HomeMy WebLinkAbout(1983, 09/12) - P-1 - AmendedP -1
ADMINISTRATIVE GUIDELINES FOR THE,IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 1
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BACKGROUND
The City of Newport Beach (hereinafter "City ") has the
responsibility for the administration of provisions of State law
relative to the demolition and conversion of existing low and moderate
income residential units and construction of new affordable housing
within the Coastal Zone. (Chapter 1007, Statutes of 1981, Government
Code Section 65590 et seq)
This Council Policy establishes the Administrative Guidelines
and Implementation procedures to be used by the City in administering
the provisions of the State law referenced above.
The City Council of the City of Newport Beach has, by virtue
of the adoption of this policy, determined that it is not feasible to
require replacement housing units for low and moderate income persons
or families for projects involving the conversion or demolition of one
or more structures located upon any parcel withi0 the City containing
two or fewer residential units. The City Council finds that replacement
housing for projects involving two or fewer units is not feasible due
to the high cost of land within the City, the limited number of sub-
standard housing units that can be rehabilitated, the relatively small
profits that flow from projects involving twc/ or fewer residential
units, and the negligible impact that such cbnversions or demolitions
have on the low and moderate income housingiopportunities within the
City.
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GENERAL RULES,
1. Exempt Projects
This policy shall not apply to the following projects:
a:" Projects not located within the Coastal Zone
as established pursuant to the Coastal Act
iof 1976 and as subsequently amended;
b. The conversion or demolition of a residential
structure on any single parcel which contains
two or fewer residential units;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 2
c. The conversion or demolition of a residential
structure for purposes of a non- residential use
which is either "coastally dependent" or "coastally
related" as those terms are defined in the Coastal
Act of 1976, as amended, acid which non - residential
use is consistent with the applicable local Coastal
Plan designation;
d. Demolition of any structure which has been declared
to be or constitutes a;public nuisance, pursuant to
the provisions of Divi.bion 13 of the Health & Safety
Code of the State of ¢alifornia or any Ordinance of
the City enacted pur nt thereto.
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For the purposes of this
terms shall be defined as follows:
1. "Conversion" shall m
ship of any resident
limited to, a change
stock cooperative, c
timeshare or similar
right to occupy the
or lease agreement,
the purchase of the
structure during a p
period of years, or
residential use to a
the following words and
any change in the form of owner-
structure, including, but not
ownership to a condominium,
erative, community apartment,
rm of ownership, such that the
ucture is not based upon a rental
tten or oral, rather, based upon
ht to occupy some or all of the
ion or all of the year, or for a
perpetuity, or any change from a
n- residential use;
2. "Demolition" shall n the destruction or tearing down
of a residential stru ture which has been found feasible
for retention pursuan to Section 30612 of the Public
Resources Code;
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3. "Feasible" means capable of being accomplished in a
successful manner within a reasonable period of time,
taking into account economic, environmental, social and
technical factors;
4. "Replacement Unit" shall mean a residential structure
suitable, in terms of size and other characteristics for
occupancy by the same number of low or moderate income
persons that occupied the converted or demolished unit.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 3
5. "Persons and Families of Low or Moderate Income" shall
be defined as set forth in §50093 of the California
Health and Safety Code.
6. "Affordable Units" shall be defined as those housing
units affordable by persons.and families of low or
moderate income.
7. Family" shall be defined as persons related by blood,
marriage, formal adoption or those persons living to-
gether by virtue of economic, social and psychological
bonds;
S. New Housing Development" shall ba defined to mean the
construction, of three or more residential units on:
1) Previously vacant land; 2) Land previously occupied
by two or less residential u ts; or 3) Land previously
occupied by two or less mob a homes.
9. Planning Director" shall include the Planning Director
of the City and all employees of the Planning Department
to whom the Planning Department has delegated, orally or
in writing, the performdnce of duties required by these
Guidelines.
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10. Developer" shall mean the person or entity that, at the
time of the issuance`of any permit required or authorized
by these Guidelinerr; is the beneficial owner of the
property that is the subject of the permit.
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The procedures for processing requests for the approval of
the conversion or demolition of residential structures located within
the Coastal Zone shall be as follows:
1. Applicatilon for the approval of the conversion or demolition
of residential structures located within the Coastal Zone shall be made
by the Developer to tWe Planning Department on a form provided by that
Department. The Developer shall provide the following information:
a. The address of the property for which approval
is sought;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
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LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 4
b. A legal description of the property for which
approval is sought;
c. The number of residential units then in exist-
ence on the property;
d. The maximum number of residential units on the
property within the last 12 months;
e. The number of residential units to be constructed,
or, if no residential units are to be constructed,
the nature of the user to which the property will
be put upon conversion or demolition;
f. The name, business address, residence address,
residence telephone number, business telephone
number and such other information that would assist
the City in obtaining financial information of each
person then residing, on a permanent basis or for
more than 45 consecutive days, in structures located
on the property foa which approval is sought;
g. The name, business address, resident's address,
resident's telephone number, business telephone
number, and such other information that would
assist the City in:obtaining financial information
as to each person Who has resided, on a permanent
basis or for more than 45 consecutive days, in any
of the structures located on the property within
the 12 months immediately preceding the date on
which the Application is filed;
h. The court name, court address, case number, case
name, as well as all relevant information, with
respect to any leg$1 action filed by, or on behalf
of, the Developer #nd against any current tenant or
any person who, within the 12 months immediately
preceding the datelon which the Application is
filed, has resided on a permanent basis or for
more than 45 consecutive days, within any of the
structures located,on the property for which
approval is sought1within the past 12 months;
i. Such other information as the Planning Director may
consider necessary to the implementation of these
Guidelines or the provisions of State Law relative
to the conversion or demolition of residential
structures located within the coastal zone, which
are occupied by low and moderate persons.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 5
j. At the time the Application is filed, the Developer
shall pay a fee of $750.00, or $250.00 per each
residential unit to be converted or demolished,
whichever is greater, said fee to defray the
administrative costs and expenses incurred by the
City in administering the provisions of these
Guidelines and Section 65900 et seq of the Govern-
ment Code. The Planning Commission may approve a
reduction in fees for projects of 40 units or more;
k. The project proposed by Developer shall not be
processed by the City until such time as all
information required by these Guidelines has been
provided to the Planning Director;
1. Upon receipt of the Application and appropriate
fees, the Planning Director shall cause an investi-
gation to be commenced to determine the following:
i) Whether the proj$tt is exempt under the
provisions of these Adpinistrative Guidelines;
ii) Whether any person of low or moderate
income is presently 0 cupying any residential unit
located on the property for which approval is
sought;
iii) Whether any person of low or moderate income
has, within the 12tmonths immediately preceding
the date on which the Application is filed, occu-
pied any of the residential units on the property
for which approval is sought;
iv) The circumstances pursuant to which the
tenancy of any person of low or moderate income
was terminated 4uring the 12 months immediately
preceding the date on which the application is
filed;
v) With respect to property containing more than
one structure and, more than three but less than
10 dwelling units whether, given the circumstances
of the project, a requirement for replacement of
units occupied by low or moderate income persons
is feasible;
vi) In the event of a conversion or demolition of
any residential structure for purposes of a non-
residential use which is not coastally dependent,
as defined in Section 30101 of the Public Resources
Code, whether a residential use at that location
is no longer feasible.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 6
2. The Planning Director, after conducting the investi-
gation set forth above, shall notify Developer of the determination
and Developer's rights to appeal, by certified mail.
3. Upon final determination as to the number of replacement
units to be provided by Developer, Developer shall provide the Planning
Director, on a form to be prepared by the Planning Department, of the
following information:
a. Whether replacement units shall be made avail-
able through new construction, conversion of
non - residential structure to residential use,
substantial rehabilitatioII of substandard
dwelling units (as define, in §17910 et seq of
the Health and Safety Code) through the provi-
sion of existing units ndt currently affordable
by low or moderate incom4 persons, by giving
existing low and moderatf income tenants the
right to lease units on- ite at affordable rates,
or by any combination of!the above;
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b. The location of the rep4cement units and, if
those units are not located within the Coastal
Zone, all of the facts apd circumstances upon
which the Developer relies to support his or
her contention that it i not feasible to
provide replacement unit$ within the Coastal
Zone;
C. Information relative to the size, configuration
and manner of construction of the units, and
together with all other information as to the
amenities found within the replacement units.
4. The Planning Department shall'conduct an investigation
to determine the suitability of the replacement units and shall approve
the replacement units if:
a. The replacement units provide housing opportuni-
ties similar to those provided by the dwelling
units converted or that are demolished; •
b. The number of replacement units is equal to the
number of dwelling units proposed for conversion
or demolition, which are occupied by persons or
families of low or moderate income, or were
occupied by persons or families of low or moderate •
income who were evicted within the past 12 months;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 7
5. Upon a final determination as to the number and
location of replacement units, and prior to or concurrently with,
giving the approval to Developer, to convert or demolish the units,
Developer and the City shall enter into an Agreement, prepared by
Developer and approved as to form by the City Attorney, which shall
include the following provisions:
a. A description of the project, including its
location and the number of units to be de-
veloped, if the property is to be developed
for residential purposes;
b. A description of the replacement units to be
provided, specifying their size, number and
location;
c. A commitment that the replacement units are
affordable, and will be;made available to,
persons or families of 'low or moderate income;
d. That the replacement snits shall be provided,
and available for occipancy, within three
years from the date upon which the approval
for the conversion o$ demolition was granted;
e. A statement as to wiether the affordable units
are to be sold or n6nted;
f. A provision that the Agreement be recorded
against the property containing the replace-
ment units.
g. A provision that?the Developer is responsible
for ensuring tha the persons or families who
rent or purchas the units are properly quali-
fied as persons/ or families of low or moderate
income; ,
h. A provision thtt a fair and equitable process
shall be used y the Developer to select the
persons or fa lies entitled to rent or purchase
the units. T e selection process shall, at a
minimum, prov de for the following:
W That a Developer advertise the
avail bility of the affordable units;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE-TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 8
ii) That the Developer allot a reason-
able period of time for persons
or families to apply f; r purchase
or rental of the affordable units;
iii) That the Developer d#iigently
investigate the factp in
the application sub fitted to ensure
that the Developerssi' are in fact
persons and /or families of low or
moderate income;
iv) That selection of the purchasers
or renters shall P a made through
a random system ch as a lottery.
i. A provision that, in thelevent of the sale or rental
of a unit to a person o family who does not qualify
as low or moderate fine e, the Developer shall,
within 60 days, either twplace the occupants with
persons or families of or moderate income or
provide a replacement fnit, similar in size and
related characteristicp to the one sold or rented
to the person or fami* who does not qualify.
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j. A provision that the eveloper enter into an agreement
with the purchaser ors renter of an affordable unit
which agreement shall
W Obligate the Plrchaser or renter at
least once a year, to provide the
Developer with income information; and
ii) Give the Developer the right, in the
event of a maierial misrepresentation
made by a person or family with respect
to income, either invalidate the sale of
the affordable unit or, in the event of a
rental unit, the right to terminate the
tenancy.
iii) Require that a "for sale" unit be sold,
within the period of time during which
the unit is to remain affordable, only •
to persons of low or moderate income,
whichever is appropriate;
iv) Provide the agreement be recorded.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 9
k. A provision that Developer, and all successors -
in- interest, maintain the units as affordable
for at least ten years from the date on which
the units are first available for occupancy,
unless the Developer can demonstrate to the
City Council that a shorter period of afford-
ability is, given the circumstances of the
project, appropriate. Any agreement that pro-
vides for a period of affordability of less than
10 years shall be reviewed and approved by the
City Council.
1. A provision that the City shall be entitled to
recover reasonable attorney's fees and costs
incurred in connection with enforcement of any
provision of the agreement.
m. A provision that the terms and conditions of
the agreement shall be binding on the agents,
employees, heirs and asskgns and successors -
in- interest of the Developer.
n. A provision requiring Lhe Developer, and
successors -in- interest, to annually submit to
the Planning Director a schedule of the rental
rate for each affordable unit. The Developer
shall also provide the Planning Director with
the gross income of the occupant of the afford-
able unit.
o. A provision that the City, in the event of a
breach of the agreement by the Developer, is
entitled to obtain an order of the Superior
Court commanding the Developer to specifically
perform in accordance with the agreement, as
well as interim injunctive relief restraining
further violations of the agreement.
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ADMINISTRATIVE PROCEDURES FOR
PROCESSING NEW DEVELOPMENTS
WITHIN THE COASTAL ZONE
In the event that a new housing development is proposed
within the Coastal Zone, the procedures set forth shall apply:
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
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1. The Developer shall file ar Application for a
Development Permit with the Planning DepSrtment of the City on
forms provided by the Planning Departme4 . An Application for
Development Permit shall be accompaniedyby a fee of $750.00, or
250.00 per each residential unit to'beg constructed, whichever is
greater, said fee to defray the adminidtrative costs and expenses
incurred by the City in administeringfhe provisions of these
Guidelines and State law. The Planni g Commission may approve a
reduction in the fees for projects in olving 40 or more residential
units, or for projects for which the Peveloper has requested density
bonuses pursuant to the provisions of Government Code Section 65913;
2. The Planning Director Phall determine whether the
proposed project is exempt from the4e Guidelines as provided above;
3. If the project is det
the provisions of these Guidelines,
advise the Developer of the require
in the event that the proposed proj
approval by the Planning Commissio
Development Permit, shall be referecisiooftheCityforreviewandd
rmined not to be exempt from
the Planning Director shall
ents of these Guidelines and,
ct is one which. requires an
the project, including the
d to the Planning Commission
4. The Planning Director, or the Planning Commission
in the case of a project requiring commission approval, shall
determine the feasibility of requiring the inclusion of dwelling
units affordable by persons or families of low or moderate income
within the project and on the project site. If it is determined
not to be feasible to provide low end moderate income housing on
site, the Planning Director, or the Planning Commission where
appropriate, shall determine whether it is feasible to provide
such housing at another location within the City, and within the
Coastal Zone, or within three miles of the Coastal Zone boundary;
5. In evaluating the feasibility of providing affordable
units as a part of a new housing development, and in determining
the number of affordable units to be provided once a determination
of feasibility has been made, the Planning Commission, or Planning
Director, shall consider the following factors:
a. The number of units proposed to be
constructed;
b. The provisions of the Newport Beach
General Plan, and all elements thereof,
that pertain to affordable housing;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
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c. The provisions of the ordinances, resolutions
and policies of the City which pertain Vo
affordable housing;
d. The extent to which the project proponent or
Developer has requested density bondses, the
waiver of fees, the waiver of park credits, or
similar action on the part of the' City as
incentives to provide affordable-housing;
e. The social, technical, economic, environmental
and other information related to project, the
construction of affordable hdusing, and the
mitigation measures necessavt to minimize any
adverse environmental impacts.
6. When a proposed new development is required to provide
housing units affordable by persons or families of low or moderate
income ( "Affordable Units "), the Developer shall enter into an Agreement
with the City which shall include the following provisions:
a. A description of the Oroject, including its
location and the number of units to be deve-
loped, if the property is to be developed for
residential purposes;
b. A description of the affordable units to be
provided, specifying their size, number and
location;
c. A commitment that the affordable units are and
will be made av4ilable to, persons or families
of low or moderate income;
d. That the affordable units shall be provided,
and available,for occupancy, within three
years from the date upon which the approval
for the conversion or demolition was granted;
e. A statement as to whether the affordable units
are to be sold or rented.
f. A provisioII that the Agreement be recorded
against toe property containing the affordable
units.
g. A provision that the Developer is responsible
for ensuring that the persons or families who
rent or purchase the units are properly qualified
as persons or families of low or moderate income;
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 12
h. A provision that a fair and equitable process
shall be used by the Developer to select the
persons or families entitled to rent or purchase
the units. The selection process shall, at a
minimum, provide for the following:
i) That the Developer advertise the
availability of the affordable
units;
That the Developer allow a reasonable
period of time for persons or
families to apply for purchase or
rental of the affordable units;
iii) That the Developer diligently
investigate the facts contained
in the application submitted to
ensure that the Developers are
in fact persons and /or families
of low or moderate income;
iv) Selection of the purchasers or
renters shall be made through a
random system such as a lottery.
i. A provision that, in the event of the sale or
rental of a unit to a person or family who does
not qualify as low or moderate income, the Developer
shall, within 60 days, either replace the occupants
with persons or families of low or moderate income
or provide a replacement unit, similar in size and
related characteristics to the one sold or rented
to the person or family who does not qualify.
J. A provision that the Developer enter into an agreement
with the purchaser or renter of an affordable unit
which agreement shall:
i) Obligate the purchaser or renter at
least once a year, to provide the
Developer with income information; and
Give the Developer the right, in the
event of a material misrepresentation
made by a person or family with respect
to income, either invalidate the sale of
the affordable unit or, in the event of
a rental unit, the right to terminate
the tenancy.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
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iii) Require that a "for sale" unit be sold,
within the period of time during which
the unit is to remain affordable, only
to persons of low or moderate income,
whichever is appropriate;
iv) Provide the agreement be recorded.
k. A provision that Developer, and all successors -
in- interest, maintain the units as affordable
for at least ten years from the date on which
the units are first available for occupancy,
unless the Developer can demonstrate to the
City Council that a shorter period of afford-
ability is, given the circumstances of the
project, appropriate. Any agreement that
provides for a period of affordability of less
than 10 years shall be reviewed and approved
by the City Council.
1. A provision that the City 9ball be entitled to
recover reasonable attorney's fees and costs
incurred in connection with enforcement of any
provision of the agreement.
m. A provision that the terms and conditions of
the agreement shall be.binding on the agents,
employees heirs, assigns and successors -in-
interest of the Developer.
n. A provision requiring the Developer, and
successors -in- interest, to annually submit
to the Planning Director a schedule of the
rental rate for each affordable rental unit.
The Developer shall also provide the Planning
Director with the gross income of the occupant
of the affordable unit.
o. A provision that the City, in the event of a
breach of the agreement by the Developer, is
entitled to obtain an order of the Superior
Court commanding the Developer to specifically
perform in accordance with the agreement, as
well as interim injunctive relief restraining
further violations of the agreement.
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ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION
OF THE PROVISIONS OF STATE LAW RELATIVE TO
LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 14
V
APPEALS
1. Determinations of the Planning Director or Planning
Commission, pursuant to this policy and these Guidelines, shall
be final 10 days after notice is given. Written notice shall be
deemed to have been given if a letter advising the Developer of
the determination is deposited in the U.S. mail, first - class,
postage pre -paid, and addressed to Developer at the business or
residence for Developer shown on the application for permit.
2. At any time prior to the date on which the determination
becomes final, a Developer may file, with the City Clerk of the City,
a notice of appeal, which must contain.-the facts and circumstances
regarding the action or determinationithat is the subject of the
appeal, as well as all of the contentions upon which the Developer
intends to rely at the time the appeaA is heard.
3. Within 10 days from tho date on which the City Clerk
receives a valid notice of appeal, t e Clerk shall notify the
Developer, in writing, of the time end place set for the hearing
of the appeal. The hearing shall bd scheduled within 60 days from
the date on which the notice of appal was filed.
4. The City Council may
Council may delegate the responsib
to a hearing officer, who shall co
relevant evidence, and who shall p
Council written findings and recom
shall, within 30 days from the dat
or within 30 days from the date on
recommendations are received from
decision on the appeal:
Adopted - August 9, 1982
Amended - September 12, 1983
ear the appeal, or the City
ity for conducting the hearing,
uct the hearing, receive all
pare and submit to the City
ndations. The City Council
on which the hearing is held,
hich written findings and
e hearing officer, render its
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