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HomeMy WebLinkAbout1995-02-22 HAC MIN l CITY OF CHULA VISTA a MINUTES HOUSING ADVISORY COMMISSION Wednesday February 22, 19951. Conference Room 2 3:30 p.m. Public Services Building CALL TO ORDER/ROLL CALL - 3:37 p.m. PRESENT: Chairman Madrid, Helton, Flaugher, Lopez-Gonzalez, Alonso-Massey (arrived 4:15 p.m.), ABSENT: None STAFF: Housing Coordinator Arroyo, Assistant Community Development Director Gustafson, Community Development Specialist I Shanahan, Administrative Office Assistant II Gonzalez EX-OFFICIO: Mayfield (present), Lembo (absent) GUEST: Dan Marcus (SBCS), Craig Fukuyama (McMillin), Linda Boone (Orange Housing Development Corp.) 1. INTRODUCTIONS - None I i 2. APPROVAL OF MINUTES - MSC (Helton/Flaugher) to approve January 25, 1995 minutes with minor amendments, approved (4-0-1 Alonso-Massey absent). 3. RECORDING SECRETARY'S CORRESPONDENCE - Ms. Gonzalez briefly went over the motions and parliamentary procedures with the Commission Members. 4. HOUSING ADVISORY COMMISSION - Mr. Arroyo went over a memorandum that he provided for the Commission Members outlining the purpose, functions, and duties of the Housing Advisory Commission. The purpose and intent of the Housing Advisory Commission is to serve as a resource, to advise and to make recommendations to the City Council, Housing Authority, Redevelopment Agency, and City Manager on housing issues. i Chairman Madrid recommended that the Comprehensive Housing Affordability Strategy, Redevelopment Agency Housing, and the City Affordable Housing Program Agreements be made available to the Housing Advisory Commission. Member Helton also recommended that the Commission have a finance report of the financial situation of Housing, the monies the Commission has available and the monies the Commission puts out. 5. CITY OF CHULA VISTA AFFORDABLE HOUSING PROGRAM - The purpose of this item is to keep this Commission up to date as to what the housing efforts are, the present and what is going to be projected. Mr. Arroyo gave an overview of the housing program that is in effect right now: It is closely related to the Housing Element in regards to that timeframe. Every 5 years all cities are required to submit this plan that outlines what the needs are in housing and the efforts that need to be undertaken over that 5 year period. i � I Mr. Arroyo provided the Commission Members with a list of the 7 major objectives that the City is pursuing. Objective n�mber 1 - a balance community; to provide both low and moderate income housing throughout the City. One of the programs that is in effect to reach this objective is the affordable housing agreement requirement. The affordable housing agreement requires developers of 50 units or more, to produce 10% of those units to low and moderate income households. Objective number 2 - has to do with increasing rental housing opportunities. The City has a program underway to increase rental housing production by way of the affordable housing agreements. Another program which increases rental housing opportunities is the Section 8 rental assistance, program currently being administer by San Diego County Housing Authority, and soon to be handled by the Chula Vista Housing Authority. Objective number.3 - has to do with increasing opportunities for families to own their own home. The Mortgage Credit Certificate has been in operation for 4 years and every year it becomes more effective. This year the City plans to expand that program by helping families with their down payment, closing cost, or with a second trust deed. Member Lopez-Gonzalez questioned how do people obtained these type of loans. Mr. Arroyo responded that the MCC Program is available to anyone within the City that qualifies. Objective number 4 - is addressing the mobilehome park needs to preserve the mobilehome park living as a source of affordable housing. The City currently has a grant of $2,000 maximum to improve their unit for qualifying low income households. This program is very successful. In addition, thel City has a mobilehome rent arbitration ordinance which deals with rent increases in excess of the current CPI. Member Flaugher stated that the City should address the issue in regards to mobilehome park owners not noticing appropriately. Ms. Shanahan stated that there are civil and criminal remedies in the ordinance. . I Objective number 5 - has to do with the renewal of rehabilitation and conservation of homes. The City has loans and grants available for low income homeowners. Approximately there is $300,000 set aside every year'for this program. The City also has a Neighborhood Revitalization Program (NRP) which addresses the needs of the neighborhood outside of the home. To improve the infrastructure, streets, and sidewalks. There was a successful NRP program inti a Otay area which was completed in late 1994. The next designated NRP is in the Castle Park area. The Castle Park area was selected through a process of allowing the opportunity for neighborhoods to come forward to indicate interest. These programs can only succeed if there is enough interest within the neighborhood itself, and the Castle Park neighborhood was very interest in getting involved. Objective number 6 - has to do with addressing the homeless needs in the community. The City funded 2 projects, 31 Fourth Avenue Short Term Housing, and 17 Fourth Avenue Transitional Housing. In addition to that, the City supports social service programs that provide programs to benefit homeless families through CDBG funds. Objective 7 - has to do with fair housing and lending. The City has a contract with the San Diego Fair=g Council which provide fair housing services and helps in resolving landlord/tenant disputes. . I i i Mr. Arroyo announced that Mr. David Gustafson, Assistant Community Development Director will give a presentation on the affordable housing developments that the City has been involved in. Mr. Gustafson gave an overview of the affordable housing projects that the City has participated in. The City of Chula Vista has done a good job in terms of assisting housing. Chula Vista has done better than most other jurisdictions in the region in terms of diversity, unit production, and using a variety of financing mechanisms. The slide show demonstrated all the different affordable housing projects in the City and Mr. Gustafson gave a brief history of each project. Mr. Arroyo suggested for the Commission to skip to item number 7 because the McMillin people had arrived land were ready to give their presentation on their proposed project. 7. MCMILLIN COMPANIES AFFORDABLE HOUSING PROPOSAL - Ms. Shanahan stated that this is a proposed multi-family project that would be located in Spa III of Rancho Del Rey, South of H Street within a project being built currently by McMillin Co. The McMillin Co has an affordable housing requirement of 23 units with the City. As part of their negotiations with the City they need to enter into;an agreement with the City and propose how these units are going to be developed. McMillin is proposing to invite a non-profit and for profit development team to apply for funding to build a 40 unit affordable family housing program. Consultant Reed Flory first proposed this project to the City early February. Ms. Shanahan mention that this project is applying for state and federal housing tax credits. Basically, investors will buy the tax credit write-offs and then this money becomes available to multi family projects or for-sale housing. It is a very popular financing mechanism and has been very successful. The deadline to apply is March 10, 1995 so staff is under an extreme deadline to review this project. The organization that reviews the tax credits is the Tax Credit Allocation Committee. They review them in March and July and three quarters of the money is allocated through the March deadline. There is still a lot of things that staff needs to work out both on the tax credit proposal and on the negotiations with McMillin Co. The proposed project is a 24 two bedrooms units, 12 three bedroom units, and 4 four bedroom units. I Member Helton inquired on the street that is near the area where the proposed project is going to be. I Craig Fukuyama from McMillin responded that the street in question is the future extension of East J Street. Also he gave a brief overview of the proposed project on a map that he provided. Member Helton questioned what are the conveniences of services to this particular site. Craig Fukuyama responded that Terra Nova Shopping Center would be the most convenient to the site. Also, bus transportation routes would run through Paseo Ranchero once that street is completed. Member Helton asked what was the timeframe before East J Street is extended. Craig Fukuyai ma responded that this year in December both East J Street and Paseo Ranchero should be completed. Member Flaugher asked if these units are going to have disable access. i Ms. Shanahan responded that it will comply with the standards that are required by the Planning Department. The units are still in the initial planning phase and before Council approves the project, the site plan will come back to this Commission for further review. i Ms. Shanahan went over the amount that is being requested. The actual amount requested will be about 27%; approximately $1,312,000. Of that, McMillin Company will donate the land. Staff has I not established a value for the land and is currently working with a figure for this project of $800,000. They are negotiating with McMillin as to what the actual value is and how this will affect the relative contributions to the project. They are also asking for federal HOME funds and monies from the City and Redevelopment Agency Low and Moderate Income Housing Set-Aside Funds. The loan will be paid back through a residual receipts loan. The actual payback terms are being negotiated. The total request is approximately $512,000 from the City which is about $12, 800 per unit and that amount is still tentative. City staff proposes that the City assistance per unit be $10,000 or under based on the City's historical benchmark of $10,000 for similar projects. Ms. Shanahan recommended to the Commission Members that if they approve of the general concept, then perhaps the Commission can give a conditional recommendation subject to staff negotiation and City Council approval of final documents. Member Alonso-Massey inquired how many projects are envisioned. He asked if its the Commission's task to look at all these different projects that are located in the same vicinity and determine ich is the best one. Ms. Shanahan responded that at this point staff is trying to maximize housing dollars so that the City has enough money to fund all the proposed projects. The other large developers on the eastern territory also have an affordable housing requirement. They will be coming in with perhaps similar proposals. Mr. Gustafson stated that if the City stays within the price range of $10,000 or less per unit, the City can accommodate the other proposed projects. (Helton/Flaugher) the Housing Advisory Commission recommend approval of the Rancho del Rey Spa III development for affordable housing conditioned upon a City cost not to exceed $10,000 and the developers providing the needed information to staff and City Council before March 7, approved unanimously. Chairman Madrid stated that the Commission would like a copy of the final proposal that will be presented to the City Council. 6. CHULA VISTA, EL DORADO, LIVERMORE, MENLO PARK HOME MORTGAGE REVENUE BOND - Ms. Shanahan gave a brief history on a single family bond deal that took place in 1983, which she provided a memorandum giving background on this issue. The City received half of the funds and other cities and counties participated as well. There are three extra mortgages that weren't needed to pay off the bonds. The City has an opportunity to sell these mortgages and receive approximately 598,000 in housing funds that can be used for other housing projects. Staff is recommending support of the sale of these three mortgages. Chairman Madrid asked if there is a reason to sell these mortgages rather than carry it out for full term (20 years) and recoup the interest. Ms. Shanahan responded that trustee fees eat into interest income even though there is good interest on the money. The City has a lot of projects with substantial needs, and this would be a good way to�fill funding gaps. (Madrid/Lopez-Gonzalez) to accept staff's recommendation in selling the 3 mortgages, approved unanimously,I I 8. ORAL COMMENTS - None r- 9. STAFF REPORTS - Mr. Arroyo stated that every month staff will be presenting progress reports that explain some of the housing programs to the Commission Members, and bring them up to date on what is going on with City housing issues. The next Commission meeting, staff is proposing to use part of the meeting as a public forum for a presentation and discussion on the Consolidated Plan. HUD has requested that all cities submit a Consolidated Plan this year as a basis for future CDBG and HOME funding that the City receives. The plan basically establishes a long term objective on how the City will be addressing its housing and community development needs. As part of the process, staff has to hold a series of public forums to obtain citizen and community input before staff finalizes the plan. Member Helton asked how is staff planning to advertized the public forum. Mr. Arroyo responded that, through public notices in newspapers, cable, and fliers. 10. MEMBERS COMMENTS - Member Helton asked if staff has done anything as far as getting the representation from someone who resides at Dorothy Street or one of the other housing projects that would be interested in serving on the Housing Advisory Commission. Mr. Arroyo stated that he contacted the manager of the facility explaining what the City's needs were. Member Helton suggested that maybe a staff member can attend one of those meetings that the residents hold monthly, so a staff member can explain what the needs are for this Commission and why this Commission wants the representation from someone living there. Mr. Arroyo stated that technically the tenant that is represented has to be from the Chula Vista Housing Authority. Therefore, considering the timeframe that is going to take, the City Attorney's Office is recommending that a tenant can be from San Diego Housing Authority as long as that tenant is made aware that they can serve up until the time an actual tenant from the Chula Vista Housing Authority is identified. Members Helton asked what happen to the EastLake Affordable Housing Task Force Report. Mr. Arroyo responded that the EastLake plan was moving forwarded to the Planning Commission for their review and then to City Council for final consideration. The City Council should be reviewing it by the end of April. 11. ADJOURNMENT - 5:35 p.m. to the next regular meeting scheduled March 22, 1995 in the Public Services Building. i ZZ4 Recorder, Alicia Gonzalez I I i [AG\C:\W PW I N\2-22-MIN.] .. I II