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HomeMy WebLinkAbout1996-05-09; Housing Commission; Minutes. Minutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: May 9,1996 Place of Meeting: CITY COUNCIL CHAMBERS CALL TO ORDER: Chairman Calverley called the Regular Meeting to order at 6:OO p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Schlehuber. ROLL CALL: Present: Chairman Calverley, Commissioners Escobedo, Noble, Rose, Sato, Schlehuber, and Wellman Absent: Commissioner Scarpelli Staff Present: Evan Becker, Housing and Redevelopment Director Reggie Harrison, Housing Program Manager Martin Orenyak, Community Development Director COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. APPROVAL OF MINUTES: Commissioner Wellman requested three changes to the Minutes of April 25, 1996 as follows: (1) On page 2, paragraph 3, first sentence, remove the word “unanimous.” (2) On page 2, paragraph 5, next to last paragraph, the sentence should read, “Mr. Ladwig stated that the action...”. (3) On page 4, paragraph 1, the first sentence should state that Don Turner was affiliated with the Bridge Corporation. ACTION: Motion by Commissioner Escobedo, and duly seconded, to approve the Minutes of the Regular Meeting of April 25, 1996, as submitted. Escobedo, Rose, Scarpelli, Schlehuber, Wellman VOTE: 5-0-2 AYES: NOES: None ABSTAIN: Calverley, Noble Commissioner Sat0 arrived at 6:OS p.m. NEW BUSINESS: 1. L4UREL TREE APARTMEN13 - Requa for recommendation of approval of an additional financial commitment to the Laurel Tree Apartnen!s Affordable Housing Project in the amount of $200,000. Evan Becker, Housing and Redevelopment Director, reviewed the background of the request and stated that in December 1995 the Laurel Tree project had applied for a Low-Income Housing Tax Credit allocation from the State Tax Credit Allocation Committee, which was paramount to the project going forward. Althougli Laurel Tree presenteci a strong application, it did not receive the allocation. This was due to the highly competjtive nature of the tax credit program and also significant changes which had been made to the competition criteria. .. HOUSING COMMISSION May 9,1996 Page 2 The MAAC project and City staff have revised the application and are now ready to resubmit. Affordability of the units has been enhanced, which is a major competition criterion. However, this affordability requires an additional cash infusion of $1 million. MAAC obtained commitments of $500,000 from Kaiza Poinsettia Corporation and LennarIBramalea. The Tax Credit investor has agreed to invest an additional $300,000. The City is being asked to contribute an additional $200,000. MAAC is confident that the additional financing will result in a highly competitive application. Mr. Becker explained how the funds have been redistributed to the project and stated that he believes the additional $200,000 from the City is necessary if the Laurel Tree Apartments are to be built. If the tax credits are not achieved this time, it will require a major change to the project in terms of rent levels. The City’s participation continues to be a sound investment based on the high leverage of City funds in producing these 138 affordable units. Staff recommends approval. Chairman Calverley invited the applicant to speak. Sylvia Martinez, 1770 Fourth Avenue, San Diego, representing the MAAC Project, addressed the Commission and stated that the tax credit application is due May 28, 1996. The new affordable rents will be $313 for a 2 bedroom/l bath and $472 for a 4 bedroom/2 bath unit. This represents 30% of a family’s income. Income levels will be from $9,000 to the high $20’~. The affordable units would be denied to persons who exceed these income levels. Commissioner Schlehuber inquired how the developer’s additional contribution of $500,000 is confirmed. Ms. Martinez replied that MAAC currently has letters of credit on file for $2.9 million which would be increased by $500,000. Commissioner Wellman inquired if a person making a minimum wage could afford a unit in Laurel Tree. Ms. Martinez replied that it would depend on the number of dependents. Commissioner Wellman inquired if the units will remain affordable for 55 years. Ms. Martinez replied yes, that this is governed by the IRS because of the tax credits. The City also requires a life of 55 years. Chairman Calverley inquired if single persons can rent a two bedroom unit at Laurel Tree. Ms. Martinez replied yes. Chairman Calverley opened the public testimony and issued the invitation to speak. There being no other persons desiring to address the Commission on this topic, Chairman Calverley declared the public testimony closed and opened the item for discussion among the Commission members. Commissioner Wellman is concerned that the City will be supplying general services to this project and will not be receiving property taxes based on the value of the project. Commissioner Schlehuber would like the resolution reworded stating that the additional $200,000 contributed by the City is contingent upon a $500,000 binding commitment from the developers. ACTION: Motion by Commissioner Noble, and duly seconded, to adopt Housing Commission Resolution No. 96-005, as amended by Commissioner Schlehuber, recommending approval to the City Council of an additional financial commitment to the Laurel Tree Apartments affordable housing project of $200,000 from the City’s Housing Trust Fund, making the City and Redevelopment Agency commitment to the project a total of $700,000. Calverley, Escobedo, Noble, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None HOUSING COMMISSION May 9,1996 Page 3 ABSTAIN: None - HOUSING COMMISSION May 9,1996 Page 4 INFORMATION/DISCUSSION: 2. HOUSING COMMISSION POLICIES AND PROCEDURES - Request by the Housing Commission for resolution approving revisions to the policies and procedures for operations of the Housing Commission. Commissioner Wellman suggested a correction to page two of the resolution, item 19. The second sentence should read, "The tape recordings shall be retained by the Minutes Clerk until such time...". ACTION: Motion by Commissioner Wellman, and duly seconded, to adopt Housing Commission Resolution No. 96-006, as amended, approving revisions to the policies and procedures for the operation of the Housing Commission in regard to the taking of minutes and distribution of a summary of the meeting. Calverley, Escobedo, Noble, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None ABSTAIN: None ANNOUNCEMENTS: Betty Buckner, Minutes Clerk, announced that she will be relocating her family to Portland, Oregon, on August 1,1996. June will be her last meeting. She will be sorry to leave the Commission. ADJOURNMENT: By proper motion, the Regular meeting of May 9, 1996 was adjourned at 650 p.m. Respectfully submitted, EVAN BECKER Housing and Redevelopment Director BETTY BUCKNER Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRllTEN MINUTES ARE APPROVED.