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2011 04 27 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 April 27, 2011 This meeting of the Housing Commission was called to order at 6:06 p.m. by Chairperson LaRocca. I. 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 Evans, Assistant City Manager, Services, Debbie Powell, Economic Project Manager, Karen Frane, Assistant and Lori. Lafond, Executive PUBLIC COMMENT: None. CONFIRMATION OF AGENDA: Confirmed. 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. 2 Housing Commission April 27, 2011 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 purchased or acquired in the future by or for the Housing Authority to income - qualified buyers. Motion carried unanimously. 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. VIII. CORRESPONDENCE AND WRITTEN MATERIAL: None. 3 Houtift Cornml ioh April 27, 2011 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 adjournod on April 27, 2 011, at 7:01 p,m, AYES: S. NOES: None, ABSENT: Commissioner Jamison, ABSTAIN: None. Submitted by Lori Lefond Executive Assistant Ell