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2017 12 13 HCHOUSING COMMISSION AGENDA 1 DECEMBER 13, 2017 HOUSING COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta WEDNESDAY, DECEMBER 13, 2017 AT 6:00 P.M. CALL TO ORDER ROLL CALL: Commissioners Davidson, Johnson, Long, McDonough, and Chairperson Rogers VACANT: None 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. CITY OF LA QUINTA COMMUNITY WORKSHOP – JANUARY 13, 2018 2. UPDATE ON NEW HOUSING LAWS AND FUNDING SOURCES CONSENT CALENDAR 1. APPROVE SPECIAL JOINT MEETING OF THE LA QUINTA HOUSING AUTHORITY AND LA QUINTA HOUSING COMMISSION MINUTES OF NOVEMBER 20, 2017 HC agendas and staff reports are now available on the City’s web page: www.laquintaca.gov HOUSING COMMISSION AGENDA 2 DECEMBER 13, 2017 BUSINESS SESSION 1. RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS 2. RECOMMEND APPROVAL OF FINANCIAL AND COMPLIANCE REPORT FOR WASHINGTON STREET APARTMENTS FOR YEAR END JUNE 30, 2017 3. RECOMMEND APPROVAL TO EXTEND THE PERIOD FOR DEVELOPMENT OR DISPOSITION OF PROPERTIES TRANSFERRED FROM THE FORMER REDEVELOPMENT AGENCY TO THE HOUSING AUTHORITY OF THE CITY OF LA QUINTA AS THE HOUSING SUCCESSOR, PURSUANT TO HEALTH AND SAFTEY CODE 34176.1(E) STUDY SESSION – NONE DEPARTMENT REPORTS – NONE REPORTS AND INFORMATIONAL ITEMS – NONE COMMISSIONERS’ ITEMS ADJOURNMENT The next regular quarterly meeting of the La Quinta Housing Commission will be held on March 14, 2018, 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, Marilyn Monreal, Housing Secretary of the La Quinta Housing Commission 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, and 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 December 8, 2017. DATED: December 7, 2017 Marilyn Monreal, Housing Secretary City of La Quinta, California HOUSING COMMISSION AGENDA 3 DECEMBER 13, 2017 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. 4 HOUSING AUTHORITY AND HOUSING COMMISSION NOVEMBER 20, 2017 SPECIAL JOINT MEETING MINUTES Page 1 of 5 SPECIAL JOINT MEETING OF THE LA QUINTA HOUSING AUTHORITY AND LA QUINTA HOUSING COMMISSION MONDAY, NOVEMBER 20, 2017 MINUTES CALL TO ORDER – Authority and Commission A special joint meeting of the La Quinta Housing Authority and La Quinta Housing Commission was called to order at 6:00 p.m. by Chairperson Fitzpatrick. ROLL CALL: Authority Members: Evans, Peña, Radi, Sanchez, Chairperson Fitzpatrick ABSENT: None ROLL CALL: Commissioners: Davidson, Johnson, Long, McDonough, and Chairperson Rogers ABSENT: None PLEDGE OF ALLEGIANCE – Authority and Commission Authority Member Radi led the audience in the pledge of allegiance. VERBAL ANNOUNCEMENT – AB 23 was made by the Authority Secretary PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – Authority and Commission – None CONFIRMATION OF AGENDA – Authority and Commission – Confirmed CONSENT CALENDAR – Authority 1.APPROVE SPECIAL MEETING MINUTES OF NOVEMBER 7, 2017 MOTION – A motion was made and seconded by Authority Members Evans/Radi to approve the Consent Calendar as recommended. Motion passed unanimously. CONSENT CALENDAR – Commission 2.APPROVE MINUTES OF SEPTEMBER 13, 2017 MOTION – A motion was made and seconded by Commissioners Rogers/McDonough to approve the Consent Calendar as recommended. Motion passed unanimously. BUSINESS SESSION - Authority and Commission – None CONSENT CALENDAR ITEM NO. 1 5 HOUSING AUTHORITY AND HOUSING COMMISSION NOVEMBER 20, 2017 SPECIAL JOINT MEETING MINUTES Page 2 of 5 STUDY SESSION – Authority and Commission 1. UPDATE ON WASHINGTON STREET APARTMENTS PROJECT City Economist McMillen and Business Analyst Villalpando presented the staff report, which is on file at the Clerk’s Office. Authority Members and Commissioners discussed the project’s tax credits; residents’ relocation costs, including any applicable security deposits; relocation and project construction schedules, currently estimated to begin in May and be completed by October 2018; special accommodations related to the Americans with Disabilities Act, pets, parking, smoking, medical cannabis use, washing amenities, etc.; no change in rent during relocation period; the importance of ensuring continuity of in-home support services and communication; mental-health assistance; conducting interviews with each resident to determine his/her specific packing and moving needs; proving individual portable on demand storage units (PODs) to temporarily store residents’ belongings, which will be stored off-site; being proactive in aiding residents with packing and implementing a community-approach where residents help pack each other and hold joint garage sales to purge unnecessary belongings; mail delivery; providing electronic disposal garbage bins and hand dollies; temporary utilities suspension at Washington Street Apartments during the rehabilitation period and subsequent reinstatement; and ensuring transportation arrangements with SunDial Paratransit Services or a third party vendor. The Authority and Commission unanimously expressed support for the project, anticipated schedule, and staff’s efforts in planning the residents’ relocation. 2. DISCUSS HOMELESS PREVENTION FUNDING City Manager Spevacek provided a brief history on the City’s efforts and contributions on homeless prevention. Business Analyst Villalpando presented the staff report, which is on file at the Clerk’s Office. Authority Members and Commissioners discussed Coral Mountain Apartment’s proposal to make three units available for homeless housing; connecting Coral Mountain management with local homeless service providers; and, criteria used to determine an individual’s success in the program. City Manager Spevacek explained the background and source of housing revenue. PUBLIC SPEAKER: Ms. Darla Burkett, Executive Director of Coachella Valley Rescue Mission (CVRM), Indio – thanked the City for its continuous support and contributions over the years; said the influx of homeless per night averaged 38 people since Roy’s Desert 6 HOUSING AUTHORITY AND HOUSING COMMISSION NOVEMBER 20, 2017 SPECIAL JOINT MEETING MINUTES Page 3 of 5 Resource Center (RDRS) closed in June of 2017; noted this additional homeless population was coming from the west end of the valley – Thousand Palms, Palm Springs, Cathedral City, Desert Hot Springs, etc.; explained the CVRM’s emergency shelter was capped at 75 beds, thus, the gym/multi-purpose room has been converted to house more beds and meet the needs of the community, but it also poses a Fire Department compliance issue. Mr. Burkett spoke about the different support services and assistance programs CVRM offers, such alcohol and drug rehabilitation, veterans’ specialist services, mental-health, shelter for families who are victims of domestic violence, the number of meals served per day has increased from 700 to 912-920, shower amenities, bus passes, and case management to get folks on the path to independent employment and independent living. She enumerated the challenges with this process, including limited income and the lack of affordable housing units. Ms. Burkett explained that the CVRM is uncomfortable with CVAG’s model – it works for families but most individuals need services first before they’re ready for an apartment. She explained the process from CVRM to housing and the services provided during that time. She added that the CVRM has about 30 people ready for the move into an apartment/house but finding rents they can afford is difficult. Authority Members and Commissioners discussed CVRM’s case management services; the lack of incentives for homeowners to rent to such organizations; Section 8 California housing assistance program for families only, but not for single homeless population; 30% influx in expenses due to the RDRS’s closure; on-site mental health assistance; the diverse make up of homeless population – families, seniors /with disabilities, mental health and drug abuse; the inability to further expand in the current facility as it has been fully developed; and the strong collaboration with outside agencies. PUBLIC SPEAKER: Ms. Linda Barrack, President and CEO of Martha’s Village and Kitchen (MVK), Indio – said homeless services are usually underfunded; MVK takes a valley-wide approach in dealing with this issue; noted there has been an influx of homeless from the west-end of the valley averaging 60 beds per night; MVK has been operating at capacity since RDRS’s closure; there has been a substantial increase of large homeless families, usually of eight or more; explained the sensitivity each case must be handled so that homeless do not lose their benefits; noted the wait for Section 8 housing assistance is 8 to 10 years. Ms. Barrack commended Desert Healthcare District (DHCD) for initiating the $103,000 match program and said it was a magnificent gift that has to be handled properly and nurtured. Authority Members and Commissioners discussed how the three affordable housing units at Coral Mountain apartments will be utilized; the support services needed for homeless population to stay on the recovery and stabilizing program and be successful; MVK’s success rate of homeless graduating from their program; the possibility of dedicating additional affordable housing units in other communities in the valley; and the infrastructure benefits and importance of providing homelessness prevention assistance, which if not prevented results in average tax-payer expense of $44,000 per year in emergency room visits, incarcerations, police services responses, etc. 7 HOUSING AUTHORITY AND HOUSING COMMISSION NOVEMBER 20, 2017 SPECIAL JOINT MEETING MINUTES Page 4 of 5 PUBLIC SPEAKER: Ms. Donna Craig, Chief Grants/Operations Officer with DHCD – said DHCD is committed to help raise matching funds to support homelessness efforts in the valley; noted the program included a $103,000 DHCD contribution and a dollar for dollar match to each City contribution of up to $103,000 to programs serving residents within the DHCD borders; and explained the process used to approve agreements and distribute the matching funds. Authority Members and Commissioners discussed the verification method used to determine if a client was within the DHCD territory; criteria to set aside some affordable housing units for the homeless; the “No Place Like Home Program”; and, balancing the need of those that are homeless with those on affordable housing waiting lists since affordable housing prevents homelessness. PUBLIC SPEAKER: Ms. Cheryll Dahlin, Management Analyst, Coachella Valley Association of Governments (CVAG), Palm Desert – showed a power point presentation on CVAG’s program. PUBLIC SPEAKER: Mr. Damien O’Farrell, CEO of Path of Life Ministries, Riverside – explained the mission of Path of Life Ministries (POLM) to provide prevention, intervention and stabilization services. Authority Members and Commissioners discussed Roy’s Desert Resource Center budget, services and transition plans; the frequency of case management services once housed; rapid rehousing; outreach to landlords to provide info on services available for struggling tenants (to prevent homelessness); scattering crisis stabilization housing around the Valley to be sensitive to neighborhoods; use of coordinated entry methods; basis of budget estimates; POLM hotline and office locations; need to address the causes of homelessness and the lack of affordable housing; importance of locating crisis housing along bus routes; timeline for La Quinta’s involvement; La Quinta’s fulfillment of its affordable housing obligation with a large number of units; need to concentrate of the needs within La Quinta such as a prevention program; rent stabilization programs formatted to prevent gifts of public funds; tying La Quinta grants to servicing those from 92253 zip; providing loans instead of grants so it’s a self-sustaining program; giving seniors a priority in any rental assistance program; explore larger rentals for senior group living; and, assigning restrictions on how La Quinta’s $103,000 donation is used. Councilmember Radi summarized three options for La Quinta’s $250,000 budget: 1. Divide the budget equally between the two local agencies that service La Quinta, i.e. CVRM & MVK and forgoing DHCD’s matching funds; 2. Accept Coral Mountain Apartment’s trial offer, allocate $103,000 to POLM for the SHCD matching funds, and divide the balance between CVRM & MVK; or 3. Allocate $103,000 to POLM and split balance between CVRM & MVK. In addition, ask landlords to provide info on programs as part of their lease agreement and inform them that funds are available to renters for homeless prevention. 8 HOUSING AUTHORITY AND HOUSING COMMISSION NOVEMBER 20, 2017 SPECIAL JOINT MEETING MINUTES Page 5 of 5 Authority Members and Commissioners expressed general support for option #2; interest in increasing the grant to $100,000 to MVK; conditioning funds on periodic reports with metrics of those being served; reevaluation after six months; and, tenant repayment of all or a portion over time. PUBLIC HEARINGS – Authority and Commission – None DEPARTMENTAL REPORTS – Authority and Commission – None AUTHORITY MEMBERS' AND COMMISSIONERS’ ITEMS Authority Member Peña invited the Commissioners to attend the Coachella Valley Association of Governments Valley-Wide Homelessness Committee meetings held on Wednesdays, at 10:00 a.m., every other month. REPORTS AND INFORMATIONAL ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Authority Members Radi/Evans to adjourn at 9:00 p.m. Motion passed unanimously. There being no further business, it was moved and seconded by Commissioners Long/Davidson to adjourn at 9:01 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, Deputy Secretary La Quinta Housing Authority 9 10 City of La Quinta HOUSING COMMISSION MEETING: December 13, 2017 STAFF REPORT AGENDA TITLE: RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS RECOMMENDATION Recommend approval to the Housing Authority of one of two funding options to provide assistance to area homeless service providers; Coachella Valley Rescue Mission, Martha’s Village and Kitchen, Coachella Valley Association of Governments, and/or Path of Life Ministries. EXECUTIVE SUMMARY  The Housing Commission (Commission) and Housing Authority (Authority) held a joint meeting on November 20, 2017, and recommended allocating up to $250,000 of Housing Authority funds to area homeless service providers.  Staff offers two funding options for consideration: o Option 1: Provide $50,000 to Coachella Valley Rescue Mission (CVRM), $100,000 to Martha’s Village and Kitchen (Martha’s Village), and $20,000 to Path of Life Ministries (POLM). o Option 2: $53,000 to CVRM, $103,000 to Martha’s Village, and $103,000 Coachella Valley Association of Governments (CVAG) with a $103,000 match donation from the Desert Healthcare District (DHD). FISCAL IMPACT Authority funds are available in account number 243-0000-60532. BACKGROUND/ANALYSIS On November 20, 2017, the Authority and Commission held a special joint meeting to speak with area homeless service providers and discussed funding options for their programs. After the meeting with area providers and hearing their backgrounds, needs, and wishes, the Commission and Authority directed staff to provide funding programs for Commission and Authority consideration. BUSINESS SESSION ITEM NO. 1 11 Staff proposes the following funding options: Option 1: Provide $170,000 in total contributions as follows:  The City has already provided CVRM with $50,000 from the General Fund this fiscal year. An additional $50,000 can be provided using the Authority as a funding source;  Provide Martha’s Village with $100,000 for their services; and  Partner with POLM to administer up to $20,000 for a rent intervention/stabilization program for La Quinta residents. Option 2: Provide $259,000 in total contributions, which breaks down to $103,000 to each service provider as follows:  $53,000 to CVRM for a total of $103,000 in contributions for the year;  Provide Martha’s Village with $103,000 in funding for their services; and  Provide $103,000 in funding to CVAG which will be matched in-kind by DHD. The funds donated to CVAG would be stipulated to go directly to POLM, the service provider for CVAG’s homeless program, and must be used to aid homeless individuals in the La Quinta area. Additionally, $20,000 would be set aside for a rent intervention/stabilization program that will be administered by POLM. Each organization will be required to provide a quarterly report on their use of the funds, indicate how many individuals from La Quinta were assisted, and what services they utilized. ALTERNATIVES The Housing Commission could elect to have staff proceed with one of the funding options or direct staff with a new option. Prepared by: Angela Ferreira, Management Specialist Approved by: Frank J. Spevacek, Executive Director 12 City of La Quinta HOUSING COMMISSION MEETING: December 13, 2017 STAFF REPORT AGENDA TITLE: RECOMMEND APPROVAL OF FINANCIAL AND COMPLIANCE REPORT FOR WASHINGTON STREET APARTMENTS FOR YEAR END JUNE 30, 2017 RECOMMENDATION Recommend approval of the Financial and Compliance Report for Washington Street Apartments for the year ended June 30, 2017. EXECUTIVE SUMMARY  The United States Department of Agriculture (USDA) requires the Housing Authority (HA) to annually prepare and approve a financial audit (Attachment 1)  No reportable conditions of non-compliance or internal control deficiencies were found. FISCAL IMPACT – None. BACKGROUND/ANALYSIS Washington Street Apartments is a 73-unit complex for very low and low-income senior and disabled households. The USDA provides rent subsidies, and an annual audit is required. Joyce Rethmeier, CPA prepared an audit and no reportable conditions of non- compliance or internal control deficiencies were found. During the fiscal year ending June 30, 2017, operating revenues were $635,001 and expenses were $529,359, resulting in a net income of $105,642. Non-operating expenditures (depreciation & amortization and asset fee) were $100,915, resulting in an increase in net assets for the year of $4,727. ALTERNATIVES Staff has reviewed and verified the report and does not recommend an alternative. Prepared by: Angela Ferreira, Management Specialist Approved by: Frank J. Spevacek, Executive Director Attachment: 1. Washington Street Apartments Financial and Compliance Report BUSINESS SESSION ITEM NO. 2 13 14 15 ATTACHMENT 1 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City of La Quinta HOUSING COMMISSION MEETING: December 13, 2017 STAFF REPORT AGENDA TITLE: RECOMMEND APPROVAL TO EXTEND THE PERIOD FOR DEVELOPMENT OR DISPOSITION OF PROPERTIES TRANSFERRED FROM THE FORMER REDEVELOPMENT AGENCY TO THE HOUSING AUTHORITY OF THE CITY OF LA QUINTA AS THE HOUSING SUCCESSOR, PURSUANT TO HEALTH AND SAFTEY CODE 34176.1(E) RECOMMENDATION Recommend approval to extend the period for development or disposition of properties transferred from the former Redevelopment Agency to the La Quinta Housing Authority as the housing successor, pursuant to Health and Safety Code 34176.1 (e) EXECUTIVE SUMMARY On August 31, 2012, the Finance Department approved an asset transfer list of properties (Attachment 1) that were transferred from the former Redevelopment Agency to the City of La Quinta (Agency) to the La Quinta Housing Authority (Authority) and recognized the properties as housing assets. Pursuant to Health and Safety Code Section 33334.16, the Agency had five (5) years from August 31, 2012, to either develop or dispose of the properties with the net proceeds returned to the Low and Moderate-Income Housing Fund. The five (5) year term expired August 31, 2017. Staff requests that the Housing Commission (Commission) recommend approval to extend the five (5) year time frame to August 31, 2022. FISCAL IMPACT The Authority will continue to pay for the maintenance of the properties until they are sold or developed for affordable housing. BACKGROUND/ANALYSIS The Authority serves as the successor housing agency to the Agency. When the Authority assumed the Agency’s housing assets and functions, the Agency transferred properties to the Authority pursuant to the Housing Asset Transfer list approved by the Department of Finance (DOF). BUSINESS SESSION ITEM NO. 3 47 Health and Safety Code Sections 33334.16 and 34176.1 (e) require that the Authority initiate activities to develop affordable housing on the properties within five (5) years from the date the DOF approved the transfer of the properties as housing assets, which was August 31, 2017. This recommendation will extend the deadline by five (5) years to August 31, 2022. This will give staff additional time to carry out plans to either develop the properties with Low- and Moderate-Income housing or sell the properties and deposit the proceeds into the Low- and Monderate-Income Housing Fund to be used for future affordable housing development. ALTERNATIVES Staff does not recommend an alternative. Prepared by: Angela Ferreira, Management Specialist Approved by: Frank J. Spevacek, Executive Director Attachments: 1. Subject Properties 1-A APNs 600-030-004, 600-030-020, 600-030-021 1-B. APN 770-174-002 Title Report 1-C. APN 773-233-019 Title Report 1-D. APN 773-223-022 Title Report 1-E. APN 773-234-015 Title Report 48 ATTACHMENT 1 49 50 ATTACHMENT 1-A 51 52 53 54 ATTACHMENT 1-B 55 ASDA 56 ATTACHMENT 1-C 57 58 ATTACHMENT 1-D 59 60 ATTACHMENT 1-E 61 62 NO HAND OUTS HOUSING COMMISSION MEETING DECEMBER 13, 2017 POWER POINTS HOUSING COMMISSION MEETING DECEMBER 13, 2017 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comWinter 2017 Affordable Housing OverviewLa Quinta City Attorney’s OfficeRutan & Tucker, LLPBill IhrkeCity AttorneyRutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comBACKGROUND FOR PRESENTATION• California’s “Housing Crisis”•Estimates of 100,000 new homes/units needed each year• Effects of the end of “20% Set-Aside” from Community Redevelopment Law•Rise in Homelessness2 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comLEGISLATURE’S RESPONSE•“Package” of Bills Signed by Governor¾Local Agency Planning Mandates & Options¾Developer Incentives¾Funding Sources3Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comAmendments to Housing Accountability Act•SB 167, AB 1515, and AB 678 collectively amended the Housing Accountability Act (“HAA”) or “Anti-NIMBY Act” (Government Code § 65589.5)•The HAApreviously placed a number of restrictions on a local agency’s ability to disprove both affordable housing and market rate housing projects. •These amendments further limit a local agency’s ability to disapprove or reduce the density of residential projects•Applies to charter and general law cities4 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comHousing Accountability Act (continued)•In sum, to deny any housing project, a local agency must now either –determine the proposed project does not comply with objective general plan, zoning or subdivision criteria or standards within one to two months of a completed application, or –find that a preponderance of the evidence shows that the project would have a specific adverse impact on public health or safety and that the impact cannot be mitigated. •NOTE: HAA does not circumvent or override the requirements of the California Environmental Quality Act (“CEQA”), per section 65589.5(e).5Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com6Senate Bill 2•SB 2 (Atkins), the Building Homes and Jobs Act, establishes a funding source for affordable housing through a $75 recordation fee on specified real estate transaction documents, in order to generate money for affordable housing, supportive housing, emergency shelters, and transitional housing. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comSenate Bill 3•SB 3 (Beall)authorizes $4 billion in general obligation bonds for affordable housing programs and infill infrastructure projects, as well as a veteran’s home ownership program. SB 3 must be approved by voters next November.7Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comSenate Bill 35•SB 35 (Wiener)streamlines the approval process for infill developments in local communities that have failed to meet their Regional Housing Need Assessment numbers, subject to meeting thresholds in the statute. 8 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com9Senate Bill 166•SB 166 (Skinner) ensures that cities the “no net loss” requirement and maintain an ongoing supply of housing for lower and moderate-income households. Cities and counties are additionally required to make specified written findings if the city or county allows development of any parcel with fewer units by income category than identified in the housing element for that parcel. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comSenate Bill 540•SB 540 (Roth)allows local jurisdictions to establish a Workforce Housing Opportunity Zone by preparing an environmental impact report, holding public hearings, and adopting a specific plan that meets certain requirements. These zones would focus on workforce and affordable housing in areas close to jobs and transit. 10 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comAssembly Bill 73•AB 73 (Chiu)allows a city or county to create a “Housing Sustainability District” to complete upfront zoning and environmental review in order to receive incentive payments for development projects that are consistent with the district’s ordinance.11Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comAssembly Bill 1505•AB 1505 (Bloom) authorizes local governments to establish on-site inclusionary housing requirements for new residential rental projects. This bill also authorizes HCD to review an ordinance that requires more than 15% of the total number of units rented in the development be affordable to, and occupied by, households at 80% or less of the area median income. The bill would authorize the department to request, and require that the local agency provide evidence that the ordinance does not unduly constrain the production of housing by submitting an economic feasibility study that meets specified standards.12 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comHousing Cases•Cal. BIA v. City of San Jose (2015) 61 Cal.4th435¾Significant case¾Inclusionary ordinance valid exercise of police power¾No exaction under Takings Clause¾Reasonably related to broad general welfare13Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comHousing Cases (Post-RDAs)•Cuenca v. Cohen (2017) 8 Cal.App.5th200¾Stipulated judgments requiring former RDA tax increment for affordable housing purposes were enforceable obligations, but¾RDA Dissolution Law eliminated tax increment and prohibited new obligations for unencumbered funds.•Covarrubias v. Cohen(2016) 3 Cal.App.3d 1229 [no continued 20% set-aside payments]14 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comHousing Cases (Planning/Zoning)•Kennedy Comm’nv. Huntington Beach(2017) 16 Cal.App.5th841¾Charter cities exempt from requirement that specific plan be consistent with general plan. (Gov. Code § 65700)¾Unequivocal statement in charter/ordinance required for S.P./G.P. consistency to apply.¾City amended specific plan to lower unit numbers, and challenge based on inconsistency with Housing Element/G.P.¾Amended S.P. resulted in RHNAshortfall of affordable units, but city seeking Housing Element amendment with State HCD15Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.comHousing Cases (Planning/Zoning)•Kutzkev. City of San Diego(2017)11 Cal.App.5th1034 ¾Record supported city council reversal of planning commission approval of in-fill small lot subdivision ¾Not consistent with community plan and detrimental to health, safety, and welfare16 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com“Take-Aways” for La Quinta•Minimal impact •Housing Element/RHNA Compliance•Standard practice of making findings with supporting materials and evidence•Review/Turn-around time for review of housing development permit applications•Additional reporting requirements for staff17 12/14/2017 1 Housing Commission Meeting December 13, 2017 Business Session 1 RECOMMEND FUNDING OPTION FOR AREA HOMLESS PREVENTION PROGRAMS 12/14/2017 2 OPTION 1: PROVIDE $170,000 IN TOTAL  CONTRIBUTIONS •City previously provided CVRM with $50,000 from  the General Fund this fiscal year. An additional  $50,000 can be provided  using the Housing  Authority as a funding source •Provide Martha’s Village with $100,000 for  their  services •Partner with POLM to administer up to $20,000 for   a rent intervention/stabilization program for La  Quinta residents OPTION 2: PROVIDE $259,000 IN TOTAL  CONTRIBUTIONS •$53,000 to CVRM for  a total of $103,000 this fiscal  year •$103,000 to Martha’s Village •$103,000 to CVAG/Path of Life Ministries The Housing Authority has funding that can be used for  extremely low and very low housing service programs.  12/14/2017 3 Business Session 2 WASHINGTON  STREET APARTMENTS  FINANCIAL COMPLIANCE REPORT Washington  Street Apartments Financial Compliance Report •USDA requires the Housing Authority to annually  prepare and approve a financial audit •No reportable conditions of non‐compliance or internal  deficiencies were found 12/14/2017 4 BUSINESS SESSION 3 5 YEAR EXTENSION FOR DEVELOPMENT OR  DISPOSITION OF HOUSING AUTHORITY  PROPERTIES 1‐A Dune Palms  and Westward  Ho 12/14/2017 5 1‐B Washington Street and Avenida La Fonda 1‐C Avenida Villa and Calle Sonora 12/14/2017 6 1‐D Avenida Herrera and Calle Sonora 1‐E Avenida Navarro  and Calle Durango 12/14/2017 7 Housing Commission Meeting December 19, 2017