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HomeMy WebLinkAbout1993-07-28 HAC MIN . . . MINUTES HOUSING ADVISORY COMMITTEE Wednesday July 28, 1993 3:30 p.m. Conference Room 2 Public Services Building 276 Fourth Avenue, C.V. CALL TO ORDER/ROLL CALL PRESENT: Casillas, Dennison, Helton, King, Googins ABSENT: Delgadillo, de Jesus Chantengco (excused ahsence) STAFF: Juan Arroyo, Housing Coordinator GUESTS: Merritt Hodson EX-OFFICIO: Mitch Thompson (Absent) 1. APPROVAL OF MINUTES April 21, 28, and May 26 minutes were approved. MSC (King/de Jesus Chantengco)(5-0-2 Delgadillo, de Jesus Chantengco absent) to approve Maggie Helton excused absence month of May. 2. BA YSCENE MOBILEHOME PARK Mr. Arroyo explained the background of the Bayscene Mobile Home Park acquisition project. At the April 21, 1993 the Housing Advisory Committee reviewed several proposals from non-profit corporation interested in owning and operating Bayscene Mobile Home Park. They voted to establish a priority ranking of the proposals. Ranking resulted as follows: (1) COACH (2) CCCC (3) SBCS. Subsequently, issues were raised regarding COACH's creditability and solvency. When the issues were researched by staff, they proved to be of legitimate concern. At about the same time, South Bay Community Services (SBCS) withdrew its proposal. As a result of these developments staff solicited and reviewed two additional proposals, one was from EEXCEL, and the other was a resubmittal for SBCS in conjunction with CCCC. These proposals were given to the RFP Selection Committee to review and the Committee recommended the joint venture of SBCS with the CCCC with the condition that CCCC would only be involved in the project for a maximum of three years. The committee recommended SBCS with CCCC because of the strengths of both organizations. Staff recommended to the Housing Advisory Committee to support the recommendation of the RFP committee. Maggie Helton expressed concern that since Mr. Glen Googins, was associated with SBCS he should abstain from voting on the issue. Mr. Googins acknowledge and abstained from discussion and voting on the issue. During discussion Joe Casillas indicated concern over the housing experience of SBCS and indicated that the organization's experience was limited to the operation of a runaway shelter and questioned the ability to own and manage a mobilehome park. Mr. Arroyo indicated that the joint venture proposal of SBCS/CCCC provide a balance between administrative and housing experience essential to the project. MSC (HeItonlDennison) (2-1-2-2) Delgadillo, de Jesus Chantengco absent; Googins abstained because he is associated with SBCS) to approve staff recommendation to support the recommendations of the RFP committee. King also abstained because he feels the city is spending entirely too much money we don't have. There was a proxy vote by Casillas for de Jesus Chantengco voting against the project. There will be a discussion on proxy voting in the next scheduled meeting of August to determine if proxy voting is appropriate. . . . 3. AT-RISK HOUSING AND TENANT OWNERSHIP Me. Arroyo reported that in the City of Chula Vista, there are four projects involving 386 units of affordable housing which were constructed during the 1970s with low-interest loans from the federal government. In return, developers entered into agreements with the Department of Housing and Urban Development (HUD) which restricted occupancy to low income households and regulated rent. Income Housing Preservation and Resident Homeownership Act (LIHPRHA) which establishes a formal process for the preservation of these "as-risk" units. With the passage of LIHPRHA, staff began working with the owners of the City's four projects in order to assure that these 386 units remain affordable. To date, the owners of Rancho Vista and Castle Park have notified HUD that they intend to utilize the provisions of ELIHPA. Because of ELIHPA's provisions, it is staffs opinion that these owners will retain ownership and utilize the incentives offered by HUD. Per LIHPRHA, the project was inspected for rehabilitation needs, and after this inspection was completed, the owner began discussing selling his units to ALPHA Project which is a non-project organization located in El Cajon and San Diego. The owner of the Palomar Apartments has notified HUD of his intention to sell, and he has tentatively agreed to work with South Bay Community Services as a prospective purchaser. Unfortunately, for the past nine months, the preservation process has been stalled in the HUD office in Los Angeles, which is the HUD office charged with valuing both Oxford Terrace and Palomar. It appears that the preservation process may be moving forward in the near future. During this nine month delay, both the ALPHA Project and South Bay Community Services have met with the residents of Oxford Terrace and Palomar. The Legal Aid Society of San Diego has also met with the residents of both projects to ensure that the residents are informed as to the opportunities afforded them under LIHPRHA. To date, due to the delays caused by HUD, the owners of Oxford Terrace and Palomar have not made any definite decisions as to who will buy their projects. Committee accepted the report and praised Alisa Rogers for her role in this project. Mr. Arroyo explained that the first option for ownership is made available to the tenants, but it is up to the owner to consent to this option. Mr. Arroyo indicated that the HAC will be kept informed as to future developments regarding this issue. 4. ORAL COMMUNICATION - None 5. STAFF COMMENTS - a) Short-Term Housing Project - Mr. Arroyo eXplained to committee that the Planning Commission had voted 7-0 to approve the C.U.P. and negative declaration of project. He also indicated that City Council voted to approve same by a vote of 3-1 with one abstention. Funding approved by City Council is tentatively scheduled for August 10, 1993. b) CRA Credit Needs Assessment Report - Mr. Arroyo indicated that the report was still in draft form and requested committee members to make comments. The report will serve as the basis for making recommendations on how to improve credit needs. 6. MEMBERS COMMENTS - Mr. Casillas requested staff to research with City Attorney the issue of proxy voting. He would like to know whether such a voting method is acceptable considering that committee members have used it in the past involving important issues. Staff is to research matter with legal department and will report back to committee. Mr. Casillas reported that committee member Delgadillo will be resigning from committee because the is moving to Riverside. Mr. Googins reported that he had accepted position with City of Chula Vista City Attorney's office and thought that he may not be able to continue to be a voting member of HAC. Committee members asked whether Mr. Googins could continue in a advisory capacity which will be looked . into by Staff. Maggie Helton requested a status report on the formation of the Housing Advisory Commission. Mr. Arroyo reported that the ordinance was being reviewed by legal and that it was tentatively scheduled to go before Council August 24, 1993. Maggie Helton indicated that committee should review the final version of the ordinance before it is presented to Council and that since the next HAC meeting is not scheduled to August 25, 1993 it would be advisable for the HAC to meet August 18, 1993 if HAC had not in the past approved the ordinance. Staff will research issue and will notify HAC if a special meeting is required. 7. ADJOURNMENT - at 5:00 p.m. to the next regular meeting scheduled August 25, 1993 in the Public Services Building, u~~erwise established by staff. C~ W c;{~,~- ReJitder, Juan P. Arroyo [AG/B:\7-28-93.MIN] Disk #4 . .