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HomeMy WebLinkAboutHousg Cmsn - 12/10/08PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: JANUARY 15, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held January 14, 2009: ➢ DECEMBER 10, 2008 Please submit to the Housing Authority Board. Thank you. Q-eCe Y HOUSG AUTH q-0 ( r ) I ON 1<a L7 VERIFIED BY: 20 / jr1 Original on file with City C erk's Offi (LL CITY OF PALM DESERT HOUSING COMMISSION MINUTES DECEMBER 10, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Donna Lewis Natalie Russo Leo Sullivan Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Patty Leon, Recording Secretary Guest(s): Veronica Tapia, Redevelopment Accountant Teresa Vakili, RPM Company Constance Ackryd, California Villas Tenant III. ORAL COMMUNICATIONS Verna Smith On behalf of the Mayor and City Council, Councilmember Liaison Richard Kelly, presented each member of the Housing Commission with a gift certificate to the McCallum Theatre and thanked them for their dedication and service. Mr. Kelly commented that he was elected as the second Vice -President of the Riverside County Transportation Commission. IV. CONSENT CALENDAR Housing Commission Minutes December 10, 2008 A. MINUTES of the Regular Housing Commission meeting of November 12, 2008. With a Motion made by Commissioner Russo and seconded by Commissioner Turner the minutes of November 12, 2008 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Leo Sullivan reported on the commemoration for former commissioner Linda Ward that took place earlier today at the Community Walk Rose Garden. Mr. Sullivan thanked staff for placing a tile in memory of Linda Ward at the Rose Garden. Mr. Sullivan addressed Ms. Constance Ackryd who was present as a guest. Ms. Ackryd commented that she had an interest in applying as a member of this Commission but due to conflicting schedules would not be able to fully commit. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for October. Teresa Vakili summarized the Weekly Activity Statistics stating that this new report replaces the Monthly Status Report. She stated that the report shows information from the first of the month to the last day of the month to coincide with Reports 1 and 2. She clarified line 31 Delinquent Balances, stating that this particular report reflects the billing schedules as of December 4, 2008 prior to posting rents and therefore it shows a significant balance. She stated that typically the report is generated at the end of the month and the billing cycle is scheduled at the beginning of the month. She further noted that if this report was acceptable to the Commission she would make sure to generate this report the last day of the month to show accurate numbers. 2 Housing Commission Minutes December 10, 2008 Leo Sullivan commented that he liked the new format, stating it showed a lot more information. Janet Moore agreed, stating it was much easier to understand. Mr. Sullivan suggested that both the Weekly Activity Statistics and Monthly Occupancy Status Report reflect on the Agenda as separate items. Wade Tucker asked if the font size of the property name could be changed, Ms. Vakili responded that a standardized template is used to generate the report by a licensed software program and therefore staff did not have access to change the formatting. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for October. Leo Sullivan referenced the report and asked if the font size could be changed or modified to legal size paper. RPM will modify the report. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Monthly Net Operating Income Statements for October. Leo Sullivan requested an update of the stipulated requirement and asked if we were meeting our goals. Janet Moore stated that the Agency has met the obligations of the stipulation required by 2006. The Agency has also met the additional requirement from the Regional Housing Needs Assessment (RHNA) of 1998 which was 229 affordable units. Staff is currently working on the new Regional Housing Needs Assessment (RHNA) numbers of 2711 units which have to be produced by 2014. She noted that approximately 90 units have been met towards the new requirement. Mrs. Moore provided an update on a recent senate bill in relation to an assembly bill that has given rise to a number of different issues and requirements with regard to the reduction of greenhouse gas emission. The bill requires aligning the RHNA planning process with the regional transportation planning process. Southern California Association of Governments (SCAG) has been tasked to revisit the RHNA needs as well as the regional transportation 3 Housing Commission Minutes December 10, 2008 plan. In order to achieve a reduction in vehicle miles driven in the State of California, SCAG will address ways to balance housing closer to jobs, retail and industry. SCAG is trying to get a postponement to address these issues which could possibly push the RHNA out a year or so. Upon question, Mrs. Moore stated that the stipulation prescribes that after the requirement has been completed, it is required to meet the RHNA needs. Councilmember Liaison Richard Kelly commented that a destination study conducted by CVAG shows that only 2% of the vehicle -miles traveled outside the valley for work, which means that a high percentage of workers stay in the valley and average 15 minutes or less of driving time. He noted that the City of Palm Desert continues to lead with regard to jobs housing balance. Mrs. Moore stated that we will continue to work towards the goals and how there might be legislation that may possibly adjust the RHNA numbers. Wade Tucker inquired on the concerns with regard to housing for casino employees. Mrs. Moore responded that due to a decline in home prices it alleviated most of their concerns. Mr. Kelly asked if there are rules for leasing or selling affordable housing to people who work or live in the City of Palm Desert. Mrs. Moore stated that Falcon Crest, our most recent development, established a criteria during open registration that provided certain points to families that worked or lived in Palm Desert; this allowed them to move to the top of the list. Applicants did not have to live or work in the City in order to qualify for the program. Mr. Kelly stated that he believed Palm Desert was the only City in California that is really doing something about jobs housing balance. Mr. Sullivan commented on the RHNA requirement of producing 2711 units within a six -year period and asked if the City had the capacity to accomplish those numbers given that the economy is not going to recover soon. Justin McCarthy stated that it is unlikely to accomplish those numbers. Approximately 25% may be accommodated through acquisition rehabilitation of existing units, which is the preferred strategy of the City. He provided a brief explanation of the slowdown received from tax increments which impact the revenues available to create those required units. He noted that the RHNA numbers were predicated on a different economy and growth projection. He 4 Housing Commission Minutes December 10, 2008 further noted that staff is continuing its efforts and being more creative in order to accomplish the RHNA goal. Mr. Kelly noted that the City of Palm Desert sold more houses this year than last year. He commented that he hated to hear that the economy will not recover and preferred to look at it from a positive attitude. The City Council approved $170,000,000 worth of building permits which shows that Palm Desert is not exactly having a terrible year and in fact was better than two years ago. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Martin Alvarez summarized the update. He provided an update on California Villas rehabilitation of Phase II, stating that the project is approximately 85% complete. The carports of the south parking lot are underway. The pool decking and administration area have been completely demolished and those improvements are progressing smoothly. The new addition of an 800 square foot service building encountered a small delay with respect to Southern California Edison (SCE) requesting additional requirements. Some of the meters originally planned to be installed on the side of the building will be relocated to comply with SCE. A request to extend the time to complete this part of the project will be presented to the Housing Commission at a later date. VI. NEW BUSINESS A. ELECTION OF OFFICERS With members of the Commission in concurrence, Verna Smith was nominated as Chair and Natalie Russo as Vice Chair. Natalie Russo accepted the office to which she was elected; Verna Smith was not present to accept. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to elect Verna Smith as Chairwoman and Natalie Russo as Vice Chair commencing January 2009 for a term of one year; pending Verna Smith's acceptance to office. 5 Housing Commission Minutes December 10, 2008 B. RPM Agreement for Property Management Services Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward a recommendation to the Palm Desert Housing Authority Board to enter into a contract with RPM Company to provide property management services to the Housing Authority properties. Janet Moore summarized the staff report stating the majority of the changes to the contract were clarifications to the Administrative Policy, approved by this Commission last year. Staff is also recommending no increase in the management fee for the time period of this contract. A comparison study of management fees to similar services for affordable properties in the area showed that the fees are in line. She commented on the difference in RPM's management staff and that they are local and able to provide full tenant support which appears to be unusual in affordable property management. The property managers interact face-to-face with a tenant during income qualification and recertification. Las Serenas property manager was mentioned as exemplary management services to the tenants. Mrs. Moore mentioned the Thanksgiving dinner event hosted by Las Serenas that served 55 dinners to residents. Among the helpers were Janet Moore, Patty Leon, Teresa Vakili and Las Serenas' staff. She commented that staff was not recommending an increase because of the service provided but a recognition that we are in line with other management fees similar to affordable properties in the area. She emphasized how the consistency of RPM's management staff has really helped our tenant population. Upon question, Janet Moore stated that the contract is for a two-year period as opposed to five years as previously done, in order to comply with the existing tax laws applicable to the bond issues used to purchase the properties. Councilmember Richard Kelly asked that staff clarify the recommendation at the City Council meeting that there will not be an increase to the proposed management fee. C. Mid -Year 2008/2009 Budget Adjustment Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to the Finance Director 6 Housing Commission Minutes December 10, 2008 to request mid -year budget adjustments resulting in no increases or decreases for the Housing Authority properties. Veronica Tapia reviewed the summary, stating a zero net gain/loss in the total adjustments. She highlighted the adjustments necessary at Laguna Palms, Catalina Gardens, California Villas and Taos Palms. D. 2009 Consultants Master List Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward a recommendation to the Housing Authority Board; 1) Approve the 2009 Master Consultants list; 2) Authorize staff to negotiate agreements and contract amendments with qualified consultants listed, and City Manager/Executive Director to execute same; and 3) Approve the proceedings for selection and award of contracts as set forth in the report authorized by Section 3.32.090 of the Palm Desert Municipal Code. Martin Alvarez reviewed the staff report stating that there are 45 new approved consultants. Jane Turner inquired on the maintenance service at the Housing Authority properties. Janet Moore stated that a vendor list is in place for the Housing Authority properties. The vendor list will be presented to the Housing Commission after the fiscal year-end (June 30, 2009). VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for December. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 7 Housing Commission Minutes December 10, 2008 Janet Moore stated that the HIP program is increasing its capacity. There are currently 14 new applications in review. Applications from manufactured home parks have increased as well. She stated that payoffs from refinances or home sales have declined due to the economy, with resulted in utilizing the Agency's 20% set aside to fund the program. IX. NEXT MEETING DATE — JANUARY 14, 2009 A. SCHEDULE OF HOUSING COMMISSION MEETING DATES FOR 2009 A memo was provided to the Commission listing the Housing Commission meetings scheduled for 2009. Janet Moore stated that the meeting of October 14 occurs after the regularly scheduled City Council meeting and in order to accommodate actions required by the Commission on the Housing Authority agenda, staff is requesting that the Commission adjourn the September meeting to October 7tn With regard to the meeting on Veteran's Day, Mrs. Moore noted that it would be better to wait to schedule the November meeting closer to that time to coincide with the Council's meeting date since they only meet once. Councilmember Liaison Richard Kelly stated that he did not think the City Council would move the November meeting. He noted that everyone including the citizens expect to attend a Council meeting on the second Thursday of every month. He commented that he is opposed to a change of date for the November Council meeting. Janet Moore suggested changing the Housing Commission meeting to Tuesday, November 10, 2008 to accommodate actions required by the Commission on the Housing Authority agenda. A decision will be made closer to that meeting date. At this time, Leo Sullivan thanked the Commission and Staff for his involvement as Chairman of this Commission. ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commiss'on Chair, adjourned the meeting at 4:16 p.m. Patty Leon, ecording Secretary 8