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Home My WebLink AboutRES. No HA-32PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, RESCINDING RESOLUTION NO. HA-30, AND AMENDING THE PROCEDURE FOR SETTING RENTAL RATES AND THE IMPLEMENTATION THEREOF SUBMITTED BY: JANET M MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: AUGUST 24, 2006 CONTENTS: PDHA RESOLUTION NO. HA- 32 LETTER TO RIVERSIDE COUNTY AUTHORITY DATED 6/23/06 Recommendation: By Minute Motion, that the Housing Authority: Waive further reading and adopt Resolution No. HA-32 , a resolution of the Palm Desert Housing Authority, rescinding Resolution No. HA-30, and amending the procedure and implementation for setting rental rates for Palm Desert Housing Authority operated rental units. Executive Summary: Approval of this request will rescind the previous resolution in order to effectuate the intent of the original policy and authorize the Palm Desert Housing Authority (the "Authority") to amend the procedure for setting the rental rates annually for units (the "Units") owned by the Palm Desert Redevelopment Agency (the "Agency"), as well as the implementation process. Discussion: The purpose of amending the previously approved resolution is to be able to implement the rental rate increase as it pertains to those tenants who are being additionally assisted by other public, federal, or local agencies and those individuals requiring a 12-month lease. Tenants that are currently assisted by other public, federal, or local agencies would not be affected by the rental rate increase being realized in its entirety because the subsidizing entity would absorb most of the increased amount. Additionally, most of these entities only allow for increases on an annual basis and which is inconsistent with the current approved implementation plan. The revised method of implementation would allow lease renewals every 12 months for those who are additionally assisted orfor those who require 12-month leases. Staff Report Resolution of PDHA rescinding Resolution No. HA-30 and Amending Procedure for Setting Rental Rates and Implementation Thereof Page 2 of 2 August 24, 2006 Therefore, in order to adjust rents annually with more continuity, staff recommends that the implementation process for setting rental rates be amended to include that where the implementation affects public, federal, or local assistance, or in instances where 12-month leases are required for other purposes, and the increase to the amount the tenant will pay is Tess than $50 per month, the balance of the entire rental rate increase will be paid. Staff recommends approval of the resolution amending the procedure and implementation process for setting rental rates annually. The Housing Commission reviewed this request on August 9, 2006 and is forwarding the request for final review and action. Submitted by: J et . Moore Ho sing Authority Administrator JMM:JG:pl Approval: Department Head: L�:::_t Dave Yrigo Director o edevelopment/Housing a4,04/ velopment Paul S. Gibson, Director of Finance Carlos L. Orteglie Executive Director P6402\0001 \872582.2 it HOUSG AUTF-I VERIFIED BY: fl Original on file with City C erk's Office RESOLUTION NO. HA- 32 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY RESCINDING RESOLUTION NO. HA-30, AND AMENDING THE PROCEDURE FOR SETTING RENTAL RATES AND THE IMPLEMENTATION THEREOF WHEREAS, the Palm Desert Housing Authority (the "Housing Authority") wishes to set forth a procedure for the Chief Administrative Officer or his designee (the "Chief Administrative Officer") to set and implement rental rates annually for units owned by the Palm Desert Redevelopment Agency ("Agency Units") and to increase rents charged for Agency Units in accordance with such rates; NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Chief Administrative Officer shall set maximum rental rate amounts for Agency Units to be effective each year on July 1st in the following manner: A. For Agency Units acquired, developed, rehabilitated, or otherwise assisted, which are required to be available to and occupied by persons and families whose income is between 20 percent and 65 percent of the area median income, maximum rental rates shall be established in accordance with the terms of that certain Stipulation for Entry of Judgment in Case No. Indio 51143, as subsequently amended (the "Stipulation"). B. For all other Agency Units, (i) Immediately upon adoption of this Resolution, the Chief Administrative Officer shall set maximum rental rates as recommended by the appraisal analysis conducted by Sweet & Associates dated December 31, 2004 and on file in the office of the Housing Authority Secretary. (ii) Beginning in April of 2006, the Chief Administrative Officer shall cause to be conducted a bi-annual survey of area market rental rates for rental units similar in size and unit mix to the Agency Units and shall set maximum rental rates in accordance with the survey results. For example, the market rental rate for a two -bedroom unit in a duplex may be established as the maximum rental rate for a two -bedroom Agency Unit in a duplex. (iii) In the intermediate year between surveys, the Chief Administrative Officer may increase maximum rental rates by the same percentage as the percentage increase from the previous year to the current year -1- G\RDA\Jessica Gonzales\HOUSING AUTHORITY PROPERTIES\ANNUAL RENT INCREASES\2006\STAFFRPRT-approval request.doc 8/ 16/2006 in area median income. (iv) The Chief Administrative Officer may establish maximum rental rates at an amount that is less than the market rental rate to compensate for an unusual property condition. (v) In no event shall the maximum rental rate for any Agency Unit exceed the affordable rent for that unit as calculated in accordance with Health and Safety Code Section 50053. Section 2. Implementation A. For those Agency Units described in Section 1.A. hereof, after proper notice has been given, the Chief Administrative Officer shall set the rental rate for each unit determined pursuant to Section 1.A. B. For all other Agency Units, after proper notice is given, the Chief Administrative Officer shall set the rental rate for each unit at the maximum rental rate determined for that unit. Any rental rate increase shall be implemented in the following manner: (i) For vacant units, the full amount of the rental rate increase shall be implemented immediately. (ii) For occupied units, (a) if the increase to the amount the tenant will pay per month is less than or equal to $50, the full amount of the rental rate increase shall be implemented at lease renewal, and (b) if the increase to the amount the tenant will pay per month is more than $50, the rental rate shall be increased by $50 at lease renewal and by $50 every six months thereafter until the rental rate equals maximum rental rate, or at the two-year anniversary of the original implementation of the rental rate the balance of the entire rental rate increased will be paid, and (c) if the unit or the property on which the unit is located is in need of renovations, the rental rate increase may be deferred until completion of the renovations or the increase(s) may be less than otherwise provided for pursuant to subparagraphs (i) and (ii) of this paragraph B. -2- G \RDA',,Jessica Gonzales\HOUSING AUTHORITY PROPERTIES\ANNUAL RENT INCREASES\2006\STAFFRPRT-approval request doc 7, 24/2006 (d) Where the implementation affects public, federal, or local assistance, or in instances where 12-month leases are required for other purposes, and the increase to the amount the tenant will pay is Tess than $50 per month, the balance of the entire rental rate increase will be paid. Section 3. Tenant income in all cases shall be adjusted for family size and shall be sufficient to pay affordable rent as determined for that unit in accordance with the Stipulation or Health and Safety Code Section 50053. Section 4. The Chief Administrative Officer may take any other action, which he believes is necessary or desirable to implement this resolution so long as such action is not inconsistent with the intent hereof. PASSED, APPROVED and ADOPTED by the Palm Desert Housing Authority, this 24th day of August, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Jim Ferguson, Chairman ATTEST: Rachelle D. Klassen, Secretary - 3 - G \RDA\Jessica Gonzales\HOUSING AUTHORITY PROPERTIES\ANNUAL RENT INCREASES\2006\STAFFRPRT-approval request doc 7/24/2006 PDLffi IIES[RT REDEVELOPffi[NT AGENCY 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-0611 I•AX: 760 341-6372 info('i palrn-dcscrt.org June 23, 2006 Ms. Larkin Landau Riverside County Housing Authority 44-199 Monroe Street Indio, CA 92201 RE: Proposed Rent Increases Dear Ms. Landau: The Palm Desert Housing Authority adopted a rent setting policy on March 9, 2006. Below are the new proposed rates to be implemented pursuant to the adopted Resolution HA-30 for our properties and will be effective July 1, 2006 (upon proper notice). We are seeking your approval of the proposed increases by signing and returning it to our office. We do understand that in addition to your approval it might be necessary for the assigned Housing Specialist of the Riverside County Housing Authority will have to process for each Tenant the request on a case -by -case basis. Sincerely, Subject Property Markel Rent Estimates — 5/01/06 CALIFORNIA VILLAS - 141 Units E__ CATALINA GARDEN APTS - 72 Units DESERT POINTE APARTMENTS — 64 Units LAGUNA PALMS APARTMENTS - 48 Units LAS SERENAS APARTMENTS - 150 Units NEIGHBORS GARDEN APTS — 24 Units ONE QUAIL PLACE — 384 Units PUEBLOS APARTMENTS 15 Units TAOS PALMS APARTMENTS - 16 Units Studio S 700 $ 650 $ 650 1/1 2/1 2/2 S 750 - S 900 S 775 5800 - S 775 5 875 5 965 S 725 S 795 [ 5735 S835I $875 I - 5 895 S 925 5 1,000 5 750 - -- - S 865 COUNTRY VILLAGE APARTMENTS - 66 Units S 635 oore, Housing Administrator 5 755 Riverside County Housing Authority Approved by: arkin LandtPrincipal Development Specialist G \RDA\Jessica Gonzales/WpdataWMM\RPM/countyconsent wpd 6/26/06 n r¢ e+nr;uo rmv