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HomeMy WebLinkAboutHOUSG CMSN 08/08/07CITY OF PALM DESERT HOUSING COMMISSION MINUTES AUGUST 8, 2007 I. CALL TO ORDER Vice -Chairman Leo Sullivan convened the meeting at 3:35 p.m. II. ROLL CALL Present: Leo Sullivan Natalie Russo Linda Ward Also Present: Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst — Housing Bryce White, Project Administrator James Conway, Project Coordinator Beth Longman, Acting Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS Members Absent: Verna Smith Jane Turner Janet Moore stated that the Agency's attorney has requested that New Business Item A, the Housing Cooperation Agreement, to be continued to a date uncertain. Action: Motion made by Commissioner Russo and seconded by Commissioner Ward, that the review of the Housing Cooperative Agreement be continued and such Motion was unanimously approved. Housing Commission Minutes AUGUST 8, 2007 IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of July 11, 2007. Janet Moore reported that it has been confirmed by the City Clerk that if a majority of the members present at this meeting were also present at the July 11, 2007, meeting then a vote to approve those minutes can be taken. With a Motion made by Commissioner Russo and seconded by Commissioner Ward that approval of the Minutes be continued until the September 12, 2007, meeting and such Motion was unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS There were no Commission Reports. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for June was reviewed by the Commission. Natalie Russo asked if it was correct at California Villas that there are ten units shown as vacant, but that are not down. Teresa Vakili responded that this is correct, and that these ten units are completed and ready to pre -lease. Ms. Russo inquired if there were prospective tenants on the waitlist. Ms. Vakili responded that because of the length of the recent construction, the waitlist was depleted and is now being re-established. The individuals who had been on the waitlist had already found housing. Janet Moore added that people on waitlists for other Housing Authority properties were being contacted to see if they had an interest in moving to California Villas. G:\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Linda Ward asked if there were a larger number of people inquiring about renting at California Villas now that the renovation is complete. Ms. Vakili replied that traffic is picking up due to marketing efforts and the fact that the property has been renovated. Ms. Vakili also stated that people from surrounding apartment communities have approached them in hopes that the City would purchase their properties. Justin McCarthy stated that there is a large, approximately 200-unit property nearby that is similar in style and construction to California Villas, and that the City has approached the owners several times inquiring about a possible purchase. They have not been able to make a deal on an acquisition. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for June was reviewed by the Commission. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Due to the fiscal year end process, Report #2 for June is not available, but will be provided as soon as it is available. Teresa Vakili stated that they want to make sure that all invoices for fiscal year 2006/2007 are in before preparing the statements. Janet Moore stated that the City does not officially close the books and provide preliminary financials until November with finalization in December or January. RPM has to follow the same schedule as the City, but they try to close sooner than that and hope to have the year-end reports available by October or perhaps September. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan asked how many more compressor failures could be expected. Janet Moore stated that they are working with Pat Conlon of the City's Office of Energy Management who has suggested that we change out most of our units to 15 SEER ratings or higher. There are currently significant rebates being offered and Mr. Conlon is preparing a specification package for all of the Housing Authority properties except for Laguna Palms, California Villas, Country Village Apartments, Palm Village 3 G:\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Apartments, and One Quail Place. The units at One Quail Place will eventually be replaced, but because of the configuration and large number of units at this property there is a need to scope this project differently. It will also involve a lot of coordination with the tenants. Mr. Sullivan asked how much could be expected in rebates. Janet Moore stated that a rebate of approximately $500,000 against a replacement cost of approximately $2,000,000 could be expected for changing out approximately 370 units at the properties currently being considered. Ms. Moore further stated that they believe that the rebates are only guaranteed through the end of 2008. Some of the current units only have a rating of 6 SEER so by increasing efficiency of these units to a 15 SEER rating, we hope to defray some of the cost through the savings. The tenants will see some benefit to this increase in efficiency; however, we can utilize the County's utility allowance for energy efficient units. This is a much smaller allowance to the tenant so we will collect more in rent. This will also help to offset the cost. Ms. Moore stated that these figures are a qualified estimate based on Mr. Conlon's initial review of a replacement program. Linda Ward asked James Conway if duct cleaning is done at the properties. Mr. Conway replied that duct inspections and cleaning are now required if an air conditioning unit is replaced. There is also a rebate program for this work. If the anticipated replacement program were undertaken, duct cleaning would be required. Ms. Ward stated that her ducts have not been cleaned while she has lived in her apartment, and that she understands that her air conditioner was replaced shortly before she moved in. Leo Sullivan asked if the phone entry system at Candlewood Apartments was being replaced or if it is a new system. Mr. Conway replied that it is a new system. New entry gates have been installed and an entry system is needed for tenants to give guests access to the property. Janet Moore pointed out the cost comparison prepared by Mr. Conway of factual numbers with respect to Laguna Palms and Palm Village. This shows the difference between a newly constructed project and a renovation. The information was provided to the Commission using Palm Village as a comparison because it is a recent project. However it was noted that there are variables between the two projects making the comparisons difficult. Primarily, the Palm Village project was a Davis Bacon prevailing wage job, while Laguna Palms was a renovation. There are increased costs with both of those types of projects, and staff is unable to quantify an amount, or percentage to allocate to the variable aspects of the projects. 4 G:\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Leo Sullivan asked if a comparison of square foot costs could be made for these two projects. James Conway will provide this comparison. Justin McCarthy noted that with the increase in land prices, the cost per unit could increase to $300,000 in terms of production. Natalie Russo commented that this sounds higher than market value for these properties. Mr. McCarthy replied that this could happen if properties are demolished and rebuilt or if they are rehabilitated to a current standard. Mr. Sullivan commented that it could be necessary to pay these prices in order to get the product into the portfolio. Mr. McCarthy noted that Palm Village had a very low land cost, and Laguna Palms was fairly low on a per unit acquisition cost. Land costs are now approximately $400,000 to $500,000 per acre. Mr. Sullivan noted that with the City being almost entirely developed, there is not much land available. This drives up the cost of land. VI. NEW BUSINESS A. Housing Cooperation Agreement Motion to continue was made during Oral Communications. VI1. CONTINUED BUSINESS VII1. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (August) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway stated that there are four homes nearing completion, three are in the middle of construction, and the remaining homes are new assignments and are just in the early stages of the program. The list has been reduced substantially. Leo Sullivan commented that is seems most of the projects are at $25,000. Mr. Conway responded that most are either at that amount or at $12,500, and they typically don't like to get into the loans and have the $200 monthly payment. 5 G\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Janet Moore noted that the new, higher amounts would begin appearing soon due to the changes in the Home Improvement Program guidelines that were recently provided to the Housing Commission. Applications submitted after the new amounts were approved will follow the new guidelines. C. PALM VILLAGE APARTMENTS Bryce White stated that the work left outstanding by the general contractor has been completed up to the point of some remaining punchlist items. Numerous final inspections have been passed including public works, landscaping, planning, and the Fire Marshall. Once the punchlist items are completed, the final inspection from the building department will be obtained. Leo Sullivan asked when tenants could be expected to take occupancy. Mr. White stated that he is not certain when that will occur because it is a new project, and also due to the relationship with the Riverside Economic Development Agency. Some of those requirements still need to be worked out. Janet Moore stated that because this project received HOME funds, the County gets a fair amount of control. They can inspect the units, and ensure that our plans, processes, and outreach to prospective tenants are acceptable to them. The use of the City's 20 percent funds are not governed by HUD, but the HOME program tends to rely on HUD for their guidelines, which are extensive. Staff is diligently working with them to work out the issues. Mr. Sullivan asked if this affects the pipeline of tenants. Teresa Vakili replied that there are approximately 70 people on the waitlist for this property. They will work with the County guidelines on our outreach to prospective tenants. Mr. Sullivan asked about the outreach. Janet Moore stated that the County has certain requirements on outreach to all segments of the community. Staff does not see that there is any one segment of the population that would not apply and has submitted that to them. They are very task oriented and want to see how the process works. Justin McCarthy commented that the HOME commitment was made six or seven years ago, and the requirements may have risen during that period of time. As a point of information, we do a great deal of outreach. Janet Moore stated that information on all of our properties is sent out quarterly in English and Spanish to such organizations as the United Farm Workers, Western Center for Law and Poverty, and a notice is published monthly in a Spanish language newspaper. Mr. Sullivan asked what the County offers that we don't already do. Mr. McCarthy stated that it's Federal money and the County is only a conduit from HUD to the local level. We are trying to comply, or may look to renegotiate the terms. All options are being explored. G.\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Linda Ward asked if these processes were in place on all of the Housing Authority properties because she has never heard of it previously. Bryce White responded that it was only on Palm Village Apartments because of the $600,000 HOME grant that are Federal funds. This increased the cost of construction considerably, and his experience has shown that the County has added an extra layer beyond the HUD requirements for their own assurances. Leo Sullivan asked if there were some way to emphasize to whomever that because of accepting the $600,000, we have now spent whatever percentage more in trying to cover these issues. Justin McCarthy stated that having dealt with Federal funds over the years, this would not be a productive exercise. Where these types of funds are beneficial is where you get a large amount, or are able to fund an entire project. In the case of Palm Village, it is only about seven or eight percent of the total cost of the project. Bryce White commented that the project also doubled in size from inception. Mr. Sullivan asked if it would help if the Housing Commission tried to contact the County. Bryce said that he would work with the agreements that are in place that Janet Moore and Jessica Gonzales have been working on. 1) Administrative Plan (Janet) Janet Moore stated that there is now a draft of the Administrative Plan. There has been a desire on the part of staff to institute such a plan. Staff reviewed the existing policies and procedures and combined them into this document. The County required this type of plan for Palm Village Apartments. It is not yet determined when the plan will go to the City Council for review and approval. Each March a white paper process is undertaken as part of the budgeting process where new and existing programs are researched and presented. Any subsequent approval occurs in June. Leo Sullivan asked if that would delay renting out Palm Village until next June. Ms. Moore stated that they are reviewing this aspect with the City Manager. He may have the authority to present the plan to the County stating that he has reviewed and accepted the plan in draft form. Linda Ward asked if the anti -discrimination language in the plan should also include sexual orientation. Ms. Moore stated that the City attorneys had been specifically directed to review this language in the draft and was informed that what is in the plan is taken directly from the most current legislation on anti- discrimination. Ms. Moore stated that they would look into Ms. Ward's question further. Ms. Ward is concerned that someone may try to use the lack of this inclusion as a loophole. Justin McCarthy noted that there would only be a problem if someone were discriminated against. We are obliged to adhere to the fair housing laws. G.\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Natalie Russo noted that the verbiage in the draft plan is almost exactly what is included in her employer's fair lending and anti -discrimination disclosures. D. Phase II 20-Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Martin Alvarez reported that everything was moving along smoothly on both elements of this project. Phase 1 is complete, and Phase 2 and 3 are well underway. Phase 2 is approximately 80 percent complete with stucco being applied to the homes. Phase 3 is in the framing stage and is approximately 50 percent complete. The La Rocca Villas are substantially complete and walk- throughs are being conducted on some of the units. 27 of the 29 homes in Phase 1 have closed escrow. Leo Sullivan asked how long it would be until the La Rocca Villas would be occupied. Mr. Alvarez anticipates completion by the beginning of September. IX. ADJOURNMENT Janet Moore wanted to remind everyone that the September 12, 2007, meeting will be held in the Development Services Conference Room. Maps are available if needed. Ms. Moore also noted that the Housing Commission Agenda is being provided to staff via e-mail, and inquired if any of the Commissioners would be interested in receiving their Agenda information in that form as well as a packet. Ms. Moore did note that there might be some information such as the monthly newsletters that would not be sent via e-mail. The Agenda packets will still be physically sent out prior to the meeting date. In the event Commissioners wish to receive the Agenda via email, Ms Moore asked if the hard copy could be sent via regular mail rather than Federal Express. Leo Sullivan and Natalie Russo both requested to receive the Agenda via e-mail and send the packet regular mail. Ms. Ward does not have email and requested that her packet be sent via Federal Express. Justin McCarthy stated that there would be an upcoming meeting or study session to review a Palm Desert County Club proposal as it relates to Country Village Apartments. The participants may include members of the Housing Commission and City Council. Martin Alvarez will be handling the scheduling and may contact housing Commission members. If it is a study session, all members of the Housing Commission will be notified. G \RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 With members of the Housing Commission concurrence Vice -Chairman Leo Sullivan adjourned the meeting at 4:25 p.m. to September 12, 2007. Beth Longman, Actir( Rec ?dThg Secretary G:\RDA\Patty Leon\Housing Commission\Minutes\2007\8-8-07 Draft.doc