Convene 1:34:17 PM

The Housing Authority of the City of Santa Rosa met in regular session at 1:34 p.m. on the 12^th day of December, 2011, in the Council Chamber, City Hall, 100 Santa Rosa Avenue, Santa Rosa, California

Roll Call

Present:  Chairman Lemke, Commissioners Castro-Herrera, Arnone, Olsen, Gonzalez, Harris, and Burke.  Absent:  None.  Also in attendance Economic Development and Housing Director, David Gouin, Economic Development and Housing Manager Nancy Gornowicz and Carmelita Howard, Program Specialists Kelli Kuykendall and Marjorie Jackson, Legal Counsel Michael Casey, and Recording Secretary Shirley Stevens.

Public Appearances

None

Acknowledgements and Announcements

None

Statements of Abstention

Commissioner Burke abstained from Item No. 9.1 due to having served on the Board of Burbank Housing and Development Corporation.

Approval of Minutes

Moved by Commissioner Arnone, seconded by Commissioner Olsen, carried 6-0-0-1 (Commissioner Harris abstaining), to approve the Minutes of August 22, 2011, with a corrected vote change for the approval of minutes of June 13, 2011 to read 5-0-1-1. 

Moved by Commissioner Arnone, seconded by Commissioner Burke, carried 5-0-0-2 (Commissioners Harris and Olsen abstaining), to approve the Minutes of August 29, 2011, as submitted.

Moved by Commissioner Arnone, seconded by Commissioner Gonzalez, carried 7-0-0-0, to the Minutes of September 26, 2011, with the change to Chairperson Lemke adjourning the meeting. 

Chairman/ Commissioner Reports

Commissioner Gonzalez announced he attended the opening of the Brookwood Health Center and that there is good progress is a short time.  Chairperson Lemke and Commissioner Burke also attended and agreed it was a nice event and good use of the facility.

Committee Reports

None

Consent Items

Commissioner Harris requested Item 9.1 be voted separately due to financing questions.

Moved by Commissioner Arnone, seconded by Commissioner Castro, carried 7-0-0-0 to adopt and waive the reading of the text of the resolutions in Item Nos. 9.2, 9.3, and 9.4 as follows:

Item No. 9.2
REQUEST:  APPROVE EXTENSION OF OCCUPANCY COMPLETION DATE FOR MCMINN AVENUE SHARED HOUSING, AN EXISTING FOUR-PLEX APARTMENT BUILDING LOCATED AT 1228 MCMINN AVENUE

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.  

RESOLUTION NO.  1530  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN EXTENSION OF THE OCCUPANCY COMPLETION DATE FOR MCMINN AVENUE SHARED HOUSING, LOCATED AT 1228 MCMINN AVENUE, LOAN NOS. 9031-2055-10 AND 9931-2065-10.

Item No. 9.3

REQUEST TO APPROVE THE EXTENSION OF THE REHABILITATION COMPLETION DATE FOR HENRY HOUSE LOCATED AT 1822 MANOR DRIVE

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.

RESOLUTION NO.  1531  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING THE EXTENSION OF THE REHABILITATION COMPLETION DATE FROM NOVEMBER 30, 2011 TO JULY 30, 2012 FOR HENRY HOUSE, LOCATED AT 1822 MANOR DRIVE, LOAN NO. 9929-2035-09

Item No. 9.4

REQUEST TO EXTEND THE TEMPORARY RENTAL TERM OF A DENSITY INCREASE PROGRAM OWNER-OCCUPANCY RESTRICTED UNIT -
901 RUSSELL AVENUE, #129

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. 

RESOLUTION NO.  1532  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A ONE-YEAR EXTENSION OF THE TEMPORARY RENTAL OF A DENSITY INCREASE PROGRAM OWNER-OCCUPANCY RESTRICTED UNIT LOCATED AT 901 RUSSELL AVENUE, #129

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

Item No. 9.1

REQUEST: APPROVE EXTENSION OF THE CONSTRUCTION COMMENCEMENT / COMPLETION DATES FOR HUMBOLDT APARTMENTS LOCATED AT 499 HUMBOLDT STREET AND 670 7^th STREET

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.

Commissioner Harris asked who issued the bonds; how is it repaid; what type of loan is it?

Staff responded that the city issues; repayment comes from project revenue; it is a simple interest 3% loan.

RESOLUTION NO.  1529  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 HUMBODLT STREET AND 670 7^TH STREET - LOAN NOS. 9020-2015-09 AND 9920-2145-11

Item No. 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 HOUSEHOLDS

1:49:28 PM

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. 

Moved by Commissioner Arnone, seconded by Commissioner Castro Herrera, carried 7-0-0-0 to adopt and waive the reading of the text as follows: 

RESOLUTION NO.  1533  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING 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

Item No. 10.2

ADMINISTRATIVE COST SAVINGS

2:13:16 PM

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.

Commissioner Harris made a motion to change current three-year time limit to six years.  Motion died due to lack of a second. 

Moved by Commissioner Burke, seconded by Commissioner Arnone, carried 5-2-0-0 to adopt with the following amendments and waive the reading of the text as follows:

1.  To include in the resolution that approvals by the Executive Director of designee pursuant to this resolution shall be reported to the Housing Authority in the Monthly Activities Report

2.  Add to item #1 of Exhibit A, after “Construction delays beyond the control of the applicant” :“that will not compromise completion of the project” 

RESOLUTION NO.  1534  ENTITLED:  RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING DELEGATION OF APPROVAL AUTHORITY TO THE EXECUTIVE DIRECTOR OR DESIGNEE ON CERTAIN REQUESTS, AND APPROVING REVISION OF THE HOUSING AUTHORITY POLICY STATEMENT OF TEMPORARY RENTAL OFA AN OWNER-OCCUPANCY RESTRICTED UNIT, IN ORDER TO ACHIEVE ADMINISTRATIVE COST SAVINGS

Item No. 10.3

ELECTION OF OFFICERS

2:42:48 PM

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.

Moved by Commissioner Arnone, seconded by Commissioner Burke, carried 5-0-0-0, to adopt the motion electing as Chairman, Commissioner Castro, and as Vice-Chairman, Commissioner Gonzalez, for the next calendar year, with the term of office commencing January 1, 2012.

Written Communications

2:44:31 PM

Commissioner Burke asked if the City Visitor page allow for smart phones?  He also stated parking adds very catchy.

Ms. O’Leary stated staff is working to revise site.   

Chairperson Lemke – thanked fellow commissioners and staff.  Commissioner Castro-Herrera complimented Ms. Lemke as an excellent Chair.

Adjournment

2:46:38 PM

With no other business to come before the Housing Authority, Chairman Lemke adjourned the meeting at 2:46 p.m.

 Shirley Stevens, Recording Secretary