Convene 1:326:44 PM

The Housing Authority of the City of Santa Rosa met in regular session at 1:32 p.m. on the 25^th day of October, 2010, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Roll Call

Present:  Acting Chairman Evans, Commissioners Arnone, Harris, Castro-Herrera, and Lemke.  Absent:  Chairman Olsen and Commissioner Gonzalez.  Also in attendance Economic Development and Housing Director David Gouin, Economic Development and Housing Managers Nancy Gornowicz and Carmelita Howard, Program Specialist Kelli Kuykendall, Legal Counsel Mike Casey, and Recording Secretary Susan Canales.

Public Appearances

None

Acknowledgements and Announcements

None

Statements of Abstention

None

Approval of Minutes

 1:35:14 PM

Moved by Commissioner Arnone, seconded by Commissioner Herrera, carried 4-0-2-1 (Commissioner Gonzalez and Chairman Olsen absent; Commissioner Harris abstaining), to approve the Minutes of August 23, 2010, as submitted.  Moved by Commissioner Arnone, seconded by Commissioner Herrera, carried 5-0-2-0 (Commissioner Gonzalez and Chairman Olsen absent), September 27, 2010, as submitted.

Chairman/ Commissioner Reports

None

Committee Reports

None

Consent Items

1:36:02 PM

Item No. 9.1

REQUEST TO EXTEND THE RENTAL TERM OF A DENSITY INCREASE PROGRAM FOR-SALE UNIT – 901 RUSSELL AVENUE #129

The unit located at 901 Russell Avenue #129 is under the Density Increase Program (DIP), targeted to moderate income owner-occupants, with price restrictions upon sale of the home.  The Housing Authority previously approved the rental of the two (2) bedroom home to a low income household (80 percent of median income) until October 31, 2010.  Consistent with Housing Authority policy, the property owner has received administrative approval to extend the rental of their DIP targeted home for three (3) years, which necessitates review by the Housing Authority of the current request to extend the Agreement for Rental of Targeted For-Sale Unit to October 31, 2011.   

Moved by Commissioner Lemke, seconded by Commissioner Herrera, carried 5-0-2-0 (Commissioner Gonzalez and Chairman Olsen absent), to adopt and waive the reading of the text of the resolutions in Item No. 9.1 as follows: 

RESOLUTION NO.  1497  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN EXTENSION OF THE RENTAL OF A DENSITY INCREASE FOR-SALE UNIT LOCATED AT 901 RUSSELL AVENUE #129 TO OCTOBER 31, 2011.

Scheduled Items

1:42:21 PM

Item No. 10.1

REQUEST TO APPROVE BURBANK HOUSING COMMUNTIES CORPORATION, AN AFFILIATE OF BURBANK HOUSING DEVELOPMENT CORPORATION AS THE OWNER AND OPERATOR OF HENDLEY CIRCLE APARTMENTS LOCATED AT 1017 ASTON AVENUE

Kelli Kuykendall made the staff presentation.  Hendley Circle (Project) was developed through a partnership between Community Support Network (CSN) and Burbank Housing Development Corporation (BHDC) in 1992.  Subsequently, a limited partnership was formed to own the property and improvements.  The partnership dissolved in 2008 and CSN intended to acquire the property and improvements and continue operating the Project.  In July 2008, the Housing Authority approved a conditional reservation of funds in the amount of $100,000 to CSN to assist with the refinancing of the Project.  The conditional reservation of funds was contingent on the California Department of Housing and Community Development’s (HCD) approval of the transfer of ownership.  HCD did not approve CSN as the owner and operator of the Project.  Subsequently, in January 2010, the Housing Authority rescinded the $100,000 loan commitment.  At that time, it was conveyed to the Housing Authority that BHDC would seek approval to own and operate the Project.  BHDC is now seeking approval for Burbank Housing Communities (BHCC), an affiliate of BHDC to be the owner and operator on the Project. 

Nick Stewart, Burbank Housing Development Corporation, addressed Mr. Harris’ question regarding profit/nonprofit status.  Mr. Stewart confirmed the nonprofit designation of BHDC. 

Moved by Commissioner Herrera, seconded by Commissioner Arnone, carried 5-0-2-0 (Commissioner Gonzalez and Chairman Olsen absent), to adopt and waive the reading of the text as follows: 

RESOLUTION NO.  1498  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING BURBANK HOUSING COMMUNTIES CORPORATION, AN AFFILIATE OF BURBANK HOUSING DEVELOPMENT CORPORATION AS THE OWNER AND OPERATOR OF HENDLEY CIRCLE APARTMENTS LOCATED AT 1017 ASTON AVENUE.

 Item No 10.2

2:00:36 PM

REQUEST TO APPROVE RELEASE OF HOUSING ALLOCATION PLAN (HAP) CONTRACT FOR WOODBRIDGE SUBDIVISION, ASSOCIATED RESALE AGREEMENT, AND PROMISSORY NOTE TO ACCOMMODATE THE SHORT SALE OF CALIFORNIA HOUSING FINANCE AGENCY (CALHFA) FINANCED UNITS

 Kelli Kuykendall made the staff presentation.  The Woodbridge subdivision, located in northwest Santa Rosa, consists of 149  single family homes, twenty-two (22) of which were originally restricted to first-time, low-income homebuyers (80% of area median income), provided as part of an alternative Housing Allocation Plan (HAP) program approved by Council on June 7, 2005.  From the initial approval of the Woodbridge HAP Contract in June 2005 to October 2008, the developer, Rivendale Homes submitted numerous requests to amend the contract.  The First Amendment, and most significant, required subordination of the Woodbridge HAP Contract to California Housing Finance Agency (CalHFA) financing which, following the Housing Authority’s recommendation, Council approved in exchange for the creation of a Security Fund with monies deposited by the developer to be utilized by the Housing Authority in the event of a default or foreclosure.  To date, three (3) affordable units have been foreclosed upon which has wiped out the Woodbridge HAP Contract, the Resale Agreement, the Deed of Trust securing the Housing Authority’s in-kind loan, and exhausted the balance of the Security Fund.  Presently, two (2) affordable units at risk of foreclosure are pending short sales, one (1) of which has been approved by CalHFA and the other is pending approval.  In order to accommodate pending and future short sales, the Woodbrigde HAP Contract, Resale Agreement, and Promissory Note must be released, requiring consent of the Housing Authority and Council. 

Karen Maxwell, Omega Real Estate agent for the homeowners, spoke in favor of the Housing Authority approving the resolution.  Owner Jose Anguiano also spoke requesting approval of the resolution.    

Chairman Evans expressed concern over the timeliness with which the Housing Authority is able to act on this type of decision (specifically, CALHFA’s limiting of approval for only 30 days) and asks the question whether authority can be delegated to David Gouin, Executive Director of the Housing Authority, under certain circumstances to make these types of decisions on behalf of the Housing Authority.  Chairman Evans would like to explore this as an option.  

Moved by Commissioner Lemke, seconded by Commissioner Harris, carried 5-0-2-0 (Commissioner Gonzalez and Chairman Olsen absent), to adopt and waive the reading of the text as follows: 

RESOLUTION NO.  1499  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA RECOMMENDING THAT THE COUNCIL OF THE CITY OF SANTA ROSA APPROVE THE RELEASE OF THE HOUSING ALLOCATION PLAN (HAP) CONTRACT FOR THE WOODBRIDGE SUBDIVISION, THE ASSOCIATED RESALE AGREEMENT, AND PROMISSORY NOTE TO ACCOMMODATE THE SHORT SALE OF CALIFORNIA HOUSING FINANCE AGENCY (CALHFA) FINANCED UNITS

 Item No 10.3

2:10:36 PM

APPOINTMENT OF NOMINATING COMMITTEE

 Each year the Chairman appoints a Nominating Committee for the purpose of selecting a Chairman and Vice-Chairman for the next calendar year.  This Committee usually consists of two members. 

Chairman Evans appointed himself and Commissioner Arnone as the Nominating Committee.

 Written Communications

2:11:59 PM

 Commissioner Arnone congratulated the Section 8 team on earning a final score of 100% on the Section 8 Management Assessment Program (SEMAP) for fiscal year ending June 30, 2010.  The Housing Authority’s overall designation is High.  Mr. Gouin introduced Carmelita Howard, Housing Manager, and the Section 8 team.

Adjournment

2:16:51 PM

With no other business to come before the Housing Authority, Chairman Evans adjourned the meeting at 2:16 p.m.

_______________________________

Susan Canales, Recording Secretary