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HomeMy WebLinkAbout1993-08-12; Housing Commission; MinutesMinutes of: Time of Meeting: Date of Meeting: Place of Meeting: CALL TO ORDER: HOUSING COMMISSION 6:00 P.M. August 12, 1993 CITY COUNCIL CHAMBERS Chairman Scarpelli, called the Regular Meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Avis. ROLL CALL: - Present: Chairman Scarpelli, Commissioners Avis, Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, Absent: Staff Present: None Evan Becker, Housing and Redevelopment Director Reggie Harrison, Housing Program Manager Debbie Fountain, Senior Management Analyst Leilani Hines, Management Assistant Clint Philips, Senior Management Analyst COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no requests to address the Board. APPROVAL OF MINUTES: ACTION: Motion by Commissioner Avis, and duly seconded, to approve the Minutes of the Regular Meeting of July 29, 1993, as submitted. VOTE: 8-0-1 AYES: Chairman Scarpelli, Commissioners Avis, Calverley, Escobedo, Noble, Peterson, Sato, Wellman, NOES: None ABSTAIN: Commissioner Rombotis PUBLIC HEARINGS: 1. 1993-1998 COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY -Request for acceptance of comments from the public on the City's affordable housing needs, priorities, and strategies for addressing the identified needs for the development of Carlsbad's 1993-98 CHAS. Leilani Hines, Management Assistant, reviewed the background of the request and stated that the Comprehensive Housing Affordability Strategy (CHAS) is a five-year housing development plan required by Federal Public Law 101-625, signed into law on November 28, 1990, and replaces the previous HUD Housing Assistant Plan (HAP) and Comprehensive Homeless Assistance Plan (CHAP). As of fiscal year 1992, all jurisdictions seeking direct federal assistance for housing programs are required to have a HUD-approved CHAS. The City of Carlsbad has an approved CHAS for the period October 1, 1991 to September 30, 1996; however, due to recently released 1990 census statistics on housing and population, all jurisdictions are required to submit for approval a new five-year CHAS for the period October 1 , 1993 to September 30, 1998. In order to remain eligible for CDBG funding in fiscal year 1994-95, the City of Carlsbad must submit the CHAS as of December 31, 1993. -- HOUSING COMMISSION August 12, 1993 PAGE2 The 1993-98 draft CHAS is currently in preparation. The City is receiving assistance from SANDAG and HUD, both of whom are providing guidance and census data required to complete the document. HUD regulations require that at least one (1) public hearing be held before the Housing Commission during the development period of the CHAS in order to accept comments from the community on affordable housing and housing-related services. The regulations also require a thirty (30) day public review and comment period of the draft CHAS document upon its completion. Once comments have been received, the CHAS document will be revised, as appropriate, and presented to the Housing Commission and City Council for final adoption. Ms. Hines stated that 200 notices about the public hearing were mailed out to non-profit entities in an effort to seek citizen participation and public comments, which will be accepted until 5:00 p.m. on September 13, 1993. Chairman Scarpelli opened the public testimony and issued the invitation to speak. There being no persons desiring to address the Commission on this topic, Chairman Scarpelli declared the public testimony closed and opened the item for discussion among the Commission members. Ms. Hines advised the Commission that no action was needed at this time. It was suggested that Commissioners familiarize themselves with the CHAS and bring questions or comments to the September meeting. Chairman Scarpelli requested that staff pay particular attention to ways in which the permitting process can be streamlined. Commissioner Avis requested staff to consider having a needs assessment done because the 1990 census figures are three years old. He suggested the possibility of using block grant funds to pay for the needs assessment. NEW BUSINESS: 2. PURCHASE OF REAL PROPERTY & APPLICATION FOR SECTION 108 LOAN THROUGH CDBG PROGRAM -Request for approval of Resolution Nos. 002 and 003 recommending to the City Council the purchase of approximately twenty (20) acres of real property for the specific purpose of causing the development of affordable housing and the submission of a Section 108 (CDBG) loan application to the U. S. Department of Housing and Urban Development (HUD) for the purpose of providing additional funding for the purchase of the property. Evan Becker, Housing and Redevelopment Director, reviewed the background of the request and stated that the City of Carlsbad's 1991-96 Housing Element sets forth the objective of land banking, a process used for acquiring land suitable for the development of affordable housing. The land banking concept allows the City to acquire and hold, or "bank," land in advance of approval of specific development plans for a project in order to capitalize on the availability of sites which are suitable for affordable housing and available at a reasonable price. The City currently has a balance of $880,372.30 in the CDBG Affordable Housing Acquisition Fund. If the City does not use the funds in the near future, they risk losing them due to inactivity. Staff is recommending that the City use its existing CDBG funds, in combination with a loan from HUD through the Section 108 program, to purchase the "little Bressi property'' which is owned by the Bank of America as Trustee under Declaration of Trust of Mary E. Bressi. The Aviara Land Associates Limited Partnership (ALA) currently holds an option to purchase this property which expires on October 26, 1993. The property was optioned by ALA for the purpose of developing affordable housing to satisfy its obligations to the City of Carlsbad as outlined in their lnclusionary Housing Development Agreement. If approved, the City would HOUSING COMMISSION August 12, 1993 PAGE3 exercise ALA's option, or have the option assigned to it, to purchase the property and lease it back to a for-profit or non-profit developer, on a long term basis, for the purpose of developing affordable housing. Larry Clemens, Vice President of Hillman Properties, was given an opportunity to describe the affordable housing project which ALA would like to develop in partnership with the City and Kruer/Picerne and Bridge Housing Corporation. He stated that ALA's purchase option is for $2.1 million; however, if an appraisal comes in for a lesser amount, they would attempt to negotiate the price. Mr. Clemens does not believe an appraisal will be less than $2.1 million since two years ago the property was appraised at twice that amount. Mr. Clemens was asked whether the effects of EMF had been considered due to the property being located adjacent to power lines. He replied that EMF effects had been given consideration but those involved did not feel this would have any bearing on the project financing. The Commission expressed concern as to why the City was becoming involved in this project prior to seeing actual plans. Evan Becker, Housing and Redevelopment Director, indicated that the property acquisition should be treated separate from the project. the site is a good affordable housing site and is available at this time at a reasonable price. This opportunity may not be available at a later date. Debbie Fountain, Senior Management Analyst, added that she had been contacted by HUD, who expressed concern that the City's CDBG funds had not being used. If the funds are not used in the near future, the City risks losing them. Also, the City will need to spend some of the funds in order to obtain additional funding. Evan reiterated that the most important reason for purchasing the property now is because it is a good site for affordable housing and is available at a reasonable price. Commissioner Avis requested staff to explore the possibilities regarding threat of condemnation. ACTION: Motion was made by Commissioner Rombotis, and duly seconded, to approve Resolution No. 002 recommending to the City Council the purchase of approximately twenty (20) acres of real property, Assessor' Parcel No. 215-020-15, for the specific purpose of developing affordable housing. VOTE: 9-0 AYES: Chairman Scarpelli, Commissioners Avis, Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, NOES: None ABSTAIN: None ACTION: Motion was made by Commissioner Rombotis, and duly seconded, to approve Resolution No. 003 recommending submission of a Section 108 (CDBG) loan application to the U. S. Department of Housing and Urban Development (HUD) for the purpose of providing additional funding for the purchase of Parcel No. 215-020-15. VOTE: 9-0 AYES: Chairman Scarpelli, Commissioners Avis, Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, NOES: None ABSTAIN: None Chairman Scarpelli passed the gavel to Vice Chairman Avis to carry on because he had to leave the meeting in order to catch a plane. RECESS The Housing Commission recessed at 7:33 p.m. and reconvened at 7:41 p.m. HOUSING COMMISSION August 12, 1993 PAGE4 3. SUMMARY OF SECTION 8 RENTAL ASSISTANCE PROGRAM -Information item Reggie Harrison, Housing Program Manager, gave a staff presentation on the Section 8 Rental Assistance Program and how it operates within the City of Carlsbad. He stated that the Housing Authority supports both the tenant and the landlord to facilitate affordable housing and ensure that the housing is adequate, safe, and sanitary. He reviewed the eligibility criteria and stated that there are currently 1,300 eligible applicants on the waiting list for affordable housing in Carlsbad. All applicants must be low income, i.e. 50% of the median income category. The City currently administers 473 Section 8 certificates/vouchers. With a Section 8 certificate/voucher, a tenant is only required to pay 30% of their income for rent/utilities and the voucher picks up the remaining cost. 4. SECTION 8 RENTAL ASSISTANCE PROGRAM -Request for approval of Resolution No. 004 recommending to the Housing and Redevelopment Commission (HUD) the adoption of the City of Carlsbad's revised Section 8 Rental Assistance Program Administrative Plan. Reggie Harrison, Housing Program Manager, stated that HUD requires the Housing Office to establish a formal plan to administer Section 8 certificates/vouchers. Commissioners had received copies of the Administrative Plan which was prepared by staff. ACTION: VOTE: AYES: NOES: ABSTAIN: Motion was made by Commissioner Wellman, and duly seconded, to approve Resolution No. 004 recommending to the Housing and Redevelopment Commission the adoption of the City of Carlsbad's revised Section 8 Rental Assistance Program Administrative Plan. 8-0 Vice Chairman Avis, Commissioners Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, None None 5. APPLICATION FOR ADDITIONAL SECTION 8 CERTIFICATES -Request for approval of Resolution No. 005 recommending to the Housing and Redevelopment Commission approval of authorization to the Housing Authority to submit an application to the U. S. Department of HUD for funding under the Family Unification Program for fifty (50) additional Section 8 Certificates. Reggie Harrison, Housing Program Manager, explained that additional funding for affordable housing was not available to Carlsbad last year. However, funds have recently become available which, if applied for, would enable the City to receive a total of 50 Section 8 Certificates over the next five year period. There is a federal requirement that an applicant must live within the jurisdiction of Carlsbad for 12 months before becoming eligible for a voucher. After that 12 month period, the recipient is allowed to move anywhere in the United States. The due date for the application is August 20, 1993 and the awards will be allocated in late OCtober 1993. ACTION: Motion was made by Commissioner Rombotis, and duly seconded, to approve Resolution No. 005 recommending to the Housing and Redevelopment Commission approval of authorization to the Housing Authority to submit an application to the U.S. Department of HUD, using the strongest wording possible, regarding our need for funding of fifty (50) additional Section 8 Certificates under the Family Unification Program. VOTE: 8-0 AYES: Vice Chairman Avis, Commissioners Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, NOES: None ABSTAIN: None HOUSING COMMISSION August 12, 1993 PAGES Commissioner Rombotis would like to see a certified copy of this resolution accompany our application. 6. APPLICATION FOR ADDITIONAL FUNDING FOR SECTION 8 CERTIFICATES OR VOUCHERS - Request for approval of Resolution No. 006 recommending to the Housing and Redevelopment Commission approval of authorization to the Housing Authority to submit an application to the U. S. Department of HUD to receive funding for fifty (50) additional Certificates or Housing Vouchers. Reggie Harrison, Housing Program Manager, explained the difference between this application for additional vouchers and the one previously heard in Agenda item #4. If approved by HUD, the City would receive a total of 50 additional Section 8 Certificates or Housing Vouchers over the next five year period. ACTION: VOTE: AYES: NOES: ABSTAIN: ADJOURNMENT: Motion was made by Commissioner Rombotis, and duly seconded, to approve Resolution No. 006 recommending to the Housing and Redevelopment Commission approval of authorization to the Housing Authority to submit an application to the U. S. Department of HUD for funding of fifty (50) additional Section 8 Certificates or Housing Vouchers. 8-0 Vice Chairman Avis, Commissioners Calverley, Escobedo, Noble, Peterson, Rombotis, Sato, Wellman, None None By proper motion, the Regular meeting of August 12, 1993 was adjourned at 8:32 p.m. Respectfully submitted, ~~ EVAN BECKER Housing and Redevelopment Director August 13, 1993 TO: MAYOR AND CITY COUNCIL FROM: HOUSING AND REDEVELOPMENT OF.PAR~ SUMMARY OF ACTIONS TAKEN BY HOUSING COMMISSION AT THEIR MEETING OF AUGUST 12, 19?3 On August 12, 1993, the Housing Commission held their second meeting. The following summary of actions taken during the meeting are provided for your review: 1. 1993-1998 COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHASl; Per federal requirements, this was a public hearing item to accept comments on development of the City of Carlsbad's 1993-98 CHAS. The public made no comments during the meeting. The Commissioners discussed the document and provided staff with some questions and comments to consider while developing the CHAS. 2. PURCHASE OF REAL PROPERTY & APPLICA TIONFOR SECTION 108 LOAN; The Housing Commission approved a recommendation to the City Council to authorize the purchase of approximately twenty (20) acres of real property (known as the •fitt1e Bressi• property) for the development of affordable housing. The Commission also approved a recommendation to the Council to authorize the submission of a Section 108 (CDBG) Loan application to the U.S. Department of Housing and Urban Development .for the purpose of providing additional funding for the purchase of the subject property. 3. SECTION 8 RENTAL ASSISTANCE PROGRAM ADMINISTRATIVE PLAN; The Housing Commission approved a recommendation to the Housing and Redevelopment Commission to adopt the City of Carlsbad Housing Authority's revised Section 8 Rental Assistance Program Administrative plan. 4. APPLICATION FOR ADDIDONAL SECTION 8 CERTIFICATq; The Housing Commission approved a recommendation to the Housing and Redevelopment Commission to authorize the submission of an application to the U.S. Department of HUD for funding under the federal Family Unification Program for fifty (50) additional Section 8 Certificates. 5. APPLICATION FOR ADDITIONAL FUNDING FOR SECTIONS CERTIFICATFS OR VOUCHERS: The Housing Commission approved a recommendation to the Housing and Redevelopment Commission to authorize the submission of an application to HUD to receive funding for fifty (50) additional Certificates or Housing Vouchers under the fair share allocation for housing authorities in San Diego and Los Angeles County. The next meeting of the Housing Commission is scheduled for September 9, 1993 at 6:00pm in the City Council Chambers. cc: City Manager Assistant City Manager Financial Management Director Assistant to the City Manager City Attorney Community Development Director Department Heads