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HomeMy WebLinkAbout2025-04-23 HHAC POST AGENDA ; ; **POST-MEETING AGENDA** Date:Wednesday, April 23, 2025 Time:4:30 p.m. Location:City Hall, Bldg. A, Executive Conference Room #103 276 Fourth Avenue, Chula Vista, CA Housing and Homelessness Advisory Commission Special Meeting Public Comments: Public comments may be submitted to the Housing and Homelessness Advisory Commission in the following ways: In-person comments during the meeting. Join us for the Housing and Homelessness Advisory Commission meeting at the time and location specified on this agenda to make your comments. Each person will be allotted three (3) minutes to address the Commission. • Submit an eComment. Visit www.chulavistaca.gov/boardmeetings, locate this meeting, and click the comment bubble icon. Click on the item you wish to comment on, then click "Leave Comment." • Email comments. Submit comments via email to HHAC@chulavistaca.gov. • Time Allotted for Speaking (subject to change by the presiding officer) - Agenda Items: 3 minutes - General Public Comment (not on agenda): 3 minutes Individuals who use a translator will be allotted twice the amount of time. The commenting period will close three (3) hours before the meeting. All comments will be made available to the Commission and the public. Accessibility: Individuals with disabilities are invited to request modifications or accommodations in order to access and/or participate in a meeting contacting the Housing and Homelessness Advisory Commission office of the City Attorney Department Staff at HHAC@chulavistaca.gov (California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Pages 1.CALL TO ORDER 2.ROLL CALL Commissioners Carlseen, Contreras, Montoya-Cesena, Pacheco, Paddock, Robinson Opeodu, Whitsell, Vice Chair Merino, and Chair Cabral. 3.CONSENT CALENDAR (Items 3.1 through 3.2) The Commission will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Commissioner, member of the public, or staff requests that an item be removed for discussion. If you wish to speak on any item, please fill out a "Request to Speak" form and submit it to the Secretary prior to the meeting or submit an electronic comment per the instructions on page one of this agenda. 3.1 Approval of Meeting Minutes 4 Recommended Action: Approve the minutes dated February 24, 2025. 3.2 Consideration Request for Excused Absences Recommended Action: Consider requests for excused absences as appropriate. There were no requests received. 4.PUBLIC COMMENTS Persons may address the Commission on any subject matter within the Commission’s jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Commission from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Commission may schedule the topic for future discussion or refer the matter to staff. If you wish to speak on any item, please fill out a "Request to Speak" form and submit it to the Secretary prior to the meeting or submit an electronic comment per the instructions on page one of this agenda. 5.ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Commission and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form and submit it to the Secretary prior to the meeting. 5.1 Mobilehome Administrative Fee Update 8 Recommended Action: Commission to hear the summary of Fiscal Year 2024-2025 revenues and expenditures and accept the report. City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda Page 2 of 35 5.2 Successor Agency Funding Allocations for Fiscal Year 2025-2026 22 Recommended Action: Commission to provide an advisory recommendation to the Housing Authority on the Fiscal Year 2025-2026 Successor Agency funding allocations. 5.3 Status of Unsheltered in Chula Vista 34 Recommended Action: Commission to hear an update on strategic planning efforts related to unsheltered persons and nominate one or two commissioners to participate on the shelter operator request for proposal (RFP) selection panel. 5.4 Change of Time and Location of Regular Meetings 35 Recommended Action: To approve resolution changing the time and location of regular meetings. 6.STAFF COMMENTS 7.CHAIR'S COMMENTS 8.COMMISSIONERS' COMMENTS 9.ADJOURNMENT to the regular meeting of the Housing and Homelessness Advisory Commission on July 23, 2025. Materials provided to the Housing and Homelessness Advisory Commission related to any open-session item on this agenda are available for public review by contacting the Housing and Homeless Services Department at HHAC@chulavistaca.gov. Sign up at www.chulavistaca.gov/residents/enotification to receive email notifications when agendas are published online. City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda Page 3 of 35 SPECIAL MEETING OF THE HOUSING AND HOMELESSNESS ADVISORY COMMISSION Meeting Minutes February 24, 2025, 3:30 p.m. City Hall, Bldg. A, Executive Conference Room #103 276 Fourth Avenue, Chula Vista, CA Present: Commissioner Carlseen, Commissioner Contreras, Commissioner Paddock, Commissioner Montoya-Cesena, Commissioner Whitsell, Vice Chair Merino, Chair Cabral Absent: Commissioner Robinson Opeodu Also Present: Management Analyst Rodriguez, Management Analyst Barnard, Director of Housing and Homeless Services Kurz, Housing Manager Warwick, Senior Planner Stanley, Community Engagement Specialist Ibarra, Commission Secretary Edgar Minutes are prepared and ordered to correspond to the agenda. 1. CALL TO ORDER Chair Cabral called the meeting to order at 3:36 p.m. 2. ROLL CALL Secretary Edgar called the roll. 3. CONSENT CALENDAR (Items 3.1 through 3.2) To approve the recommended actions appearing below consent calendar items 3.1 through 3.2. The motion was carried by the following vote: Moved by Commissioner Whitsell Seconded by Vice Chair Merino Page 4 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda 2025-02-24 Housing & Homelessness Advisory Commission Meeting Minutes Page 2 Yes (6): Commissioner Carlseen, Commissioner Contreras, Commissioner Paddock, Commissioner Whitsell, Vice Chair Merino, and Chair Cabral Result: Carried (6 to 0) 3.1 Approval of Meeting Minutes Approve the minutes dated August 20, 2024. 3.2 Consideration of Request for Excused Absences Consider requests for excused absences as appropriate. There were no requests received. 4. PUBLIC COMMENTS Robert spoke regarding various topics. 5. ACTION ITEMS 5.1 Housing Funds: HUD Block Grant Programs Funding Priorities for 2025-2029 Consolidated Plan and 2025/26 Annual Action Plan Management Analyst Barnard gave a presentation. Jenne Fredrickson and Robert spoke on the item. 5.2 Housing Successor Agency: Appropriation of Funds for Palomar Motel, and Updates Housing Manager Warwick gave a presentation. There was a consensus of the Commission to discuss the development of a subcommittee for financial oversight of projects at a future meeting. Jenne Fredrickson and Robert spoke on the item. Moved by Chair Cabral Seconded by Vice Chair Merino To recommend to the City Council the appropriation of Housing Successor Agency Low and Moderate Income Housing Asset Funds for Fiscal year 2024/2025, in the amount of $3.0 million for the rehabilitation of the Palomar Motel. The motion was carried by the following vote: Yes (6): Commissioner Carlseen, Commissioner Contreras, Commissioner Paddock, Commissioner Whitsell, Vice Chair Merino, and Chair Cabral Page 5 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda 2025-02-24 Housing & Homelessness Advisory Commission Meeting Minutes Page 3 Result: Carried (6 to 0) 5.3 Housing Successor Agency: Appropriation of Funds for E St Apartments Housing Manager Warwick gave a presentation. Kevin Leichner Senior Vice President of Housing and Real Estate Development; Roberto Garcia Project Manager at Community HousingWorks; and Lourdes Delatorre Housing Navigator at Phelps Diego Regional Center provided an overview on the project. Robert spoke in opposition to the item. Moved by Commissioner Whitsell Seconded by Vice Chair Merino To recommend to the City Council the appropriation of Housing Successor Agency Low and Moderate Income Housing Asset Funds for Fiscal Year 2024/2025, in the amount of $4.0 million for the development of affordable housing. The motion was carried by the following vote: Yes (4): Commissioner Paddock, Commissioner Whitsell, Vice Chair Merino, and Chair Cabral No (1): Commissioner Carlseen Abstain (1): Commissioner Contreras Result: Carried (4 to 1) 5.4 Consider Changing the Time of Regular Meetings Item was pulled and will be heard at a future meeting. OTHER BUSINESS 6. STAFF COMMENTS 6.1 Chula Vista Village at Otay General Update Management Analyst Rodriguez gave a presentation. 6.2 Affordable Housing Updates The item was pulled and will be heard at a future meeting. 7. CHAIR'S COMMENTS Page 6 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda 2025-02-24 Housing & Homelessness Advisory Commission Meeting Minutes Page 4 Chair Cabral gave a brief introduction on her background with the commission and welcomed new member, Commissioner Contreras. 8. COMMISSIONERS' COMMENTS Vice Chair Merino stated the importance of commission meetings and that a quorum is required to have meetings. He welcomed the new member, Commissioner Contreras. 9. ADJOURNMENT The meeting was adjourned at 6:17 p.m. Minutes prepared by: Abigail Edgar, Commission Secretary _________________________ Abigail Edgar, Commission Secretary Page 7 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda v . 0 03 P a g e | 1 City of Chula Vista Boards & Commissions Housing and Homelessness Advisory Commission April 23, 2025 Item No. 5.1 ITEM TITLE Mobilehome Rent Control: Retain the Administrative Fee for Mobilehome Rent Control Services at $5 for Fiscal Year 2025/26 Location: No specific geographic location Department: Housing and Homeless Services G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Accept report, allow for public comment, and provide input. SUMMARY Effective August 18, 2011, the City, under Chula Vista Municipal Code (CVMC) Section 9.50.030, established an Administrative Fee to be assessed upon all eligible mobilehome residents receiving benefits and services under CVMC 9.50 (“Chapter 9.50” or the “Ordinance”) – Mobilehome Park Space Rent Review. Chapter 9.50 no longer requires that the Administrative Fee be established annually by the action of the City Council if no change to the fee amount is being recommended. At this time, staff recommends retaining the fee at $5 for fiscal year 2025-26 (“FY 26”). ENVIRONMENTAL REVIEW The activity is not a “Project” as defined under Section 15378 of the CEQA State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. DISCUSSION Chapter 9.50 offers unique benefits and services solely to eligible mobilehome residents. As part of the annual Administrative Fee update process, staff is reporting out on prior year revenues and expenditures to establish the amount necessary to recover the costs of administering Chapter 9.50. This report provides an update on revenues and expenditures for July 1, 2024 - June 30, 2025 and recommends maintaining the fee at $5 for FY 26. Page 8 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 2 Fiscal Year 2024-25 (“FY 25”) Projected Revenues and Expenditures Revenues for FY 25 were anticipated to total $11,000 based on 2,200 residents paying a fee of $5. Actual payments were received from 2,355 eligible spaces, resulting in total collected revenues of $11,775. A summary of revenues and projected expenditures is provided in Table 1, followed by a description of related activities. Table 1 FY 2025 BUDGET SUMMARY Budgeted Projected Revenues: Fund Balance as of 7/1/24 $ 249,901 Collected Revenues $ 11,000 $ 11,775 Investment Earnings $ 0 TOTAL FUNDS $261,676 Expenditures: Staff Charges $ 39,000 $ 39,000 Experts $ 25,000 $ 0 Administrative/Billing Costs $ 4,000 $ 4,000 TOTAL EXPENDITURES $ 43,000 Projected Surplus/Deficit $218,676 Staff Charges Administration of Chapter 9.50 is projected to result in staff charges of $39,000 for FY 25. Staff provided the following services:  Ombudsman Activities (Office Visits & Mobilehome Information Line) – Staff responded bilingually to all inquiries related to Chapter 9.50.  Resident Invoicing Preparation – A June 1st billing and/or ineligible notice was sent to all mobilehome/trailer residents and in August, reminder notices were sent to all residents with a balance due and to those residents determined ineligible.  Fee Collection – Collection and processing of fee payments received. This fiscal year an online portal was added for electronic payments, resulting in additional administrative expenses for maintenance issues.  Database Maintenance – Maintained the database with current resident information.  General Ombudsman - Provided residents with general information on rent control and resources related to mobilehome parks via phone and office visit.  Annual Permissive Rent Calculations - Twice a year, the Consumer Price Index (CPI) is released and notification was sent to all park owners and managers of the annual permissive rate as calculated under Section 9.50.050.  Rent Review Inquiries/Hearing Administration – Staff coordinated inquiries regarding rental increases between residents and park management as needed. Page 9 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 3 Experts No rent review hearings or hiring of experts was necessary during FY 25. Funds collected will be available to appropriate in FY 26 for hiring of experts if a second rent review case is required. The lack of hearings also resulted in staff time reimbursement savings to the program. Administrative Costs (Postage, Office Supplies and Printing) In FY 25, the billing of the administrative fee was contracted out. Additional annual administrative costs, including CPI notices and publication of this hearing notice were incurred. Fiscal Year 2025-26 (“FY 26”) Budget and Administrative Fee Staff recommends the fee be retained at $5 dollars for FY 26 due to the current fund balance and lack of rent review hearing activity. Important factors taken into consideration include:  Since the ordinance amendments in 2012, no rent review cases have been heard for existing residents. However, two rent review cases began the process (Rancho Bonita in FY15 and El Mirador in FY18). In both cases, the rent increases were agreed upon between resident and owner prior to hearing. Prior to the 2012 amendments, existing resident rent review cases occurred approximately every other year. Therefore, staff has forecasted expenditures with one case every three years. This is a change from prior forecasting of every other year. In addition, staff is currently (April 2025) working with the Bayside Senior Mobilehome Park which was recently acquired to determine if a rent increase above the annual permissive will be requested.  Staff costs to administer the fee and rent review services have remained stabilized.  Since the fee has been reduced to $30 or less, more residents have been consistently paying. Therefore, projections remain at 2,200 residents to pay this coming year. Table 2 provides a summary of the FY 26 budget which anticipates one rent review case and a contingency of $25,000 for expert time related to one additional case, if needed, with an estimated ending fund balance of $125,676. Table 2 FY 2026 BUDGET SUMMARY Budget Revenues: Projected Fund Balance as of 7/1/25 $ 218,676 Anticipated Revenues (2,200 @ $5) $ 11,000 Expenditures: Staff Charges $ 55,000 Experts $ 25,000 Administrative/Billing Costs $ 5,000 TOTAL ANTICIPATED EXPENDITURES $ 85,000 Contingency for Experts $ 25,000 Anticipated Fund Balance as of 6/30/26 $ 144,676 Page 10 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 4 With the fee at $5, annual revenues alone will not cover costs if heavy administrative costs are expended in a given year. Therefore, fund balance would then be used to maintain administrative services. If cases were to occur every third year, program funds would rapidly be depleted. For this reason, Staff do not recommend any lowering of the fee rate going forward. Account projections based on differing fee amounts and assuming cases every third year are detailed in Table 3 below: Table 3 FUND BALANCE PROJECTIONS Given current workload and few actual cases, staff has projected being able to maintain the fee for a few years at $5 and will make further considerations to changes in the fee if any cases are heard in the next few years. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical in nature and, as such, does not require the Housing and Homelessness Advisory Commission members to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18704(d)(1). Consequently, this item does not present a conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any Commission member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. Staff Contact: Mark Barnard, Management Analyst II -50000 0 50000 100000 150000 200000 250000 FY26 FY27 FY28 FY29 FY30 $5 $10 $12 $15 $20 Page 11 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life HOUSING & HOMELESS SERVICES Item 5.1 Mobilehome FY 25/26 Administrative Fee Presented by: Mark Barnard, Management Analyst II Page 12 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Laws and Regulations •CVMC 9.40 Housing Assistance (Closure Ordinance) •CVMC 9.50 Mobilehome Park Space Rent Review •CVMC 9.60 Sale of Mobilehome Parks (Resident First Right of Refusal to purchase) •California Mobilehome Residency Law (MRL) Chapter 2.5 of the Civil Code Page 13 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Rent Control •History of Chula Vista Mobilehome Rent Control & Administrative Fee •Rent control established under CVMC 9.50 in 1982 •Major amendments include: •1991 Established MHRRC •2002 Current allowable increase formula established •2012 Removed ability to petition on change of ownership and established Administrative Fee •2024 Established a Mobilehome Rent Review Hearing Officer Page 14 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Current Rent Control Chula Vista Mobilehome Rent Control under CVMC 9.50 •Mobilehome park residents must pay administrative fee to be covered under CVMC 9.50 •State law establishes requirements for rent control eligibility: o Residents must own the mobilehome o The mobilehome must be the participant’s primary residence o Participants must have a lease of 12 months or less •Rent can be increased one time in a 12-month period •New residents can “opt in” their first July 1 of residency •Allowable permissive rent increases are limited to CPI up to 3% plus 75% of CPI above 3% •Park owners can propose increases over the annual permissive rate and residents have the ability to petition Page 15 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES CPI History •History of CPI increases and Comparison Rents •Average allowable increase of 2.9% since 2002 3.15 3.9 3.85 2.8 2.75 2.6 0.3 0.7 1.3 3.05 1.6 1.3 1.85 1.6 2 3.05 3.35 2.55 2.2 3.85 7.75 5.35 3.65 3.65 0 1 2 3 4 5 6 7 8 9 Annual CPI Average Year Aug PR Feb PR 2001 4.0 2002 2.9 3.4 2003 4.1 3.7 2004 3.7 4.0 2005 3.3 2.3 2006 2.3 3.2 2007 4.6 0.6 2008 -0.6 1.2 2009 1.4 0.0 2010 1.4 1.2 2011 3.4 2.7 2012 1.7 1.5 2013 0.9 1.7 2014 2.4 1.3 2015 0.8 2.4 2016 2.0 2.0 2017 3.3 2.8 2018 3.0 3.7 2019 2.8 2.3 2020 2.1 2.3 2021 6.0 1.7 2022 7.3 8.2 2023 4.3 6.4 2024 3.5 3.8 2025 3.5 3.8 Avg 2.9% Page 16 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES South Bay Mobilehome Space Rents Survey Data and Comparison Rents (Jan 2025) Average Existing Rent •South Bay Region: $1,228 •Chula Vista: $1,230 $721 $812 $906 $938 $982 $1,000 $1,112 $1,056$1,104 $1,228 $615 $717 $736 $740 $778 $821 $921 $1,073 $1,145 $1,230 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2012 2015 2016 2017 2018 2019 2022 2023 2024 2025 South Bay Region Chula Vista Page 17 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES South Bay Mobilehome Space Rents 6 Parks 21 Parks Full Permissive Rate Other Amount/No Increase •CV Average rent increase 3.75% •Average increase for other South Bay parks 5% Page 18 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Projections and Fee Recomendations FY 2025 Budget Summary Budgeted Projected Revenues: Fund Balance as of 7/1/24 $249,901 Collected Revenues $11,000 $11,775 Expenditures: Staff Charges $39,000 $39,000 Experts $25,000 $0 Administrative/Billing Costs $4,000 $4,000 Projected Surplus/Deficit $218,676 Page 19 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Projections and Fee Reccomendations FY 2026 Budget Summary Budget Revenues: Projected Fund Balance as of 7/1/22 $218,676 Anticipated Revenues (2,200 @ $10)$11,000 Expenditures: Staff Charges $55,000 Experts $25,000 Administrative/Billing Costs $5,000 Anticipated Surplus/Deficit $144,676 Page 20 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Fund Balance Projections -50000 0 50000 100000 150000 200000 250000 FY26 FY27 FY28 FY29 FY30 $5 $10 $12 $15 $20 Page 21 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda v . 0 03 P a g e | 1 City of Chula Vista Boards & Commissions Housing and Homelessness Advisory Commission April 23, 2025 Item No. 5.2 ITEM TITLE: Successor Agency Funding Allocations for Fiscal Year 2025-26 Location: No specific geographic location Recommended Action: Commission provide an advisory recommendation to the Housing Authority on the Fiscal Year 2025-26 Successor Agency funding allocations. SUMMARY The Chula Vista Housing Authority, acting in its capacity as the successor housing entity to the Chula Vista Redevelopment Agency (Housing Successor Agency), administers the Low and Moderate Income Housing Asset Fund (Housing Fund). In Fiscal Year 2025-26 (FY 25-26), staff recommends Housing Fund monies be appropriated for the following actions: $300,000 for administration, $250,000 for homelessness prevention services, and $3 million for affordable housing production. ENVIRONMENTAL REVIEW The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required. DISCUSSION Background The Chula Vista Redevelopment Agency, along with all redevelopment agencies statewide, was dissolved by the State legislature in 2012. At the time of dissolution, a housing successor was to be selected to transfer and be responsible for the remaining assets and liabilities of a former redevelopment agency. The City of Chula Vista (City) City Council elected to designate the Chula Vista Housing Authority as the Housing Successor Agency. All rights, powers, committed assets, liabilities, duties, and obligations associated with the affordable housing activities of the Agency were transferred to the Housing Authority, who acting as the Housing Successor, transferred these assets to the Housing Asset Fund. As of June 30, 2024, the unencumbered balance of the Housing Asset Fund was $14,741,072. Under California Code, Health and Safety Code (HSC) Section 34176.1, Housing Asset Funds may be spent on: 1. Administrative costs for the operation of the housing successor agency, at the greater of $200,000 per year adjusted for inflation ($263,100 for FY 2023-24), or 5% of the statutory value of real Page 22 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 2 property owned by the Housing Successor and the value of loans and grants receivable ($1,304,188 for FY 2023-24); 2. Homeless prevention and rapid rehousing services up to $250,000 per year; and 3. Affordable housing development assisting households with up to 80 percent of the Area Median Income (AMI), subject to specific income and age targets over a five-year period. State law also limits the amount of uncommitted funds a housing successor may retain. Funds that exceed this amount are known as the “Excess Surplus,” calculated based on the greater of the following:  $1,000,000; or  The total amount of deposits made into the Housing Asset Fund over the preceding four years. Once an excess surplus is determined, the Housing Successor Agency must account for these funds separately and commit said monies within three years. Excess Surplus funds may be claimed by HCD if not committed within a timely manner. Entering Fiscal Year FY 24-25 the Housing Successor Agency had an Excess Surplus balance of $10,640,600, of which at least $7,092,093 needed to be expended or encumbered by June 30, 2025. These funds were primarily committed via two project loan approvals for the E Street Apartments ($4 million) and Palomar Motel permanent supportive housing project ($3 million) in March 2025. The Housing and Homeless Advisory Commission recommended both projects for funding at their February 24, 2025 meeting. Combined with administrative and other eligible programming, the City expects to expend or encumber approximately $7.3 million by June 30, 2025, leaving a balance of approximately $3,340,600 which will need to be expended or encumbered by June 30, 2026. The proposed appropriations will fulfill this requirement and enable continued compliance with State requirements for the Housing Fund. Administration ($300,000) Pursuant to HSC Section 34176.1(a)(1), the City reported an available administrative cost limit [HSC Section 34176.1(a)(1)] of $1,304,188 in FY 2023-24. Because eligible administrative costs are primarily limited to compliance and monitoring-related activities, staff is proposing to commit $300,000 in FY 25-26 Housing Asset Funds for administration of Housing Successor Agency activities. This allocation includes the extension of existing contracts with RSG, Inc., which performs inspections and compliance reviews of Housing Authority assets, and Housing Compliance Services, which maintains a portal for compliance reporting. Homeless Prevention Services ($250,000) Up to $250,000 in Successor Agency funds may be used for Homeless Prevention Services per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012 [HSC Section 34176.1(a)(2)]. The City is eligible for this expense because it did not have any outstanding inclusionary or replacement housing requirements upon dissolution and intends to commit $250,000 towards the Homeless Prevention Program in FY 25-26 Housing Asset Funds. Homelessness Prevention Program ($250,000) – Senior Shallow Subsidy Program Housing insecurity among older adults is an increasingly urgent issue as fixed incomes fail to keep pace with rising housing costs, often forcing older adults to forego basic need purchases such as healthy food or medicine in lieu of paying rent. The impact of eviction or displacement is especially severe for seniors, who may experience compounding health and mental health challenges as a result. Shallow subsidy programs Page 23 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 3 have recently been a critical intervention in addressing those risks by promoting aging in place, housing stability, and long-term community wellness. The City’s initiative builds on two successful regional models. In 2022, Serving Seniors piloted the region’s first shallow rental subsidy program, providing $300 monthly subsidies for 24 months to 21 clients aged 63– 82. The program targeted low-income seniors and was funded with $350,000. Following this, the County of San Diego launched a larger pilot in 2023, offering $500 monthly subsidies to 222 older adult households for up to 18 months. In 2024, the County expanded its program to serve an additional 160 households with a total budget of $2 million. These models proved that shallow subsidies can be an effective tool in preventing homelessness, especially for seniors living on fixed incomes. In FY 25-26, the City of Chula Vista will allocate $250,000 in Housing Asset Funds to implement a Pilot Senior Shallow Rental Subsidy Program aimed at preventing homelessness among older adult residents. The program is designed to provide fixed, monthly rental assistance to eligible low-income seniors (ages 55+) at risk of housing instability, helping them to remain housed and avoid displacement. The Pilot Senior Shallow Rental Subsidy Program offers a $500 monthly subsidy, paid directly to landlords, and is not tied to rent fluctuations. Instead, it serves as a stabilizing measure to help bridge the gap between income and housing costs. Tenants remain responsible for the remaining portion of their rent and must meet annual recertification requirements to remain eligible. Prioritization of applicants is based on Successor Agency funding guidelines, which require an equitable distribution of Housing Asset Funds. Priority for the program is given to households earni ng 30% of Area Median Income (AMI) or less, with at least 30% of funds reserved for this population. Households earning between 31% and 50% of AMI are eligible as funding allows. No more than 20% of total program funds may be used to assist households earning between 60% and 80% of AMI. This tiered priority structure, outlined in the program’s Priority Selection Process, ensures that funds are equitably distributed and that the most vulnerable households are served first. Eligible participants must reside in Chula Vista, be the primary leaseholder, and demonstrate rent burden or housing instability. Households receiving long-term federal rental assistance are not eligible, though those who previously received COVID-19 rental relief may still qualify. With a total allocation of $250,000, the City anticipates assisting approximately 40 older adult households in the initial year of the program, depending on duration of enrollment and continued funding availability. Affordable Housing Production ($3,000,000) Affordable housing development is a primary function of the Housing Fund. “Development” is broadly defined to include new construction, substantial rehabilitation, acquisition/rehabilitation, and preservation of existing affordable housing. HSC Section 34176.1 prescribes income and age requirements for projects assisted through the Housing Fund, as measured by various compliance timeframes, summarized below:  Over each five-year compliance period (the current period beginning July 1, 2019), at least 30 percent of such development expenditures must assist extremely low-income households (30% of AMI), while no more than 20 percent may assist low-income households (between 60% to 80% of AMI). The balance of the funds may be used on very low-income households (defined as households earning Page 24 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 4 between 30% and 60% of AMI). The Housing Successor is on track to be in compliance with this requirement during the current five-year compliance period.  If more than 50% of the total aggregate number of rental units produced by the city, housing authority, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing. It is the City’s intent to issue a Notice of Funding Availability (NOFA) in 2025 to provide up to $3,000,000 in FY 25-26 Housing Asset Funds for financing towards a project that meets the Housing Successor expenditure and production requirements. The exact timing of the NOFA will be based on feedback from the developer community and other agencies to maximize the potential for leveraging of other funds. After the NOFA process is completed, staff will return to this Commission and City Council with a funding recommendation for a specific project. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no current-year fiscal impact to the City's General Fund as all costs associated with the program are covered by Successor Housing Agency Funds. This action will allocate surplus funds from the Successor Housing Agency in the amount of $300,000 for administration, $250,000 for a Homelessness Prevention Program, and $3,000,000 towards affordable housing development as detailed in Table II. Table II - Housing Asset Funds Commitments FY 25-26 Eligible Activity Program Funds Administration $ 300,000 Homeless Prevention Services Shallow Subsidy Program $ 250,000 Affordable Housing Development TBD through NOFA $ 3,000,000 TOTAL Successor Agency FY 2024-25 Budget $ 3,550,000 DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the Housing and Homelessness Advisory Committee members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any Housing and Homelessness Advisory Committee member, of any other fact that may constitute a basis for a decision- maker conflict of interest in this matter. Page 25 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda P a g e | 5 Staff Contact: Brian Warwick, Housing Manager ATTACHMENTS None Page 26 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life HOUSING & HOMELESS SERVICES Item 5.2 Successor Agency Funding Page 27 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Housing Successor Agency •Administered by Housing Authority in its capacity as Successor Agency •Recycled loan funds •Excess Surplus Funds expenditure requirements •Approximately $7M Excess Surplus balance Low-and Moderate-Income Housing Asset Fund (“Low-Mod Fund”) Page 28 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Funding Recommendations Program Detail Amount Affordable Housing Production Long-term loan for new construction or substantial rehabilitation $3,000,000 Homeless Prevention Pilot Senior Shallow Subsidy Program $250,000 Administration Property inspections, compliance reviews, staff time $300,000 Total $3,550,000 Page 29 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Affordable Housing Production Notice of Funding Availability •Priority on new construction, rather than rehabilitation, acquisition/preservation •May package with other funds, such as Community Development Block Grant (CDBG), Local Housing Trust Fund (LHTF) •To coordinate timing with County and State programs to maximize impact Page 30 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Homelessness Prevention Pilot Senior Shallow Subsidy Program •Rental subsidy up to $500/month •Eligible to low-income households age 55+ •Priority given to Extremely Low- Income Households (30% AMI and below) •Assistance is for 12 months •Staff to prepare administrative guidelines Page 31 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Administration •Property inspections and file reviews of City’s portfolio •Compliance software maintenance •Staff costs to administer programs, negotiate and execute documents, etc. Page 32 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda HOUSING & HOMELESS SERVICES Staff Recommendation Program Detail Amount Affordable Housing Production Long-term loan for new construction or substantial rehabilitation $3,000,000 Homeless Prevention Pilot Senior Shallow Subsidy Program $250,000 Administration Property inspections, compliance reviews, staff time $300,000 Total $3,550,000 HHAC recommend budget for Council approval Page 33 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda DRAFT STRATEGIC PLAN ON HOMELESSNESS (2025-2028) GOALS Through outreach engage and support people who are unsheltered to transition to interim housing, permanent housing, or other places where they can access needed services and supports. This goal articulates a commitment to meeting the needs of people who are unsheltered, meaning they are living outside either on the street, in tents, in encampments, or in vehicles. While ideally each unsheltered person would be able to move directly into permanent housing, emergency shelter and other forms of interim housing represent a critical intervention that meets an immediate need for safety and connections to services and housing assistance. Chula Vista is committed to reaching a functional zero level of homelessness, where every unsheltered person in the City who chooses assistance can be sheltered in an emergency shelter or in temporary or permanent housing. Having sufficient shelter capacity and providing housing-focused services in shelter is a critical part of reaching functional zero homelessness. Permanently house people experiencing homelessness. The team, in partnership with social service partners will continue prioritizing available resources to expand housing solutions for people experiencing homelessness through the development of new units and by identifying funding for other housing opportunities. The system will also provide services to support people to secure housing outside the homelessness response system – such as family reunification, securing a shared housing solution, or gaining enough income to rent an unsubsidized unit. Prevent people from experiencing homelessness through early intervention, stabilization services, and financial assistance for households with housing instability. A critical strategy to reduce the number of people experiencing homelessness is to identify people who are at imminent risk of becoming homeless and provide interventions to help them remain housed. This includes people who have been placed into permanent housing but need additional services to prevent a return to homelessness, and people with extremely low incomes and other challenges that make it difficult to pay their rent and avoid eviction. Use data for continuous quality improvement and service coordination. Robust data analysis and evaluation are essential to ensure that efforts to address homelessness achieve their in- tended impact. Analysis of performance data helps to identify inefficiencies or areas in need of improvement and develop solutions. Over the course of the next three years, the City will continue to gather and analyze data from the Clarity HMIS system and explore ways to expand cross-system data sharing and analysis, including real-time sharing of client data with appropriate privacy safeguards, with the goal of improving outcomes for people with complex needs who are involved with multiple systems of care. Policies and Procedures Develop and implement policies and procedures that ensure the well being of the community as a whole. PLAN IMPLEMENTATION TIMEFRAME Public Input December - June Council Workshop September (tentative) Council Adoption Fall of 2025 (tentative) Interagency Collaboration Continue cross coordination with outside agencies to address issues collaboratively. Page 34 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda RESOLUTION NO. 2025-01 RESOLUTION OF THE HOUSING AND HOMELESSNESS ADVISORY COMMISSION OF THE CITY OF CHULA VISTA CHANGING THE TIME AND LOCATION OF REGULAR MEETINGS WHEREAS, Resolution No. 2003-07 establishes the time and place as 3:30 p.m. at the Housing Conference Room, Legislative Building, locate at 430 Davidson, Suite B for the Housing and Homelessness Advisory Commission to hold its regular meetings; and WHEREAS, Municipal Code Section 2.25.200 provides for a change in meeting time upon adoption by the board/commission of a written resolution, which adoption shall be recorded in the minutes of the board/commission and a copy of which resolution shall be forward ed to the City Council; and WHEREAS, the Housing and Homelessness Advisory Commission wishes to change its meeting time and place to 4:30 p.m.at the Executive Conference Room C-103, 276 Fourth Ave. to facilitate member attendance. NOW, THEREFORE, BE IT RESOLVED that the Housing and Homelessness Advisory Commission of the City of Chula Vista, pursuant to Municipal Code § 2.25.200, does hereby change the time and place of its regular meetings to the fourth Wednesday of January, April, July and October at 4:30 p.m. at the Executive Conference Room C-103, 276 Fourth Ave. Approved as to form by Marco A. Verdugo, City Attorney Page 35 of 35 City of Chula Vista Housing and Homelessness Advisory Commission April 23, 2025 Post Agenda