HomeMy WebLinkAbout1997-02-13; Housing Commission; Minutes..
Minutes of: HOUSING COMMISSION
Time of Meeting: 6:OO P.M.
Date of Meeting: FEBRUARY 13,1997
Place of Meeting: CITY COUNCIL CHAMBERS
CALL TO ORDER:
Chairperson Calverley called the Regular Meeting to order at 6:OO p.m.
PLEDGE OF ALLEGIANCE:
The pledge of allegiance was led by Commissioner Schlehuber.
ROLL CALL:
Present: Chairperson Calverley, Commissioners Escobedo (late), Noble, Rose, Scarpelli,
Schlehuber, Walker, and Wellman (late)
Absent: Commissioner Sat0
Staff Present: Evan Becker, Housing and Redevelopment Director
Debbie Fountain, Senior Management Analyst
Leilani Hines, Management Analyst
APPROVAL OF MINUTES:
ACTION: Motion by Scarpelli, and duly seconded, to approve the Minutes of the
Regular Meeting of November 14, 1996, as submitted.
Calverley, Noble, Rose, Scarpelli, Schlehuber, Walker
VOTE: 6-0-0
AYES:
NOES: None
ABSTAIN: None
COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA:
There were no comments from the audience.
NEW BUSINESS:
1. 1997-98 HOME PROGRAM - Request for approval of a recommendation of projects and
funding allocations for the City of Carlsbad’s 1997-98 HOME Investment Partnership
Program.
Leilani Hines stated that on June 11 of 1996, the City Council approved Carlsbad’s continuing
participation in the County’s HOME Consortium, and as a result of the City’s participation in this
HOME Consortium for fiscal year 1997-98, the City of Carlsbad is entitled to receive $197,052 in
HOME funds.
Ms. Hines stated that HOME funds can be used to increase affordable housing opportunities for
lower income persons through such activities as housing acquisitionhehabilitation; housing
rehabilitation; new construction of housing; rental assistancelsecurity deposit assistance; and
home buyer assistance.
Housing Commission Minutes
February 13,1997
Page 2
In response to the City’s “Request for Proposals,” the City received a total of 31 proposals for
both CDBG and HOME; but only two of the proposals were for HOME dollars. These proposals
include one for single-family rehabilitation, sponsored by the City of Carlsbad Housing
Department. The rehab program is requesting the full $1 97,052 to assist eight lower-income
households, seven of which would be for single-family homes and one mobile home. This
program is an existing program that the City has administered by the County of San Diego.
The second proposal is SEWJobs for Progress Home Ownership Purchase and Education
program (HOPES). Ms. Hines stated that HOPES is requesting approximately $206,000, which is
the full funding amount of available funds. They would assist 60 low-income residents to
participate in an education and counseling program, of which eight persons will qualify for a loan,
and HOPES would provide down payment and closing costs assistance. Ms. Hines stated that
this represents a new program for SER.
Ms. Hines stated that both of these proposals meet a priority detailed within the City’s
Consolidated Plan and also support objectives of the Housing Element. Ms. Hines added that the
single-family residential program represents a much more desirable component of the City’s
efforts of creating or maintaining affordable housing.
Ms. Hines stated that SEWHOPES’ proposal offers both home buying education and counseling
as well as down payment and closing cost assistance to those who are able to qualify for a home.
Currently there are other efforts to provide such programs, such as non-profit organizations,
consumer credit counselors as well as San Diego Home Loan counseling that provides certified
classes on a limited-type basis in terms of fees and location. Currently, for-sale inclusionary
projects, such as the Sambi project, are required to provide or arrange for such home buyer
education and counseling programs as it relates to the purchase of their housing product.
Ms. Hines explained that the Carlsbad Home Buyer Assistance program provides first-time home
buyers with silent seconds and provides home buyer education and counseling. Bank of America,
administrators of the CHAP, are willing to make available zero down or low down-payment
opportunities as well as low closing costs.
Ms. Hines said that there are local, private lenders who have approached the City to provide the
same type of home-buyer education and counseling at no cost or minimal cost related to the cost
of materials.
Currently for the single-family residential rehab program, there are a lack of programs that are
comparable to it, and the City has had very few reserves, if any, to put into the single-family rehab
program. Therefore, based on the availability of resources for first-time home buyer programs vs.
rehabilitation programs, Staff believes a priority for financial assistance should be the
rehabilitation of single-family homes, and is recommending the full $1 97,052 available in home
funding for the rehab program.
Ms. Hines stated that as a result of discussions with SER regarding the City’s recommendation
for financial assistance, SER has decided to withdrawal their submitted proposal. She further
stated that SER would like to address the Commission regarding their program and the future
needs for the community for first-time home-buyer programs and would probably like to submit a
request in the future as demand for this type of program grows.
Chairperson Calverley opened the item for discussion among the Commission members.
Chairperson Calverley invited the applicant to speak.
Housing Commission Minutea
February 13,1997
Page 3
Daniel Scott, Director of Housing, San Diego County SER Jobs for Progress, corporate address
3355 West Mission Avenue, Oceanside, CA; office address 1935 East Valley Parkway,
Escondido, CA, addressed the Commission and acknowledged the presence of his co-partner
from the Consumer Credit Counselors of San Diego and Imperial Counties, Richard Howell,
Director.
Mr. Scott passed out samples of recently used flyers to the Commission and said SER is seeking
funding for an on-going course that will provide educational training in the art of realizing home
ownership. Mr. Scott said that San Diego County SER Job for Progress has been managing the
Carlsbad Hiring Center for a number of years. SER'S background has been in job training, job
placement, and education. Mr. Scott believes that many of the low-income home buyers have
received services from his agency in terms of receiving job training/job education, and have been
able to take the training that has improved their economic condition, and now are able to think
about getting a decent, affordable apartment. Mr. Scott stated that SER'S focus beginning in
1991 was to address the affordable needs of its clients, primarily, because once they are
retrained and are in the job market, they can afford to get a decent apartment. Prior to that, they
had been living in over-crowded conditions, they had been sharing, they had been paying 50
percent more of their incomes for rent. Over a period of time, they can work with SER and can
improve their economic capacity through education and job training; therefore, the same clients
who come into the SER office one day with no job and no job skills, can exit out the back end
further down the road of life by working with SER in terms of job training and education and
realize the dream of home ownership.
Mr. Scott stated that SER began the process of trying to access the appropriate vehicles to
accomplish this. They went into neighborhoods, met with HUD, and concluded that HUD had a
program specifically designed for non-profits that would assist SER in terms of acquiring
properties that were for the most part causing blight on neighborhoods, were abandoned, and
owned by the Federal government. What SER decided to do was acquire the properties and the
youth who live in those same neighborhoods, and give them a job in terms of participating in the
labor force necessary to rehab those properties, and then those properties are sold to the very
people who live in those same neighborhoods.
Mr. Scott said that SER has begun to do this in North County by acquiring approximately seven
properties from HUD. Each time SER would complete a property, the newspaper would write a
very successful story, including a line with "If you want any further information, please call
San Diego County SER at ..." Mr. Scott said the phone stated ringing-people wanted to know
how to become low-income, first-time home buyers. Rather than talking to these people
individually over the phone, SER decided to get all these people together and explain to them how
it works. Then SER decided to take it to the next level and advertise that they were going to invite
other people to come to participate. This represents the outcome of what SER is doing while
waiting for funding to continue this on an on-going basis. Ms. Scott stated that SER was
astounded with the results. There was standing room only at both the January event in
Oceanside and February event in Escondido.
Mr. Scott stated that low-income, first-time home buyers include people who are hard-working
people, like paramedics and nurses; and do not always include somebody on welfare or receiving
some kind of public assistance. He said SER is involved in educating people to the fact that there
are resources and vehicles that can assist the average working person to realize the dream of
home ownership while ridding neighborhoods of properties that are becoming eyesores for drug
dealers and gang bangers.
Mr. Scott believes there are so many wins associated with their program, and stated that he is not
refuting or suggesting that SEWS project is anymore worth while than Staffs. He said there is
Housing Commission Minuit*
February 13,1997
Page 4
definitely a need for both approaches. He stated that he will be back and SER will keep doing
what they are doing. He stated that several of the people who have attended SER'S workshops
want to live in Carlsbad, or they rent in Carlsbad and want to buy a home in Carlsbad. Mr. Scott
stated his belief that there are resources that are within the Commission's control to help low-
income, first-time home buyers to realize that dream. Mr. Scott said that as a non-profit
community-based organization, SER is committed to working with these people, however long it
takes. He said that SER is different from other programs because they have a philosophy to work
with its clients to obtain home ownership for however long it takes. The measure of success with
the SER'S program is how many people purchased a house. If SER brings 50,000 people
through its counseling program, and nobody buys a house, they haven't achieved a thing. The
measure of success of any program is how many people actually use it--how many people
actually realize the dream of home ownership as a result of your efforts, and that's the major
difference SER has as opposed to anybody else who is providing counseling. SER knows that
other financial institutions provide that, but they are committed to make a deal quickly. Mr. Scott
stated that a lot of people fall through the cracks with other programs.
Mr. Scott stated that SER is looking forward to working with City Staff and any North County
municipality in the future who is willing to work with them. SER knows that based upon the recent
experience they have had, there is a definite need for what SER does.
Chairperson Calverley asked the Commission if they had any questions of Mr. Scott.
Commissioner Escobedo asked if SER will have workshops in Carlsbad.
Mr. Scott responded that SER hopes, with the assistance with the City of Carlsbad, to hold
orientation sessions at the San Dieguito National Bank branch on Carlsbad Village Drive in July.
SER has a memorandum of understanding and an agreement with San Dieguito National Bank,
and SER had hoped to get some financial assistance to fund this.
Commissioner Scarpelli asked what kind of funding SER is looking for and stated that Staff's
report indicated a heavy cost factor ($3,400 per participate).
Mr. Scott responded that SER is looking for funding for two basic purposes: (1) to provide down
payment assistance and closing costs to eligible, low-income, first-time home buyers. Mr. Scott
described "eligible" as either 80 to 110 percent of median income or based upon local
preferences; and (2) staffing to run the program. Mr. Scott stated they SER will return to the
Commission hopefully with a product that best fits Carisbad's local needs and will ultimately assist
low-income, first-time home buyers to become homeowners in Carlsbad.
Commissioner Scarpelli stated that he does not understand where the differences are between
the programs that are run by for-profit versus the non-profit and asked Mr. Scott how his program
is different from what is already being offered.
Mr. Scott responded that SER uses a comprehensive approach where they try to find/acquire
homes (HUD properties, REO properties) for their participants, based upon information provided
to them by their participants; additionally, they try to acquire the additional labor to improve the
properties and empower those who live in the same neighborhoods to buy the property. Mr. Scott
added that SER has been successful with this program six times.
Commissioner Scarpelli asked why SER feels it is necessary to go into the financing aspect.
Mr. Scott referred the question to Mr. Richard Howell.
Housing Commission Minuh
February 13,1997
Page 5
Mr. Richard Howell, Housing Director, Consumer Credit Counselors, 1550 Hotel Circle North,
Suite 11 0, San Diego, CA, addressed the Commission and stated that their program is a
comprehensive program, 8 to 12 hours long with one-on-one counseling and on-going
workshops, compared to the typical 3- to 4-hour program where potential home buyers often get
lost in the system.
Commissioner Scarpelli expressed that he still would like to know what the basic differences are
between what SER proposes to be doing using public funds versus what companies are doing
using their own funds.
Commissioner Wellman asked how the Hiring Center could help get the word out about home
ownership.
Mr. Scott responded that the Hiring Center works with many local employers, including Cobra
Golf, and has distributed informational flyers through these companies. SER plans on exploring
the relationships that have been cultivated by virtue of the Hiring Center in Carlsbad.
Commissioner Wellman informed Mr. Scott of the status of the Laguna Drive project and suggest
Mr. Scott speak with Staff regarding this project.
Mr. Scott responded that they would be very interested in collaboration with an existing
organization that has focused on that particular niche. Mr. Scott added that SER is involved in
multi-family development, and has a 23-unit project in Oceanside and a 60-unit project in
Escondido (both acquisitions in rehab). Mr. Scott stated that he is trying to forge collaborations
and partnerships, and said that the fiscal reality of the future is that non-profits need to figure out
ways to work together with the municipalities and deal with the needs of the community.
Chairperson Calverley stated that she is not aware of any HUD or REO properties that would
qualify for first-time home buyers within City limits, and asked Mr. Scott how many properties he
has identified as such.
Mr. Scott responded that within walking distance of City Hall there are a number of properties,
while not necessarily HUD or REO, that if owned by an absentee landlord, SER, as a non-profit,
would contact the landowner(s) and determine if they would be interested in selling it to a non-
profit with the understanding that SER would acquire the property, rehab the property, and try to
work with whoever is renting the property to purchase the property. The HUD 203K program can
be used to do this. It is not a repo, but the 203K can be used as an acquisition rehab mechanism.
Chairperson stated that the non-profits who have tried doing this, have been unsuccessful
locating properties.
Mr. Scott stated that there are a number of properties that are either boarded up, burnt out, or
abandoned, which would be at the top of the list. The next properties would be properties that are
over-crowded and probably showing significant deferred maintenance. SER would then contact
the property owners and try to make a deal.
Chairperson Calverley opened the public testimony and issued the invitation to speak.
There being no other persons desiring to address the Commission on this topic, Chairperson
Calverley declared the public testimony closed and opened the item for discussion among the
Commission members.
Housing Commission MinuLGs
February 13,1997
Page 6
There being no other persons desiring to address the Commission on this topic, Chairperson
Calverley declared the public testimony closed and opened the item for discussion among the
Commission members.
ACTION: Motion by Schlehuber, and duly seconded, for approval of a
recommendation of projects and funding allocations for the City of
Carlsbad’s 1997-98 HOME Investment Partnership Program.
Calverley, Escobedo, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman
VOTE: 8-0-0
AYES:
NOES: None
ABSTAIN: None
2. EMERALD RIDGE WEST - Request for approval of an amendment to a previously approved
site development plan to allow nine (9) smaller second dwelling units and alternate lots to
satisfy the lnclusionary Housing Requirements for the Emerald Ridge West project.
Debbie Fountain stated that the Commission originally saw this project in February of 1996. It
was a project which included nine second dwelling units. The applicant has come forward with an
amendment to their original plan, which would reduce the second dwelling units in size. When
this item was put on the agenda, it was going to be going forward to the City Council.
Last week at the Planning Commission hearing a decision was made that this item did not need to
go to the City Council and that it could be approved by the Planning Commission; and it was
approved by the Planning Commission last week.
Ms. Fountain stated that the item was left on the agenda, and the Housing Commission can take
action on it by either recommending approval or denial with the understanding that it would simply
go on record and into the file. It will not be forwarded to the City Council because the project
amendment will not be going forward to the City Council.
Ms. Fountain said Staff would like to do a workshop on second dwelling units to get the
Commission’s opinion about the different features of second dwelling units to be used as future
reference when working with developers.
Chairperson Calverley stated that the Commission does not have the right to discuss things not
on the agenda without public knowledge.
Ms. Fountain responded that the Commission could probably discuss the second dwelling unit
issue. The issue that needs to be put on a future agenda is the issue of whether or not the
Commission should be taking action on this or if there is some issue related to future projects and
how they come forward to the Commission.
Chairperson asked for feedback from the Commission.
Commissioner Wellman said that the Assistant City Attorney, Rich Rudolf, is handling this, and he
said it is all very confusing . One issue is the Housing Commission’s jurisdiction and the definition
of what large affordable units are. Apparently there are projects with 50 or more units that are not
coming through the Housing Commission. Mr. Rudolf said there is nothing in the ordinances right
now that addresses amendments; so the City is coming up with a policy on that. According to Mr.
Rudolf, one could flip a coin on the jurisdiction of what is considered a large housing unit. Ms.
Wellman commented, what is the point of the Housing Commission if the developer can come
Housing Commission Minlrlts
February 13, 1997
Page 7
back with an amendment, taking it away from the Housing Commission and City Council. In
addition, Mr. Rudolf informed Ms. Wellman that the appeal process is still open on this project.
He said that if an appeal is filed, then the process stops and has to be looked at again.
Commissioner Noble stated that research is being conducted as to what additional work can be
given to the Planning Commission instead of to the City Council. One area of discussion is to
increase the number of homes the Planning Commission is authorized to approve from 50 to 100
or 125, unless somebody appeals it. It was decided that the Planning Commission had final
authority on the Emerald Ridge amendment because the land issues had already been approved
by the City Council and what the Planning Commission was approving was a change in
architecture.
Debbie Fountain responded that nothing has been changed yet, but is still under consideration.
Chairperson Calverley asked for an agenda item to look at what Council wants the Housing and
Planning Commissions to be doing and how to prevent what happened with Emerald Ridge from
happening again.
Commissioner Scarpelli stated that the Housing Commission supported the concern that the
Emerald Ridge units would remain affordable housing units and not become an extra room in the
house. Commissioner Scarpelli expressed that he thinks the Commission has been out-
maneuvered by the developer and feels the amendment should have come back to the Housing
Commission. Commissioner Scarpelli wondered if the Planning Commission addressed the
affordable housing requirement in their decision. Commissioner Scarpelli pointed out this is the
third change the developer made, and the Commission was concerned about the second change.
Debbie Fountain responded that the developer changed the size of the units, not the total number
of units.
Mr. Becker added that one of the major influences for the developer was to avoid paying school
fees which comes at 500 square feet. Mr. Becker said that if second dwelling units survive, the
Commission would continue to see developers not wanting to bear the cost of school fees for
units that are under 500 square feet.
Commissioner Scarpelli responded that he does not support developers’ circumvention of school
fees. He also expressed his displeasure with the reduction in size of the units, and stated he
believes there are no affordable housing units of the 61 units being built at Emerald Ridge.
Commissioner Schlehuber wondered how this amendment stopped at Planning Commission
since the ordinance has not been changed yet.
Debbie Fountain responded that the nine units were looked at as its own projectkite development
plan, which is less than 50 units and can be approved by the Planning Commission.
Mr. Becker responded that this had nothing to do with what is being considered to expand the
Planning Commission’s jurisdiction of 100 homes. What it does have to do with is an
interpretation change because all this change focused on was the nine units that was being dealt
with through the site development plan amendment. Mr. Becker added that Staff has been
consistent with what goes to the Housing Commission with an affordable housing component in it.
Housing Commission Minlr&
February 13, 1997
Page 8
After much discussion among the Commission regarding how this amendment was handled, it
was decided to act on this item and make a Minute Motion appealing the Planning Commission’s
decision.
Mr. Becker informed the Commission of the 10-day appeal period, which would be ending within
the next few days depending on how the days were counted for holidays, etc.; and that it may be
tough for the Council to appeal this item. In addition, he told the Commissioners about the appeal
fee. Mr. Becker stated Staff will take forward the Commission’s recommendation and get it to the
Council through the City Manager as rapidly as possible. Staff will then report back to the
Commission the results of the appeal.
ACT1 0 N :
VOTE:
AYES:
NOES:
ABSTAIN:
ACTION:
VOTE:
AYES:
NOES:
ABSTAl N:
Motion by Commissioner Scarpelli, and duly seconded, that the Housing
Commission DENY the approval of the Staff recommendation, Resolution
No. 97-002, recommending approval by the City Council of an amendment
to the Site Development Plan for the Emerald Ridge West project to allow
for construction of nine smaller second-dwelling units to satisfy the
requirements of the lnclusionary Housing Ordinance.
Calverley, Rose, Scarpelli, Schlehuber, Walker, Wellman
Noble
Escobedo
6-1-1
Minute motion by Commissioner Scarpelli, and duly seconded, to
recommend to the City Council that the City Council appeal the decision of
the Planning Commission approving Emerald Ridge West, Site
Development Plan 95-06A, on the basis that the project was amended
without proper review by the Housing Commission and City Council, which
have the project under their jurisdiction.
Calverley, Rose, Scarpelli, Schlehuber, Walker, Wellman
Noble
Esco bedo
6-1-1
3. ELECTION OF OFFICERS - Election of a new chairperson and vice-chairperson for calendar
year 1997.
Chairperson Calverley explained to the Commission that the election of officers would be by
verbal vote, and if in the future the Commissioners would like to vote by ballot, the rules would
have to be changed.
Commissioner Noble asked if the rules are set up similar to the Planning Commission where the
vice-chair becomes the next chair.
Chairperson Calverley responded that she could not find anything that stated that the vice-chair
was automatically the next chair. Perhaps this is a custom, but it is not required she added.
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to nominate
Commissioner Schlehuber as chairperson.
Calverley, Escobedo, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman
VOTE: 8-0-0
AYES:
NOES: None
Housing Commission Minh..=s
February 13, 1997
Page 9
ABSTAIN: None
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to nominate
Commissioner Wellman as vice-chairperson
Calverley, Escobedo, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman
VOTE: 8-0-0
AYES:
NOES: None
ABSTAIN: None
On behalf of the Commission, Commissioner Wellman thanked Chairperson Calverley for the fine
work she has done over the past year.
Commissioner Noble addressed Mr. Becker with a thank you to Leilani Hines and Debbie
Fountain for their superior efforts with the CDBG funds.
INFORMATIONAUDEPARTMENTAL
4. REHABILITATION PROJECT: For reasons related to reassessment tax implications, the
developer of the Laguna Drive property dropped out and the property fell out of escrow. Staff
plans to talk to a number of non-profits to determine if there is interest, SER being one of
them.
5. PACIFIC VIEW ESTATES: This project was to be forwarded to the Housing Commission due
to the fact that a density bonus and an additional incentive (added density) was being
requested by the developer. The project has been recently designed by the developer to
eliminate the need for a density bonus and additional incentive; therefore, no longer requires
review by the Housing Commission.
ANNOUNCEMENTS:
6. DIRECTOR REPORT
Mr. Becker reported that the Laurel Tree project continues to seek tax credits and explained how
tax credits are allocated within the state has become a major issue. He said that San Diego
County is not receiving any tax credit because the system is very biased toward other jurisdictions
because of demographics and statistics. The process is under consideration, he said, and the
new plan proposed by San Diego Non-Profits for allocating tax credits with a regional allocation
element that is to provide more of a guarantee that the City gets more of a fair share which would
be tied to the housing needs that exist in each region. The Tax Allocation Committee, which is
made up of the State Treasurer, the Director of Housing and Community Development, and the
Director of California Housing Finance Agency, oversee a staff that is charged legislatively with
coming up with the allocation plan. The next move, if Carlsbad continues to be bypassed, is
trying to take more actions legislatively. Staff has been part of a very aggressive effort and the
legislators have helped Staff put pressure on this administrative-appointed body.
Mr. Becker reported there are two new staff members: Bobbi Nunn, replacing Reggie Harrison
as Housing Program ManagedSection 8 Program; and Craig Ruiz, a Carlsbad resident who will
be a Management Analyst working with redevelopment and affordable housing.
Mr. Becker assumed that the Commission wants Staff to return with their list of second dwelling
issues. He said that Staff is in need of direction with respect to not only the size issue, but other
issues regarding second dwelling units.
Housing Commission Minb.,s
February 13, 1997
Page 10
Commissioner Wellman asked if Mr. Becker could include the policy statement or other
statements on affordable housing issues from the City Attorney, the Planning Department, and the
City Council.
Chairperson Calverley asked Mr. Becker to include on next month’s agenda how time shares fit
into affordable housing because they are sold as ownership, fee title to ownership of the product.
Mr. Becker responded he will provide the Commission with further clarification on time shares.
ADJOURNMENT:
By proper motion, the Regular meeting of February 13, 1997, was adjourned at 8:OO p.m.
Respectfully submitted,
EVAN BECKER
Housing and Redevelopment Director
KATHY VAN PELT
Minutes Clerk
MINUTES ARE TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE
APPROVED.