Convene and Roll Call

1:36:05 PM

The Housing Authority of the City of Santa Rosa met in regular session at 1:34 p.m. on the 22^nd day of August, 2011, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Present:  Chairperson Lemke, Commissioners Arnone, Burke, Castro-Herrera, Gonzales, and Olsen.  Absent:  Commissioner Harris.  Also in attendance Economic Development and Housing Director, David Gouin, Economic Development and Housing Manager Nancy Gornowicz, Program Specialists Marjorie Jackson, Kelli Kuykendall, and Alice Miller, Legal Counsel Molly Dillon, and Recording Secretary Shirley Stevens.

Public Appearances

Naomi Fuchs, CEO, Community Health Centers, re:  Brookwood Site

Chris Paige, CEO, California Human Development Stonehouse Project

Acknowledgements and Announcements

1:43:00 PM

None

Statements of Abstention

1:43:14 PM

Commissioner Arnone abstained from approval of minutes due to absence from both meetings; Commissioner Burke abstained from the minutes of March 28 as he had not yet been appointed to the Housing Authority and from Items 9.2 and 10.2 due to having served on the Burbank Housing Development Corporation Board.

Approval of Minutes

Chairperson Lemke asked for the minutes to be approved separately. 

Moved by Commissioner Olsen, seconded by Commissioner Castro-Herrera, carried 4-0-1-2 (Commissioner Harris absent, Commissioners Arnone and Burke abstained), to approve the Minutes of March 28, 2011.

Moved by Commissioner Olsen, seconded by Commissioner Gonzalez, carried 5-0-1-1 (Commissioner Harris absent, Commissioner Arnone abstained), to approve the Minutes of June 13, 2011 as submitted.

Chairman/ Commissioner Reports

None

Committee Reports

None

Moved by Commissioner Burke, seconded by Commissioner Castro-Herrera, carried 6-0-1-0 (Commissioner Harris absent), to adopt and waive the reading of the text of the resolution in Item No. 9.1 as follows:

Item 9.1

REQUEST: CALIF. HUMAN DEVELOPMNT: FURTHER ADVANCE: AMOUNT OF $27,151: REHABILITATION OF PROPERTY:  3555 SONOMA HWY (STONEHOUSE INN) 1:46:55 PM

In September 2010, California Human Development (CHD) acquired the property located at 3555 Sonoma Highway, known as the Stonehouse Inn, for $1 million with a first mortgage in the amount of $800,000 ($585,765 for acquisition plus $204,235 for construction) from Clearinghouse Community Development Financial Institution (CDFI), a $200,000 loan from the Housing Authority, donor contributions in the amount of $140,000, and approximately $72,000 of its own funds.  Once rehabilitation of the property is complete, CHD plans to relocate its existing Athena House program, a 27-bed residential drug and/or alcohol treatment program and a six-bed sober living house for women, which currently operates in four (4) separate locations.  The Stonehouse property will allow CHD to consolidate its Athena House program into one facility and serve additional clients by providing up to forty (40) beds. CHD recently received City approval of their improvement plans, which, as a result of additional improvements required by the City, has increased the project costs.  CHD has identified a budget gap of approximately $75,000 to complete the rehabilitation of the project and is requesting additional funding from the Housing Authority to help fill that gap.  On August 2, 2011, Council approved the transfer of approximately $27,151 in residual mortgage revenue bond funds, which can be used for affordable housing purposes. The Stonehouse project was identified as a possible recipient of the bond funds.

RESOLUTION NO.  1524  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A FURTHER ADVANCE IN THE AMOUNT OF $27,151 TO ASSIST CALIFORNIA HUMAN DEVELOPMENT WITH THE REHABILITATION OF 3555 SONOMA HIGHWAY (STONEHOUSE INN) FOR USE AS A RESIDENTIAL DRUG AND/OR ALCOHOL TREATMENT PROGRAM FOR WOMEN; LOAN NO. 9924-2135-11

Moved by Commissioner Arnone, seconded by Commissioner Gonzalez, carried 5-0-1-1 (Commissioner Harris absent, Commissioner Burke abstain), to adopt and waive the reading of the text of the resolutions in Item No. 9.2 as follows:

Item No. 9.2

REQUEST TO APPROVE AN EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR CATALINA TOWNHOMES LOCATED AT 2740 DUTTON MEADOW

In July 2007, the Housing Authority approved a land acquisition and predevelopment loan for Dutton Village, which consists of Amorosa Village I – 97 multifamily rental units, Amorosa Village II – 53 multifamily rental units, and Catalina Homes – 60 self-help ownership units (Project), the subject of this request.  To assist with the Project, the Housing Authority received a $5,000,000 loan from California Housing Finance Agency’s (CalHFA) Residential Development Loan Program (RDLP); the funds were then lent to Burbank Housing Development Corporation (BHDC) for the Project.  As a result of the current housing market and the need to pursue additional funding sources for the Project, BHDC is requesting an extension of the construction commencement and completion dates.

RESOLUTION NO.  1525  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR CATALINA TOWNHOMES LOCATED AT 2740 DUTTON MEADOW - LOAN NO. 9930-1895-08

Item No. 10.1

REQUEST FROM YWCA TO EXTEND THE TERM OF THE HOUSING AUTHORITY LOAN (8030-6225-90) TO SEPTEMBER 4, 2016

1:53:12 PM

Young Women’s Christian Association of Sonoma County (YWCA) requests approval to extend the term of its loan in the principal amount of $35,000 and $21,000 in accrued interest for its property which serves as a shelter for victims of abuse.  In October 1991, the Housing Authority provided YWCA with a loan in the amount of $35,000 for construction of a 600 square foot office addition to its existing facility.  The terms of the loan are three percent (3%) simple interest deferred and due in full on September 4, 2011.  YWCA is not currently in a position to repay the balance due and is requesting a five-year extension of the term from September 4, 2011 to September 4, 2016, with the proviso that the 3% interest owed on the $35,000 ($1,050) would be paid annually during that period.

Moved by Commissioner Arnone, seconded by Commissioner Castro-Herrera, carried 6-0-1-0 (Commissioner Harris absent), to adopt and waive the reading of the text as follows:

RESOLUTION NO.  1526  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE MODIFICATION OF THE TERMS OF A LOAN IN THE PRINCIPAL AMOUNT OF $35,000 FOR YWCA PROPERTY AS DESCRIBED IN LOAN NO. 8030-6225-90

Item  No. 10.2

AFFORDABLE HOUSING LOAN APPLICATIONS – HUMBOLDT APARTMENTS (499 HUMBOLDT STREET); NEW RAILROAD SQUARE AFFORDABLE HOUSING-CANNERS APARTMENTS (3 WEST THIRD STREET); AND TIERRA SPRINGS APARTMENTS (766 KAWANA SPRINGS ROAD)

1:57:20 PM

The Housing Authority has previously committed funds to assist four affordable housing projects that are currently in various stages of predevelopment:

·      Humboldt Apartments

·     New Railroad Square Affordable Housing

·     Tierra Springs Apartments (formerly Kawana Springs Family Apartments)

·     Lantana Place

Three of the projects (Humboldt Apartments, Tierra Springs, and Lantana Place) have received City entitlements.  All four projects need additional funding commitments in order to proceed with development and begin construction.  Of the four projects listed above, three Affordable Housing Loan Applications have been received:

·     Humboldt Apartments

·     New Railroad Square Affordable Housing (now known as     Canners Apartments)

·     Tierra Springs Apartments

Humboldt Apartments and Tierra Springs are entitled and ready to proceed if their funding requests are approved.  New Railroad Square Affordable Housing is a catalyst for Phase 1 of an overall mixed-use development; however more time is needed to attain all the necessary financing and entitlements in order to proceed.  Sufficient funds are not available to fund all three projects at this time.

Carol Dean, 332 Decker St, West End Neighborhood, opposed to funding New Railroad Square Affordable Housing; too many changes to original proposal.

Allen Thomas, 306 Boyce St, West End Neighborhood, also opposed to New Railroad Square project; has changed many times promised 68 units of affordable housing, now project has changed for whatever reason..

Marc Slutzkin, John Stewart Co.: had planned to have 68 units with public market below.  Due to market changes and liability issues of public market, looked at other options.  Club One expressed interest.  Competitive market for 9% credits caused unit change to all ages rather than senior and 4% credits.

Moved by Commissioner Olsen, seconded by Commissioner Arnone carried 5-0-1-1 (Commissioner Harris absent, Commissioner Burke abstain), to adopt and waive the reading of the text as follows:

RESOLUTION NO.  1527   ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A FURTHER ADVANCE IN THE AMOUNT OF $1,999,400 TO HUMBOLDT APARTMENTS, L.P. FOR PREDEVELOPMENT AND DEVELOPMENT COSTS ASSOCIATED WITH 499 HUMBLODT STREET (APN 009-025-017L LOAN NO. 9920-2145-11)

Written Communications

No comments

Adjournment

3:12:15 PM

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

_______________________________

Shirley Stevens , Recording Secretary