1:29:59 PM

The Housing Authority of the City of Santa Rosa met in regular session at 1:29 p.m. on the 28th day of March, 2011, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Roll Call

Present: Chairperson Lemke, Commissioners Castro-Herrera, Evans, Olsen, and Gonzalez. Absent: Commissioners Arnone and Harris. Also in attendance Economic Development and Housing Director, David Gouin, Economic Development and Housing Manager Nancy Gornowicz, Program Specialists Megan Basinger and Kelli Kuykendall, Legal Counsel Molly Dillon, and Recording Secretary Shirley Stevens.

Public Appearances

None

Acknowledgements and Announcements

None

Statements of Abstention

None

Approval of Minutes 1:30:59 PM

Moved by Commissioner Olsen, seconded by Commissioner Castro-Herrera, carried 5-0-2-0 (Commissioners Arnone and Harris absent), to approve the Minutes of February 28, Special Joint City Council/Redevelopment Agency March 7, 2011, and Special Joint Housing Authority/Redevelopment Agency March 7, 2011 as submitted.

Chairman/ Commissioner Reports

Commissioner Olsen reported that Authority Commissioners participated in Ethics Training this month.

Committee Reports

None

Consent Items 1:32:45 PM

Moved by Commissioner Evans, seconded by Commissioner Gonzalez, carried 5-0-2-0 (Commissioners Arnone and Harris absent), to adopt and waive the reading of the text of the resolutions in Item Nos. 9.1 and 9.2 as follows:

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

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.

RESOLUTION NO. 1511 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE ESTABLISHMENT OF FUND 2279 AND AUTHORIZING THE TRANSFER AND APPROPRIATION OF APPROXIMATELY $41,000 TO FUND 2279, KEY 340210

REQUEST FROM BURBANK HOUSING

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

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

(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.

RESOLUTION NO. 1512 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE SUBORDINATION OF THE HOUSING AUTHORITY’S $2,378,703 LOAN TO BURBANK HOUSING DEVELOPMENT CORPORATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S PREDEVELOPMENT LOAN PROGRAM FUNDS FOR LANTANA PLACE AT 2975 DUTTON MEADOW, LOAN NOS. 9032-1825-07, 9932-1835-07, AND 9932-2075-10

Item No. 10.1 1:34:10 PM

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

Megan Basinger made the staff presentation. 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.

Moved by Commissioner Castro-Herrera, seconded by Commissioner Evans, carried 5-0-2-0 (Commissioners Arnone and Harris absent), to adopt and waive the reading of the text as follows:

RESOLUTION NO. 1513 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A LOAN IN THE AMOUNT OF $283,000 TO NORTH BAY HOUSING COALITION FOR THE ACQUISITION AND REHABILITATION OF 2425 APPLETREE DRIVE, A RESIDENCE TO BE USED AS PERMANENT SUPPORTIVE HOUSING FOR DEVELOPMENTALLY DISABLED ADULTS, LOAN NOS. 9029-2111-10 AND 9929-2211-10

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

Kelli Kuykendall made the staff presentation. 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.

AND $175,000, PLUS INTEREST, FOR THE ACQUISITION OF WINDHAM VILLAGE APARTMENTS, LOCATED AT 1101 PROSPECT AVENUE

Moved by Commissioner Castro-Herrera, seconded by Commissioner Evans, carried 5-0-2-0 (Commissioners Arnone and Harris absent), to adopt and waive the reading of the text as follows:

RESOLUTION NO. 1514 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING 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, LOAN NO. 9022-2115-10

Written Communications

1:51:53 PM

Commissioner Olsen asked the status of redevelopment. Mr. Gouin replied that there is no news.

Adjournment

1:54:20 PM

With no other business to come before the Housing Authority, Chairperson Lemke adjourned the meeting at 1:54 p.m.

Shirley Stevens, Recording Secretary