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HomeMy WebLinkAboutHousing Cmsn - 02-13-2013CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES FEBRUARY 13, 2013 I. CALL TO ORDER Robert Nevares, Housing Commission Chair, convened the meeting at 3:30 p.m II. ROLL CALL Present: Absent: Robert Nevares, Chair Natalie Russo Jane Turner Wade Tucker Others Present: Jean Benson, Councilmember Janet Moore, Director of Housing Jessica Gonzales, Management Analyst - Housing Teresa Vakili, RPM Company Patty Leon, Recording Secretary Veronica Tapia, Accountant II III. ORAL COMMUNICATIONS IV. APPROVAL OF MINUTES MINUTES of the Regular Housing Commission meeting of January 9, 2013: Commissioner Jane Turner moved, by Minute Motion, to continue the minutes of the January 9, 2013, meeting to the next meeting of March 13, 2013. Motion was seconded by Commissioner Natalie Russo and passed 4-0. 1 Housing Commission Minutes FEBRUARY 13, 2013 V. NEW BUSINESS A. Palm Desert Housing Authority proposed 2012-2013 Mid Year Budget Adjustments. Janet Moore explained that in 2009 a reserve study of all the Housing Authority rental complexes was conducted that identified everything that needed to be replaced or repaired within a 30-year period. A recommendation was made with respect to how much money should be deposited into a replacement reserve fund as well as anticipated needs of what should be replaced or repaired annually. As part of the dissolution of redevelopment, a payment schedule was submitted to the State that showed the funding required for the purpose of repairing and keeping the complexes up to date; the State approved the transfer. Therefore, the midyear budget is being adjusted to include the amount of suggested replacements for the 2012-2013 year. The budget proposed for 2013-2014 include the replacement reserve funds. Commissioner Robert Nevares questioned if the amounts were projected figures and then held in reserves; Mrs. Moore replied yes. Commissioner Natalie Russo asked if the funds from one property may be used at another property. Mrs. Moore replied, yes and further clarified that those funds may be used for any items that are on the list for deferred repairs and/or replacement. In addition, those funds may be used in the event of a disaster. She noted that staff will be addressing the chain -link fence located on the west side of One Quail Place that is in need of repairs due to the unexpected winds; those funds may be used for that purpose. Commissioner Russo asked if the repairs and/or replacement items suggested for 2010 were addressed. Mrs. Moore stated that the reserve study was done in 2009 and in 2010 repairs and replacements were being addressed; however, in 2011 and 2012 there were no monies allocated due to the dissolution of redevelopment. Upon question of how much money was previously allocated for replacements, Veronica Tapia responded 10 million dollars. Mrs. Moore reported that an audit is currently being conducted by the State Controllers Department. If the State feels some of the transfers or expenditures are not appropriate they will let us know and we will no longer be able to utilize those funds for those purposes. 2 Housing Commission Minutes FEBRUARY 13, 2013 Commissioner Jane Turner referenced the first page of the summary and questioned the similarity of amounts required for One Quail Place and Las Serenas; given that One Quail has more units. Mrs. Tapia stated that One Quail Place deposited collectively between 2010, 11 and 12 three million dollars, so this year's allocation was less. Mrs. Moore reiterated that in the event those funds in reserves have to be remitted to the State, the properties will no longer be able to complete those types of repairs and expenditures due to the lack of funds. At this time, staff is working on emergencies and urgent needs. Commissioner Jane Turner moved, by Minute Motion, to forward a recommendation to the Finance Director to add the 2012-2013 mid- year adjustments to be presented to the Housing Authority Board for approval at a future meeting. Motion was seconded by Commissioner Wade Tucker and passed 4-0. B. Palm Desert Housing Authority Proposed 2013-2014 Budget A revised proposed budget for 2013-2014 was distributed to the Commission. Veronica Tapia noted that there was a discrepancy with the amount of the replacement reserve; highlighted on the revised memo for Commission's review. She referenced the budget's comparison page that show the totals for all properties and explained each line item. Councilmember Liaison Jean Benson referenced Candlewood's summary and asked why the rental income had gone down from last year's budget. Janet Moore stated that the amounts under Total Rental Income are anticipated amounts based on December's estimate of what the rental revenue would be. In the past, rental rates were much higher but there was a significant reduction in revenue due to tenants' incomes going down. Commissioner Natalie Russo commented that the request for next year's budget such as payroll, repairs and maintenance are the same as the current year but the expected actual for 2012-13 is less than what was budgeted. Teresa Vakili responded that several employees were out on leave and are expected to return full time. She noted that the payroll budget is based on actual figures of allocated employees. Mrs. Moore added that the 3 Housing Commission Minutes FEBRUARY 13, 2013 payroll amounts include allocated positions and therefore can't under budget. She reminded the Commission that last year there were no replacement reserve monies and emergency repairs were being done such as the HVAC systems from the Repairs and Maintenance line and not Replacement Funds. The actual numbers from last year were adjusted to remove the costs of the HVAC systems since they will be charged to the Replacement Fund with the approval of the mid -year adjustment earlier on your agenda. Commissioner Jane Turner inquired on the increase in contracted services. Mrs. Moore stated that the existing landscape maintenance contract exceeded what was previously budgeted. Commissioner Natalie Russo moved, by Minute Motion, to forward a recommendation to the Finance Director to include the 2013-2014 Palm Desert Housing Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Financial Plan for 2013-2014 to be presented to the housing authority board for approval at a future meeting. Motion was seconded by Commissioner Wade Tucker and passed 4-0. VI. CONTINUED BUSINESS VII. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore updated the Commission with regard to a hearing at the State assembly level to discuss concerns and issues raised by the dissolution of redevelopment. She noted that every city is having the same problems. She provided an example of a city that had enforceable obligations that date back many years for their agency and were told no by the Department of Finance. The City of Palm Desert remitted 12.8 million dollars in housing funds to the State. There may be an additional 8 million in funds that may potentially go back to the State from redevelopment funds unless the State requests more; a final number has not been determined. Cities were discouraged with the "meet and confer" sessions as they felt were established as a fact finding mission or document collection without a resolution. One of the obligations rejected by the Department of Finance was 4 Housing Commission Minutes FEBRUARY 13, 2013 the Indian Springs Mobilehome Park settlement to assist low and very low income tenants to purchase their lots. The State said "No" and we were not able to reserve the money for the settlement. Currently, the State has 58 lawsuits filed against them by different cities and counties. Commissioner Jane Turner asked about the legislatures. Ms. Moore stated that it was anticipated there would be a vehicle for affordable housing when AB 26 and 1484 were adopted but it doesn't appear to be the case. She noted it was beneficial to hear it wasn't the legislators intentions to halt projects. Upon question, Mrs. Moore stated that of the lawsuits that have been resolved, the Department of Finance did not answer whether they were in favor of the city or Department of Finance. The City of Palm Desert tried to give the State land for UCR and they are still saying "No". Commissioner Natalie Russo inquired on the funds that were given back to the taxing entities. Mrs. Moore stated those funds were given to the counties to disburse to the taxing entities. B. SUMMARY OF CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS Janet Moore summarized the staff report attached to the memo provided to the Commission for review. A request for approval of the proposed sale of property located at 74537 King Fisher Circle, will be presented to the Housing Authority at their next meeting. Commissioner Jane Turner questioned why Health and Safety Codes were being referenced in the report. Mrs. Moore replied that redevelopment agencies were established under the Health and Safety State Laws since agencies were created to eliminate blighted areas. Councilmember Liaison Jean Benson asked if the property was being sold due to an ad in the newspaper. Mrs. Moore responded that there were no ads in the paper with regard to the sale of this home. A potential buyer was actually interested in a different home and the owner decided not to sell. The buyer was then placed on the interest list and selected for this property. Mrs. Moore stated that recently there has been a significant interest at both Desert Rose and Falcon Crest communities. There are approximately 14 applicants on the interest list at time. She also commented that our goal is to be able to sell homes in inventory very soon with the exception of two that are in very bad condition. Currently, the Authority owns 17 homes. 5 Housing Commission Minutes FEBRUARY 13, 2013 C. MONTHLY OCCUPANCY STATUS REPORT The Commission reviewed the Monthly Occupancy Status Report for December. D. REPORT #1 — MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT FOR DECEMBER The Commission reviewed the Monthly Occupancy and Average Rent Statement for December. Upon question, Jessica Gonzales stated that the income limits are published by the Department of Housing and Urban Development (HUD) and then adopted by the Department of Housing and Community Development (HCD). The Housing Authority will use HCD's income limits once they are published which is anticipated in March. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS FOR DECEMBER The Commission reviewed the Monthly Net Operating Income Statements for December. F. HOUSING AUTHORITY PROPERTIES UPDATE The Commission reviewed the update for January. Teresa Vakili summarized the report. G. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore stated that the new report includes all applicants that have either canceled or did not qualify for the program. Those applicants that canceled did not want a lien against their property. There are more applications coming in than projects at this time. 6 Housing Commission Minutes FEBRUARY 13, 2013 IX. NEXT MEETING DATE — March 13, 2013 At this time Janet Moore reported that a staff report with regard to the revised rent setting policy will be provided to this Commission at the next meeting. X. ADJOURNMENT With Commission concurrence the meeting was adjourned at 4:48 p.m. to March 13, 2013. Patty Leon, Recording Secretary 7