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HomeMy WebLinkAboutMinutes - Housing Commission 07/13/2011PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: SEPTEMBER 8, 2011 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the adjourned regular Housing`Commission meeting held September 7, 2011 as follows: ➢ July 13, 2011 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director G-\rda\Patty Leon -lousing Commissiod,Miscellaneous\Memos\Memos to City Clerk HC\HAC - Minutes doc � BY HOUSG AUTH Dt'I L -c) CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES J U LY 13, 2011 I. CALL TO ORDER Jane Turner, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Gene Colombini Donna Lewis Robert Nevares Natalie Russo Wade Tucker Also Present: Robert A. Spiegel, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Veronica Tapia, Redevelopment Accountant Members Absent: III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR MINUTES of the Regular Housing Commission meeting of June 8, 2011: With a 'Motion made by Commissioner Natalie Russo and seconded by Commissioner Gene Colombini the minutes of June 8, 2011 were unanimously approved. 1 Housing Commission Minutes July 13, 2011 V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore introduced Councilmember Robert Spiegel who was present in Councilmember Liaison Jean Benson's absence. Mrs. Moore stated that there have been significant adjustments in the state budget recently. There were two bills approved as part of the budget related to redevelopment: AB 26, which dissolves all redevelopment agencies in California and prohibits agencies from entering into any agreements, making modifications to existing agreements and/or awarding any new contracts; and AB 27, referred to as the Voluntary Act, which basically says we can continue to operate our redevelopment agency as long as we pay a certain amount of money to the State. Ms. Tapia presented and summarized the two bills to the Commission. Justin McCarthy elaborated on AB 26 which prohibits agencies from entering into contracts and stated that agency owned properties may not enter into new leases and/or renew existing leases. Property Managers were directed to enter into a month -to -month lease on a renewal basis. With respect to the for -sale program, agencies are also prohibited from entering into any purchase sale or loan agreements. He further noted that this issue has impacted our residents who have complained to both the City and local representatives. Councilmember Liaison Robert Spiegel asked if this matter was being challenged by the California Redevelopment Association (CRA). Mr. McCarthy responded that a lawsuit is pending. There are a number of constitutional issues that are in violation to include Prop 22 which was approved by the public in November. Commissioner Robert Nevares inquired if notices would be sent out to the tenants regarding this matter. Mr. McCarthy responded that communication to the Housing Authority tenants is pending. It was explained that the City Council will go dark in August due to summer schedules and therefore the next Council meeting will be August 25, 2011. We are hoping to know more by then so the Council will have a better understanding in which direction to proceed. Mrs. Moore stated that the Home Improvement Program, Home Buyer's Assistance Program and the Acquisition, Rehab Resale Program as well as 2 Housing Commission Minutes July 13, 2011 Self Help are impacted by the legislation. She noted that the Agency has a clause in all of the restrictive covenants wherein the Agency has the first right of refusal to purchase back homes within our communities. A wait list of only 2 people is in place, which has resulted in the Agency acquiring most of the for sale properties. Currently, the Agency owns 9 properties at Falcon Crest and 4 at Desert Rose that are impacted by these bills since we are unable to sell them. In addition, the Agency is prohibited from buying any homes at this time. With regard to the Home Improvement Program, there are homeowners who are under contract that will be able to commence and complete their project. However, homeowners who are in the application stage and/or work write-up stage that have not signed a contract are placed on hold. Councilmember Liaison Spiegel asked on the affect of Carlos Ortega Villas project. Mrs. Moore stated that Carlos Ortega Villas is funded by bond proceeds. Staff anticipates that, in the event RDA is dissolved, the oversight board would see the benefit of that project and proceed. She noted that affordable housing, specifically for seniors, is considered a benefit to the State. Mr. McCarthy also added that the contract for design purposes at Carlos Ortega Villas would be considered an enforceable obligation and therefore that is currently proceeding. Under the current situation, the Agency may not enter into a construction contract or development contract until this matter is resolved. Upon question, Mrs. Moore stated that there are items to complete with Carlos Ortega Villas design, so we will continue to move forward with the contact as expected. Upon discussion of maintaining the Housing Authority properties, Mrs. Moore stated that the properties are even in terms of revenues meet expenditures. The only concern is the renewal of leases and entering into new leases. The properties will continue to operate as usual. In the past, the Agency knew that the Housing Authority properties would bear the burden on the very low and low income households in Palm Desert and developer projects or for -sale projects would work to bear the burden of the high end of low and moderate income households. It's the Agency's obligation to provide affordable housing with the 20% of tax increment we receive. If those funds are ceased, the obligation to provide affordable housing does not go away. Furthermore, because the Agency has used their resources wisely the State is coming after the Agency's cash. Capital improvements will slow down at the properties. 3 Housing Commission Minutes July 13, 2011 It was explained that approximately 400 agencies across the State of California are affected by these bills. Councilmember Liaison Spiegel inquired on the Facade Enhancement Program (FEP). Mr. McCarthy responded that the FEP is funded by the general fund, however there is indirect support from the Redevelopment Agency and may be impacted as well. At this time, Janet Moore updated the Commission on the income limits for 2011. Agency received the income limits on June 28th from the State, however were pulled back due to modifications from the State. Rental rates at the Housing Authority properties change effective July 1st. Once those income limits are finalized, staff will provide a copy to the Commission. B. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Average Weekly Activity Statistics for May. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for May. Janet Moore stated that the reports show a significant number of our units are in the very low category which is under 50% of the county median; 800 out of 1100 units are below 50% of the county median. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for May. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. 4 Housing Commission Minutes July 13, 2011 Commissioner Wade Tucker referenced the report and asked on the kitchen and vanity countertops being re -glazed at Las Serenas. Teresa • Vakili explained that it is a resurfacing method to the existing countertops in lieu of replacing them which is cost effective. VI. NEW BUSINESS A. COINMACH CORPORATION Janet Moore reviewed the staff report and stated that this request is to service both California Villas and Las Serenas. This proposal is from a different company than the rest of the properties; however it is the existing company currently servicing these two properties. Commissioner Wade Tucker commented on the concern of senior tenants putting clothes in a front loader and the different soaps to use. Mrs. Moore stated negotiations for risers are being considered at Las Serenas. The vendor will provide samples of soaps; high efficiency soaps are being recommended for front loaders. Teresa Vakili commented that the other properties with front loaders have expressed positive compliments and how it cleans the clothes better. With regard to the cost for a wash, Mrs. Moore stated that they are very consistent with the current rates tenants are charged. Motion was made by Commissioner Natalie Russo and seconded by Commissioner Donna Lewis to forward the recommendation to the Housing Authority to approve a modified lease agreement with Coinmach Corporation in order to provide laundry services to certain Housing Authority properties. 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. 5 Housing Commission Minutes July 13, 2011 Janet Moore stating that the HIP program will continue with those projects that have been approved and have executed loan documents as of June 29. Given that new applications take a long time to obtain the required documentation, staff is placing those interested on a waiting list. However, at this time the HIP is on hold. Commissioner Jane Turner inquired on the financial difficulties from the consultant for the HIP. Mrs. Moore stated that Rancho Housing Alliance does not receive the program income to facilitate this program for Palm Desert. They are paid for services and that's it. Their contract expired on June 30th, 2011 and the Agency was not able to renew their contract due to the legislation. Until further direction, Rancho is required to complete those existing participants that already had signed contracts based on their agreement. IX. NEXT MEETING DATE - September 7, 2011 (regularly scheduled meeting of August 10, 2011 was canceled by action of the Housing Commission on January 12th, 2011) ADJOURNMENT Jane Turner, Housing Commission Chair, adjourned the Housing Commission meeting at 4:15 p.m. to 3:30 p.m., September 7, 2010. Patty Leon, R ording Secretary 6