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Council approves Shalimar Drive relocation plan, allocates $203,716.80 from Housing Trust Fund for tenant relocation
Summary
Costa Mesa council unanimously approved a draft relocation plan and a budget appropriation to relocate households at 778 Shalimar Drive, authorizing staff to implement assistance including administrative support and calculated financial relocation payments.
The Costa Mesa City Council on April 15 unanimously approved a draft relocation plan and authorized a budget adjustment of $203,716.80 from the Housing Trust Fund to provide relocation assistance for households displaced by the city’s purchase of 778 Shalimar Drive.
What the city is buying and why: The city agreed to purchase the four‑unit property for future community‑serving public uses and began escrow in December 2024; three units were occupied by four households at the time staff began relocation work. Because a public entity’s acquisition may displace residents, state regulations require a relocation plan; the city contracted Monument to prepare the plan, conduct tenant outreach and advise on benefits.
Relocation assistance and calculation: Monument interviewed tenants, documented household sizes and language needs, and surveyed nearby housing markets. The draft plan identifies eligible benefits — advisory services, moving costs, rental subsidy or down‑payment assistance where appropriate — and calculated relocation payments by comparing fair‑market rents to tenant rents and applying a 42‑month multiplier used in the applicable California regulation. Monument’s base calculation for the households totaled roughly $100,068.76; Monument recommended adding a 20% contingency and the staff recommendation before council asked for an appropriation of $203,716.80 from the Housing Trust Fund to cover payments and administration.
City‑owned alternatives: Staff informed council the city has some vacant units nearby; city staff said one tenant had already been accepted into a city‑owned unit and other households were in the application process.
Council action and vote: Council adopted the draft relocation plan, appropriated $203,716.80 from the Housing Trust Fund, and authorized the city manager, city attorney and finance director to implement the relocation program. The vote was unanimous (7–0).
Next steps: Following council approval Monument will continue bilingual tenant outreach, help tenants locate and apply for replacement housing, inspect prospective units, assist with relocation claims, and process payments according to the approved plan and state requirements. Staff said any interested tenants may also apply for city‑owned housing where appropriate.
Why this matters: The action creates an approved process and funding to relocate the current households in compliance with California relocation regulations and enables the city to proceed toward the intended public use for the parcel while offering tenants help to secure new housing.
Ending: Staff will complete the relocation steps during escrow; the council’s appropriation provides a funding source pending final program disbursements and any eligible tenant moves.
