OJAI : Water Hookup Ban May Block Project

The Ojai Redevelopment Agency may not be able to build an affordable housing project because of a moratorium on new water hookups in Ojai.

Ojai City Manager Andrew Belknap said that funding a proposed 21-condominium project on North Montgomery Street may be problematic because of the moratorium. The agency is tentatively planning to give $250,000 in housing reserve funds to the Cabrillo Economic Development Corp., which is building the project.

Belknap has proposed that $20,000 be earmarked to study other methods the agency could use to meet its state mandate to provide affordable housing, such as funding home improvement loans and loan programs geared for first-time buyers.

The issue arose last week when the City Council, acting as the Redevelopment Agency, reviewed the agency’s preliminary budget for the 1990-91 fiscal year.

The draft budget projects that the agency will have a total of $2.27 million available next year with $404,093 set aside for low- and moderate-income housing.

Belknap said more funds will also be available for downtown improvements. “The agency will continue to be the most entrepreneurial area of the city government,” he said.

Proposed expenses include $300,000 to buy or improve property for vehicle parking, $125,000 to expand a 20-space park-and-ride lot by 60 vehicle spaces, $25,000 to study parking needs, $32,000 to upgrade the Arcade Plaza and $43,000 to bring the Ojai Valley Chamber of Commerce building up to earthquake safety codes.

Revenue from property tax assessments in the redevelopment area is projected to reach $450,000 next year, Belknap said, or about $4,000 more than this year and $45,000 up from 1988-89 tax revenue.

The agency should end this fiscal year with a total reserve of $1.67 million. The Redevelopment Agency will consider adopting the budget June 26.