CRENSHAW & AMENDED CRENSHAW REDEVELOPMENT PROJECTS

Transcription

1 THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA CRENSHAW & AMENDED CRENSHAW REDEVELOPMENT PROJECTS 5-YEAR IMPLEMENTATION PLAN FY FY2009 REQUIRED BY HEALTH AND SAFETY CODE SECTION ADOPTED: April 26, 2007 X3

2 TABLE OF CONTENTS SUBJECT PAGE I. INTRODUCTION 3 II. REDEVELOPMENT PROJECT AREA INFORMATION 5 A. Project Area Context and Background B. Identification of Conditions at Time of Adoption of Redevelopment Plan C. Agency s Goals and Objectives for the Redevelopment Project Area III. PROJECT AREA ACCOMPLISHMENTS DURING PREVIOUS 5 YEAR PERIOD 8 A. Agency Accomplishments/Estimate of Permanent Construction Jobs B. Other Developments in the Project Area IV. ACTIVITY REPORT ON THE NEXT 5 YEAR PERIOD 11 A. Economic Development Programs/Projects B. Affordable Housing Programs/Projects C. Public Improvements Programs/Projects D. Mixed Use Development Projects E. Community Development Programs/Projects F. Community Participation Programs G. Other Work Program H. Project General I. Debt and Financing V. AFFORDABLE HOUSING PROGRAM 15 A. Implementation Plan Requirements B. Historical Affordable Housing Activities C. Housing Goals and Objectives of Implementation Plan D. Applicable Low and Moderate Income Housing Requirements E. Use of Low and Moderate Income Housing Fund F. Agency Compliance by End of Effectiveness of Plan VI. NEXT STEPS 28 VII. EXHIBIT A MAP OF PROJECT AREA 29 IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 2 of 29

3 I. INTRODUCTION In 1994, California Redevelopment Law was amended to require that 5-Year Implementation Plans be adopted for each redevelopment project. The first 5-year plan for redevelopment plans adopted prior to December 31, 1993 were required to be adopted before December 31, 1994, and then every five years thereafter, until the end of effectiveness of the redevelopment plan. Plans adopted on or after January 1, 1994 were required to have a 5-Year Implementation Plan included in the Final Report to the City Council for the adoption. Subsequent 5-Year plans for these projects follow a separate five-year schedule, keyed to the project s adoption date, until the end of the 30-year effectiveness of the Redevelopment Plan. This Five Year Implementation Plan covers both the original Crenshaw and Amended Crenshaw Projects. The law also requires progress public hearings to be held on the 5-Year plan between the second and third year after adoption of each plan. At the progress point, an agency can adjust the projections made in the plan to account for variations from the plan for any reason. A key portion of the 5-Year Implementation Plan is the accounting of expenditures of the 20% of Gross Tax Increment Funds which are to be deposited into a project s Low and Moderate Income Housing Fund, and an accounting of the construction or rehabilitation of units affordable to very low-income, low-income and moderate income persons, families and households. The Law requires that each Project Area provide affordable housing units in proportion to the needs of the community, as determined by the Housing Element of the General Plan. By further amendment in 2002, California Redevelopment Law required that along with the 5-Year Implementation Plan, each agency must include a 10-year progress report to be aligned with the first 10-years of the implementation plan cycle, as well as projections for the next 10 years and for the remaining life of the project. Thus, over the 30-year life of a redevelopment project, six 5-year plans would be adopted, with two 10-year projections, and one remaining life projection, at the first 10-year point. And, at the 10, 20 and 30 year anniversaries, an accounting of the previous implementation efforts would be accomplished. Redevelopment projects within 6 years of the end of effectiveness must provide additional information on the provision of affordable housing. Furthermore, the law prohibits the adoption of resolutions and ordinances terminating a redevelopment plan by an agency and city council, respectively, if the implementation plan at the 30-year point does not show that the affordable housing requirements have been met. The requirements and structure of the Implementation Plan are set forth in Health & Safety Code Section This Implementation Plan addresses the requirements of California Redevelopment Law for the next 5 years, to date, over the previous Report period, for the next 10 years and for the effective life of the Redevelopment Plan. The IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 3 of 29

4 effectiveness of the Crenshaw and Amended Crenshaw Redevelopment Plans ends on May 9, IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 4 of 29

5 II. REDEVELOPMENT PROJECT AREA INFORMATION A. PROJECT AREA CONTEXT AND BACKGROUND The original Crenshaw Redevelopment Plan (54 acres) was adopted by the Los Angeles City Council on May 9, 1984, for the purpose of redeveloping the former Crenshaw Shopping Center. The newly renovated Baldwin Hills Crenshaw Plaza opened in November of 1988 and now contains one million square feet. The Magic Johnson Theater complex and its associated parking structure were later added to the center and completed in Since that time, three additional screens were added to the theater complex in 1998 bringing the number of screens to 15. The Amendment to the Crenshaw Redevelopment Project adopted on December 6, 1994, added approximately 150 acres to the original Project Area. The 204-acre Amended Crenshaw Redevelopment Project is located approximately 8 miles south of downtown Los Angeles, midway between the San Diego (I-405) and Harbor (I-110) Freeways, and south of the Santa Monica Freeway (I-10) in South Los Angeles. The Project Area extends generally along Crenshaw Boulevard, between Coliseum Street to the north and 52 nd Street to the south. The Project Area also extends along Martin Luther King Jr. Boulevard between Coliseum Street to the northwest and McClung Drive to the east. The Area includes parts of Buckingham Road and Santa Rosalia Drive adjacent to the Baldwin Hills Crenshaw Plaza, and the Santa Barbara Plaza site. The Project Area also includes the Leimert Park Village area between Leimert Boulevard to the east, Vernon Avenue to the south, Crenshaw Boulevard to the west and 43 rd Street to the north, as shown on the map attached as Exhibit A. The Amended Project Area was adopted on December 6, The Project Area contains notable community facilities such as the Baldwin Hills Crenshaw Shopping Plaza, the Magic Johnson Theater complex, the Santa Barbara Plaza, and a unique cultural and ethnic center known as the Leimert Park Village. The original 54-acre Crenshaw Redevelopment Project was adopted on May 9, B. IDENTIFICATION OF CONDITIONS AT THE TIME OF ADOPTION OF THE REDEVELOPMENT PLAN The following summarizes the conditions in the Project Area at the time the Redevelopment Plan was adopted in 1984: The former Crenshaw Shopping Center was built in 1947 and was showing significant signs of deterioration. The center consisted of 23 interconnected buildings and 13 freestanding structures, containing 860,000 gross square feet. The buildings were obsolete, under-utilized and in need of repair. Two major department stores, The Broadway (later Macy s) and May Company (now Robinsons-May) were the major anchor department stores. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 5 of 29

6 Public improvements, including a substandard and outdated circulation system, were inadequate. The civil disturbance of April 1992 caused damage to 19 properties in the Expansion Project Area and emphasized a need for assistance. Of the 250 buildings in the expansion area, 58 (23%) had significant vacancies. Many parcels were small and irregular. Many buildings were obsolete, underutilized and in need of repair. The Santa Barbara Plaza shopping center was in a state of disrepair, economic and physical decline and accompanying deterioration. Crime was a major factor in the center. Public improvements, including a substandard and outdated circulation system, were inadequate. These conditions led to the adoption of the Amended Crenshaw Redevelopment Project in C. AGENCY S GOALS AND OBJECTIVES FOR THE REDEVELOPMENT PROJECT AREA Among the overall goals of the Redevelopment Plan for the project are: To eliminate and prevent the spread of blight and deterioration and to conserve, rehabilitate and redevelop the Baldwin Hills Crenshaw Plaza (former ly the Crenshaw Shopping Center), as well as the Amended Project Area in accord with the City s General Plan, specific plans, the Amended Redevelopment Plan and local codes and ordinances. To encourage the investment of the private sector in the development and redevelopment of the Amended Project Area by eliminating impediments to such development. a. Provide additional commercial, office and retain development in the Santa Barbara Plaza center that complements, not competes with, the Baldwin Hills Crenshaw Plaza. b. Every effort shall be made to promote growth and development of businesses and owners to retain existing tenants. c. To the greatest extent possible, Crenshaw community-based development and construction contractor firms should be employed in the Amended Project Area. To enhance shopping opportunities for the area residents. Build local consumer loyalty, reverse the persistent dollar flight trend by emphasizing strong marketing and customer service and by providing high quality merchandise and service. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 6 of 29

7 To achieve an environment that reflects a high level of concern for architectural, landscape and urban design principles that meet the objectives of the Crenshaw and Amended Crenshaw Redevelopment Plans. To promote the physical, social and economic well being of the Amended Project Area, the City of Los Angeles and its residents. a. Preserve the Amended Project Area s existing employment base. b. Encourage job training and the development of local job opportunities. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 7 of 29

8 III. PROJECT AREA ACCOMPLISHMENTS DURING PREVIOUS 5-YEAR PERIOD A. AGENCY ACCOMPLISHMENTS (FY2000-FY2004) The following describes the Agency s commercial and residential accomplishments during the previous Implementation Plan period. Non-Housing Accomplishments: The previous Five Year Implementation Plan proposed furthering the development of Santa Barbara Plaza, providing commercial area improvements through commercial façade and streetscape improvements and allowing the accumulation of housing funds into a significant amount to create our affordable housing program to accomplish these programs over the five-year period. The Project Area emphasis has been on the construction of the various aspects for the development of Santa Barbara Plaza, continuation with the Leimert Park Village commercial façade and signage programs, which resulted with the completion of 26 building facades, in addition to new sidewalk/pedestrian area improvements and landscaping, the monitoring of the addition of Walmart in the Baldwin Hills Crenshaw Plaza, and numerous project reviews and agreement preparations for various residential and commercial projects within the Project Areas. The Agency funded and completed approximately 26 commercial façades for existing Leimert Park Village businesses, as indicated below: Location Use 4317 Degnan Blvd. (1) Commercial 4319 Degnan Blvd. (1) Commercial 4321 Degnan Blvd. (1) Commercial 4325 Degnan Blvd. (1) Commercial 4339 Degnan Blvd. (1) Commercial 4327 Degnan Blvd. (1) Commercial 4331 Degnan Blvd. (1) Commercial 4331 Leimert Blvd. (1) Commercial /4 Leimert Blvd. (2) Commercial West 43 rd Street. (4) Commercial West 43 rd Street. (5) Commercial 3411½ West 43 rd Street. (2) Commercial Degnan Blvd. (5) Commercial The following estimates the number of jobs created from the Agency s nonhousing accomplishments: IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 8 of 29

9 Number of Facades Permanent Jobs Construction Jobs 26 NA 5 1 Affordable Housing Accomplishments: The previous Five Year Implementation Plan did not anticipate or provide any specific Agency-funded housing project, but rather anticipated providing technical assistance to potential affordable housing projects. The amounts of remaining tax increment Low and Moderate Income Housing Funds (LMIHF) available through the previous five-year implementation plan period was limited and insufficient to generate a meaningful affordable housing program. These funds, however, had been accumulating during the previous Five Year Implementation Plan period. The Crenshaw and Amended Crenshaw housing funds continue into the current Five Year Implementation Plan Period. While no Agency LMIHF moneys were utilized to assist units affordable to, and occupied by, extremely low income households, very low-income households, and low-income households over the past 5 years within the Crenshaw Project Areas, the Agency was involved in the planning and implementation of the 180-unit Buckingham Place senior housing development, which is part of the Marlton Square mixed-use development, located within Santa Barbara Plaza in the Amended Crenshaw Project Area. Buckingham Place is to be completed within the implementation plan period. B. OTHER DEVELOPMENTS IN THE PROJECT AREA (FY2000 FY2004) During the FY 2000 FY 2004 period, the following residential projects were completed within the Project Area without any Agency assistance: Project Name Residential Units Project Type Affordability Restrictions The Promenade 102 Ownership 100% Market Rate Bedford Parc 70 Ownership 100% Market Rate 5020 Crenshaw Blvd 4 Rental 100% Moderate Income 5014 Crenshaw Blvd 3 Rental 100% Moderate Income Total Units 179 In addition, there were seven non-residential developments within the Project Area during the previous Implementation Plan period, including the following: 1 Based on a $1.0 million construction cost and a factor of per/$ million. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 9 of 29

10 Location Use 3825 Crenshaw & Coliseum 20k sf Retail Center Commercial 3801 Stocker Street 20,000 sf Medical Facility Commercial (Restoration) 3801 Public Improvements Commercial 3821 Crenshaw Retail Center 25,000 sf Commercial Crenshaw El Polo Loco Commercial 3781 Crenshaw Commercial Vernon & Crenshaw Starbucks Retail Center Commercial IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 10 of 29

11 IV. ACTIVITY REPORT ON THE NEXT 5-YEAR PERIOD ( ) Specific Agency Programs, including potential projects, and estimated proposed expenditures proposed to be made during the next 5 years, and an explanation of how the goals and objectives, programs and expenditures will eliminate and prevent the recurrence of blight in the Redevelopment Project Area. PROGRAM AND PROJECT DESCRIPTIONS A. Economic Development Programs/Projects 1. Marlton Square 120,000 sf retail ($221,000): A major mixed-use development (CR2140) with a proposed retail shopping center of approximately 119,000 square feet, including anchor tenants, retail tenants and restaurants, public improvements for the site as well as public parking. In addition, the development proposes to have a Single Family Residential and Condominium Residential component. Phase 1 of Marlton Square has started (FY03) with Buckingham Place Senior Housing (CR1050). Phase 2 (single-family homes), Phase 3 (condominiums) and Phase 4 (retail shops) are the focus of this objective and are expected to begin construction in FY08 and FY09, during this 5-year period. 2. Leimert Park Village Study of publicly-owned parking areas ($20,000, labor only): Leimert Park Village Principles for Design, Development and Market Feasibility Study (previously the Master Plan and Market Feasibility Study for Leimert Park Village), created by an Agency consultant team, to determine the appropriate growth of the Leimert Park Village activity center. The study focuses on those unique cultural area characteristics, such as the existing Vision Theater and open space, exhibit space, performing arts and other viable and desirable uses. The study will also examine the future development of underutilized uses into assets that will enhance and provide an emphasis on the area s regional attractiveness. The financial feasibility of future development/improvements in the area will also play a key role in establishing the Leimert Park Village Principles. 3. Baldwin Hills Crenshaw Plaza ($25,000, labor only): Assisting the centers new ownership (Capri Capital in FY06) and any proposed improvements and Estimated Expenditure 2 $221,000 $20,000 $25,000 2 Estimates based on historical and projected expenses over 5-Year Plan period IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 11 of 29

12 renovations. The new owners anticipate Agency s approval and assistance with bond financing. Also ongoing monitoring of mall operations and maintenance, and future retail opportunities in the Project Area. The Agency will continue to monitor the Baldwin Hills Crenshaw Plaza and oversee the installation of proposed retail establishments, as well as the mall finances as needed. This on-going objective is to protect the City s investment in the Baldwin Hills Crenshaw Plaza and it s changing but on-going relationship with the mall owner. Work with mall owner to improve the Robinson-May facilities. B. Affordable Housing Programs/Projects 1. Buckingham Place units Senior Housing ($66,000 labor only): Senior Housing development of 180 affordable housing units as Phase I of the Marlton Square mixed-use development at Santa Barbara Plaza. Agency staff will monitor the projects construction and compliance requirements. Staff will also oversee relocation efforts by the Developer. 2. Affordable Housing Program ($611,700) - to be implemented to provide approximately 11 residential units during this period, after sufficient LMIHF funds are accumulated: The New Housing Initiatives objective is used to accumulate housing funds until sufficient funds are available to establish this affordable housing program. 3. Vermont Seniors 140 unit senior housing project ($795,000): In FY 06, LMIHF funds were provided for the 140-unit affordable seniors housing development located in the Hoover Expansion Project Area. At that time, the Crenshaw Project Area did not have an affordable housing program established and there was no immediate need for use of the LMIHF funds. There was, however, an immediate need for additional funding for the Vermont Seniors project, which is another South LA Region affordable housing development. Therefore the funds were provided to assist the Agency s funding needs for the affordable housing development. $66,000 $611,700 $795,000 C. Public Improvement Programs/Projects 1. Public Improvements: area wide (labor only). $13,000 D. Mixed Use Development Projects 1. Marlton Square Residential w Retail (see A. above) (see A above) IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 12 of 29

13 140 units Single Family Homes 150 units Condominiums 120,000 sf Retail Development E. Community Development Programs/Projects 1. Response to Development Opportunities: Review of commercial, mixed use and housing development proposals, review of building permit applications and CEQA reviews. Agency staff needs to respond to requests for CEQA reviews, permit applications and developer proposals on an ongoing basis. This objective provides development proposal review and assistance. This is an on-going effort. $684, Enhancement of economic development opportunities near area attractions, such as the Vision Theater, Leimert Village merchants, the Leimert Village Farmer s Market, and other area attractions that can promote the area s economic vitality. The potential of a new City library branch within Leimert Park Village could also serve as not only a needed educational and cultural resource, but also a significant area attraction. F. Community Participation Programs 1. CAC/Citizen Participation: These costs are related to the allocation of resources and staffing necessary for the operation of the Crenshaw Citizens Advisory Committee. Agency support includes providing secretarial support, mass mailings public notices, materials, holding annual elections and staff support for the CAC, CAC meetings and its sub-committees. $81,000 G. Other Work Program 1. AB 1290: Per California State Legislation, all redevelopment Project Areas created on or after January 1, 1994, as well as those Project Areas amended after that date, are subject to provisions of Assembly Bill The legislation provides a tax sharing mechanism for those taxing entities eligible to share in Agency tax increment generated by individual Project Areas. One of the taxing entities is the City of Los Angeles. $102,000 H. Project General 1. Project General: This objective provides for miscellaneous technical, legal and administrative services for the operation of the site office and for the $750,000 IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 13 of 29

14 implementation of the Redevelopment Plan. Agency support includes providing secretarial support, mass mailing public notices, materials, holding annual elections and staff support for the CAC and its subcommittees. This is an on-going, required administrative objective. I. Debt and Financing 1. Project Area Financing : This objective provides for the administration of the project s financial resources including short and long term financial planning, issuance, administration and repayment of debt, analysis of financial alternatives and cash management. This objective is on going. 2. Debt Service : Same as above. $34,000 $1,815,000 IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 14 of 29

15 V. AFFORDABLE HOUSING PROGRAM A. IMPLEMENTATION PLAN REQUIREMENTS This section of the Implementation Plan presents those components of the Agency s intended program for the Project Area that deal with the expenditure of funds and activities relating to the production of housing affordable to persons and families of low and moderate income. Low and moderate income is defined in the California Redevelopment Law (CRL) and is set annually by the California Housing and Community Development Department (HCD). The income levels are published annually by HCD, and are defined as follows: Income Category % of Median Income Range for Applicable Household Size Section 3 Moderate 80% to 120% Low 50% to 80% Very-Low Less than 50% The CRL provides that, in addition to the removal of blight, a fundamental purpose of redevelopment is to expand the supply of low and moderate income housing (Section 33071). To accomplish this purpose, the CRL contains numerous provisions to guide redevelopment agency activities with regard to low and moderate-income housing. This section of the Implementation Plan addresses how the Agency s plans for the Project Area will achieve many of the housing responsibilities contained in the CRL. Section requires that the housing component of the Implementation Plan address the applicable items presented in the list below. 1. Production of Housing Based on Activities in the Project Area a. At least 30% of all new and substantially rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low and moderate income and shall be occupied by these persons and families (Section 33413(b)(1)); b. At least 15% of all new residential dwelling units developed within a Project Area under the jurisdiction of an agency by public or private entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons or families (Section 33413(b)(2); c. At least 15% of all substantially rehabilitated units that have received agency assistance shall be available at affordable housing cost to persons and families of low or moderate income and shall be occupied by these persons or families (Section 33413(b)(2)(iii); and 3 All referenced sections are found in the California Health and Safety Code. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 15 of 29

16 d. Suitable locations must be identified for replacement housing units rehabilitated, developed or constructed pursuant to Section 33413(a), if the destruction or removal of low-mod units will result from a project contained in the Implementation Plan (Section 33490(a)(3)). 2. Set-Aside and Expenditure of Tax Increment for Housing Purposes a. The Set-Aside of 20% of tax increment in projects adopted on or after January 1, 1977 (Section ); and b. The proportional expenditure of housing funds on low and very-low income housing (Section ). Section also requires: Estimates of the balances and deposits into the Housing Fund created to hold the Set-Aside of tax increment; A housing program identifying anticipated expenditures from the Housing Fund; An indication of housing activity that has occurred in the Project Area; and Estimates of housing units that will be produced for each of the various income categories. All of the information required by Section is provided in the following sections of this Implementation Plan. 4 B. HISTORICAL AFFORDABLE HOUSING ACTIVITIES The Crenshaw Project Area was adopted in 1984 and being predominately a commercial area, no residential activity has occurred in this area of the Project Area. The Project Area was amended in 1994 and the expansion area includes residentially zoned parcels. Between 1994 and 2004, the Agency did not complete projects or fund programs for providing affordable housing units within the Project Area. C. HOUSING GOALS AND OBJECTIVES OF IMPLEMENTATION PLAN The primary goal of the Agency is to comply with the affordable housing requirements imposed by the CRL in a responsible manner. The CRL establishes that certain housing requirements be attained during five and 10-year increments; and over the remaining Project life. Specifically, the inclusionary housing production requirement 4 It should be noted that Section does not apply, as the Project Area has not been amended under the provisions of SB 211, which allows a 10-year extension of effectiveness upon making findings of significant remaining blight in the Project Area. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 16 of 29

17 must be met every 10 years, and over the life of the Project Area. Comparatively, the proportionality tests must be achieved between January 1, 2002 and December 31, 2014, and then again in 10-year increments throughout the Project Area life. It is the Agency s goal and objective for this Implementation Plan to accomplish sufficient activity and expenditures to comply with the applicable requirements. The following section will discuss housing activities planned for the Five-Year Implementation Plan period. 1. Housing Fund Resources The following presents the estimated Housing Fund cash flow for the first five years of this Implementation Plan. The estimated deposits are based on a tax increment projection prepared by Katz Hollis along with other sources of revenues identified by Agency staff. The Set-Aside revenue includes the following: a. Twenty percent (20%) of the estimated gross tax increment for the Project Area; b. Sale of land owned by the Agency; c. Residual receipt revenue to the Agency; d. Loan repayments to the Agency; e. Future bond proceeds; f. Cash reserves from previous fiscal years, and g. Interest Income The total projected revenues that will be deposited into the Housing Fund during the Implementation Plan period is as follows: FY Implementation Plan FY Period Beginning Balance $857,000 Property Tax Increment 5 979,000 Sale of Land 0 Interest Income 77,000 Loan Repayments 0 Bond Proceeds 6 0 Total Projected Revenues $1,913, The Housing Program and Housing Fund Expenditures The expenditures can be broken into four categories as described below: a. Projects 5 Housing Trust Funds deposits from Tax Increment 6 Housing Trust Funds from Bond proceeds IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 17 of 29

18 Over the FY2005-FY2009 five-year Implementation Plan period, the Agency will work to implement projects to provide affordable housing opportunities within and outside the Project Area using LMIHF. The 140 unit Vermont Seniors rental project, built within the Hoover Project Area was assisted with $795,000 from this Project Area s LMIHF money FY An additional 11 units are expected to be developed within the Project Area through the Affordable Housing Program. b. Programs The Agency plans to expend $612,000 on the Affordable Housing Program, which will provide approximately 11 affordable units by FY c. Administration Administration includes costs for professional services and other administrative costs incurred in the course of operating the housing activities of the Project Area. This category is used for general administration costs not associated with any specific project or program, such as annual audits and legal services. Project-specific administrative costs are included within the budget of each project or program. Amounts allocated to this category in the expenditure plan are based on tax increment, bond proceeds, and Agency discretionary resources. The Agency estimates the total administration expenses for the Implementation Plan period to total $376,000. d. Bond Debt Service The Agency has not issued any tax allocation bonds associated with the LMIHF and there are no plans to do so during the Implementation Plan period. Therefore, no principal or interest payments are expected to be made by the Project Area. e. The following summarizes the total projected expenditures of Housing Fund revenues during the Implementation Plan period: Implementation Plan FY Period Projects $795,000 Programs 612,000 Administration 376,000 Debt Service 0 Total Expenditures $1,783, Summary of Planned Housing Activity 7 No LMIHF were used. HOME funds were expended. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 18 of 29

19 FY2005 FY2006 FY2007 FY2008 FY2009 Starting Balance $857,000 $976,000 $147,000 $294,000 $516,000 Amount to be $197,000 $160,000 $235,000 $230,000 $234,000 Deposited Estimate of Expenditures $78,000 $989,000 8 $88,000 $8,000 $620,000 Ending Balance $976,000 $147,000 $294,000 $516,000 $130,000 The table above provides the starting balance, expected deposits and expenditures of LMIHF over each of the next five years. The table below is the proposed affordable housing program for the Project Area, with estimates of numbers of units and proposed LMIHF expenditures over each of the next 5 years, by unit type. FY2005 FY2006 FY2007 FY2008 FY2009 New Units # Proposed LMIHF $0 $795,000 $0 $0 $0 Expenditure Rehabilitated Units # Proposed $0 $0 $0 $0 $612,000 LMIHF Expenditure Price Restricted Units # Proposed LMIHF $0 $0 $0 $0 $0 Expenditure Total Unit # Total Proposed LMIHF Expenditures 13 $0 $795,000 $0 $0 $612,000 8 Includes funds loaned to Hoover Expansion for affordable Vermont Seniors housing development. 9 LMIHF subsidy, not including administrative costs. 10 Assumes a housing rehabilitation program. 11 Buckingham Place senior Marlton Square. No LMIHF money was used. 12 Agency provided LMIHF affordable housing program units 13 Includes project and program costs only. 14 Includes Project and Program costs only. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 19 of 29

20 D. APPLICABLE LOW AND MODERATE INCOME HOUSING REQUIREMENTS 1. Replacement Housing Obligation Based on the previous Implementation Plan, the Project Area has not removed any low or moderate income housing units from the Project Area s affordable housing stock. In addition, this Implementation Plan does not anticipate the removal of affordable housing units from the Project Area due to Agency activities, Therefore, there is no current or future replacement housing requirement. 2. Inclusionary Housing Obligation The Agency is required to comply with the affordable housing unit production requirements imposed by Section 33413(b): a. Subparagraph (1) of the Section requires that 30% of all housing units developed by the Agency be to long-term income and affordability covenants. 15 Of these low and moderate-income units, 50% must be affordable to persons and families of very-low income. b. Subparagraph (2) of Section 33413(b) requires that 15% of all housing developed in the Project Area be low and moderate income housing subject to long-term income and affordability covenants. Of these low and moderate-income units, 40% must be affordable to persons and families of very-low income. To determine the number of units that must be developed in order to comply with this requirement, and to identify how much of this requirement will be satisfied by the activities included in this Implementation Plan, a brief review of past and anticipated housing development activity in the Project Area is presented below. It should be noted that the Agency has not produced any housing units directly and therefore Subparagraph (1) of the Section is not applicable. a. Past Development of Housing in Project Area (1984 adoption - FY2004) No known housing units have been substantially rehabilitated or developed within the original Crenshaw Project Area since the 1984 adoption through FY This is because the Project Area was the former Crenshaw Shopping Center, which does not include any residential areas. 15 The definition of Agency developed units is those units produced entirely by the Agency. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 20 of 29

21 The Amended Crenshaw Project Area, which is predominately focused on commercial corridors, Santa Barbara Plaza and Leimert Park Village, contains residential properties. As such, since the 1994 amendment of the Project Area, a total of 179 residential units have been developed within the Project Area. The following summarizes the four projects: Project Name Number of Units Project Type Completion Date Affordability Restrictions The Promenade 102 Condominiums FY00 FY04 None Bedford Parc 70 Condominiums FY00 FY04 None 5020 Crenshaw Blvd 4 Rental FY00 FY04 None 5014 Crenshaw Blvd 3 Rental FY00 FY04 None Total Units 179 b. Current and Future Housing Construction Activity in Project Area (FY2005 through FY2025) The following summarizes the current and anticipated housing units that will be developed within the Project Area from FY2005 through FY2025: Project Name Number of Units Project Type Completion Date Affordability Restrictions Buckingham 180 Senior Rental FY05 FY09 100% Very-Low Housing Program 11 Rental FY05 FY09 100% Low Marlton Square 140 Single-Family FY10 FY14 None Marlton Square 150 Condominiums FY10 FY14 None Unidentified Projects NA FY15 FY25 NA Total Units 761 c. Inclusionary Housing Obligation The Section 33413(b) inclusionary housing requirements triggered by historical and projected development in the original and Amended 16 Crenshaw Blvd housing (2 permits) 17 It is anticipated that the Project Area will be built out once 850 units are developed. 18 Crenshaw Blvd housing (2 permits) unit (The Promenade) and 70-unit (Bedford Parc) condo developments unit Buckingham Place senior housing, 140-unit Marlton Sq. single-family homes, 150-unit Marlton Sq. Condo development units max less 800 units through next 10 years units + 35 units planned IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 21 of 29

22 Crenshaw Project Areas from 1984 through the life of the Project Area, to expire in 2025, are as follows: Total Inclusionary Obligation (15%) Very-Low Income Obligation (40% of 15% Total Obligation) Low or Moderate Income Obligation (60% of 15% Total Obligation) Units Constructed Current Obligation ( ) Implementation Plan ( ) Implementation Plan ( ) Life of Plan ( ) Totals Therefore, the inclusionary housing obligation during the Implementation Plan period totals 29 affordable units. The estimated maximum inclusionary housing obligation for the Project Area is estimated at 129 units. d. Inclusionary Housing Fulfillment Since the date of adoption through FY2004, no inclusionary production units have been added to the Project Area. For the FY2005-FY2009 Implementation Plan period, the Agency anticipates the production of 261 inclusionary units within the Amended Crenshaw Project Areas, as well as outside the areas. The following affordable projects are anticipated to be constructed during the Implementation Plan period ( ). Very-Low Income Units Low / Moderate Income Units Total Affordable Units Estimated Completion Date Project Name Buckingham Place Vermont Seniors Housing Initiative Totals % = 126 units 24 The Agency has not assisted units outside of the Project Area. 25 Located outside of the Crenshaw Project Areas 26 The 140-unit project was developed outside the Project Area. Therefore, the units can only be counted on a one for two basis for inclusionary housing production purposes. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 22 of 29

23 The following table estimates the current and life of plan inclusionary housing status: Very-Low Income Units Low / Moderate Income Units Total Affordable Units Obligation Obligation Obligation Obligation Life of Plan Obligation Production Production Production Life of Plan Production Inclusionary Surplus/(Deficit) 197 (65) 132 Therefore, the Agency is anticipated to meet and exceed the low and moderate income housing production requirements imposed by Section 33413(b). E. USE OF LOW AND MODERATE INCOME HOUSING FUND 1. Set-Aside of Tax Increment The Project Area is subject to the Section requirement to allocate 20% of the gross tax increment (Set-Aside) to affordable housing activities. The Set- Aside is required to be deposited into a Housing Fund created to hold monies until expended. The projections of deposits into the Housing Fund are discussed in the following section of the Implementation Plan. 2. Proportional Expenditures of Housing Fund Monies The Project Area is subject to the Section requirement that the Agency expend Housing Fund monies in accordance with an income proportionality test and an age restriction proportionality test. These proportionality tests must be met between January 1, 2002 and December 31, 2014, and then again at 10- year intervals throughout the remaining life of the Project Area. These tests do not have to be met on an annual basis nor are they applied to unit production. a. Net Housing Fund Proceeds To estimate the amount of proceeds that will be available for expenditure between January 1, 2002 and December 31, 2014, the following table illustrates the assumptions and calculation: unit Vermont Seniors is outside the Project Areas unit obligation offset by units provided = 271 units surplus IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 23 of 29

24 Tax Increment Deposits 29 (Less) (Less) Debt Service Payments Net Housing Fund Proceeds Other Administrative Fiscal Year Deposits 30 Expenses 31 1/1/02 6/30/02 $52,000 $40,000 $0 $0 $692, /03 122,000 12,000 3, , /04 132,000 10, , , /05 174,000 23,000 78, , /06 141,000 19, ,000 0 (34,000) 2006/07 214,000 21,000 88, , /08 221,000 9,000 8, , /09 229,000 5,000 8, , /10 235,000 5,000 9, , /11 241,000 5,000 9, , /12 248,000 5,000 9, , /13 254,000 5,000 9, , /14 261,000 5,000 9, ,000 7/1/14 12/31/14 134,000 3,000 5, ,000 Total Net Proceeds $2,658,000 $767,000 $537,000 0 $2,888,000 As shown above, a total $2,888,000 of net proceeds are estimated to be deposited into the Housing Fund between January 1, 2002 and December 31, a. Very-low and Low Income Housing Expenditures The income proportionality test requires that the Agency expend Housing Funds in proportion to the housing needs that have been determined for the community pursuant to Section of the Government Code. The proportionality test used in this Implementation Plan is based on information contained within the City s General Plan. Based on the City s General Plan, the City s minimum required allocation for very-low and low-income expenditures, and maximum moderateincome housing expenditures are: Category: Housing Need 33 Threshold Very-Low Income 17,990 At least 45% Low Income 10,416 At least 26% Moderate Income 11,314 At most 29% 29 Based on C/S Housing-Statement of Revenues, Expenditures and Changes in Fund Balances ( ) and C/S Five-Year Resources and Work Program ( ) and estimates ( ) 30 These deposits include land sales, residual receipts revenues, loan repayments, bond proceeds and fund balances from prior to January 1, Includes estimated administrative costs for FY09 December 31, 2014 assuming a 5% annual increase. 32 Tax Increment + Other Deposits 33 Source: Regional Housing Needs, , adopted by Southern California Association of Governments, Regional Council, on November 2, IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 24 of 29

25 It should be noted that the Agency is entitled to expend a disproportionate amount of the funds for very-low income households, and to subtract a commensurate amount from the low and/or moderateincome thresholds. Similarly, the Agency can provide a disproportionate amount of funding for low income housing by reducing the amount of funds allocated to moderate-income households. In no event can the expenditures targeted to moderate-income households exceed the established threshold amount. As shown above, a total $2,888,000 of net proceeds are estimated to be deposited into the Housing Fund between January 1, 2002 and December 31, These funds must comply with the following distribution formulas: Minimum Estimated Expenditure on Very-Low Income 45% $1,299,600 Minimum Estimated Expenditure on Low Income 26% $750,880 Maximum Estimated Expenditure on Moderate Income 29% $837,520 As of the end of FY2004, the Agency had not spent net proceeds on affordable housing programs or projects, but only on administrative expenses. The Agency plans to expend the following net proceeds by category during the Implementation Plan period: Implementation Plan Period Proposed Expenditures As a % of Requirements Very-Low Income $795,000 61% Low Income $334,000 44% Moderate Income $278,000 33% Total Expenditures $1,407,000 49% Therefore, the following summarizes the remaining net proceeds that must be spent by December 31, 2014, by category. Estimated Net Proceed Expenditure Requirements (Less) 1/02 - FY04 Actual Expenditures (Less) Implementation Plan Expenditures Balance to Spend by December 31, 2014 Very-Low Income $1,299,600 $0 ($795,000) $504,600 Low Income 750,880 0 (334,000) 416,880 Moderate Income 837,520 0 (278,000) 559,520 Total Expenditures $2,888,000 $0 ($1,407,000) $1,481,000 The Agency plans to expend the remaining estimated Housing Funds so that at the end of 2014 it has met its obligation to allocate 45% of the Housing Fund project and program expenditures to very-low income households, 26% of the funds to low income households, and 29% of the funds to moderate income households. Thus, the Agency anticipates meeting the income targeting standards imposed by Section IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 25 of 29

26 b. Age Restricted Housing Expenditures Section also requires that the Agency assist housing that is available to all persons, regardless of age, in at least the same proportion as the households earning below 80% of the median income and under age 65 bears to the City s total households earning below 80% of the median income. The 2000 Census indicates that 80% of the Agency expenditures on affordable housing projects must be spent to assist projects that do not impose age restrictions on the residents. 34 Therefore, the maximum proportion of the net Housing Fund proceeds that the Agency is allowed to spend on age-restricted projects is 20%. As shown above, a total $2,888,000 of net proceeds are estimated to be deposited into the Housing Fund between January 1, 2002 and December 31, These funds must comply with the following distribution formulas: Maximum Estimated Expenditure on Age Restricted 20% $577,600 Minimum Estimated Expenditure on Non-Age Restricted 80% $2,310,400 As of the end of FY2004, the Agency has spent no LMIHF on affordable housing projects. The Agency plans to expend the following net proceeds during the Implementation Plan period. FY Implementation Plan Period Proposed Expenditures As a % of Requirements Age Restricted Projects $795, % Non-Age Restricted Projects 612,000 26% Total Expenditures $1,407,000 49% Therefore, the following summarizes the remaining net proceeds that must be spent by December 31, 2014, by category. Estimated Net Proceed Expenditure Requirements (Less) (Less) Implementation Plan Expenditures Balance to Spend by December 31, Actual Expenditures Age Restricted Projects $577,600 $0 ($795,000) ($217,400) Non-Age Restricted Projects 2,310,400 0 (612,000) 1,698,400 Total Expenditures $2,888,000 $0 ($1,407,000) $1,481, CHAS data provided by the United States Housing and Urban Development Department. A total of 116,975 of the 580,977 total households earning below 80% of the median are designated as senior citizen households. 35 Administration expenses only 36 An additional $869,600 needs to be expended on non-age restricted projects so that the Project Area will meet the age restriction proportionality test. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 26 of 29

27 As illustrated above, the Agency is projected to have spent $217,400 over the 20% proportionality limit on age-restricted projects by December 31, To get the age restricted expenditures back into proportionality, the Agency cannot spend any future LMIHF funds on age restricted projects through December 31, In addition, the amount of net housing funds that must increase by approximately $1,087,000. The Agency plans to expend the remaining estimated net Housing Funds so that at the end of 2014 it has met its obligation to allocate at least 80% of the Housing Fund project and program expenditures to under age 65 households. Thus, the Agency anticipates meeting the age restriction targeting standards imposed by Section F. AGENCY COMPLIANCE BY END OF EFFECTIVENESS OF PLAN The Redevelopment Plan does not terminate until May 9, 2025 and therefore the reporting requirements of CRL Section 33490(b) do not apply CRL Section 33490(b) requires that for Projects that are within six years of the time limit on effectiveness that the Implementation Plan include a description of how the Agency will fulfill all of its affordable housing obligations. IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 27 of 29

28 VI. NEXT STEPS Pursuant to the requirements of California Redevelopment Law, the Agency will hold a public hearing on the progress on provision of housing and non-housing projects and programs for the Project Area between the second and third year of the next Five Year Implementation Plan Report. This progress public hearing will, therefore, occur in Fiscal Year 2007, which starts July 1, 2007, and ends June 30, IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 28 of 29

29 PROJECT AREA MAP IMPLEMENTATION PLAN FOR FY2005-FY2009 Page 29 of 29