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HomeMy WebLinkAboutHousing Cmsn - 09/08/2010PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: OCTOBER 14, 2010 SUBJECT: HOUSING COMMISSION MINUTES Attached are the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held October 13, 2010 as follows: ➢ September 8, 2010 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director k"CPI(Pe-t-rde BY HOUSG AUTH C !� C ON /C% - J c� VERIFIED BY:. Original on file with City Clerk's Office G \rdaTatty Leon\Housing CommissioriMiscellaneousiMemos\Memos to City Clerk HC\HAC - Minutes doc CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES SEPTEMBER 8, 2010 I. CALL TO ORDER Natalie Russo, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Gene Colombini Jane Turner Donna Lewis Natalie Russo Wade Tucker Also Present: Jean Benson, Councilmember Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Robert Nevares, Catalina Gardens resident III. ORAL COMMUNICATIONS Janet Moore introduced Councilmember Jean Benson who will be serving as Housing Commission Liaison in place of Mr. Dick Kelly. Councilmember Liaison Benson stated that she served on the Housing Commission for years prior to the appointment of Mr. Kelly. Mr. Robert Nevares was present as a potential Housing Commissioner. 1 Housing Commission Minutes September 8, 2010 IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of June 9, 2010. With a Motion made by Commissioner Tucker and seconded by Commissioner Colombini the minutes of June 9, 2010 were unanimously approved with Commissioner Russo abstaining. MINUTES of the Regular Housing Commission meeting of July 7, 2010. With a Motion made by Commissioner Tucker and seconded by Commissioner Colombini the minutes of July 7, 2010 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore stated that Commission Reports reflect updates provided by the Housing Ad Hoc sub -committee that was created for the purpose of reviewing Carlos Ortega Villas' project. The next upcoming meeting is expected to be held in October. Both Councilmembers Mr. Kelly and Ms. Benson were part of the sub -committee. Natalie Russo has expressed interest in filling a vacancy in the sub -committee. A motion was made by Commissioner Lewis and seconded by Commissioner Tucker to appoint Natalie Russo to the Housing Ad Hoc sub -committee for Carlos Ortega Villas. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS Jessica Gonzales summarized the memo provided to the Commission. Mrs. Gonzales stated that the subject property listed on the memo for Council review is known as Sagecrest Apartments. Given that it is an Agency action, a vote is not required from this Commission. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for June and July. 2 Housing Commission Minutes September 8, 2010 Teresa Vakili provided a current update and stated that 5 of the 13 communities are 100% occupied including One Quail Place which is the largest rental property. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for June and July. Janet Moore stated that the income levels at the Housing Authority properties may fluctuate based on the market; at this time the rental rates are fairly consistent with other market rental properties. Mrs. Moore referenced the reports and commented that there is a significantly high percentage of very low in the Housing Authority properties; 75% are occupied by families earning Tess than 50% of the Area Median Income (AMI). Currently the AMI for 2010 is $65,000 for a family of 4. There are many tenants whose rents were lowered based on the current income limits. Commissioner Tucker asked if the properties will continue this rate for more years. Mrs. Moore stated that the general housing market is being affected as well. Tenants in our higher income levels are looking at homeownership opportunities as well. Mr. Tucker inquired on the status of Carlos Ortega Villas. Mrs. Moore stated that the project is under contract with an architect who is in the process of working with the concept to establish the plans. The project is continuing its efforts; there are timeframes that must be met by the architect as well as percentages of completion dates. Staff will provide the Housing Commission with an update after meeting with the subcommittee. Commissioner Lewis complimented RPM Company on a great job of maintaining a high occupancy rate considering the economy crisis. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for June and July. Janet Moore stated that the State of California was late this year getting the income limits to the cities. In the past, the income levels were provided anywhere from February to April; however, this year they didn't come out till the end of June. Tenants have to be notified at least 60 days prior to change in 3 Housing Commission Minutes September 8, 2010 their rental rates and in some cases a 90-day notice is required if the rent will increase. This report does not reflect all the new rental rates since recertifications are done throughout the year. Mrs. Moore also stated that a rent survey is conducted every other year with respect to the maximum rent based on what the market entails, in order to maintain consistency. A survey was conducted in March of this year and found that actual market rents had gone down which resulted in a decrease in our rental rates. Currently our maximum rents are below the lower income category averaging at the 65% income level. Most tenants who make 100% of the AMI can afford to go anywhere which is the reason the reports show an increase in the very low. Commissioner Tucker asked about the maximum income to qualify for the program. Mrs. Moore stated that the current maximum rent is set at 65% however applicants cannot exceed 120% of the AMI in order to qualify for the program. Given that most market rental properties are offering many incentives including free rent, etc., there is minimal interest in our properties by higher income households. Chair Russo compared the June and July report and asked if there was a timing issue with respect to the figures. Mrs. Moore responded yes from either accruals or payments that were paid from the previous month. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Chair Russo inquired on the total number of service requests being high. Mr. Conway responded that that number was typical at the properties. Councilmember Liaison Jean Benson referenced One Quail Place and inquired on the 170 service requests. Mr. Conway responded that the calls are minor repairs such as a garbage disposal and in fact was a typical number for One Quail Place considering it is our largest property. 4 Housing Commission Minutes September 8, 2010 Ms. Benson asked if annual inspections were conducted at the beginning of the year to ensure everything is in working order. Janet Moore stated that we go in twice a year and at that time smoke detector batteries and AC filters are replaced. Ms. Benson inquired on ways to reduce service requests since most properties are older. Teresa Vakili stated that most tenants will run their AC units very low in the summertime and freeze the unit. Most service calls are repeat services to show tenants how different things work. Mrs. Moore asked Teresa Vakili with RPM Company if a tally can be prepared of service calls explaining the types of requests being made. Commissioner Lewis commented that she appreciated tenants calling RPM rather than fixing a repair themselves. Mr. Conway added that staff provides educational handouts with regard to suggestions on what temperatures to keep AC units during certain times of the year. He reported AC units that were in need of replacement at California Villas due to tenants wearing them out; both AC units were under warranty. G. Palm Desert Housing Authority Tenant Survey A copy of the 2009 Residents' Survey and Results were provided to the Housing Commission as informational. The budget for this fiscal year was carefully considered in terms of cost effective items that would benefit the properties. In the past, surveys were mailed to every tenant which cost approximately $600 to $800 to mail the survey and only 30% were returned. Based on this, staff did a pilot program this year and offered the survey online as well as offered to mail a survey upon request. This year 41 surveys were returned to include mail out versions. Staff is working on ideas to better promote the surveys for the next year. It was noted that several of the properties have Internet access, besides the public library. The surveys are used for several criterias such as tenants' perspective of RPM and certain programs implemented. Mrs. Moore noted that in most cases it's human nature to mail a survey back when someone is upset. On the contrary, when someone has no complaints they ignore the survey. It is difficult to get an accurate response solely from surveys. Mrs. Moore noted that this is the same survey that is sent out every year. She referenced the results and mentioned that the percentages were very similar to last year considering only 41 5 Housing Commission Minutes September 8, 2010 responded. RPM is not looking for a contract increase but the survey was brought to the Housing Commission to show the information presented to the tenants and the responses received; overall the results were favorable. Commissioner Tucker inquired if tenants knew that a survey was being conducted. He commented that in the past when surveys were mailed everyone was aware. He asked if there was some other way to get the surveys out. Mrs. Moore stated that there was a notice sent to every tenant with respect to the online survey. RPM normally does not get involved in the process however this year RPM assisted with inserting the flyers in the newsletters. Mr. Tucker addressed Mr. Robert Nevares and asked him if he had received a survey; Mr. Nevares replied no. A copy of the flyer was provided at this time. Mrs. Moore stated that staff will work on ways to ensure every tenant is made aware of the survey next year. Commissioner Colombini commented that those who did respond were in favor of RPM and complimented RPM. Chair Russo inquired if tenants travel during this time of the year and perhaps staff should send out the surveys at a different time. Mrs. Moore stated that the survey was available from April to the end of June. Ms. Russo commented that she has been involved with surveys in the past and found these numbers satisfactory. Councilmember Liaison Jean Benson inquired if the properties provided monthly notices/reminders of when the rents are due. She asked if property managers would be able to provide a notice of the survey when tenants pay their rent. Mrs. Moore replied that the properties do not send monthly notices regarding. As part of the lease, tenants know to pay their rent by the fifth of the month. Mrs. Moore stated that the notices of the survey can be given to the tenants at that time also. VI. NEW BUSINESS A. RPM AGREEMENT FOR PROPERTY MANAGEMENT SERVICES 6 Housing Commission Minutes September 8, 2010 Janet Moore stated that a correction was made to the second page of the original staff report to reflect October 1, 2010 as the effective date. The current contract requires that at least 90 days prior to the expiration of the contract, RPM and the Housing Authority enter into a good faith negotiations to determine contract renewal. The president of RPM Company has submitted a letter to extend the contract from January 1, 2011 to December 31, 2012 at no increase in fees. RPM Company has managed the properties since the Agency acquired the properties from the County. At the end of the upcoming contract term RPM will not have increased their fees in five years. Commission expressed that RPM is doing a great job. Motion was made by Commissioner Tucker and seconded by Commissioner Colombini to approve the First Amendment to the Agreement for Property Management Services with Ray, Douglas, Ann and Patrick, Inc. a.k.a. RPM Company effective October 1, 2010 at no increase in fees for the term January 1, 2011 to December 31, 2012. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report and mentioned that the report was modified to reflect the current fiscal year 10-11; 09-10 was excluded. Currently there are 18 applicants in various stages; 5 in construction; 4 applicants have been assigned to the consultant; and 9 are in the application stages. He noted that the program is extremely busy. Janet Moore reported that last year was a record breaking year for the HIP. There was more activity last year than its origination in 1987. Twenty-seven applications were received in the first half of last year and only an average of 17 - 20 was received in the past for the entire year. Mr. Conway noted that besides more assignments, the projects got bigger, given that the limits were increased. He commented that it has made a significant difference in the neighborhoods. Mrs. Moore added that over 70% of the request fulfilled included energy efficiencies and/or conservation of a natural resources; a goal of the City. 7 Housing Commission Minutes September 8, 2010 Commissioner Tucker asked on the percentage of applicants that are accepted and declined. Mrs. Moore responded that 85% to 90% of applications are accepted. There was a recent audit wherein a staff member was not aware she was speaking with an auditor from Community Development Block Grant program. The auditor was very pleased with the information provided with regard to the HIP. Councilmember Liaison Jean Benson stated that she had recently passed through Portola Palms Mobilehome Park and noticed several homes in despair and thought of calling Code Enforcement. Mr. Conway stated that staff works closely with Code regarding homes that are in violation and/or require immediate attention. Code Officers have HIP applications in the event they feel a homeowner meet our guidelines. The number of requests for mobile homes has increased. Ms. Benson commented that she was not aware the City assisted mobile homes until a neighboring resident mentioned that the City of Palm Desert had paid for the repairs to their mobile home. Mr. Conway stated that he would address this concern with Code Enforcement and have them take some HIP packets. He noted that the program has been very busy and therefore limited advertising is done. However in the case of code enforcement issues staff likes to address those immediately. Mr. Tucker asked if the Portola Palms Mobilehome owners own the land. Mrs. Moore replied in the affirmative, however, there is one (1) lot in that development that the Agency owns. IX. NEXT MEETING DATE — October 13, 2010 ADJOURNMENT Natalie Russo, Housing Commission Chair, adjourned the Housing Commission meeting at 4:17 p.m. Patty Leo , Recording Secretary 8