations afiached. AOF will then utilize The waiiing list to find a qualir•ied Tenant to occupy one of the empty units. AOF and its agents will manage the site for up to one year sharing rents with the Agency. After one year, AOF shall acquire the necessary financing to pay the purchase price for the affordable housing project, which has been set based upon analysis of the price for an affordable and deed restricted housing project. Upon completion, this Project should be an excellent asset to the community and immediate surrounding neighborhood. With the improved facades and interior rehabilitation of the units, the Agency and City will be preserving these homes for affordable housing for at least 55 years and enable at least three families to receive much needed help building their family in Lynwood. Fiscal Impact: The fiscal impact of this project on the 20% Housing Set Aside fund is $128,906 for the rehabilitation and improvement of the interior and exterior of the units. HOME 20% set aside Total Ac uisition 497,694 229,862 727,556 Rehabilitation 0 128,906 128,906 Sale Price -184, 680 Total $671,782 Coordinated With: Agency Counsel Public Works Development Services Finance Attachment: Resolution Affordable Housing Agreement Elevations ~~~®~~~o®~~ e~®a WHEREAS, in the month of July 2007 the City of Lynwood purchased two triplexes located at 3254 Palm and 3250 Magnolia utilizing a combination of HOME funds and 20% Housing set aside funds; WHEREAS, by purchasing these properties the City avoided the loss of over a million dollars of HOME funds; WHEREAS, on October 16, 2007 the City Council authorized the issuance of a request for proposals to find a developer to buy or lease, rehabilitate, and maintain the homes located at 3254 Palm and 3250 Magnolia to low income families; WHEREAS, on January 2, 2008, the City Council authorized staff to negotiate and enter into an agreement with Habitat for Humanity of Greater Los Angeles regarding 3254 Palm Avenue and AOF/Pacific Affordable Housing Corp. ("AOF") regarding 3250 Magnolia Avenue; WHEREAS, AOF has the capability to undertake an affordable housing project; WHEREAS, the Lynwood Redevelopment Agency is desirous of entering into an Agreement with AOF and the City of Lynwood consistent with AOF's proposal, but with several changes in the Agency's favor to provide affordable housing opportunities; and NOW, THEREFORE, the Lynwood Redevelopment Agency of the City of Lynwood does hereby find, proclaim, order and resolve as follows: Section 1. The Lynwood Redevelopment Agency hereby finds that the execution of the Affordable Housing Agreement between the Agency, City and AOF relating to the redevelopment of 3250 Magnolia for affordable housing purposes, a copy of which ~is attached hereto and incorporated herein as Exhibit "A" is in the best interest of the Agency, City and the City's residents. Section 2. That the Agency authorizes the appropriation of $128,906 from the Real Estate 20% set aside account number 9752-70-801-6601 to Project Improvements account number 9752-70-801-67915. H \WORDCILE\COMMDEV\Aencyreso-3260magno6a-fina1061705 doc ~~~i~o©r~ ~. The Lynw®r~d C~edeveloprnev~t Agency herel,y a~aAthori~es its Chair~aerson to er@CL~l`e fhe Af~ordalole C-lousing Agreement on behalf of the Agency, sufojec~i ~~o the Agency Counsel's approval as fo form. ~~cfi®n ~. This resolution shall go into effecf immediately upon ifs adoption. PASSED, APPROVED and ADOPTED this 17th day of June 2008. ATTEST: MARIA QUINONEZ SECRETARY APPROVED AS TO FORM FRED GALANTE AGENCY COUNSEL MARIA SANTILLAN, CHAIRPERSON ROGER L. HALEY EXECUTIVE DIRECTOR APPROVED AS TO SUBSTANCE: LORRY HEMPE ASSISTANT CITY MANAGER ~ ! ~ Y ~ R } `~ r ~~ j y ~~ ~ i t w~ r ____ ~ ~; . -\., ,f~ DATE: June 17, 2008 TO: HONORABLE CHAIR AND MEMBERS OF THE AGENCY APPROVED BY: Roger L. Haley, Executive Director PREPARED BY: Lorry Hempe, Assistant City Manager SUBJECT: AUTHORIZE THE NEGOTIATION OF DEVELOPMENT COSTS FOR HABITAT FOR HUMANITY OF GREATER LOS ANGELES TO EXPEND 20% SET ASIDE FUNDS FOR 4237 IMPERIAL HIGHWAY AND A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA AUTHORIZING THE USE OF LOW AND MODERATE INCOME HOUSING FUNDS FOR A PROPERTY LOCATED OUTSIDE OF THE REDEVELOPMENT PROJECT AREA A AND ALAMEDA PROJECT AREA Recommendation: Staff recommends that the Lynwood Redevelopment Agency adopt the attached resolution entitled "A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA AUTHORIZING THE USE OF LOW AND MODERATE INCOME HOUSING FUNDS FORA PROPERTY LOCATED OUTSIDE OF THE REDEVELOPMENT PROJECT AREA A AND ALAMEDA PROJECT AREA" and authorize staff to negotiate development costs with Habitat for Humanity of Greater Los Angeles for 4237 Imperial Highway. Background: 1. Habitat for Humanity of Greater Los Angeles ("Habitat") is a non profit organization that has conducted extensive work in the City of Lynwood and around the world creating ownership housing opportunities. They have been certified with the City of Lynwood as a Community Housing Development Organization and have received HOME Program funds for 3927 Louise ,4267 Fernwood Project, 5525 Clark Avenue and 3076 Redwood Avenue. 2. On or prior to March 4, 2008 Habitat submitted a proposal to build homes at 4237 Imperial Highway, presuming a purchase price of only $800,000. 3. C fir; cs~ ~:(~~~~at G~a~~~~,F~ ~ ~, ~~~0~ i~~~feU~"~i~:~C au~~;~~ruafives wf;~~e l~u~f,se~~uf~~e.~; ~~eg~ati~r~iin~ din7~ereni density b~ia,es ®ra the life. Due to potential risks iv`~volved with gone cha~~ges, fF~e Agency elec~ed not ~a:® seals dense development ode ~~he site. 4. On April 22, 2008 Gold Coast appraisals provided an appraisal of the site indicating a value of $1,036,600. Habitat made an offer for the amount of $1,036,000 which was accepted by the seller. ®iscussion ~ Analysis: HOME Funds Habitat is currently in escrow to purchase 4237 Imperial Highway to build ten (10) affordable homes on the site. Habitat submitted a proposal which incorporates a layered approach to funding and sustainable, community-style housing for the site. Of the total development costs, the City comprises only 56% of the total funding for the project. Thirty four percent of the funds will derive from corporate donations, and about 10% or $350,000 are expected to come in the form of SHOP and AHP grants for the project. The Agreement will provide for the City to invest in the initial purchase price of the property utilizing $947,984 in HOME Program Income funds and the balance of said purchase price to derive from Entitlement funds and CHDO HOME funds. Entitlement funds will also be used to pay for related escrow costs. The development costs to build the project will be borne by the 20% set aside funds. 20 Percent Set Aside Funds Community Redevelopment Law requires that 20 percent of the tax increments allocated to the Agency each year from the project area must be used by the Agency to increase, improve and preserve the supply of affordable housing for persons and families of low or moderate income. Community Redevelopment Law also requires an agency to spend or encumber the 20 percent set aside funds within an allocated time period to assure that agencies make efforts to develop affordable housing. The Agency may spend monies from the housing fund either within or outside the project area, but use outside the project is permitted only if the Agency and legislative body find that this will benefit the project area. Agencies have broad powers in expending monies from the housing fund to assist-low and moderate income housing. For example, agencies are authorized to construct buildings or structures, acquire and rehabilitate buildings, or acquire land. Currently Habitat is acquiring the property at 4237 Imperial Highway with HOME program funds. The City has entered into an agreement with Habitat to purchase the property. Due to the timeliness of the expenditure of HOME funds, staff is currently negotiating developments costs with Habitat for ten (10) affordable units. Staff is requesting the Agency's approval for authorization to negotiate development costs with Habitat for a not to exceed amount of $921,725 utilizing 20% set aside funds. Once the terrrus and costs for development have been negotiated and finalized with C~abifaf, ~faulf will present the agreement fo the Agency for approval at a later date. Sfa~~f will also negotiate with FBabifaf to market, deed restrict, and sell the homes fo qualified low income households for approximately $160,000. When the home is sold to the low income household for $160,000 the Agency will be repaid its funds and can utilize those proceeds on other low income housing opportunities. The Agency will require 45 year restrictive covenants on the home and retain a deed of trust to ensure that the home remains deed restricted for 45 years. The creation of this project will allow the City to come closer to its five year action plan and will provide a credit towards the City's replacement housing goals as identified in the Redevelopment and Housing Implementation Plan. Fiscal Impact: There is no fiscal impact to the General Fund. Staff is authorized to negotiate up to $921,725 for development costs for this project from the 20% set aside Agency funds. Based on a preliminary breakdown of costs presented by Habitat it is anticipated that $751,500 of 20% Set Aside monies will be needed to build ten (10) affordable units in addition to $50,000 of relocation costs for families currently at the duplex on the property. Staff has included a 15% contingency in the amount presented to the agency to allow for room for negotiation and for any costs not included in Habitats preliminary breakdown. Coordinated With: City Manager's Office, Finance & Administration, City Attorney's Office Attachments: 1. Resolution ~~~©~~~lo~~ ~©o A RES®LUTION ®F THE LYNl9V®®® RE®EVEL®I~MENS' s~GENCY ®F I~Y~w®®®, CALIF®RNIA RUTH®RIZING THE USE ®F L®w AN® M®®ERATE INCOME HOUSING FUNDS FOR A PROPERTY LOCATED OUTSIDE OF THE REDEVELOPMENT PROJECT AREA A AND ALAMEDA PROJECT AREA WHEREAS, Section 33334.2(g) of the California Health and Safety Code declares that the Redevelopment Agency may use Low and Moderate Income Housing Funds "inside or outside of the Project Area(s). The Agency may only use these funds outside the Project Area(s) upon a resolution of the Agency and legislative body that the use (of these funds) will be of benefit to the project area"; and WHEREAS, the use of the low and moderate income housing funds for the 4237 Imperial Highway Project will be of benefit to the project area by creating housing restricted to low and moderate income households; and WHEREAS, Section 33334.2(a) of the California Health and Safety Code declares that Low and Moderate Income Funds shall be used by the Redevelopment Agency for the purpose of increasing, improving, and preserving the community's supply of low and moderate housing available at affordable housing costs to persons and families of low and moderate income; and WHEREAS, the Redevelopment Project Area A does not have extensive property zoned as residential within Project Area A as Project Area A lines the major thoroughfares of the City of Lynwood including Atlantic Blvd., Alameda Blvd., Long Beach Blvd, Imperial Highway, and Martin Luther King Blvd.; and WHEREAS, there is no property within the Alameda Project Area which is zoned or slated for residential development as it is primarily an active industrial and commercial area; and WHEREAS, Section 4.6 of the Third Five Year Redevelopment and Housing Implementation Plan for Project Area A and Alameda (hereinafter "Five Year Implementation Plan") approved in 2004 states that the Agency intends to "provide assistance for the construction of public improvements necessary for the development of new single family housing within and outside the project area." WHEREAS, Section 4.6 of the Five Year Implementation Plan states that the "Agency will assist with the construction of infill housing both within and outside the Project Area which will be of benefit to the Project Area"; and WHEREAS, Section 5.3(1) of the Five Year Implementation Plan requires that "Agency housing should benefit the Project Area and other City neighborhoods outside the Project Area"; and WI-IEC~EAS, Goal 2 ~~i the Cive ~~ar Ir~i~d~Ie~~enfatian E~lar~ states than tE~~c AcJency ed~deavors to "impu~®ve the housing duality of the ez~isting I~uousir~g st©e~@s Through housing rehabilitation assistance and enforcement procedures"; and WHEREAS, the 4237 Imperial Highway Project located on Imperial Highway, consists of developing of ten (10) units which will be restricted for use to low income households; and WHEREAS, the 4237 Imperial Highway Project is located adjacent to the Project Area A; NOW, THEREFORE, the Lynwood Redevelopment Agency of the City of Lynwood does hereby find, proclaim, order and resolve as follows: Section 1. The Lynwood Redevelopment Agency hereby finds and declares that the expenditure of the Low and Moderate Income Housing funds for housing projects, rehabilitation loans or grants outside of the Project Areas, and in particular, the specific 4237 Imperial Highway Project, will be of benefit to the Project Area A and to the Alameda Project area as the 4237 Imperial Project is in close proximity to both the Alameda Project Area and Project Area A (collectively "Project Areas"). Section 2. The expenditure of Low and Moderate Income Housing funds outside Project Area A and Alameda Project Area for 4237 Imperial Highway Project will provide low and moderate income residents within Project Area A and Alameda Project Area reasonable and affordable housing and will be of benefit to the Project Areas. Section 3. The Lynwood Redevelopment Agency hereby authorizes staff to negotiate the development costs with Habitat for Humanity of Greater Los Angeles for 4237 Imperial Highway up to a not to exceed amount of $921,725 utilizing 20% set aside funds and authorize staff to use 20% set aside funds to pay for related relocation cost. Section 4 . This resolution shall go into effect immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this 17th day of June, 2008. Maria T. Santillan, Chairperson ATTEST: Maria Ouinonez, Secretary Roger L. Haley, Executive Director A~FR®~~® A~ T® F®~6l~d A~~l~®~E® A~ T® C®I~T~G~~: Fred Galante, Agency Counsel Lorry Hempe, Assistant City iVlanager