HAC Minutes-2007-11-2832400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
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MINUTES OF THE MEETING
OF THE
SPECIAL MEETING OF THE
HOUSING ADVISORY COMMITTEE
CITY COUNCIL CHAMBERS
NOVEMBER 28, 2007
Commission Attendance
MEMBERS OF THE CITY COUNCIL
SAM ALLEVATO
THOMAS W. HRIBAR
MARK NIELSEN
JOE SOTO
DR. LONDRES USO
Present: Mary Ann Groover, Joanne Marquez, Laura Freese, Gene Ratcliffe
(arrived at 6:48 p.m.)
Absent: Marie Buckner (excused)
Staff Present: Lynnette Lehmann, Senior Management Analyst
Grant Taylor, Assistant Planning Director
A. CALL TO ORDER — Chairperson Freese called the meeting to order at 6:05 p.m.
B. ORAL COMMUNICATIONS - None
C. MINUTES OF AUGUST 29 AND AUGUST 30, 2007 — Member Marquez made a
motion to approve the August 29 and August 30, 2007 minutes. Member
Groover seconded the motion, and the motion passed 3-0.
D. NEW BUSINESS
General Plan Amendment (GPA) 06-01, Rezone (RZ) 06-01, Architectural
Control (AC) 05-01, Tentative Tract Map (TTM) 17250, Villa Montana, a
request for approval of planning applications to allow the development of a
163 -unit multi -family, apartment complex on an existing 4.6 net acre part of
a 9.7 gross acre parcel located on the north side of Vista Montana about
370 feet west of La Pata Avenue (Applicant: Whispering Hills, LLC; Dennis
Gage)(Case Manager: William Ramsey, AICP, Principal Planner) -
Mr. Ramsey provided a staff presentation noting that the City Council had
requested that the property owner propose an affordable residential
apartment project on a 4.6 acre portion of the Whispering Hills Planned
Community. He indicated that the applicant has agreed to provide 30
percent of the units as affordable although the applicant had not yet
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Housing Advisory Committee Minutes
November 28, 2007
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provided the City with specific details on the mix of affordability based upon
income levels.
Mr. Ramsey explained that the staff recommendation regarding the
percentage of affordable units was based upon SCAG's Regional Housing
Needs Allocation applied percentages for very low, low, moderate, and
above moderate incomes for a total of 60 percent affordable units for the
project. Because the project requires a General Plan amendment and a
rezone, without these entitlements, there is no development potential other
than open space uses. If entitlements are approved, the land value will go
up accordingly. it was noted that there is no obligation to approve the
project per state law since the property currently has no remaining
residential density. Staff further recommended the following criteria for the
affordable units:
• Minimum number of units by income category shall be 35 very -low
income, 29 low-income, 32 moderate -income, and 67 above -
moderate income units.
• The initial distribution of affordable dwelling units to be distributed
equally throughout the project, (i.e. location and unit type).
• Project amenities shall be available to all tenants in the complex.
• Term of affordability to be a minimum of 55 years.
• One management company to manage the entire project.
Chairperson Freese opened the floor for public input.
Mr. Phil Schwartze of PRS Group addressed the Committee. He provided
background on the Whispering Hills project and indicated that a 4.6 acre
pad already exists on the site. Mr. Schwartze stated that they wanted to
construct approximately 130 market rate units and provide about 20 percent
of the units as affordable units with no financial assistance from the City. If
the City wants additional affordable units, Mr. Schwartze indicated that the
City could provide financial assistance to make up the gap. He discussed
the unit types, the three-story 35 -foot maximum building height, and wrap-
around parking with 289 spaces. Mr. Schwartze also proposed a 20 -year
affordability term. He pointed out that this site is not within the
redevelopment agency boundary and, therefore, not subject to
redevelopment laws. Mr. Schwartze further stated that he does not know of
any project providing 40 percent affordable units in this area and that it is in
the City's best interests to construct this project before residents move into
the neighborhood. He recommended that the Committee consider holding
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November 28, 2007
Page - 3 -
off on including very -low income units for 7-10 years until the area is more
fully developed with roads and shopping areas.
Mr. Schwartze expressed concurrence with staff's recommendations
regarding distribution of units, unit types, and equal access to all amenities.
He added that one option to help with costs would be to build smaller and
less expensive units for the affordable units. He suggested a field trip to the
City Lights project in Laguna Niguel.
Member Marquez stated that she had been to see the City Lights project
previously. She asked whether the parking is visible from the street and
noted that the Talega project in San Clemente is a good example of an
affordable project.
Mr. Schwartze noted that the parking will be visible from some areas, but
not from the project entry. He stated that the visible parking can be
adequately screened.
Susan McDevitt of Mary Erickson Community Housing addressed the
Committee. She explained that affordable projects typically utilize as much
as 13 layers of financing for an affordable project, including tax credits and
City assistance. Ms. McDevitt indicated that her organization could assist
the City with information about layered financing.
Chairperson Freese inquired whether there were other affordable projects
that were similar that the Committee could visit. Mr. Schwartze offered to
provide a listing of similar projects.
Mr. Ramsey asked the applicant to clarify for the Committee to define what
they mean by "20 percent affordable units".
Mr. Schwartze stated that they would provide 20 percent of the units for
very -low, low, and moderate income levels at the same percentage ratios as
the RHNA numbers (i.e. 33 affordable units of which 7 would be very low, 6
would be low income, 7 would be moderate, and the remainder of the units
would be market rate rents). He added that it might be more feasible to
delay the very -low income units until a later time when the area is more
developed with roads and shopping areas.
Member Marquez stated that if the project was approved with only 20
percent of the units as affordable, she would want to see all of the units at
the very low and low income levels.
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November 28, 2007
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Mr. Trevor Dale, 27781 Camino La Ronda, addressed the Committee. He
noted his concern as a high school teacher with having a project of this size
adjacent to the high school because of the potential for problems with the
students and the residents. Mr. Dale did add that he supports affordable
housing in general, but that he is very concerned about this project.
A discussion ensued regarding the need for the applicant to perform an
economic analysis and submit a pro -forma to the Committee at their next
meeting to determine the feasibility and appropriate affordability of the
project. Mr. Ramsey indicated that staff would need at least 15 days after
receipt of the pro -forma to review and evaluate it prior to scheduling it for
Housing Advisory Committee review. Mr. Schwartze concurred that they
could submit a pro -forma in time to have the Committee review it at their
next meeting on January 23, 2008.
Member Marquez made a motion to continue the General Plan Amendment
(GPA) 06-01, Rezone (RZ) 06-01, Architectural Control (AC) 05-01,
Tentative Tract Map (TTM) 17250 for Villa Montana to their next meeting on
January 23,2008 at 6 p.m. The motion was seconded by Member Ratcliffe,
and carried 4-0.
2. Consideration of the Feasibility of the City's First -Time Home Buyer
Program and Discussion of Alternative Programs and Funding Sources
(Case Manager: Lynnette Lehmann, Senior Management Analyst) —
Ms. Lehmann provided the staff presentation noting that in August, 2007,
the City Council authorized submittal of the 2007 HOME grant application
requesting funding for the City's Owner -Occupied Housing Rehabilitation
Program. The City Council noted that no funds were being requested for
the First -Time Home Buyer Program as part of the grant application. Staff
advised the City Council that the First -Time Home and requested that staff
schedule an agenda item at a future date to discuss the City's First -Time
Home Buyer Program.
Staff advised that the item was to be considered by the City Council on
December 4, 2007 following consideration by the Housing Advisory
Committee at tonight's meeting. Staff stated that the existing First -Time
Home Buyer Program had been unsuccessful due to skyrocketing market
rate home prices and the inability of homeowners to qualify for a first
mortgage loan. Due to modifications in the program by the state, staff noted
that the program could possibly become successful. However, staff
recommended lowering the amount of assistance to down -payment
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November 28, 2007
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assistance only (i.e. $10,000 or 3% of the purchase price, whichever is
greater). This would allow funds to help additional households. Staff also
recommended expansion of the existing Rental Subsidy Program to provide
for transitional housing and rental assistance to disabled households and
those with health-related issues who are unable to work. Staff also
recommended that the City pursue new affordable construction of studio
units, one -bedroom units, secondary dwelling units, and family housing. No
changes were proposed to the Owner -Occupied Housing Rehabilitation
Program.
The Committee concurred with the staffs recommendations as proposed in
the staff report and expressed concern that the rental units be supervised in
some manner regardless of whether the tenants participated in the tenant
education component of the program. The Committee also supported an
emphasis on transitional housing due to the number of households that
could potentially be displaced as a result of the pending Capistrano Terrace
Mobile Home Park closure.
There being no further discussion, Member Ratcliffe moved, and Member
Marquez seconded a motion to forward a recommendation to the
Community Redevelopment Agency to direct staff to proceed with
implementing the programs as recommended by staff in the staff report to
provide affordable housing assistance to low-income households. The
motion passed 4-0.
3. Housing Program Status Report — The Committee asked if anyone in the
audience had any questions regarding the status of any of the City's
housing programs and projects.
Mr. Trevor Dale, 27781 Camino La Ronda, inquired about the status of the
Housing Element update. Ms. Lehmann advised that the rough draft was
scheduled to be considered by the Committee in January, 2008. It was
noted that the review by the Committee would be followed by review and
comments by the Planning Commission and City Council. After receipt of
public and board and commission comments, the document would be
revised into a final draft that would then be processed for formal
consideration and hearings by the Housing Advisory Committee, Planning
Commission and City Council. If authorized by the City Council, the
document would be submitted to the State of California for review and
approval and/or comments.
Mr. Dale also expressed concern for the residents of the Capistrano Terrace
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November 28, 2007
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Mobile Home Park regarding the proposed closure of the park. He
requested that the Committee members meet with the park residents prior
to consideration of this item to hear the residents' concerns about the
lawsuit for the owner's refusal to maintain the park and the fact that these
residents will have no place to go if the park closes. Mr. Dale added that
the City has not enforced or required the owner to correct the park
violations. He asked that the City do everything possible to assist the park
residents.
The Committee members concurred that they would be willing to meet
individually with the residents.
Ms. Lehmann gave an oral report on the status of the various housing
programs and projects as identified in the staff report.
D. COMMITTEE/STAFF COMMENTS Staff advised that the City is soliciting
applications through December 7, 2007 to serve on the City's Commissions and
Committees. Staff noted that existing Housing Advisory Committee members
will need to reapply by the deadline to be considered by the City.
E. ADJOURNMENT TO JANUARY 23 2008 AT 6 P.M. — The Housing Advisory
Committee adjourned at 8:55 p.m. to January 23, 2008 at 6 p.m.
Respectfully submitted,
Lynnette Lehmann, Secretary
APPROVED: //3 / zo