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HomeMy WebLinkAboutMinutes - Housing Commission 02/09/2011PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: MARCH 16, 2011 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held March 9, 2011 as follows: February 9, 2011 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director Rete►tied t•RIc:' BY HOUSG AUTH ON VERIFIED BY: k' Original on file with City Clerk's Office G \rda\Patty Leon\Housing Co,missiorkMtscellaneousl,Memos\Memos to City Clerk HC\HAC - Mtnutes doc CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES FEBRUARY 9, 2011 I. CALL TO ORDER Jane Turner, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Gene Colombini Donna Lewis Natalie Russo Wade Tucker Jane Turner 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 Spencer Knight, Landscape Manager III. ORAL COMMUNICATIONS Item A under New Business was moved out of order to allow Spencer Knight to discuss the Citywide Palm Tree Pruning Contract and attend to business. IV. CONSENT CALENDAR MINUTES of the Regular Housing Commission meeting of January 12, 2011. 1 Housing Commission Minutes February 9, 2011 With a Motion made by Commissioner Natalie Russo and seconded by Commissioner Gene Colombini the minutes of January 12, 2011 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS No reports B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS Jessica Gonzales summarized the memo provided to the Commission. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Average Weekly Activity Statistics for December. Janet Moore asked if the Commission had any concerns with the reports. At one point, the Monthly Occupancy Status Report was the only report provided to the Commission; however there are two additional reports included that provide the same information in different formats to review. Commissioner Natalie Russo stated that the Monthly Occupancy Status Report provides the history which is valuable and appreciates both reports. Teresa Vakili stated that all the reports provided are required to prepare the consolidated report and there was no problem on her behalf to continue in the same manner. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for December. Janet Moore reported that as of June of last year, over 80% of both multi -family and senior properties operated by the Housing Authority are occupied by families or households of very low income, which means they make Tess than 50% of the county median. Although a blend of very low and low is preferable in order to provide an opportunity to both income categories, the increase in the 2 Housing Commission Minutes February 9, 2011 lower categories has been from long term tenants having a decrease in their incomes due to the economic crisis. Commissioner Wade Tucker asked if the non agency developed units use the same figures as the Housing Authority properties. Mrs. Moore stated that one of the main responsibilities when qualifying someone is income which is described in the California Health and Safety Code as well as Title 25 (California Code of Regulations), which is referenced by both the non agency and Housing Authority properties. However, the only difference is the rent calculations; the Housing Authority calculate rents based on a 5% incremental value and the non agency units calculate rents based on a 30% area median income (AMI), 50% AMI, 60% AMI, 70% AMI, and 80% AMI. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for December. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report, stating that the day to day maintenance of the properties continues. Commissioner Wade Tucker mentioned that the paint from the carports at Las Serenas is peeling off. Mr. Conway stated he will address the carports. Janet Moore stated that the intent is not to paint over the carports or cool decks for this reason. She noted that new projects such as carports, cool decks installed at the properties are not painted over. Housing Commission reviewed the 2011 Residents' Survey flyer provided in the Housing Authority property newsletters. Janet Moore stated that every resident from the properties received a flyer regarding the online survey. The flyer will be distributed two more times to the residents. There has been interest from residents to mail the surveys and/or how to find the survey online. 3 Housing Commission Minutes February 9, 2011 VI. NEW BUSINESS [This item was discussed after the Consent Calendar] A. CITYWIDE PALM TREE PRUNING PROGRAM Spencer Knight stated that the Palm Tree Pruning Contract includes the same number of palm trees as last year's contract as well as the cost for the pruning. He mentioned that there are three types of palm trees in the pruning cycle, Washingtonian, Mexican Fan Palm, and California Date Palm that flower at different times of the year. The contract is extended for a longer period of time to allow the flower stalks to swell up before cutting them to avoid cutting them too soon and perhaps flower again. The broad leaf tree pruning contract will be presented at the next Housing Commission meeting. Mr. Knight mentioned that all trees are typically trimmed/pruned all at once. Janet Moore also mentioned that the pruning cycle is important for our swimming pools at the Housing Authority properties and special consideration is provided. Rec: By Minute Motion: Motion was made by Commissioner Natalie Russo and seconded by Commissioner Donna Lewis to forward the recommendation to the Housing Authority to award Contract No. C30450 for the Citywide Palm Tree Pruning Program to Andy's Landscape and Tree Service Inc. for the Housing Authority in the amount of $7,630.00 plus 10% contingency At this time, James Conway mentioned that Mr. Robert Nevares had concerns with the trimming at Catalina Gardens. Mr. Robert Nevares stated that the plants were recently trimmed to approximately 20" high and other shrubbery was trimmed to bare sticks as low as 6" from the ground. He displayed a stick that he cut from a trimmed plant and expressed concern for the safety of the residents. Mr. Conway stated that Catalina Gardens has very tight corridors, walkways with small planters on each side. He noted that most of the planters are full and the plants have grown together like hedges. For maintenance purposes, the landscape company is trying to keep it clean, free of debris and therefore the trimming was appropriately done. There 4 Housing Commission Minutes February 9, 2011 was consideration to remove every other one out to create more space between them but by trimming the way they did, they were able to reach their goal. Councilmember Liaison Jean Benson suggested Spencer Knight visit the property and assess the landscape. Mr. Conway stated that staff relies on the landscape department in terms of their expertise of pruning techniques. Mr. Nevares mentioned he has spoken to Sheila McGrew with the City's Landscape Department before and would like to speak to her again. He also brought up another concern with the irrigation sprinkler system. Spencer Knight offered to visit the property. He reiterated the narrow planters at Catalina Gardens, noting that the trimming procedure that was done is typical when you have plants that grow too tall and need to be brought down. Given that the property is a senior property, he noted Mr. Nevares concern from a safety issue. With regard to the irrigation sprinkler system, he mentioned it is a typical installation for watering and would be happy to inspect the sprinklers as well. B. REPLACEMENT RESERVE FUND Janet Moore stated that staff obtained a consultant to do a comprehensive reserve study at all of the Housing Authority properties. The report identified all of the assets at each property, their condition, and the life cycle, to include an anticipated expenditure over the next 30 years. There is a book of all of the reports available for viewing and will be filed in the City Clerk's office. A sample of one property was condensed and provided with the staff report. Given the Governor's proposal to eliminate Redevelopment, Mrs. Moore stated that staff met with the Director of Finance and determined to accept the suggested contributions to the reserve fund. Staff is recommending putting monies aside and reevaluating the properties in a year or 3 years. Upon question, Mrs. Moore stated that the City Council directed staff to do a comprehensive study of the Palm Desert Housing Authority properties which cost approximately $60,000 for the study. Councilmember Liaison Jean Benson inquired if putting these monies aside would affect the daily maintenance and operations of the properties. 5 Housing Commission Minutes February 9, 2011 Mrs. Moore stated that the daily operations of the properties would continue as usual as well as any replacements intended. The replacements that staff is recommending in this year's budget (2011- 2012) would come from this fund. Commissioner Jane Turner asked if this would secure the funds from the proposed budget cuts. Mrs. Moore stated that staff is hoping to take conservative actions by securing the funds. At this point, staff does not know the direction of the Governor's proposal. Commissioner Natalie Russo asked where the funds are located at this time. Mrs. Moore stated that the funds will be transferred to a reserve fund from the Housing Set Aside Fund. She explained that ten years ago a similar study was conducted by the same company which is how the replacements were determined at the properties. At that time, the consultant's recommendations were considerably high and the housing fund was significantly less than it is now. The Director of Finance was not comfortable with the recommendation and felt it might hamper the operations of the properties. Therefore, the Director reserved the entire fund balance to the low and moderate income housing fund for the purpose of maintaining the properties. Palm Village is partially funded by monies under the HUD HOME program. Based on the HOME program the Agency is required to set aside a reserve which consists of $150 a unit per year. Subsequent to asking the Council to allocate a reserve fund for the rest of the Housing Authority properties, discussion ensued on whether the $150 per unit was enough. At that time, staff was asked to seek a professional to do a replacement reserve study. Rec: By Minute Motion: Motion was made by Commissioner Gene Colombini and seconded by Commissioner Wade Tucker to forward the recommendation to the Housing Authority to 1) Authorize the Director of Finance to establish a Reserve Fund ("Fund") in the amount of $3,673,000 for the properties identified below operated by the Housing Authority; 2) Authorize the Director of Finance to make the first annual deposit based on the Association Reserves, Inc. (ARI) studies of $1,775,600 and annually deposit the ARI recommended amount for five years with a review of the Fund's use after three years; 3) Allow the use of the Fund in the event of a major disaster, for any expenditures that would be needed immediately in order to secure the properties until such time as additional aid could be obtained. (The Fund would be 6 Housing Commission Minutes February 9, 2011 replenished as monetary aid becomes available); and 4) Appropriate funds from the unobligated Housing Set -Aside fund for this purpose. 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, stating that there currently 5 projects in the construction phase and 11 in the application process. There should be more activity in the next report when invoices get processed. Commissioner Wade Tucker inquired on the mold at the Desert Rose home. Mr. Conway stated that the mold issue has been remediated and completed. The property is waiting for the turf conversion program from the Landscape Department. B. LIST OF DEVELOPER PROVIDED UNITS (JANET) The Commission reviewed the List of Non Agency Developed and Non Assisted Units. Janet Moore stated that the Agency did not assist these units but were a result of a density bonus and/or other affordable housing requirement. She noted that the total affordable units listed on the document show the affordable components only and not the number of units at such property. Upon question if these totals are included in the required stipulated numbers, Mrs. Moore replied yes as well as the Desert Rose and Falcon Crest homes, Habitat for Humanity, and other infill type of for -sale properties. C. MAP OF HOUSING UNIT LOCATIONS (JANET) The Commission reviewed the Map of Housing Unit Locations. Janet Moore stated that Jessica Gonzales and the IT Department organized the map that includes both Agency assisted and Developer provided units. 7 Housing Commission Minutes February 9, 2011 Commissioner Wade Tucker asked for clarification on the affordable units at the non -agency assisted developments. Mrs. Moore explained that the goal of affordable housing is to disburse units evenly within the community. She noted that the developments do not have a problem renting the income restricted units to affordable families and/or households. She provided an example of how the complex adjacent to Las Serenas is currently oversubscribed in affordable units. New language has been added to new agreements in the event units remain vacant for more than 90 days. The owner is able to rent those units at a set rent and time as set forth in the agreement. James Conway stated that when a project is undergoing the approval process with the Planning Department, they will determine how many units will be set aside for affordable housing depending on the size of the project. Commissioner Tucker asked about the rules and regulations at the properties. Janet Moore stated that there are certain sections of the Health and Safety Code and the California Code of Regulations (Title 25) that explain what can be included as income and how to calculate affordable rents. Within the Housing Authority guidelines, staff has itemized those regulations and included additional restrictions. One restriction mentioned was that an applicant cannot own real property within the last two years. Furthermore, any previous homeowners who have exceeded the 2 year restriction that holds any assets and proceeds from the sale of a home will be counted as 10% of income. In addition, deposits shown consistently on bank statements, whether the amounts fluctuate, will be considered income. Councilmember Liaison Jean Benson stated that she was on the phone prior to the Housing Commission meeting with a lady who was upset with a realtor. Mrs. Benson suggested she call the Board of Realty and asked if there were any other suggestions. Janet Moore suggested Fair Housing Council of Riverside County; staff provided that information to Councilmember Liaison Jean Benson. IX. NEXT MEETING DATE — MARCH 9, 2011 ADJOURNMENT Jane Turner Housing Commission Chair adjourned the Housing Commiss'o meeting at 4:25 p.m. (X a Patty Leon, Flecording Secretary 8