HOUSING AUTHORITY OF THE CITY OF SANTA ROSA

Council Chamber, City Hall

100 Santa Rosa Avenue, Santa Rosa, California

September 27, 2010

1:30 p.m.

AGENDA

1.                  CALL TO ORDER

2.         ROLL CALL           

3.         PUBLIC APPEARANCES / PUBLIC COMMENTS:  Except for public hearing agenda items, the public may comment on all other agenda items and on items not on the agenda within the jurisdiction of the Housing Authority during this period.  The public may comment on public hearing agenda items when the hearing is opened.  Each speaker is allowed three minutes.

4.         ACKNOWLEDGMENTS AND ANNOUNCEMENTS 

5.         STATEMENTS OF ABSTENTION 

6.         APPROVAL OF MINUTES FOR MEETING HELD AUGUST 23, 2010 

7.         CHAIRMAN / COMMISSIONER REPORTS 

8.         COMMITTEE REPORTS 

9.         CONSENT ITEMS:  None 

10.       SCHEDULED ITEMS: 

10.1    REQUEST TO TERMINATE THE MEMORANDUM OF OPTION TO PURCHASE WITH THE CITY OF SANTA ROSA AND APPROVE SANTA ROSA COMMUNITY HEALTH CENTERS AS THE TENANT FOR 983 SONOMA AVENUE (BROOKWOOD HOMELESS SHELTER) 

BACKGROUND:  On January 15, 2002 the City of Santa Rosa (City) and the Housing Authority of the City of Santa Rosa (Authority) entered into a Purchase Agreement and Lease Option (Agreement) for the property and improvements located at 983 Sonoma Avenue (Property).  As a result of the City’s fiscal constraints, the shelter was closed at the end of FY 2008/2009.  In August 2009, the Department of Economic Development and Housing (EDH) issued a Request for Proposals for the Re-Use of the Brookwood Homeless Shelter (RFP) at an estimated lease rate of $600 a month.  In January 2010, the Housing Authority selected Disability Services and Legal Center (DSLC) as the tenant for the Property.  Due to unforeseen delays, DSLC did not proceed with leasing the Property.  In spring 2010, the Authority and the City of Santa Rosa verbally agreed to terminate the Memorandum of Option to Purchase (Memorandum) recorded against the Property.  Termination of the Memorandum allows the Authority to remain the sole owner and removes the City’s obligation to purchase the Property.  Catholic Charities, one of the original respondents to the RFP, is proposing a joint venture with Santa Rosa Community Health Centers that would involve relocating the health clinic currently located at the Family Support Center, 465 A Street, to 983 Sonoma Avenue and creating 15 to 20 “respite” beds for homeless individuals that are released from area hospitals and are still in need of limited health care. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority authorizes the Executive Director to do the following: 1) execute the Termination of the Existing Memorandum of Option to Purchase with the City of Santa Rosa; 2) review and negotiate lease terms between the Housing Authority and Santa Rosa Community Health Centers as the tenant for 983 Sonoma Avenue for a ten-year term; and 3) execute the lease. 

 10.2   REQUEST TO APPROVE THE EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR RAILROAD SQUARE AFFORDABLE HOUSING - 2 FOURTH STREET 

BACKGROUND:   John Stewart Company (JSCO)  has requested approval to extend the construction commencement and completion dates for Railroad Square Affordable Housing, a 68-unit affordable rental complex being developed at 2 Fourth Street.  JSCO is requesting to amend the construction commencement date from
October 1, 2010 to July 1, 2012.  The delay is a result of project changes in the overall New Railroad Square mixed-use development plan, including relocation of the affordable housing from the Sonoma-Marin Area Rail Transit (SMART) site to the Canners site.  JSCO is seeking approval from the SMART Board to relocate the affordable housing before proceeding with the development plan.  An extension of the construction commencement date would necessitate an extension of the construction completion date from December 31, 2011 to December 31, 2013.  The construction timeline was included as part of the loan commitment, therefore any request to extend the timeline must be approved by the Housing Authority. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by motion, postpone consideration of the request for an extension of the construction timeline for Railroad Square Affordable Housing, located at 2 Fourth Street, subject to receipt of a new application to the Housing Authority, to be submitted to staff no later than December 1, 2010. 

11.       COMMUNICATION ITEMS 

11.1          Monthly Activities Report 

11.2          Memorandum to Housing Authority Commissioners dated September 15, 2010      re: Subordination of Housing Authority Loan to HUD 202 Financing

 12.              ADJOURMENT 

This information can also be accessed via the internet at: http://www.srcity.org