HOUSING AUTHORITY OF THE CITY OF SANTA ROSA

Council Chamber, City Hall

100 Santa Rosa Avenue, Santa Rosa, California

March 28, 2011

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 FEBRUARY 28, 2011, SPECIAL MEETING MARCH 7, 2011, AND SPECIAL JOINT MEETING WITH REDEVELOPMENT AGENCY MARCH 7, 2011 

7.         CHAIRMAN / COMMISSIONER REPORTS 

8.         COMMITTEE REPORTS 

9.         CONSENT ITEMS: 

9.1      ESTABLISHMENT OF NEW BUDGET FUND 2279 FOR
983 SONOMA AVENUE AND APPROPRIATION OF $41,000 TO THE FUND 

BACKGROUND:  The Housing Authority’s budget is structured through a variety of fund accounts that support related programs and expenses.  The Housing Authority owns 983 Sonoma Avenue, formerly known as the Brookwood Shelter site (Property) and is in the process of leasing the Property to a non-profit organization, Santa Rosa Community Health Centers, which will result in ongoing revenue and expenses.  In order to account for revenue and expenditures and create a replacement reserve for the Property, staff is recommending that the Housing Authority approve the creation of Fund 2279 for the Property. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve the establishment of a new budget fund, Fund 2279, to be used for revenue and expenditures associated with 983 Sonoma Avenue and authorize the transfer of approximately $41,000, plus residuals from Fund 2271 to Fund 2279 and appropriate the $41,000 for use in Fund 2279, Key 340210 for FY 2010/2011.

9.2     REQUEST FROM BURBANK HOUSING DEVELOPMENT CORPORATION TO SUBORDINATE THE HOUSING AUTHORITY LOAN TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S PREDEVELOPMENT LOAN PROGRAM FOR LANTANA PLACE – 2975 DUTTON MEADOW 

BACKGROUND:  The Housing Authority has provided $2,378,703 to Burbank Housing Development Corporation (BHDC) for Lantana Place.  To assist with acquisition of the property, BHDC also obtained a $1,800,000 loan from the Local Initiatives Support Corporation (LISC) for a two year term at 7% interest.  The LISC loan resulted in the Housing Authority’s loan being in second lien position.  BHDC has been awarded $800,000 in Predevelopment Loan Program (PDLP) funds from the California Department of Housing and Community Development (HCD) which will be used, in combination with funds from BHDC, to pay off the LISC loan.  HCD is requiring that the Housing Authority subordinate its loan to the PDLP loan.  As a result of the transaction, the Housing Authority loan will remain in second lien position; however, the PDLP loan has a substantially lower principal amount and more favorable loan terms than the LISC loan.           

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve the subordination of its loan in the amount of $2,378,703 to Burbank Housing Development Corporation for Lantana Place located at 2975 Dutton Meadow to the California Department of Housing and Community Development’s Predevelopment Loan Program loan. 

10.       SCHEDULED ITEMS:  

10.1    REQUEST FROM NORTH BAY HOUSING COALITION, INC. FOR A LOAN IN THE AMOUNT OF $283,000 FOR THE ACQUISITION AND REHABILITATION OF 2425 APPLETREE DRIVE 

BACKGROUND:  In 2001, the Housing Authority approved a loan in the amount of $195,800 to Oaks of Hebron (Oaks) for the purchase of 2425 Appletree Drive for use as a residence for adults with psychiatric disabilities.  Oaks operated the residence until May 2010.  In fall 2010, Oaks informed EDH that they had been in discussions with North Bay Housing Coalition (NBHC) about purchasing the residence and resuming operations as a home for developmentally disabled adults.  NBHC is requesting that the Housing Authority approve a loan in the amount of $283,000 for the acquisition, rehabilitation, and rent-up of the 2425 Appletree Drive. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve a loan in the amount of $283,000 to North Bay Housing Coalition for the acquisition, rehabilitation and rent-up of 2425 Apple Tree Drive. 

10.2     REQUEST FROM BENTALL RESIDENTIAL, L.P. TO BORROW $1,063,378 FROM THE PROCEEDS RECEIVED AS A RESULT OF REPAYMENT OF THE EXISTING HOUSING AUTHORITY LOANS IN THE PRINCIPAL AMOUNTS OF $218,960 AND $175,000, PLUS INTEREST, FOR THE ACQUISITION OF  WINDHAM VILLAGE APARTMENTS, LOCATED AT 1101 PROSPECT AVENUE 

BACKGROUND:  Windham Village Apartments was completed in 1986 and provides fifty (50) units of rental housing affordable to low-income households.  In January 2011, Windham Associates, L.P. entered into a purchase agreement with Bentall Residential, L.P. for the purchase of Windham Village Apartments for $3.8 million with escrow to close by April 30, 2011.  The sale of Windham Village Apartments triggers repayment of the Housing Authority’s loans in the principal amounts of $218,960 and $175,000.  Bentall Residential, L.P. is proposing to acquire and rehabilitate Windham Village Apartments with tax-exempt bonds and four percent (4%) tax credits, ensuring affordability for an additional fifty-five (55) years, and is requesting a loan from the Housing Authority in the amount of $1,063,378 from the proceeds received as a result of repayment of the existing Housing Authority loans in the principal amounts of $218,960 and $175,000, plus interest. 

RECOMMENDATION:  The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve a loan in the amount of $1,063,378 from the proceeds received as a result of repayment of the existing Housing Authority loans in the principal amounts of $218,960 and $175,000, plus interest, to Bentall Residential, L.P. for the acquisition of Windham Village Apartments, located at 1101 Prospect Avenue.           

11.       COMMUNICATION ITEMS

 11.1          Monthly Activities Report 

12.       ADJOURMENT 

The City of Santa Rosa does not discriminate on the basis of disability in the admissions or access to, or treatment of or employment in, its programs or activities.  Disability-related aids or services, including printed information in alternate formats, to enable persons with disabilities to participate in public meetings and programs are available by contacting the Economic Development and Housing Secretary at (707) 543-3300 one week prior to the meeting/program.

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