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HomeMy WebLinkAboutMinues - Housing Commission 01/08/2020S Q CITY OF PALM DESERT PALM DESERT HOUSING COMMISSION ADJOURNED MINUTES WEDNESDAY, JANUARY 8, 2020 — 3:30 P.M. DEVELOPMENT SERVICES CONFERENCE ROOM 73-510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER Chair Juan Mireles called the meeting to order at 3:30 p.m. II. ROLL CALL Present: Commissioner Donna Ault Commissioner Jann Buller Commissioner Dennis Guinaw Commissioner Melody Morrison Vice -Chair Gregory Ballard Chair Juan Mireles Also Present: Kathleen Kelly, City Council Member Liaison Ryan Stendell, Director of Community Development Jessica Gonzales, Senior Management Analyst Teresa Vakili, RPM Company Melinda Gonzalez, Recording Secretary Eric Ceja, Principal Planner Chris Gerry, Management Analyst III. ORAL COMMUNICATIONS None IV. CONSENT CALENDAR Absent: A. MINUTES of the Regular Housing Commission meeting of December 4, 2019. Rec: Approve as presented. Upon a motion by Vice -Chair Ballard, second by Commissioner Morrison, and a 6-0 vote of the Housing Commission the Consent Calendar was approved as presented (AYES: Ault, Buller, Ballard, Guinaw, Mireles, and Morrison; NOES: None; ABSENT: None). ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION V. NEW BUSINESS JANUARY 8, 2020 A. REQUEST FOR CONSIDERATION of recommendation to the Housing Authority Board and City Council to approve the Housing Overlay District for the establishment of an affordable housing incentive policy to be presented at a future meeting. Senior Management Analyst, Jessica Gonzales provided a brief summary of the request before the Commission and introduced Principal Planner, Eric Ceja for the presentation of the Housing Overlay District. Mr. Ceja provided a short introduction of himself. He then provided a summary of the background to the Housing Overlay District, stating last year City Council appointed a subcommittee including Mrs. Gonzales, himself and council members, Jan Harnik and Kathleen Kelly, to explore affordable housing policies for the City of Palm Desert. After reviewing a range,of different policies, the subcommittee is recommending a zoning ordinance amendment which establishes a Housing Overlay District. Mr. Ceja explained the Housing Element Plan submitted to the State contains requirements that the City is mandated to perform, specifically the Regional Housing Needs Assessment (RHNA) which requires the City to plan for a number of housing units to be built during an eight year cycle, with the upcoming cycle to begin 2021. The City has had many proposals come forward for residential developments which has led to staff being tasked with looking at ways to achieve additional affordable housing for each of these developments. Previous negotiations with developers have been individualized resulting in a variety of different incentives being provided and applied to each project. City Council requested staff research the possibility of devising a standard policy for incentives offered to interested developers, instead of individualized negotiations of incentives for each project. Mr. Ceja further stated Mrs. Gonzales and he reviewed the City's goals and policies in the General Plan, Strategic Plan, and the Housing Element to see what policies are established at the city level that are similar which specifically address affordable housing. They also looked at a metric of how best to view housing as a whole for the City. Their research found a jobs housing balance of one and a half jobs for every household was promoted by both the American Planning Association and the Building Industry Association. They also reviewed RHNA. The State has determined 1.3 million homes will need to be built in Southern California over the next eight year cycle which begins in 2021. An estimated 2,700 of those homes are to be built in the City of Palm Desert. The proposed affordable housing units will vary from very low income to above moderate income. Director of Community Development, Ryan Stendell, commented in the last five years the City has built less than 100 units per year, so this metric is very ambitious. Reviewing the RHNA Cycles, in 1998 the City met its overall goal for total number of units required. However, in 2007, recession hit and the State eliminated Redevelopment Agencies which significantly cut into the City's ability to develop housing. The City was ultimately unable to meet RHNA's goal number. With the end of the current RHNA cycle, 2014 through 2021, the City was able to meet the required production numbers based on private market development and Housing Authority projects that have been completed, 6 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 specifically, the Carlos Ortega Villas. Mrs. Gonzales noted these numbers also include projects that have been approved, but are not yet constructed. Mr. Ceja stated Mrs. Gonzales and he used the metric of one and a half jobs for everyone household promoted by the American Planning Association and the Building Industry Association to see how the City of Palm Desert compares to this standard. A review of Palm Desert's portfolio reveals approximately 1,700 units built which are currently in operation with 245 committed units in the very low income category. Upon inquiry as to whether these are rental properties or owner occupied, Mrs. Gonzales explained there are four different housing categories. The first being the fifteen Housing Authority communities, the second category are 350 developer provided units which are through a housing agreement utilizing a density bonus, the third category are owner occupied, which are single family homes offered at the Falcon Crest and Desert Rose communities as well as infill homes built through self-help and Habitat for Humanity of the Coachella Valley. The fourth category, Entitles, is a combination of all categories. Of the approximately 1,700 units, 725 are dedicated to very low income households, 719 to low income, and 308 for moderate income households. Seniors occupy just over 700 of the units and nearly 500 units are occupied by households with children under the age of 21. Additionally, almost half of the total units are maintained by a female head of household. Mr. Ceja reported Mrs. Gonzales and he conducted thorough research and review of the other cities valley -wide to see how Palm Desert compares. Results for Palm Desert indicated there are approximately 2 people per household with 1.14 jobs available per household. While not quite at the 1.5 ratio that is advocated for, Palm Desert is doing better than most cities in the Coachella Valley. Councilmember Kelly, commented the large number of retirees in the Coachella Valley influences the overall numbers. There is an expectation of fewer jobs per household as a consequence of the retiree population occupying so many homes. Discussions amongst the subcommittee members have observed that Palm Desert is the employment center of the Coachella Valley therefore, efforts should be made to ensure there is sufficient housing to support the employees in Palm Desert. Mr. Ceja reported approximately 4.5% of Palm Deserts housing stock is dedicated to affordable housing. Mrs. Gonzales and he did extensive research to determine what other affordable housing policy options are available around the state. There have been a number of changes at the State level in the last two years including 18 new housing laws passed in 2018 and 19 new housing laws passed in 2019. These new laws include items which would streamline the process for development. Permits will still be required for projects such as building an accessory dwelling unit or a new addition to a home, however, the City would be limited with its ability to deny the development of these types of structures. Additionally, there are new California Environmental Quality Act (CEQA) clearances and guidelines related to housing that have been implemented to assist with expediting the development of housing with the State. Their research also revealed many cities were creating an affordable housing overlay district, which is the policy before the commission. Other cities fee schedules were also 3 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 reviewed. Staff had considered the possibility of a no net fee, which would allow fees to essentially stay the same, however, a portion would be allocated to affordable housing. At the policy committee level it was not recommended to move forward with this alternative, though, this is still an option which may be considered in the future. There has also been discussion regarding the need to identify Housing Authority properties and taking a more assertive approach to market these properties for development. With the release of the new RHNA numbers staff will need to be strategic with how these properties are released and developed. In larger cities, an inclusionary housing ordinance has been implemented which requires developers to set aside a portion of that development for affordable housing. This policy has received mixed reviews and is not currently in practice within the Coachella Valley, therefore, it is not an option being entertained at this time. Mr. Ceja referenced the current Housing Overlay District policy before the commission, stating its intent is to incentivize affordable housing units. This policy would be voluntary and would be applied to properties that have been identified in the City's housing element as well as Housing Authority properties. This is an optional standard, should a developer choose to allocate 20% of the units within their housing project as income restricted units, they are eligible for the incentives offered in the policy. Commission Buller inquired as to the origin of the incentives being proposed in the policy, did staff receive feedback or input from the development community or are they from other city policies. In reply, Mr. Ceja stated initially, City staff met exhaustively with the Building Industry Association, Desert Valley Builders Association, Coachella Valley Housing Coalition and other affordable housing developers to get a better understanding of what impedes their ability to develop affordable housing. What staff learned was that requiring certain items can make it difficult for developers to finance their projects, however, they approved of an option to have incentive standards available to them. Additionally, staff reviewed other cities who had overlay district policies, finding the majority offered development standard flexibility, some type of expedited process through the City, and a density bonus. Staff is hoping there are enough incentives within this policy to entice developers to provide affordable housing units as part of their project. Chair Mireles observed the identified properties for the overlay district are all north of Fred Waring and asked if there was a reason for this. Mr. Ceja replied the identified properties are already part of the established housing element and others are already owned by the Housing Authority, making these ideal areas to slowly start the implementation of this policy. He noted this policy could be applied to additional areas in the future. Councilmember Kelly added the City is trying to avoid over populating areas and drastically altering the character of established neighborhoods without community input and public hearing. These properties have already been identified as very suitable for this kind of development. 4 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 Vice Chair Ballard asserted the issue seems to be the percentage of loss to property values. In reply, Councilmember Kelly stated the issue is lifestyle as well as property value, adding many people have moved to the area because they want to escape urban density. Vice Chair Ballard commented there are a number of different things that will rely on the success of this program. He noted they will need to adapt new standards of appraisal for example, adding he can see many positive and negative aspects to this program. He stated one of the issues his client has come up against is the community's unwillingness to have affordable housing in their area. Vice Chair Ballard expressed it will be a challenge to present this program in a positive light, and felt it should be taken to the real estate community to see how this will affect them. He stated he feels the overlay is a great idea and agrees with the recommended policy. Director of Community Development Ryan Stendell agreed that the implementation of this policy will not be easy, however, it is a good start toward the future of affordable housing. Vice Chair Ballard inquired about the possibility of approaching the Marriott, adding they have the land and the means to build. Councilmember Kelly asserted affordable housing requires extensive expertise because the funding sources are varied and complex, it is a specialty. There are entities with this specialty in the Coachella Valley, and many more resources outside of our area which we may be able to entice to the City. It would be difficult to convince entities that do not already possess an expert on staff to take this opportunity. It would a greater prospect for success to identify and entice entities that are already involved in the affordable housing industry within the surrounding vicinity. Mrs. Gonzales explained this policy is intended for communities being developed that would not have 100 percent affordability provided as part of that community. This policy is meant to encourage private developers, who did not plan otherwise, to include 20% of their units as affordable housing, so they can take advantage of the incentives which come along with this inclusion. Chair Mireles expressed concerned regarding the designated areas being concentration in one area adding he would like to see it spread more throughout the City. Councilmember Kelly commented that our current affordable housing communities are located throughout the City. The area designated in the overlay district are where the City has the most vacant land available for development. This proposed area currently has housing communities like Genesis, already developed and the allocated areas for affordable housing are approximately 25% of the overlay district, so a noticeable concentration of these developments are avoided. Mrs. Gonzales reiterated that the developments would not be one hundred percent affordable, it would be 20% of the units in any given development which would prevent a concentration of affordable households. Additionally, since these areas are vacant land they provide the best opportunity for developers to take advantage of the density bonus 5 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 and other offered incentives, which in turn allows the City to yield a greater number of affordable units. Commissioner Buller observed some of the incentives and strategies mentioned in the housing overlay district were items that were negotiated with the developer for the Sands project. In reply, Mr. Ceja stated this was correct, adding the State already allows a density bonus and notes the number of concessions a City should offer. The overlay district policy uses some of those density provisions and further defines the incentives which would be available as a standard to any developer who chooses it as an option. Upon inquiry by Commission Buller, Mr. Stendell stated the map provided is part of the General Plan adding the designated overlay district areas are zoned as planned residential. Chair Mireles commended the City for being aggressive about addressing the issue of affordable housing. Upon a motion by Vice -Chair Ballard, second by Commissioner Guinaw, and a 6-0 vote of the Housing Commission the Request for Consideration to recommend approval of the Housing Overlay District was approved as presented (AYES: Ault, Buller, Ballard, Guinaw, Mireles, and Morrison; NOES: None; ABSENT: None). VI. CONTINUED BUSINESS None VII. OLD BUSINESS None Vill. REPORTS AND COMMENTS A. Commission Members Remarks and Requests Mrs. Gonzales introduced staff member, Chris Gerry, commenting she invited him to the meeting so that he can provide more detailed information on the City's efforts to help the homeless in our community. Management Analyst, Chris Gerry, gave a brief introduction of himself. Mr. Gerry informed the City has a local homeless outreach program which includes two Riverside County workers dedicated to the City of Palm Desert. These county staff workers are contracted through Riverside University Health Systems, which is part of their mental health department. They work in our community essentially full time and drive throughout the community in a County vehicle looking for individuals who are homeless. Mr. Gerry stated those in homeless advocacy have found that continual relationship building with homeless individuals builds trust which allows the workers to help them with their current situation and the eventual goal of participation in the Housing First model program. Initial contact by the workers with the homeless in the ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 community will normally include a conversation and an offer of water, coffee, help and services. While the first contact may not be positive or successful they continue to visit these individuals daily with the same offer so they can work toward building trust. This method has proven to be effective among the homeless community. Once the workers have established an ongoing rapport with their client they find out what they need and remind them of their offer to assist with housing placement and services. Developing ongoing communication allows the workers to have a better understanding of their client, and assess whether there are mental health needs, substance abuse and/or other concerns. The City's program started July 1, 2019 with a goal to help navigate people through the housing process. Statistics for the program at this time reveal, since its inception eighty nine homeless individuals have been contacted in our community, with a majority of those found to be just passing through our City to services in another community such as Martha's Village or the Coachella Valley Rescue Mission. With the recent closure of several recycling centers there has been a rise in transient homeless. Out of the eighty nine homeless individuals, approximately fifteen to twenty five of them continually reside in Palm Desert. With extensive efforts the workers now know these individuals on a first name basis and have been able to establish a relationship with them, allowing a better understanding of what the individual's barriers are. Building these relationships take time, currently through this program approximately four to five people will be placed in the next two months and three people have been successfully housed. Additionally, there have been three family reunifications. These individuals were not necessarily accustomed to the street life or are homeless due to a falling out with their family. The workers have contacted their families and worked with them so they can reunify and go back home. Because the homeless numbers in our community are not as severe as those seen in larger cities, Palm Desert has an opportunity to make a significant change in people's lives and reduce the number of homeless in the community. Everyone that has been worked with has been connected to mental health services and substance abuse assistance as needed. They have also received assistance with filling out documents to secure income sources, veteran services and other needs. Through the collaboration of multiple departments and agencies including Palm Desert Citizens on Patrol, Law Enforcement, Code Enforcement, Public Works, Park Staff, City Staff and the two County workers dedicated to Palm Desert, people are identified and referred to the program for services. Regionally, the City contributes $100,000 to Coachella Valley Association of Governments (CVAG) who has contracted Path of Life Ministries to maintain the Coachella Valley Housing First program which is a regional outreach program and resource. CV Housing First collaborates with our workers locally to assist with services and ensure efforts are not duplicated. Mr. Gerry provided everyone a copy of the November/December 2019 Brightside. He pointed out the article which provided a summary of the homeless assistance program as well as all the various ways the public could access these services. Mr. Gerry encouraged everyone to call the phone number if they came across someone they felt could benefit from these services. He explained the caller would leave a message on 7 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 the hotline which would be responded to promptly. The message is sent to numerous staff members who would assess the call to determine which department and/or staff member would be best suited to assist with the call. Chair Mireles inquired as to whether the State has reached out to cities to request shelters be built to assist with the homeless crisis. Ms. Gonzales advised that the State has provided funding sources, specifically grants, to allow non-profit organizations and other organizations the opportunity to build these facilities. Councilmember Kelly stated when CVAG was researching to determine what would be the best way to utilize their funds they found the success rate for transitioning people out of shelters was low. Integrating people into normal living environments and wrap around services was shown to be a much more beneficial approach. Path of Life contracts with landlords to dedicate housing units to be used for emergency housing with wrap around services that address the multiple issues these individual's may have. Commissioner Morrison commented she has observed more homeless in the city than ever before. Other attendees noted, they have seen an increase in the last three years. Upon inquiry by Commission Ault, Mr. Gerry reiterated the best number to contact for services is the homeless outreach hotline phone number and concluded his presentation. Mrs. Gonzales explained that a review of the Administration Plan will be completed annually to make updates as necessary. These updates will reflect changes to State law or to provide clarification due to circumstances that may have arisen since the last update, so that residents are clear about the process and expectations for leasing a Housing Authority unit. Mrs. Gonzales acknowledged Exhibit B which addresses the process, requirements and source agencies for background checks conducted for lease agreements. She reported no State or Federal statutory changes have occurred since the last update, therefore, the exhibit remained the same, with no changes being proposed. Mrs. Gonzales invited questions or comments regarding the exhibit presented, to which there were none. Mrs. Gonzales acknowledged Exhibit D which addresses the pet policy for Housing Authority units. She advised the substantial change to the policy was the section related to sanitation, which has been an issue because of damage to the units caused by pets. Clarification was provided in the policy as to owner's liability for these damages and advises a fee will be charged for any damage caused by the animal. The second noticeable change was to the definitions of service animal and assistance animal. The definitions were changed to reflect a broader description which was provided and in compliance with the State and Federal definitions for permitted uses for service and assistance animals. It also addresses the type of service and assistance animals allowed. Mrs. Gonzales invited questions or comments regarding the exhibit presented. C ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 Upon inquiry by Councilmember Kelly, Mrs. Gonzales advised that all of our units are considered restricted units. Councilmember Kelly asserted that while the definitions clarify what is considered a service and assistance animal, section 2 contains no reference which limits allowable pets to these two categories. Mrs. Gonzales stated she would revisit this section of the policy and add clarification to address the concern brought forth by Councilmember Kelly. Upon inquiry by Vice -Chair Ballard, Mrs. Gonzales confirmed there is a section included for noise abatement. No further comments or questions were offered in this discussion. Ms. Gonzales reported there was a fire incident which took place at California Villas early Saturday morning. The incident was contained to one unit and is currently under investigation. The resident sustained injuries and was taken to a burn center. Ms. Vakili commented the burn center has contacted her and stated family care services are currently working to find the resident another appropriate permanent housing unit. Ms. Gonzales noted the damaged unit will be down for a bit while work to restore the unit is conducted through the insurance company. B. Commission Reports C. Summary of City Council and Housing Authority Actions A memo provided by Senior Management Analyst, Jessica Gonzales summarizing upcoming agenda items and approved action items from City Council and the Housing Authority Board meetings was provided to commission members for review. Ms. Gonzales commented that all action items listed on the summary which went before City Council and the Housing Authority Board at their last meeting were approved, adding Mr. Katz requested she let the other Commissioners know he enjoyed his time on the Housing Commission and will miss being a part of it. Ms. Gonzales further noted the agenda item referenced on the summary was not brought before the Housing Commission as it is a negotiation of lease. The item is a request for consideration to approve the assignment and assumption of the ground lease to Allied Affordable Housing, as a necessary step for the developer to meet requirements to apply for HOME funds for the Arc Village project. The previous attempt by the developer was unsuccessful because of this technicality. This step will remedy that issue and allow the developer to successfully apply and hopefully secure funding for the Arc Village project. D. RPM Company Monthly Reports RPM Company Vice President, Teresa Vakili, acknowledged the RPM reports provided to Commissioners for the month of October 2019. Ms. Vakili reported the N ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 properties are currently 99% occupied and RPM staff completed 82 re -certifications during the reporting month. Ms. Vakili invited questions or comments about the reports. Upon inquiry by Commissioner Morrison, Ms. Vakili stated overall expenses are generally the same, however, projects over $1,000 are subject to prevailing wage which does increase overall costs for services. E. Update on Housing Authority Properties Ms. Vakili acknowledged the Palm Desert Housing Authority Projects report for November. She reported staff completed 356 service requests during the reporting period. She noted in the month of November they were able to take advantage of SCE's energy savings program and were able to get many items replaced at no cost, including common area lighting changed to LED lighting, refrigerators that were ten years old or older and pool lighting. Ms. Vakili also reminded Commissioners that all eleven boilers at One Quail Place Apartments will also be replaced at no cost, which is a substantial savings they are able to capitalize on through the Gas Company. Ms. Gonzales added the Gas Company will also pay for the engineer, engineering plans and required wiring associated with this project. Upon inquiry by Commissioner Morrison, Ms. Vakili stating these savings do not include the pool project noted during the tour of the Housing Authority properties. The re -plastering of the pools is a separate project which does not involve SCE or the Gas Company. SCE will only change the pool lighting, however, neither company offers a cost savings program to replace pool pumps and/or heaters at this time. F. Update on the Home Improvement Program Ms. Gonzales advised Commissioners that due to the holidays, HIP information was not available in time for this meeting, however, it will be reported at the next scheduled meeting in February. IX. ADJOURNMENT With Commission concurrence, Chair Mireles adjourned the meeting at 4:48 p.m. Melinda Gonzalez, Recording S retary 10