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HomeMy WebLinkAbout1992-08-26 HAC MIN . . . MINUTES HOUSING ADVISORY COMMITTEE Wednesday August 26, 1992 3:30 P.M. council Conference Room City Hall 276 Fourth Avenue, C.V. CALL TO ORDER/ROLL CALL The meeting was called to order at 3:34 P.M. PRESENT: Cecilia Delgadillo, Joe Casillas, Dan Dennison, Allen King, Maggie Helton, J.R. de Jesus Chantengco ABSENT: Kathleen Kearney STAFF: Assistant Community Development Director Gustafson, Housing Coordinator Arroyo, Community Development Specialist Harris GUESTS: Merritt Hodson EX-OFFICIO: Diane Flinet, Mitch Thompson 1. APPROVAL OF MINUTES: MSC (HeltonlDennison)(4-0-2) to approve July I, 1992 minutes (two members were late and did not vote on this motion) MSC (King/Dennison)(6-0) to approve July 22, 1992 minutes MSC (KinglDennison) (6-0) to approve June 24, 1992 minutes MSC (King/Chantengco) (6-0) to approve May 27, 1992 minutes 2. HOME PROGRAM DESCRIPTION David Harris presented a revised HOME program description for discussion and recommendation. He eXplained that the staff had evenly divided funds between the New Construction, Rental and Owner, and the Acquisition, Rental and Owner, categories in order to provide a lot of flexibility in determining which projects to fund. In addition, the City may reallocate the funds at any time without HUD approval. Mr. Casillas asked for an explanation of the Home Ownership categories. Mr. Harris gave examples of the type of projects which could be funded. Under New Construction-Owner, the City could assist a sweat equity project; under Acquisition- Owner, the City could provide deferred second loans on new homes in the eastern communities. Me. Thompson stated that he would rather see a homeownership program assisting families on the west side in order to stabilize older neighborhoods with declining homeownership and increasing rental properties. For example, he has suggested that SBCS acquire the Palo de Amo condominiums on Kingswood Dr. Mrs.. Helton disagreed saying that too much low-income is dumped on the western side of the City. Mr. Casillas stressed the need for balanced communities which can be accomplished through mechanisms which make home ownership affordable in the eastern communities. Mr. King felt that the homes in eastern ChuIa Vista are too expensive to subsidize. Mr. Thompson pointed out that homes on the eastern side might require a $30-50,000 subsidy, whereas the money would go much further on the western side. He suggested that a shared equity cooperative might be the most cost effective approach. . Mr. Harris reviewed the Resale Provisions in the HOME program description, which require 15-20 years of affordability. Mr. Thompson was concerned that deed restrictions might be too restrictive. Mr. Casillas stressed the need for the resale provisions to be flexible. Mr. Harris responded that HUD regulations impose certain requirements, such as requirements that subsequent buyers be low-income and the first owner receive a "fair return". Mr. Thompson stated that, with these provisions, we could potentially be asking for a lot of trouble; he cautioned that we might be alienating property rights. Mrs. Delgadillo emphasized the need to use the homeownership program to maintain balanced communities as the City grows to the east; we need to take this approach now before the balance becomes a problem. She was concerned about the imbalance if an assisted homebuyer is allowed to sell their home to other than low-income homebuyers. She suggested that the City maintain a list of prospective low-income homebuyers to ensure that assisted homes are sold to low-income purchasers and remain affordable. Mr. Chantengco mentioned the land set-aside for public services in the new communities which also affects project economics. Me. Casillas stressed the importance of the land use element, recalling the recommendation of the Blue Ribbon Housing Element committee to review the density provided in the eastern community developments. Mr. Chantengco felt that rental has a greater impact for a larger number of people, but likes a combination of approaches. He agreed that the land use element should be reviewed. Mr. Casillas asked why the HOME program description hadn't been mailed out ahead of the meeting. Mr. Harris responded that the Committee had reviewed a previous draft of the HOME program description and that this final draft had not been completed in time to be mailed out. He emphasized that the Committee could recommend any changes they wanted. MSC(Helton/Dennison)(3-0-1-3)(Kearney absent)(Casillas, King, and Chantengco abstained) To recommend that the Council approve the HOME program description in concept. Motion failed. . MR. Casillas stated that he would like to increase the opportunities for homeownership and suggested that the HOME funds be evenly divided between New Construction-Owner and Acquisition-Owner. Mr. Thompson countered that the City should keep some funds in "Rental" categories in order to leverage tax credits or other funds. Mr. Gustafson added that the City is working on some rental projects which might require HOME assistance: the conversion of the Royal Vista Hotel to senior housing and the acquisition of Bayscene Mobilehome Park by a non-profit. Mrs. Helton asked if the senior housing would include units for disabled person too and Mr. Gustafson said yes. Mr. Casillas made a motion to recommend that all the HOME funds be allocated in the home ownership categories. Mr. Chantengco said he wanted to keep some funds in rental and suggested that $375,000 be allocated to Acquisition-Rental. MSC (Helton/Delgadillo) (6-0-1 Kearney absent) To recommend to the City Council that the HOME funds be allocated as follows: for New Construction-Owner, $375,000; for Acquisition-Rental, $375,000. The motion was approved. 3. PROJECT UPDATES Mr. Harris reported that the City Council had approved $374,000 of Redevelopment housing funds for SBCS to acquire the 12 units at 17 Fourth Avenue, but they stipulated that the selling price be reduced. Mr. Arroyo reported that the City Council directed staff to fully investigate and report back on the establishment of a Housing Authority. This report will include a step-by-step schedule and fiscal analysis. He emphasized that the establishment of a Housing Authority will give the City local autonomy. . . . . Ms. Helton reported that she, Mr. Dennison, and Mr. Chantengco had attended the grand opening of the Dorothy Street Manor public housing project. They toured the units and were very pleased with them. She recommends some changes for future units designed for the disabled. She talked to some of the families who will be moving in and reported that they are very pleased. The children especially liked the green lawns. 4. ORAL COMMUNICATION - None 5. MEMBERS COMMENTS - Mr. Casillas asked that the Committee nominate a vice-chairman. Mr. King was nominated for the position and was unanimously approved by the members. Mrs. Helton suggested that the Housing Advisory Committee become a Commission. Mrs. Helton also suggested that Mrs. Kearney be dropped from the HAC. 6. STAFF COMMENTS - Mr. Harris explained that the HAC is not officially chartered but that staff will follow-up on this suggestion with the Mayor, City Manager, and City Attorney. This issue will be on the next agenda for the HAC. 7. ADJOURNMENT - at 5:00 P.M. to the next regular meeting scheduled for September 23, 1992 at 3:30 P.M. in the Public Services Building. / ~-/()""'p/ #.<1// / David Harris, Recorder': /' [AG/A:\08-26-92.HAC-MIN] DISK #6