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2010 10 13 HC MinutesMINUTES HOUSING COMMISSION MEETING A Special meeting held in the Study Session Room at the La Quinta City Hall 78 -495 Calle Tampico, La Quinta, CA October 13, 2010 This meeting of the Housing Commission was called to order at 6:05 p.m. by Douglas Evans, Assistant City Manager — Development Services. I. CALL TO ORDER A. Pledge of Allegiance B. Roll Call Present: Commissioners Pam Dorsey, Teresa LaRocca, John Jamison, Sue Leider Absent: Commissioner Esperanza Polanco Staff Present: Douglas R. Evans, Assistant City Manager, Development Services, Debbie Powell, Economic Development Project Manager, Betty Sawyer, Management Assistant, Karen Frane, Management Assistant and Lori Lafond, Executive Assistant C. Introductions II. PUBLIC COMMENT: None. III. BUSINESS ITEM: 1 . Election of Chairperson and Vice Chairperson A. Nominations were opened for Chairperson Commissioner Leider nominated Commissioner LaRocca as Chairperson. There being no further nominations, nominations were closed. Housing Commission October 13, 2010 It was moved and seconded by Commissioners Leider and Jamison to elect Commissioner LaRocca as the Chairperson. AYES: Commissioners Dorsey, Jamison, Leidner. NOES: None. ABSENT: Commissioner Polanco. ABSTAIN: None. B. Nominations were opened for Vice Chairperson Chairperson LaRocca nominated Commissioner Jamison as Vice Chairperson. There being no further nominations, nominations were closed. It was moved and seconded by Chairperson LaRocca and Commissioner Leidner to elect Commissioner Jamison as the Vice Chairperson. AYES: Commissioners Dorsey and Leidner and Chairperson LaRocca. NOES: None. ABSENT: Commissioner Polanco. ABSTAIN: None. After election of Chair and Vice Chair, staff reminded the Commission to make a motion to excuse Commissioner Polanco's absence. Commissioner Leidner moved to excuse Commissioner Polanco; AYES: Commissioners Dorsey, Jamison and Leidner and Chairperson LaRocca. NOES: None. ABSENT: Commissioner Polanco. ABSTAIN: None. IV. CONFIRMATION OF THE AGENDA: Confirmed. V. CONSENT CALENDAR: None. VI. BUSINESS ITEMS: 2. Consideration of a Resolution Establishing a Time and Location for Meetings of the La Quinta Housing Commission. a. Staff recommended that the Commission meet on the second Wednesday of each month at 6:00 p.m. b. Staff stated that monthly meetings may not be necessary and can be on an as needed basis. Commissioners Dorsey and Leidner moved to adopt Resolution 2010- 001 approving a Resolution of the Housing Commission of the City of La Quinta, California, Establishing Time and Location of Housing Commission Meetings. 2 Housing Commission October 13, 2010 VII. COMMISSIONER ITEMS: None. VIII. STAFF ITEMS: 1. Discussion of the Housing Commission Work Plan Fiscal Year 2010- 2011 a. Staff presented the staff report. Chairperson LaRocca asked how many units the city controls and what they plan to do with the recently purchased homes. Staff explained that the Redevelopment Agency ( "Agency ") owns 27 homes that are Section 8 rentals and just recently purchased six homes that have been rehabilitated or are in the process of rehabilitating. A seventh recently purchased home was in escrow. Staff explained that the Agency is looking at selling these homes. Staff added that the Agency also owns Washington Street Apartments which consists of 73 units for very -low income seniors and special needs residents. Staff will give an update at a later time. Commissioner Dorsey brought up the fact that she has a few clients in the Washington Street Apartments and wanted to make sure there is no conflict of interest while serving as a Commissioner on the Housing Commission. Staff indicated that at this time, no conflict exists but will need to be discussed if the Washington Street Apartments are transferred to the Housing Authority. 2. Discussion of La Quinta Housing History a. Agency presented the staff report. Staff explained that the Redevelopment was created back in 1945 as a funding mechanism for cities to eliminate blight primarily in urban areas. It was expanded and added the affordable housing element to redevelopment which eliminates blight and make places better to live, helps with infrastructure, help with economic development as well as providing affordable housing. Redevelopment agencies oversee the redevelopment activities and, in our case, the City Council acts as the Redevelopment Agency Board. In La Quinta, the Agency has a very comprehensive housing program and that is what allowed the City to put together the Housing Commission. As part of redevelopment, the State mandates us to provide a certain number of affordable units. At this point, we are mandated to produce 2,307 affordable units and a certain percentage has to be for very -low income 3 Housing Commission October 13, 2010 households. Today, the Agency has secured 1,531 units. Over the next 20- 30 years, we have to produce another 776 affordable units, which is a challenge due to land space. Some of the things that our Agency does to produce affordable housing is purchase land and help underwrite some of the construction costs involved. As in the foreclosed home program and the Washington Street Apartments project, the Agency will purchase older units and make them available for tenants. The Agency has established a home foreclosure program where they direct the staff to go out and find homes that meet certain criteria that the Agency would purchase, rehabilitate and then try to sell them to qualified affordable buyers. If they cannot be sold, they will be put into our rental program. The Agency tries to purchases the houses that no one else wants because we don't want to take a home away from a family that wants to buy an affordable house and wants to put equity into it and rehabilitate it. The Agency watches foreclosures and homes that sit on the market or go out and find the homes we know will not sell due to their condition. When the homes are purchased, we are required to invest 25% of the value of the home in rehabilitation to be able to secure a Housing Covenant. A covenant gives us one credit for the Agency for a unit that we can count as affordable. Depending on the type of unit purchased, the affordability requirement is 45 or 55 years. If we sell the homes, the Agency explains to the buyer the different between buying an affordable house as opposed to a market rate house. When they purchase a home that has a covenant on it, for the life of that covenant (45 yrs.), the house must be maintained as an affordable house. The owner will gain equity in the house but it is based on the amount they have invested and not the value of the house. Chairperson LaRocca asked about resale restrictions as well as refinance restrictions Staff explained that the homes the Agency recently purchased were financed with first and second trust deeds. The Agency acts as the lender so the house can never be lost due to a foreclosure. Staff will discuss further at a later date. Staff discussed the Agency's affordable housing projects listed on Attachment 1. 3. Discussion of Joint Housing Commission and Housing Authority Meeting on November 9, 2010 0 Housing Commission October 13. 2010 a. Staff presented the staff report. Chairperson LaRocca stated she would like to ask the Council what their expectations are of the Housing Commission. 4. Discussion of Ethics Training for Elected and Appointed Officials a. Staff presented the staff report. IX. CORRESPONDENCE AND WRITTEN MATERIAL: None. X. ADJOURNMENT: There being no further business, it was moved and seconded by Vice Chair Jamison and Commissioner Dorsey to adjourn this meeting of the Housing Commission. This meeting of the Housing Commission was adjourned on October 13, 2010, at 7:07 p.m. AYES: Commissioners Dorsey, Jamison, Leider and Chairperson LaRocca and Commissioner Leidner. NOES: None. ABSENT: Commissioner Polanco. ABSTAIN: None. Submitted by Lori Lafond Executive Assistant N".