HAC Minutes-2004-07-04u 32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493- 1 17 1
(949) 493-1053 FAX
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MEMBERS OFTHE CITY COUNCIL
SAM ALLEVATO
DIANE L BATHGATE
WYATr HART
JOE SOT0
DAVID M SWERDLIN
MINUTES OF THE MEETING
OF THE
SPECIAL MEETING OF THE
HOUSING ADVISORY COMMITTEE
JULY 7,2004
Commission Attendance
Present:
Absent: David Nahas (excused)
Marie Buckner, Joann deGuevara, Michelle Knorre, Howard
Langhans, Gene Ratcliffe, Joanne Marquez
L Staff Present: Lynnette Adolphson, Management Analyst II
Molly Bogh, Planning Director
A. CALL TO ORDER - Chairman Knorre called the meeting to order at 7:02 p.m.
B. ORAL COMMUNICATIONS - Chairman Knorre noted that she was moving Agenda
Item C (Oral Communications) to follow Item F, the workshop scheduled
presentations.
C. MINUTES OF APRIL 21.2004 - The minutes of April 21,2004 were unanimously
approved as submitted.
D. NEW BUSINESS
Election of Chairman and Vice Chairman - Chairman Knorre turned the meeting
over the secretary. Ms. Adolphson opened the floor for nominations for Chairman
of the Housing Advisory Committee. Member Knorre nominated Gene Ratcliffe for
chairman. Member Buckner seconded. There being no further nominations, a vote
was taken, and the Committee unanimously elected Gene Ratcliffe as the new
chairman.
San Juan Capistrano: Preserving the Past to Enhance the Future
Special Meeting of the
July 7,2004
Page 2
v Housing Advisory Committee
Chairman Ratcliffe opened the floor for nominations for Vice-chairman of the
Housing Advisory Committee. Member deGuevara nominated Member Nahas, and
the nomination was seconded by Member Langhans. The Committee unanimously
elected Member Nahas as vice-chairman.
E. HOUSING WORKSHOP
1. Affordable Housina Delivery in Oranae Countv: Demographics and a
Rationale for Action - Ms. Victoria Basolo, Ph.D., AICP, Associate Professor
in the Department of Planning, Policy and Design at the University of
California, Irvine, provided a power point presentation to the Committee. The
presentation included information regarding the following:
Population increases, including immigration numbers;
New housing Units, such as homeownership, rentals, vacancy rates,
Employment statistics and patterns, including employees, employers,
median value of homes, rent increases, overcrowding, and Regional
Housing Needs Assessment requirements;
unemployment, Orange County job industry, and income/poverty
levels; and Regional outlook and recommendations.
Ms. Basolo summarized that since 1990:
e
e
Housing grew 18.1% ;
Residential building permits decreased, and multi-family dwelling units
significantly decreased;
Vacancy rates are extremely low (1% for ownership and 3% for
rent a Is ) ;
Median value of ownership dwelling units increased 7%;
Rents increased 18%;
Overcrowding increased 15.7%;
92.8% of residents live and work in Orange County;
Employees grew only 3.59%;
Unemployment increased slightly; and
Residents work in a variety of jobs, although the pattern of residents
by type of occupation is uneven.
In response to questions from the public, Ms. Basolo discussed the liability
surrounding condominium developments and tax laws that had discouraged
multi-family housing. Further, Ms. Basolo pointed out that Proposition 13
also impacted building of multi-family units. She noted that cities were
Special Meeting of the
July 7,2004
Page 3
- Housing Advisory Committee
reluctant to build if taxes could not provide service levels. Finally, Ms. Basolo
discussed the possibility of modifying the CEQA process to make it easierfor
builders to build more affordable units. Developers will build what makes
them the most profit rather than what the city needs.
Mvths and Facts About Affordable Housing - Ms. Holly Benson, Housing
Developer with Mercy Housing California, provided a power point
presentation about the myths and facts surrounding affordable housing. The
presentation included information about maximum low and very-low income
levels based upon the county median, design standards, and the fact that
affordable housing is not less expensive to construct. Ms. Benson showed
a variety of affordable housing projects to dispel the myths surrounding
affordable housing, including:
Affordable projects are ugly
Affordable projects lower property values
Affordable projects create an increase in crime
Affordable projects are poorly managed
Affordable projects are not good neighbors
Ms. Benson pointed out that 61 % of renters overpay for housing costs, 13%
of the residential units are overcrowded, and 25% of residents would qualify
for affordable housing based upon their income.
F. ORAL COMMUNICATIONS
Chairman Ratcliffe opened oral communications. Mr. Mark Korando of Habitat for
Humanity had requested to speak, and Chairman Ratcliffe invited him to address
the Committee. Mr. Korando gave a power point presentation showing a number
of Habitat for Humanity’s home ownership housing projects. He summarized the
following information:
Affordability of the units is guaranteed through resale restrictions (i.e. 60-year
first right of refusals);
Habitat requires potential owners to provide volunteer labor;
Property is restricted to prohibit transfer of property to any other person or
heir;
Habitat constructs projects from 1 unit (i.e. infill properties) to I00 units;
Litigation precluded multi-unit for sale construction;
Legislation now limits the ability of multi-unit developers to go back and
remedy issues;
Habitat anticipates a change in the number of multi-units constructed;
Habitat supplies the loans for all affordable housing so terms can be
c
Special Meeting of the
July 7, 2004
Page 4
./ Housing Advisory Committee
adjusted per each loan;
Habitat can fit into the community and boost the economy; and
Population is growing, and cities need to provide housing. 0
Ms. Laura Archuletta of Jamboree Housing addressed the Committee. She
indicated that Jamboree Housing provides a variety of affordable housing types
from ownership to rentals, including the Talega affordable housing project in San
Clemente. Ms. Archuletta questioned the earlier comments regarding regional
housing strategies and stated it really comes down to taking responsibility for
looking at the needs of the community, providing housing for the full range of
income levels, looking at the businesses, and ensuring that those workers can
afford to live in the community. Ms. Archuletta pointed out that the financing gap
for home ownership projects is usually double because of the inability to sell tax
credits.
L
Ms. Bogh stated that the City needs to provide 201 units of low and very-low income
housing by 2006. The City has investigated a variety of methods to meet those
needs, including site studies for rentals, home ownership, and upgrades of existing
structures. Ms. Bogh indicated that the City staff needs the Committee’s help and
recommendations for meeting the City’s housing goals.
Ms. Bogh stated that at the next meeting on July 21, 2004, the City staff will be
scheduling the draft Site Feasibility Study conducted by Mercy Housing California
for the Committee’s review.
G. COMMlTTEElSTAFF COMMENTS - Chairman Ratcliffe thanked Member Knorre
for serving as chairman over the past year. Member Marquez requested information
on the UCI web site. Ms. Adolphson indicated that she would email this information
to her.
H. ADJOURNMENT - There being no further business, Chairman Ratcliffe adjourned
the meeting at 8:45 p.m. to July 21, 2004, at 7 p.m. in the City Council Chambers.
QdW
Lyndette Adolphson, Secretary
DATE APPROVED: July 21,2004
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