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Report to Agency Board Replacement Housing Plan Page 2 of 4 Replacement Housing Plan Requirement Section 33413.5 of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.) requires the Agency to adopt by resolution a replacement housing plan not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low -and moderate -income housing market, the agency shall adopt by resolution a replacement housing plan. To ensure compliance with Section 33413.5 of the California Community Redevelopment Law, the Agency is completing the Replacement Housing Plan at this time in anticipation of final settlement with Colton Non -Profit. DISCUSSION/ANALYSIS Should a Settlement Agreement be approved by the City, Agency and Colton Non -Profit that may lead to the removal of low -moderate income housing units from the housing stock, the Agency must adopt a Replacement Housing Plan at least 30 days prior to the date such an agreement is executed. Exhibit "A" to Agency Resolution No. 849, Attachment A to this report, is the Replacement Housing Plan for Colton Palms and includes the following: Colton Palms has 101 units: 98 1 -bedroom units and 3 2 -bedroom units, for a total of 104 bedrooms to be replaced. The Agency assumes for purposes of this Plan that 50 occupants are persons or families of very low income and 51 occupants are persons of low income, but actual incomes of persons or families affected will be verified upon final receipt of income information as part of any approved Settlement Agreement. The Agency is currently assembling seven properties at the Northwest corner of Mt. Vernon and Colton Avenues. Currently, the Agency and City own 1.47 acres in fee, are in escrow to acquire .57 acres and are tenants in common with private land owners for .50 acres. The Agency is also attempting to acquire a .35 acre parcel that is held solely by a private party. The property is immediately adjacent to a neighborhood shopping center which includes a grocery store. Public transportation is also within close proximity of the site. The Agency initiated discussions with Housing Partners, I, Inc. (a non-profit arm of the San Bernardino County Housing Authority) to cooperate in the development of an affordable housing project that will serve as replacement housing for any units that may be removed from the housing stock as part of a Settlement Agreement between Colton Non -Profit and the Agency. If agreement is reached, Housing Partners I, Inc. would construct, own and manage the proposed replacement housing project. Coincidentally, the Housing Authority owns the senior housing complex located immediately to the west of the parcels the Agency is assembling. The existing senior housing project is one of the Housing Authority's high priority projects in need of major rehabilitation. Preliminary discussions have included several alternatives to address the needs of the existing senior housing project and development of the proposed project. Plans for the Bike Path have also been modified to complement the proposed housing project and to provide pedestrian linkages to the Hutton Center. Construction is expected to begin in the spring on an 8 -foot -wide bike lane that would run along an abandoned rail line from Colton to San Bernardino. The 2.3 -mile project will start R:\Administration\Meetings\2005 MEETINGS\December 20, 2005\Replacement Housing Plan Staff Report Delmar rev 121505.doc