Loading...
HomeMy WebLinkAbout1998-10-08MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, OCTOBER 8, 1998 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER President Benson convened the meeting at 4:06 p.m. II. ROLL CALL Present: Commissioner Buford A. Crites Commissioner Jim Ferguson Commissioner Richard S. Kelly Vice President Robert A. Spiegel President Jean M. Benson Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk John M. Wohlmuth, ACM/Director of Administrative Services Richard J. Folkers, ACM/Director of Public Works Patrick Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer David Yrigoyen, Redevelopment Agency Manager Teresa LaRocca, Housing Manager Rachelle D. Klassen, Deputy City Clerk With Authority Board concurrence, President Benson adjourned the meeting to Closed Session at 6:12 p.m. She reconvened the meeting at 7:08 p.m. III. CONSENT CALENDAR A. MINUTES of the Housing Authority Meeting of September 24, 1998. Rec: Approve as presented. Upon a motion by Spiegel, second by Ferguson, and unanimous vote of the Authority Board, the Consent Calendar was approved as presented. MINUTES PALM DESERT HOUSING AUTHORITY MEETING OCTOBER 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. REQUEST FOR APPROVAL OF PROPOSED HOUSING AUTHORITY RENTAL SCHEDULE. Ms. LaRocca stated the subject request was for the establishment and implementation of a rental range schedule for the seven multi -family properties owned by the Housing Authority. She said since the properties were acquired earlier this year, staff had analyzed the rental structure, and it became very apparent that there was no structure. However, she said there was a 30% of total household income, adjusted by family size, with an allowance for utilities, being charged. She said as a result, rents were being charged all across the board with no continuity or structure applied. She said the proposed attempted to establish a schedule which would provide a stable income for the Authority and the ability to project future income to be realized from the properties. She stated that Jim Foley of RPM Management was in attendance to answer any questions regarding the analysis. Upon question by Commissioner Ferguson as to how many people were affected by rate increases if the subject schedule were approved, Ms. LaRocca replied there would be 43 tenants. She added the majority of tenants would receive minor decreases in their rent, with the 43 receiving increases of between $50.00 - $100.00, and eight tenants would receive increases in excess of $100.00. She asked the Council to bear in mind that the increases would be imposed following the analysis of the recertification, noting that if income for those individuals who now merited an increase had changed, their rent would be adjusted according to their present status. She said this was what the situation looked like at this time, but in the end, there may not be as many. Upon question by President Benson if the recertification process had already begun, Ms. LaRocca answered they would be recertifying as leases came due and on a monthly basis. She noted that many of the tenants were on a month -to -month basis and added that the recertification had been delayed until a formula was in place. Upon question by Commissioner Ferguson whether the eight that were over $100.00 were significantly over $100.00, Ms. LaRocca replied very few were significantly over, and she deferred further response to Mr. Foley. 2 MINUTES PALM DESERT HOUSING AUTHORITY MEETING OCTOBER 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MR. JIM FOLEY, RPM Management Company, reported that they were significantly over $100.00, adding that it was strictly based upon the qualifying percentage applicable to the tenant's current status. He said in applying the formula, that was what these tenants' rent should have been all along; therefore, they had been paying $100.00 less than their affordable level was at the time they moved in based upon the County's formula. Upon question by Vice President Spiegel as to how the tenants would be informed of the increases, Mr. Foley replied it would be done through the recertification process. He said RPM would have a spreadsheet set out showing how the formula was developed and how the fixed rents were calculated, taking into consideration the utility allowance. He said they would educate the tenants on the program, show where they fit into the program based upon their income and adjustments, and with that information, their required level would be calculated. He added that on -site staff would receive a training session, then they would be meeting individually with the 43 tenants who merited rental increases. Commissioner Crites noted that the term "education" normally implied some give and take, and he inquired whether the tenants would have opportunity to educate the management about why they did not want the increases to occur and if there was a way to determine that they should not occur. MR. FOLEY replied that after reviewing all the files of the Housing Authority and its criterion, the goal was to eliminate most of the gray area in affordable housing and clean up the criterion, noting that there was currently a lot of gray. He said by education, he meant that it would be to place people in the proper categories according to their affordable level based upon the judgment adhered to by the Housing Authority. Ms. LaRocca added that if the tenants could demonstrate why their rent should not be increased by the set amount, then those reasons would be verified in order to fairly assess rental charges accordingly. She said the tenants would have opportunity to educate the Housing Authority officials of their individual financial situations. Commissioner Crites asked what kind of a time frame was expected to raise a tenant's rent, if needed, by $120.00 per month-- if the increase would be effective immediately the next month. MR. FOLEY said that staff had proposed for anyone whose rent required an increase of $50.00 or less per month, the increase would be phased in over two periods each quarter (three months); $25.00 would be charged the first three months, with the additional $25.00 per month being charged the second three months, and effective at the end of six months. He added that if the increase was more than $50.00, it would be phased i►^ over a one-year period in the four quarters, resulting in a $10.00 - $15.00 increase per quarter to minimize the. impact. He also said that the tenants would be provided a 60-day notice prior to an:' rent increase. 3 MINUTES PALM DESERT HOUSING AUTHORITY MEETING OCTOBER 8, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Vice President Spiegel moved to, by Minute Motion, approve the proposed rental range schedule allowing for stabilization of rents at the seven Authority -owned multi -family rental housing projects. Motion was seconded by Ferguson and carried by unanimous vote. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER None B. AUTHORITY COUNSEL None C. PRESIDENT AND MEMBERS OF THE AUTHORITY None X. ADJOURNMENT With Authority Board concurrence, President Benson adjourned the meeting at 7:16 p.m. ,//f J11'1 M. BENSON, PRESIDENT ATTEST: V ste-- - - SHEILA R. LLIG AN, ,: RLTAk Y TO THE PALM DESERT HOJ AUTHORITY 4