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HAC Minutes-2007-11-2832400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAx www.sanjuancapistrano.org 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 San Juan Capistrano: Preserving the Past to Enhance the Future Z) Printed on 100% recycled paper Housing Advisory Committee Minutes November 28, 2007 Page -2 - 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 Housing Advisory Committee Minutes 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. Housing Advisory Committee Minutes November 28, 2007 Page - 4 - 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 Housing Advisory Committee Minutes November 28, 2007 Page - 5 - 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 Housing Advisory Committee Minutes November 28, 2007 Page 6 - 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