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