Convene

1:34:55 PM

The Housing Authority of the City of Santa Rosa met in special session at

1:35 p.m. on the 13^th day of June, 2011, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Roll Call

Present:  Vice-Chairman Veronica Castro-Herrera, Commissioners Burke, Gonzales, Harris, and Olsen.  Absent:  Chairman Lemke and Commissioner Arnone .  Also in attendance Economic Development and Housing Director, David Gouin, Deputy Director Cheryl Woodward, Economic Development and Housing Managers Nancy Gornowicz, Carmelita Howard and Danielle O’Leary, Administrative Service Officer Chris Jeffery, Program Specialist Marjorie Jackson , Legal Counsel Molly Dillon, and Recording Secretary Shirley Stevens.

Vice-Chairman Castro-Herrera requested that Commissioner Olsen as past chair, chair this meeting due to not feeling well.  It was unanimously moved.  Acting Chairman Olsen continued the meeting.

Public Appearances

None

Acknowledgements and Announcements

Stephen Burke was welcomed to the Housing Authority as its newest Commissioner. 

Commissioner Charles Evans was presented a Resolution of Appreciation for his 18 years on the Housing Authority and the Redevelopment Agency.  He was thanked by the Board and Staff.

Statements of Abstention1:41:48 PM

Commissioner Burke abstained from the Minutes being new to the Board, and Item 9.7 due to sitting on the Burbank Housing Development Corporation Board.

Approval of Minutes

There was no voting quorum to approve the Minutes of March 28, 2011.  They are carried forward to the next meeting.

Chairman/ Commissioner Reports

Mr. Gouin announced that the Budget & Finance Committee, composed of the Chairs of the Housing Authority and Redevelopment Agency, reviewed the proposed FY 2011/2012 and recommended approval.

Committee Reports

None

Consent Items

1:45:27 PM

Commissioner Harris asked that Item 9.1 be moved separately for questions regarding how the CPI is determined and how long it has been implemented.

Item 9.7 was moved separately due to Commissioner Burke’s abstension.

Moved by Commissioner Harris, seconded by Commissioner Castro-Herrera, carried 5-0-2-0 (Chairman Lemke and Commissioner Arnone absent), to adopt and waive the reading of the text of the resolution in Item No. 9.1 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 2011-2012 are based on the CPI adjustment for the 12 Months Percent Change, Year Ending April 30, 2011, which is 2.8.  Factoring the percentage increase, the proposed fee for an affordable rental unit increases by $3.00, and the proposed fee for a senior rental unit increases by $1.00.  The higher fees would affect new contracts only. 

RESOLUTION NO.  1515  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

Moved by Commissioner Burke, seconded by Commissioner Castro-Herrera, carried 5-0-2-0 (Chairman Lemke and Commissioner Arnone absent), to adopt and waive the reading of the text of the resolution in Item No. 9.2 - 9.6 as follows:

Item No. 9.2

SERVICE AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA AND SANTA ROSA CREEK COMMONS FOR FY 2011/12

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 2011/12.

RESOLUTION NO.  1516  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AND AUTHORIZING EXECUTION OF A SERVICE AGREEMENT FOR FY 2011/12 BETWEEN THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA AND SANTA ROSA CREEK COMMONS

Item No. 9.3

REQUEST TO APPROVE AN EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR HUMBOLDT APARTMENTS LOCATED AT 499 HUMBOLDT STREET AND 670 7^TH STREET

Humboldt Apartments, L.P. (Humboldt) is developing Humboldt Apartments, a 51-unit multifamily rental project.  To date, the Housing Authority has provided the project with $1,122,000 in funds.  Humboldt is requesting an extension of the construction commencement date of June 30, 2011 to December 31, 2011 and an extension of the completion date of June 30, 2012 to March 31, 2013 in order to restructure the financing for the project.

RESOLUTION NO.  1517  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR HUMBOLDT APARTMENTS LOCATED AT 499 HUMBOLDT STREET AND 670 7^TH STREET - LOAN NO. 9020-2015-09

Item No. 9.4

FISCAL YEAR 2011/2012 AGREEMENTS FOR PUBLIC SERVICE PROVIDERS PROGRAM FUNDS

Council directed staff to allocate FY 2011/2012 Community Development Block Grant (CDBG) Public Service funds to non-profit agencies serving the homeless, supplemented with local funds, for a total of $207,460 in funding.  The homeless funding is prioritized for shelter operations and homeless services programs.  

RESOLUTION NO.  1518  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING FISCAL YEAR

2011/2012 AGREEMENTS FOR PUBLIC SERVICE PROVIDERS PROGRAM FUNDS

Item No. 9.5

AGREEMENT WITH DISABILITY SERVICES AND LEGAL CENTER FOR THE ADMINISTRATION OF THE HOUSING ACCESSIBILITY MODIFICATION PROGRAM FOR FISCAL YEAR 2011/2012

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 2011/2012.

RESOLUTION NO.  1519  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 2011/2012

Item No. 9.6

REQUEST TO REVOKE TWENTY-FOUR (24) UNITS PREVIOUSLY ALLOCATED UNDER ARTICLE XXXIV OF THE STATE CONSTITUTION FOR CREEKSIDE VILLAGE SENIOR COMMUNITY, FORMERLY PROPOSED FOR DEVELOPMENT AT 2323 MONTGOMERY DRIVE

On November 22, 2010, the Housing Authority rescinded the remaining funding commitment to Petaluma Ecumenical Properties (PEP Housing) for Creekside Village Senior Community, an affordable senior rental housing project that had been proposed for development at 2323 Montgomery Drive (the Project).  PEP Housing had requested the rescission of the funding commitment due to the expiration of the five-year agreement between PEP Housing and the developer of the adjacent market-rate project.  When the loan commitment for the Project was originally approved by the Housing Authority on July 25, 2005, twenty-four (24) units were allocated under Article XXXIV of the State Constitution.  Now that the Project is no longer in development, it is necessary to revoke the units previously allocated under Article XXXIV.

RESOLUTION NO.  1520  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA REVOKING TWENTY-FOUR (24) UNITS PREVIOUSLY ALLOCATED UNDER ARTICLE XXXIV OF THE STATE CONSTITUTION FOR CREEKSIDE VILLAGE SENIOR COMMUNITY, FORMERLY PROPOSED FOR DEVELOPMENT AT 2323 MONTGOMERY DRIVE

Moved by Commissioner Harris, seconded by Commissioner Castro-Herrera, carried 4-0-2-1 (Chairman Lemke and Commissioner Arnone absent, Commissioner Burke abstained), to adopt and waive the reading of the text of the resolution in Item No. 9.7 as follows:

Item No. 9.7

REQUEST TO APPROVE THE EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES AND APPROVE THE SUBORDINATION OF THE HOUSING AUTHORITY’S LOAN FOR BURBANK HOUSING DEVELOPMENT CORPORATION’S CROSSROADS PROJECT LOCATED AT 1980-2010 BURBANK AVENUE

In August 2005, the Housing Authority approved a funding commitment in the amount of $1,950,000 for predevelopment and mitigation costs for the Burbank Avenue project (known as “Crossroads”), a 5-acre site at 1980-2010 Burbank Avenue, currently in the County of Sonoma and also in the Southwest Redevelopment Project Area.  Mitigation credits cost the project $1.1 million, all of which were paid from Housing Authority funds.  The remaining $850,000 was set aside for predevelopment costs, all of which have been drawn down.  Due to delays concerning annexation of the project area into the City limits, BHDC has been working collaboratively with Housing Authority and County staff to allow Crossroads to move forward as a County project, resulting in a reduction to the total number of units from 90 (89 affordable) to 79, of which 77 will be targeted to households at 30% (24 units), 50% (32 units), 60% (21 units) of area median income (AMI), and two (2) unrestricted manager’s units.  To accommodate delays associated with the entitlement process and the reduction of local and state funding available for project financing, BHDC is requesting to extend the construction commencement date from June 1, 2011 to June 1, 2013 and extend the construction completion date from September 30, 2012 to September 30, 2014.  Additionally, BHDC is requesting the Housing Authority to s ubordinate its existing $850,000 loan to a new loan from the County, in the amount of $1,088,200, which will be used to payoff the existing first mortgage with Exchange Bank, in the amount of $1.4 million, the balance of which will be paid by BHDC.

RESOLUTION NO.  1521  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES AND APPROVING THE SUBORDINATION OF THE HOUSING AUTHORITY’S $850,000 LOAN TO THE COUNTY OF SONOMA’S $1,088,200 LOAN FOR BURBANK HOUSING DEVELOPMENT CORPORATION’S CROSSROADS PROJECT, A 79-UNIT AFFORDABLE RENTAL PROJECT, LOCATED AT 1980-2010 BURBANK AVENUE

 Item No. 10.1

REQUEST FROM BRIDGE HOUSING CORPORATION FOR A REHABILITATION LOAN IN THE AMOUNT OF $225,000 FOR CHELSEA GARDENS APARTMENTS LOCATED AT 1220 MCMINN AVENUE AND 919 DELPORT AVENUE

 Marjorie Jackson made the staff presentation.  Chelsea Gardens Apartments (Chelsea Gardens), completed in 1979 and acquired by Chelsea Gardens Associates, LP an affiliate of BRIDGE Housing Corporation (BRIDGE), in 1999, provides 120 units of rental housing affordable to very low-income (50% of median income) households.  All households receive a rent subsidy through a U.S. Department and Housing and Urban Development (HUD) Project Based Section 8 Housing Assistance Payments contract.  Twenty-six (26) of the units are restricted to seniors.  Over the years, BRIDGE has consistently repaired and maintained the property and fully funded the reserves, but operations have not typically supported major repairs.  With the assistance of a consultant, Marx Okubo Associates, which specializes in the evaluation of the physical condition of existing properties, BRIDGE has developed a prioritized list of repairs that are primarily related to expected life-cycle replacement items and some water intrusion related damage, totaling approximately $940,000.  BRIDGE is requesting a loan in the amount of $225,000 to address Phase I rehabilitation which involves approximately $462,000 of immediate needs repairs, namely repairing and/or replacing roofs and water intrusion-related repairs, such as replacement of siding, deck roofing, and flashing.

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

RESOLUTION NO.  1522  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONALRESERVATION OF FUNDS IN THE AMOUNT $225 TO CHELSEA GARDENS ASSOCIATES, LP FOR COSTS ASSOCIATED WITH THE REHABILITATION OF CHELSEA GARDEN APARTMENTS LOCATED AT 1220 MCMINN AVENUE AND 919 DELPORT AVENUE LOAN NO. 9031-2125-10

Item No. 10.2

FY 2011/12 HOUSING AUTHORITY BUDGET

2:07:19 PM

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 2011/12 of $22,110,929 for the following categories:  $1,068,007 for General Administration; $15,941,687 for Rental Assistance; $4,373,671 for the Santa Rosa Housing Trust; $207,460 for Public Services; and $520,104 for other housing services, housing compliance and federal grant administration.

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

RESOLUTION NO.  1523  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE HOUSING AUTHORITY BUDGET FOR FISCAL YEAR 2011/12

Written Communications

3:10:54 PM

No comments

Adjournment

3:12:13 PM

With no other business to come before the Housing Authority, Acting Chairman Olsen adjourned the meeting at 3:12 p.m.

 Shirley Stevens, Recording Secretary