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HomeMy WebLinkAboutHousing Cmsn - 03-12-2014PALM DESERT HOUSING AUTHORITY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: APRIL 15, 2014 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held April 9, 2014 as follows: (x) March 12, 2014 Please submit to the Housing Authority Board. Thank you. 72e6oitri J7ttY HOUSG AUTH \/ R F i D Original on File with City Clerk's Offic€ G.\HOUSING\Patty Leon\Housing Commission\Miscellaneous\Memos\Memos to City Clerk HC\I-IAC - Minutes doc CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES MARCH 12, 2014 I. CALL TO ORDER Natalie Russo, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Absent: Natalie Russo - Chair Gregory Ballard Mike Lewis Robert Nevares Jane Turner Wade Tucker Arlene "Joy" Whitehurst Others Present: Jean Benson, Councilmember Liaison John Wohlmuth, Executive Director Janet Moore, Director of Housing Jessica Gonzales, Management Analyst Teresa Vakili, RPM Company Patty Leon, Recording Secretary Veronica Tapia, Management Analyst ll Spencer Knight, Landscape Manager III. ORAL COMMUNICATIONS Newly appointed Commissioners Gregory Ballard, Arlene "Joy" Whitehurst, and Mike Lewis introduced themselves to the Commission. IV. APPROVAL OF MINUTES MINUTES of the Regular Housing Commission meeting of January 8, 2014: 1 Housing Commission Minutes MARCH 12, 2014 Commissioner Wade Tucker moved, by Minute Motion, to approve the minutes of the January 8th, 2014 meeting. Motion was seconded by Commissioner Jane Turner and passed 4-0. V. NEW BUSINESS Receive and File the approved staff report from the Housing Authority Board meeting of February 27, 2014: 1) Reject All Bids for the 2014 Citywide Tree Pruning Program and Authorize Staff to Re -Bid the Project. Janet Moore stated that the Landscape Department had to take this item to the Housing Authority at their February's meeting in order to go back out to bid in time to get the trees trimmed at the proper timing. Motion was made by Commissioner Jane Turner to receive and file the approved staff report from the Housing Authority Board meeting of February 27, 2014: 1) Reject All Bids for the 2014 Citywide Tree Pruning Program and Authorize Staff to Re -Bid the Project; and seconded by Commissioner Wade Tucker; Motion was carried by all members. B. Citywide Tree Pruning Program Janet Moore stated that the Landscape Department anticipates opening bids next week. Due to the timing of pruning the broad -leaf trees, the Landscape Department would like to award a contract before the next Housing Commission meeting in April and therefore is asking the Commission to forward the recommendation to the Housing Authority's second meeting in March. Commissioner Jane Tucker suggested continuing this item until the Landscape Department awards a contract and then bring report back to the Commission as a receive and file. Motion was made by Commissioner Jane Turner to move forward the recommendation to award a contract to the Housing Authority and bring back report to the next Housing Commission meeting as a receive and file; motion was seconded by Commissioner Wade Tucker and carried by all members. C. Citywide Palm Tree Pruning Program. Spencer Knight summarized the revised staff report, stating the report is very consistent with last year's palm tree pruning contract. 2 Housing Commission Minutes MARCH 12, 2014 Commissioner Jane Tucker asked if Andy's Landscape & Tree Service, Inc. is a new vendor. Mr. Knight replied no, Andy's Landscape has worked with the City in the past. Commissioner Mike Lewis asked when the pruning of palm trees would be done. Mr. Knight replied that palm trees are pruned at three different times during the spring and the summer depending on the species. The first palm trees to be pruned will be the date palms; next species will be the Mexican fan palms and then the California fan palms. He noted that the palm trees are 30 to 45 days ahead than normal due to the warm weather. Commissioner Jane Turner moved, by Minute Motion, to forward the recommendation to the Housing Authority to award Contract No. C33290 for the 2014 Citywide Palm Tree Pruning Program to Andy's Landscape & Tree Service Inc.; and was seconded by Commissioner Wade Tucker; Motion was carried by all members. D. Palm Desert Housing Authority Proposed 2014-2015 Budget Veronica Tapia summarized the budget comparison. Commissioner Natalie Russo asked for clarification on line item "Transfer out to Housing Admin". Ms. Tapia explained that in the past, housing administration was expended by the former redevelopment agency. Due to the elimination of redevelopment agencies, and being that there were no other alternative funding sources, the Authority intends to reimburse the City for covering those costs associated with the administration. Janet Moore added that besides staff administration costs the other programs for the Housing Authority such as the down payment assistance for Desert Rose and Falcon Crest, and the Home Improvement Program are covered by this amount. Councilmember Liaison Jean Benson asked if Carlos Ortega Villas was included in the budget. Mrs. Moore stated that the 72 unit complex known as Carlos Ortega Villas was budgeted last year and carried over to the 2014-2015 budget and therefore will not show on this report. It was noted that this project will be funded by bonds rather than Net Operating Income. 3 Housing Commission Minutes MARCH 12, 2014 Commissioner Natalie Russo questioned the payroll increase and asked whether it was standard pay increases or hiring of additional staff. Teresa Vakili stated that staff has not had an increase in five years. The payroll increase will be a standard 3% for current existing staff as well as an additional leasing agent for the One Quail Place office which is the largest complex. Mrs. Moore referenced the last two pages of the budget report and explained that the spreadsheets details a breakdown by property that includes income, utility services, controllables, etc. Mrs. Moore noted that the recommendation is to forward the Commission approved budget to the Director of Finance to include in the City's Comprehensive Financial Plan. Commissioner Jane Turner moved, by Minute Motion, to forward a recommendation to the Finance Director to add the 2014-2015 budget to the Housing Authority Board for approval at a future meeting. Motion was seconded by Commissioner Wade Tucker and was carried by all members. E. Amended Rent Setting Policy Janet Moore summarized the staff report, stating that an amendment to the rent setting policy was implemented last year. However, the rental rates (based on "Fair Market Rent" ("FMR") set by the Department of Housing and Urban Development ("HUD") for Riverside County) were too high and impacted tenants that were in the higher income categories 65% and above. HUD establishes FMR for units within the entire County of Riverside that includes Temecula, Redlands, etc., areas that are not equitable to Palm Desert, resulting in rental increases between 150 and 300 a month. As part of the policy in place, the Executive Director has the ability to do an implementation plan at any time there is a concern. Therefore, last year staff conducted a local survey of rental rates within the City of Palm Desert with very similar type units such as the Regent and found that an adjusted implementation was necessary. Mrs. Moore provided a brief example of calculating someone's rent percentage to income. Because of this, she noted that two options were added to the Policy for the Executive Director to set the maximum rent and adjust Authority's market rent if necessary as well as establish a reasonable implementation plan for rental increases. The implementation will take place at lease renewals. 4 Housing Commission Minutes MARCH 12, 2014 Jessica Gonzales also added that in comparing rental rates throughout the Coachella Valley found that most cities such as Indio and Cathedral City have not established a rent setting policy which made it difficult to compare. Councilmember Liaison Jean Benson asked about tenant's reaction to the rental increase. Mrs. Moore replied that last year the tenants expressed concern because the increase was significant; however implementation of a maximum $100 increase to those affected, which is very comparable to neighboring communities, has been acceptable. Mrs. Moore reported that preliminary confirmation was received from the Department of Housing and Community Development ("HCD") with respect to the area median income ("AMI") for 2014. Although HUD rates went down for the Riverside County, HCD's did not; for a family of four the AMI stayed the same. Commissioner Jane Turner moved, by Minute Motion, to forward a recommendation to the Palm Desert Housing Authority to adopt Resolution No. HA- rescinding Resolution No. HA-51 and amending the procedure for setting and implementing rental rates. Motion was seconded by Commissioner Wade Tucker and was carried by all members. VI. CONTINUED BUSINESS VII. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore provided a brief update with respect to Carlos Ortega Villas, stating that the project received funding as of January 1st, 2014. Project is moving forward awaiting approvals from plan check. Mrs. Moore reported that four Falcon Crest homes, with different floor plans, were listed on the MLS. The goal is to add people to our interest list for homes that may become available at Falcon Crest and/or Desert Rose. The household's income is what determines the community they qualify for. Sales prices at Falcon Crest range from $200,000 to $225,000; Desert Rose homes range from $110,000 to $140,000. Mrs. Moore mentioned that there are a couple of homes in Falcon Crest that are no longer subject to the Authority's requirement as being affordable. Mrs. Moore encouraged new Commissioners 5 Housing Commission Minutes MARCH 12, 2014 to drive by the communities. She also contracted to maintain the properties. Commissioner Natalie Russo asked Mrs. the restrictions placed on those homes. noted that RPM Company has been Moore to provide a brief description of Mrs. Moore stated that when the Authority sells homes in a community that it assisted in developing, an affordable restriction is placed on the home for 45 years. The Authority has the first right of refusal to purchase the property back and in most cases will identify someone from the interest list. One of the restrictions mentioned was the resale price of the home to be either a calculated price or the fair market value whichever is the lesser of the two. At this time, the homes in Falcon Crest are priced at fair market value based on an appraisal. The real estate agent contracted to list these homes will be conducting an open house event at Falcon Crest this coming Saturday if anyone is interested in viewing these homes. She also noted that there has been a significant interest in Falcon Crest however, not a lot of applications have been received. Commissioner Gregory Ballard asked about marketing the properties. Mrs. Moore explained that the homes have just recently been added to the MLS. The dissolution of redevelopment agencies by the state precluded the Authority from selling those homes until recently. B. SUMMARY OF CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS Jessica Gonzales summarized the memo provided to the Commission for review. C. MONTHLY OCCUPANCY STATUS REPORT The Commission reviewed the Monthly Occupancy Status Report for December and January. Commissioner Natalie Russo provided a brief description of the reports provided by RPM Company. D. REPORT #1 — MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for December and January. 6 Housing Commission Minutes MARCH 12, 2014 Councilmember Liaison Jean Benson asked on the number of applicants on the interest list at the senior properties. Teresa Vakili stated that overall there are 2000 people on the interest list which includes the senior properties. She noted that there is a very slow turnover at the senior properties and is already getting calls for Carlos Ortega Villas. Ms. Benson commented that if you drive around town you would not think the rental properties owned by the Authority are affordable. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements December and January. Commissioner Natalie Russo explained the Net Operating Income report. F. HOUSING AUTHORITY PROPERTIES UPDATE Teresa Vakili summarized the report, commenting on the Edison Program and the new HVAC replacements at several of the rental properties. She noted that One Quail Place did not qualify to participate in the program due to the different type of HVAC. Upon question, Ms. Vakili explained that although the sewer lines at Laguna Palms are connected to the main sewer, there is a belly/pocket area where it clogs and therefore needs cleaning on a bi-weekly basis. Janet Moore referenced the number of service calls received a month; Mrs. Vakili commented the service calls are pretty consistent. G. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore summarized the report. At this time the program offers emergency grants beneficial to homeowners that are in an emergency situation such as HVAC or roof replacements. The program is advertised in the City's Brightside. IX. NEXT MEETING DATE — April 9, 2014 7 Housing Commission Minutes MARCH 12, 2014 X. ADJOURNMENT With Commission concurrence the meeting was adjourned at 4:45 p.m. to April 9, 2014 at 3:30 p.m. oiLit,L4 Ykc510 Patty Leon, Recording Secretary 8