96-0402_CRA_Minutes_Regular Meeting185
APRIL 2, 1996
REGULAR MEETING OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment
Agency was called to order by Chairman Swerdlin at 7:18 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: David M. Swerdlin, Chairman
Carolyn Nash, Vice Chairman
Collene Campbell, Director
Wyatt Hart, Director
Gil Jones, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; William Ramsey, Acting Deputy
Director; Richard K. Denhalter, Agency Counsel; Cynthia L. Pendleton, Finance Officer; Cheryl
Johnson, Agency Secretary; William Huber, Director of Engineering and Building Services, Joe
Arranaga, Director of Public Lands and Facilities.
It was moved by Director Jones, seconded by Director Hart, that the staff recommendations be
accepted for the following items listed on the Consent Calendar. The motion carried by the following
vote:
AYES: Directors Jones, Hart, Nash, Campbell, and Chairman Swerdlin
NOES: None
ABSENT: None
&I V V, welanallf
The Minutes of the Regular Meeting of March 5, 1996, were approved as submitted.
2. RECEIVE AND FILE WARRANTS OF MARCH 13. 1996 (300.30)
The List of Demands dated March 13, 1996, in the total amount of $16,286.23, was ordered
received and filed.
3. RECEIVE AND FILE CASH BALANCES BY FUND FOR FEBRUARY- 1296 (330.50)
The Finance Officer's Report of Cash Fund Balances for the month of February, 1996 in the
total amount of $-346,165.75, was ordered received and filed.
CRA Minutes -1- 04/02/96
IM
.... • • UI P-latEligisioluT13115 all WITI1.. • • i Ewa WSJr %.
As set forth in the Report dated April 2, 1996, from the Executive Director, the Chamber of
Commerce's request to use the Love House Parking Lot for their Cinco de Mayo Celebration
on May 4, 1996, featuring a Chili Cook -off contest, was approved subject to submittal of a
Special Activities Permit application and an Alcoholic Beverage Permit application.
1: a i
.... i 1' 1�1... • UI lif 0 i • /tel' . •Ui Ian :..
..r .. ..i i J. i l- r - 1
Written Communications
Report dated April 2, 1996, from the Deputy Director, forwarding the Rules, Policies and
Procedures for the First Time Homebuyers Downpayment Assistance Program. The First
Time Homebuyer Downpayment Assistance Program Rules, Policies and Procedures
contained the following 10 elements: (1) Property Location - the Capistrano Villas and the
Casa de Capistrano neighborhoods would be targeted; (2) Household Eligibility
Requirements; (3) Maximum Purchase Price - there would be a cap of $130,000; (4)
Downpayment Loan Limits and General Terms; (5) Eligible Borrowers/Borrower Priority;
(6) City/Agency Loan Processing Provisions; (7) Terms of the City's Second Mortgage Loan;
(8) Resale/Recapture Provisions; (9) Occupancy Limitations; and, (10) Maintenance of the
Unit - provisions were included for a yearly inspection. Staff estimated that approximately
$300,000 would be available for the initial phase of the program from HOME funds and
matching Agency funding.
David Silva of Ralph Castenada and Associates, 8272 Elmcrest Lane, Huntington Beach,
made an oral presentation. He advised that the Program had been designed around Federal
HOME rules, Fannie Mae Guidelines, and the City's desire to create a First Time Homebuyers
Program. He discussed the eligibility requirements and noted that 25% of the City's First
Time Homebuyer funds would be available City-wide; 75% would be available in the target
neighborhoods. He stressed there would be no relocation involved; potential homebuyers
would be looking for vacant units or units occupied by willing sellers to avoid relocation
issues. Maximum City assistance would be available up to 22% of the purchase price, not to
exceed $20,000 and would be in the form of a zero interest second mortgage or deferred loan.
Repayment would be triggered upon resale of the property.
Director Comments/Questions:
Director Jones inquired about the applicant eligibility priority list and was advised that the 5
priorities were set according to Federal guidelines. Director Nash inquired about enforcement
and was advised that the buyers would be required to sign Conditions, Covenants and
Restrictions and violation of the agreement with the City would result in forfeiture of the
property and immediate repayment of the Downpayment Assistance Loan. He further noted
that the lender required the homebuyers to attend workshops to acquaint the homebuyers with
the program rules. Director Jones inquired about occupancy limitations. Mr. Silva noted that
occupancy limits would be addressed through the requirement for yearly inspections and that
HUD occupancy guidelines would be followed, which were more restrictive.
CRA Minutes
-2- 04/02/96
187
Public CoMMent:
Pauline Leonard, representing the Mary Erickson Foundation and the San Juan Advocates,
27589 Brookside Lane, spoke in support of the proposed program. She noted however, that
the Mary Erickson Foundation's main concern was with the number of units available and with
creating additional affordable housing; this Program only reallocated existing housing.
Adoption of Policies. R 1 P r- First Time Homebuyers.
Assistance Proizram:
It was moved by Director Nash, seconded by Director Jones and unanimously carried to
adopt the Policies, Rules and Procedures for implementing the First Time Homebuyer
Downpayment Assistance Program.
1 W,
None. The item listed on the Agenda was withdrawn from consideration.
ulliu Mu a
There being no further business before the Board, the meeting was adjourned at 8:24 p.m. to the next
regular meeting date of Tuesday, April 16, 1996, at 7:00 p.m., in the City Council Chambers.
Respectfully submitted,
CHERYL JOHNSOWAGENCY SECRETARY
ATTEST:
7
tF
DA . SWER15LIN, CHAIRMAN
CRA Mimites -3- 04/02/96