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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 C \MyFi~es\HOUSINGVIAC\MIN32102 wpd