2011 04 27 HCzo :,
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HOUSING COMMISSION
AGENDA
A Special Meeting to be Held at the
La Quinta City Hall Session Room
78-495 Calle Tampico, La Quinta, California
April 27, 2011
6:00 p.m.
Beginning Resolution No. 2011-001
Beginning Minute Motion 2011-001
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
PUBLIC COMMENT
This is the time set aside for public comment on any matter not scheduled for public
hearing. Please complete a "Request to Speak" form and limit your comments to three
minutes. When addressing the Housing Commission, please state your name and
address.
CONFIRMATION OF AGENDA
CONSENT CALENDAR
1. Approval of the Minutes for the Special Meeting of January 25, 2011
BUSINESS ITEMS
1. Consideration of Housing Commission Work Plan for Fiscal Year 2011-2012
2. Consideration to Sell Foreclosed Homes to Income -Qualified Buyers
COMMISSIONER ITEMS
None.
0 6
STAFF UPDATES
1. Update on the La Quinta Redevelopment Agency and Housing Authority
2. Status Report on the Washington Street Apartments
CORRESPONDENCE AND WRITTEN MATERIAL
None.
ADJOURNMENT
DECLARATION OF POSTING
I, Lori Lafond, Executive Assistant of the City of La Quinta, do hereby declare that the
foregoing.Agenda for the La Quinta Housing Commission Meeting of April 27, 2011, was
posted on the outside entry to the Council Chamber, 78-495 Calle Tampico, and the bulletin
board at the La Quinta Post Office located at 51-321 Avenida Bermudas, La Quinta, California
on April 25, 2011.
Dated: April 25, 2011
44�c�& A �
RI LAFO D, Ex tive Assistant
City of La Quinta, tifornia
Public Notices
The La Quinta City Hall Session Room is handicapped accessible. If special equipment is needed for
the hearing impaired, please call the City Clerk's office at 777-7123, 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 Housing Commission,
arrangements should be made in advanceby contacting the City Clerk's office at 777-7123.
A one (1) week notice is required.
Housing Commission Agenda . 2 April 27, 2011
MINUTES
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
January 25, 2011
This meeting of the Housing Commission was called to order at 1:34 p.m. by
Chairperson LaRocca.
I. CALL TO ORDER
A. Pledge of Allegiance��
B. Roll Call
Present: CommissionerEi Pam borsel
Teresa LaRocca'
Absent:
Staff
Present
and
Sta
the
Cor
any
�r,efe
the
and
aRocca
whethj
Sue Leider'andChairperson
by Commissioner Dorsey
excuse Commissioners
limcusly approved.
for an update on Polanco's
can excuse her.
f stated it .was at the discretion of the Commission.
irperson ;°`LaRocca requested clarification on
imissioner Polano and whether she intends to attend
meetings. Staff stated that the matter will be
rred to Council since she has not attended any of
scheduled meetings. Chairperson LaRocca
jested an update on the provision regarding
absences.
Douglas R.
Development
Assistant
IL PUBLIC COMMENT: None.
Evans, Assistant City Manager,
Services and Lori Lafond, Executive
III. CONFIRMATION OF AGENDA: Confirmed.
�J
Housing Commission
January 25, 2011
IV
CONSENT CALENDAR:
It was moved and seconded by Commissioners Dorsey and Leidner to
approve the minutes as submitted. Unanimously approved.
BUSINESS ITEMS:
Doug Evans, Assistant City Manager -Development Services, gave an
overview of the housing projects that the Commission would be touring
during this meeting. The tour would include a/Section 8 rental home in the
Cove, the Vista Dunes Courtyard Homes,, end the Wolff Waters project.
Staff members Debbie Powell and Betty Sewyer,,,would, provide a summary of
each project during the tour.��
Chairperson LaRocca asked about the groundbreaking' for the two Habitat for
Humanity homes. Mr. Evans explained that Habitat for Humanity had broken
ground on two homes and the Agency.�was considering ,entairing into an
agreement for them to do five or six`more homes.
Commissioner Leidner asked. -
to the budget changes prop
that at this point, it was ur
have on the City.. Staff was
level and would inform the f
made.
V.
COMN
VII.
STAFF
Vill.
CORRI
the City's housing funds were in jeopardy due
ed,.by Governor. Brown. Mr. Evans indicated
own ;what affect the" proposed budget would
konitoring the actions being taken at the State
mrnssion when, and what changes would be
to tour the City's housing inventory.
ISSIONER ITEMS!s., None.
AND WRITTEN MATERIAL: None.
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11
Housing Commission
January 25, 2011
IX. ADJOURNMENT:
There being no further business, it was moved by Commissioner Leidner and
seconded by Commissioner Dorsey to adjourn this meeting of the Housing
Commission. This meeting of the Housing Commission was adjourned on
January 25, 2011, at 3:44 p.m. Unanimously approved.
Submitted by
Lori Le
Execu
3
Cl
HOUSING COMMISSION MEETING DATE: April 27, 2011
ITEM TITLE: Consideration of the Housing
Commission Work Plan for Fiscal year 2011-2012
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:.
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Review and approve the Housing Commission Work Plan for Fiscal Year 2011-2012
BACKGROUND AND OVERVIEW:
A draft of the Housing Commission Work Plan for Fiscal Year 201 1-2012 is attached
for your review and approval (Attachment 1). The Work Plan consists of objectives
proposed by Commissioners and staff for the coming year. Staff has prepared a list of
suggestions for the Housing Commission to review and approve or make suggestions.
After the Work Plan is completed, it will be submitted to the Housing Authority for
approval.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Housing Authority include:
1. Approve the Housing Commission Work Plan for Fiscal Year 201 1-2012; or
2. Do not approve the Housing Commission Work Plan for Fiscal Year 2011-2012; or
•
3. Provide staff with alternative direction.
Respectfully s bmitted,
Douglas R.-Gans
Assistant City Manager - Development Services
Attachment: 1. Draft Housing Commission Work Plan FY 201 1-2012
2
ATTACHMENT
Housing Commission
Work Plan
FY 2011-2012
On October 20, 2009, Ordinance No. 473 was enacted which formally
created the La Quinta Housing Commission. The Housing Commission's
function is to review and make recommendations on all matters to come
before the Housing Authority, except emergency matters'=:and matters the
Housing Commission itself elects not to consider.
Within thirty (30) days after the Housing Authority, has submitted a matter to
the Housing Commission for its review and- recommendation, the Housing
Commission shall make and file its :report thereon with, the Housing
5'
Authority. If the Housing Commission ..:does not report upon.. the matter
within thirty (30) days after its submission, by,the"Housing Authority, the
Housing Commission shall be deemed to "'have, waived its review and
recommendations concerning tF ei,matter and the Housing Authority may
thereafter take action on the matter>without the, report of the Housing
Commission.
Fiscal year 2010/201 1 . was an inaugural year for the Housing Commission.
As such, staff recommends the Work%,Plan for 2011/2012 again combine
Commission member trainings with matters deemed review -and -advise.
• Continue to review , the" Byiaw,sand Rules of Procedure of the La
Quinta Housing, Authority as they pertain to the Housing Commission
of properties transferred from the Redevelopment Agency
the Housina Authoritv
• Review documents for Housing Authority -owned properties, including:
o Plan , to' select applicants to assure equal opportunity and
nondiscrimination
o Application for Admission or Recertification - Washington
Street Apartments
o Rental Agreement - Washington Street Apartments
o Rental Agreement - Cove Homes
o Rules and Regulations - Washington Street Apartments
o Rules and Regulations - Cove Homes
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s
c'FM OF
HOUSING COMMISSION MEETING DATE: April 27, 2011
ITEMTITLE: Consideration to Sell Foreclosed Homes
to Income -Qualified Buyers
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Recommend to the Housing Authority that the Executive Director be given authority to
take all necessary actions to sell the homes currently owned by the Housing Authority,
and homes purchased or acquired in the future by the Housing Authority to income -
qualified buyers.
BACKGROUND AND OVERVIEW:
The California Community Redevelopment Law ("Redevelopment Law") was adopted
to assist in the elimination of blight and the provision of affordable housing. Pursuant
to the Redevelopment Law, the La Quinta City Council ("City Council") established the
La Quinta Redevelopment Agency ("Agency"). To assist the Agency to implement the
Redevelopment Law mandate to provide affordable housing, in 2009 the City Council
established the La Quinta Housing Authority ("Authority").
One of the Agency's affordable housing programs is a Home Foreclosure`Purchase
Program, whereby the Agency purchases homes at foreclosure sales that are in need
of substantial rehabilitation, rehabilitates the homes to a level consistent with the
surrounding neighborhood, then sells or rents the homes to income -qualified buyers at
affordable sales prices or affordable rents. Long-term affordability covenants are
recorded against the homes that restrict the resale to affordable buyers at affordable
sales prices. Through this program, the Agency has purchased 12 homes, seven of
which have been completely rehabilitated and five of which are in the final stages of
rehabilitation. Currently, La Quinta Palms Realty has been given the task of managing
the inventory of all 27 rental homes as well as locating additional homes to purchase
through foreclosure sales.
In March of this year, Agency staff transferred ownership of all Agency -owned housing
inventory to the Housing Authority for on -going operation, maintenance purposes, and
future disposition (sale or rental to income -qualified households).
The price of the houses purchased ranged from $68,000 to $126,000. The cost to
rehabilitate the homes ranged from $6,621 to $88,022. In connection with each sale,
the Agency provides a 2nd trust deed loan to the buyer as down payment assistance.
Following is a financial summary of the purchases, rehabilitation, and sales thus far:
Completed Sales:
Purchase Price
Rehab Cost
Rubio $126,077
$67,824
Velasco $100,730
$85,546
Diaz $110,740
$47,048
Houses in Escrow
Sale Price
151 Trust Deed
$135,000
$70,000
$135,000
$65,275
$135,000
$105,275
2nd Trust Deed
$65,000
$65,000
$25,000
Purchase Price Rehab Cost Sale Price 151 Trust Deed 2n° Trust Deed
Velasco $114,099 $44,266 $135,000 $ 65,000 $65,275
Houses for Sale
Purchase Price
Carranza $82,161
Eisenhower $68,140
Vallejo $73,400
Houses Under Rehabilitation
Purchase Price
Carranza
$92,480
Sonora
$96,486
Navarro
$70,000
Mendoza
$81,852
Carranza
$80, 244
Rehab Cost
$88,022
$ 6,621
$47,737
Of the homes that have been completely rehabilitated, three have been sold and one is
in escrow. Two homes were sold in March to very low-income families and one in
April to a moderate -income family. The house in escrow will be sold to a very low-
income family.
Prior to the Housing Authority taking action to sell these homes, the Housing
Commission must provide a recommendation to the Housing Authority. The Housing
Commission can recommend that (i) the Housing Authority ratify the three sales that
have already occurred, and authorize the Executive Director to execute all necessary
documents to sell these houses and any houses later acquired by the Housing
Authority, or (ii) the Housing Authority take some other action. With the authorization
in place, staff would be able to complete the rehabilitation and escrow process in a
timely manner. Staff will prepare a quarterly report to the Housing Commission and
Housing Authority on all homes that are purchased and sold.
FINDINGS AND ALTERNATIVES:
1. Recommend to the Housing Authority that the Executive Director be given
authority to take all necessary actions to sell the homes currently owned by the
Housing Authority, and homes purchased or acquired in the future by the
Housing Authority to income -qualified buyers; or
2. Do not recommend to the Housing Authority that the Executive Director be
given authority to take all necessary actions to sell the homes; or
3. Provide staff with alternative direction.
Respectfull submitted,
Douglas R. Evans
Assistant City Manager — Developmente6ervices
04 a� TA
4 XPQumrrv
cFM OF 1��
HOUSING COMMISSION MEETING DATE: April 27, 2011
ITEM TITLE: Update on the Redevelopment Agency
and Housing Authority
RECOMMENDATION:
No action is required — informational item only.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
STAFF UPDATES:
I
At the last Commission meeting, staff provided a brief overview of redevelopment. To
review, redevelopment was created by State law in 1945 to assist cities and counties
in eliminating blight from designated areas, including activities such as development,
reconstruction and rehabilitation of residential, commercial, industrial, and retail areas.
20% of redevelopment funds collected by a redevelopment agency must be used to
provide affordable housing in a Redevelopment Project Area. The State mandates the
number of affordable dwellings each city must develop. The dwellings must be
affordable to very low-, low-, and moderate -income residents. (Income level is
calculated as a percentage of the median income for the region.)
The La Quinta Redevelopment Agency has been very successful in implementing a
multi -faceted housing program to achieve the State's housing mandate. The La Quinta
Redevelopment Agency is mandated to produce 2,307 affordable housing units, and to
date, has produced approximately 1,060 affordable units.
In January of this year, Governor Brown presented a proposed State budget which
includes the elimination of all redevelopment agencies in the State. The rationale is to
alleviate. the State budget deficit by transferring local redevelopment funds to the
State, and in turn, the State would redistribute the funds to various agencies.
The City created the Housing Authority in September of 2009 for the purpose of
owning, managing, rehabilitating and eventual disposition of the housing properties.
Based upon this information, the Redevelopment Agency and Housing Authority
approved the transfer of the housing inventory from the Redevelopment Agency to the
Housing Authority. The housing properties transferred to the Housing Authority
include all Cove rental homes (27 homes), vacant residential lots (12 lots), and homes
purchased out of foreclosure (12 homes). In addition, the Agency is in the process of
adding the Housing Authority to the Washington Street Apartments grant deed.
La Quinta Palms Realty has been retained to manage all the Housing Authority single-
family homes. In addition, they have been retained to manage and sell the 12
foreclosed homes that have been purchased through the Home Foreclosure Purchase
Program. Of these 12 homes seven have been rehabilitated, and five are in the
process of being rehabilitated. Three of the houses that have been rehabilitated have
been sold to low-income families and one is in escrow. With the help of La Quinta
Palms Realty the Agency will be purchasing more foreclosed homes and preparing
them for sale to qualified very low-, low-, and moderate -income buyers.
Respectfully submitted,
Douglas . Evans
Assistant City Manager — Development Services
L:
� D 4a Qum&
HOUSING COMMISSION MEETING DATE: April 27, 2011
ITEM TITLE: Status Report on the Washington Street
Apartments
RECOMMENDATION:
Informational item — no action is necessary.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING: _
STAFF UPDATES:
In October 2008, the City's Redevelopment Agency ("Agency") purchased the
Washington Street Apartments. The property's 72 units are currently restricted to
very -low income seniors and disabled adults with one manager unit. The residents
receive a rent subsidy from the federal government, acting through the Farmer's Home
Administration, United States Department of Agriculture ("RD"). The Agency is
undertaking a multi -phased, multi -year project to substantially rehabilitate all 73 units
and record additional affordability covenants. The Agency also plans to develop a new
low-income senior housing complex on the vacant land to the south.
After purchasing the apartment complex, a management company, Hyder Property
Management, was hired to manage the day to day business of the complex. Staff has
been working closely with the company as well as being involved with the residents to
resolve issues and assist in the transition. For the last two years, staff has held a
Thanksgiving dinner for all the residents in order to familiarize ourselves with the
tenants and their needs. The community room was repainted and new furniture
purchased to make it more functional and attractive, and the City is working to bring
programs and classes to the site.
On the development side, staff has been working with an architect to prepare
conceptual site plans for both the existing apartments as well as the proposed
apartments on the vacant land to the south. The existing units will be completely
rehabilitated and three new buildings will be constructed, adding 26 new units to this
site. Two of the units are for a manager and maintenance person. A new Commons
Building will also be constructed. A new sound wall along Washington Street is being
designed as well. This will help alleviate the traffic noise from Washington Street and
improve the appearance of the property. This will be Phase I of the project. Phase II
will consist of constructing 42 new units on the vacant land to the south.
Staff is currently in the process of adding the Housing Authority as co-owner of the
apartment complex. It was originally planned that once the rehabilitation project and
new units were completed, the project would be transferred to the Housing Authority,
but due to the recent changes being proposed by the Governor to possibly eliminate
redevelopment agencies, it was determined the safest avenue would be to add the
Housing Authority as a co-owner of the project now to protect the Agency's
investment. This process could take approximately six months due to the RD approval
process.
Due to the project's complexity and magnitude, staff requested that the Rosenow
Spevacek Group ("RSG") prepare a proposal to help develop and implement the
project. RSG's proposal includes the design development and coordination with RD to
add the 26 new units to its rental subsidy program, as well as the entitlement
processing, relocation assistance, utility plans, permits, coordination, construction
management, and final disposition. Their contract would include the selection process
to retain and subcontract with various firms for architectural and landscape design,
engineering and surveying, soils testing, and required environmental studies. This
contract was approved the Agency Board on March 15, 2011.
With the approval of this contract with RSG, it is anticipated that the construction of
first phase could begin within a year.
Respectfully submitted,
L
e G
Douglas R. E ans
Assistant City Manager — Development Services
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