Convene

1:32:34 PM

The Housing Authority of the City of Santa Rosa met in regular session at 1:32 p.m. on the 14^th day of June, 2010, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Roll Call

Present:  Chairman Olsen, Commissioners Herrera, Ours, Arnone, and Lemke.  Absent:  Commissioner Evans.  Also in attendance Economic Development and Housing Director, David Gouin, Deputy Director Cheryl Woodward, Economic Development and Housing Managers Nancy Gornowicz, Carmelita Howard, Jocelyn Lundgren, and Danielle O’Leary, Administrative Services Officer Christine McNamara, Program Specialist Megan Basinger, Kelli Kuykendall, and Marjorie Jackson, Legal Counsel Molly Dillon, and Recording Secretary Shirley Stevens.

Public

Appearances

1:32:39 PM

Duane DeWitt, Roseland area, said he would be speaking regarding Items 9.4, 9.5, and 9.7 on the Consent calendar.

Acknowledgements

and

Announcements

None

Statements of

Abstention

None

Approval of

Minutes

1:37:07 PM

Moved by Commissioner Arnone, seconded by Commissioner Ours, carried 5-0-1-0 (Commissioner Evans absent), to approve the Minutes of April 26, 2010 as submitted.

Chairman/

Commissioner

Reports

None

Committee

Reports

None

Consent Items

Duane DeWitt, Roseland area, made comments on the following Item Nos.: 9.4:  The extension period should be for one year with community discussion; 9.5: The oversight is too loose on non-profit developer, doesn’t have full services in the area;  9.7:  Too many affordable housing clusters in Southwest area.   

Commissioners responded that the map of affordable housing developments in Santa Rosa has been included in the agenda binder in the recent past.  In the four quadrants it reflects that affordable housing has been evenly distributed by the Housing Authority as much as possible.  There is activity in the Southwest now because there is money available.  Historically, affordable housing has been provided in all areas of Santa Rosa. 

Moved by Commissioner Arnone, seconded by Commissioner Ours, carried 5-0-1-0 (Commissioner Evans absent), to adopt and waive the reading of the text of the resolutions in Item Nos. 9.1 through 9.7 as follows:

Item No. 9.1

DENSITY

INCREASE

PROGRAM COMPLIANCE MONITORING

FEE

ADJUSTMENT

On June 22, 1999, the City Council delegated monitoring responsibilities and authority to approve annual compliance fee increases based on the Consumer Price Index (CPI) for the Density Increase Program (DIP) to the Housing Authority of the City of Santa Rosa.  The proposed annual increases for FY 2010-2011 are based on the CPI adjustment for the 12 Months Percent Change, Year Ending April 30, 2010, which is 1.7.  Factoring the percentage increase, the proposed fee for an affordable rental unit increases by $2.00, and the proposed fee for a senior rental unit increases by $1.00.  The higher fees would affect new contracts only.  

RESOLUTION NO.  1479   ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A DENSITY INCREASE PROGRAM (DIP) ANNUAL COMPLIANCE MONITORING FEE ADJUSTMENT FOR AFFORDABLE AND SENIOR RENTAL UNITS

Item No. 9.2

SERVICE

AGREEMENT

BETWEEN THE HOUSING

AUTHORITY AND

SANTA ROSA

CREEK COMMONS FOR FY 2010/11

Since 1981, the Housing Authority has acted as a monitor and technical advisor to Santa Rosa Creek Commons, a 27-unit cooperative housing project located at 887 Sonoma Avenue, which provides 10 units of low income housing, including three units for very low income households.  Renewal of the Service Agreement between the Housing Authority of the City of Santa Rosa and Santa Rosa Creek Commons is proposed for FY 2010/11.

RESOLUTION NO.  1480   ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AND AUTHORIZING EXECUTION OF A SERVICE AGREEMENT FOR FY 2010/11 BETWEEN THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA AND SANTA ROSA CREEK COMMONS

Item No. 9.3

AGREEMENT

WITH

DISABILITY

SERVICES AND

LEGAL

CENTER

ADMINIISTRATION

OF HOUSING ACCESSIBILITY MODIFICATION PROGRAM FOR FISCAL YEAR 2010/2011

Disability Services and Legal Center (DSLC), formerly known as Community Resources for Independence (CRI) is requesting that the Housing Authority enter into an agreement for the administration of the Housing Accessibility Modification (HAM) program for FY 2010/2011. 

RESOLUTION NO.  1481  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN AGREEMENT WITH DISABILITY SERVICES AND LEGAL CENTER FOR THE ADMINISTRATION OF THE HOUSING ACCESSIBILITY MODIFICATION PROGRAM FOR FISCAL YEAR 2010/11 

Item No. 9.4

REQUEST TO

APPROVE AN EXTENSION TO

THE OPTION TO PURCHASE

PROVISION

OF THE

SECURITY

AGREEMENT

AND THE

PROMISSORY

NOTE FOR THE CROSSROADS PROJECT

LOCATED AT

1980‑2010

BURBANK

 AVENUE

On December 14, 2009, the Housing Authority approved the sale of 1.4 of the 4.4 surplus mitigation credits from Burbank Housing Development Corporation’s (BHDC) Crossroads project to Dutton Village (Amorosa Village I & II and Catalina Homes), resulting in a surplus of three (3) credits.  A provision in the Promissory Note and a recorded Security Agreement between the Housing Authority and BHDC allowed this option to be exercised.  BHDC requests approval for a four-year extension of the twelve-month option to purchase provision, which expires on June 22, 2010, provided for under the Security Agreement and the Promissory Note.  The Housing Authority will have the option to purchase the credits or assign them to a designated nominee within the first two (2) years of the four-year extension.  At the conclusion of this first two-year period, BHDC will have two (2) years to identify another affordable housing project within the City of Santa Rosa that the credits may be used for or repay the Housing Authority for the unused credits.

RESOLUTION NO.  1482  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A FOUR-YEAR EXTENSION TO THE OPTION TO PURCHASE PROVISION OF THE SECURITY AGREEMENT AND THE PROMISSORY NOTE FOR THE CROSSROADS PROJECT LOCATED AT 1980-2010 BURBANK AVENUE, LOAN NO. 9031-1475-05

Item No. 9.5

REQUEST TO

APPROVE THE EXTENSION

OF THE CONSTRUCTION COMMENCEMENT

AND

COMPLETION

DATES FOR

LATANA PLACE LOCATED

AT 2975 DUTTON MEADOW

Burbank Housing Development Corporation (BHDC) requests approval to extend the construction commencement and completion dates for Lantana Place, a 100-unit, multifamily rental project being developed at 2975 Dutton Meadow.  BHDC is requesting to amend the construction commencement date from June 30, 2010 to June 30, 2011.  The delay is a result of the suspension of the California Department of Housing and Community Development’s Multifamily Housing Program (MHP), which provides permanent financing to multifamily developments; the strained tax credit market; and the Housing Authority’s limited funds.  The extension of the construction commencement date necessitates an extension of the construction completion date from August 31, 2011 to August 31, 2012.

RESOLUTION NO. 1483  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR LANTANA PLACE LOCATED AT 2975 DUTTON MEADOW - LOAN NOS. 9032-1825-07 AND 9932-1835-07

Item No. 9.6

FISCAL YEAR 2010/2011 AGREEMENTS

FOR PUBLIC

SERVICE

PROVIDERS PROGRAM

FUNDS

Council directed staff to allocate FY 2010/2011 Community Development Block Grant (CDBG) Public Service funds to non-profit agencies serving the homeless, supplemented with local funds, for a total of $236,258 in funding.  The homeless funding is prioritized for shelter operations and homeless services programs. 

RESOLUTION NO.  1484   ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING FISCAL YEAR 2010/2011 AGREEMENTS FOR PUBLIC SERVICE PROVIDERS PROGRAM FUNDS

Item No. 9.7

REVIEW THE

CITYOF SANTA

ROSA’S

PARTICIPATION

IN THE

CATALINA

HOMES SELF

HELP,

OWNERSHIP

UNITS THROUGH

the

California Department

of Housing

and

Community Development’s Building Equity

and Growth in Neighborhoods GRANT

PROGRAM

In March 2008, the Housing Authority reviewed and provided a recommendation to the City Council for the submittal of a Building Equity and Growth in Neighborhoods (BEGIN) program to the California Department of Housing and Community Development’s (HCD) for Burbank Housing Development Corporation (BHDC) 60-unit, self-help, ownership project known as Catalina Homes at 2740 Dutton Meadow.  The BEGIN program provides funding to local public agencies (cities and counties) for low- and moderate-income first-time homebuyer downpayment assistance.  Following the review by the Housing Authority, the BEGIN program was suspended due to the state budget crisis.  HCD recently issued a new BEGIN Notice of Funding Availability and BHDC would like the City of Santa Rosa to submit an application for $3,804,000, $63,400 per unit, for the Catalina Homes self‑help project. 

RESOLUTION NO.  1485  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA RECOMMENDING THAT THE COUNCIL APPROVE THE SUBMITTAL OF GRANT APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S BUILDING EQUITY AND GROWTH IN NEIGHBORHOODS IN THE AMOUNT OF $3,828,000 FOR CATALINA HOMES, SELF-HELP OWNERSHIP UNITS

Item No. 10.1

REQUEST TO

REDUCE THE

INTEREST RATE

ON PETALUMA ECUMENICAL PROPERTIES’

ACACIA LANE

LOAN IN THE

AMOUNT OF

$2,241,722

FROM

3% TO 1%

1:54:39 PM

Megan Basinger made the staff presentation.  Petaluma Ecumenical Properties (PEP) is developing an affordable, senior, rental complex at 657 Acacia Lane (formerly addressed as 4711 Sonoma Highway) in northeast Santa Rosa known as Acacia Lane Apartments (Project).  The complex will consist of 44 units, 43 of which are targeted to households at 30% and 50% of area median income and one unrestricted manager’s unit.  To date, the Housing Authority has provided a loan in the total amount of $2,241,722 at 3% interest for a term of 45 years.  PEP is requesting that the Housing Authority reduce the interest rate from 3% to 1% in order to improve the Project’s projected capital account.  The HUD 202 funding, which will provide $5,792,700 in the form of a forgivable capital advance includes rental assistance to 37 of the 43 assisted units.  The rental assistance that is provided directly by HUD limits the Project’s ability to generate cash flow that is available to make payments towards the Housing Authority’s deferred loan and accruing interest.  As a result of the limited cash flow available to the Project, the pro forma analysis projects that the capital account (the difference between the amount of equity invested in the project and the amount of tax losses the tax credit investor can claim) will go negative prior to the completion of the 11 year tax credit period, which prevents the investor from claiming its annual tax credits and may result in financial penalties for the Project sponsor.  By reducing the interest rate, the financial models for the Project identify the capital account will go negative in year 16 instead of year 10, which will attract a tax credit investor to the Project, will allow the investor to claim all of the tax credits once the Project is completed and in operation, and provides financial stability to the Project.  

Moved by Commissioner Lemke, seconded by Commissioner Herrera, carried 5-0-1-0 (Commissioner Evans absent), to adopt and waive the reading of the text as follows: 

RESOLUTION NO.  1486  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A REDUCTION TO THE INTEREST RATE ON PETALUMA ECUMENICAL PROPERTIES’ LOAN IN THE AMOUNT OF $2,241,722 FROM 3% TO 1% FOR ACACIA LANE APARTMENTS LOCATED AT 657 ACACIA LANE (FORMERLY ADDRESSED AS 4711 SONOMA HIGHWAY)

Item No. 10.2

REQUEST FROM COMMUNITY

SUPPORT

NETWORK TO

EXTEND THE

TERMS

OF THE

HOUSING

AUTHORITY

LOANS IN THE PRINCIPAL

AMOUNTS OF

$70,800 AND

$38,200 FOR 634 PRESSLEY

STREET

2:00:09 PM

Kelli Kuykendall made the staff presentation.  Community Support Network (CSN) requests approval to extend the terms of two (2) loans in the principal amounts of $70,800 and $38,200 for the property located at 634 Pressley Street (Opportunity House), a ten-bed homeless shelter which has served mentally ill adults since 1986.  In July 1986, the Housing Authority provided CSN with a loan in the amount of $70,800 for the acquisition and rehabilitation of Opportunity House.  In July 1990, the Housing Authority made an additional loan in the amount of $38,200.  The terms of the loans are three percent (3%) simple interest and due on July 31, 2010.  In addition to financing provided by the Housing Authority, the project was funded by a State of California Department of Housing and Community Development (HCD) Emergency Shelter Program grant in the amount of $52,129 and a Sonoma County Community Development Commission (CDC) loan in the amount of $50,000, both of which have been forgiven.  Opportunity House operates through an annual funding contract with the Sonoma County Mental Health Division, as confirmed by financial statements for the project and the agency.  Therefore, CSN is not currently in a position to repay the Housing Authority loans and is requesting a fifteen-year extension of the loan terms from July 31, 2010 to July 31, 2025.

Moved by Commissioner Herrera, seconded by Commissioner Ours, carried 5-0-1-0 (Commissioner Evans absent), to adopt and waive the reading of the text as follows:

RESOLUTION NO.  1487  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE EXTENSION OF THE TERMS OF TWO (2) LOANS IN THE PRINCIPAL AMOUNTS OF $70,800 AND $38,200 FOR COMMUNITY SUPPORT NETWORK’S PROPERTY LOCTED AT 634 PRESSLEY STREET, LOAN NOS. 9014-0124-86 AND 9014-5674-90

Item No. 10.3

FY 2010/11

HOUSING

AUTHORITY

BUDGET – REDEVELOPMENT AGENCY BUDGET

FOR FY 2010/2011 –  HOUSING

AUTHORITY

JOINED BY REDEVELOPMENT AGENCY IN

JOINT SESSION

FOR THIS ITEM ONLY

2:05:45 PM

Christine McNamara made the staff presentation.  The Executive Director is charged with the responsibility of annually submitting for approval an estimate of expenditures, revenue, and transfers for all Housing Authority programs which then become the formal budget for the Housing Authority for the next fiscal year.

Staff has prepared a preliminary budget estimate for Fiscal Year 2010/11 of $21,758,419 for the following categories:  $1,034,456 for General Administration; $15,195,941 for Rental Assistance; $4,712,468 for the Santa Rosa Housing Trust;  $236,258 for Public Services, and $579,296 for other housing services, housing compliance and federal grant administration.

Moved by Commissioner Arnone, seconded by Commissioner Herrera, carried

5-0-1-0 (Commissioner Evans absent), to adopt and waive the reading of the text as follows:

RESOLUTION NO.  1488  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE HOUSING AUTHORITY BUDGET FOR FISCAL YEAR 2010/11

Written

Communications

No comments

Adjournment

3:20:40 PM

With no other business to come before the Housing Authority, Chairman Olsen adjourned the meeting at 3:20 p.m.

_______________________________

Shirley Stevens, Recording Secretary