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HomeMy WebLinkAbout2005-03-24; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: March 24,2005 Place of Meeting: CITY COUNCIL CHAMBERS CALL TO ORDER Chairperson Scarpelli called the Meeting to order at 6:08 p.m. PLEDGE OF ALLEGIANCE Commissioner Smith led the Pledge of Allegiance. ROLL CALL Present: Commissioners: Doris Ritchie Edward Scarpelli Margaret Scbrarril Bobbie Smith Absent: Renee Huston Staff Present: Housing and Redevelopment Director: Debbie Fountain Housing Program Manager: Roberta "Bobbi" Nunn APPROVAL OF MINUTES Minutes of February 24,2004, were approved with three changes. VOTE: 4-0 AYES: 4-0 NOES: None ABSTAIN: None COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA There was no audience in attendance, who wished to speak at this time. NEW BUSINESS The first item on the agenda is the recommendation by staff of the Roosevelt Street Apartments. Ms. Debbie Fountain, Director of Housing and Redevelopment, will present the Roosevelt Street Apartments. It is a recommendation being requested from the Housing Commission on the financial assistance request from the developer, which is Wakeland Housing. This project is a little different from what has been brought before the Housing Commission before. Chairperson Scarpelli reminded the Commissioners to be sure to have the amended report for the Roosevelt Street Apartments in front of them. Ms. Fountain continued with the background on the project. This project was handled differently from some of our projects that come through the inclusionary housing where we have a master developer who provides the land and finds someone to do the affordable housing. In this particular case, the redevelopment initiated taking the lead on the project when we purchased property in March of 2003. It is a little over a half acre site that is on Roosevelt Street near Laguna in the Village Redevelopment area. One reason we pursued acquisition of the property was because the city had money through the Community Development Block Grant Program set aside for affordable housing. Specifically that money is typically used for acquisition purposes because CDBG money can't be used for construction of affordable housing. The money can be used for predevelopment costs, acquisition, off-site HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 2 of 18 improvements, or some other things. We were in a situation where the city was at risk of losing money because we weren’t spending it due to having difficulty in finding a project we could use this money for. The Council authorized staff to find a piece of property that we could purchase and use for affordable housing. We looked throughout the city at the time, and unfortunately when we were looking, either property was too expensive for what we had available to purchase with, or it just wasn’t available. We looked at apartment units to see if we could find some apartment units that we could purchase and rehabilitate and use the money that way. Finally we decided on this piece of property on Roosevelt Street for two reasons: 1. 2. It was a blighted site. If we purchased the property and cleaned it up, we would at least clear the blight for redevelopment purposes. After reviewing the property, we decided it could work for an affordable housing project. We purchased the site at the total cost with fees of $692,000. We paid for that with CBDG money/HOME money, which is also federal money, and the redevelopment agency setting aside money. Recently, we valued that property and it is worth about 1.6 million dollars if it were to be sold on the open market. Once we purchased the property, we sent out a Request for Proposal to identify an affordable housing developer to do this project. Wakeland Housing, who is now the developer on record for this project, was selected, mainly because they have done comparable projects that are smaller and more difficult to finance. They also have quite a bit of experience in the development of affordable housing. Wakeland Housing took the responsibility through an agreement with the City that they would act as the developer for preparing the site plan and the elevations and the permits for the project. In December of 2004, the Housing and Redevelopment Commission approved the redevelopment permit for an eleven-unit apartment project. It has been through the entitlement process, and it has received its entitlements. The site will consist of two buildings, a total of eleven units. It accesses off of Roosevelt Street. To the north there is an office complex called Brittney Court. To the south, there is an apartment complex. To the east, there are some single-family homes. Across the street on Roosevelt, there are some offices and at the end of Roosevelt Street at Laguna, there is a condominium project being built. It is a 21-unit for-sale condominium project. Ms. Fountain showed an elevation that was approved by the Housing and Redevelopment Commission. It is consistent with all of the standards for the redevelopment area. The project is eleven units: 8 one-bedroom, one bathroom units, which are about 674 square feet; 3 two-bedroom units, which are 900 square feet. There are nice quality landscape areas with barbeque areas as well as laundry facilities. The project is small so it doesn’t have a recreation center or a pool, like other larger projects, but one reason we were supportive of that is because of its location in the village area. It is within walking distance to the beach and other park areas. It is what is being encouraged in the downtown area, not to have gated communities that have private facilities. This is trying to create more of that urban type of development in the downtown. Ms. Fountain continued the rent levels proposed on this project will be affordable to households at 50% of the area median income. The one-bedroom units will be about $610 a month and the two bedroom units will be about $73 1 a month. Wakeland Housing is a non-profit corporation based in San Diego. Their portfolio includes development of about 3,500 units, which includes the Vista Las Flores project in Carlsbad. It is a 28-unit project near the Laurel Tree Apartment project. This project was done as part of the inclusionary housing obligation of a master development. We feel they have extensive experience in developing affordable housing projects. In terms of this project, the total cost is estimated at 3.3 million dollars, including the land that the City purchased. They are proposing that a conventional loan would be available for the property, whch would be about $256,000. The rest of the contribution for the project would be coming from the City of Carlsbad. The City cash contribution HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 3 of 18 would be about 2.4 million dollars, and again with our City land contribution of 692,000 that equals a total of a City contribution of a little over 3 million dollars. Whenever we review projects, we try to review them in several different categories. One of them is cost reasonableness. We have a staff team that reviews these projects first, and that consists of the Finance Director for the City, myself, someone from the Planning Department, and our Community Development Department. We assess whether we think the costs are reasonable, what seems to be higher or what we have concerns about. When reviewing, typically we are looking at a per unit cost. We broke this down for your review on a cost per square foot, which the developer has estimated at about $98.40 a square foot. The average total cost per unit with the land is about $302,973. I put this in the report for comparison purposes, because our two most recent projects that we have looked at, the Affirmed Housing Project, which worked out to about $248,000; as well as Hunter’s Point, which is the second phase of the Villages of La Costa. Their pro forma shows their average unit cost is about $246,000. Both of these are including land. As you can see, the average total cost per unit of this project is hgher then what we have seen in the past. Both projects, Affirmed Housing and Hunter’s point, include prevailing wage, which is a significant contributing factor to the reason for increasing costs in projects. Also, there have been recent increases in construction materials, which has impacted the cost of projects. Unfortunately for the Roosevelt Street project, since that project is so small, it increases the per unit cost. We evaluate the whole picture in comparison to other projects. At a staff level, we have a spreadsheet that reviews all rental projects throughout the city fiom the time we began providing financial assistance, whch was the Villa Lorna Project in the mid 90’s to now. We are definitely seeing the costs increase in Carlsbad. Because we were concerned about the cost for this project, we had a third party review done to see if the costs were in line or not. In some cases, that review indicated that some of the numbers might actually be low in considering current market conditions. We also look at undue gain. We want to make sure the developer coming in isn’t making a substantial or unfair profit on the project. In most of the cases, we look at the developer fee. We have had this discussion with the Housing Commission on previous projects as what is an acceptable developer fee. In this particular case, the developer fee is proposed at $200,000, which would be about 6% of the total project cost including the land. The staff felt that was appropriate. We have gone as high as about 11% on developer fee for some projects, which are complicated in their financing packages. They might have to file applications for tax credits. This seems reasonable for the complexity and the size of the project. In terms of the subsidy analysis, it will equal about $216,735 per unit. When the land is added which we purchased, it is about $279,649 per unit. That is significantly larger than anythmg we have given to any project to date, but the reason we are primarily the only other source of hding is the project is not eligible for any other types of funding such as tax credits. It is basically a conventional loan and the City would be the financing for the project. Ms. Fountain continued we initiated hs project as a partnership rather than a master developer who has an inclusionary housing requirement where we are just a portion of the money going into it so they can get other funding for the project. As mentioned, staff did review the cost for subsidy and decided to move this project forward. We have the third party review of the cost to have an outside neutral third party. We did compare that with other projects. We did determine that the costs are high, but we felt they weren’t inconsistent with the current construction climate and probably reflective of the small size of the project. There really isn’t any other finding sources appropriate for it. We have three or four key reasons why we are looking at this project. The Redevelopment Agency itself, even if we didn’t have an inclusionary housing obligation for the City as a whole, by state law the Redevelopment Agency has to produce a certain amount of housing for low-income persons. Specifically, 6% of the total housing that we build in the downtown area has to be affordable to very low-income persons. Currently, when a project comes forward, such as the Village by the Sea project or the Laguna Point project, they are meeting their inclusionary requirement for low income; people at 80% of the area median income. We currently don’t have any of the developers that have HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 4 of 18 been made responsible to do the very low-income component. We felt the Redevelopment Agency has an obligation to provide some of that housing. That is one of the reasons we specifically looked in the village area for a site. We realized quickly if you can get property, it is expensive to buy. It is even more difficult to do a very low-income project that has restricted rents and you cannot just charge what the market will support. The project cannot produce adequate income to make it financially feasible so it will require subsidy. The debate is over how much subsidy, that is why it is with the Housing Commission this evening. The City does have funding available that must be spent in a timely matter. Even if we didn’t have the requirement, the project will produce an attractive project, eleven new residential units. From a redevelopment standpoint, it produces a nice project. It can be looked at in two ways: It is a redevelopment investment as well as an affordable housing investment, which is how the staff looked at it. In terms of the assistance in the funding, we had a predevelopment funding agreement that was approved by the City Council, which was using CDBG money. The maximum amount of that loan was $244,161.00. They have not spent all of that money yet. There has also been HOME money, which is federal money that comes through the County of San Diego as part of the consortium for the county. The Council appropriated $544,230.00 from the HOME Program that has been in the reserve account specifically for this project when it goes to construction. The remaining appropriation that would need to be made to thts project would be the $1,595,690.00. The reason we put the total financial assistance in the agenda bill is that is what we would be asking the Council to reconfii they would want to spend that full amount of money. There has been some money already spent on the predevelopment side of the equation. The HOME money has not been spent yet, since it is set aside for construction. The funding available for assistance is the Village Redevelopment Housing set aside funds of about 2.3 million dollars. The Housing Trust Fund has about $10,000.000 in it. We also have some surplus cash from the operation of the Tyler Court Apartments, which we purchased back in 1997/1998. That has produced some money that can be used to fimd another affordable housing project. We also just recently applied and are entitled to receive a grant from the State as a result of our success in providing affordable housing within the community to date. That will be about $561,000. Our proposal at this point is to use redevelopment money and state grant money to fund this project and not use our Housing Trust Fund money or that Tyler Court surplus cash. The Housing grant money we are getting from the State of California. It is not a loan or anything we have to repay. It is a reward to the City for producing affordable housing within the community. The redevelopment monies need to be spent as soon as possible, because they can have sanctions against the agency if the money isn’t spent. We feel like those two pots of money would be the best to use for this project if we decide to move forward with it, and use our Housing Trust Fund money and the Tyler Court money for other projects in other parts of the City. If this moves forward and we do agree to provide financial assistance to this project, there will be loan documents. This project will not produce enough surplus cash to actually make a loan payment. The reason we still want to do this in a loan is if for some reason there is some cost savings or something changes where there is surplus cash produced within the project operations, we want to make sure that is repaid to the City. We do all our financial assistance deals as loans to the project so we can recapture in some point in time if there is any surplus cash in the project or some development savings or other types of costs that help us to repay some of that money. One of the other options we are looking at also, is that it is possible we can create this project as a combined project that other developers can actually buy into. We could potentially raise some revenue that way. That would be separate from repayment of the loan. The project will have a note and a deed of trust and a regulatory agreement on it, and those documents will be prepared once we how if we are going to move forward with the project. We also do an analysis of our development risks, because if we partner in this and we provide financial assistance, we will have development risks. There are predevelopment risks in case something happens and the project doesn’t move forward. There are also construction risks if you are in construction and there are substantial cost overruns in the project. There are also operational risks once the project gets built and it is operational. The City assistance is typically subordinated to any conventional financing on the project. Those are risks we assume. We believe a number of those risks are mitigated and have been mitigated in the past on our projects if we can get a strong developer who understands affordable housing development. You can closely watch the construction costs as you are moving forward and it is being monitored and you quickly respond to any types of problems that are going to HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 5 of 18 increase it. Once you are operational, you need a strong operator for the project that will watch your costs. We believe that Wakeland has a good track record, and they have shown they are able to do this with other projects, one specifically in Carlsbad. We felt comfortable they have the skills and the ability and the capacity to mitigate some of that development risk for us. The recommendation before you tonight is to approve the financial cash assistance in the total amount of 2.3 million dollars, and then it would move forward to the City Council. This will include the previously approved allocations of funding. If we look at it fiom additional cash that is required to fund that has not yet been appropriated, it would be $1,595,690. The developer is here tonight so if the Commission has questions, I encourage you to ask that of the developer, address any concerns that you might have, and any other questions you might have about operations of the project. I’m sure the developer would be happy to answer those for you, and even give you information on their background and history. Commissioner Smith asked Ms. Fountain if we don’t use the funds to build this particular project, do we stand a chance of losing it? Ms. Fountain answered it is not this specific project that we have a risk of losing money if we don’t spend it. So if we didn’t do this project, then we would need to identify another project for that money to go into. I don’t want to mislead you that it has to be this project or we lose the money. It is just a timeliness issue on expenditure and has to be spent by a certain time. Commissioner Ritchie asked what is that certain time? Ms. Fountain said it is by the end of this summer, August of this year, that we need to spend the redevelopment monies. We have a little over a million dollars that we need to spend out of that pot of money. If we don’t spend it, we get put on a work out plan, and then we have a certain period of time to make some progress before they actually will make sanctions. So we probably have about a year before there would be any sanctions against us. Commissioner Ritchie thanked Ms. Fountain. Chairperson Scarpelli asked on the substitution for projects for use of the redevelopment, do we have anydung else in line at this time that might need those funds? Ms. Fountain said we don’t have anything in line. You just recently approved the recommendation on the Affirmed Housing project, and that is a possibility to spend some redevelopment monies on that as well as some CDBG and HOME monies, but we don’t have another project out there ready to go that we could move forward on. Chairperson Scarpelli asked approximately how much of the 1 million do you think could be transferred to Affied’s project; percentage wise, roughly. Ms. Fountain answered you could transfer all of it. It is just moving pots of money around. It is which pots of money you decide to use on which project. Chairperson Scarpelli asked the developer, Barry Getzel, to give his presentation. Barry Getzel, Senior Project Manager at Wakefield, restated they are a non-profit affordable housing developer, and that all his company does is affordable housing.. I realize when people look at these numbers, they believe this is a lot of money. Last year in terms of material prices especially, increased extraordinarily. Steel increased 70%, lumber, especially plywood, increased 250% in 18 months, then to top that off, we are in this construction boom and there are contractors who are independent in terms of their own labor. These contractors feel they have enough jobs available so they can be choosy. Unfortunately, they all have that attitude, so it is not like you can find anybody who is good that you could get a deal. Currently, we are building two projects, one in San Ysidro that is 60 units, and HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 6 of 18 another in downtown San Diego that is 74 units, both affordable projects, and they are both very expensive projects. I can get into particulars if you would like to ask particular questions on costs. Chairperson Scarpelli said he would. He continued that he is not only Chairman of this Commission, but is also president of Western Mutual Development Corporation, a for-profit developer. We have just completed a project in Escondido of single-family homes. There were only 13 of those on a 15-lot subdivision. I am familiar with the costs that we used there, and I am also familiar with the fact that costs have risen, even since we constructed that project. In looking at this particular project, and I haven’t looked at the specifications of the projects, I have looked at the elevations and the floor plans, and basically what I am looking at is a cookie cutter project. It is not an out of the ordinary project. It is very well designed, however, I don’t see anything upgraded in it to any extent in the way of use of space, in the size of the bathrooms, the size of the kitchen, etc. Again, stating that I don’t know what appliances are being used, what plumbing fixtures are being used, what windows are being used, so it is hard for me to make a full determination on the cost. When I compare the cost of this project to my last project, which was a for- profit project, and we look for a minimum 25% profit on the basis of retail sales value, it does appear to be extremely high. It makes me very uncomfortable. I tlmk what we need to do is to address the square footage price on the actual building at $98 a square foot. Are we talking building structure alone, from foundation up? Mr. Getzel said that is correct. Chairperson Scarpelli continued that the additional cost would be for the land development itself. Mr. Getzel said right and the general contractor fee overhead. Chairperson Scarpelli said in that particular case, even when he calculates out our cost of a project, and when I use the pro rate ratio because of the lesser square footage here versus the greater square footage that we are working with. Taking that into account, and taking into account 33% higher labor costs, higher material costs, and I’ve talked to a number of our major subcontractors, I can’t reach $98 a square foot on the buildings themselves. My suggestion would be since we cannot clarify this number, and it seems to be so uncomfortable that I would be at this point recommending we not recommend to the City Council to move forward with this project because the costs appear to be way out of line. I suggest we enter into an agreement that you would be required, as the developer, to competitively bid with a minimum of three bids to each of the major trades, your subcontractors, and that we have the right to audit those bids, and also sign off on the contracts. The way it looks right now is that the project is being gifted the $2,384,000 because based on the pro forma, we have a negative cash flow with a few months in the early stages, then we go into a negative situation. I don’t see, based on this operating pro forma, that the City will be repaid the $2,384,000. Therefore, the only way that I can see the City accomplishing a number of tasks with one to provide affordable housing to people in that 50% or below income bracket, and to hopefully to get some reality or some real chance at getting some return of the $2,384,000 that this project be very heavily competitively bid out. Also, that we do everytlllng in our power to have cost savings. That is the only way we might change that negative to a positive. Chairperson Scarpelli asked if Mr. Getzel’s organization would be willing to go into contract with the City on that basis, and that basis again would be: 1. Each of the major trades be competitively bid, both for direct and indirect costs. I am having a serious problem with the design landscape and architect fee of $120,000 for eleven units and two buildings. I have a serious problem dealing with the appraisal at $8,000 for an MA1 appraisal on two apartment buildings. They seem to be exorbitant. Would your organization be agreeable with caveats to any agreement we make that would indicate that it would be competitively bid by a minimum of three capable and quantified subcontractors in each of the major areas? That we have the opportunity to audit those bids. 2. 3. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 7 of 18 Mr. Getzel said he didn’t think that would be a problem. His company is not a general contractor so they were going to have three bids fkom general contractors. I’m not sure if each of the general contractors would go out to three bids for each of the major trades in a project this small. For example, each general contractor had people they had worked with before and feel comfortable with. I can certainly approach your suggestion. It is our intent to at least get three bids for the general contractor. If you are interested, I can give you some of the data on how we got our figures because I think all of them are defensible. If you want to get into detail with the building costs or the architecture, I think they are all defensible as well. Chairperson Scarpelli commented on a project his company worked on recently where he had 13 homes that were 1914 square feet and 2500 square feet. We had three different floor plans and five models. That architect design fee, including landscaping fee, was under $30,000. Now taking that into consideration versus $120,000 for something as simple as hs, though I am not criticizing this, but it is a cookie cutter, basic apartment project. To pay a $120,000 for that seems exorbitant in that there are architects out there that would do it for, in my opinion, a third of that. Mr. Getzel continued that the architect’s fee also includes engineering, the structural, the landscaping, the M&P person, and supervision during construction in terms of sign-offs on draws. Chairperson Scarpelli commented on the contractor’s fee and the overhead is 17%. A contractor’s fee of 9.69%. I believe there is another fee attributed to that. How much oversight do we need on building two buildings of 1 1 units. Mr. Getzel answered that a lender and maybe even the City would want as money is drawn down, they want an architect fee on an AIA form to sign off in terms of each one of those draws. This is as far as the quality and the percentage of the completion of the construction. The architect will be out several times a month at a minimum to walk the site. Chairperson Scarpelli said he understands inspections because his company works with conventional lenders who have an inspection done before the draw is approved. I don’t feel that kind of number is going to justify this kind of price. Again, if we competitively bid it out with all the requirements you feel are needed, and we get at least three bids on it, review them, and then we can tell if we are getting a fair price in terms of the building costs. Mr. Getzel asked if that was in terms of the building costs? Chairperson Scarpelli said he is talking about indirect costs when dealing with a question of a $120,000 for this fee. Mr. Getzel said the architect has been chosen already. He has a partial contract already. We did get a minimum of three bids fiom architects. The same thing is with the civil engineer. One of the problems is the fact that this project is a small project and it is difficult to require three bids on all aspects of it. If you make these requirements, you aren’t going to have anybody bidding on it. It wouldn’t be worth their time. Chairperson Scarpelli told Mr. Getzel he would give him names of some who would be willing for a lesser percentage. That was one of the questions I did have written down and you have already answered it. Your company’s name was? Mr. Getzel answered it is Wakeland Housing. Chairperson Scarpelli commented that Wakeland Housing is not a general contractor, rather a developer. Mr. Getzel said that is correct. Chairperson Scarpelli said then Wakeland will be himg a general contractor on a cost plus basis? HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 8 of 18 Mr. Getzel answered they will do a max price. There may be some limitations sometimes on these contracts based on some conditions. Generally we have a fixed price contract. Chairperson Scarpelli said okay. Then your answer is as a developer, to get a minimum of three general contractor bids and to evaluate those. Ms. Fountain mentioned that it might be good for the City Council, if Barry Getzel gives a summary of how they came to their costs, for the record. This would address some of the issues you are raising. Chairperson Scarpelli asked everyone to turn to the Cost Breakdown Page beginning with land acquisition. Mr. Getzel said the big item, which has been mentioned, is the building cost itself. We have two projects under construction right now and they are both prevailing wage projects. One is in San Ysidro and one is in downtown San Diego. The one in San Ysidro is a 60-unit project. The end price was $92.30 a square foot at prevailing wage. The other project in downtown San Diego was $105 a square foot. In December 2003, which was about three or four months after Ms. Fountain’s group had selected us, we had a contractor look at a basic generic two-story and what the costs would be, and this was a well-respected firm that gave me the figure at that time, non-prevailing wage, it was $81.29 square foot. If you add on prevailing wage, we are already at $98 a square foot. All of those things led us to believe at $98 square foot, given we wouldn’t be in construction until just after the first of the year of 2006, hopefully earlier, that was a reasonable figure. I believe also the Redevelopment consultants thought we were low in our estimate of the price. They thought the figure should be closer to $105 a square foot. Based on those three examples, plus what the consultant said, we thought $98 is a good figure. Chairperson Scarpelli commented he still has his concerns about that number, only from his personal experience, which is recent. The other areas you talked about, the contractor’s fee and overhead fee, typically in the for-profit arena, it is about 8%, 10% at the most. Here it is 17%. You have given your rationale for that. Keeping in mind too that the contractor’s fee is based on prevailing wage costs, which would seem you are dealing with a higher cost factor as well. In any event, that fee seems high. He asked Mr. Getzel if he would like to comment on that one again? Mr. Getzel said as far as the contractor’s fee goes, we had an estimate by a contractor with respect to this project, and the fact that we are looking at $140,000 and they will spend about ten months on the project, maybe a little longer, depending on weather conditions and difficulties etcetera. In this market that is not considered an unreasonable figure. Chairperson Scarpelli said the concern he has and has made his point on, Wakeland is doing the biddmg on this project and also selecting the people to provide the service, but the money is coming from the City of Carlsbad. In this particular case, we certainly would like to have those eleven units built on that site to meet our requirements and our desire to have those units for the people in the category of 50% or less of area median income. The concern being here if the City’s purse is the one opened to pay for all this, we want to make sure as a Commission that when these funds are being dispersed, everythmg possible to acheve cost savings has been done. From what I am looking at right now, the City is providing you with an open checkbook. The numbers don’t really mean anything unless you spend more than the $2,384,000 that the City is prepared to open the checkbook for. Is there enough due ddigence spent on competitively building this project out, not only by the general contractor, but also the general contractor with his subcontractors? Mr. Getzel said he wished he had more knowledge in terms of how many bids they could get on an eleven-unit project; whether we can get three bids for every subcontractor. I will definitely get three bids for the general contractor, and I would encourage them to get three bids for every subcontractor. I know we had a case in our downtown project, for example, which is 74 units, which was a $10~000,000 project. It went out to six framers and he got one bid. It is because they are doing too well to even want to bother with it. Many subcontractors feel if it is HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 9 of 18 an urban project at prevailing wage, it isn’t worth their time. I don’t know if we can get three bids for every subcontractor, but I do know I will get three bids fiom three different general contractors. Chairperson Scarpelli said he did not want to sound egotistical or disrespectful, but he could get three bids from every subcontractor on that eleven-unit project. I can assure of that, and they would be three good subcontractors. Mr. Getzel asked if that was at prevailing wage? Chairperson Scarpelli said sure, they would love to have the opportunity to pay prevailing wage to their employees. Mr. Getzel said in his experience, they don’t want to pay the prevailing wage. But he did say his company will try to, at a minimurn, get three bids for the general contractors, and he will encourage them to get three bids for the subcontractors. He just can’t promised on every subcontractor that he can get three bids. On general contractors, he will require that. Chairperson Scarpelli said it sounds like the developer is going hat in hand to the general contractor, rather than vice versa. Under those circumstances, I’m not sure you are going to get the best bids that are out there because you are already convinced that the people aren’t there to get the work done or to do the bidding. That we have to take whatever we can get is a bad business approach on our part, and especially since it is the City’s money being spent. This just doesn’t seem like a sound approach to me on a competitive bidding process. Mr. Getzel asked if he could suggest as a protection for the City, since they have limited their developer fee to $200,000, and perhaps to do this we could say for every dollar we could build it for less, there is cost sharing arrangement with the City where the City gets fifty cents back. Would that work as a protection in terms of us being cost conscious and we can’t walk away with undue amounts of money in our pocket? Chairperson Scarpelli clarified that the Housing Commission doesn’t think that he is lining his own pockets. That is not the reason for this line of questioning. We are concerned that the City gets the most competitive bids possible to keep the costs down. Whether we get any repayment on ths 2.3 million loan is going to be based on what this project ultimately costs so in trying to have a chance of recovering some of those funds, it is going to be minimal at that. The only other area we can work on right now is the cost. Under the contracts, the release of funds is only going to be based on what the contract is invoicing for draws. We are not concerned that you as a developer is lining your pocket. Our concern is that you as a developer is using sufficient due diligence to get for the City the most competitive pricing possible to build these eleven units. That is the agenda. Mr. Getzel said okay. That would be our company’s incentive. We are always very cost conscious on all our projects. This is our business and we want to do repeat business with the cities we do work with. It is not like we would look to be careless with public funding. We would never do that. As I said, we would bid it with the general contractors. I would like to see multiple bids fiom every single trade, given it is a prevailing wage project. I could say we want to do that now, but later we might have a problem with getting that on an eleven-unit project for every single trade. Chairperson Scarpelli said he mentioned the major trades. That would be framing, plumbing, electrical, roofmg, the major trades. Those are the big money items. For example, do you know yet what spec you have for appliances, since we have eleven of each, what brand? Mr. Getzel said his company would probably purchase the middle to bottom level of the General Electric on something like hs. We would install laminated counters, VCT tile in the kitchen and the bathrooms. Chairperson Scarpelli asked what VCT tile is? HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 10 of 18 Mr. Getzel said it is a composition tile. In the living rooms, we would be doing a lower to mid end kind of carpet. The windows are vinyl. In the beginning of this meeting, you mentioned there is nothing extraordinary about the specs, and you are absolutely right that there isn’t anything extraordinary. It will be very nice, and it will be good quality. The landscaping is going to be very, very nice. I think that is one of the things to have this project show well from the street. When someone walks by, we don’t want them to just see a sea of cars. The cars are tucked in behind landscaping and the landscaping will be nice. Since we do not have a community room, we could see having outdoor benches where people can congregate outside. It will be very well done. You are correct that we are not talking about quality of a half a million-dollar condominium. Chairperson Scarpelli said it is priced at that. He did say he appreciates Mr. Getzel’s response. Commissioner Smith said at first she didn’t realize where Chairperson Scarpelli was going, but she has been educated with the questions that have been asked of Mr. Getzel. She realizes how costs have increased. I do see that the costs are astronomical as Chairperson Scarpelli has stated for what is being developed, the eleven units. Chairperson Scarpelli said he thinks on the basis of the average square footage of this building and the total cost of the building, I believe that included the land cost, we are talking about $450 a square foot. Mr. Getzel said that is with all costs. That is misleading because of it being only eleven units, you have certain fixed costs that can’t be amortized over a lot of units. Chairperson Scarpelli said they understand that. He prefaced all of the remarks by saying we understood that. But it gives you a real feel for why there is concern here in this area. He made a motion to amend this resolution. Commissioner Smith asked about what we could be losing right now with all of the budget cuts, we do need affordable housing in Carlsbad. This is an excellent project, and I would like to see it go forward. I don’t want to see any delays. If you want to amend it, I can understand that and I would support that, but let’s not lose any money. We can’t afford to lose any more money. Chairperson Scarpelli said he doesn’t understand the loss of money. Could Commissioner Smith clarifj that? Commissioner Smith said in the director’s presentation, she said we had money and if we don’t build something, we stand a chance of losing the funds, is that correct? Ms. Fountain said that will not be impacted by what Mr. Scarpelli is proposing to amend on this. I think he is proposing to add the competitive bid requirement, is that correct Mr. Scarpelli? Chairperson Scarpelli said we might even wait to see if we even get it approved, the amendment. However, just to clarify my understanding of what our director has said as regard to the million dollars in the redevelopment funds we have, we are dealing with the fact those fhds can be earmarked by the end of this coming summer. In addition to that, she stated usually if we are in default in that area, the agencies would provide us at least one year to rectify it so it wouldn’t be an immediate loss. In addition to that, she indicated the monies that are in the redevelopment find could possibly be used for the project we approved in our last meeting, whch was the project by Affirmed Housing, some 56 units. I think our concern of losing the million dollars is certainly a possibility, but I don’t think it is a reality based on our director’s comments. Ms. Fountain said our department would do everythmg to prevent losing any money, whether it would be to quickly identifj some other project or moving monies around. You are right, we don’t want to lose any money. If you don’t have a project to move forward, that is when you can be at risk of losing money. We just have to pay close attention to it. It is a reality of all the different funding sources we have to deal with. Chairperson Scarpelli continued with amending the resolution: HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 11 of 18 “The developer agrees to provide the City, for its evaluation and approval, three competitive general contractor bids for the project. Developer further agrees to make every attempt to secure subcontractor bids from the general contractor a minimum of three bids in the major construction cost areas for the evaluation and approval from the City of Carlsbad.” Commissioner Schraml asked if that would mean that the Housing Commission would have to approve the bids before they are accepted? Chairperson Scarpelli said yes, the City would approve them, not the Housing Commission. The City would review the general contractor bids and approve them. He added, “If the bids presented are not acceptable to the City, the developer would be required to seek additional bids.” Commissioner Schraml seconded the motion. Chairperson Scarpelli asked if there was any discussion on the amendment. Commissioner Ritchie asked for the amendment to be read back “The developer agrees to provide the City, for its evaluation and approval, three competitive general contractor bids for the project. Developer further agrees to make every attempt to secure subcontractor bids through the general contractor a minimum of three bids in the major construction cost areas for the evaluation and approval from the City of Carlsbad. If the bids presented are not acceptable to the City, the developer would be required to seek additional bids.” Chairperson Scarpelli called the amendment to a vote. VOTE: 4-0-0 AYES: NOES: None ABSTAIN: None Scarpelli, Ritchie, Schraml, and Smith Chairperson Scarpelli continued with the recommendation. Commissioner Ritchie moved to accept the recommendation to the City Council to provide a total of $2,384,081 in financial assistance for construction of eleven affordable apartment units in the Village Redevelopment Area. Commissioner Schraml seconded the motion. VOTE: 4-0-0 AYES: NOES: None ABSTAIN: None Scarpelli, Ritchie, Schraml, and Smith Chairperson Scarpelli stated the next item on the agenda is Carlsbad Public Housing Agency Annual Plan. Ms. Bobbi Nunn will make her presentation. Ms. Bobbi Nun, Housing Program Manager, said the agenda should read the Carlsbad Public Housing Agency Five- Year and Annual Plan. The Five-Year Plan will count for fiscal year 2005-2009 and our Annual Plan for fiscal year 2005. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 12 of 18 Ms. Nunn continued with the reason the City is required to have a Public Housing Agency Five Year Plan and Annual Plan. It was required by the Quality Housing and Work Responsibility Act that was signed in 1998. That required that the housing agencies provide these plans. The requirements are that the plans to be adopted by the Housing and Redevelopment Commission and a copy of the required certification be submitted to the U.S. Department of Housing and Urban Development. The City’s Housing Agency must prepare an Agency Plan in compliance with the Quality Housing and Work Responsibility Act of 1998. The Agency Plan looks at the housing needs of lower income households in the community, especially in relation to the Section 8 Rental Assistance Program. The Five-Year Plan specifies what the mission is for serving our low-income families, what the housing needs assessments are for all income levels, and that information is based on our Consolidated Plan. Then we also identify a Five-Year Strategy as far as inventory of the available resources that we have in order to accomplish our goals, our priority for housing needs, and a determination of goals and objectives for a five-year period. The Annual Plan itself addresses housing needs of families on an annual basis, .the financial resources we have available, our eligibility, selection and admission policies we have in order to determine when a participant is eligible, and how we select and admit them to the program, and that is identified in our Administrative Plan. We also address the rent determination policies, our operations and management policies, grievance procedures, and if our participants do not agree with a decision we make, then they have a right to an informal hearing. It also addresses homeownership programs, community service and self-sufficiency programs, civil rights certifications, and our fiscal audit. As far as progress in the last fiscal year in meeting the Five-Year Plan and goals and expanding the supply of assisted housing in fiscal year 2004, we had approximately 425 units of affordable housing that were developed through the Inclusionary Housing requirement. Following are in the process of development or approval: Summit, which will have 29 units of affordable housing; Kelly Ranch will be 122 units of affordable housing. As mentioned earlier, we have a S8-acre parcel within the Redevelopment area that will potentially provide another eleven affordable rental units. Village by the Sea condominiums, which are ten units; Rose Bay Town homes, which are twenty-four units; Laguna Point Condominiums, which are three units; and Bressi Ranch, which is a hundred units. In addition, the following for-sale affordable units are in the process of selling: The Public Housing Agency goal to improve the quality of assisted housing gave the Carlsbad Housing Agency a standard performer ranking on SEMAP Certification for fiscal year 2004. Our agency is recognized for providing excellent customer service. We conducted a rental property owner survey in which 96% of the responses were positive, and we are in the process of responding to that survey looking at implementing an electronic deposit program for our housing assistance payments. That came recommended as a result of the owner survey we sent out. We have been streamlining the lease process so we are mailing the owner’s payments within two weeks of the effective date. Therefore, the owners are not having to wait undue time in order to get that first payment, especially if it creates a hardship for some of our smaller owners when they have individual units because they are depending on that payment to cover their mortgage cost for the rental. Chairperson Scarpelli asked under the streamline program, the turn around time is what? Ms. Nunn answered just under two weeks. She continued with the PHA goal which is to increase assisted housing choices by providing voucher mobility counseling, working as a consortium with other housing agencies by conducting rental property owner workshops to do marketing to owners who are not familiar with the program, and keeping owners up to date on different changes in the program. Currently our goal is between 100 and 110% of the fair market rent, with the high cost of rentals in Carlsbad, we’ve learned that is necessary for our clients to be able to find suitable affordable housing within the city. Chairperson Scarpelli asked Ms. Nunn how determining fair market rent is based? Ms. Nunn said the fair market rent that is based on the San Diego county area and that is determined by HUD, it is by a rent survey they contract out for. They determine the fair market rent. As a housing agency, we take those HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 13 of 18 numbers, they are publicized on an annual basis and they are effective October lH of each year. We have the ability to establish our payment standards, whlch is how we determine our subsidies for our clients at between 90% of the fair market rent to 110% of the fair market rent. As of today’s date, we have recruited 54 new owners in the last fiscal year. Chairperson Scarpelli asked Ms. Nunn what she attributes that to? Ms. Nunn answered it is attributed to our staff. Ms. Fountain said we try really hard. Ms. Nunn said we do a lot of grassroots marketing. Some of the larger agencies can afford to do fancy marketing, but we do more grassroots. We keep in contact with our owners, with the property management groups that are within the city. We have a really good rapport with them. If we see vacancies that are available, we’ll call and if it is someone who is not famdiar with the program, we’ll explain who we are. We do coordinate with the larger agencies to do some of the larger marketing such as the owner outreach programs. Chairperson Scarpelli asked if she had found that she had to go up to that 110% of fair market valley of the county to accommodate interest in Carlsbad? Ms. Nunn answered yes, definitely. Just to be competitive with market rents out there, we have had to go to 110%. As of October 1,2004, we are in between 4 and 9% of the fair market rents, and I know you are all aware of the fact that we have looked at serious reductions in funds for the program on a federal level. As a result, we normally would have raised our payment standards on October 1,2004, in accordance with the release of the new fair market rents up to 110%, but because we are in a quandary about funding right now, we made the determination not to make any changes. We are still able to have our client’s find affordable housing at the amounts we have set. We also negotiate very well with the owners to have them decrease their rent. Ms. Nunn said the department is continuing to voluntarily administer a family self-sufficiency program, which is also quite successful. We maintain ongoing communications and relationships with agencies and non-profits that provide services to persons with disabilities, and staff attend quarterly meetings with agencies and non-profits. We also have established a collaboration between agencies and non-profits that specifically work with persons with disabilities, whether it be psychiatric disabilities, mobility disabilities, or disabilities in general. We do provide information on home ownership opportunities. At this time, it is felt it is not feasible for the City of Carlsbad to be able to use the Section 8 Rental Assistance Program as a home ownership program. We have researched that in the past and the costs were astronomical on what the City would have to provide in order for that program to work. At this point, we are not offering home ownership through the Section 8 Rental Assistance Program, but we still advise our clients of any home ownership opportunities that come up as a result of the inclusionary housing developments. Another goal is to ensure equal opportunity in housing for all Americans by contracting with the Heartland Human Relations and Fair Housing Association. They offer training to staff and participants and owners on Fair Housing. In fact, on April 2lSt we will be having a Fair Housing workshop that they will be sponsoring in coordination with the Housing and Redevelopment Department. That will be targeting owners and participants in the area. Chairperson Scarpelli asked how staff will be promoting that workshop? Ms. Nunn said we will be sending out flyers to all of the owners we have on file, and we will also send flyers to all of our participants. We will also have flyers in the office. That workshop will be on April 2lSt at the Senior Center if anyone is interested in attending. Commissioner Smith commented that it is very interesting. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 14 of 18 Chairperson Scarpelli asked again what the date was? Ms. Nunn answered April 21"'. Commissioner Ritchie asked if there was a time yet? Chairperson Scarpelli commented that the Commissioners would probably receive a flyer. Ms. Nunn said she would make sure the Commissioners receive a flyer. Commissioner Ritchie said she would appreciate that. Commissioner Smith once again commented that it is very interesting. She attended last year, and it was really good and very informative. Ms. Nunn continued that besides Heartland Human Relations and Fair Housing Association providing training to staff, participants and owners, we refer clients as well as members of the community if they feel they have any fair housing issues. Heartland will work with them to fill out the necessary discrimination complaint forms. Sometimes they even get involved in mediation. They do have a staff person that is bilingual, speaks Spanish and English. We also provide information on agencies that assist persons with disabilities. The PHA plans are consistent with and reference the following documents: 0 0 0 0 Regional Analysis of Impediments to Fair Housing Choice in the San Diego area City of Carlsbad Consolidated Plan Administrative Plan for Section 8 Tenant-Based Rental Assistance Program City of Carlsbad Family Self-Sufficiency Action Plan City of Carlsbad Single Audit Report on Federal Award Programs, which we had no findings. As far as the public participation, the plan does require a public review and comment period, which we are in the midst of now, prior to adoption. That review period will end on April 12* at 5:30 p.m. Then we will have a public hearing at the actual tentative Council Housing and Redevelopment Commission on April 12, 2005, if this is approved to go forward. We ask the public to respond if they have any input on the needs and the priorities that the Housing Agency has outlined in the Public Housing Agency Plan. Also any oral communication will be recorded at the public hearings and identified in the plan when it is submitted to HUD. In addition, any comments will be addressed in the final plan. At this point, we have no comments to date. Commissioner Smith commented that Ms. Nunn has done a wonderful job. She can appreciate the Section 8 Program. I would like to say I am concerned about some of our costs being taken away from us. I think the Commission needs to get together and tq to go up to Sacramento to see what is going on. I would hate to think staff might be cut out of the program. I have great concerns. To keep this wonderful program going, you can look at the staff, though I'm sure they are overwhelmed by the abundance of work they do each day, and I can appreciate being a participant of the Section 8 Program. I want to thank you again. I think we do need to get involved and see what we can do to keep our program from being cut anymore than what it has been. Chairperson Scarpelli asked for a clarification on costs. Do you mean receipt of revenue or costs? Commissioner Smith answered that at the last meeting, Ms. Fountain mentioned they are cutting the Section 8 participant's program. Chairperson Scarpelli said she means revenues received. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 15 of 18 Commissioner Smith said right. This is frightening because if they cut us, then eventually we might not see the staff. This is not something I would like to take lightly. I think we need to do something, even if it means to write our legislatures and find out what is going on. We need to do somethmg. Chairperson Scarpelli said let’s discuss what that might be. Maybe Ms. Fountain could help fill us in on when we know we are facing these kinds of cuts at the state level and the federal level, what is currently being done to try to avoid stripping the program any more then it has to be. Ms. Fountain said we are part of larger organizations that are big lobbying groups at the Federal government level. Ms. Nunn attends a lot of those meetings that are national organizations on housing, and I can tell you they are lobbied very hard against these current cuts. Our Council sends letters, we have lobbyists that we work with, Ron Packard is one of our lobbyist that we use, and he has been very helpful. Unfortunately, these cuts were beyond everybody’s efforts. I can tell you everybody is watching it closely, although national housing organizations as well as our individual departments are watching it very closely and try to have the greatest impact. Honestly, I feel if those lobbying groups had not been involved, our cuts would have been even greater then they are. It is a serious concern, and watch it very closely as well as the Council. Chairperson Scarpelli asked Ms. Nunn if we involve the actual recipients when we do the contact with legislatures? Are we making them aware of this? Do they have a potential loss of the existing people under Section 8? Can they be eliminated from the program because the funds are being cut back? Or is it just for new participants? Ms. Nunn said that currently we are looking at ways we can cut costs without impacting current participants. We do have a moratorium on taking anybody off of the waiting list at this point. Last year we were in a situation when we were able to get our waiting list down to a six month to a one year wait. I don’t perceive being able to call any names off of our waiting list for at least another year. They are looking at even more severe cuts for 2006. The lobbying groups that Ms. Fountain refers to we are actively involved in, and originally when this fiscal year 2005 appropriations bill came across, they were talking about providing $1 1,000,000 in fimds for the Section 8 Rental Assistance Program. As a result of the lobbying, we got it up to $13,600,000, so we did recoup some of the money that was being cut out of the program as a result of the industry groups getting together and writing letters and position statements regarding funding. As far as impacting any of our current clients, at this point we are trying to look at all other areas in which we can cut funds without -acting them. One of them was not to raise the payment standard. That was one of the reasons why our payment standard did not increase as of October 1‘‘ as it normally would have. Chairperson Scarpelli said based on that, do we keep in touch with the actual Section 8 recipients in maybe a newsletter letting them know what is happening and encouraging them to write the letters or make the phone calls or send e-mails? Do we have any campaign along those lines? I’m thinking like March on Washington. Ms. Nunn answered you can’t really force your politics on somebody else, but we do make our clients aware of the fact that we have had funding cuts and we do advise them if they have concerns about that, they should contact their legislators and voice their concerns. We have put together a flyer that lists everybody’s names and addresses and that is in the lobby available to them. Chairperson Scarpelli commented that was the approach he was thinking about, without getting political. Since they are recipients of this program and it is going to affect them personally, they should at least be made aware to take whatever action they personally wish to take. Of those people under the Section 8 Program, how many would you really say frequent the office; that would actually see that flyer, what percentage? As much as loo%? Ms. Fountain answered all of them. We get regular visitors. Chairperson Scarpelli said he just wanted to make sure communications were really there. In other words, to produce a flyer and put it in a location is fine as long as people are coming there or there could be a mailing. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 16 of 18 Ms. Nunn said we haven’t done a mass mailing. That is something we could look at doing. Our Housing Specialists are discussing it with their clients, because they are seeing it in the news and we’ve gotten a lot of inquiries about it. We are in touch with our clients, and because of our location and our open door policy, we do have a lot of outreach to the clients who are currently on the program. Chairperson Scarpelli asked if we are advising them it might be to their best interest to contact their legislators that might affect this thing positively or negatively? Ms. Nunn said right. Chairperson Scarpelli asked how we recommend we reach them. I know you said you give the legislator’s addresses. Do you give them anythmg in addition to the addresses? Ms. Nunn said the flyer has their address, phone number and an e-mail address. Commissioner Smith said that as Commissioners they could visit some of our legislators on a state level. Some of them that are here. We could go and talk to them about our concerns regarding the budget cuts. Chairperson Scarpelli asked Ms. Fountain if she had any comments about that. Ms. Fountain said we would be happy to give you a list of the legislator contacts as well. As private citizens and representatives of the Housing Commission, there probably isn’t any problem with you making your voice known and your opinion known. If you want to take an official position as a Housing Commission, we can write a letter on your behalf as the Housing Commission. Commissioner Ritchie asked if Ms. Fountain would be willing to put that list in the next packet? Ms. Fountain said sure, or we could mail it to you. Ms. Nunn said we could also send you the flyers for the Fair Housing. Ms. Fountain said right, we’ll do that. Commissioner Schraml asked if staff would be sending out a flyer to all the participants for the Fair Housing Meeting? Ms. Nunn said yes. Commissioner Schraml commented then we could at that time also send out notification of what is going on if they are unaware of it. Ms. Nunn said yes, we could do that. Commissioner Schrd continued that we should let them know that Housing and Redevelopment is doing everythmg they can so they don’t have to put their share of cost up higher? They may not be aware of it. Ms. Nunn said we can definitely include the legislator’s information because the flyers have not been mailed out yet for the Fair Housing Workshop. We are in the midst of printing the flyers and envelopes. They are due to go out next week. I’m sure we can put something together. Commissioner Smith commented that we do need more participants at the meeting. I was at the one last year, and it was very sad to see how many people actually came out to that housing workshop. HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 17 of 18 Chairperson Scarpelli asked what time of the day is the workshop? Commissioner Smith said it is in the evening. Chairperson Scarpelli reiterated it is in the evening. Ms. Nunn said she thmks this one is around 4:30 p.m Chairperson Scarpelli commented that in itself may be a problem, because most people are still working at 4:30 so your attendance is going to be suffering I would think. Ms. Nunn said it depends. The majority of the clients that are on our program are seniors and persons with disabilities who are not employed and depend on fixed incomes to support themselves. We have had it at different times during the day. This is probably the earliest we have ever had it in the late afternoon. We usually get about the same response. Chairperson Scarpelli said with the proper flyer going out and notifying people they may be negatively lmpacted by the problem that we are facing, the challenge we are facing with the cut of funds, they may be encouraged to attend the meeting. Commissioner Smith said this meeting is more about your rights as a tenant. Ms. Nunn said it also involves what to do about discrimination and how to avoid discrimination. It is directed towards owners and their screening process. It is also directed towards tenants so they are aware of what their rights are as a tenant searching for housing. The meeting itself would not be the appropriate form to discuss the funding cuts. Since we are doing a mass mailing, we could include a flyer with it stating if a person is concerned about the federal finding cuts that are impacting the Rental Assistance Program, please be advised you can contact, and then provide the list. Chairperson Scarpelli asked if he could suggest as following up with Ms. Nunn for the Housing Commission to take a proactive stance on trying to assist the lobbyist and the staff and the City and everyone else working towards trying to prevent the cuts. What do you think about the possibility that the Commission have a public hearing and inviting all of the recipients to thrs forum and we discuss the situation and staff could discuss what is happening. The Commission could discuss some of the ways they might make their voice heard. Would we be overstepping our bounds on the Commission’s charge on doing something of that nature? Ms. Fountain said she didn’t think it would necessarily be overstepping your bounds. This might encourage them to come to the meeting and share their concerns. One of the things we are actually working on is developing a strategy for how we are going to address the funding issues. After we get that strategy developed, it might be the time we could have a public meeting and share that information so that people know what is going on. That would be an opportunity for the Housing Commission to ask them questions or get feedback from them. Chairperson Scarpelli said he would go a little further because informing is wonderful, but helping people to develop an action plan, and have the Commission advise them their voice needs to be heard from this dais, we would be advising them it is their responsibility to contact these people. They would receive it in writing, the legislator’s addresses and information. Our role here would be to encourage them to really pick up the phone or type in the e- mail address and give them some basic facts. Then when they write a letter, they would have basic facts they could state in the letter. Ms. Fountain said we could work on this as part of developing our strategy for how to address the fimding issues and bring somethmg back to proposal. We could get feedback and let people know. We could draft up a sample letter if HOUSING COMMISSION MINUTES MARCH 24,2005 PAGE 18 of 18 they are interested in supporting something, you can send out a sample letter. Why don’t you let us work on it as we develop our strategy and we can bring some ideas back to you. Chairperson Scarpelli commented that we are recommending a standard draft letter. I’m not sure that would have as much effect if we could encourage people to do it in their own words. Just give them some points. Ms. Fountain said to let staff work on it, and we will try to figure out something where we could get that information back. Chairperson Scarpelli asked if that was satisfactory. Commissioner Smith said yes. We just don’t want to see our staff eliminated. Ms. Fountain said thank you, staff appreciates you wanting to save our jobs. Chairperson Scarpelli asked if there were any further questions or comments. Commissioner Ritchie moved that the Housing Commission adopt Resolution number 2005-003, recommending that the Housing and Redevelopment Commission approve the Carlsbad Public Housing Agency Five-Year and Annual Plans for Fiscal Year 2005 for submission to the US Department of Housing and Urban Development. Commissioner Smith seconded the motion. VOTE: 4-0-0 AYES: NOES: None ABSTAIN: None Scarpelli, Ritchie, Schraml, and Smith DIRECTOR’S REPORT The Director did not have a report this evening. CHAIRPERSON’S REPORT Chairperson Scarpelli thanked the Commission for the attention paid to the issues this evening and for their participation in the work of this Commission. ADJOURNMENT By proper motion, the meeting of March 24,2005 was adjourned at 7:55 p.m. Respectfidly submitted, Debbie Fountain Housing and Redevelopment Director PATRICIA CRESCENT1 Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. - City of Carlsbad March 21,2005 TO: HOUSING COMMISSION FROM: HOUSING AND REDEVELOPMENT DIRECTOR AMENDED HOUSING COMMISSION REPORT ON ROOSEVELT STREET APARTMENTS FOR MARCH 24,2005 MEETING Enclosed please find an amended staff report related to the Roosevelt Street Apartments financial assistance request which is scheduled to be discussed by the Housing Commission on Thursday, March 24, 2005. Please dispose of the previously forwarded report andconsider the enclosed report as your final report for action purposes. The staff report required revisions to address a correction in the amount of assistance required from the City for the project. Originally, it had been intended that the project would receive project-based rental assistance to help with the financial operation of the project. Unfortunately, due to recent cuts in the rental assistance funding, the City will be unable to commit rental assistance vouchers to the project. Therefore, the requested subsidy from the City needed to be changed to account for the loss in this rental revenue. The revised financial numbers are identified in bold print within this amended report. The new request for financial assistance (cash) is $2,384,081, which is an increase of approximately $79,000 from that which was noted in the original report. If you have any questions regarding the project or this amended report, please contact me at (760) 434-2935. \&&d DEBBIE FOUNTAIN 2965 Roosevelt St., Ste. B Carlsbad, CA 92008-2389 (760) 434-2810/2811 FAX (760) 720-2037 @ 6tdf: Debbie Fountaha Housing amd Redeuelopment Direofor Xtem No. 3 AMENDED REPORT DATE: MARCH 24,2005 SUBJECT: RP 04-04 - ROOSEWLT STREET APARTMENTS - RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL TO PROVIDE A TOTAL OF $2,384,081 IN FINANCIAL, ASSISTANCE FOR CONSTRUCTION OF ELEVEN (11) AFFORDABLE APARTMENT UNITS IN THE VlLLAGE REDEVELOPMENT AREA. I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 2005-002, recommending APPROVAL to the City Council to provide $2,384,081 in financial assistance from CDBG, HOME and Redevelopment Agency Housing Set-Aside Funds to Wakeland Housing and Development Corporation for construction of eleven (1 1) affordable apartment units in the Village Redevelopment Area. 11. PROJECT BACKGROUND In December, 2004, the Housing and Redevelopment Commission approved the major redevelopment permit for the Roosevelt Street Affordable Apartments development. It is an eleven (1 1) unit housing project which will be affordable to lower income households (50% of AMI). This project is unique because it represents a partnership between the Carlsbad Redevelopment Agency and the affordable housing developer, Wakeland Housing. The Agency purchased the property in March of 2003 with the intent of ultimately developing a low income affordable housing project on the site. Wakeland Housing was selected through a request for proposal process to act as the developer of the project. The Agency will continue to own the property and ground lease it back to the project. Wakeland will construct and subsequently operate the housing development. RP 94-04 - ROOSEVELT STREET APARTMENTS March 24,2005 PAGE 2 111. PROJECT DESCRIPTION The subject project will be located on a .56 acre parcel that is located at 2578 Roosevelt Street in the Village Redevelopment Area. The proposed 1 1-unit affordable apartment project consists of two separate two-story buildings with surface level parking. There will be 8 one bedroom, 1 bath units (674sf) and 3 two bedroom, 2 bath units (9OOsf). Due to the size of the project, there are no amenities on site. All of the 11 units will be affordable to households earning 50% of the San Diego County Area Median Income (AMI). IV. DEVELOPMENT TEAM Wakeland Housing will develop, own, and operate the affordable housing project. Wakeland, which is a nonprofit corporation based in San Diego, has developed over 3500 units of affordable housing within their portfolio. These units are located mostly in San Diego County, with some in Orange County, Sacramento and Seattle. Their developments include the Vista Las Flores affordable housing development (28 units) in Carlsbad. The development team has extensive experience in all major areas of , residential development. V. FINANCIAL ASSISTANCE A. Cost Reasonableness The developer has provided a detailed development proforma for review by staff and the Housing Commission (See Attachment 2). Since development costs are one of the key variables determining the need for subsidies, it is important that those costs be reasonable. At approximately $3.3 million, including the cost of the land, the average unit cost of $302,973 is reasonable with significant consideration of the requirement to pay prevailing wage rates, current costs of construction and the small size of the project which has reduced economies of scale. B. UndueGain It is important that any financial assistance have the effect of making the units more affordable and not creating undue gain for any party. The Dereloper will receive a “Developer Fee” of $200,000, or approximately 6% of total project costs (including land). The Developer is proposing that they receive 100% of the developer fee during the development of the project. The developer fee is appropriate for the size of the project and level of complexity of the financing for, or development of, the project. FW 04-04- ROOSEVELT STREET APARTMENTS MARCH 24,2005 PAGE 3 C. Subsidy Analysis The Developer is proposing to finance the project with a conventional loan of approximately $256,562 and subsidy financing from the City of Carlsbad in the amount of $2,384,081. As previously mentioned, the land was previously purchased by the Carlsbad Redevelopment Agency at a total cost of $692,058. The financial assistance for the project is, therefore, provided in two forms. The land acquisition and then direct financial (cash) assistance. The direct financial assistance to Wakeland Housing will equate to approximately $216,735 per affordable unit. With the addition of the land cost, the total City subsidy will be $279,649 per affordable unit. The $279,649 per unit is significantly larger than what has been previously approved for similar affordable housing projects in Carlsbad. However, as staff mentioned previously, this project is different than the other projects in that it was initiated by the Carlsbad Redevelopment Agency and intended to function as a partnership project. In this case, the City is acting as a Master Developer. Following are the reasons to provide the financial assistance to the project: 1. The Carlsbad Redevelopment Agency currently has an obligation to produce a total of 11 units of very low income housing (6% of total new housing in Village Area) as a result of previous housing projects constructed within the project area since 1981. This obligation comes from the construction of Jefferson House I and II (105 units total), the Village by the Sea (65 units) and the Laguna Pointe project (21 units). This project will help the Carlsbad Redevelopment Agency to satisfy the very low income housing requirements for the Village Redevelopment Area. 2. The project itself will not produce adequate income to make it financially feasible. Therefore, subsidy is required from the CityRedevelopment Agency in order to ensure that the units can be constructed and operated in a financially feasible manner. The CityDXedevelopment Agency has funding available that must be spent in a timely manner before sanctions are imposed due to lack of expenditures to date. This funding comes from the federal Community Development Block Grant and HOME programs, as well as the Redevelopment Agency Lowmoderate Income Housing fund. Therefore, there is appropriate and adequate funding available to provide the required subsidy. 3. The project will produce 11 new residential units within the Village Area and provide for an attractive development, which will be of benefit to the efforts to revitalize and redevelopment the area. RP 04-04 - ROOSEVELT STREET APARTMENTS MARCH 24,2005 PAGE 4 Redevelopment Agency Land Acq. CityAXedevelopment Agency D E. F. $216,735 $692,058 $2,384,081 The following is a summary of the sources and uses of funds based on the estimated development costs and the proposed financing structure. The developer’s detailed proforma is attached as Exhibit 2: Contribution (cash assistance) Total Sources PERMANENT SOURCES OF FUNDS PER UNIT $3,332,701 $302,971 I1 Conventional ban I $256.562 I $23,3241 Form of Assistance City cash assistance will be in the form of a residual receipts loan secured by a note and deed of trust. The loan will begin accruing after the completion of construction of the improvements. The outstanding principal and accrued interest on the City loan will be amortized over fifty-five years and repaid from cash surplus, as cash is available or becomes available. In the event that there is not adequate cash surplus to repay the City loan, the outstanding balance shall accrue with simple interest at 3% per annum. The financial assistance will be provided from the City of Carlsbad’s CDBG, HOME and Redevelopment Agency Housing Set-Aside Funds. Security The Developer will be required to provide completion bonds to both the City and the permanent lender to insure that construction is completed. Risk In its role as a lender to the project, the City is exposed to three risks inherent to real estate development. These risks generally include 1) predevelopment (project does not get to construction, 2) construction (project cannot be completed, cost overruns, contractor problems), and 3) operation (revenues do not cover expenses). Adding to this risk, any City financial assistance will be subordinated to conventional financing. RP 04-04 - ROOSEVELT STREET APARTMENTS MARCH 24,2005 PAGE 5 A number of factors mitigate the risks. First, the development team has a strong track record with similar affordable housing projects and has been successful to date in all of its efforts to construct and operate those projects in a financially sound manner. The reasonable terms of the City/Agency loan allow the developer to lower its financing costs which help to ensure that expenses will not exceed revenues generated by the project. The developer will partner with a contractor with a proven history of success. Both the CityRedevelopment Agency and the developer will closely monitor the costs of the project and work with the contractor to address project issues in a timely manner to reduce cost impacts. Without the financial assistance from the CitylRedevelopment Agency, the project will be unable to proceed. The developer and the City/Agency have researched other funding sources which are typical of affordable housing developments, such as tax credits and various grant programs. Unfortunately, the subject project will either not compete well for these sources due to its size and other project features andor the project is not eligible for some of these other funding sources. Therefore, in order to proceed, it will be necessary for the City/Agency to serve as the primary subsidy source for the project. VI. FINANCIAL ASSISTANCE AGREEMENT With a recommendation from the Housing Commission and approval of the City Council andor Housing and Redevelopment Commission, appropriate documents, including a Financial Assistance Agreement, Regulatory Agreement, Promissory Note and Deed of Trust, will be prepared and executed to set forth the terms of the financial assistance and its repayment. VI1 SUMMARY AND STAFF RECOMMENDATION It is the role of the Housing Commission to make financial assistance recommendations to the City Council based on several considerations with respect to affordable housing projects. These are: o The proposal's effectiveness in serving the City's needs and priorities as expressed in the Housing Element of the General Plan and the Consolidated Plan. o The proposal's consistency with the City's affordable housing policies and ordinances as expressed in the Housing Element and Inclusionary Housing Ordinance. o The proposal's development and operating feasibility, emphasizing the development team capacity, financing sources and the role of the City in providing financial assistance or incentives. RP 04-04 - ROOSEVELT STREET APARTMENTS MARCH 24,2005 PAGE 6 The Roosevelt Street Affordable Apartment development is proposed by a capable development team that is committed to affordable housing. The proposed City assistance meets the City’s three key underwriting goals of a strong borrower, reasonable project costs based on the project size and requirements and an acceptable level of leveraging. The project quality includes good design and location. City housing goals are supported by the project’s affordability. It is the Affordable Housing Policy Team’s (staff) recommendation that the Housing Commission approve the resolution of support recommending to the City Council that the City provide a total of $2,384,081 in financial cash assistance to Wakeland Housing for the Roosevelt Street Affordable Apartment development. VIII. EXHIBITS 1. Housing Commission Resolution No. 2005-002. 2. Proforma. 3. Reduced copies of project plans. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING COMMISSION RESOLUTION NO. 2005-002 THAT THE HOUSING COMMISSION RECOMMEND APPROVAL TO THE CITY COUNCIL OF $2,384,081 IN FINANCIAL CASH ASSISTANCE ASIDE FUNDS TO WAKELAND HOUSING AND DEVELOPMENT CORPORATION FOR CONSTRUCTION OF ELEVEN (1 1) AFFORDABLE APARTMENT UNITS TO BE LOCATED AT 2578 ROOSEVELT STREET IN THE VILLAGE REDEVELOPMENT AREA OF THE CITY OF CARLSBAD. FROM CDBG, HOME AND REDEVELOPMENT AGENCY HOUSING SET- APPLICANT: ROOSEVELT STREET APARTMENTS CASE NO: RP 04-04 ~ WHEREAS, the Wakeland Housing and Development Corporation has proposed to construct 11 apartment units affordable to very low income households within the City of Carlsbad and has requested financial assistance from the City of Carlsbad to assist in the financing of said affordable housing project; and, WHEREAS, the request for financial assist to construct said units has been submitted to the City of Carlsbad’s Housing Commission for review and consideration; and WHEREAS, said Housing Commission did, on the 24th day of March, 2005, hold a public meeting to consider the request for City financial assistance for the construction of said 11 affordable housing apartment units by the affordable housing developer, Wakeland Housing and Development Corporation; and WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the proposal to construct said affordable housing units. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HC RESOLUTION NO. 2005-02 PAGE 2 2. The request for City financial assistance is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, Consolidated Plan, the Inclusionary Housing Ordinance, the Carlsbad General Plan and the Village Redevelopment Plan. 3. The request for City financial assistance will assist the affordable housing developer to construct a total of 11, one and two bedroom affordable apartment units which will be affordable to households earning 50% of area median income for San Diego County or less. The project, therefore, has the ability to effectively serve the City’s housing needs and priorities as expressed in the Housing Element and the Consolidated Plan. 4. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on March 24,2005, the Housing Commission hereby ADOPTS Resolution No. 2005-02, recommending APPROVAL to the City Council to provide up $2,384,081 in financial cash assistance from the City of Carlsbad’s DBG, HOME and Redevelopment Agency Housing Set-Aside Funds to Wakeland Housing and Development Corporation for the construction of eleven (1 1) affordable apartment units to be located at 2578 Roosevelt Street within the Village Redevelopment Area of the City of Carlsbad. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5. That the Housing Commission recommends that the City Manager or his or her designee be authorized by the City Council to prepare and execute all documents related to provision of the City assistance, including but not limited to a Financial Assistance Loan Agreement, Note, Deed of Trust and Regulatory Agreement, subject to review and approval by the City Attorney. PASSED, APPROVED, AND ADOPTED at a meeting of the Housing Commission of the City of Carlsbad, California, held on the 24~ of March, 2005, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: EDWARD SCARPELI, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RESOLUTION NO. 2005-002 PAGE 3 1 [OEVELOPMENT SCHEDULE Brldpe Loan Interest Flnanclng Cc6b MadmhyLeaseUp Developer Feea ~~ngency Tolal Prw Uses SOURCES: TPX CWt EQllty Permanent Loan omer’ AHP Flnanclng Deferred Develow Fee WP Funds I*] Total Prqecl Sources ConsbucUon Lcm Canmlbnent IDEE1 FINANCING ASSUMPTIONS 1 0 0 0 8,157 100,728 o 1m.m CreQI Year 2,727 3o.m 0 3o.m ~ederal TU ~t Rats 18,182 m,am 0 2oo.m State Tax Cndit Rate LSOURCES AND USES OF FUNDS 0 1856250 DrmcuntoDevelop% ApplWe FRctlon Annuy Tan Cndib 5240,050 52,640,643 $0 52.640.643 Adlunled Elidble Basis Cash Available for DeM Servlul (NOI) 33.- NA NA NA NA NA NA NA 80.00% 0 0 0 0 0 80.00% 0 0 0 0 0 Mp.Unn0 Market 0 0 0 0 0 IIIVESW nM 099( OI TOW credn uiocatm NA GroM Invw COnfikmontoLowr Tier NA so soso so Mcnhs Delerred Pwln on Tax credn EwW NA 23,324 256.562 0 258.562 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Av- AMI lor Anordab(e UnnS 50.00% 0 0.0% 0 0.0% 0 0.0% s(I.oo% 0 0 0 0 216,735 2.3M.081 0 2.3M.081 ]OTHER ASSUMPTIONS 5240.058 52,640,643 SO 52,640,643 Propany Taxa: Tax Rate 1.10% 5113,883 Exlsting PmpeW Basis (per unlt) New Unn Basis (per unit) IRESIDEHTIAL UNIT MIXIAFFDRDABIUTY ANALYSIS I OroUndLu: Return on Ground Lease 0 0 0.00% 2.50% 3.50% 0 0 0 0.0% 45.00% 0 0 50.00% 0 55.00% 0 0 0 0 0.0% 8 3 0 IW.O%(HUD INCOME OUIDELINESAITIL ALLOWANCUBASIS LIMITS 1 Total Unig % 8 3 11 unb 0.0% 0 72.7% 27.3% 0.4 0.4 Sq. FWnH 0 674 900 1,017 1m Q. Ft cost Total Raid Sq Ft 0 5,392 2,700 0 0 8.092 Relaled Resldenllal Sq. FL Community Center Laundry Rooms Maintsimce ClrcuhtlOn h BakonisS Total Square Feet Leave ro~n lu andoor rec. space 0 2M) 0 1773 .. ._ 10,lm GenerslParmer Umlted ParIner A UmltsdPamWuB Ope~tlW Sale 0.01% 0.01 % 99.00% 99.00% 0.00% 0.00% 1 1 1 1 10 10 I I 1 1 I 1 10 I 1 1 I IO W 12 I 1 4 3 3 a 7 7 7 7 7 7 7 I I 10 1 I 1 IO I 1 IO 1 1 I 1 1 I 1 I 1 I2 I2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1?0,00 la00 IP.00 1.a l,a 1.a 1s.u 1333 1s.u ).=I 1,- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,000 400 S.00 0 0 0 0 0 0 0 0 600 m sm m sm 6m sm sm m 6,000 400 a a w2 a K K K (12 lorn 1o.m 9,476 0 41m 41.00 4l,00 Ism 1400 16.00 wm a00 22.00 216,Sm 21*m 1mm 1.- 1926 1.m 1.m 1926 IW '926 0 10,000 IQ00 10.00 0 0 0 0 0 0 0 0 s.w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18m 14mP l.W 1200 1bQl 1.m 1.W 1.- 1.600 1m 1.m ea 86 a azs 026 azs 026 ea ea 7m 7.m 2.m zax 1,- la IP 1P 108 la lC4 1a la 47.~~3 21.l31 zm zat zzai Z.PI mi 2.m zm 2.z~ 1.m arm am 0 0 0 0 0 0 0 0 0 p4m a00 porn 0 0 0 0 0 0 0 0 1o.m lO.00 lam 11.m r1.m 11200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 241.- 241200 241Pm 0 0 0 0 0 14714 13.714 l3.714 13.714 13.714 13.714 ohm m.OO 1sm Ism4 0 0 0 l7pr 17pS l7pS 17233 WB7 WW7 0 1m.Eed 1weasa 1Weasa 1Wmn ma mzy 1.4S5.974 1.43Wl4 0 lml 1.m hRnn 0 hRnn 0 0 0 0 0 0 0 0 *w *.ma *,om 0 0 0 0 0 0 0 0 4m 160 160 160 160 160 160 160 7.w 7.00 v60 i.im 1.1s 1.m 0 0 0 0 0 0 0 0 1hw 16.00 1S.00 0 0 0 0 0 0 0 0 zwa z5m 2- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ha4 0 0 0 0 0 0 a 0 0 0 0 0 0 0 0.- 0 0 0 10.012 18.012 9.WE rzm 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4mO 0 0 0 0 0 2400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 160 160 160 160 160 160 160 I4G4 1o.m w.00 6.00 I.PT t.m tm1 ice^ M- mm 1o.m l0.00 0 0 0 0 0 0 0 0 0 10.w 10.00 0 0 0 0 0 0 0 0 0 10.00 w.0) 10.00 0 0 a 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ImX 10 10 1 1 I I I I 10 6.03% I I 1 1 10 10 12 6.W I.= 0 0 0 0 0 120.m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 41.m 0 0 0 0 0 0 0 0 0 1s.m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20.m 0 0 0 0 0 0 0 0 0 5.m m 0 0 0 0 0 0 0 0 hm sz 0 0 0 0 0 0 a a ssm 0 214sm 0 0 0 0 0 0 0 0 0 10.m 0 0 0 0 0 0 0 0 0 0.m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1rxl 0 0 0 0 0 0 0 0 Ihm ea6 s26 e28 0 0 0 0 0 0 7.m 1Cd 31 SI 0 0 0 0 0 0 2.016 w1 e4d K4 0 0 0 0 0 0 lLE26 0 0 0 0 0 0 0 IXS -.a 7 I- 7 7 7 0.mX 7 6m% 7 9.m7. 7 10.mX sinm I I 10 I I 1 10 I r.mox I 10 9) so 1 I LmX 1 LmX 1 $410 I KmX I 0 0 0 0 0 0 0 0 D O 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11 unit. RUN DATE OSRlIDs RENTAL INCOME ASSUMPTIONS RENTAL INCOME ANALYS19: Family Numbn MonU~ly UalHy N.1Monm)y NotAnnul unll Total slu UnnTYP of Unb Rd Allowom Rmt R.nt Sq. Ft. Sq. Ft K of Mdlm 50.00% IBRHBA 50.00% 28rn 8 642 32 61 0 58.580 674 5.392 $0.91 3 771 40 731 26.316 900 2. mo $0.81 TOTAL PROJECT 11 643 04,876 73s 8,092 $0.87 RELATED RESIDENTIAL SPACE: Comrnunlly Csnw Laundry- hwntenance ClrculaWn 6 Bskonles 0 m 0 1.m Tobl RehW RukhnUml Spwa 1,973 TOTAL PROJECT SWARE FOOTAQE 10,065 f u 3 L c Citv of Carlsbad Housina and Redevelooment Deoartment .. T -rg TI-K Staff Roberta 'bbbi" Nunn Housinq Proaram Manaqer ITEM No. 2 DATE: MARCH 24,2005 SUBJECT: CARLSBAD PUBLIC HOUSING AGENCY ANNUAL PLAN 1. RECOMME" That the Housing Commission ADOPT Resolution No. 2005-003, PFCO- that the Housing and Redevelopment Commission APPROVF the Carlsbad Public Housing Agency (PHA) 5-Year and Annual Plans for Fiscal Year 2005 for submission to the U.S. Department of Housing and Urban Development. II. BACKGROUND The Housing and Redevelopment Department administers the federally funded Section 8 Tenant-Based Rental Assistance Program for the Public Housing Agency in Carlsbad, which is more specifically known as the Carlsbad Housing Agency. Pursuant to federal regulations, Public Housing Agencies (PHA) are required to submit a 5-Year Plan which describes the PHAs mission, long term goals, and strategy for accomplishing the goals. In addition, an Annual Plan is required that provides comprehensive and specific information about the PHA's operations, policies, strategies, and resources. The PHA 5-Year and Annual Plans are required to be available for public review and comment prior to a Public Hearing and adoption by the Housing and Redevelopment Commission. The public review period will end on April 12, 2005 and the Public Hearing before the Housing and Redevelopment Commission is tentatively scheduled for April 12, 2005. For general information, the following documents are referenced in the Plan and are incorporated as exhibits to the Plan: Document A - PHA Certifications of Compliance with the PHA Plans and Related Regulations and Board Resolution to Accompany the Streamlined Five-Year and Annual PHA Plans. Document B - Certification of PHA Plans Consistency with the Consolidated Plan Document C - Regional Analysis of Impediments to Fair Housing Choice in the San Diego Area, August 2004 Document D - City of Carlsbad Consolidated Plan, July I, 2004 to June 30, 2005 Document E - Administrative Plan for Section 8 Tenant-Based Rental Assistance under the Certificate and Voucher Programs, Revised March 1999 Document F - City of Carlsbad Family Self-Sufficiency Action Plan, December 1993 Document G - City of Carlsbad Single Audit Report on Federal Award Programs, Year ended June 30,2004 Document H - Results of latest Section 8 Management Assessment System (SEMAP) IV. RECOMME" Staff recommends that the Housing Commission adopt Resolution No. 2005-003, recommending that the Housing and Redevelopment Commission approve the PHA 5- Year and Annual Plans for Fiscal Year 2005 for submission to the U.S. Department of Housing and Urban Development. EXHlBlTS 1. 2. 3. Housing Commission Resolution No. 2005-003 5-Year and Annual PHA Plans for Fiscal Year 2005 with Attachments Exhibits A-H to PHA Plans (on file at: City Hall - City Clerk's Office and Housing and Redevelopment Department - Lobby) HOUSING COMMISSION RESOLUTION NO. 2005-003 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNLA, RECOMMENDING APPROVAL OF THE (PHA) PLANS FOR FISCAL YEAR 2005 AND AUTHORIZATION TO SUBMIT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CARLSBAD 5-YEAR AND ANNUAL PUBLIC HOUSING AGENCY WHEREAS, the Housing and Redevelopment Department administers the Section 8 Tenant-Based Rental Assistance Program for the City of Carlsbad’s Public Housing Agency WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued regulations requiring PHAs to submit 5-Year and Annual Plans consistent with the City of Carlsbad’s Consolidated Plan and local objectives; and WHEREAS, federal regulations provide that the 5-Year and Annual Plans must be adopted by the Board of Commissioners of the Housing Agency and submitted to the U.S. Department of Housing and Urban Development. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That based on the information provided within the Housing Commission Staff Report, dated March 24, 2005, the Housing Commission ADOPTS Resolution No. 2005-003, recommending to the Housing and Redevelopment Commission APPROVAL of the Carlsbad 5-Year and Annual PHA Plans for Fiscal Year 2005 and authorization to submit to the U.S. Department of Housing and Urban Development. 3. The Housing Commission hereby recommends that the Housing and Redevelopment Director be authorized to execute all appropriate documents required for the submittal of said 5-Year and Annual PHA Plans. PASSED, APPROVED, AND ADOPTED, at a meeting of the Housing Commission of the City of Carlsbad, California, held on the 24th day of March 2005, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: EDWARD SCARPELLI, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RESO. NO. 2005-003 PAGE 2 EXHIBIT 2 PHA Plans U.S. Department of Housing and OMB NO. 2577-0226 Urban Development (exp 05/3 1/2006) Streamlined 5-YeadAnnual Version Office of Public and Indian Housing This information collection is authorized by Section 51 1 of the Quality Housing and Work Responsibility Act, which added a new section 5A to the U.S. Housing Act of 1937 that introduced 5-year and annual PHA Plans. The full PHA plan provides a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission and strategies for serving the needs of low-income and very low-income families. This form allows eligible PHAs to make a streamlined annual Plan submission to HUD consistent with HUD’s efforts to provide regulatory relief to certain PHAs. Public reporting burden for this information collection is estimated to average 11.7 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated there under at Title 12, Code of Federal Regulations. Information in PHA plans is publicly available. Streamlined 2005 - 2009 Streamlined 5-Year Plan for Fiscal Years Annual Plan for Fiscal Year 2005 NOTE: This PHA Plan template (HUD-50075-SA) is to be completed in accordance with instructions contained in previous Notices PIH 99-33 (HA), 99-51 (HA), 2000-22 (HA), 2000-36 (HA), 2000-43 (HA), 2001- 4 (HA), 2001-26 (HA), 2003-7 (HA), and any related notices HUD may subsequently issue. Full reporting for each component listed in the streamlined Annual Plan submitted with the 5-year plan is required. Page 1 of 41 form HUD50075SF (04/30/2003) Streamlined Five-Year PHA Plan Agency Identification PHA Name: Carlsbad Housing Agency PHA Number: CA077 PHA Fiscal Year Beginning: (mm/yyyy) 06/2005 PHA Programs Administered: DPublic Housing and Section 8 NSection 8 Only UPublic Housing Only Number of public housing units: Number of S8 units: Number of S8 units: 703 UMA Number of public housing units: UPHA Consortia: (check box if submitting a joint PHA Plan and complete table) Public Access to Information Information regarding any activities outlined in this plan can be obtained by contacting: (select all that apply) Main administrative office of the PHA 0 Carlsbad Housing and Redevelopment Department 2965 Roosevelt St, Ste B, Carlsbad, CA 92008 PHA development management ofices 0 PHA local offices Display Locations For PHA Plans and Supporting Documents The PHA Plans and attachments (if any) are available for public inspection at: (select all that 0 0 IXI 0 cl IXI IXI IXI Main administrative office of the PHA 0 PHA development management offices PHA local offices Main administrative office of the local government 0 Main administrative office of the County government Main administrative office of the State government Public library 0 0 PHA website: www.ci.car1sbad.ca.us Other (list below) 0 0 City of Carlsbad Housing and Redevelopment Department 2965 Roosevelt St, Ste B, Carlsbad City of Carlsbad, City Clerk - 1200 Carlsbad Village Drive, Carlsbad Georgina Cole Library - 1250 Carlsbad Village Drive, Carlsbad Main Library - 1775 Dove Lane, Carlsbad Senior Center: 799 Pine Avenue, Carlsbad Faraday Center, Planning Department: 1635 Faraday Avenue, Carlsbad PHA Plan Supporting Documents are available for inspection at: (select all that apply) Main business office of the PHA: 2965 Roosevelt St, Ste B, Carlsbad Page 2 of 41 form HUD-50075-SF (04/30/2003) 0 PHA development management offices Other (list below) City of Carlsbad, City Clerk - 1200 Carlsbad Village Drive, Carlsbad Page 3 of 41 form HUD-50075-SF (04/30/2003) Streamlined Five-Year PHA Plan PHA FISCAL YEARS 2005 - 2009 [24 CFR Part 903.121 A. Mission State the PHA’s mission for serving the needs of low-income, very low income, and extremely low-income families in the PHA’s jurisdiction. (select one of the choices below) 0 The mission of the PHA is the same as that of the Department of Housing and Urban Development: To promote adequate and affordable housing, economic opportunity and a suitable living environment free from discrimination. The PHA’s mission is to implement the Housing and Redevelopment Commission’s policy regarding housing assistance, which is based on the needs of low-income, very low-income, and extremely low-income families within the City of Carlsbad. B. Goals The goals and objectives listed below are derived from HUD’s strategic Goals and Objectives and those emphasized in recent legislation. PHAs may select any of these goals and objectives as their own, or identify other goals andor objectives. Whether selecting the HUD-suggested objectives or their own, PHAs ARE STRONGLY ENCOURAGED TO IDENTIFY QUANTIFIABLE MEASURES OF SUCCESS IN REACHING THEIR OBJECTIVES OVER THE COURSE OF THE 5 YEARS. (Quantifiable measures would include targets such as: numbers of families served or PHAS scores achieved.) PHAs should identify these measures in the spaces to the right of or below the stated objectives. HUD Strategic Goal: Increase the availability of decent, safe, and affordable housing. Ix] PHA Goal: Expand the supply of assisted housing Obi ec tives : €3“ 0 [XI [XI Ix1 Apply for additional rental vouchers: o The Carlsbad Housing Agency will respond to any Notices of Funding Available (NOFAs), which the Agency is eligible to apply, for additional rental vouchers. Reduce public housing vacancies: Leverage private or other public funds to create additional housing opportunities: o Utilization of Housing Trust Funds through the City of Carlsbad’s Inclusionary Housing Ordinance o Utilization of HOME and CDBG funds Acquire or build units or developments o Through the Redevelopment Agency acquired property that is proposed to build an 1 1 -unit affordable housing complex. Other (list below) o Seek opportunities to collaborate with private developers and non-profit agencies in an effort to provide affordable housing opportunities for persons who live or work within the community of Carlsbad Page 4 of 41 form HUD-50075-SF (04/30/2003) PHA Goal: Improve the quality of assisted housing Objectives: n IXI IXI 0 0 0 IXI Improve public housing management: (PHAS score) Improve voucher management: (SEMAP score) o Continue to work on increasing the MTCS reporting percentage o Work on correcting errors in the MTCS records and have accurate information in the system prior to June 30,2006 o Obtain a 98% reporting percentage prior to June 30,2007 * o Be recognized by HUD as a high-performer for FY 2005-2006 Increase customer satisfaction: 0 Implement changes in response to a Rental Owner Survey conducted in May 2004 0 Conduct a follow-up Rental Owner Survey prior to June 30,2007 Concentrate on efforts to improve specific management functions: (list; e.g., public housing finance; voucher unit inspections) o Provide owners the option of receiving HAP payments via electronic deposit prior to June 30,2006 o Develop and finalize a Procedural Manual to accompany Administrative Plan o Develop and finalize a Section 8 Management and Administrative handbook prior to June 30,2006 Renovate or modernize public housing units: Demolish or dispose of obsolete public housing: Provide replacement public housing: Provide replacement vouchers: Other: (list below) o Maintain HAP costs below the HUD allocation PHA Goal: Increase assisted housing choices Objectives: (XI KJ El IXI 0 0 0 0 Provide voucher mobility counseling: 0 The Carlsbad Housing Agency shall provide voucher mobility counseling at program briefings, intakes and move appointments. Conduct outreach efforts to potential voucher landlords Increase voucher payment standards 0 The Carlsbad Housing Agency will continue to utilize a voucher payment standard at 100 to 110% of the HUD fair market rents in an effort to increase assisted housing choices. The Carlsbad Housing Agency will continue to re-access the feasibility of implementing a voucher homeownership program. Implement voucher homeownership program: 0 Implement public housing or other homeownership programs: Implement public housing site-based waiting lists: Convert public housing to vouchers: Other: (list below) Page 5 of 41 fotm HUD-50075SF (04/30/2003) HUD Strategic Goal: Improve community quality of life and economic vitality 0 PHA Goal: Provide an improved living environment Objectives: 0 0 0 0 0 Other: (list below) Implement measures to deconcentrate poverty by bringing higher income public housing households into lower income developments: Implement measures to promote income mixing in public housing by assuring access for lower income families into higher income developments: Implement public housing security improvements: Designate developments or buildings for particular resident groups (elderly, persons with disabilities) HUD Strategic Goal: Promote self-sufficiency and asset development of families and individuals Ixi PHA Goal: Promote self-sufficiency and asset development of assisted households Objectives: [XI Increase the number and percentage of employed persons in assisted families: PHA will continue to administer the Family Self-sufficiency Program Provide or attract supportive services to improve assistance recipients’ employability: FSS Coordinator meets quarterly with agencies that include representatives from the Employment Development Department, North County Lifeline Community Services, Carlsbad’s Hiring Center and North County Coastal Career Center. Provide or attract supportive services to increase independence for the elderly or families with disabilities. PHA has developed a collaboration with the Carlsbad Senior Center, North County Seniors in Action, County Mental Health, Mental Health Systems, National Alliance for the Mentally I11 (NAMI), Access Center, and Community Interface Services. Carlsbad Housing Agency will provide information to participants on affordable homeownership opportunities and the Mortgage Credit Certificate (MCC) Program. Other: (list below) Page 6 of 41 form HUD-50075-SF (04/30/2003) HUD Strategic Goal: Ensure Equal Opportunity in Housing for all Americans IXI PHA Goal: Ensure equal opportunity and affirmatively hrther fair housing Objectives: €4 0 0 Undertake affirmative measures to ensure access to assisted housing regardless of race, color, religion national origin, sex, familial status, and disability: The Carlsbad Housing Agency shall provide information about equal opportunity and fair housing at all Section 8 Program briefings. In addition, the agency shall provide reasonable accommodations for persons with disabilities. The Carlsbad Housing Agency will continue to contract with Heartland Human Relations and Fair Housing Association to provide fair housing assistance to Carlsbad residents. 0 Undertake affirmative measures to provide a suitable living environment for families living in assisted housing, regardless of race, color, religion national origin, sex, familial status, and disability: Undertake affirmative measures to ensure accessible housing to persons with all varieties of disabilities regardless of unit size required: Other: (list below) Other PHA Goals and Objectives: (list below) Maintain current number of assisted families within the constraints of SEVERE budget cuts Page 7 of 41 form HUD-50075SF (04/30/2003) Streamlined Annual PHA Plan PHA Fiscal Year 2005 [24 CFR Part 903.12(b)] Table of Contents Provide the following table of contents for the streamlined Annual Plan submitted with the Five-Year Plan, including all streamlined plan components, and additional requirements, together with the list of supporting documents available for public inspection. A. ANNUAL STREAMLINED PHA PLAN COMPONENTS H 5. Capital Improvements Needs 0 6. Demolition and Disposition 0 7. Homeownership 9. Additional Information 1. Housing Needs - pg. 9 2. Financial Resources - pg. 14 3. Policies on Eligibility, Selection and Admissions - pgs. 15 and 19 4. Rent Determination Policies (Section 8) - pg. 26 8. Civil Rights Certifications (included with PHA Certifications of Compliance) - pg. 30 a. PHA Progress on Meeting 5-Year Mission and Goals b. Criteria for Substantial Deviations and Significant Amendments c. Other Information Requested by HUD - pg. 30 i. Resident Advisory Board Membership and Consultation Process ii. Resident Membership on the PHA Governing Board iii. PHA Statement of Consistency with Consolidated Plan iv. (Reserved) 0 10. Project-Based Voucher Program [x1 0 0 1 1. Supporting Documents Available for Review - pg 33 12. FY 20- Capital Fund Program and Capital Fund Program Replacement Housing Factor, Annual Statement/Perfonnance and Evaluation Report 13. Capital Fund Program 5-Year Action Plan 14. Other (List below, providing name for each item) o Attachment 1 - PHA Management Organizational Chart o Attachment 2 - Carlsbad Housing and Redevelopment Department Strategic Assessment Report - Executive Summary o Attachment 3 - City of Carlsbad Housing and Redevelopment Department Mission Statement o Attachment 4 - Affordable Housing in Carlsbad (For Low income Households) Page 8 of 41 form HUD-50075-SF (04/30/2003) B. SEPARATE HARD COPY SUBMISSIONS TO LOCAL HUD FIELD OFFICE # of families % of total families Waiting list total 1,940 Extremely low income <=30% AMI 1,240 64% Very low income (>30% but <=50% AMI) 700 36% Form HUD-50077, PHA Certifications of Comdiance with the PHA Plans and Related Regulations: Board Resolution to Accompany the Standard Annual, Standard Five- Year, and Streamlined Five- Year/Annual Plans; Certification bv State or Local Official of PHA Plan Consistencv with Consolidated Plan. For PHAs APPLYING FOR CAPITAL FUND PROGRAM (CFP) GRANTS: Form HUD-50070, Certification for a Drug-Free Worblace; Form HUD-50071, Certification of Payments to Influence Federal Transactions; Form SF-LLL & SF-LLLa, Disclosure of Lobbying Activities. Annual Turnover 1% Executive Summary (optional) [903.7(r)]. If desired, provide a brief overview of the contents of the streamlined 5-Year/Annual Plan. (>50% but 40% AMI) Families with children 1. Statement of Housing Needs [24 CFR Part 903.12 (b), 903.7(a)] N/A N/A 1,098 57% A. Housing Needs of Families on the Public Housing and Section 8 Tenant- Based Assistance Waiting Lists State the housing needs of the families on the PHA’s waiting listls. Complete one table for each type of PHA- wide waiting list administered by the PHA. PHAs may provide separate tables for site-based or sub-jurisdictional public housing waiting lists at their option. Elderly families Families with Disabilities Racelethnicity - White 348 18% 507 26% 1,602 82.6% I s ow income I I I I Racelethnicity - Black Racelethnicity - IndiadAlaskan 218 11.2% 23 1.2% Racelethnicity - AsianfPacific I 73 3.8% Race/ethnicity - Hispanic Race/ethnicity - Non-Hispanic 381 19.6% 1,558 80.3% Page 9 of 41 fOmI HUD-50075SF (04130/2003) Housing Needs of Families on the PHA’s Waiting Lists 1 Characteristics by Bedroom Size (Public Housing Only) 1 BR 1 DD 5 BR 5+ BR Is the waiting list closed (select one)? If yes: No 0 Yes How long has it been closed (# of months)? Does the PHA expect to reopen the list in the PHA Plan year? 0 No 0 Yes Does the PHA permit specific categories of families onto the waiting list, even if generally closed? 0 No Yes B. Strategy for Addressing Needs Provide a brief description of the PHA’s strategy for addressing the housing needs of families on the PHA’s public housing and Section 8 waiting lists IN THE UPCOMING YEAR, and the Agency’s reasons for choosing this strategy. Due to SEVERE cuts in CY 2005 federal funding supporting the Section 8 Rental Assistance Program, this upcoming year the Carlsbad Housing Agency will be focusing on preserving funds for the participants currently leased and doing so within the amount of HAP funding allocated. Therefore, the Agency does not foresee having hnding available to select names off the Section 8 waiting list in FY 2005 - 2006. J1) Strategies Need: Shortage of affordable housing for all eligible populations Strategy 1. Maximize the number of affordable units available to the PHA within its current resources by: Select all that apply 0 0 0 0 [x) [x) Employ effective maintenance and management policies to minimize the number of public housing units off-line Reduce turnover time for vacated public housing units Reduce time to renovate public housing units Seek replacement of public housing units lost to the inventory through mixed finance development Seek replacement of public housing units lost to the inventory through section 8 replacement housing resources Maintain or increase section 8 lease-up rates by establishing payment standards that will enable families to rent throughout the jurisdiction Undertake measures to ensure access to affordable housing among families assisted by the PHA, regardless of unit size required Maintain or increase section 8 lease-up rates by marketing the program to owners, Page 10 of 41 form HUD-50075SF (04/30/2003) particularly those outside of areas of minority and poverty concentration Maintain or increase section 8 lease-up rates by effectively screening Section 8 applicants to increase owner acceptance of program Participate in the Consolidated Plan development process to ensure coordination with broader community strategies Other (list below) 0 IXI All affordable developments that are built through the City’s Inclusionary Ordinance are required to have a clause in their Regulatory Agreement stating that they will accept the Section 8 Rental Assistance Program. Strategy 2: Increase the number of affordable housing units by: Select all that apply IXI finance housing Apply for additional section 8 units should they become available Leverage affordable housing resources in the community through the creation of mixed - Pursue housing resources other than public housing or Section 8 tenant-based assistance. Other: (list below) The Inclusionary Housing Ordinance requires that not less than 15% of all residential units in any master plan, specific plan, or residential subdivision be set aside for occupancy by and be affordable to lower income households. Additionally, for those developments that are required to provide ten or more units affordable to lower income households, at least 10% of the lower income units shall have three or more bedrooms. Need: Specific Family Types: Families at or below 30% of median Strategy 1: Target available assistance to families at or below 30 % of AMI Select all that apply 0 IXI 0 Ix] Other: (list below) Exceed HUD federal targeting requirements for families at or below 30% of AMI in public housing Exceed HUD federal targeting requirements for families at or below 30% of AMI in tenant-based section 8 assistance Employ admissions preferences aimed at families with economic hardships Adopt rent policies to support and encourage work 0 Carlsbad Housing Agency has adopted a local preference for families that are at or below 30% of AMI. Page 11 of 41 fotm HUD-50075SF (04/30/2003) Need: Specific Family Types: Families at or below 50% of median Strategy 1: Target available assistance to families at or below 50% of AMI Select all that apply 0 0 0 Other: (list below) Employ admissions preferences aimed at families who are working Adopt rent policies to support and encourage work Need: Specific Family Types: The Elderly Strategy 1: Target available assistance to the elderly: Select all that apply 0 Seek designation of public housing for the elderly Apply for special-purpose vouchers targeted to the elderly, should they become available Other: (list below) 0 The Carlsbad Redevelopment Agency purchased a 75-unit Senior Complex to maintain its affordability and availability to elderly families that are on the Section 8 Rental Assistance Program. Need: Specific Family Types: Families with Disabilities Strategy 1: Target available assistance to Families with Disabilities: Select all that apply 0 0 IXI IXI Other: (list below) Seek designation of public housing for families with disabilities Carry out the modifications needed in public housing based on the section 504 Needs Assessment for Public Housing Apply for special-purpose vouchers targeted to families with disabilities, should they become available Affirmatively market to local non-profit agencies that assist families with disabilities 0 Collaborate with non-profit organizations and advocacy groups that represent and assist families with disabilities. Page 12 of 41 form HUD-50075-SF (04/30/2003) Need: Specific Family Types: Races or ethnicities with disproportionate housing needs Strategy 1: Increase awareness of PHA resources among families of races and ethnicities Select if applicable with disproportionate needs: (XI Other: (list below) Affirmatively market to racedethnicities shown to have disproportionate housing needs Attend Community Events and market the Section 8 Rental Assistance Program Collaborate with non-profit organizations and advocacy groups who represent the Hispanic population within Carlsbad 0 Employ a Receptionist and Housing Specialist who are Spanish-speaking Strategy 2: Conduct activities to affirmatively further fair housing Select all that apply (XI [XI IXI Counsel section 8 tenants as to location of units outside of areas of poverty or minority concentration and assist them to locate those units Market the section 8 program to owners outside of areas of poverty /minority concentrations Other: (list below) Utilizing CDBG funds contract with Heartland Human Relations Association (HHRA) to counsel property owners, tenants, and staff on Fair Housing Law. Coordinate with HHRA to provide Fair Housing Workshops in the community for property ownerdagents, Section 8 participants, and community members. Other Housing Needs & Strategies: (list needs and strategies below) Adequate funding to support the 703 unit months available. J2) Reasons for Selecting Strategies Of the factors listed below, select all that influenced the PHA’s selection of the strategies it will pursue: (XI Funding constraints [XI Staffing constraints (XI 0 IXI 0 [XI Other: (list below) Limited availability of sites for assisted housing Extent to which particular housing needs are met by other organizations in the community Evidence of housing needs as demonstrated in the Consolidated Plan and other information available to the PHA Influence of the housing market on PHA programs Community priorities regarding housing assistance Results of consultation with local or state government Results of consultation with residents and the Resident Advisory Board Results of consultation with advocacy groups Page 13 of 41 form HUD-50075-SF (04/30/2003) - 2. Statement of Financial Resources [24 CFR Part 903.12 (b), 903.7 (c)] List on the following table the financial resources that are anticipated to be available to the PHA for the support of Federal public housing and tenant-based Section 8 assistance programs administered by the PHA during the Plan year. Note: the table assumes that Federal public housing or tenant based Section 8 assistance grant funds are expended on eligible purposes; therefore, uses of these funds need not be stated. For other funds, indicate the use for those funds as one of the following categories: public housing operations, public housing capital improvements, public housing safetylsecurity, public housing supportive services, Section 8 tenant-based assistance, Section 8 supportive services or other. 4. Other income (list below) , Affordable Housing, Public , I I $569,566 1 Facility Improvements h) HOME $288,356 1 Affordable Housing Total resources Other Federal Grants (list below) $6,962,607 2. Prior Year Federal Grants (unobligated funds only) (list below) I I I I I I 3. Public Housing Dwelling Rental Income 4. Non-federal sources (list below) I I I I Page 14 of 41 form HUDS0075-SF (04/30/2003) 3. PHA Policies Governing Eligibility, Selection, and Admissions [24 CFR Part 903.12 (b), 903.7 (b)] A. Public Housing Exemptions: PHAs that do not administer public housing are not required to complete subcomponent 3A. (1) Elipibilitv a. When does the PHA verify eligibility for admission to public housing? (select all that apply) 0 When families are within a certain number of being offered a unit: (state number) 0 When families are within a certain time of being offered a unit: (state time) 0 Other: (describe) b. Which non-income (screening) factors does the PHA use to establish eligibility for admission 0 Criminal or Drug-related activity 0 Rental history 0 Housekeeping 0 Other (describe) to public housing (select all that apply)? c. 0 Yes 0 No: Does the PHA request criminal records from local law enforcement agencies d. 0 Yes 0 No: Does the PHA request criminal records from State law enforcement agencies e. 0 Yes 0 No: Does the PHA access FBI criminal records from the FBI for screening for screening purposes? for screening purposes? purposes? (either directly or through an NCIC-authorized source) 12)Waitinp List Owanization a. Which methods does the PHA plan to use to organize its public housing waiting list (select all 0 Community-wide list Sub-jurisdictional lists 0 Site-based waiting lists 0 Other (describe) that apply) b. Where may interested persons apply for admission to pu,..: housing PHA main administrative ofice 0 0 Other (list below) PHA development site management office c. Site-Based Waiting Lists-Previous Year 1. Has the PHA operated one or more site-based waiting lists in the previous year? If yes, complete the following table; if not skip to d. Page 15 of 41 form HUD-50075SF (04/30/2003) Site-Based Waiting Lists Date Initiated Development Information: (Name, number, location) Initial mix of Racial, Ethnic or Disability Demographics Current mix of Racial, Ethnic or Disability Demographics since Initiation of SBWL Percent change between initial and current mix of Racial, Ethnic, or Disability demographics 2. What is the number of site based waiting list developments to which families may apply at one time? - 3. How many unit offers may an applicant turn down before being removed from the site- based waiting list? - 4. Yes 0 No: Is the PHA the subject of any pending fair housing complaint by HUD or any court order or settlement agreement? If yes, describe the order, agreement or complaint and describe how use of a site-based waiting list will not violate or be inconsistent with the order, agreement or complaint below: d. Site-Based Waiting Lists - Coming Year If the PHA plans to operate one or more site-based waiting lists in the coming year, answer each of the following questions; if not, skip to subsection (3) Assignment 1. How many site-based waiting lists will the PHA operate in the coming year? 2. 0 Yes 0 No: Are any or all of the PHA’s site-based waiting lists new for the upcoming year (that is, they are not part of a previously-HUD-approved site based waiting list plan)? If yes, how many lists? 3. 0 Yes 0 No: May families be on more than one list simultaneously If yes, how many lists? 4. Where can interested persons obtain more information about and sign up to be on the site- based waiting lists (select all that apply)? PHA main administrative office All PHA development management offices Management offices at developments with site-based waiting lists At the development to which they would like to apply Other (list below) 0 0 0 0 0 Page 16 of 41 form HUD-50075-SF (04/30/2003) J3) Assignment a. How many vacant unit choices are applicants ordinarily given before they fall to the bottom of or are removed fi-om the waiting list? (select one) - 0 One 0 Two 0 Three or More b. 0 Yes 0 No: Is this policy consistent across all waiting list types? c. If answer to b is no, list variations for any other than the primary public housing waiting list/s for the PHA: (4) Admissions Preferences a. Income targeting: 0 Yes No: Does the PHA plan to exceed the federal targeting requirements by targeting more than 40% of all new admissions to public housing to families at or below 30% of median area income? b. Transfer policies: In what circumstances will transfers take precedence over new admissions? (list below) 0 0 0 0 0 0 0 Emergencies Over-housed Under-housed Medical justification Administrative reasons determined by the PHA (e.g., to permit modernization work) Resident choice: (state circumstances below) Other: (list below) c. Preferences 1. Yes 0 No: Has the PHA established preferences for admission to public housing (other than date and time of application)? (If “no” is selected, skip to subsection (5) Occupancy) 2. Which of the following admission preferences does the PHA plan to employ in the coming year? (select all that apply from either former Federal preferences or other preferences) Former Federal preferences: 0 0 Victims of domestic violence 0 Substandard housing 0 Homelessness 0 Involuntary Displacement (Disaster, Government Action, Action of Housing Owner, Inaccessibility, Property Disposition) High rent burden (rent is > 50 percent of income) Page 17 of 41 form HUD-50075-SF (04/30/2003) Other preferences: (select below) 0 0 Veterans and veterans’ families [7 0 0 [7 0 0 0 Other preference(s) (list below) Working families and those unable to work because of age or disability Residents who live and/or work in the jurisdiction Those enrolled currently in educational, training, or upward mobility programs Households that contribute to meeting income goals (broad range of incomes) Households that contribute to meeting income requirements (targeting) Those previously enrolled in educational, training, or upward mobility programs Victims of reprisals or hate crimes 3. If the PHA will employ admissions preferences, please prioritize by placing a “1” in the space that represents your first priority, a “2” in the box representing your second priority, and so on. If you give equal weight to one or more of these choices (either through an absolute hierarchy or through a point system), place the same number next to each. That means you can use “1” more than once, “2” more than once, etc. 0 Date and Time Former Federal preferences: 0 Victims of domestic violence 0 Substandard housing Homelessness 0 High rent burden Involuntary Displacement (Disaster, Government Action, Action of Housing Owner, Inaccessibility, Property Disposition) Other preferences (select all that apply) 0 0 Veterans and veterans’ families 0 0 0 [7 0 Other preference(s) (list below) Working families and those unable to work because of age or disability Residents who live and/or work in the jurisdiction Those enrolled currently in educational, training, or upward mobility programs Households that contribute to meeting income goals (broad range of incomes) Households that contribute to meeting income requirements (targeting) Those previously enrolled in educational, training, or upward mobility programs Victims of reprisals or hate crimes 4. Relationship of preferences to income targeting requirements: 0 The PHA applies preferences within income tiers 0 Not applicable: the pool of applicant families ensures that the PHA will meet income targeting requirements Page 18 of 41 form HUD-50075-SF (0413012003) (5) Occupancv Development Name Number of Units $903.2(c)(l)(iv)] Explanation (if any) [see step 4 at a. What reference materials can applicants and residents use to obtain information about the rules 0 The PHA-resident lease 0 0 0 Other source (list) of occupancy of public housing (select all that apply) The PHA’s Admissions and (Continued) Occupancy policy PHA briefing seminars or written materials Deconcentration policy (if no explanation) [see step 5 at 5903.2(c)( l)(v)] b. How often must residents notify the PHA of changes in family composition? (select all that 0 0 0 0 Other (list) apply) At an annual reexamination and lease renewal Any time family composition changes At family request for revision 16) Deconcentration and Income Mixing a. 0 Yes 0 No: Does the PHA have any general occupancy (family) public housing developments covered by the deconcentration rule? If no, this section is complete. If yes, continue to the next question. b. Yes 0 No: Do any of these covered developments have average incomes above or below 85% to 115% of the average incomes of all such developments? If no, this section is complete. If yes, list these developments on the following table: I I I 1 B. Section 8 Exemptions: PHAs that do not administer section 8 are not required to complete sub-component 3B. Unless otherwise specified, all questions in this section apply only to the tenant-based section 8 assistance program (vouchers, and until completely merged into the voucher program, certificates). (1) Eligibility a. What is the extent of screening conducted by the PHA? (select all that apply) Criminal or drug-related activity only to the extent required by law or regulation Page19of41 form HUD-50075-SF (04/30/2003) 0 0 c] Other (list below) Criminal and drug-related activity, more extensively than required by law or regulation More general screening than criminal and drug-related activity (list factors): b. E Yes 0 No: Does the PHA request criminal records from local law enforcement agencies for screening purposes? c. 0 Yes No: Does the PHA request criminal records from State law enforcement agencies for screening purposes? d. 0 Yes No: Does the PHA access FBI criminal records from the FBI for screening purposes? (either directly or through an NCIC-authorized source) e. Indicate what kinds of information you share with prospective landlords? (select all that 0 Criminal or drug-related activity apply) Other (describe below) o If requested in writing, the last 3 addresses and owners where participant has lived (if known). J2) Waiting List Organization a. With which of the following program waiting lists is the section 8 tenant-based assistance (XI None Federal public housing Federal moderate rehabilitation 0 Federal project-based certificate program 0 waiting list merged? (select all that apply) Other federal or local program (list below) b. Where may interested persons apply for admission to section 8 tenant-based assistance? (select all that apply) (XI PHA main administrative office: 2965 Roosevelt St, Ste B, Carlsbad (XI Other (list below) o Via the Section 8 Waiting List Info line: 760/434-2935 o Via the Internet at: www.ci.carlsbad.ca.us o Applications are available at local community events 13) Search Time a. (XI Yes 0 No: Does the PHA give extensions on standard 60-day period to search for a If yes, state circumstances below: The PHA gives an initial 120-day period to search for an acceptable rental unit. Persons with disabilities may request an additional 60-day extension if, as a result of their disability, they are not capable to search for a rental unit. In addition, the PHA will take into consideration if a family searching has unexpected health issues or a family unit? Page 20 of 41 form HUD-50075-SF (04/30/2003) emergency that would preclude them from searching for a rental unit. In this type of situation, the PHA would require valid documentation of health issue or family emergency. /4) Admissions Preferences a. Income targeting IXI Yes 0 No: Does the PHA plan to exceed the federal targeting requirements by targeting more than 75% of all new admissions to the section 8 program to families at or below 30% of median area income? b. Preferences 1. Yes 0 No: Has the PHA established preferences for admission to section 8 tenant- based assistance? (other than date and time of application) (if no, skip to subcomponent (5) Special purpose section 8 assistance programs) 2. Which of the following admission preferences does the PHA plan to employ in the coming year? (select all that apply from either former Federal preferences or other preferences) Former Federal preferences Involuntary Displacement (Disaster, Government Action, Action of Housing Owner, Inaccessibility, Property Disposition) 0 Victims of domestic violence 0 Substandard housing 0 Homelessness 0 High rent burden (rent is > 50 percent of income) Other preferences (select all that apply) 0 IXI Veterans and veterans’ families 0 0 0 0 Working families and those unable to work because of age or disability Residents who live and/or work in your jurisdiction Those enrolled currently in educational, training, or upward mobility programs Households that contribute to meeting income goals (broad range of incomes) Households that contribute to meeting income requirements (targeting) Those previously enrolled in educational, training, or upward mobility programs Victims of reprisals or hate crimes Other preference(s) (list below) o Families whose gross annual income is at or below 30% percent of the median income Page 21 of 41 form HUD-50075-SF (04/30/2003) 3. If the PHA will employ admissions preferences, please prioritize by placing a “1” in the space that represents your first priority, a “2” in the box representing your second priority, and so on. If you give equal weight to one or more of these choices (either through an absolute hierarchy or through a point system), place the same number next to each. That means you can use “1” more than once, “2” more than once, etc. 1 Date and Time Former Federal preferences: 2 0 Victims of domestic violence 0 Substandard housing Homelessness c] High rent burden Involuntary Displacement (Disaster, Government Action, Action of Housing Owner, Inaccessibility, Property Disposition) Other preferences (select all that apply) 1 Veterans and veterans’ families 1 0 0 0 0 1 Other preference(s) (list below) Working families and those unable to work because of age or disability Residents who live andor work in your jurisdiction Those enrolled currently in educational, training, or upward mobility programs Households that contribute to meeting income goals (broad range of incomes) Households that contribute to meeting income requirements (targeting) Those previously enrolled in educational, training, or upward mobility programs Victims of reprisals or hate crimes 0 Families whose gross annual income is at or below 30% of the median income 4. Among applicants on the waiting list with equal preference status, how are applicants selected? (select one) 0 Date and time of application Drawing (lottery) or other random choice technique 5. If the PHA plans to employ preferences for “residents who live andor work in the This preference has previously been reviewed and approved by HUD The PHA requests approval for this preference through this PHA Plan jurisdiction” (select one) 0 6. Relationship of preferences to income targeting requirements: (select one) The PHA applies preferences within income tiers Not applicable: the pool of applicant families ensures that the PHA will meet income targeting requirements Page 22 of 41 form HUD-50075-SF (04/30/2003) (5) Special Purpose Section 8 Assistance Programs a. In which documents or other reference materials are the policies governing eligibility, selection, and admissions to any special-purpose section 8 program administered by the PHA contained? (select all that apply) 0 0 0 Other (list below) The Section 8 Administrative Plan Briefing sessions and written materials b. How does the PHA announce the availability of any special-purpose section 8 programs to the public? Through published notices 0 Other (list below) 4. PHA Rent Determination Policies [24 CFR Part 903.12(b), 903.7(d)] A. Public Housing Exemptions: PHAs that do not administer public housing are not required to complete sub-component 4A. (1) Income Based Rent Policies Describe the PHA’s income based rent setting policylies for public housing using, including discretionary (that is, not required by statute or regulation) income disregards and exclusions, in the appropriate spaces below. a. Use of discretionary policies: (select one of the following two) The PHA will not emplov any discretionary rent-setting policies for income-based rent in public housing. Income-based rents are set at the higher of 30% of adjusted monthly income, 10% of unadjusted monthly income, the welfare rent, or minimum rent (less HUD mandatory deductions and exclusions). (If selected, skip to sub-component (2)) The PHA emplovs discretionary policies for determining income-based rent (If selected, continue to question b.) 0 b. Minimum Rent 1. What amount best reflects the PHA’s minimum rent? (select one) 0 $0 0 $1-$25 0 $26-$50 2. 0 Yes 0 No: Has the PHA adopted any discretionary minimum rent hardship exemption policies? 3. If yes to question 2, list these policies below: Page 23 of 41 form HUD-50075SF (04/30/2003) c. Rents set at less than 30% of adjusted income 1. Yes No: Does the PHA plan to charge rents at a fixed amount or percentage less than 30% of adjusted income? 2. If yes to above, list the amounts or percentages charged and the circumstances under which these will be used below: d. Which of the discretionary (optional) deductions andor exclusions policies does the PHA 0 plan to employ (select all that apply) For the earned income of a previously unemployed household member For increases in earned income Fixed amount (other than general rent-setting policy) If yes, state amount/s and circumstances below: 0 Fixed percentage (other than general rent-setting policy) If yes, state percentagek and circumstances below: For household heads For other family members For transportation expenses For the non-reimbursed medical expenses of non-disabled or non-elderly families Other (describe below) e. Ceiling rents 1. Do you have ceiling rents? (rents set at a level lower than 30% of adjusted income) (select one) 0 Yes for all developments 0 Yes but only for some developments No 2. For which kinds of developments are ceiling rents in place? (select all that apply) 0 For all developments 0 0 0 Other (list below) 3. Select the space or spaces that best describe how you arrive at ceiling rents (select all that For all general occupancy developments (not elderly or disabled or elderly only) For specified general occupancy developments For certain parts of developments; e.g., the high-rise portion For certain size units; e.g., larger bedroom sizes apply) Page 24 of 41 form HUD-50075-SF (04/30/2003) Market comparability study 0 Fair market rents (FMR) 95th percentile rents 0 0 [7 Other (list below) 75 percent of operating costs 100 percent of operating costs for general occupancy (family) developments Operating costs plus debt service The “rental value” of the unit f. Rent re-determinations: 1. Between income reexaminations, how often must tenants report changes in income or family composition to the PHA such that the changes result in an adjustment to rent? (select all that apply) 0 Never At family option 0 0 0 Other (list below) Any time the family experiences an income increase Any time a family experiences an income increase above a threshold amount or percentage: (if selected, specify threshold) g. 0 Yes No: Does the PHA plan to implement individual savings accounts for residents (ISAs) as an alternative to the required 12 month disallowance of earned income and phasing in of rent increases in the next year? J2) Flat Rents a. In setting the market-based flat rents, what sources of information did the PHA use to establish comparability? (select all that apply.) 0 0 0 0 Other (list/describe below) The section 8 rent reasonableness study of comparable housing Survey of rents listed in local newspaper Survey of similar unassisted units in the neighborhood Page 25 of 41 form HUD-50075SF (04/30/2003) B. Section 8 Tenant-Based Assistance Exemptions: PHAs that do not administer Section 8 tenant-based assistance are not required to complete sub- component 4B. Unless otherwise specified, all questions in this section apply only to the tenant-based section 8 assistance program (vouchers, and until completely merged into the voucher program, certificates). J1) Payment Standards Describe the voucher payment standards and policies. a. What is the PHA’s payment standard? (select the category that best describes your standard) 0 0 lOO%ofFMR 0 At or above 90% but below 100% of FMR Above 100% but at or below 110% of FMR Above 1 10% of FMR (if HUD approved; describe circumstances below) b. If the payment standard is lower than FMR, why has the PHA selected this standard? (select 0 FMRs are adequate to ensure success among assisted families in the PHA’s segment of the FMR area 0 The PHA has chosen to serve additional families by lowering the payment standard 0 Reflects market or submarket 0 Other (list below) all that apply) c. If the payment standard is higher than FMR, why has the PHA chosen this level? (select all E Reflects market or submarket (XI 0 Other (list below) that apply) FMRs are not adequate to ensure success among assisted families in the PHA’s segment of the FMR area To increase housing options for families d. How often are payment standards reevaluated for adequacy? (select one) W Annually 0 Other (list below) e. What factors will the PHA consider in its assessment of the adequacy of its payment (XI (XI Other (list below) standard? (select all that apply) Success rates of assisted families Rent burdens of assisted families Market rents (2) Minimum Rent a. What amount best reflects the PHA’s minimum rent? (select one) Page 26 of 41 form HUD-50075SF (04/30/2003) b. 0 Yes (XI No: Has the PHA adopted any discretionary minimum rent hardship exemption policies? (if yes, list below) 5. Capital Improvement Needs [24 CFR Part 903.12(b), 903.7 (g)] Exemptions from Component 5: Section 8 only PHAs are not required to complete this component and may skip to Component 6. A. Capital Fund Activities Exemptions from sub-component 5A: PHAs that will not participate in the Capital Fund Program may skip to component 5B. All other PHAs must complete 5A as instructed. (1) Capital Fund Program a. 0 Yes 0 No Does the PHA plan to participate in the Capital Fund Program in the upcoming year? If yes, complete items 12 and 13 of this template (Capital Fund Program tables). If no, skip to B. b. 0 Yes 0 No: Does the PHA propose to use any portion of its CFP funds to repay debt incurred to finance capital improvements? If so, the PHA must identiq in its annual and 5-year capital plans the development(s) where such improvements will be made and show both how the proceeds of the financing will be used and the amount of the annual payments required to service the debt. (Note that separate HUD approval is required for such financing activities.). B. HOPE VI and Public Housing Development and Replacement Activities (Non-Capital Fund) Applicability of sub-component 5B: All PHAs administering public housing. Identify any approved HOPE VI andor public housing development or replacement activities not described in the Capital Fund Program Annual Statement. (1) Hope VI Revitalization a. 0 Yes 0 No: Has the PHA received a HOPE VI revitalization grant? (if no, skip to next component; if yes, provide responses to questions on chart below for each grant, copying and completing as many times as necessary) b. Status of HOPE VI revitalization grant (complete one set of questions for each grant) Development name: Development (project) number: Page 27 of 41 form HUD-50075-SF (04/30/2003) c. 0 Yes 0 No: d. 0 Yes 0 No: e. 0 Yes No: Status of grant: (select the statement that best describes the current status) Revitalization Plan under development 0 Revitalization Plan approved 0 Revitalization Plan submitted, pending approval Activities pursuant to an approved Revitalization Plan underway Does the PHA plan to apply for a HOPE VI Revitalization grant in the Plan year? If yes, list development nameh below: Will the PHA be engaging in any mixed-finance development activities for public housing in the Plan year? If yes, list developments or activities below: Will the PHA be conducting any other public housing development or replacement activities not discussed in the Capital Fund Program Annual Statement? If yes, list developments or activities below: 6. Demolition and Disposition [24 CFR Part 903.12(b), 903.7 (h)] Applicability of component 6: Section 8 only PHAs are not required to complete this section. a. 0 Yes 0 No: Does the PHA plan to conduct any demolition or disposition activities (pursuant to section 18 or 24 (Hope V1)of the U.S. Housing Act of 1937 (42 U.S.C. 1437p) or Section 202/Section 33 (Mandatory Conversion) in the plan Fiscal Year? (If “No”, skip to component 7; if “yes”, complete one activity description for each development on the following chart.) DemolitionDisposition Activity Description 1 a. Development name: 1 b. Development (project) number: 2. Activity type: Demolition 0 3. Application status (select one) Disposition 0 Approved 0 Submitted, pending approval 0 Planned application 4. Date application approved, submitted, or planned for submission: JDDIMMNY) 5. Number of units affected: 6. Coverage of action (select one) 0 Part of the development 0 Total development 7. Timeline for activity: a. Actual or projected start date of activity: b. Projected end date of activity: Page 28 of 41 form HUD-50075-SF (04/30/2003) 7. Section 8 Tenant Based Assistance--Section 8(v) Homeownership Propram [24 CFR Part 903.12(b), 903.7(k)( l)(i)] (1) 0 Yes No: Does the PHA plan to administer a Section 8 Homeownership program pursuant to Section 8(y) of the U.S.H.A. of 1937, as implemented by 24 CFR part 982 ? (If “No”, skip to the next component; if “yes”, complete each program description below (copy and complete questions for each program identified.) (2) Program Description a. Size of Program 0 Yes No: Will the PHA limit the number of families participating in the Section 8 homeownership option? If the answer to the question above was yes, what is the maximum number of participants this fiscal year?- b. PHA-established eligibility criteria 0 Yes 0 NO: Will the PHA’s program have eligibility criteria for participation in its Section 8 Homeownership Option program in addition to HUD criteria? If yes, list criteria below: c. What actions will the PHA undertake to implement the program this year (list)? (3) Capacity of the PHA to Administer a Section 8 Homeownership Program The PHA has demonstrated its capacity to administer the program by (select all that apply): a. Establishing a minimum homeowner downpayment requirement of at least 3 percent of purchase price and requiring that at least 1 percent of the purchase price comes from the family’s resources. b. Requiring that financing for purchase of a home under its Section 8 homeownership will be provided, insured or guaranteed by the state or Federal government; comply with secondary mortgage market underwriting requirements; or comply with generally accepted private sector underwriting standards. c. 0 Partnering with a qualified agency or agencies to administer the program (list name(s) and years of experience below). d. Demonstrating that it has other relevant experience (list experience below). Page 29 of 41 form HUD-50075-SF (04/30/2003) 8. Civil Rights Certifications [24 CFR Part 903.12 (b), 903.7 (o)] Civil rights certifications are included in the PHA Plan CertiJcations of Compliance with the PHA Plans and Related Regulations: Board Resolution to Accompany the Standard Annual, Standard Five-Year, and Streamlined Five-Year/Annual Plans, which is submitted to the Field Office in hard copy-see Table of Contents. 9. Additional Information [24 CFR Part 903.12 (b), 903.7 (r)] A. PHA Progress in MeetinP the Mission and Goals Described in the 5- Year Plan (Provide a statement of the PHA s progress against the goals and objectives established in the previous 5- Year Plan for the period FY 2000 - 2004, B. Criteria for Substantial Deviations and Simificant Amendments (1) Amendment and Deviation Definitions 24 CFR Part 903.7(r) PHAs are required to define and adopt their own standards of substantial deviation fiom the 5-year Plan and Significant Amendment to the Annual Plan. The definition of significant amendment is important because it defines when the PHA will subject a change to the policies or activities described in the Annual Plan to full public hearing and HUD review before implementation. a. Substantial Deviation fiom the 5-Year Plan b. Significant Amendment or Modification to the Annual Plan C. Other Information [24 CFR Part 903.13,903.15] (1) Resident Advisory Board Recommendations a. Yes 0 No: Did the PHA receive any comments on the PHA Plan from the If yes, provide the comments below: 0 Resident Advisory Boards? Concern that the Section 8 Program was being eliminated Concern for the Elderly and Persons with Disabilities that affordable housing would not be available Concern for the number of people that are on the waiting list and the lack of funding Concern that ownerdagents were afraid to accept the Section 8 program because of the cuts in funding and uncertainty of the future of the program Page 30 of 41 form HUD-50075SF (04/30/2003) b. In what manner did the PHA address those comments? (select all that apply) Considered comments, but determined that no changes to the PHA Plan were necessary. The PHA changed portions of the PHA Plan in response to comments List changes below: Other: (list below) All comments were funding-related, something that the PHA has no real control over. (2) Resident Membership on PHA Governing Board The governing board of each PHA is required to have at least one member who is directly assisted by the PHA, unless the PHA meets certain exemption criteria. Regulations governing the resident board member are found at 24 CFR Part 964, Subpart E. a. Does the PHA governing board include at least one member who is directly assisted by the PHA this year? Yes 0 No: If yes, complete the following: Name of Resident Member of the PHA Governing Board: Bobbie Smith Margaret Schraml Method of Selection: Appointment The term of appointment is (include the date term expires): July 2007 0 Election by Residents (if checked, complete next section--Description of Resident Election Process) Description of Resident Election Process Nomination of candidates for place on the ballot: (select all that apply) 0 0 0 Other: (describe) Candidates were nominated by resident and assisted family organizations Candidates could be nominated by any adult recipient of PHA assistance Self-nomination: Candidates registered with the PHA and requested a place on ballot Eligible candidates: (select one) [7 0 0 0 Any recipient of PHA assistance Any head of household receiving PHA assistance Any adult recipient of PHA assistance Any adult member of a resident or assisted family organization Page 31 of 41 form HUD-50075SF (04/30/2003) Other (list) Eligible voters: (select all that apply) 0 All adult recipients of PHA assistance (public housing and section 8 tenant-based assistance) 0 Representatives of all PHA resident and assisted family organizations 0 Other (list) b. If the PHA governing board does not have at least one member who is directly assisted by the PHA, why not? 0 0 The PHA is located in a State that requires the members of a governing board to be salaried and serve on a full time basis The PHA has less than 300 public housing units, has provided reasonable notice to the resident advisory board of the opportunity to serve on the governing board, and has not been notified by any resident of their interest to participate in the Board. 0 Other (explain): Date of next term expiration of a governing board member: Name and title of appointing official(s) for governing board (indicate appointing official for the next available position): (3) PHA Statement of Consistency with the Consolidated Plan [24 CFR Part 903.151 For each applicable consolidated Plan, make the following statement (copy questions as many times as necessary). Consolidated Plan jurisdiction: (provide name here) a. The PHA has taken the following steps to ensure consistency of this PHA Plan with the Consolidated Plan for the jurisdiction: (select all that apply): The PHA has based its statement of needs of families on its waiting list on the needs expressed in the Consolidated Plads. The PHA has participated in any consultation process organized and offered by the Consolidated Plan agency in the development of the Consolidated Plan. The PHA has consulted with the Consolidated Plan agency during the development of this PHA Plan. Activities to be undertaken by the PHA in the coming year are consistent with the initiatives contained in the Consolidated Plan. (list below) E 0 Other: (list below) b. The Consolidated Plan of the jurisdiction supports the PHA Plan with the following actions and commitments: (describe below) Page 32 of 41 form HUD-50075SF (04/30/2003) (4) (Reserved) Use this section to provide any additional information requested by HUD. Display Document A Document 10. Proiect-Based Voucher Program PHA Certijications of Compliance with the PHA Plans and Related Regulations and Board Resolution to Accompany the Standard Annual, Standard Five-Year, and Streamlined Five- Year/Annual Plans. StateILocal Government Certification of Consistency with the Consolidated Plan. Standard 5 Year and Annual Plans; streamlined 5 Year Plans 5 Year Plans a. 0 Yes No: Does the PHA plan to “project-base” any tenant-based Section 8 vouchers in the coming year? If yes, answer the following questions. B b. Yes Ix] No: Are there circumstances indicating that the project basing of the units, rather than tenant-basing of the same amount of assistance is an appropriate option? I If yes, check which circumstances apply: 0 0 Other (describe below:) Low utilization rate for vouchers due to lack of suitable rental units Access to neighborhoods outside of high poverty areas Document D c. Indicate the number of units and general location of units (e.g. eligible census tracts or smaller areas within eligible census tracts): involvement. Housing Needs Statement of the Consolidated Plan for the jurisdiction(s) in which the PHA is located and any additional backup data to support statement of housing needs for families on the PHA’s public housing and Section 8 tenant-based waiting Annual Plan: Housing Needs 11. List of Supporting Documents Available for Review for Streamlined Five-Year/ Annual PHA Plans PHAs are to indicate which documents are available for public review by placing a mark in the “Applicable & On Display” column in the appropriate rows. All listed documents must be on display if applicable to the program activities conducted by the PHA. List of Supporting Documents Available for Review Applicable I Supporting Document I Related Plan Component NIA I On &I Most recent board-approved operating budget for the public housing program Annual Plan: Financial Resources C reflecting that the PHA has examined its programs or proposed programs, identified any impediments to fair housing choice in those programs, addressed or is addressing those impediments in a reasonable fashion in view of the resources available, and worked or is working with local jurisdictions to implement any of the jurisdictions’ initiatives to affirmatively further fair housing that require the PHA’s Page 33 of 41 form HUD-50075-SF (04/30/2003) Applicable & On Display NIA NIA NIA NIA NIA Document E NIA NIA NIA Document H Document E N/A NIA Document E NIA NIA NtA NIA NIA VIA NIA List of Supporting Documents Available for Review Supporting Document Public Housing Admissions and (Continued) Occupancy Policy (A&O/ACOP), which includes the Tenant Selection and Assignment Plan [TSAP] and the Site- Based Waiting List Procedure. Any policy governing occupancy of Police Officers and Over-Income Tenants in Public Housing. 0 Check here if included in the public housing A&O Policy. ~~ Section 8 Administrative Plan ~ Public housing rent determination policies, including the method for setting public housing flat rents. [7 Check here if included in the public housing A & 0 Policy. Schedule of flat rents offered at each public housing development. 0 Check here if included in the public housing A & 0 Policy. Section 8 rent determination (payment standard) policies (if included in plan, not necessary as a supporting document) and written analysis of Section 8 payment standard policies. IXI Check here if included in Section 8 Administrative Plan. Public housing management and maintenance policy documents, including policies for the prevention or eradication of pest infestation (including cockroach infestation). Results of latest Public Housing Assessment System (PHAS) Assessment (or other applicable assessment). Follow-up Plan to Results of the PHAS Resident Satisfaction Survey (if necessary) ~ Results of latest Section 8 Management Assessment System (SEMAP) Any policies governing any Section 8 special housing types Consortium agreement(s). IXI check here if included in Section 8 Administrative Plan Public housing grievance procedures 0 Check here if included in the public housing A & 0 Policy. Section 8 informal review and hearing procedures. Check here if included in Section 8 Administrative Plan. The Capital FundIComprehensive Grant Program Annual Statement Performance and Evaluation Report for any active grant year. Most recent CIAP Budgeflrogress Report (HUD 52825) for any active CIAP grants. Approved HOPE VI applications or, if more recent, approved or submitted HOPE VI Revitalization Plans, or any other approved proposal for development of public housing. Self-evaluation, Needs Assessment and Transition Plan required by regulations implementing Section 504 of the Rehabilitation Act and the Americans with Disabilities Act. See PIH Notice 99-52 (HA). Approved or submitted applications for demolition and/or disposition of public housing. Approved or submitted applications for designation of public housing (Designated Housing Plans). Approved or submitted assessments of reasonable revitalization of public housing and approved or submitted conversion plans prepared pursuant to section 202 of the 1996 HUD Appropriations Act, Section 22 of the US Housing Act of 1937, or ~~ Relatedplan Component Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Rent Determination Annual Plan: Rent Determination Annual Plan: Rent Determination Annual Plan: Operations and Maintenance Annual Plan: Management and Operations Annual Plan: Operations and Maintenance and Community Service & Self-Sufficiency Annual Plan: Management and Operations Annual Plan: Operations and Maintenance Annual Plan: Agency Identification and Operations/ Management Annual Plan: Grievance Procedures Annual Plan: Grievance Procedures Annual Plan: Capital Needs Annual Plan: Capital Needs Annual Plan: Capital Needs Annual Plan: Capital Needs Annual Plan: Demolition and Disposition Annual Plan: Designation of Public Housing Annual Plan: Conversion of Public Housing Page 34 of 41 form HUD-50075-SF (04/30/2003) Applicable Supporting Document & On Related Plan Component NIA I 0 Check here if included in Public Housing A& 0 Policy I CooDerative ameement between the PHA and the TANF agency and between the I Service LG Self-sufficiency I Annual Plan: Community Display NIA NfA NIA I I- NIA Document I PHA and local employment and training service agencies. I FSS Action Plan(s) for public housing and/or Section 8. I Service & Self-sufficiency I Annual Plan: Community Section 33 of the US Housing Act of 1937. Documentation for required Initial Assessment and any additional information Annual Plan: Voluntary required by HUD for Voluntary Conversion. Conversion of Public Housing Approved or submitted public housing homeownership programslplans. Annual Plan: Homeownership Policies governing any Section 8 Homeownership program Annual Plan: (Section of the Section 8 Administrative Plan) Homeownership Public Housing Community Service PolicyPrograms Annual Plan: Community F I I Service & Self-sufficiency I Section 3 documentation required by 24 CFR Part 135, Subpart E for public I Annual Plan: Community Page 35 of 41 form HUD-50075-SF (04/30/2003) -- .- .. z - ;i 5 g a k 5 Y I c e F E cb E 0 V z ,I + 3 Attachment 1 I iLi Attachmeat 2 City of Carlsbad Housing and Redevelopment Department HELPING PEOPLE TO ACHIEVE THEIR DREAMS BUSINESS & AFFORDABLE HOUS1NG 1 ENHANCED QU ALlTV OF LIFE STRONG COMMUNITY SPIRIT STRATEGIC ASSESSMENT REPORT MAY 2003 HOUSING AND REDEVELOPMENT DEPARTMENT STRATEGIC ASSESSMENT A Note from the Director.. . For the Housing and Redevelopment Department, helping people is the most important and rewarding part of the job. We help people by promoting business and property development, providing affordable housing, enhancing opportunities for improvements to quality of life, and assisting to create a strong community spirit. To ensure that we are helping people to the best of our abilities and resources, the Department completed a Strategic Assessment in 2002/2003. Our goal was to evaluate our current efforts and then to identify priorities for action today as well as to develop a plan for future years. The Department felt that this was important to ensure that staff idwill be spending its time on appropriate activities/programs that best meet the quality of life needs of our customers, or stakeholders. All staff within the Housing and Redevelopment Department participated in this Strategic Assessment. The completion of the Assessment also involved a spirit of cooperation between Department Staff and representatives of its stakeholder groups. It was an interesting and inspiring process of discovery. The following report outlines the results of our Strategic Assessment as well as the manner in which the Carlsbad Housing and Redevelopment Department intends to continue its efforts to implement its programs and remain successful in its achievements. In our Vision for the future, the Carlsbad Housing and Redevelopment Department is recognized by the community and industry as a highly effective and compassionate organization that makes a difference in people's lives. This statement of our future will inspire us to truly be the best that we can be and to provide the very best to the Carlsbad community through our efforts. DEBBIE FOUNTAIN Strategic Assessment Page 2 Housing and Redevelopment Department May, 2003 . TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................... 4 STRATEGIC ASSESSMENT REPORT Who are we? ........................................................................................... Process Summary ..................................................................................... Stakeholders Summary ............................................................................... Current Budget Allocations (FTE) .................................................................. Future Trends and Demographics .................................................................. Target Issues ........................................................................................... Programs/Projects ..................................................................................... SWOT Analysis ....................................................................................... Vision, Mission, Values .............................................................................. Allocation of Effort ................................................................................... Strategic Goals and Focused Initiatives ............................................................ Key Success Factors ................................................................................. .. 8 9 10 11 11 12 16 16 19 21 22 24 APPENDICES ...................................................................................................... 27 Appendix A . Stakeholder Survey Results ............................................. Appendix B . Stakeholders and Identified Need ...................................... Appendix C . Programs/Projects/Tasks/Activities Analysis ........................ 28 36 39 43 Appendix D - Time Logs, Time Summaries & Assigned TaskdActivities List .. Strategic Assessment Page 3 Housing and Redevelopment Department May. 2003 CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT STRATEGIC ASSESSMENT Vision: Mission: Values: Target Issues: EXECUTIVE SUMMARY The Carlsbad Housing and Redevelopment Department is recognized by the community and industry as a highly effective and compassionate organization that makes a difference in people’s lives. The Carlsbad Housing and Redevelopment Department helps people to achieve their dreams by partnering with the community to provide excellent places to live, operate a business, receive services, shop and enjoy a top quality lifestyle. The following seven (7) qualities are what we value most in the delivery of services from the Department: . Compassion . Integrity/Accountability . Respect . Team-onentation . Empowerment . Fairness . Fostering Positive Result The key target issuedneeds identified for each of the stakeholder focus groups are illustrated below. n HOUSWO AND REDEVELOWENT DEPARTMENT Strategic Assessment Page 4 Housing and Redevelopment Department May, 2003 Top Priority Strategic Goals and Focused Initiatives: GoaVInitiative #1: Continue efforts to establish Carlsbad Village as a quality shopping, living and working environment. la. Encourage/facilitate private development within Village through streamlined redevelopment permit process. 1 b. Focus marketing and other actions on redevelopmentlrevitalization of North State Street. 1 c. Prepare and initiate implementation of Redevelopment Operations Strategy to address “life” after expiration of Village Redevelopment Plan. 1 d. Increase city-owned public parking facilities. GoaVInitiative #2: Eliminate blighting influences and facilitate revitalization of South Carlsbad Coastal Redevelopment Area. 2a. Complete and initiate Land Use Strategy and Vision Statement for Ponto Area/Planning Area 3. 2b. Process amendment to SCCRA Redevelopment Plan to allow for construction of desalination plant within boundaries of area. GoaVInitiative #3: Increase inventory and/or opportunities for affordable housing within Carlsbad for low income households. 3a. Enhance Housing and Redevelopment’s role in processing of affordable housing projects to facilitate faster processing and construction of additional affordable housing units. 3b. Identify new opportunities for increasing affordable housing opportunities through acquisition and rehabilitation, new construction, or other programs. 3c. Continue efforts to streamline Rental Assistance Program to more fully utilize existing vouchers. GoaVInitiative ##4: Meet basic needs of low income households through partnerships with outside social service agencies. 4a. Continue implementation of CDBG/HOME Program to provide funding to social service agencies and housing programs. Strategic Assessment Page 5 Housing and Redevelopment Department May, 2003 4b. Ensure completion of CDBG/HOME projects in timely manner to maintain full compliance with program regulations/mandates. GoaYInitiative #5: Identify best practices in management and implementation of Department Programs to ensure highly effective and efficient operations. 5a. 5b. 5c. 5d. 5e. 5 f. Provide time management training to staff to allow for more effective and efficient operation of Department programs/projects. Provide training to staff to help with customer service issues of concern. Assist staff to develop enhanced skills for providing information and responding to inquiries in a more time efficient manner. Enhancehncrease use of technology for efficiency purposes and to provide better information to customers. Implement program for cross training staff. Revise referral procedures to enhance customer service while reducing staff time requirements. Enhance communication with stakeholders. Key Success Factors: + New developmenthedevelopment projects are approved for the Village Area, and stakeholders report high levels of satisfaction with the processing of related permits. + Vision and marketing efforts result in new developer contacts for potential redevelopment projects in the North State Street area of the Village. + Redevelopment Operations Strategy is adopted and implementation is initiated to allow for smooth transition to new “life” after expiration of Village Redevelopment Plan. + New public parking opportunities are provided which increase the total number of parking spaces available within the Village Area. + Completion of an economic analysis indicates improvements to the redevelopment areas (ie., decreasing commercial vacancy rates, increasing property values). Strategic Assessment Housing and Redevelopment Department May, 2003 Page 6 + New Land Use Strategy and Vision Statement for South Carlsbad Coastal Redevelopment Area and related implementation activities result in proposals for new development projects. + City has its financial and water reliability needs met through negotiations for construction of new desalination plant in South Carlsbad Coastal Redevelopment Area. + Stakeholders report high level of satisfaction with efforts to process permits for new affordable housing projects in Carlsbad. + New feasible opportunities are identified for increasing affordable housing opportunities. + The Rental Assistance Program receives a “high performer” assessment by the US Department of Housing and Urban Development by more filly utilizing all of its existing vouchers and maintaining at least a 95% lease- up rate, as well as maintaining full compliance with all applicable program regulations. + Participants report a high level of satisfaction with the difference made in their lives as a result of their receipt of assistance through one or more Department programs. + Stakeholders report high level of satisfaction with administration of the City’s CDBG/HOME Program, and US Department of Housing and Urban Development finds that City is in fill compliance with all applicable regulations for program, including the timely expenditure of funds. + Staff report increased sense of accomplishment with the services they provide, and acquisition of skills necessary to more effectively and efficiently provide Department services. + City Manager and City Council both report a sense of accomplishment with programs administered by the Department. Strategic Assessment Page 7 Housing and Redevelopment Department May, 2003 b t City of Carlsbad Attachment 3 Housing and Redevelopment Department * Rental Assistance *Homebuyers Assistance *New Construction * Rehabilitation *Social Services * Fam ily Self-Su fficien cy *Career Development En Hun cing Opportunities *New Products *State Funds *Federal Funds -n-----d- - Attachment 4 AFFORDABLE HOUSING IN CARLSBAD (FOR LOW INCOME HOUSEHOLDS) 1993 to Present UPDATED MARCH 18,2005 SUCCESS TO DATE : 1367 UNITS CONSTRUCTED/PROVIDED~ Apartments: 1060 units total (78% of total) 344 units - Villa Loma - SW Quadrant 138 units - Laurel Tree - SW Quadrant 92 units - Poinsettia Station - SW Quadrant 28 units - Vista Las Flores - SW Quadrant 116 units - Rancho Carrillo - SE Quadrant 50 units - Sunny Creek Apartments - NE Quadrant 106 units - Mariposa Apartments - NE Quadrant 75 units - Tyler Senior Apartments - NW Quadrant 11 1 units - Kelly Ranch - NW Quadrant Townhomes (For-Sale): 137 units total (10%) 0 0 0 42 units - Cherry Tree - SW Quadrant 90 units - Rancho Carrillo - SE Quadrant 5 units - Calavera Hills - NE Quadrant Second Dwelling Units: 170 units total (12%) 0 Various locations throughout the City I PENDING: 438 UNITS UNDER CONSTRUCTION OR PENDING CONSTRUCTION I Apartments: 300 units total 0 0 0 0 0 24 units - Manzanita Apartments - SW Quadrant 180 units - La Paloma - SE Quadrant 29 units - The Summit - NE Quadrant 56 units - Carlsbad Family Apts - SE Quadrant (Pending) 11 units - Roosevelt Street Apts - NW Quadrant (Pending) Townhomes (For-Sale): 138 units total 0 0 0 0 24 units - Rose Bay/Thompson/Tabata - SW Quadrant 100 units - Bressi Ranch - SE Quadrant 11 units - Village By The Sea - NW Quadrant 3 units - Laguna Point - NW Quadrant PROJECTS IN APPLICATION PROCESSING OR PLANNING STAGES: APPROX. 350+