Loading...
96-0917_CRA_Minutes_Regular Meeting227 SEPTEMBER 17, 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 7:40 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, Thomas Tomlinson, Deputy Director; Richard K Denhalter, Agency Counsel/City Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; William Huber, Engineering and Building Director; Joe Arranaga, Public Lands and Facilities Director, Al King, Jr., Community Services Director; Lt. Paul Sullivan, Chief of Police Services; Nancy Bernardi, Recording Secretary. 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 Campbell, Hart, Jones, Nash, and Chairman Swerdlin NOES: None ABSENT: None } APPROVAL OF COMMUNITY REDEVELOPMENT AGENCY MINUTES - REGULAR MEETING OF AUGUST 20,.1996 The Minutes of the Regular Meeting of August 20, 1996, were approved as submitted. Director Nash abstained due to her absence at the August 20 meeting. CRA Minutes -1- 9/17/96 228 The List of Demands dated August 28, 1996, in the total amount of $327,878.17 was received and filed. Wommiffa,12113 ail 01LUX is) Wel a : a' o I►►/ MUNUT MeI ETWO MAM"EvAmMom The Finance Officer's Report of investments as of August 31, 1996, in the total amount of $645,971.79 was received and filed. Written Communication: Report dated September 3, 1996, from Jennifer Murray, DPA, Assistant to the City Manager, recommending that the proposed program be approved in concept to address overcrowding conditions and other problems at the Capistrano Villas and Casa de Capistrano neighborhoods. The program proposed to: 1) permit the Community Redevelopment Agency to acquire vacant homes in targeted neighborhoods from the Federal Housing Administration (FHA), 2) lease the units to qualified low-income tenants for short periods of time, and 3) resell the units to these tenants. It was anticipated that the transition to private ownership would be approximately 12 months; at the time of purchase, the Agency would retain a silent second mortgage on each property, which would prevent the unit from being resold at a price which would contribute to lower market values. The Report also recommended that Council authorize staff to solicit the services of a qualified, non-profit housing corporation to provide management oversight of the program. This item was continued from the meeting of September 3, 1996, to allow staff to address the issues raised at that meeting to provide additional information with regard to the rental program and potential for recouping money through the second trust deed. Jennifer Murray, DPA, Assistant to the City Manager, made an oral presentation. She anticipated that staff could return with recommendations for hiring a non-profit housing manager at the meeting of November 17, 1996. Public Comments: (1) Phyllis Orgeich, 26522 Calle San Francisco, spoke in support of the proposed program. She felt the program would resolve existing problems such as vandalism, over -crowding and empty HUD units and urged that the Request for Proposal process be approved to avoid further delays. CRA Minutes -2- 9117/96 229 (2) Mario Pena, 32224 Paseo Carolina, representing the Casa de Capistrano Board of Directors, spoke in opposition to the proposed program. He felt the program would be "giving away" the units. He expressed concern that the Agency would be unable to enforce certain program regulations, stating that the City was currently unable to enforce its property maintenance standards ordinance. He indicated that should this program be approved, the Casa de Capistrano Board did not want to be a part of it. (3) Bill Hill of Mission Realtors, 31501 Camino Capistrano, felt the program was ill- conceived because HUD property was already being sold to homeowners rather than landlords. He submitted information obtained from a title company showing that HUD recently sold six units in Casa de Capistrano, not to landlords, but to homeowners who were qualified by HUD for only $100 down, and that 21 out of 22 sales in the Capistrano Villas were to homeowners, with only one unit sold to a landlord. He questioned why the property targeted for purchase was only HUD property and not other vacant properties owned by other types of institutions. He questioned the intent regarding occupancy levels. He expressed concern that the program would decrease property values that have finally leveled off in the area. (4) Janice Palermo, 31565 Los Rios Street, resident/owner, spoke in opposition to the proposed program. She urged that the item be again continued to find better solutions and to allocate the money in ways which would address the real issues in the neighborhood. She expressed concern that the program would cause residents currently "living on the edge" to give up, resulting in a decline in property values. She cited her support of educating people coming into the community, but did not support the City becoming involved with "government housing." (5) Frederick Jenner, Government Affairs Manager for the South Orange County Association of Realtors, 25552 La Paz, Laguna Hills, expressed concern about the Community Redevelopment Agency managing the program as proposed and suggested that this issue be further studied. He felt that the recent upturn in the real estate market would resolve many of the issues without the program. (6) Jessica Dean, 27032-C Paseo Burladero, representing the Mary Erickson Foundation, noted that the Foundation recently received two grants totaling $14,000 to fund a tenant education program at the properties owned by the Foundation in San Clemente. She noted that their program in San Clemente included management of the units but did not include selling units to the tenants. She emphasized the importance of a tenant education program and offered to share the information from their program in San Clemente with the management company selected for San Juan Capistrano's program. (7) Rosa Hernandez, realtor with Remax in the South County area, suggested that monies for this program be used to increase the City's Housing Assistance Program to encourage first-time homebuyer sales in San Juan Capistrano. She noted her company had written two more offers this week under the City's Housing Assistance Program, CRA Minutes -3- 9117196 230 which has no limit on the number of units eligible for assistance and has no management oversight fees. She felt the problems of overcrowding and clean-up were the problems that should be addressed. She stated that many existing homeowners would choose to leave if the price of their unit dropped because of government -involved housing. She advised that HUD would be unable to sell units under the City's Housing Assistance Program because of the repairs that are required. (8) Diane Ramirez, resident/owner at 32185 Paseo Carolina, spoke in opposition to the proposed program. She stated that the City has been unable to provide assistance to homeowners who have requested help with problems in the neighborhood. She noted she was informed about the proposed program through a newspaper article and that the publicity was very disappointing and upsetting to homeowners. She requested that this matter be continued for further study and to ensure proper notification to all homeowners affected. (9) Patricia Feeney, 26414 Paseo Pamela, advised she purchased her unit in Casa de Capistrano in 1975 and expressed concern regarding how living conditions have declined in the neighborhood. She noted she is on the homeowners Board of Directors, which has done everything it can, with the City's help, to halt the decline in her neighborhood. She also expressed concern about the impact of the proposed plan on property values in the area, controlling the number of people living in the units, and whether notification of inspections would be given in advance which would allow people to alter the condition of their units temporarily. She requested that the homeowners Board of Directors be permitted to provide their input in this matter before a decision is reached. Director Nash noted that this type of program had not been developed for low-income housing, but to improve conditions in these two neighborhoods by reducing overcrowding and related problems, thus reducing the amount of money spent on law enforcement to respond to problems in the area. She emphasized that the program was a response to problems brought to the attention of the City and the primary reason was not to provide low- income housing but to develop a process to improve the neighborhoods, restore economic value to the area, and to turn the communities around by attracting people who would be willing to spend the time and effort to make the communities prosperous. She emphasized there was no intent to operate a housing project or have the Agency involved for a long period of time. She felt that the proposed program would address the concerns expressed by homeowners. Ms. Murray emphasized that addressing the overcrowding problem in these neighborhoods was the key to the proposed program. According to information provided to staff from the City's housing consultant, documents from the Fair Housing Administration, and other government documents, the City would be able to enforce occupancy limits with the use of additional tools not available to the private sector but available only through programs similar to that proposed. She noted this information had been verified by different sources. The homeowner will acknowledge WAer understanding of the requirements when they sign their CRA Minutes -4- 9117196 231 lease agreement. She advised that the non-profit property management company to be hired would be on-site frequently to ensure compliance with the lease agreement and CC&R's. She noted this company would be given as much control as possible in managing the tenants. The company would also receive input from the homeowners association and provide the Community Redevelopment Agency with regular updates. She emphasized the importance of educating the new homeowners with regard to budgeting, compliance with regulations, and pride of home ownership. She explained that once the unit is sold, a second mortgage would be placed on the property to ensure that the property is not resold at less than the current market value of other properties, and the grant deed would require the occupancy limits to continue. She stated that should the number of people in a unit exceed the allowable limit, such as through the birth of a baby, an exception could be requested. Mr. Scarborough advised that the Community Redevelopment Agency has the option to acquire the units that have been foreclosed at a 30% discount from the private sector price. The Agency would retain ownership of the unit for a period of 12 to 18 months to ensure that the tenant was qualified as a homeowner. If the tenant met the criteria, the unit would then be sold and the Agency would assume the second mortgage. When the unit was again sold and the second mortgage paid ofd the Agency would then have the funds to purchase another unit under the program, allowing the program to continue without the need for additional funding. Director Jones emphasized that the goal of the program was to instill pride of ownership through educating people that had never owned a home previously and to establish individual families in these units. He noted that a prospective homeowner in the program would be required to be employed, provide proof that he/she can pay their bills, etc. He stated that the intent of the proposed program was not to provide "government housing" and emphasized he had always had the best interests of the people in these neighborhoods in mind. He felt that property values would eventually increase when people move in who care and become part of their community. Director Hart felt that this matter should be continued so that the affected residents could be properly informed, have a clearer understanding of the proposed program, ask questions, and provide their input. He urged staff to work with the homeowners associations and set up meetings to accomplish this. Director Campbell noted she had many concerns and unanswered questions about the proposed program; however, she felt the recommended action would only provide for staff to continue working on the program. She expressed concern with the Agency purchasing more real estate and not resolving the real problems. She questioned whether it was right for a local government to try and control occupancy when the federal government would not. She felt that the important issue of occupancy limits should be addressed at the federal and State levels. She suggested that staff forward a request to the League of California Cities and Congress urging them to introduce a bill that would address density issues. CRA Minutes -5- 9/I7/96 232 Chairman Swerdlin indicated he still had a lot of questions about the program and felt that the matter should be continued to address outstanding issues and to receive input from residents. He felt that there was not yet a clear picture of what was being dealt with and the "real" problems were population density, lack of knowledge regarding home ownership, and lack _ of enforcement of CC&R's. He felt that the free market should be allowed to improve these communities, noting that banks and other lenders require purchasers to meet certain qualifications. He questioned whether non-profit agencies could really do the job better than private enterprise. He suggested that portions of the proposed program could be incorporated into the City's HOPE and HOME programs. Director Jones felt that the majority of problems in the Capistrano Villas are caused by absentee owners who purchase units for speculation. He emphasized his belief that the solution to these problems was through the proposed program, which would encourage owner occupation of the units and educate homeowners on proper maintenance and other issues. He stated he would not be in support of the program if he felt it would be detrimental to the residents or the community. Director Nash concurred. She felt that the proposed program was a good one and needed to be implemented as soon as possible. She stated that many of the Agency's and residents' concerns and questions, as well as financing issues, would be answered by the non-profit organization and financial consultant to be retained. She emphasized that approval of this program would be m concept only to allow the Request for Qualification process to proceed and to determine what the final program should be, during that time input will be received and if it was determined that it would not work then something else would be done. Director Campbell emphasized that her approval would be for a conceptual program only in order to obtain answers to her questions, and further emphasized that it was very important to obtain input from homeowners. Mr. Scarborough stated that after input from residents and a thorough review of the concept plan by the consultants, a final program would be prepared and presented for final approval by the City Council. Chairman Swerdlin expressed concerns that the concept plan, which he felt was flawed, would be used as a guideline and ultimately become the final product. He noted that HUD often takes back units which then sit vacant for months and become the source of criminal activity. He felt more problems occur when the government is involved, despite good intentions. Conceptual Approval of Low/Moderate Income Housing Program and Authorization to Receive Bids: It was moved by Director Nash, seconded by Director Jones, that the proposed program be approved in concept to 1) permit the Community Redevelopment Agency to acquire vacant homes in the Capistrano Villas and Casa de Capistrano neighborhoods from the Federal Housing Administration, 2) lease the units to qualified low-income tenants for short periods of time, and 3) resell the units to these tenants. Staff was authorized to solicit proposals from CRA Minutes 9/17/96 233 qualified, non-profit housing corporations, through the Request for Qualifications process, to provide program management services. Staff was directed to meet with residents and receive input about their concerns during the Request for Qualifications process. The motion carried by the following vote: AYES: Directors Jones, Nash and Campbell NOES: Director Hart and Chairman Swerdlin ABSENT: None It was moved by Director Nash, seconded by Director Jones, and unanimously carried to find that the following item was not available prior to publication of the Agency agenda and consideration was necessary at this time. AUjb=Wjgn to Forward B= -I= for Involvement by L&ague of California Citiea MW Congressmao Packard: It was moved by Director Campbell, seconded by Director Jones, and unanimously carried that staff be directed to forward a request to the League of California Cities asking them to work on convincing the State legislature to establish occupancy standards that are acceptable for any city in the State. If no response is received from the League, the Agency will work to sponsor legislation. Direction to Staff: Staff was directed to draft a Resolution for City Council approval to Congressman Ron Packard requesting that he sponsor legislation establishing occupancy standards at the federal level. Ii 0:131WM • IIA 21MUM : : 01M lciej M10 -am • -M 03:4.1 ; ► 1140011M Y4 I I Q I Mi: w , Written Communication: Report dated September 17, 1996, from the Finance Officer, recommending that the formal bid process be waived and that the firm of Fieldman, Rolapp and Associates be retained as the Agency's financial advisor, per Schedule "A," Schedule of Fees, for proposed debt issuance relating to low- and moderate -income housing. A212roval of Agreement for FiDNIdal Advisor Services: It was moved by Director Nash, seconded by Director Jones, and unanimously carried that the contract with Fieldman, Rolapp and Associates be approved per Schedule "A," Schedule of Fees, for proposed debt issuance relating to low and moderate income housing. The CRA Minutes -7- 9/17/96 234 Executive Director was authorized to execute the appropriate agreements after review and approval by the Agency Board. The Board recessed to the Council meeting at 9:03 p.m, and reconvened in Closed Session at 9:40 p.m. for: Conference with Real Property Negotiator per Government Code Section 54956,8 for property known as the Old Elementary School site located at the corner of El Camino Real and Acjachema, Parcels A and B on Parcel Map 80-853, and related parcels, with the Capistrano Unified School District as the negotiating party, to consider price and terms of payment; 2. Conference with Real Property Negotiator per Government Code Section 54956.8 for Assessor's Parcel Nos. 121-240-020 and 121-240-139, with Solag as the negotiating party, to consider price and terms of payment; Conference with Real Property Negotiator per Government Code Section 54956.8 for the following addresses and negotiating parties in Little Hollywood to consider price and terms of payment: a. 26571 Ramos Street (Wattenburg) 2 adult tenants - Rehab complete b. 26587 Ramos Street (Hawk) l adult tenant - Rehab complete C. 26604 Mission Street (Yorba) 2 adult & 2 minor tenants - Rehab complete d. 26590 Mission Street (Sanchez) 1 adult tenant - Rehab planned e. 26580 Ramos Street (Garcia, R.) 2 adult & 2 minor tenants - Rehab planned f. 26510 Mission Street (Rosales) 2 adult & 2 minor tenants - Re -build planned g. 26513 Mission Street (Mendez 2 adult tenants - Re -build planned h. 26581 Mission Street (Juarez) 2 adult tenants - Re -build planned i. 26599 Mission Street (Martinez T.) 2 adult & 3 minor tenants - Re -build planned j. 26595 Mission Street (Martinez J.) 2 adult tenants - Rehab planned k_ 26519 Mission Street (Garcia J.) 2 adult & 2 minor tenants - Re -build planned 1_ 26603 Mission Street (no tenant) - Re -build underway M. 26511 Mission Street (Alarcon) 2 adult tenants - Rehab planned 4. Conference with Legal Counsel, Existing Litigation, per Government Code Section 54956.9, for the case known as McLaughlin, etc., et al v San Juan Capistrano Community Redevelopment Agency, et at, and 5. Conference with Legal Counsel, Anticipated Litigation, per Government Code Section 54956.9(b), for significant exposure to litigation in two cases, and Government Code Section 54956.9(c), the initiation of litigation in two cases. The Agency Secretary was excused therefrom, and the meeting reconvened at 10:15 p.m. CRA Minutes -8- 9/17/96 235 Mr. Denhalter advised there was no action to report on any of the items. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 10:15 p.m. to the next regular meeting date of Tuesday, October 1, 1996, at 7:00 p.m. in the City Council Chamber. Respectfully submitted, C]HERYL JOWSONLAGENCYSECRETARY ATTEST: DAVID M. SVVERDLIN, CHAIRMAN CRA Minutes -9- 9/17/96