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Home My WebLink About1992-07-22 HAC MIN . . . MINUTES HOUSING ADVISORY COMMITTEE Wednesday July 22, 1992 3:30 P.M. Conference Room 2 Public Services Building 276 Fourth Avenue, C.V. CALL TO ORDER/ROLL CALL The meeting was called to order at 3:40 P.M. PRESENT: Cecilia Delgadillo, Joe Casillas, Dan Dennison, Allen King ABSENT: Maggie Helton, Kathleen Kearney, l.R. de Jesus Chantengco, STAFF: Assistant Community Development Director Gustafson, Housing Coordinator Arroyo, Community Development Specialist Harris, Community Development Specialist Rogers, Intern Martinez GUESTS: Mayor Nader, Merritt Hodson, Barbara Orsa EX-OFFICIO: Diane Flint (Absent) Mitch Thompson (Absent) 1. Introductions Juan Arroyo, the City's new Housing Coordinator, was introduced to the Committee and he spoke about his background and previous experience in housing. 2. Housing Authority Proposal David Gustafson gave an extensive presentation on a proposed Housing Authority in the City of Chula Vista. The purpose of the Housing Authority would be to enable the City to develop and finance our own affordable housing and to directly receive Section 8 and other federal housing program funds. Mr. Gustafson outlined the City/Agency's current role in the housing arena which includes the CDBG and HOME programs, inclusionary housing in new developments, and Agency funding of affordable housing projects. The City is currently a member of the County Housing Authority, which administers the City's Section 8 rental assistance program, the moderate rehabilitation program, and public housing projects. Mr. Gustafson outlined the main advantages and disadvantages of the City creating its own Housing Authority. The advantages include local autonomy, greater control over the expenditure of housing funds, and project-based section 8 certificates to support new affordable housing projects. Another advantage would be the consolidation of activities under a Community Development Commission. Disadvantages include the increased staffing required to operate the Section 8 program and handling calls involving tenant/landlord disputes. Another potential disadvantage involves the public confusion when two agencies are operating Section 8 programs in the same jurisdiction. Also the formation of a Community Development CommIssion (consolidating the Agency and the Housing Authority) requires that two low-income tenants be added to the Commission. Mr. Gustafson eXplained that the County would maintain their Section 8 certificates until their contracts with HUD expire and the City would only administer the new certificates. It might take two to three years for the City to . . . reach the 200 certificate level, which is considered the financial break. even point. As a new housing authority, the City will have the right to petition HUD when the County contracts expire. Apparently Oceanside is experiencing some problems because the County still administers 300 certificates in their City. Me. Casillas asked if HUD wouldn't want to clear up the confusion by giving the certificates all to the City. Mr. Gustafson responded yes, but HUD won't do so in the middle of the contract period. Mr. Casillas pointed out that HUD provides administrative funds. Mr. Gustafson responded that although the administrative funds were an incentive in the past, these funds have decreased. Now with the new family self- sufficiency program, those surplus administrative funds are used to hire caseworkers. Oceanside is just breaking even on the admin. and not able to fund the self-sufficiency program. Me Casillas said he would like to see the whole issue spelled out before making any decisions or recommendations. Ms. Delgadillo also would like to see further study and information back to the Committee. Mr. Arroyo stated we could get more information from the Housing Authority in Garden Grove, where he previously worked, as well as from HUD. Mr. King asked whether creation of the Housing Authority would give the City more control over housing programs and staff responded in the affirmative. Ms. Delgadillo asked why Oceanside was still struggling with the County over its Section 8 program and Mr. Gustafson replied that, because Oceanside has so many housing projects requiring attention, they haven't had time to fight with the County over the Section 8 program. Mr. Gustafson expressed the opinion that our "fight" with the County could be won because HUD is likely to be on our side. Ms. Delgadillo asked when would the City implement the new Housing Authority. Mr. Gustafson explained that staff was preparing a report which will go to the City Council next week for their consideration. MSC (Dennison/Delgadillo) (4-0-5 Helton, Kearney, Chantengco, Flint, Thompson Absent) to recommend that the City Council approve further study of the concept of creating a housing authority 3. Project Update- HUD Section 236 Apartments Ms. Rogers provided an update on the HUD Section 236 apartment projects. It appears that 3 of the 4 owners have opted to continue their ownership and accept new incentives from HUD. The owner of the largest complex, the Palomar Family Apartments, still may sell. Mr. Casillas opined that this is not the best time to sell an apartment building as the RTC is dumping apartments onto the market. Ms. Rogers stated that even though three owners are staying in, the City will still be involved in inspection of the units. Before HUD will provide the new incentives, the units must be brought up to code. There is also a process for tenant input. 4. Impediments to Fair Housing Choice Ben Martinez distributed his report on Impediments to Fair Housing for committee comment. Mr. Casillas stated his belief that their has been disinvestment and redlining in Chula Vista. Mr. Harris responded that the pattern of mortgage lending did not necessarily indicate redlining, but partly had to do with patterns of new housing development. Mr. Casillas stated that if you look at all the factors, including color and race, that one could conclude that redlining was happening. Mr. Gustafson added tbat the City had hired a consultant to prepare a community credit needs assessment in order to encourage lenders to Jend more in poorer communities. 5. Project Update- South Bay Community Services Transitional Housing Mr. Harris informed the Committee that the Council would be considering SBCS' request for $800,000 in funding at its meeting on Tuesday, July 27th. The staff recommendation will be to provide $374,000 in funding for the transitional housing and no funding for the Very Low-Income portion of the project. . . . 6. Project Update- Single Room Occupancy Project Mr. Harris informed the Committee that a private developer, Barbara Orsa, bas proposed a Single Room Occupancy (SRO) project for her property near Third and C streets. (Ms. Orsa passed out information on her project to the Committee members). Because the Committee had previously expressed a strong interest in SRO projects, information on this project was being brought to the Committee's attention at this early stage. Staff would be evaluating the feasibility of an SRO at this particular site, and whether it would require a special ordinance. 7. ORAL COMMUNICATION - None 8. MEMBERS COMMENTS - NONE 9. STAFF COMMENTS - None 10. ADJOURNMENT - at 5:05 P.M. to the next regular meeting scheduled for August 26, 1992 at 3:30 P.M. '\ I :') ,/J .'; I .. .1J1"rJ/,1;4,( if. / I tr. 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