HOUSING AUTHORITY OF THE CITY OF SANTA ROSA
Council Chamber, City Hall
100 Santa Rosa Avenue, Santa Rosa, California
DECEMBER 12, 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 MEETINGS HELD AUGUST 22, AUGUST 29, AND SEPTEMBER 26, 2011
7. CHAIRMAN / COMMISSIONER REPORTS
8. COMMITTEE REPORTS
9. CONSENT ITEMS:
9.1 REQUEST TO APPROVE AN EXTENSION OF THE CONSTRUCTION COMMENCEMENT AND COMPLETION DATES FOR HUMBOLDT APARTMENTS LOCATED AT 499 HUMBOLDT STREET AND 670 7th STREET
BACKGROUND: Burbank Housing Development Corporation (BHDC) and North Bay Equities (NBE) are developing Humboldt Apartments (Project) a 52-unit, multifamily rental project, which is owned by Humboldt Apartments, L.P. To date, the Housing Authority has committed $3,121,400 in funds to the Project. BHDC and NBE are requesting an extension of the construction commencement date from December 31, 2011 to June 30, 2012 and an extension of the completion date from March 31, 2013 to April 30, 2013 in order to accommodate application and funding timelines with the State of California Department of Housing and Community Development’s (HCD) Multifamily Housing Program (MHP) and the California Tax Credit Allocation Committee (TCAC) and the California Debt Limit Allocation Committee (CDLAC), which has delayed the Project’s timeline.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve the extension of the construction commencement date for Humboldt Apartments located at 499 Humboldt Street and 670 7th Street, from December 31, 2011 to June 30, 2012 and approve the extension of the construction completion date from March 31, 2013 to April 30, 2013.
9.2 REQUEST TO APPROVE AN EXTENSION OF THE OCCUPANCY COMPLETION DATE FOR MCMINN AVENUE SHARED HOUSING, AN EXISTING FOUR-PLEX APARTMENT BUILDING LOCATED AT 1228 MCMINN AVENUE
BACKGROUND: On July 29, 2010, the Housing Authority approved a conditional reservation of funds in the amount of $430,191 to Community Housing Sonoma County (CHSC) for the acquisition and development of 1228 McMinn Avenue, an existing apartment building with four (4) two-bedroom units, located in the City’s Neighborhood Revitalization Program (NRP) “Sunset-Delport” target area. CHSC acquired the property, known as McMinn Avenue Shared Housing, in January 2011. CHSC, in collaboration with Sonoma County Mental Health Division (SCMHD), plans to develop the first Mental Health Services Act (MHSA) shared housing project in Sonoma County. CHSC will rehabilitate the property for use as permanent supportive housing for eight (8) MHSA target population adults who are homeless or at risk of homelessness and have a psychiatric disability. CHSC will serve as the project sponsor and developer, and will own the property in perpetuity. SCMHD will be the lead service provider in meeting anticipated MHSA outcomes by assisting residents to succeed in their wellness, allowing for re-integration into the community, reduced hospitalizations, reduced incarcerations, and increased employment. CHSC is requesting an extension to the occupancy completion date to accommodate delays associated with additional work required to complete the rehabilitation scope of work.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve the extension of the occupancy completion date from January 2012 to June 30, 2012 for McMinn Avenue Shared Housing located at 1228 McMinn Avenue.
9.3 REQUEST TO APPROVE THE EXTENSION OF THE REHABILITATION COMPLETION DATE FOR HENRY HOUSE LOCATED AT 1822 MANOR DRIVE
BACKGROUND: In 1997, Face to Face Sonoma County AIDS Network (Face to Face) purchased and rehabilitated Henry House, a six-bed group home which serves persons living with HIV/AIDS, with a loan in the amount of $417,000 from the U.S. Department of Housing and Urban Development (HUD) Section 811 Supportive Housing for Persons with Disabilities program and a loan in the amount of $43,733 from the Housing Authority. In 2001, the Housing Authority provided a further advance in the amount of $42,500 for water and sewer improvements, bringing the Housing Authority’s assistance to the property to $86,233. The level of care provided by Henry House is no longer necessary as a result of medical advances, which have enabled persons living with HIV/AIDS to live more independently. Consequently, Face to Face would like to transfer the property to another non-profit sponsor to continue operating Henry House for persons with disabilities which required approval of the Housing Authority and HUD. Community Housing Sonoma County (CHSC) worked with Face to Face to secure the Housing Authority’s and HUD’s approval. On November 23, 2009, the Housing Authority approved a conditional reservation of funds in the amount of $151,500 to assist CHSC for costs associated with the transfer of ownership and rehabilitation of Henry House. The resolution which approved the conditional reservation of funds required rehabilitation to be completed by November 30, 2010 which was later extended by the Housing Authority to November 30, 2011. Due to delays with HUD’s review of proposed transfer, which has been approved, CHSC is requesting the Housing Authority’s approval to extend the rehabilitation completion date from November 30, 2011 to July 30, 2011.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve the extension of the rehabilitation completion date from November 30, 2011 to July 30, 2012 for Henry House located at 1822 Manor Drive.
9.4 REQUEST TO EXTEND THE TEMPORARY RENTAL TERM OF A DENSITY INCREASE PROGRAM OWNER-OCCUPANCY RESTRICTED UNIT -
901 RUSSELL AVENUE, #129
BACKGROUND: The unit located at 901 Russell Avenue, #129, is a restricted unit under the Falconwood Subdivision Density Increase Program Agreement (DIP Agreement), targeted to Moderate Income owner-occupants, with price restrictions upon sale of the home. The Housing Authority has previously approved requests from the owner to temporarily rent the two-bedroom home to a qualified Low Income Household at an affordable rent. The current temporary rental term expired October 31, 2011. The Owner does not wish to sell the home at this time due to the current state of the real estate market and has requested approval to continue renting the home at an affordable rent to a qualified Low Income Household for an additional year. The alternative would be to require the Owner to market the home for a period of 90 days, as required by the DIP Agreement. If the home does not sell within the 90-day marketing period, the DIP Agreement would be released, including the resale price and owner-occupancy restrictions, resulting in the loss of an affordable unit.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve a one-year extension, from October 31, 2011 to October 31, 2012, of the temporary rental term of the Density Increase Program Owner-Occupancy Restricted Unit located at 901 Russell Avenue, #129, and authorize the Executive Director to execute an Agreement for Temporary Rental of Owner-Occupancy Restricted Unit.
10. SCHEDULED ITEMS:
10.1 REQUEST FROM HABITAT FOR HUMANITY OF SONOMA COUNTY FOR A LOAN IN THE AMOUNT OF $280,000 TO REHABILITATE FORECLOSED PROPERTIES FOR SALE TO LOW-INCOME HOUSEHOLDSBACKGROUND: Habitat for Humanity of Sonoma County’s (Habitat) proposal, known as the Neighborhood Improvement Program (Program), involves the acquisition of approximately ten (10) foreclosed homes in Santa Rosa to be rehabilitated and sold to eligible, low-income households. The Program is modeled after Habitat’s existing rehabilitation and new construction program guidelines and policies which include an established process for identifying properties and selecting families. Upon selection of a property and an eligible homebuyer family, Habitat will acquire the property utilizing an equity line of credit from a local consortium of banks; rehabilitation of the property will be completed through the participation of the selected homebuyer family, donations of volunteer labor and materials, and paid contractors; and upon completion of the rehabilitation, a local bank will provide a first mortgage to the homebuyer. If approved, Housing Authority funds will be utilized to rehabilitate approximately ten (10) homes at a cost of approximately $28,000 per home with a minimum loan amount of $10,000 and a maximum loan amount of $40,000.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority, by resolution, approve a loan in the amount of $280,000 to Habitat for Humanity of Sonoma County for the rehabilitation of foreclosed properties for sale to low-income households.
10.2 ADMINISTRATIVE COST SAVINGSBACKGROUND: On January 24, 2011, the Housing Authority and the Redevelopment Agency held a Joint Study Session regarding the Proposed Budget Priorities for Fiscal Year 2011-2012. Discussion included the potential to provide future cost savings to the Housing Authority's budget by streamlining the administrative review process of certain items traditionally brought forward to the Housing Authority for consideration and action, such as Consent Items. If administrative costs are reduced, more resources would be available for program purposes.
RECOMMENDATION: The Department of Economic Development and Housing recommends that the Housing Authority achieve administrative cost savings by approving, by resolution, the following:
(1) Delegation of approval authority to the Executive Director or designee for consideration and action on the items listed on Exhibit A, subject to and consistent with the criteria set forth for each item; and
(2) Update of the Housing Authority's Policy Statement of Temporary Rental of an Owner-Occupancy Restricted Unit, including the following revision:
Elimination of the three year time limit on delegation of authority to the Executive Director or designee, instead providing delegation of approval authority to the Executive Director or designee to consider and act upon requests consistent with the applicable recorded subdivision covenants.
10.3 ELECTION OF OFFICERS
BACKGROUND: Each year at its annual meeting, the Housing Authority elects a Chair and Vice-Chair to preside for the next calendar year, commencing January 1.
RECOMMENDATION: The Department of Economic and Housing recommends that the Housing Authority, by motion, elect a Chair and Vice-Chair to preside for the next calendar year with the term of office commencing on January 1, 2012.
11. COMMUNICATION ITEMS:
11.1 MONTHLY ACTIVITIES REPORT
11.2 HOUSING AUTHORITY ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011
12. ADJOURMENT
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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. |
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