2011 09 14 HCo� , o
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HOUSING COMMISSION
AGENDA
Meeting to be Held at the
La Quinta City Hall Session Room
78-495 Calle Tampico, La Quinta, California
September 14, 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 Minutes for the Special Meeting of April 27, 2011
BUSINESS ITEMS
1 . Election of Chairperson and Vice Chairperson
COMMISSIONER ITEMS
None.
AFF UPDATES
1. Update on Redevelopment
2. Update on Washington Street Apartments
3. Update on Foreclosed/Rehabilitated Homes Program
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 September 14, 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 September 8, 2011.
Dated: September 8, 2011
1 � ,
W RI AFOND, xecu Assistant
City of La Quinta, Cal f nia
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 advance by contacting the City Clerk's office at 777-7123.
A one (1) week notice is required.
Housing Commission Agenda 2 September 14, 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
April 27, 2011
This meeting of the Housing Commission was called to order at 6:06 p.m. by
Chairperson LaRocca.
CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
Present: Commissioners Dorsey, Leider and Chairperson LaRocca
Absent: Commissioner Jamison and Polanco
It was moved by Commissioner Leidner and seconded
by Commissioner Dorsey to excuse Commissioner
Jamison
Commissioner Polanco was dismissed from the Housing
Commission due to absences
Staff
Present: Douglas R.
Development
Development
Management
Assistant
II. PUBLIC COMMENT: None.
Evans,
Assistant
City
Manager,
Services,
Debbie
Powell,
Economic
Project
Manager,
Karen
Frane,
Assistant
and Lori
Lafond,
Executive
III. CONFIRMATION OF AGENDA: Confirmed.
III. CONSENT CALENDAR:
1 . Approval of the Minutes for the Special Meeting on January 25, 2011
It was moved by Commissioner Leidner and seconded by
Commissioner Dorsey to approve the minutes as submitted.
Housing Commission
April 27, 2011
IV. BUSINESS ITEMS:
1. Consideration of Housing Commission Work Plan for Fiscal Year 2011-
2012. It was moved by Commissioner Dorsey and seconded by Chairperson
LaRocca to approve work plan as submitted.
2. Consideration to Sell Foreclosed Homes to Income -Qualified Buyers.
Staff updated the Commission on the foreclosed homes program.
Chairperson LaRocca asked whether the second trust deed is repaid at any time or
is it forgiven and if it is a 30 year covenant. Staff indicated that the second trust
deed is forgiven and the covenants are for 45 years for single family homes. Staff
further explained that if the family lived in the home for 45 years or it stayed
affordable for 45 years, the second trust deed goes away and the buyer owns the
house.
Staff indicated that the City is very thorough when explaining the
program to prospective buyers regarding the terms and conditions of the program
and to make sure they understand they cannot sell the property for profit. This
program was designed as a way for people to live in a house, have home-
ownership pride but not have to pay full market value.
Staff updated the Commission on the status of some of the foreclosed
homes purchased by the Redevelopment Agency ("Agency"). Currently, three
sales have just been completed, one house is in escrow, and three houses are
currently for sale. The Agency is in the process of rehabilitating three houses and
offers on two houses are pending.
Commissioner Leidner asked if the Agency accepts offers before the
rehabilitation of the property is finished. Staff indicated that the Agency wants to
be completely finished with rehabilitation before offering the properties for sale.
Chairperson LaRocca asked whether or not the Agency maintains a list
of qualified families. If not, how does the Agency find buyers? Staff indicated that
the Agency does not have a list of prospective buyers and that the buyers are
chosen through real estate networking.
It was moved by Commissioner Leider and seconded by Commissioner
Dorsey that the Executive Director is given the authority to take all necessary
actions to sell the homes currently owned by the Housing Authority, and homes
2
Housing Commission
April 27, 2011
purchased or acquired in the future by or for the Housing Authority to income -
qualified buyers.
VII. STAFF UPDATES:
1. Staff presented staff report regarding an Update on the La Quinta
Redevelopment Agency and Housing Authority.
The Commission had many concerns regarding the State's initiative to
abolish redevelopment agencies state-wide. Staff explained that the Governor just
wants to get rid of redevelopment agencies and take the money but the California
Redevelopment Association ("CRA") as well as the League of California Cities
("League") have banded together in a very coordinated effort to oppose the State's
initiative. They drafted a proposal for reform and are now going through trying to
cinch it up into proposed legislation and that would provide some ability for cities
to voluntarily give money to the state & school districts since. the Constitution
prohibits the State from taking the money.
The CRA & League are trying to come up with a way the agencies can
help the State with its budget and benefits so that redevelopment plans could last
longer and the money could eventually be recouped.
Staff further indicated that the State is considering selling Agency
assets and forming a new committee that would evaluate all payment
obligations. The State's idea is to close down redevelopment agencies as fast
as possible.
2. Staff presented staff report regarding Status Report on the
Washington Street Apartments.
Vill. CORRESPONDENCE AND WRITTEN MATERIAL: None.
IX. ADJOURNMENT:
There being no further business, it was moved by Commissioner Dorsey and
seconded by Commissioner Leidner to adjourn this meeting of the Housing
Commission. This meeting of the Housing Commission was adjourned on
April 27, 2011, at 7:01 p.m. AYES: Commissioners Dorsey and Leidner and
Chairperson LaRocca. NOES: None. ABSENT: Commissioner Jamison.
ABSTAIN: None.
3
Housing Commission
April 27, 2011
Submitted by
Lori Lafond
Executive Assistant
0
HOUSING COMMISSION MEETING DATE: Sept. 14, 2011
ITEM TITLE: Election of Chairperson and Vice
Chairperson
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Elect one member to serve as Chairperson and elect one member to serve as Vice
Chairperson for the Housing Commission.
BACKGROUND AND OVERVIEW:
A Chairperson for the Commission is selected to preside over the meetings. The Vice
Chair will preside over the meeting when the Chair is unavailable. An open vote will
be taken at the first Commission meeting to select a Chairperson to serve a one-year
term. After the Chairperson has been elected, an open vote to select a Vice
Chairperson to serve a one-year term will follow.
Voting Procedures:
All actions must be taken on a majority vote or by a majority of the quorum present.
On the passage of every motion, the vote shall be taken by voice or roll call as
appropriate. Staff will open and close nominations to the Commission for the
Chairperson. The vote will be taken and the Chairperson will be elected.
Tie Votes:
In the case of a tie vote, an additional motion is made which obtains a majority vote to
break the tie. If a vote results at a time when less than all members are present, the
matter shall automatically be continued to the Agenda of the next regular meeting,
unless otherwise ordered by the body.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Commission are:
1. Elect one member to serve as Chairperson, and elect one member to serve as
Vice Chairperson for the Housing Commission; or
3. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Attachment: 1. Municipal Code 2.06.030 Chairperson, Vice -Chairperson
— Selection and Terms
2
2.06.030 Chairperson, vice -chairperson —Selection and terms.
ATTACHMENT
La Quints Municipal Code
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Title 2 ADMINISTRATION AND PERSONNEL
Chapter 2.06 BOARDS, COMMISSIONS AND COMMITTEES
2.06 030 Chairperson, _vice chairperson -Selection and terms.
Print No Frames
Unless otherwise provided by law, ordinance or resolution of the city council, each board, commission or
committee of the city shall annually at its first meeting held after June 30th, except for committees who shall at
their first meeting, choose one of its number as chairperson and one as vice chairperson. Each chairperson and
vice chairperson shall have authority and perform such duties as are commonly associated with their respective
titles, or as may be specially prescribed by law or by the bylaws or other rules of the board, commission or
committee. Vacancies in either such position occurring prior to July 1 st for boards and commissions, and
anytime for committees, may be filled as in the first instance, and a new chairperson or vice chairperson may be
chosen at any time by majority vote of all members of the board, commission or committee. (Ord. 237 § 2 (part),
1993)
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HOUSING COMMISSION MEETING DATE: Sept. 14, 2011 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Update on Redevelopment CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
STAFF UPDATES:
RECOMMENDATION:
No action is required - informational item only.
BACKGROUND AND OVERVIEW:
At the last Commission meeting, staff provided an update on redevelopment in
California. Because much has occurred since that time, staff would like to bring the
Commission up-to-date.
In January 2011, Governor Brown presented a proposed State budget which included
the elimination of all redevelopment agencies in the State. The rationale is to alleviate
the State budget deficit by transferring local redevelopment funds to various agencies,
with the bulk going to local school districts.
After months of debate at the State level, the Governor approved the State budget and
signed two trailer bills that affect redevelopment. The first bill, ABx1 26 ("Dissolution
Act ) dissolves redevelopment agencies effective October 1, 201 1; and the second
bill, ABx1 27 ("Continuation Act"), allows redevelopment agencies to continue
operations if a large payment is made to the State in 201 1-2012, with smaller annual
payments to be made in subsequent years for the life of the project area(s). Over 400
redevelopment agencies throughout the state had to quickly analyze the risks and
benefits of dissolution versus continuation, as agencies are required to make this
decision by October 1, 2011.
If an agency chooses dissolution, it ceases to exist and its cash and assets are
transferred to a "successor agency." The successor agency would then sell the
agency's assets and use the available cash to pay off all agency debts and obligations.
Affordable housing functions would also be transferred to the successor agency.
For the La Quinta Redevelopment Agency, dissolution could mean the loss of over
$100 million in assets and cash. While continuation is expensive - the estimated first
payment for La Quinta is $18.3 million, and the subsequent annual payments would be
approximately $4.6 million per year through 2039-2040 (the date when Project Area 2
expires) — in the long run, it makes fiscal sense to make the payments and continue
the Agency. Continuation would allow the La Quinta Redevelopment Agency to retain
its cash and assets, and to proceed with its affordable housing and economic
development initiatives. Therefore, La Quinta opted to continue its redevelopment
agency and make the payments.
However, another "wrinkle" has been thrown into this issue. The California
Redevelopment Association, along with the League of California Cities, filed a lawsuit
with the California Supreme Court, claiming the two bills violate Proposition 22 and are
therefore unconstitutional. Proposition 22, approved by the voters in 2010, prohibits
the State from taking local tax revenues, including redevelopment funds, to balance its
own budget. The lawsuit also requested that the Supreme Court issue a stay,
temporarily suspending the two bills until the Court rules on them. However, the
Supreme Court issued a partial stay that only applies to the Continuation Bill. This
means that all redevelopment agencies, even those that opted to continue (including La
Quinta), are temporarily suspended until the Supreme Court modifies the stay or makes
a final decision, which is anticipated to occur by January 2012.
This affects La Quinta in a number of ways — the Agency is only allowed to make
payments on existing obligations, such as bonds, contracts, agreements, etc. It
cannot enter into any new agreements, begin new projects, purchase property, nor
issue bonds. This may affect the sale of our rehabilitated foreclosed homes, as the
Agency provides funding to make the homes affordable to lower -income buyers.
Fortunately, the Agency does have an existing contract for the purchase and
rehabilitation of foreclosed homes, so we can continue to buy and remodel blighted
houses. If it is determined we cannot sell the homes, then they will be added to the
affordable home rental program. In addition, the Agency has an existing contract for
the design of the Washington Street Apartment rehabilitation, so we are able to move
forward with that project.
The redevelopment issue is very complex and changes almost daily. Staff will keep
the Housing Commission apprised on the issue.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
F`y OF TKF'O
HOUSING COMMISSION MEETING DATE: Sept. 14, 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: bL
Washington Street Apartments is a 72-unit complex that was purchased by the
Redevelopment Agency in October 2008. The apartment complex is restricted to very -
low income seniors and disabled adults. The City's intent is to rehabilitate the existing
units, construct a new Commons building and add an additional 26 units to the
existing site during the first phase of construction for the project. The vacant 6.8-acre
site to the south will be developed with an additional 42 senior affordable housing
units during Phase II at a later date.
In addition to working with RSG (Rosenow Spevacek Group) to help develop and
implement the project, three additional firms have been selected to work on the
project; The Altum Group, RGA Landscape Architects Inc., and Studio E Architects.
The Altum Group will be primarily handling the engineering aspect of the project such
as grading, drainage, and surveying; RGA will develop the design of the landscape
plans for the perimeter and interior of the site; and Studio E Architects will be working
on the site lay -out, design of the sound wall along Washington Street, on -site
circulation and the architectural design of the new units.
City staff and the development team met with the Washington Street Apartment
residents in late June of this year to gather their ideas and input and to discuss
preliminary site plans. Some of the items that were discussed were the patio areas
within the units, the community garden concept, and relocation of the residents while
their units are remodeled. In addition to meeting with the residents, staff, RSG, and
the selected firms periodically meet for updates and discussion of how best to
streamline the development process.
To date, the preliminary site plan includes the location of the main drive primarily for
automobiles and a separate entrance for pedestrians. Parking areas are being proposed
that will maximize access for most of the residents. Also included on the preliminary
site plan are two courtyard areas that will each be located to the north and south of
the larger parking area and a swimming pool and spa close to the brand new Commons
building. The site plan continues to be refined and future versions will be shared with
the Housing Commission.
Furthermore, preliminary conceptual plans for the existing and future units have been
reviewed to address accessibility issues and to create updated and usable space within
the existing units. Another goal is to improve energy efficiency in the units.
Since its annexation in 2007, this location has become the most northern point city
limit along the highly utilized Washington Street. In order to create a visible marker of
the City and to alleviate the traffic noise, the existing wall will be increased in height to
create a sound wall and the oleander shrubs will be removed and replaced with water
efficient trees and shrubs. The sound wall will also incorporate art from a local artist.
The interior side of the wall will include locations with community gardens for the
residents within the complex.
It is anticipated that grading and construction of the new units for the first phase of
the project will begin by the end of this year.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
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HOUSING COMMISSION MEETING DATE: Sept. 14, 2011
ITEM TITLE: Update on Foreclosed/Rehabilitated
Homes Program
RECOMMENDATION:
Informational item — no action is necessary.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
STAFF UPDATES:
One of the La Quinta Redevelopment Agency's affordable housing programs is the
Home Foreclosure Purchase Program. Under this program, the Agency purchases
homes at foreclosure sales, rehabilitates the homes to a level consistent with the
surrounding neighborhood, then sells or rents the homes to income -qualified buyers at
affordable sale prices or affordable rents. The primary goals of the program are to
alleviate blight by rehabilitating substantially dilapidated homes, stabilize
neighborhoods which have been impacted by foreclosures, sell or rent the rehabilitated
homes to low-income households, and increase the community's supply of affordable
housing. This is a brief update on the program. As noted at the last Housing
Commission meeting, the homes are purchased in the name of the La Quinta Housing
Authority. The Housing Authority is responsible for ongoing operation, maintenance,
and disposition of the properties.
Under the Home Foreclosure Purchase Program, a total of 13 homes in the Cove area
have been purchased and three of those homes have been sold to income qualified
buyers. The remaining ten homes are completely rehabilitated or close to completion.
The rehabilitation process has varied from home to home but all the homes have been
upgraded to improve energy efficiency and provide water efficient landscaping.
Many of the homes have undergone complete remodeling, with new cabinetry,
appliances, flooring, and fixtures. Several homes required new roofs, additional
insulation, and new air conditioning units. The goal is to make future upkeep,
maintenance, and utility costs as affordable as possible for the lower -income buyers. In
addition, all rehab work is being performed by local contractors.
The attached photos are before and after shots of five rehabilitated homes. Of note are
upgraded roofs, new paint, block walls, and enhanced landscape.
While the outcome of recent redevelopment legislation is unknown, the La Quinta
Redevelopment Agency and Housing Authority are currently able to continue
purchasing and rehabilitating foreclosed homes. Staff will continue to provide periodic
updates to the Housing Commission.
/Respectfully submitted,
Debbie Pow
ell
Economic Development/Housing Manager
2
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