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HomeMy WebLinkAbout2019-03-26; Report on Tyler Court Senior Apartments; Fountain, DebbieTo th~ members of the: CITY COUNCIL ACM _j_ CA / CC ,,{)ate 3 l2.toli4 CM _j__ COO j March 26, 2019 Council Memorandum To: Honorable Mayor Hall and Members of the City Council {cityof Carlsbad From: Via: Re: Debbie Fountain, Community & EconomicF velopment Director Elaine Lu key, Chief Operations Officer ' Report on Tyler Court Senior Apartments This memorandum summarizes actions taken to address comments and concerns from a resident atthe city-owned and operated Tyler Court Senior Apartments located at 3363 Tyler Street, and to provide related rental policy information. The resident's feedback included concerns about the on-site assistant property manager, the rents (and potential increases), ongoing maintenance and property improvements, and social interaction opportunities for residents living at the apartment complex. Background The Tyler Court Senior Apartments (75 rental homes) is a property owned by the City of Carlsbad and managed, on behalf of the city, by WSH Management. This management company · has experience and expertise to manage the city's low income restricted, senior development and was selected through a request for proposal process conducted in the winter of 2014. The city has received occasional feedback on resident concerns about management policies and employee behaviors since the contract with WSH Management was effective on Feb. 1, 2015. Concerns from residents are researched by either WSH Management and/or the city as determined to be appropriate in light of the type of concern. For example, oversight of the contract employees operating on site is the responsibility of WSH Management. In December 2018, the city arranged for two meetings with Tyler Court residents to obtain feedback and share updates: one meeting was hosted by WSH Management, and one meeting was hosted by the city. A summary of those meetings is provided below as well as a discussion on rental policies for the complex. Discussion On Dec. 10, 2018, WSH Management held an informational meeting with residents of Tyler Court Senior Apartments. The purpose of this meeting was to share information on staffing, property maintenance, and various improvements being made to the property. There were approximately 40 residents in attendance. The information provided at the meeting included: • Community room improvements, including new furniture, computers and computer cabinets. Community & Economic Development Faraday Center 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-2710 Memo ID #2019024 Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 2 • Resident survey results indicating a 3.38 (out of 5) overall satisfaction score for 2018. Survey results for 2017 indicated a 4.61 overall satisfaction score. Discussion was held on what WSH Management could do to increase scores in 2019. Residents shared their ideas, suggestions, and comments. • Requests to occupy ADA designated apartments, and the process for requesting special accommodations for those with special needs. • Changes in staff indicating that the maintenance employee would now be living on site, and that the assistant property manager previously living on site is no longer working for WSH Management. Information was shared indicating that WSH would be replacing the previous assistant property manager as soon as they were able to do so; they were going to take time to find t he best assistant manager possible for Tyler Court Apartments. • New grievance form to allow for enhanced confidentiality. • Personal safety for all residents. Residents were encouraged to look out for each other and report anything that is harmful or suspicious. Also, residents were encouraged to call the police whenever necessary. • Resident questions, suggestions and ideas for other improvements to the community room and complex. Residents were encouraged to work as a team and help each other. According to WSH Management, the response from the residents to the changes at Tyler Court Apartments was very favorable. Following the resident meeting with WSH Management, city staff met with the residents on Dec. 13, 2018. The purpose of this meeting was to discuss city programs and other efforts to develop partnerships that would provide benefit to residents at the Tyler Court Apartments and enhance their quality of life. There were approximately 50 residents in attendance at this meeting. The new Senior Center Manager, Margaret Hamer, presented information on the variety of senior programs offered by the city at the Senior Center (both free and for a fee). The residents did express concern over the cost of some of the programs, especially the gym and the fact that insurance is not accepted to help with the cost. Ms. Hamer shared with the residents that she would check into their concerns and get back to them. Overall, there was great appreciation for the programs at the Senior Center and a hearty welcome was given to Ms. Hamer. Marie Jones-Kirk, Community Services Manager, shared information on volunteer opportunities and discussed how residents could participate in service to the community and to each other at the Tyler Court Apartments. Debbie Fountain, Community & Economic Development Director, shared information on potential new city partnerships with service organizations and Pacific Ridge School to make additional improvements at Tyler Court Apartments and to provide social activities and/or learning opportunities. These partnerships are being developed and will result in some additional activities at Tyler Court Apartments in the future. Ms. Fountain also had the Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 3 residents participate in a Carlsbad Trivia Game (with prizes) and provided refreshments to create a desired social time at the Tyler Court Apartments during the holidays. Rental Policies On the topic of rents at the Tyler Court Apartments, it is important to note that the Tyler Court Senior Apartments complex has income and rent restrictions and is a senior only rental development. Per city policy, the apartment complex has a total of 75 rental homes; 38 of the homes have income and rent restrictions for very low-income households at 50 percent or below the Area Median Income (AMI), and 37 of the homes have income and rent restrictions for extremely low-income households at 30 percent of the AMI (as set forth by the US Department of Housing and Urban Development, HUD). Below are the 2018 rents and income limits for the Tyler Court Apartments: Bedroom Size Income Maximum Rent Amount HUD allowed Category Income rent amount One Bedroom, 30% of AMI $20,450 $496 $511 1 person One Bedroom, 50% of AMI $34,100 $836 $852 1 person Two Bedroom, 30% of AMI $23,400 $554 $585 2 person Two Bedroom, 50%of AMI $38,950 $937 $973 2 person While the city uses the HUD income and rental charts for qualification and maximum rent calculations (see Attachment A to this memorandum), only one unit at the apartment complex . is technically regulated by federal regulations. These regulations, set forth by HUD, apply to the city because the city used some federal HOME funds to finance the acquisition of the property in 1999. The city is not obligated to use the HUD income limits, rent calculations or other regulations for the other rental homes, but has chosen to do so to remain consistent with other low income and rent restricted rental homes in Carlsbad. The city ultimately has the authority to set the rental and income qualification policies for the Tyler Court Apartments as it deems appropriate to meets its goals and objectives, with the only limitation being that the units must remain affordable to lower income (80 percent of AMI), senior households. Each year (around springtime) the city receives the household income limits and related rent amounts from HUD. If the income limits increase, the rents can increase if the property owner chooses to do so. The city is currently charging rents at the Tyler Court Apartments that are slightly less than those allowed by HUD. As the owner though, the city could change the income categories and/or rents or increase rents at the Tyler Court Apartments to the HUD allowed amount similar to all other affordable housing developments in Carlsbad. The city and WSH Management have mutually agreed to a rental policy which does not increase rents; there have Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 4 been no rent increases for the past four years. The city will continue to manage the property in a manner that allows it to maintain the lowest rents possible and still cover its costs, the'reby assisting the neediest seniors. The rental rate and qualification policies for the Tyler Court Apartments are routinely reviewed by the city in partnership with the management company, which is currently WSH Management. A question was recently asked about the rental policy set by the city in 2014 (when Interfaith Housing was the managing company) which allowed for residents to exceed the income limit of 30 percent of AMI by as much as 10 percent before they were required to move to a higher income restricted unit (SO percent of AMI) from a rental rate standpoint; this policy is typical of tax credit financed projects. While the Tyler Court Apartments are not a tax credit financed project, the city often uses policies of other financing programs (tax credit, rental assistance, etc.) to address various issues that arise during the year from an income or rental rate standpoint to ensure consistency of application with other similar programs. This particular rental policy stemmed from the requirement for annual re-certifications to determine if residents remain eligible to continue to live in the income and rent restricted Tyler Court Apartments. In 2014, some residents were receiving additional income that exceeded the 30 percent income maximum for the lower rent, but in some cases were only a small amount over the maximum allowed household income amount. Rather than determine the household was no longer eligible for the restricted rent unit at 30 percent of AMI and increase the rent fairly substantially (see above chart) for that resident, the city decided to implement the tax credit rule which allowed for income to exceed the maximum of 30 percent of AMI up by 10 percent (up to a maximum of 40 percent of AMI) and remain in the rent restricted unit for that income category (with no rent increase). Because the city is not limited by the federal regulations for income qualifications and rental rates (with the exception of one HOME funded unit) at the Tyler Court Apartments, staff is currently researching the operational costs for fiscal year 2017-18 to determine ifs an alternate rental rate structure could be implemented at Tyler Court to make overall rents more affordable to its residents while continuing to cover all related operational costs on an annual basis. Once the cost analysis is complete, a staff report will be presented to the City Council for . consideration of options for a change in rental rate structure for the city-owned Tyler Court Apartments. At this time, the rental rates and income qualifications shall remain as set forth above. It is important to note that income qualifications may change based on the new HUD income charts anticipated to be approved and distributed within the next few weeks. However those income changes will only impact new tenants for qualification purposes and will not impact existing tenants until their annual recertification to ensure continued eligibility for residency at Tyler Court. There will be no increase in rents based on the revised income charts. Attachment: Attachment A, HUD Income and Rent Charts, 2018 Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 5 cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Gary Barberio, Assistant City Manager San Diego-Carlsbad, CA_MSA Household Income Limits Note: The following household income fimits are adjusted for a high cost area as per the Federal Housing Act of 1937 and calculated using HCD methodology lo comply with Health and Safety Code Secllons 50052.5 and 50093. Extremely Low Income 30% 35% Hshold Size Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income ONE $20,450 $1,704 $511 $23,850 $1,988 TWO $23,400 $1,950 $585 $27,250 $2,271 THREE $26,300 $2,192 $657 $30,650 $2,554 FOUR $29,200 $2,433 $730 $34,050 $2,838 FIVE $31,550 $2,629 $788 $36,800 $3,067 SIX $33,900 $2,825 $847 $39,500 $3,292 SEVEN $38,060 $3,172 $951 $42,250 $3,521 EIGHT $42 380 $3532 $1 059 $44 950 $3'746 Very Low Income 50% 60% Hshold Size Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income ONE $34,100 $2,842 $852 $40,900 $3,408 TWO $38,950 $3,246 $973 $46,750 $3,896 THREE $43,800 $3,650 $1,095 $52,600 $4,383 FOUR $48,650 $4,054 $1,216 $58,400 $4,867 FIVE $52,550 $4,379 $1,313 $63,100 $5,258 SIX $56,450 $4,704 $1,411 $67,750 $5,646 SEVEN $60,350 $5,029 $1,508 $72,450 $6,038 EIGHT $64 250 $5354 $1 606 $77 100 $6425 100% 110% Hshold Size Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income ONE $57,300 $4,775 $1,432 $63,000 $5,250 TWO $65,450 $5,454 $1,636 $72,000 $6,000 THREE $73,650 $6,138 $1,841 $81,000 $6,750 FOUR $81,800 $6,817 $2,045 $90,000 $7,500 FIVE $88,350 $7,363 $2,208 $97,200 $8,100 SIX $94,900 $7,908 $2,372 $104,400 $8,700 SEVEN $101,450 $8,454 $2,536 $111,600 $9,300 EIGHT $108 000 $9000 $2 700 $118 800 $9900 Note: Income levels 80% and below are adjusted by a HUD high cost area allowance. 30.00% Monthly $596 $681 $766 $851 $920 $987 $1,056 $1123 30.00% Monthlv $1,022 $1,168 $1,315 $1,460 $1,577 $1,693 $1,811 $1,927 30.00% Monthlv $1,575 $1,800 $2,025 $2,250 $2,430 $2,610 $2,790 $2 970 This general Income lnfonnatlon Is calculated from the U.S. Department of Housing and Urban Development (HUD) Income figures. Specific program requirements may vary. 2018 HUD Method San Olago-Carbbad, CA MSA $ 81,800 U.S. Department of Housing and Urban Development April 1, 2018 Effective Date 40% 45% Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income $27,250 $2,271 $681 $30,700 $2,558 $31,150 $2,596 $779 $35,050 $2,921 $35,050' $2,921 $876 $39,450 $3,288 $38,900 $3,242 $973 $43,800 $3,650 $42,050 $3,504 $1,051 $47,350 $3,946 $45,150 $3,763 $1,129 $50,850 $4,238 $48,250 $4,021 $1,206 $54,350 $4,529 $51 350 $4 279 $1 ,284 $57 850 $4 821 Low Income 70% 80% Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income $47,700 $3,975 $1,192 $54,500 $4,542 $54,500 $4,542 $1,362 $62,300 $5,192 $61,300 $5,108 $1,532 $70,100 $5,842 $68,100 $5,675 $1,702 $77,850 $6,488 $73,550 $6,129 $1,838 $84,100 $7,008 $79,000 $6,583 $1,975 $90,350 $7,529 $84,450 $7,038 $2,111 $96,550 $8,046 $89 900 $7492 $2,247 $102,800 $8 567 Moderate Income 120% 140% Annual Monthly 30.00% Annual Monthly Income Income Monthlv Income Income $68,750 $5,729 $1 ,718 $80,150 $6,679 $78,550 $6,546 $1,963 $91,600 $7,633 $88,350 $7,363 $2,208 $103,050 $8,588 $98,150 $8,179 $2,453 $114,500 $9,542 $106,050 $8,838 $2,651 $123,700 $10,308 $113,900 $9,492 $2,847 $132,850 $11,071 $121,750 $10,146 $3,043 $142,000 $11,833 $129 600 $10 800 $3240 $151 150 $12 596 Prepared by Affordable Housing Services Information, LLC © 2018 Web: www.AHSinfo.com Phone (858) 832-1460 I 30.00% Monthlv $768 $876 $986 $1,095 $1,184 $1,271 $1,359 $1446 30.00% Monthlv $1,362 $1,557 $1 ,752 $1,946 $2,102 $2,258 $2,413 $2570 30.00% Monthlv $2,003 $2,290 $2,576 $2,862 $3,092 $3,321 $3,550 $3 778