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2020 01 29 HC Special Meeting HOUSING COMMISSION 1 JANUARY 29, 2020 SPECIAL MEETING NOTICE OF SPECIAL MEETING OF THE LA QUINTA HOUSING COMMISSION TO THE COMMISSIONERS OF THE LA QUINTA HOUSING COMMISSION: NOTICE IS HEREBY GIVEN that a special meeting of the La Quinta Housing Commission is hereby called to be held on January 29, 2020 at 4:00 p.m. at La Quinta City Hall located at 78495 Calle Tampico, La Quinta, CA 92253 for the following purpose: CONSENT CALENDAR 1. APPROVE MINUTES DATED DECEMBER 11, 2019 BUSINESS SESSION RECEIVE AND FILE FISCAL YEAR 2019/20 MID-YEAR HOUSING AUTHORITY BUDGET REPORT STUDY SESSION RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS REPORTS AND INFORMATIONAL ITEMS 2019 HOMELESS FUNDING METRICS MEMORANDUM Dated: January 23, 2020 /s/ Veronica Gaeta-Mejia Veronica Gaeta-Mejia, Chairperson Attest: Reyna Camarena, Management Assistant DECLARATION OF POSTING I, Reyna Camarena, Management Assistant, do hereby declare that the foregoing notice for the La Quinta Housing Commission special meeting of January 29, 2020, was posted on the City’s website, near the entrance to the Council Chamber at 78 -495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and at 51-321 Avenida Bermudas, on January 23, 2020. HOUSING COMMISSION AGENDA 1 January 29, 2020 REGULAR QUARTERLY MEETING HOUSING COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta SPECIAL MEETING WEDNESDAY, JANUARY 29, 2020 AT 4:00 P.M. Roll Call: Commissioners Casto, Davidson, McDonough, Pacheco, and Chairperson Gaeta-Mejia 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 CONSENT CALENDAR 1. APPROVE MINUTES DATED DECEMBER 11, 2019 BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2019/20 MID-YEAR HOUSING AUTHORITY BUDGET REPORT STUDY SESSION 1. RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS DEPARTMENTAL REPORTS – NONE HC agendas and staff reports are now available on the City’s web page: www.laquintaca.gov HOUSING COMMISSION MINUTES Page 1 of 3 DECEMBER 11, 2019 REGULAR QUARTERLY MEETING HOUSING COMMISSION MINUTES WEDNESDAY, DECEMBER 11,2019 A regular quarterly meeting of the La Quinta Housing Commission (Commission) was called to order at 4:00 p.m. by Chairperson Gaeta-Mejia. PRESENT: Commissioners: Casto, Davidson, McDonough, Pacheco, and Chairperson Gaeta-Mejia ABSENT: None PLEDGE OF ALLEGIANCE Chairperson Gaeta-Mejia led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. SUMMARY OF THE REGIONAL HOUSING NEEDS ASSESSMENT (R HNA) MANDATE Management Specialist Kinley gave a presentation on the Regional Housing Needs Assessment (RHNA) Mandate which began in 1969 with the purpose to assist in implementation of the housing element, mandated by California state law and has a cycle of 8 years. The Housing Element within the City’s General Plan requires formulating the number of dwellings necessary, which is allocated based on 5 income levels; extremely low, very low, low, moderate and above-moderate. The County determines the median of a 4- person household and what their average income would be for that time period. RHNA allocation process has been going on for the past 40 years. Currently we are closing on the 5th cycle with the 6th cycle beginning Oct 2021. Cycles require a methodology which determines the 8-yr. cycle’s allocation for how many homes the jurisdiction will need for its residents. The California Housing and Community (HCD) & Southern California Association of Government (SCAG) who represent Orange County/LA to San Bernardo/Riverside County work together. SCAG takes the greater area’s input and submits to HCD for review. 1.3 Million units has been determined to be required for Southern California during this 6th cycle. SCAG created a methodology with 3 practical ways to calculate a region’s needs. Past cycles had more minimal methodologies. The 5th cycle added societal equity, which became complex in determining a region’s “fair share”. RHNA timeline process includes HCD reviews, appeal period, final hearing and lastly, implementation period at which time cities and counties can provide final input. Commission requested clarification on how HCD allowed City of La Quinta to alter their numbers. Staff explained there is a discussion amongst cities/counties regarding the different needs and how to make numbers work for everyone. CONSENT CALENDAR ITEM NO. 1 HOUSING COMMISSION MINUTES Page 2 of 3 DECEMBER 11, 2019 REGULAR QUARTERLY MEETING CONSENT CALENDAR 1. APPROVE HOUSING COMMISSION MINUTES DATED OCTOBER 9, 2019 Motion – A motion was made and seconded by Commissioners Davidson/McDonough to approve the Consent Calendar as submitted. Motion passed unanimously. BUSINESS SESSION 1. RECEIVE AND FILE FISCAL YEAR 2018/19 HOUSING AUTHORITY YEAR-END BUDGET REPORT Finance Director Romero presented the staff report, which is on file in the City Manager’s Department. The report included four housing authority funds; Housing Authority Fund, RDA Low-Mod Housing Fund, 2004 Bond Fund and 2011 Bond Fund for the period ending June 30,2019. Last year revenues were strong due in part to interest earnings, the City has approximately $120 million dollars in investments which were earning 3-4% and are now maturing and new investment return rates are half at about 1.8%. Revenue overages were also due to the sale of a vacant parcel. Former Redevelopment Agency loan repayment of $622,613 of which $250,00 was used for homeless programs and the remaining balance will remain available for future housing projects. Two bond funds are being used to pay for Washington Street Apartment rehabilitation and expansion project, there were no additional bonds proceeds and current balances are earning interest. A minor expense overage for the administration of programs was offset by savings in payroll, and legal services, home improvements for City owned Co ve properties resulted in an overage of $7,500. Savings in bond funds will be carried over to the next fiscal year. Overall total of all Housing Authority Funds to be carried over are $29,381,750 The remaining loan balance is $6,978,943. Motion – A motion was made and seconded by Commissioners Casto/Davidson to recommend Housing Authority approval to recei ve file 2018/2019 Housing Authority Year- End Budget. Motion passed unanimously. 2. RECEIVE AND FILE FISCAL YEAR 2019/20 FIRST QUARTER HOUSING AUTHORITY BUDGET REPORT Finance Director Romero presented the staff report, which is on file in the City Manager’s Department. Finance Director Romero provided Commission an overview of the first quarter ending September 30, 2019 revenue balances for the three Housing Authority Funds; Housing Authority, Low-Mod Housing, and 2011 Bond. Per current cash balances and interest earning projections, Finance Director Romero recommended increasing interest earnings for City of La Quinta HOUSING COMMISSION MEETING: January 29, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 MID-YEAR HOUSING AUTHORITY BUDGET REPORT RECOMMENDATION Receive and file fiscal year 2019/20 Mid-Year Housing Authority Budget Report. EXECUTIVE SUMMARY • The 2019/20 Mid-Year Housing Authority Budget Report (Attachment 1) provides an update of the Authority’s fiscal activities from July to December 2019. • A budget report is prepared quarterly to assess the adopted budget and incorporate adjustments based on current economic conditions and operational requirements. • The Report will be presented for approval to the Housing Authority on February 4, 2020. BACKGROUND/ANALYSIS Throughout the fiscal year staff monitors its budget and proposes adjustments to reflect current conditions and ongoing operational needs. Requests are reviewed and discussed before recommending approval in the budget report (Attachment 1). Funds with no adjustments from the originally presented 2019/20 Budget have been excluded from the report. The Report will be presented for approval to the Housing Authority Board on February 4, 2020. ALTERNATIVES The Commission may request additional information, deny, or delay the approval of budget adjustment recommendations. Prepared by: Karla Romero, Finance Director Attachment 1: 2019/20 Mid-Year Housing Authority Budget Report BUSINESS SESSION ITEM NO. 1 HOUSING AUTHORITY FISCAL YEAR 2019/20 MID-YEAR BUDGET REPORT The annual budget is a living document, which allows for flexibility and adjustments to accommodate current business needs and updated projections. All funds are continuously monitored. This report provides a recap of fiscal year-to-date activity and a recommended expenditure adjustment for the second quarter. In addition to the First Quarter Budget Report revenue adjustments of $276,800, during the first quarter revenues were increased by $1,338,256 and expenses by $278,062 for total year-to-date adjustments as summarized below by fund. The City purchased a portion of Housing Authority land located on Dune Palms Road and Westward Ho for $1,061,456. These funds are restricted for affordable housing programs and the Authority intends to develop the remaining 121,551 square foot parcel with an affordable housing project. A capital improvement contribution of $278,062 was allocated from the Housing Authority Fund for drainage improvements which will accommodate the Authority’s remaining parcel. The total cost of the drainage improvements is anticipated to be $1,014,826; the Authority’s contribution is limited to the Authority’s proportionate share of the retention basin which is 27.4%. REVENUES There are no additional revenue adjustments at mid-year and all revenues are on target to meet current budget projections. Fund Revenues Expenses Housing Authority Fund (241)1,240,256$ 278,062$ Low-Mod Housing Fund (243)18,000 - 2011 Bond Fund (249)80,000 - TOTAL FUND ADJUSTMENTS 1,338,256$ 278,062$ 2019/20 FIRST QUARTER APPROVED HOUSING AUTHORITY ADJUSTMENTS EXPENSES Staff has been monitoring rental expenses associated with the 28 Housing Authority owned homes in the La Quinta Cove. Unanticipated repair and replacement expenses have occurred from turnover in rental units; therefore, staff recommends a budget increase of $62,000. If approved, the total budget would be revised to $317,00 which is $9,700 above prior fiscal year actual expenses. All other expenses are within budget. A General Plan Housing Element update is required by October 2021. A consultant will be selected in the Spring of 2020. Total anticipated costs are $80,000 and will be equally shared between the General Fund and Housing Authority Fund, therefore a $40,000 adjustment to professional services i s requested. Staff has applied for SB2 grant funding; however, these funds have not been secured. If external funding is awarded an updated budget allocation will be presented in a future budget report. City of La Quinta HOUSING COMMISSION MEETING: January 29, 2020 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 and homeless prevention partners; Coachella Valley Rescue Mission, Martha’s Village and Kitchen, Coachella Valley Association of Governments, Path of Life Ministries, and Linc Housing. EXECUTIVE SUMMARY • The Housing Commission (Commission) and Housing Authority (Authority) agreed on the allocation of $266,666 of Housing Authority funds to area homeless service providers and homeless prevention partners in previous Fiscal Year (FY) 2018/2019. • Staff has acquired metrics regarding the success of this funding and is able to track how it positively impacts the City of La Quinta and greater Coachella Valley community. • Staff offers two funding options for consideration: o Option 1: Continue to provide $83,333 to Coachella Valley Rescue Mission (CVRM), $83,333 to Martha’s Village and Kitchen (Martha’s Village), and $100,000 to Path of Life Ministries (POLM) which is run by Coachella Valley Association of Governments (CVAG) and received matching funds by Desert Healthcare District (DHD). o Option 2: Provide $83,333 to CVRM, $83,333 to Martha’s Village, $100,000 to POLM with a $100,000 match donation from DHD, and $10,000 to Linc Housing for Homeless Prevention Trial Program services. FISCAL IMPACT Authority funds are available in account number 243-0000-60532. STUDY SESSION ITEM NO. 1 BACKGROUND/ANALYSIS Staff proposes the following funding options: Option 1: Continue to provide $266,666 in total contributions, which reflects the same budget as FY 2018/2019, as follows: • Provide CVRM with $83,333 using Authority funding; • Provide Martha’s Village with $83,333 for their continued services that were implemented last year, including a new program known as the “Homeless Prevention Trial Program”, a partnership between the City of La Quinta, Martha’s Village, and Coral Mountain Apartments, to provide rapid rehousing services, which has been successful at a trial capacity; and • Provide $100,000 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. Option 2: Provide $276,666 in total contributions as follows: • All contributions outlined in Option 1; and • Partner with Linc Housing to administer up to $10,000 for a rent intervention/stabilization program like the aforementioned Coral Mountain Homeless Prevention Trial Program for La Quinta residents. Each organization will continue to 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. ALTERNATIVE The Housing Commission can direct staff with a new option. Prepared by: Doug Kinley, Management Specialist Approved by: Gil Villalpando, Assistant to City Manager POWER POINTS HOUSING COMMISSION SPECIAL MEETING JANUARY 29, 2020 01/29/2020 1 Housing Commission -Special Session- January 29, 2020 Housing Commission January 29, 2020 Business Session Item No. 1 RECEIVE AND FILE FISCAL YEAR 2019/20 MID-YEAR HOUSING AUTHORITY BUDGET REPORT 1 2 01/29/2020 2 Mid‐Year  Budget Report VERBAL UPDATE BY  STAFF Housing Commission January 29, 2020 Study Session Item No. 1 RECOMMEND FUNDING OPTION FOR AREA HOMELESS PREVENTION PROGRAMS 3 4 01/29/2020 3 2019 Homeless Program Funding •In 2019, the Housing Authority approved a  budget allocation for  the following contributions: –$83,333 to the Coachella Valley Rescue  Mission –$83,333 to Martha’s Village and Kitchen –$100,000 to Path of Life Ministries, run by Coachella  Valley Association of Governments •Matching donation of $100,000 provided by Desert  Healthcare District 2020 Homeless Program Funding Proposed •Staff has put forward  two options.  •Option 1: Same funding as 2019 based on  excellent results from reported metrics by all  three organizations. •Option 2: An addition of approximately  $10,000 to the Linc Housing management  group for  a Homeless Prevention Trial   Program. 5 6 01/29/2020 4 Thoughts? Housing Commission January 29, 2020 Reports and Informational Items VERBAL UPDATE BY STAFF 7 8 01/29/2020 8 Housing Commission Meeting Next Meeting Date March 11, 2020 15 16 01/29/2020 9 17