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Staff Report

Burbank City Council
January 28, 2025

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Staff Report
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January 28, 2025
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Burbank City Council
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Text extracted from the city's file for reading and search. Open the original on burbank.granicus.com. That file is the official record.

DATE: January 28, 2025

TO: Justin Hess, City Manager/Executive Director

FROM: Patrick Prescott, Community Development Director/Assistant Executive Director
VIA: Simone McFarland, Assistant Community Development Director, Housing and Economic Development
BY: Maribel Leyland, Housing Authority Manager

SUBJECT: Adoption of a Resolution Approving a Replacement Housing Plan for 2321, 2325-2327, 2331-2333, and 2335 N. Fairview Street
______________________________________________________________________

RECOMMENDATION
Adopt A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF BURBANK

APPROVING A REPLACEMENT HOUSING PLAN FOR HOUSING UNITS WHICH WILL

BE DEMOLISHED AS A RESULT OF AN AFFORDABLE HOUSING LOAN AGREEMENT FOR 2321-2335 NORTH FAIRVIEW STREET (Attachment 1).

BACKGROUND
The purpose of this report is to provide information to the Burbank Housing Authority Board (Board) to consider approving a Replacement Housing Plan for the properties at 2321, 2325-2327, 2331-2333, and 2335 N. Fairview Street (Properties) in preparation for a proposed affordable housing loan agreement to be considered later this year . At the Fairview site, there are currently 16 total units , all of which are rented to extremely-low, very-low, low and moderate-income households. The new Fairview project would increase the total number of units to 60, replace the existing extremely-low, very-low, and low units, and add additional affordable units as listed in the Replacement Housing Plan.

The City of Burbank (City) has a long-standing commitment to increasing the supply of affordable housing opportunities for lower-income households. For the last 25 years, the City has partnered with the Burbank Housing Corporation (BHC) to create 326 affordable housing units in the community. S ince 1997, the City and BHC have implement ed a proactive strategy of neighborhood revitalization t hat encourage d community engagement and heightened community identity, while helping to foster a meaningful quality of life. While the Focus Neighborhood program utilized with the former 2 | Page
Redevelopment Agency 1 is no longer being implemented, BHC continues its efforts to revitalize the Golden State Focus Neighborhood and has submitted a proposal for financial assistance t o assemble four contiguous parcels that make up the Properties .

BHC owns the four parcels that contain a total of 16 units, and the development is currently undergoing the entitlement and environmental review process. BHC’s proposal to assemble the P roperties includes building a total of 60 units (44 net new units) with one parking space per unit. The proposed affordable housing financial assistance is tentatively scheduled for Board consideration in early March 2025 , after entitlement is complete and environmental clearance is obtained.

In anticipation of the Board’s future consideration of an Affordable Housing Loan Agreement for financial assistance of the proposed development, staff has prepared a replacement housing plan (Plan) for the Board’s approval ( Attachment 1 , Exhibit A ).

California Redevelopment Law requires the Board, as the Successor Housing Agency to the former redevelopment agency, to adopt a replacement housing plan via resolution at least 30 days prior to entering into an agreement that would lead to the destruction or removal of residential units from the low and moderate-income housing market.

As required by California Redevelopment Law , replacement housing plans identify the impacts that a redevelopment project will have on the community’s supply of low - and moderate-income housing and details and measures replacement housing obligations to ensure that production of appropriate replacement housing occurs within a four-year time limit. The Plan identifies the total number of housing units and bedrooms that require replacement by the Agency as a result of the proposed demolition of the Properties.

Demolition of the existing units will not occur until the financing for replacement units is committed.

DISCUSSION
Replacement Housing Plan
Currently there are 16 existing units at the site that are rented to extremely-low, very-low, low and moderate-income households. The following table summarizes the breakdown of units by income levels and bedroom size:

1 California redevelopment agencies were dissolved in on February 1, 2012. 3 | Page
Unit Type Demolished Units
Quantity Income Designation
1-Bedroom 2 Extremely Low
1-Bedroom 3 Very Low
1-Bedroom 4 Low
2-Bedroom 2 Low
2-Bedroom 1 Moderate
2-Bedroom 1 Over income
3-Bedroom 2 Very Low
4-Bedroom 1 Very Low
TOTAL
16 units /
27 bedrooms

The Plan identifies a total of 16 housing units and 27 bedrooms that require replacement by the Authority as a result of the proposed assembling and demolition of the Properties.

Per California Redevelopment Law, 100% of the very-low to moderate-income dwelling units shall be replaced with dwelling units having an equal number of bedrooms available at the respective very -low to moderate-income levels. The proposed development will replace the existing units and provide an opportunity to all households to return to the development.

The following chart summarizes the replacement unit breakdown for the proposed development:

Thus, the new housing provides more units of the same or larger size than the number of existing units at affordable housing cost to persons in the same or a lower income category as the persons displaced from those existing units , leaving no remaining replacement housing obligation.

Unit Type Replacement Units
Quantity Income Designation
1-Bedroom 5 Extremely Low
1-Bedroom 16 Very Low
1-Bedroom 2 Low
2-Bedroom 3 Extremely Low
2-Bedroom 12 Very Low
2-Bedroom 6 Low
3-Bedroom 2 Extremely Low
3-Bedroom 10 Low
4-Bedroom 1 Extremely Low
4-Bedroom 2 Low
TOTAL
59 units /
113 bedrooms
Note: Totals do not include the
Manager’s unit.
4 | Page
As required by California Redevelopment Law, a reasonable time period for public review of the Plan is required prior to Authority Board approval of the Plan. The Plan was made available for general public review on the C ity’s website ( www.burbankca.gov/housing) on January 18, 2025, and at the Community Services Building (Housing Public Counter) beginning Tuesday, January 21, 2025. A notice was also published in the Burbank Leader on January 18, 2025 initiating the public review period for the Plan (Attachment 2). The comment period will expire on January 28, 2025. As of the writing of this report, no written comments were received on the Plan.

FISCAL IMPACT
There is no fiscal impact to the Housing Authority or the City in the preparation and adoption of the replacement housing plan. BHC will replace the 16 units in the new development if approved. The financial consideration for the proposed 60- unit development in partnership with the Authority and City will be considered later this year with the consideration of the Affordable Housing Loan Agreement with BHC.

ENVIRONMENTAL REVIEW
The City of Burbank, acting as the lead environmental review agency, has determined that the Plan is not subject to the California Environmental Quality Act (CEQA) , in accordance with
§ 15061(b)(3) of CEQA, relating to projects for which it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

CONCLUSION
California Redevelopment Law requires the Authority, as the Successor Housing Agency to the former redevelopment agency , to adopt a Plan when entering into an agreement that would lead to the destruction or removal of residential units from the low and moderate-income housing market. In anticipation of the Authority Board’s future consideration of an Affordable Housing Loan Agreement that would lead to the demolition of the buildings at 2321, 2325-2327, 2331-2333, and 2335 N. Fairview Street, a Plan has been prepared for the A uthority Board’s consideration and approval. The Plan has identified 16 housing units and 27 bedrooms that will be removed from the low and moderate-income housing market as a result of the proposed demolition and redevelopment of the Properties. BHC’s proposed development will replace the 16 units to satisfy the replacement obligations with 11 extremely-low income units, 30 very -low income units and 18 lower-income units with 113 bedrooms. 2 ATTACHMENTS
Attachment 1 – Housing Authority Resolution
Attachment 2 – Public Notice

2 There is one manager’s unit that is not a part of this calculation.

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