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Home My WebLink About2012-08-29 Housing Advisory Commission MinutesCITY OF CHULA VISTA MINUTES HOUSING ADVISORY COMMISSION Wednesday, August 29, 2012 3:30 P.M. CALL TO ORDER/ROLL CALL — 3:40 P.M. CITY HALL NORTH BUILDING 300 276 FOURTH AVENUE, CONFERENCE ROOM #6111 PRESENT: Marshall "Dawes" Hamilt, Mark Minas, Sergio Quero, Mauricio Torre, Lillian Uy ABSENT: Armida Martin Del Campo (unexcused) STAFF: Mandy Mills, Housing Manager Leilani Hines, Principal Project Coordinator 1. APPROVAL OF MINUTES ❖ 1/25/12 - Member Minas motioned to approve the minutes from the meeting of 1125112. Member Quero second the motion and all members agreed 3 -0 -2, with members Hamilt and Uy abstaining since they were not on the commission at time of meeting. 2. ELECTION OF NEW CHAIR AND VICE CHAIR FOR FISCAL YEAR 2012/2013 Member Torre motioned to elect Member Minas as Chair for the fiscal year. Member Quero second the motion and all members agreed 5 -0. Member Minas motioned to elect Member Quero as Vice Chair for the fiscal year. Member Torre second the motion and all members agreed 5 -0. 3. CONGREGATIONAL TOWER BOND FINANCING 9 5. Staff Mills provided an overview of the proposed rehabilitation and financing of the property as summarized in the staff report, Exhibit 1. Vice Chair Quero made a motion to recommend that the Housing Authority approve the financing of the Congregational Tower project. Chair Minas seconded the motion. All members (5 -0) agreed to the recommended action. 2013 -2020 HOUSING ELEMENT UPDATE Staff Hines provided a presentation regarding the public outreach process and comments received on priorities, reference Exhibit 2. Based on public input and housing needs of the community, Staff Hines presented three goals and focus areas for the 2013 -2020 Housing Element cycle as: 1) Maintain & Enhance Housing & Neighborhoods; 2) Fund & Implement Services for Vital Community Resources, Balanced & Diverse Housing Opportunities; and 3) Support Housing Opportunities that meet the City's Diverse Needs, Government Role & Process. Members were supportive of programs related to the goals and focus areas presented. BALANCED COMMUNITIES AFFORDABLE HOUSING ( "INCLUSIONARY ") POLICY Staff Mills provided a presentation on proposed guidelines to the Inclusionary Policy, reference Exhibit 3. The guidelines would specifically provide consistency in interpretation of the Policy and allow flexibility to meet the goals of the Policy with market changes. Specifically the Guidelines would identify and exempt areas of high concentrations of low income housing from the requirement and identify areas that would require further information before determining the requirement. Mobilehome Rent Review Commission Minutes Page 2 of 2 Vice Chair Quero made a motion to recommend that Council approve the implementing guidelines to the Inclusionary Policy specifically the changes to allow flexibility to meet the balanced communities' goal. Member Hamilt seconded the motion. All members (5 -0) agreed to the recommended action. 6. STAFF COMMENTS ❖ Density Bonus Ordinance — Staff provided an overview of State Density Bonus Law and staff's efforts to adopt an ordinance locally to meet legal requirements. 7. MEMBER'S COMMENTS No Member comments. 8. PUBLIC COMMUNICATIONS None. 9. ADJOURNMENT — Meeting was adjourned at 5:20 p.m. to the next regular meeting of October 24, 2012. Recorder, Leilani Hines Exhibit 1 — Congregational Tower Staff Report Exhibit 2 — 2013 -2020 Housing Element Presentation Exhibit 3 — Inclusionary Policy Presentation CITY OF CHULA VISTA DRAFT MINUTES HOUSING ADVISORY COMMISSION Wednesday, January 25, 2012 3:30 P.M. CALL TO ORDER/ROLL CALL — 3:40 P.M. ATTACHMENT 1 590 FIG AVENUE OFF -SITE PROJECT VISIT PRESENT: Earl Jentz, Mark Minas, Margie Reese, Sergio Quero ABSENT: Mauricio Torre (excused), Armida Martin Del Campo (unexcused) STAFF: Stacey Kurz, Senior Project Coordinator Mandy Mills, Housing Manager Leilani Hines, Principal Project Coordinator Nicole Piano, Housing Intern 1. ELECTION OF NEW CHAIR AND VICE CHAIR FOR FISCAL YEAR 2011/2012 2. 3 4. Current Chair Minas motioned to elect Member Reese as Chair for the fiscal year. Member Quero second the motion and all members agreed 3 -0. Member Minas motioned to elect Member Quero as Vice Chair for the fiscal year. Member Reese second the motion and all members agreed 3 -0. 2013 -2020 HOUSING ELEMENT OF THE GENERAL PLAN Staff Hines provided a presentation regarding the process for updating the next Housing Element cycle, reference Exhibit 1. Staff Hines then facilitated a discussion on priorities, soliciting input from members on the programs and development goals they would like to see given the limited resources for affordable housing. The following list of priorities was developed: • Re- evaluate the Inclusionary Policy • Preserve existing affordable housing units: CHIP and Rehab Programs • Collaborate with property owners and rental associations to reduce the burden of security deposits, and first and last month's rent to renters • Original Rent Control for Mobile Home Owners • Support CDBG funding towards financial fitness and job training programs • Requirements for assistance, i.e. case management • Family with children and seniors have greatest priority for housing • Seek opportunities with foreclosed properties, i.e. program to help "clean -up" abandoned properties • New construction takes least priority CHULA VISTA ENERGY SHOWCASE HOME — 590 FIG AVENUE Staff Mills led a tour of the property and provided members with a summary of the energy upgrades and funding that went into rehabilitating the home. The property was purchased and in part rehabilitated with neighborhood Stabilization Program funds and will be resold to a low- income first -time homebuyer household later this year. A Project Overview and First -Time Homebuyer handout was provided to members, reference Exhibit 2 and 3. STAFF COMMENTS No time was available for a legislative update. Most of the issues were covered in the Housing Element presentation. Mobilehome Rent Review Commission Minutes Page 2 of 2 5. MEMBER'S COMMENTS No Member comments. 6. PUBLIC COMMUNICATIONS None. 7. ADJOURNMENT — Meeting was adjourned at 5:20 p.m. to the next regular meeting of April 25, 2012. a�! Recorder, St ey K rz Exhibit 1 — 2013 -2020 Housing Element Presentation Exhibit 2 — Project Overview Chula Vista Sustainable Energy Showcase Home Exhibit 3 — 590 Fig Avenue First -Time Homebuyer Program Exhibit 1 The City of Chula Vista Community Development Department A REPORT TO THE HOUSING ADVISORY COMMISSION Item No. 4 Staff Amanda Mills Housing Manager DATE: AUGUST 29, 2012 SUBJECT: CONGREGATIONAL TOWER APARTMENTS - RECOMMENDATION OF APPROVAL TO THE HOUSING AUTHORITY TO CONDITIONALLY APPROVE A TAX EXEMPT BOND OF UP TO $21 MILLION FOR THE FINANCING OF THE REHABILITATION OF EXISTING AFFORDABLE UNITS AT CONGREGATIONAL TOWERS APARTMENTS (288 F STREET) I. RECOMMENDATION That the Housing Advisory Commission recommend APPROVAL to the Housing Authority to conditionally approve a tax exempt bond not to exceed $21 million for the financing of the rehabilitation of existing affordable senior housing units at Congregational Towers Apartments. II. BACKGROUND The City of Chula Vista has received a request from Retirement Housing Foundation ( "Applicant ") to consider the issuance of tax exempt obligations to finance the rehabilitation of 186 existing affordable units at the Congregational Towers Apartments (the "Project "). The Congregational Towers Apartments are located at 288 F Street in northwest Chula Vista. The rehabilitation will improve the property and extend the term of the affordable rents. The Applicant is preparing an application for an allocation of tax credits and tax - exempt private activity bonds for multi - family projects from the California Debt Limit Allocation Committee (CDLAC) and is requesting that the Housing Authority of the City of Chula Vista be the conduit bond issuer for an aggregate amount not to exceed $21 million. The application must be submitted by September 14, 2012. The bond allocation and tax credit contributions will be used to substantially finance the Project. III. PROJECT DESCRIPTION The Applicant Community Congregational Development Corporation (a development corporation created by the Congregational Church) currently owns and operates the Congregational Towers Apartment project located at 288 F Street. Retirement Housing Foundation, a nonprofit service agency organized under section 501(c)(3) of the Internal Revenue Service Code, is proposing to create a new partnership with August 29, 2012 Congregational Towers Apartments Paze 2 Community Congregational Development Corporation. The new partnership will be named Congregational Tower Partners, LP. The current property owner has successfully operated the property for 39 years. The new partner, Retirement Housing Foundation, operates 161 communities across the United States in 29 states, the Virgin Islands and Puerto Rico, and has created over 16,000 units of affordable rental housing. The Property The project is an existing 186 unit affordable complex originally financed through the Department of Housing and Urban Development (HUD). After the renovations the community will include a new, larger community room, rooms for arts and crafts, central laundry, outside garden patio area, and a computer lab for all residents. The Proposal The project is thirty-nine years old and in need of rehabilitation to ensure continued long term use and viability. To take advantage of tax credits, the existing owner, Community Congregational Development Corporation, will sell the project to a new partnership named Congregational Tower Partners, LP, a California limited partnership that will acquire and rehabilitate the property using bond financing and tax credits. The new partnership, Congregational Towers Partners, LP, consists of Retirement Housing Foundation, Community Congregational Development Corporation and a tax credit equity investor as the Limited Partner to be determined later. The scope of the proposed renovation includes full apartment interior renovations, new roof, mechanical systems, electrical system, plumbing system, and other exterior finishes. The main floor will have an increase of approximately 2,000 square feet to include a lounge /library, adjoining recreational /media room, and additional bathrooms. Improvements will also be made to the parking lot and landscaping. Income and Rent Restrictions For the bond funding, Section 142 (d) of the Internal Revenue Services Code requires either a minimum of 20 percent of the rental units in the Project to be available for occupancy by persons or families whose income does not exceed 50 percent of the area median income (AMI) for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the AMI. In each case, the units are to be made available at affordable rents established by the applicable State law. A total of 38 units must be affordable for very low income households at 50 percent of AMI, or at least 75 units for low income households at 60 percent of AMI. Congregational Towers Apartments will continue to operate the entire project as an affordable project, with 184 units affordable to lower income households (2 units are managers' units). The bond regulatory agreement will restrict 184 units for low income households at 60 percent of AMI. The bond restricted rents will be based upon HUD income limits established for the year. August 29, 2012 Congregational Towers Apartments Page 3 The Project also has an existing Section 8 financing contract with HUD. This allows the tenants to pay only 3 0% of their income, with HUD paying the remaining portion of the rent. The applicant has applied for a Section 8 rent increase based on post rehabilitation market rent which will increase the Studio rent to $1,200 and the One Bedroom to $1,375. The request will not increase the amount currently paid by the tenants. Unit Description No. of Units Target Income Level Maximu in Rent Tenant Pays 0 Bd /1 Ba 124 60% AMI $844 30% of their income 1 Bd/1 Ba 60 60% AMI $904 30% of their income 1 Bd/1 Ba 1 Manager - - 2 Bd /1 Ba 1 Manager I - - Total Restricted 186 The Project proposes to maintain the income and rent restrictions for Congregational Towers for a period not less than fifty -five years, exceeding the 30 -year term of the bonds. The income and rent restrictions outlined above are to be incorporated into the Regulatory Agreement for the bonds, which will be recorded against the property. Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full 55 -year compliance period. IV. FINANCIAL ASSISTANCE Form of Assistance The Property Owner will be using Tax Exempt Multi - Family Revenue Bonds and Low Income Housing Tax Credit financing to support the majority of the estimated $39.9 million cost of the Project. Retirement Housing Foundation has requested the Housing Authority consider the issuance of $20.9 million in unrated tax exempt bonds. The tax exempt bonds will be acquired by Citi Bank under a private placement structure and Citi will then provide a construction and permanent loan. Retirement Housing Foundation will also apply for approximately $11 million in Low Income Housing Tax Credits. The permanent Bonds and Tax Credits would cover almost 80 percent of the estimated cost. The balance is expected to be provided by seller financing. HUD will allow the financing and provide a 20 year Section 8 contract for the property. V. Attachments Locator Map Prepared by: Amanda Mills, Housing Manager, Development Services Department, Housing Division August 29, 2012 Congregational Towers Apartments PaL,e 4 ATTACHMENT 1 LOCATOR MAP CONGREGATIONAL TOWERS APARTMENTS 288 F STREET Exhibit 2 Chula Vista Housing Element "...Decent housing and suitable living environment for every California family." Housing Commission August 29, 2012 wry CHUTA visa Tonight's Agenda 4: • Overview of Housing Element ✓ Purpose ✓ Requirements • Update Process ✓ Data & Community Input • 2013 -2020 Update Housing Element ✓ Goals, Objectives, Policies, and Programs wig Next Steps QR1U VIAA 8/29/12 1 Exhibit 2 • Purpose & Function • Long -range strategy with five -year updates • Oversight by State HCD • Minimum Requirements, ■ Needs Assessment ■ Past Performance ■ Adequate sites to meet RHNA ■ Five -Year Program of Actions OZA Hsu 8/29/12 6 Exhibit 2 Gathering & Analyzing Data Aug 2011 -Feb 2012 Public Outreach Mar 2012 Develop Programs & Draft HE priorities April — July 2012 Review & Approval August— Dec 2012 Policies & Programs QNU VISTA Regional Housing Needs Assessment Assessing the New Housing Needs in Chula Vista 04M VISTA 8/29/12 3 Exhibit 2 Regional Housing Needs Assessment 2010 -2020 Very-low Income < 50% MFI 3,181 (28 %) ( <$40,150 Family of 4) Low - income 51% - 80% MFI 2,312(20%) (<$64,250 Family of 4) Moderate - income 81% -120% MFI 2,220(20%) ( <$91,100 Family of 4) Above - moderate 120% MFI 3.602(32%) income ( >$91,100 Family of 4) TOTAL region) (1) Income limits established by State of Califomia HCD. 2012 HUD4- person MFI for San Diego MSA: $79(_0 Source: SANDAG and Fiscal Year 2012 HUD Income Limits '__ =; owu VISTA 8/29/12 4 Exhibit 2 Key Data Findings ,a . Overall • 40% increase in City population • Ethnically diverse • Housing affordability gaps • Lack of large family rental units (3+ bdrms) Differences from West to East • Income levels • Rental vs. Homeownership • Type and age of housing � : CHUTA VISTA EtlN'lfM 5 Exhibit 2 Workshops p • Stakeholders Group • General Public • City staff • Housing Advisory Commi: QIUU VISTA .j What We Heard Priority Populations • Economically General Needs vulnerable • Extremely low and • Affordable Housing very low income is lacking households • Families are • Homeless, particularly struggling families • Seniors L2 OiUU NSTA 8/29/12 A Exhibit 2 What We Heard • Geographic balance • Creative & Alternatives • Preserve what we have & opportunities to reuse & enhance existing • Purpose & responsibility • Reduce barriers — Parking — Fees wry � mT CHUTA Nsrn 8/29/12 7 Exhibit 2 KEY ISSUES • Existing opportunities and resources available and new collaborations to leverage resources ■ Housing with purpose ■ Economically vulnerable ■ Balance of housing ■ Economic benefits to residents and community tN VUA 8/29/12 Exhibit 2 j Mahain and Enhance Support Housing i Fund and Implement Services Fiausirxyand hle'phborhoode for Vital Community Resources Opportunities that Masi the City's Diverse Reeds Dui,. ;M—ft UA U VISTA /'� rfiN111Qi1/S. 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