2012 05 15 HAT
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Housing Authority agendas and staff reports
are available on the City's web site:
www.la-quinta.org
HOUSING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico I La Quinta, California
Regular Meeting
TUESDAY, MAY 15, 2012 AT 4:00 P.M.
Beginning Resolution No. HA 2012-004
CALL TO ORDER
Roll Call:
Authority Members: Adolph, Franklin, Henderson, Osborne and Chairperson Evans
VERBAL ANNOUNCEMENT — AB 23 [CITY CLERK]
PUBLIC COMMENT
At this time members of the public may address the Housing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF APRIL 17, 2012
CONSENT CALENDAR
NOTE: Consent Calendar items are routine in nature and can be approved by one motion.
1. APPROVAL OF DEMAND REGISTER DATED MAY 15, 2012
2. RECEIVE AND FILE TREASURER'S REPORT DATED MARCH 31, 2012
HOUSING AUTHORITY AGENDA 1 MAY 15, 2012
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH
31, 2012
BUSINESS SESSION
1. CONSIDERATION OF THE PURCHASE OF A SINGLE FAMILY HOME
LOCATED AT 52-830 AVENIDA MARTINEZ TO PRESERVE AN
AFFORDABILITY COVENANT AND APPROVAL OF AN APPROPRIATION
DEPARTMENT REPORTS
1. CITY CLERK MEMO REGARDING THE SCHEDULE FOR INTERVIEWS AND
APPOINTMENTS TO THE HOUSING COMMISSION
CHAIR AND AUTHORITY MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Housing Authority will be held on June 19, 2012
at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA
92253.
DECLARATION OF POSTING
I, Susan Maysels, Interim Secretary of the La Quinta Housing Authority, do hereby
declare that the foregoing agenda for the La Quinta Housing Authority was posted
on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the
bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on May
1 1, 2012.
DATED: May 10, 2012
SVWA11
SUSAN MAYSELS, I erim Secretary
La Quinta Housing Authority
Public Notice
Any writings or documents provided to a majority of the Housing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
HOUSING AUTHORITY AGENDA 2 MAY 15, 2012 .O 02
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HOUSING AUTHORITY MEETING DATE: May 15, 2012
ITEM TITLE: Approval of Demand Register Dated
May 15, 2012
It is recommended the Housing Authority Board:
Receive and File the Demand Register Dated
May 15, 2012 of which $0.00
represents Housing Authority Expenditures.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: I
691t11flA **I[4WM
PUBLIC HEARING:
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
003
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AGENDA CATEGORY:
CITY/SA IA FA MEETING DATE: May 15, 2012 BUSINESS SESSION: _
ITEM TITLE: Receive and File Treasurer's Report dated CONSENT CALENDAR: 2—
March 31, 2012
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the La Quinta Housing Authority:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
9 004
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CITY/SAJBTA MEETING DATE: Mav 15, 2012 AGENDA CATEGORY:
ITEM TITLE: Receive and File Revenue and Expenditure BUSINESS SESSION: _
Report dated March 31, 2012 3
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Receive and File.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Receive and File the March 31, 2012 Statement of Revenue and Expenditures for the
La Quinta Housing Authority.
submitted,
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John M. Falconer, Finance Director
Approved for submission by:
O
Mark Weiss, Interim Executive Director
Attachment: 1. Revenue and Expenditures Report, March 31, 2012
,,a. 005
A 1 1 AUHIVICIV 1 1
0710112011 - 03/3112012
LA OUINTA HOUSING AUTHORITY
ADJUSTED
REMAINING
%
REVENUE SUMMARY
BUDGET
RECEIVED
BUDGET
RECEIVED
PROJECT AREA NO 1 HOUSING AUTHORITY
Proceeds From Home Sale
590,00000
278,472.52
311,527.48
47,200%
Allocated interest Income
3,800,00
2, 355.66
1 443.34
62.020%
Non Allocated Interest income
000
107.23
(107.23)
0.000%
Rental Income
240p ,00
224,374,89
15,625.11
93.4W%
2nd Trust Dead Repayments
0.00
50,OW.00
(50,OW.00)
0.000%
Transfer In
2.035,38D00
2,035,388.46
to tS)
lw.000%
TOTAL LO HOUSING AUTHORITY PA 1
2 869188A0
2, 5W) 69916
278.488.24
W,290%
PROJECT AREA NO 2 HOUSING AUTHORITY
WSA Fad GOA Assistance Pymts
451,4WM
332, 147,00
119,253.00
73.560%
WSA Fed GOA Interest Rate Subsidy
46,B00.00
0.00
46, 800.00
0.000%
WSA Interest Income
0,00
000
D,W
0,000%
WSA Non Allocated Interest Income
1,090.00
475,14
614.86
43,590%
WSA Rental Income
163,300.W
135.837.00
27,463.00
83,180%
WSA 011rer Revenues
3.700.00
1,%5.89
1.734.11
53.130%
Transfer In
0.00
0.00
0.00
0.000%
TOTAL LO HOUSING AUTHORITY PA 2
666,29000
470,425.03
195.884.97
70.600%
" 006
E
LA QUINTA HOUSING AUTHORITY
ADJUSTED
3131=12
REMAINING
EAPENDITURE SUMMARY
BUDGET
EXPENDITURES ENCUMBERED
BUDGET
PROJECT AREA NO 1 HOUSING AUTHORITY
SERVICES
18,12260
1.998.33
16,12367
2ND TRUST DEED PROGRAM
375,000.00
0.W
375,000O0
FORECLOSURE ACQUISITION
65.000,W
65,00000
HOUSING DEVELOPMENT PROGRAM
350,wom
131.509.98
218,490.02
TRANSFER OUT
060
0.00
TOTAL PROJECT AREA NO 1 HOUSING AUTHORITY
PROJECT AREA NO 2 HOUSING AUTHORITY
SERVICES
22,522.W
7SIM 58
14619.42
WASH ST APTS EXPENSES
362,710.00
244,980.13
117,729,87
WSA PRIWPROVIDENT LOAN
29,917.00
22,202.13
7,714,87
WSA PRIWUSDA LOAN
12,915,W
9,564 73
3,350.27
WSA INTERESTPROVIDENT L
124,558,W
93,65370
30,904.30
WSA INTERESTAISDA LOAN
12,M7A
19,212.95
53, 154.05
WSAADVANCE INTEREST EX
000
2969
Q8691
TOTAL PROJECT AREA NO 2 HOUSING AUTHORITY
--624.989, W
3 3d59
TOTAL HOUSING AUTHORITY
T.61 ,. 007
3
r
CITY / SA LtA FA MEETING DATE: Mav 15, 2012
ITEM TITLE: Consideration of the Purchase of a Single
Family Home Located at 52-830 Avenida Martinez to
Preserve an Affordability Covenant and Approval of an
Appropriation
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Do not purchase the single family home located at 52-830 Avenida Martinez.
FISCAL IMPLICATIONS:
The purchase this property at the trustee's sale will require an expenditure from the
Project Area No. 1 Housing Authority Fund Balance in an amount not to exceed
$132,000. Rehabilitation and resale expenses are not expected to exceed $30,000,
for a total appropriation of $162,000. Funds are available from unallocated Housing
Authority Project Area No. 1 unallocated reserves (241-0000-290.00-00). These are
not the low and moderate funds that were held by the former Redevelopment Agency
that are subject to AB x1 26. Instead, these are funds generated by the operation of
the Housing Authority's assets.
BACKGROUND AND OVERVIEW:
Staff has been advised that on June 1, 2012, a single-family home located at 52-830
Avenida Martinez will be sold at a trustee's foreclosure sale. This house was sold to
the current owner in February 2005 with a second trust deed amount of $70,000
provided to a very -low income household as part of the La Quinta Housing Program.
The current outstanding loan balance of the first trust deed plus foreclosure costs is
$61,279. This figure plus the second trust deed of $70,000 represents the total
encumbrances of $132,000 against the property. The Housing Authority would have
to bid enough to cover the entire first and second trust deeds in order to ensure that
the Authority will, at the very least, receive its initial investment back. If the Authority
is not the successful bidder, any amount less than $132,000 being offered for the
property will cause a loss of the Authority's second trust deed and 45-year
affordability covenant.
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In our past experience with these transactions, when other potential bidders at
for sales see that a government entity is bidding on a house, they will often
back away because of the complications involved (affordability covenants, previous
governmental funding assistance, etc.). Therefore, it is possible the Housing Authority
could purchase this property for the amount of the first trust deed ($61,279). If this is
the case, the Authority would retain the 45 year affordability covenant.
As of this writing, the condition of the property is not known; therefore, the
rehabilitation cost is an estimate. Staff has estimated approximately 25% of the total
potential purchase price; however, this figure could be much lower.
Given the current market conditions, it is anticipated the Authority would be able to
resell the property to a very -low income purchaser, and maintain the affordability
covenant along with its initial investment. Currently, the Authority has been selling
rehabilitated foreclosed homes in the same neighborhood for $135,000. Depending on
the purchase price and rehabilitation cost, the Authority could realize a net gain on this
property.
However, there is a question as to whether this is an acquisition that we wish to
pursue at this time. ABx1 26 states that "the entity assuming the housing functions
formerly performed by the redevelopment agency may enforce affordability covenants
and perform related activities pursuant to applicable provisions of the Community
Redevelopment Law" (Health & Safety Code Section 34176(3)(c). As it reads, the
Authority, having elected to be the Housing Successor to the former La Quinta
Redevelopment Agency, is not required to enforce affordable housing covenants. The
Authority may wish to forgo this transaction and use its available cash balance on
other projects or programs. In addition, the Department of Finance has issued an
opinion that any proceeds from the sale or rental of affordable properties could be
swept away and redistributed to taxing agencies. This opinion is being challenged; the
outcome is still unknown.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Housing Authority include:
1. Do not approve the acquisition of the property located at 52-830 Avenida
Martinez; or
2. Approve the acquisition of the property located at 52-830 Avenida Martinez
("Property"), and approve an appropriation of $162,000 from unallocated
Housing Authority Project Area no. 1 unallocated reserves, to cover acquisition,
rehabilitation, and resale costs, and authorize RSG, Inc. to act on the Housing
Authority's behalf at the trustee's sale; or
,..• 009
3. Provide staff with alternative direction.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Approved for submission by:
Mark Weiss, Executive Director
-.4 . 010
DEPARTMENT REPORT: _ 1 4
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TO: Honorable Chair and Members of the Housing Authority
FROM: Susan Maysels, Interim Authority Secretary
DATE: May 15, 2011
SUBJECT: Discussion Regarding Schedule to Consider Commission
Appointments
Staff is requesting direction from the Housing Authority regarding the
schedule for applicant interviews and appointments to the Housing
Commission.
For the past few years, the Council/Authority has begun a June meeting at
1:00 p.m. to conduct interviews and make appointments to the City Boards,
Committee and Commissions. In anticipation of placing this on the June 19`h
agenda, the application submission deadline was set for May 30`h, however it
would be possible to prepare the report in time for the June 51h meeting
should that be Authority Members' preference. At present, the June 191h
Council meeting has no Study Session items or Public Hearings scheduled.
Applications are being accepted for the following:
Housing Commission - 2 tenant positions with one age 62 +