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2017 09 13 HCHOUSING COMMISSION AGENDA 1 SEPTEMBER 13, 2017 HOUSING COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta WEDNESDAY, SEPTEMBER 13, 2017 AT 6:00 P.M. CALL TO ORDER ROLL CALL: Commissioners Johnson, Long, McDonough, and Chairperson Rogers VACANT: One seat PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the Housing Commission on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. The Housing Commission values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA ANNOUNCEMENT, PRESENTATIONS, AND WRITTEN COMMUNICATION 1. INTRODUCTION OF NEW CITY STAFF CONSENT CALENDAR 1. APPROVE MINUTES OF MAY 17, 2017 2. APPROVE MINUTES OF JUNE 7, 2017 3. APPROVE MINUTES OF JULY 12, 2017 BUSINESS SESSION - NONE HC agendas and staff reports are now available on the City’s web page: www.laquintaca.gov HOUSING COMMISSION AGENDA 2 SEPTEMBER 13, 2017 STUDY SESSION 1. REVIEW 2017/18 HOUSING COMMISSION ACTIVITY DEPARTMENT REPORTS REPORTS AND INFORMATIONAL ITEMS COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the La Quinta Housing Commission will be held on December 13, 2017, commencing at 6:00 p.m., at the La Quinta Study Session Room, 78- 495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Monika Radeva, Acting Housing Secretary, of the City of La Quinta, do hereby declare that the foregoing Agenda for the Housing Commission meeting was posted on the City’s website, near the entrance to the Council Chambers at 78-495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on September 8, 2017. DATED: September 7, 2017 Monika Radeva, Acting Housing Secretary City of La Quinta, California PUBLIC NOTICES The La Quinta City Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Commission, arrangements should be made in advance by contacting the City Clerk’s office at 777-7103. A one (1) week notice is required. If background material is to be presented to the Commission during a Housing Commission meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Secretary for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Commission regarding any item(s) on this agenda will be made available for public inspection at The Hub counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. HOUSING COMMISSION MINUTES 1 MAY 17, 2017 SPECIAL MEETING HOUSING COMMISSION MINUTES WEDNESDAY, MAY 17, 2017 A Special meeting of the La Quinta Housing Commission was called to order at 6:01 p.m. by Chairperson Rogers. PRESENT: Commissioners Johnson, Long, and Chairperson Rogers ABSENT: None VACANT: Two seats PLEDGE OF ALLEGIANCE Chairperson Rogers led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA – Confirmed CONSENT CALENDAR 1. APPROVE MINUTES OF APRIL 12, 2017 City Attorney Ihrke presented written comments submitted by Ms. Linda Gunnett, which are on file in the Clerk’s Office, requesting that the Commission do not approve the minutes as recommended. He explained pursuant to the City’s adopted Rules of Procedure (Council Resolution No. 2015-023), which govern Council, Boards’, and Commissions’ meetings, staff prepares action minutes. Motion – A motion was made and seconded by Commissioners Long/Johnson to approve the Consent Calendar as recommended. Motion passed unanimously. BUSINESS SESSION 1. REVIEW AND RECOMMEND AN AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND ASSOCIATED SUMMARY REPORT BETWEEN THE LA QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY HOUSING COALITION TO PURCHASE PROPERTY LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET FOR THE PURPOSE OF REHABILITATING CONSTRUCTING AND OPERATING AFFORDABLE RENTAL HOUSING Management Specialist Villalpando presented the staff report, which is on file in the City Clerk’s Office. CONSENT CALENDAR ITEM NO. 1 HOUSING COMMISSION MINUTES 2 MAY 17, 2017 SPECIAL MEETING City Economist McMillen introduced the following Coachella Valley Housing Coalition (CVHC) staff members: Executive Director Julie Bornstein, Multi-Family Director May Ann Ybarra, and Project Manager Mike Walsh, and said they were available to answer any questions the Commission might have. Executive Director Bornstein provided the mission statement and background of CVHC. City Economist McMillen presented an overview of the proposed Washington Street Apartments (WSA) rehabilitation project; including information on the 2007/2008 purchase of the existing WSA and adjacent vacant lot; purchase price; bond proceed expenses; and other expenses related to the planning, design, and engineering of the project rehabilitation plan. The Commission discussed the reliability of using tax credits to fund the project, through the California Tax Credit Allocation Committee, which administers the federal and state Low-Income Housing Tax Credit Programs and facilitates the investment of private capital into the development of affordable rental housing for low-income Californians; alternative funding solutions, should project costs exceed the tax credits; the addition of swimming pools to the project; and the wait list for affordable housing in La Quinta. PUBLIC SPEAKER: Ms. Barbara (no last name stated), La Quinta – introduced herself and spoke in opposition to the project. PUBLIC SPEAKER: Mr. William Cain, La Quinta – introduced himself and spoke in opposition to the project. He stated that he contacted Wolff Waters low income apartments and got notified the waiting list is five years. He said he also contacted the California Housing Partnership regarding tax credits and got confirmation that it is a competitive process. Mr. Cain spoke of the former Redevelopment Agency and the problems it encountered, comparing it to the proposed $45 million project. He proposed rehabilitation rather than construction, and presented the Commission with questions, which are on file in the City Clerk’s Office. PUBLIC SPEAKER: Ms. Mimi Miller, La Quinta – introduced herself and asked if the selected builder for the project would be local. Project Manager Walsh replied CVHC seeks and encourages local contractors. Commissioner Johnson questioned the viability of the WSA rehabilitation project and said he was in opposition to it. He noted the proposed cost for the build-out of the new units seemed high. He expressed concerns about completing the project, which has been delayed for quite some time, and the importance of ensuring that the residents do get the units remodeled and built. HOUSING COMMISSION MINUTES 3 MAY 17, 2017 SPECIAL MEETING Following this meeting, Commissioner Johnson submitted the attached written comments dated June 2 and 7 (Attachment 1) explaining his position regarding the project in further detail. City Manager Spevacek provided the historical background regarding the land annexation and the WSA rehabilitation project. PUBLIC SPEAKER: Mr. Bruce McKelvy, La Quinta – introduced himself and suggested rehabilitating a smaller portion of WSA. Motion – A motion was made and seconded by Commissioners Rogers/Long to approve the Affordable Housing and Property Disposition Agreement and associated Summary Report as recommended. Motion passed – AYES: Commissioner Long and Chairperson Rogers. NOES: Commissioner Johnson. ABSENT: None. ABSTAIN: None. STUDY SESSION – None DEPARTMENT REPORTS 1. ESTABLISHMENT OF A HOUSING AUTHORITY LOCAL AGENCY INVESTMENT FUND (LAIF) ACCOUNT Management Specialist Villalpando presented the report, which is on file in the City Clerk’s Office. REPORTS AND INFORMATIONAL ITEMS – None COMMISSIONER ITEMS – None ADJOURNMENT A motion was made and seconded by Commissioners Long/Johnson to adjourn the meeting at 7:50 p.m. Motion passed unanimously. Respectfully submitted, Marilyn Monreal, Commission Secretary / Management Assistant City of La Quinta, California Attachment: 1. Commissioner Johnson emails dated June 2 and 7, 2017 From: Joe Johnson [mailto:joejagent@aol.com] Sent: June 7, 2017 5:34 AM To: Gilbert Villalpando Subject: minutes Gil, So there are no surprises and so you have a chance to show this to whoever: Joe Johnson I don't want to take up a lot of time at the meeting over this, but I prefaced my remarks at the last meeting that I wanted to go on record questioning this project. Except for my NO vote there is no record of my concerns. Even though this meeting was well attended, most people in our city can't or won't show up, and minutes are the only way they can find out what happened. Accurate and complete minutes are crucial to good government. Because of that I will object to accepting the minutes to the last meeting. As Commissioner I represent citizens of this City, not the City government. I believe it is my job to question things that do not appear to be appropriate an d to object when things presented do not make sense to me. I thought I would be making a record of my questions and objections at the last meeting but the minutes prepared by staff completely ignored everything I said, even though I stated I was going on r ecord. It appears we have different opinions as to what that means. I am sure that was not done deliberately or under anyone's direction because falsifying a government record could be a serious offense, even if it is just the Housing Commission. I request the following to be added to the those minutes plus this entire statement be added to the minutes of this meeting: I questioned the viability of counting on the 9% tax credit. I thought I was going on record that I thought it was just going to waste another year where the tenants go without improvements. I brought up the expected National tax climate and how that affects tax credits, and we discussed the value of such credits and how that would impact revenue even if approved. There was a reasonable chance this proposal was doomed and just a waste of time. I questioned why in the previous meeting we were told there was no swimming pool for the complex, yet this proposal now has two. I did not question the need or benefits of a pool(s), only the inconsistency of the information we are given. I also mentioned how prior to this meeting I asked how many people were on the waiting list of affordable housing in this City and requested it by project. The figure given at the meeting was about 100 times what I was told prior to the meeting. I went back to the original concept of this project from 12 years ago. It was to rehab the existing units and to build 24 more this was going to cost somewhere around $15 million, which we were previously was told was "in the bank". Now we have a project of about 44 more units that will cost an additional $30 million. I questioned how this does not make any sense and appears to be a waste of money. I would think you can get more than 44 units somewhere else for $30 million. I think you could get 100 houses for that much (probably more). That would house a lot more people. I am not questioning the need, only that it is a lot of money for little gain. ATTACHMENT 1 TO MAY 17, 2017 HOUSING COMMISSION SPECIAL MEETING MINUTES I asked about construction costs and how they were determined. We were told it was a number submitted by someone the developer knew, but it was not real. When the time comes it will go for bid. I again questioned the extra costs wasted by the expansion of the project, many of which would not be incurred if we just did the original plan. Joe Johnson -----Original Message----- From: Marilyn Monreal <Mmonreal@la-quinta.org> To: Joe Johnson <joejagent@aol.com> Cc: Gilbert Villalpando <Gvillalpando@la-quinta.org> Sent: Fri, Jun 2, 2017 2:30 pm Subject: RE: Housing Commission Agenda Packet - June 7, 2017 Good afternoon Mr. Johnson, Please bring up this request to edit the minutes of May 17, 2017 at the next meeting. Thank you. Marilyn Monreal | Management Assistant City of La Quinta 78495 Calle Tampico ◦ La Quinta, CA 92253 Ph. 760.777.7016 MMonreal@la-quinta.org From: Joe Johnson [mailto:joejagent@aol.com ] Sent: Friday, June 02, 2017 2:24 PM To: Marilyn Monreal <Mmonreal@la-quinta.org> Subject: Re: Housing Commission Agenda Packet - June 7, 2017 I would like the minutes of the last Housing Commission meeting to reflect my questioning the viability of obtaining 9% tax credits and what I believe to be a waste of money, especially in the expansion of the project from its original plan to its current plan. I want to go on record that I believe that a year from now we will still not be ready to get this project done when we have to reevaluate revenue and costs. Joe Johnson -----Original Message----- From: Marilyn Monreal <Mmonreal@la-quinta.org> To: Jon McMillen (jon@tallmangroup.net) <jon@tallmangroup.net>; Gilbert Villalpando <Gvillalpando@la- quinta.org>; Teresa Thompson <Tthompson@la-quinta.org>; Karla Campos <KCampos@la-quinta.org> Cc: Monika Radeva <Mradeva@la-quinta.org> Sent: Fri, Jun 2, 2017 1:58 pm Subject: Housing Commission Agenda Packet - June 7, 2017 Good afternoon, Attached is the agenda packet for the June 7, 2017 meeting at the City of La Quinta Study Session Room beginning at 6 p.m. Have a wonderful weekend. Marilyn Monreal | Management Assistant City of La Quinta 78495 Calle Tampico ◦ La Quinta, CA 92253 Ph. 760.777.7016 MMonreal@la-quinta.org HOUSING COMMISSION MINUTES 1 JUNE 7, 2017 SPECIAL MEETING HOUSING COMMISSION MINUTES WEDNESDAY, JUNE 7, 2017 A Special meeting of the Housing Commission was called to order at 6:00 p.m. by Chairperson Rogers. PRESENT: Commission Members Johnson, Long and Chair Rogers ABSENT: None VACANT: Two seats PLEDGE OF ALLEGIANCE Chairperson Rogers led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA Management Analyst Villalpando requested that Consent Calendar Item No. 1 be pulled from the agenda. He explained staff had received written comments from Commissioner Johnson dated June 2 and 7, which were distributed to the Commission, made available to the public, and are on file in the Clerk’s Office, requesting to amend the minutes and include additional comments. Staff will make the amendments and bring the item back to the Commission at the next meeting. The Commission concurred. CONSENT CALENDAR 1. Pulled >>>APPROVE MINUTES OF MAY 17, 2017 BUSINESS SESSION – None STUDY SESSION 1. REVIEW HOUSING AUTHORITY BUDGET Finance Director Campos presented the staff report, which is on file in the Clerk’s Office. She also explained in detail the standard annual budget adoption timeline and budget oversight process, including several annual and mid-year public meetings with the City Council, the Finance Advisory Commission, and the Housing Commission to discuss and adopt the budget; monthly public meetings regarding revenue and expense reports; additional public meetings in December for financial reporting CONSENT CALENDAR ITEM NO. 2 HOUSING COMMISSION MINUTES 2 JUNE 7, 2017 SPECIAL MEETING disclosures and updates; and the required internal and external audits and federal verification. General discussion followed regarding the Coral Mountain Apartments partial loan repayment; the outstanding loan amount still due to the City; and the repayment requirements and timeline. City Attorney Ihrke explained how residual receipt payments work and the gap financing – to build an affordable housing project, which subsequently must generate enough revenue, which is subject to affordability state restrictions, to cover its expenses and then repay the built-out loan. Discussion followed regarding the Housing Authority’s revenues; the Housing Fund balances; and the Housing Authority’ anticipated expenditures. PUBLIC SPEAKER: Ms. Linda Gunnett, La Quinta – introduced herself and asked for clarification on the Housing Authority’s receivables and available cash as identified on the attached Overall Housing Fund Balance Power Point slide (Attachment 1); and the repayment timeline of the former La Quinta Redevelopment Agency (RDA) loan. Staff explained the Housing Fund balances; noted the direct correlation of the RDA loan repayment amount to regulatory requirements of the Department of Finance; and explained the loan repayment is dependent upon available residual housing funds. City Attorney Ihrke briefly explained California Senate Bill No. 107, approved by Governor Brown on September 22, 2015, which included provisions to streamline the current dissolution process for redevelopment agencies, enhance affordable housing by providing increased statewide funding, and expand the type of loans for which cities can seek reimbursement. Particularly, as it relates to La Quinta’s preparation of its RDA last and final Recognized Obligation Payment Schedule (ROPS) and projected repayment timeline. Although the fiscal year 2017/18 Housing Authority Budget was a Study Session item, which by definition is a discussion only item and does not require a vote, the Commission did make a formal motion. Motion – A motion was made and seconded by Commissioners Long/Johnson recommending that the City Council approve the Fiscal Year 2017/18 Housing Authority Budget as presented. Motion passed unanimously. DEPARTMENT REPORTS 1. UPDATE ON JOINT COUNCIL AND COMMISSION MEETING OF JULY 18, 2017 HOUSING COMMISSION MINUTES 3 JUNE 7, 2017 SPECIAL MEETING Management Analyst Villalpando stated that a Joint Meeting of the City Council and the City’s Boards and Commissions has been scheduled for Tuesday, July 18, 2017, and the Council has asked that each board/commission present their work plan for the upcoming fiscal year 2017/18. He noted the regular quarterly Housing Commission meeting of June 14, 2017 will be cancelled and a Special Housing Commission meeting is scheduled for Wednesday, July 12, 2017, at 6:00 p.m. 2. 2017 HOUSING COMMISSION APPOINTMENTS Management Analyst Villalpando said the Housing Authority conducted interviews to fill the three open full-term vacant positions on the Housing Commission at the June 6, 2017 meeting and appointed Chairperson Rogers and Commissioners Michele McDonough and Gary Harland; each appointment is for a 3-year term ending June 30, 2020. REPORTS AND INFORMATIONAL ITEMS – None COMMISSIONER ITEMS – None ADJOURNMENT A motion was made and seconded by Commissioners Long/Johnson to adjourn the meeting at 6:34 p.m. Motion passed unanimously. Respectfully submitted, Marilyn Monreal, Commission Secretary / Management Assistant Attachment: 1. Overall Housing Fund Balances (power point slide) Overall Housing Fund BalancesCash Receivables Fund Balance Revenues Expenses Ending BalanceHousing 10,600,000 6,900,000 17,500,000 919,000 (1,192,100) 17,226,900 2004 Bond 1,704,900 - 1,704,900 - (1,704,900) -2011 Bond 25,566,705 - 25,566,705 - (9,400,000) 16,166,705 44,771,60533,393,605 Estimated at June 30, 2017Estimated at June 30, 2018Cash Receivables Fund BalanceHousing 10,926,900 6,300,000 17,226,900 2011 Bond 16,166,705 - 16,166,705 27,093,605 6,300,000 33,393,605 Estimated at June 30, 2018ATTACHMENT 1ATTACHMENT 1 HOUSING COMMISSION MINUTES 1 JULY 12, 2017 SPECIAL MEETING HOUSING COMMISSION MINUTES WEDNESDAY, JULY 12, 2017 A special meeting of the Housing Commission was called to order at 6:00 p.m. by Chairperson Rogers. PRESENT: Commission Members Johnson, McDonough, and Chairperson Rogers ABSENT: Commission Members Harland and Long PLEDGE OF ALLEGIANCE Chairperson Rogers led the audience in the pledge of allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA – Confirmed CONSENT CALENDAR 1. APPROVE MINUTES OF MAY 17, 2017 2. APPROVE MINUTES OF JUNE 7, 2017 Motion – A motion was made and seconded by Commissioners Johnson/Rogers to approve the Consent Calendar as recommended. Motion failed due to the lack of quorum: ayes 2, noes 0, abstain 1 (McDonough), absent 2 (Harland and Long). BUSINESS SESSION 1. RECOMMEND SALE OF PERMANENT ROADWAY AND PUBLIC UTILITIES EASEMENT ON DUNE PALMS ROAD, SOUTH OF WESTWARD HO DRIVE (APN: 600-030-004, - 020, AND -021), TO THE CITY OF LA QUINTA FOR FUTURE ROAD WIDENING Business Analyst Villalpando presented the staff report, which is on file in the Clerk’s Office. The Commission discussed the Dune Palms Road widening design and construction phases; and staff explained in detail the construction process. Motion – A motion was made and seconded by Commissioners McDonough/Johnson to recommend the sale of permanent roadway and public utilities easement on Dune Palms Road, south of Westward Ho Drive, to the City of La Quinta for future road widening. Motion passed – ayes 3, noes 0, abstain 0, absent 2 (Harland and Long). CONSENT CALENDAR ITEM NO. 3 HOUSING COMMISSION MINUTES 2 JULY 12, 2017 SPECIAL MEETING STUDY SESSION 1. REVIEW HOUSING COMMISSION ACTIVITY DURING FISCAL YEAR 2016/17 Business Analyst Villalpando presented the staff report, which is on file at the Clerk’s Office. The Commission discussed holding future meetings at different location in an effort to increase public attendance, such as the La Quinta Wellness Center, Seasons at La Quinta, and in north La Quinta. DEPARTMENT REPORTS – None REPORTS AND INFORMATIONAL ITEMS – None COMMISSIONER ITEMS – None ADJOURNMENT A motion was made and seconded by Commissioners McDonough/Johnson to adjourn the meeting at 6:18 p.m. Motion passed – ayes 3, noes 0, abstain 0, absent 2 (Harland and Long). Respectfully submitted, Marilyn Monreal, Management Assistant City of La Quinta, California City of La Quinta HOUSING COMMISSION MEETING: September 13, 2017 STAFF REPORT AGENDA TITLE: REVIEW 2017/18 HOUSING COMMISSION ACTIVITY RECOMMENDATION Review fiscal year 2017/18 Housing Commission activity. EXECUTIVE SUMMARY  The Housing Commission (Commission) was established in 2009 to review and make recommendations on matters under the preview of the Housing Authority (Authority).  The Commission meets quarterly in the moths of September, December, March, and June.  Commission priorities for 2017/18 are to review cove rental home improvements; future housing development possibilities; current affordable housing agreements; establish an affordable housing survey for tenants and property managers; and schedule at least one offsite meeting. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The Commission was established in 2009 to review and make recommendations on matters within the preview of the Authority; except on emergency matters which the Authority, by resolution, excludes from its review. The Commission is comprised of five members appointed by the Authority (three non-tenant and two tenant seats, with one over the age of 62). The Commission meets quarterly; the fiscal year 2017/18 regular meeting dates are:  September 13,2017  December 13, 2017  March 14, 2018  June 13, 2018 Annually, the City Council holds two Special Joint Meetings with the City’s Boards and Commissions, which are usually held in January and July. The Commission will be notified when these special meetings are scheduled. Commission priorities for 2017/18 include:  Review of cove rental home improvement  Review of future housing development possibilities  Review of current affordable housing agreements  Establish an affordable housing survey for tenants and property managers  Schedule at least one offsite meeting Prepared by: Gil Villalpando, Business Analyst STUDY SESSION ITEM NO. 1 POWER POINTS HOUSING COMMISSION MEETING SEPT. 13, 2017 9/14/2017 1 Housing Commission Meeting September 13, 2017 Study Session •Review 2017/2018 Housing Commission  Activity 9/14/2017 2 Priorities  2017/18 •2 new Commissioners •Conduct quarterly meetings •Cove rental home improvements •Future affordable housing development possibilities •Review current affordable housing agreements •Survey affordable housing tenants and property  managers •Hold offsite meetings 2017/18 Meeting Dates •December 13, 2017 •March 14, 2018 •June 13, 2018 •September 12, 2018 •December 12, 2018 HAND OUTS HOUSING COMMISSION MEETING SEPT. 13, 2017 HOUSING COMMISSION MEETING - SEPTEMBER 13, 2017 - HAND OUTSTUDY SESSION ITEM NO. 1 - REVIEW 2017/18 HOUSING COMMISSION ACTIVITY HOUSING COMMISSION MEETING - SEPTEMBER 13, 2017 - HAND OUT STUDY SESSION ITEM NO. 1 - REVIEW 2017/18 HOUSING COMMISSION ACTIVITY