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Home My WebLink About1993-02-24 HAC MIN . . . MINUTES HOUSING ADVISORY COMMITTEE Wednesday February 24, 1993 3:30 p.m. Conference Room 2 Public Services Building 276 Fourth Avenue, C.V. CALL TO ORDER/ROLL CALL PRESENT: Chairman Joe Casillas, Dan Dennison, Allen King, Maggie Helton, J.R. de Jesus Chantengco, Cecilia Delgadillo ABSENT: None STAFF: Assistant Community Development Director Gustafson, Housing Coordinator Arroyo GUESTS: Merritt Hodson, Kathryn Lembo, Dan Marcus, Craig Meyer, Elenor Jackson, Gloria Olenick, Nicholas Olenick, Dave Sheldon EX-OFFICIO: Diana Flint (absent) Mitch Thompson (absent) 1. APPROVAL OF MINUTES: MSUC (HeltonlDennison)(6-0-0) to approve amended minutes of January 27, 1993. 2. PROPOSED SHORT TERM HOUSING FACILITY Kathryn Lembo of South Bay Community Services (SBCS) made a presentation on a proposal to purchase and rehabilitate a 14 unit apartment complex to develop a short term housing facility to serve homeless families in the South Bay. The site is adjacent to the proposal SBCS transitional housing project on 31 Fourth Avenue which will enable both projects to be managed together. The cost of such project is estimated to at $1,037,646 for development and approximately $160,000 for first year operation. SBCS is requesting $700,000 from the city with $650,000 to be used for development cost and $50,000 for first year operation. Dan Marcus of SBCS presented information on the distribution and conditions of homelessness throughout San Diego County, pointing out that there are only 1500 beds in the entire county and only 8 beds that serve the South Bay communities. He indicated that the development of both the transitional and short-term housing projects will add 98 beds, giving Chula Vista and the South Bay a total of 106 permanent beds; this will be equal to 5 % of the total beds county-wide. Chula Vista will still have less permanent beds than any other region of the County. Mr. Marcus indicated that SBCS was requesting funds from the cities of National City, Imperial Beach as well as from Federal and State agencies which required local jurisdiction project approval and a funding match. Mr. Casillas asked as to what happened with the K Street Villas Apartments alternative site. Mr. Marcus pointed out that this project went into escrow the same week that SBCS became aware of the units. He said that this was a good alternative but was unable to move fast enough to make an offer considering that there are many time consuming steps that need to be taken before an offer can be made. . . . Mr. King stated that the proposed project cost too much in relation to total housing assets, he doesn't want to tie up every penny we have. Ms. Lembo indicated that SBCS conducted an extensive search for potential sites. They identified several available apartment complexes, including bank-owned properties, small motels, and even analyzed the feasibility of a new construction project in East Chula Vista. Mr. Marcus stated that on a per unit cost the Civic Center Barrio Park Village Apartments were $115,000 per unit compared to $70,000 for 31 Fourth. Mr. Casillas indicated that these two projects were not comparable. Ms. Helton conunented that she was not concerned over SBCS's ability to raise the funds required or their ability to operate the facility. She cited that SBCS had a good tract record. She questioned whether relocation, development and cost of furnishing the facility was included in the total cost. Dan Marcus clarified that these costs were included and that the furniture cost was high because the items had to be durable and long lasting. Ms. Helton asked why National City could not contribute a higher amount. Ms. Lembo indicated that the amount from National City would give them a proportional participation in the facility. Ms. Delgadillo asked how many beds the facility would provide. Ms Lembo said that the facility could accommodate 50 beds which would be made available primarily to homeless families. Mr. Casillas asked whether a conditional use permit would be required, which was confirmed by Ms. Lembo. Ms. Helton asked whether there were city funds available to fund such a project. Mr. Arroyo indicated that staff was considering low/moderate income housing funds, CDBG, section 108 loan and loan repayments as potential sources. Mr. Casillas stated that funding such a project would wipe out the limited resources available with no possibility of pay back. He wanted to know how Father Joe is able to generate income from his projects. Ms. Lembo indicated that most of his sources of funds were from grants, subsidies and some income from transitional housing income. Mr. Casillas was concerned that the project costs too much, that SBCS should go back to the drawing board. He pointed out that experts told him that we can get much more for one million dollars. He recommended that a team of experts in real estate and finance be consulted. Ms. Lembo stated that SBCS Executive Board which includes experts in those fields had reviewed the proposal. Mr. Casillas recommended that members of the Economic Development Council, the Business Response Team and Leadership Council be consulted for input. Ms. Helton moved for recommending approval of the proposal. Mr. Dennison second the motion. During the discussion, Mr. Dave Sheldon of National City indicated that his city was considering allocating $250,000 to the project. Mr. Casillas indicated that he could not support the project but recommended that a group of experts be assembled to see if a better project can be developed. He felt the proposal closed off future options for the city. Mr King felt that the proposed project was too liberal and that he could not support it. Ms. Delgadillo stated that the cost were too high and that it was the wrong site to consider. Instead, she favored the concept of having the City use the money to set-up a trust fund to respond quick housing opportunities. Mr. Dennison indicated support. MSC (Helton/Dennison)(2-3-0)(Casillas, King, Delgadillo, voted no). Mr. Casillas also voted a proxy no vote for Mr. de Jesus Chantengco. Ms. Helton objected to proxy voting. 3. PROPOSED HOUSING AUTHORITY Mr. Arroyo reported that the formation of the Chula Vista Housing Authority was moving forward and that it was scheduled for City Council action on March 2, 1993. . . . 4. SAN DIEGO AFFORDABLE HOUSING COALITION - HOMEOWNERSHIP FOR LOW INCOME Mr. Craig Meyer of the San Diego Affordable Housing Coalition gave a brief presentation on the objectives of his organization. Due to limited time available he was asked to come back to a future committee meeting for a more detailed presentation. 5. STAFF COMMENTS - None 6. MEMBERS COMMENTS - None 7. ADJOURNMENT - at 5:00 p.m. to the next regular meeting scheduled for March 24, 1993 at 3:30 in the Public Services Building. [AG\A;\Oz..24-93.HAC.MIN] DlSK~12