1) What is Assessed Value?2) What is Blight?3) What is a Design for Development?
4) What is Eminent Domain?5) What is an Environmental Impact Report?
6) What is Fair Re-Use Value?
7) What is Land Write-Down?8) What are Low and Moderate Income?
9) What types of Agreements are there?10) Owner Participation Agreement (OPA)?11) What is the definition of Market Value?12) What is Negotiated Sale?
13) What is the definition of Open Space?14) What is Property Tax?15) What is Redevelopment?16) What is a Redevelopment Plan?
17) What is a Redevelopment Project?18) What is the definition of Rehabilitation?19) What is a Request for Proposal (RFP)?20) What is Relocation?
21) What is Relocation Assistance?22) What is Replacement Housing?23) What is TFAR?24) What is Tax Increment?
25) What is Tax allocation Bond?26) What types of Committees are in a Redevelopment Area?
1) What is Assessed Value?
The amount used by the County Tax Assessor to value real property for tax purposes. Assessed value is generally the market value of property established at the time the property is sold. Proposition 13 limits annual increases in this value to a maximum of 2 percent. Assessed value multiplied by the tax rate determines property tax.
2) What is Blight?
Deterioration of an area caused by physical, economic and social forces. What is the California Community Redevelopment Law? Redevelopment law of the State contained in California Health and Safety Code, Division 24, Part 1 (Section 33000 et seq.), which defines blight and sets forth the procedures for developing and implementing the redevelopment process.
3) What is a Design for Development?
Detailed guidelines, formulated with community assistance, which strictly govern rehabilitation and new construction within a specific area or sub-area of a redevelopment project. These guidelines are issued and adopted by CRA to guide development on selected parcels. Such guidelines address such elements as signage, setback, build, shadow, specific uses, open space, and urban design features of buildings.
4) What is Eminent Domain?
Authority of a government agency to acquire property when it can be shown that the property is acquired for a public purpose and for the public good and that the owner has received a just compensation. The power of eminent domain in a redevelopment project is given to the redevelopment agency through the redevelopment plan, which becomes an ordinance after the City Council's approval following a public hearing.
5) What is an Environmental Impact Report?
A study and report prepared in compliance with the California Environmental Quality Act. The EIR evaluates the effects of a proposed project on its surroundings, i.e. noise, traffic, sewage, and air quality, and identifies measures to mitigate theses impacts.
6) What is Fair Re-Use Value?
The value of a piece of property being sold by a redevelopment agency, reflecting additional conditions and limitations beyond those permitted by land use and zoning codes. These conditions result in a lower value because the “highest and best use” cannot be achieved under the limitations imposed.
7) What is Land Write-Down?
A method of encouraging specifically defined and controlled new development in a redevelopment area by offering land at lower than “market value.” The lowering of land prices by a redevelopment agency occurs when the agency assumes part of the acquisition, demolition, and improvement costs because it imposes more stringent development requirements on the land. The difference between the market value and the fair re-use value for the uses and restrictions proposed by the redevelopment agency is commonly known as land write-down.
8) What are Low and Moderate Income?
Income levels of household to with some federal and state programs, particularly housing are directed. Very low-income units are reserved for households with incomes of no more than 50 percent of the Los Angeles area median income; for low-income units, the ceiling is 80 percent of that median; and for moderate-income units the ceiling is 120 percent of the median. For 1991, the median income ranges from $30,450 for a single member household to $57,400 for a family of eight.
9) What types of Agreements are there?
Loan Agreement A contract between a property owner or developer and the agency under which the owner/developer receives funds loaned by the agency to carry out a specific project. Generally, loan agreements, except for small rehabilitation projects; are coupled with and incorporated into DDA's or OPA's. Disposition and Development Agreement (DDA) A contract between a developer and the redevelopment agency that involves the sale of agency owned land, Examples: DDA dated 2/16/88 with the Los Angeles State Building Authority to construct Ronald Reagan Building on Spring and Main streets between Third and Fourth Streets.
10) Owner Participation Agreement (OPA)?
A contract between a property owner/developer and the redevelopment agency to allow for development of property owned by an entity other than the agency, generally the owner/developer. Example: OPA assigned 3/8/86 with Ohbayashi America Corp. to develop 37-story office building at 550 S. Hope Street. OPA dated 8/6/89 with Broadway-Spring Center, a joint venture entity, to construct Biddy Mason Park, a minipark open space fronting Broadway Spring Center parking and retail facility.
11) What is the definition of Market Value?
The fair value of a piece of property, based on the “highest and the best use.” That is the use (and intensity of use) permitted by land use and zoning codes which result required by law to pay the fair market value for property it acquires, and must use independent private appraiser to set the values it offers to property owners.
12) What is Negotiated Sale?
When the price to be paid for land and improvements is mutually agreed upon the buyer and seller.
13) What is the definition of Open Space?
Land area left in an un-built state. Open space included plazas; parks; side, front, and back yards, and cemeteries. Useable open space is available for recreational activities.
14) What is Property Tax?
The amount of tax which a property owners pays on the value of his/her property. The tax is calculated by multiplying the assessed value of the property by the tax rate, which is one percent plus any voter approved increase. The tax is set by, and calculated by, the County.
15) What is Redevelopment?
Planning, development, replanning, redesign, clearance, reconstruction, or rehabilitation of all or part of a project area. Redevelopment is a comprehensive effort to eliminate blight and otherwise improve an area through a commitment of public funds and actions. Redevelopment usually entails constructing and rehabilitating housing, improving public facilities, promoting employment opportunities and encouraging private investment.
16) What is a Redevelopment Plan?
A legal document that controls and guides physical activities within a redevelopment project area to eliminate blight and remedy the conditions that caused it. The plan must be adopted by both the CRA and the City Council following public hearings. A redevelopment plan must be in conformance with, but may be more limiting than, the City's General Plan and the Community Plan for the area in which it is located.
17) What is a Redevelopment Project?
The geographic area covered by a redevelopment plan.
18) What is the definition of Rehabilitation?
The physical improvement of existing residential, commercial, public and industrial structures through remodeling and repair. Rehabilitation may be funded by private and public sources.
19) What is a Request for Proposal (RFP)?
A public solicitation to developers and /or property owners to redevelop a parcel or group of parcels in accordance with specific guidelines set forth by CRA. The guidelines my include use, or mix of uses, density, building height and setback requirements, parking and open space standards, or their conditions. These standards are often set forth in a design for development. RFP's are most often used to attract proposals for agency-owned parcels. What is Revitalization?
Any effort made to foster community stability through private or public actions. Revitalization may include industrial, residential, commercial development, and public improvements.
20) What is Relocation?
The effort to assist and facilitate and facilitate re-housing of families and single persons, businesses or organizations who are displaced due to redevelopment activities.
21) What is Relocation Assistance?
Relocation payments help to assist families, individuals, businesses, and nonprofit organizations, which are displaced as a result of redevelopment activities. This includes aid in finding a new location, payments to help cover moving costs, and additional payments for certain other costs. The California Relocation Assistance Act and the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, set monetary benefit limits. What is Relocation Housing Available housing (new, rehabilitated, or existing) that is provided by the agency for families or individuals who are displaced as a result of redevelopment activities.
22) What is Replacement Housing?
Housing constructed or rehabilitated by the agency to replace housing (on a unit-by-unit basis) that is demolished as a result of redevelopment activities.
23) What is TFAR?
Transfer (from one site to another) of floor area ratio, or the unused portion of square footage allowed to be developed on a parcel according to zoning regulation. In most of the central business district of downtown Los Angeles, the floor area is allowed to be six times the parcel area of a site. A higher density project can exceed that allowable built-out with a density transfer from another site. In certain limited cases, an increase of up to 50, 000 additional square feet can be allowed by variation. Development rights can be transferred (usually by sale) from a low-density parcel to a high-density parcel under certain regulated conditions that demonstrate public benefit: · The low-density site, frequently an historic building is preserved. · The resulting high-density site is compatible with adjacent existing and proposed development. · The resulting site is central to concentrated activity · The resulting development is consistent with the objectives and goals of the redevelopment plan. Historic buildings and open space are the primary source of unused density and payment of a public benefit payment to the City, provides resources to pay for low to moderate income housing, historic preservation and public benefits. Examples: The sale of unused development rights from the historic Bradbury Building to the Mitsui Tower development at Wilshire and Figueroa provided $1.1 million for seismic upgrading of the Bradbury, saving the historic landmark from possible demolition. The sale of undeveloped density in Grand Hope Park to Citicorp provided open space. The Eastside Garage and Broadway Spring Center density provides public improvements and funds to rehabilitate historic buildings. The sale of unused density allowed for the Central Library pays for its expansion and modernization.
24) What is Tax Increment?
The funding mechanism created by state law to finance redevelopment activities. The amount of tax increment allocated to the agency is equal to the difference between property taxes in a given year and property taxes generated in the “base year” in which the redevelopment plan was adopted, allowing for the maximum 2 percent annual increase, less any mandated “pass-through” to other taxing entities. The CRA has no taxing authority, but receives its tax increment from the County. Redevelopment generates new investment within a project area, which results in new development. Thus, new development generates new tax revenue that CRA, in turn, plows back into the community to help underwrite the cost of redevelopment and public improvements. Commercial development creates jobs and economic opportunities in the community. Public improvements upgrade the infrastructure- streets, sidewalks, street lighting, etc. to serve development. CRA also uses tax increment to subsidize low-cost housing. In addition, CRA is also passing through almost a third of its tax increment flow to the county under various special agreements. By law, these tax increment monies, other than those passed through to the county, must remain in the community and be used to support the redevelopment program through the life of the project. This guarantees that the tax increment revenues benefit the regenerating them.
25) What is Tax allocation Bond?
A bond or financial obligation issued by the agency in order to generate revenues to implement the redevelopment plan sooner than possible on a “ay-as-you-go” basis with the annual receipt of tax increments. The compiling of smaller and sometimes irregular parcels of multiple ownership into larger parcels that are more suitable for building developments, sometimes called reparcelization or replatting.
26) What types of Committees are in a Redevelopment Area?
Project Area Committee (PAC) Elected committee composed of project area residents, business persons, and representative of organizations to consult with and advise the redevelopment agency on redevelopment activities. Citizen's advisory groups monitoring redevelopment also include: Citizen's Community Advisory Committee (CCAC) Citywide Citizen's Advisory Committee composed of 23 mayoral and council district formed to review redevelopment programs in the Central Business District from a citywide perspective. Community Development Advisory Committee (CDAC) Community Development Advisory Committee composed of mayoral and/or council manic appointees from all 15 council districts formed to review redevelopment programs in the Central Business District from a citywide perspective. Community Advisory Committee (CAC) Citizens Advisory Committee composed of local business and residential representatives, generally appointed by the Council member of the district in which the project is located, as in Chinatown. Downtown Strategic Plan Advisory Committee Downtown Strategic Plan Advisor Committee composed of nearly 40 members representing a cross section of the downtown community assisting the redevelopment agency with developing a plan that will chart the course of downtown redevelopment over the next 25 years. The Downtown Strategic Plan will deal primarily with 1-future growth and land use, 2- quality urban design and open space, 3-urban conservation, and 4- transportation programs that expand access to downtown and increases circulation.