HAC Minutes-2009-07-2332400 PASEO ADELANT0
SAN JUAN CAPWRANO, CA 92575
(949) 493-1171
(949) 493.1859 FAX
www sanj ancapistrano.org
MINUTES OF THE MEETING
FOR THE
HOUSING ADVISORY COMMITTEE
CITY COUNCIL CHAMBERS
July 23, 2008
MEMBERS OF THE CITY COUNCIL
SAM ALLEVATO
THOMAS W. HRIBAR
MARK NIELSEN
JOE SOTO
OR, LONDRES USO
A. CALL TO ORDER — Chairperson Ratcliffe called the meeting to order at
6:05 p.m.
B. ROLL CALL -Present: Joanne Marquez, Laura Freese, Gene
Ratcliffe, William Bonney, Mary Ann Groover
Absent: None
Staff Present: Douglas Dumhart, Economic Development Manager
Laura Stokes, Housing/Redevelopment Coordinator
C. ORAL COMMUNICATIONS - None
D. MINUTES OF APRIL 23 2008 — The minutes of April 23, 2008 were approved
unanimously.
E. PRESENTATION Homestead Friends Foundation Presentation of a Potential
Affordable Housina Development. Caaistrano Commons. (Richard Pfeiffer,
Homestead Friends Foundation)- Laura Stokes, Housing/Redevelopment
Coordinator, summarized the agenda report of the proposal received from
Homestead Friends Foundation and introduced Richard Pfeiffer, Homestead
Friends Foundation representative, to present the proposal.
Richard Pfeiffer stated that the project would be a combined effort of Homestead
Friends Foundation and The Sundstrom Company. Capistrano Commons would
provide 25-38 affordable units, for extremely low income households of
developmentally disabled adults. Through the small scale housing village, .
common areas, and the centrally located common -house, the residents will be
provided with means to improve their social networking, and develop their
lifestyle skills.
The proposed location is ideal for the. project. The adjacent amenities, including
bus stops and the health center, make the site a suitable location. The majority of
residents will use public/alternative transportation minimizing the need for
parking. The village like plan fits well on the irregularly shaped four -acre parcel.
Committee member Freese requested clarification on Foundation's, how many
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July 23, 2008
units are proposed, how many of these developments have they completed, and
if a grant can assist with the purchase of the land instead of it being donated.
Mr. Pfeiffer stated that the Foundation is primarily funded by the state. Robert
Sundstrom, co-partner of The Sundstrom Company, stated that 25 to 38 units
can be developed on the proposed site. Dennis Sundstrom, co-partner of The
Sundstrom Company, said that they have developed 1300 to 1400 affordable
housing units within Orange County, clarifying that this would be the first project
of this type, and could potentially be used as a prototype for other cities.
Committee member Bonney requested clarification on the sites suitablility for the
proposed residents, particularly the changes in grading.:
Dennis Sundstrom and Mr. Pfeiffer assured that the physical attributes of the site
would not pose any problems with the proposed project or residents.
Vice Chairperson Marquez questioned the inhabitation of the proposed project
with current San Juan Capistrano residents or employees. Committee member
Groover requested clarification on who is responsible for selecting the residents.
Mr. Pfeiffer explained that the selection of tenants was dependent on eligible and
qualified applicants and preference posed difficulties with state regulation and
stated that the California Department of Development Services handles the
placement of residents; he did however, support the acceptance of San Juan
Capistrano residents or employees who apply and qualify for the program.
Chairperson Ratcliffe requested clarification on the location of the Silverado
Senior Living.
Douglas Dumhart, Economic Development Manager clarified that the proposed
project is adjacent to Silverado and the new development's driveway would come
off Silverado's driveway. Mr. Dumhart then requested clarification from Mr.
Pfeiffer on where the on site manager would live, in a detached unit or in the
common -house, and if he/she would qualify as a low income household.
Mr. Pfeiffer clarified that the manager would live in one of the units and that there
would be no income limit to the position.
Committee member Freese motioned to encourage the applicant to further
develop the plan for the council, and to forward an endorsement of the general
proposal to council, motion seconded by Chairperson Ratcliffe, carried 5-0.
F. NEW BUSINESS -
Housing Program Status Report (Case Manager Laura Stokes,
Housing/Redevelopment Coordinator)- Ms. Stokes gave an oral report on the
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July 23, 2008
status of the various housing programs and projects as identified in the staff
report, including and update to the Little Hollywood Expansion, and the potential
postponement due to an extension of Paseo Adelanto.
Chairperson Ratcliffe questioned if the extension would reduce the number of
units and Vice Chairperson Marquez questioned the postponements effect on the
City meeting the State required Regional Housing Needs Assessment Numbers.
Ms. Stokes clarified that the roadway extension would require a postponement of
development while the units are re -plotted but not necessarily reduced and that
regardless of postponement, the completion of the units would still meet the
State provisional time limit of 2014.
Committee member Bonney requested clarification of the guidelines and number
of units within the Rental Subsidy and Little Hollywood programs, and what
benefits there are to extending Paseo Adelanto.
Staff clarified that there are ten units within the Rental Subsidy Program, which
allows applicants to pay an affordable rent and the City will subsidize the
remaining rent, to be paid to the landlord. The Little Hollywood Program consists
of 14 current units and will be adding 10 units through the extension, for a total of
24 units. This program utilizes City owned units and allows the tenants to pay the
City an affordable rent. Additionally, the roadway extension would relived a
portion of downtown traffic.
2. Consideration of Habitat for Humanity's Request for Additional Funding to
Complete Calle Rolando Affordable Housing Development (Case Manager Laura
Stokes, Housing/Redevelopment Coordinator)- Ms. Stokes summarized Habitat's
need for additional funding.
Ms. Stokes detailed staff recommendation of providing Habitat with $335,342,
and $631,174, as a 0% interest loan to be paid back on a per unit basis both
from the Community Redevelopment Agency's 20% Housing Set -Aside Funds.
Ms. Shepard, CFO of Habitat for Humanity, related Habitat's requests of the
maximum assistance available and they are unable to meet a reduced time limit.
Habitat's board had approved a 24 month build out budget with the expected
assistance, without assistance Habitat anticipates completion in 36 months.
Chairperson Ratcliffe requested clarification on the fee amounts, what Habitat
would pay back if their preferred funding was approved, what other funding
sources may be available, and supports the City assisting further.
Ms. Shepard clarified that Habitat is requesting the building permit fees totaling
$506,169 over the budget be forgiven from the City offered loan.
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July 23, 2008
Staff clarified that all city grants are for grant approved programs and activities,
and that the funding comes from the Community Redevelopment Agency's
housing funding due to the permit fees having previously been distributed.
Committee member Freese requested clarification on how City permit fees were
unknown, what funding was expected through Habitat for Humanity International,
the cost of improving Calle Rolando, and verification that Habitat is looking for
applicants for the homes from within San Juan Capistrano First.
Mark Korando, Executive Director for Habitat for Humanity Orange County,
clarified that fees were budgeted off experience with surrounding jurisdictions,
and San Juan Capistrano 2005 fees. The roadway improvements were
$830,811. Additionally, Mr. Korando explained Habitat's method of marketing
maintaining San Juan Capistrano as the target market for the project. Ms.
Shepard clarified that the Habitat International funding went to the Gulf Coast.
Vice Chairperson Marquez requested clarification of the comparison of other
jurisdictional fees to San Juan Capistrano fees, and expressed concern that non-
profit developers are paying the same fees as for profit developers.
Mr. Korando confirmed that San Juan Capistrano fee's were traditionally higher
than other jurisdiction's fees.
Committee member Bonney requested clarification of what Habitat was
requesting, and if it is a reasonable request.
Staff summarized that it would be a $125,005 loan and a $841,511 grant.
Committee Member Freese Motions to forward Staffs recommendation to Council
with the addition of forgiving $168,000 of the loan immediately, thus reducing
Habitat paid permitting fees from $46,223 per unit to $40,000 per unit, and a
possibility of further forgiveness if the project is completed by July 1, 2010. Vice
Chairperson Marquez seconded, passed 5-0.
Chairperson Ratcliffe called a break at 7:58 pm to recommence at 8:05 pm.
G. PUBLIC HEARING -Consideration of an ordinance amendinq (Title 9, Chapter
5.103) In -Lieu Affordable Housing Fees (Case Manager: Laura Stokes,
Housing/Redevelopment Coordinator)- Ms. Stokes summarized the details of the
proposed In -Lieu Affordable Housing Fee Update including and reviewed the
proposed equation to be used under the updated fee.
Public Comment: Building Industry Association of Southern California (BIA)
representative, Bryan Starr, of Irvine CA, referenced a letter addressing the
Committee dated July 22, 2008, describing the difficulties of builders and
developers within Orange County and the update could discourage future
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July 23, 2008
development. Mr. Starr suggested that the City put a moratorium on fees until the,
economy turns around. Mr. Starr requested clarification from staff on the data
source and the data updates.
Ms. Stokes clarified the data source as the annual Orange County Indicators.
Chairperson Ratcliffe requested clarification on the BIA's letter regarding the
state housing director. Chairperson Ratcliffe feels that the fee can not be
delayed, that the current fee is not adequate for its intended purpose, and that
the proposed fee update is fair to both the City and to the developers.
Mr. Starr clarified, with reference to the BIA's letter attachments, that the State
housing director discourages exclusionary housing policy, which in -lieu fees are
considered a part of.
Committee member Freese requested clarification on the fee per unit average, if
the update would affect the developers already through council, and if the
updated fee would provide funding equal to the development of an unit.
Staff clarified that the average fee is approximately $14,000, that if a
development agreement has been established by council then they are
grandfathered into the old fee, the updated fee would not provide a unit on a one
to one due to economies of scale.
Committee Member Freese motioned to forward staffs recommendation to
Council. Chairperson Ratcliff seconded, passed 5-0.
H. COMMITTEE/STAFF COMMENTS — Committee member Freese questioned the
status of Lower Rosan and the housing component of the site, and Chairperson
Ratcliff requested clarification on the difference between 4% and 9% tax credits.
Mr. Dumhart stated that the site was being master planned and the consultants
should have concept plans ready for staff at the end of September. The 4% tax
credit is guaranteed, while the 9% is determined by the project's density, location
amenities, and funding.
Chairperson Ratcliffe commended Ms. Stokes on her effort and quality of work.
F. ADJOURNMENT — The Housing Advisory Committee adjourned the meeting at
9:04 p.m. to October 22, 2008 at 6 p.m.
Respectfully submitted,
i
Laura Stokes, Secretary
APPROVED: 22-6q