HAC Minutes-2002-03-21MEMORANDUM April 2, 2002
TO: George Scarborough, City Manager
FROM: Lynnette Adolphson, Management Analyst II
SUBJECT: Housing Advisory Committee Actions of March 21,2002
This report summarizes actions taken by the Housing Advisory Committee on March 21 ,
2002. No action is required unless Council wishes to hold special review of an item.
Commission Attendance
Present:
Absent:
Staff Present:
Marie Buckner, David Nahas, Michelle Knorre, Ethel Tregarthen
Joann deGuevara, Bill Sonka (excused)
Lynnette Adolphson, Management Analyst II
Debbie Dirnu, City’s Housing Consultant
A.
B. -
C.
D.
E.
CALL TO ORDER - Chairperson Tregarthen called the meeting to order at
7:05 p.m.
ORAL COMMUNICATIONS - Ms. Pauline Leonard addressed the Committee. She
indicated her interest in the affordable housing multi-family rental project and stated
she hoped to get information from the Committee on the number of units to be
provided for very low and low income households. In addition, Ms. Leonard
requested information on the status of the rental subsidy program.
MINUTES OF AUGUST 15, 2001 - The minutes of September 17, 2001 were
approved 3-0-1, Member Tregarthen abstaining.
OLD BUSINESS - None
NEW BUSINESS
Status ReDort on Housina Proarams - Ms. Dirnu gave a report on the status of the
various housing programs. A summary of the discussion follows:
Rental Subsidy Proqram - Ms. Dirnu advised that six households are currently
receiving assistance, one household recently left the program to convert to Section
8 rental assistance through the County of Orange, and one household completed
their second year in the program in February, 2002. Three additional households
will have completed their second year of assistance in July or August, 2002. In
October, three households will be recertified and start their second year of rental
assistance.
Housing Advisory Committee Minutes
March 21,2002
Page 2
Ms. Dirnu explained that the quarterly status report from Comprehensive Housing
Services (“CHS”) included only minimal information and had not been submitted in
the required format. The information submitted by CHS shows when the tenants
began their leases, their rent payments, and the City’s subsidy payment amount.
Staff has requested that CHS resubmit the quarterly report in the required format
to provide more information on the tenants and the progress they are making toward
becoming self-sufficient. Ms. Dirnu indicated that, upon receipt of the report, the
quarterly report will be mailed to the Committee members.
CDBG Housina Rehabilitation Loan Program - Ms. Dirnu advised that the City met
its commitment to spend the 1998 CDBG grant funds within the required deadlines.
From the $500,000, approximately 37 mobile home rehabilitation loans were funded
and 42 Title 25 (health and safety repairs) grants were approved. In addition, it was
noted that the City approved 16 housing rehabilitation loans from the 1999 CDBG
grant funds. A total of $86,250 from the 1998 grant funds and $1 00,000 from the
1999 grant funds were used to purchase two modular units for a welfare-to-work
Head Start child care center located at the Community Presbyterian Church. The
facility, open since January 7,2002, is serving 42 youths up to 3 years of age. The
facility serves children whose parents live or work in the City. Ms. Dirnu advised
that all of the 1999 grant funds will be expended by the end of March, 2002, in
compliance with the state requirements. A total of $330,366 awarded from the 2001
HOME program will be used for additional housing rehabilitation loans over the next
two years.
HOME 1999 and 2001 First Time Homebuver Proaram - Ms. Dirnu stated that the
1999 grant has funded 1 1 loans thus far, and the City anticipates funding another
5 over the next year. In addition, another $255,000 from the 2001 HOME grant has
been awarded and will be used over the next several years to assist low-income
households in purchasing a home.
2002 CDBG Program ADplication - Staff indicated that there was not ample time to
prepare an application for CDBG funds this year. Ms. Dirnu added that the state did
not provide notice of funding until the first week in February, and the application
deadline date is April 12. This did not give the City enough time to put together the
application and conduct the required public hearings. However, it was noted that
the City received funds from the 2001 HOME grant that should be adequate to
continue assisting with housing rehabilitation loans. Staff indicated that the City will
most likely want to apply for both CDBG and HOME funding during the next two
years for the affordable housing multi-family rental project.
Multi-Family New Construction Proiect - Possible funding for the project was
discussed, including CDBG and HOME grants, the bond monies that had been
Housing Advisory Committee Minutes
March 21,2002
Page 3
originally designated to purchase the Community Enhancement Program units, and
developer tax credits. It was mentioned that the City Council wants the project to
be mixed units with some market rents in order to be eligible for tax credits.
However, Ms. Dirnu advised that the City Council wanted to target extremely low-
income households for the project.
Regarding the RFQ process, Ms. Dirnu indicated that the City sent out over 200
RFQs to both profit and non-profit groups and received 10 submittals. Six of the
submittals included profit and non-profit partnerships. Staff indicated that at this
time the submittals have only been reviewed for compliance with the requested
information. Staff discussed the chart showing a brief summary of the proposals
and indicated that a panel will be formed to review the submittals, conduct
interviews, and solicit background checks and research on each of the submittal
groups. Ms. Dirnu stated that she would be meeting with the Planning Director to
discuss the composition of the panel. However, she added that selection of a 10-
member panel is likely to consist of members of the Housing Advisory Committee,
Planning Commission, City staff, other cities, and the County of Orange. The
Planning Director hopes the panel will be able to select the finalist by June, 2002.
Committee member Nahas stated he was familiar with most of the groups who
submitted proposals. He briefly discussed his knowledge of the various developers
and their areas of expertise. Ms. Dirnu questioned whether any members of the
Committee would be interested in participating on the panel. The Committee
members concurred that member Nahas should be selected to participate on the
panel due to his familiarity with the developers and financing methods. Member
Tregarthen questioned whether specific income levels could be targeted for the
project. Staff stated that the City wanted to target households with 50 percent
median or less for this project and that the HOPE Plan and City’s adopted Housing
Element would also be considered in determining the approved mix of units.
Member Tregarthen requested that the City consider targeted income groups that
would make a difference in relieving neighborhood overcrowding and benefit the
City as a whole. Ms. Dirnu added that the City may want to give first priority of the
units to qualified low-income households currently residing in the City. Ms. Leonard
concurred that many people now residing in the low-income senior housing units
came from areas outside the community.
Although the new construction project will be designed for families, Ms. Dirnu
pointed out that the City cannot discriminate on who lives within the project.
Therefore, she stated that single people will reside in the project. However, the City
can impose occupancy limits and restrictions limiting the maximum size unit that can
be rented by a one-person household.
Housing Advisory Committee Minutes
March 21 , 2002
Page 4
The Committee questioned whether the City would consider locating affordable
units on more than one site. Ms. Dirnu indicated that the City will consider
alternative sites. However, the City Council has approved this site for an affordable
housing project in the General Plan, the site can accommodate up to 350 units, and
this site is not expected to generate negative responses from City residents. The
City anticipated that environmental issues with the creek and the bridge will result
in a project completion date of about five years. However, the developers’
responses all estimate that the project can be completed within three years. The
project would be required to provide affordability for a minimum of 50 years, but
many developers often provide affordability for 55 years to gain extra points towards
tax credits. Ms. Dirnu explained that the Committee would be notified within the
next few weeks about selection of the panel.
Staff advised that the City Council wants to continue the Rental Subsidy Program
until the multi-family rental project is completed. Member Nahas suggested that the
City could require a certain number of designated units be made available to
qualified tenants through the City’s Rental Subsidy Program to ensure priority of the
units to local residents.
F.
Member Tregarthen questioned the costs of the Rental Subsidy Program. Staff
indicated that $100,000 is budgeted annually for the program. This amount
includes the consultant costs to administer the program. Staff offered to mail a
breakdown of costs for this program to the Committee members.
COMMITTEE/STAFF COMMENTS - None
G. ADJOURNMENT - There being no further business, the meeting was adjourned at
9:04 p.m.
9*w& f-
Lyrdnette Adolphson, Secretary
DATE APPROVED: August 29,2002
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