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2019 07 02 HA Special MeetingHOUSING AUTHORITY 1 July 2, 2019 SPECIAL MEETING NOTICE AND CALL OF SPECIAL MEETING OF THE LA QUINTA HOUSING AUTHORITY TO THE MEMBERS OF THE HOUSING AUTHORITY OF THE CITY OF LA QUINTA AND TO THE CITY CLERK/AUTHORITY SECRETARY: NOTICE IS HEREBY GIVEN that a special meeting of the Housing Authority of the City of La Quinta is hereby called to be held on July 2, 2019, commencing at 4:00 p.m., at La Quinta City Hall, 78495 Calle Tampico, La Quinta, California for the following purpose: STUDY SESSION 1. DISCUSS AFFORDABLE HOUSING DEVELOPMENT OPTIONS Dated: June 28, 2019 John Peña JOHN PEÑA, Chairperson DECLARATION OF POSTING I, Monika Radeva, Housing Authority Secretary, do hereby declare that the foregoing notice for the Special La Quinta Housing Authority meeting of July 2, 2019, was posted on the outside entry to the Council Chamber at 78495 Calle Tampico, and on the bulletin boards at 51321 Avenida Bermudas and 78630 Highway 111 on June 28, 2019 DATED: June 28, 2019 MONIKA RADEVA, Authority Secretary La Quinta Housing Authority HOUSING AUTHORITY AGENDA 1 JULY 2, 2019 SPECIAL MEETING HOUSING AUTHORITY AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico La Quinta SPECIAL MEETING TUESDAY, JULY 2, 2019 AT 4:00 P.M. CALL TO ORDER ROLL CALL: Authority Members: Evans, Fitzpatrick, Radi, Sanchez, Chairperson Peña VERBAL ANNOUNCEMENT – AB 23 [AUTHORITY SECRETARY] PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA 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. The Housing Authority 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 STUDY SESSION PAGE 1. DISCUSS AFFORDABLE HOUSING DEVELOPMENT OPTIONS 3 CHAIR AND BOARD MEMBERS' ITEMS REPORTS AND INFORMATIONAL ITEMS – NONE ADJOURNMENT *************************************** The next regular quarterly meeting of the Housing Authority will be held on July 16, 2019 at 4:00 p.m. in the City Council Chambers, 78495 Calle Tampico, La Quinta, CA 92253. Housing Authority agendas and staff reports are available on the City’s web site: www.laquintaca.gov HOUSING AUTHORITY AGENDA 2 JULY 2, 2019 SPECIAL MEETING DECLARATION OF POSTING I, Monika Radeva, Authority Secretary of the La Quinta Housing Authority, do hereby declare that the foregoing agenda for the La Quinta Housing Authority was posted near the entrance to the Council Chambers at 78495 Calle Tampico and on the bulletin boards at 51321 Avenida Bermudas and 78630 Highway 111, on June 28, 2019. DATED: June 28, 2019 MONIKA RADEVA, Authority Secretary La Quinta Housing Authority Public Notices  The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s Office at (760) 777-7092, 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 Authority, arrangement should be made in advance by contacting the City Clerk's Office at (760) 777- 7092. A one (1) week notice is required.  If background material is to be presented to the Housing Authority during a meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting.  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 78495 Calle Tampico, La Quinta, California, 92253, during normal business hours. City of La Quinta HOUSING AUTHORITY MEETING: July 2, 2019 STAFF REPORT AGENDA TITLE: DISCUSS AFFORDABLE HOUSING DEVELOPMENT OPTIONS EXECUTIVE SUMMARY •The Housing Authority (Authority) has 1,285 affordable units wherein 50 percent are affordable to very-low-income households; of these, 386 are silent second trust deed loans and 1 is a residential rehabilitation loan. •The Authority has eight vacant parcels that are suitable for affordable housing development (Attachment 1). The Authority has 3 years to identify plans for these sites. •Development options include congregant care, veteran housing, and multifamily and single-family housing. FISCAL IMPACT The Authority has approximately $28.9 million that must be used to develop or preserve affordable housing; $11.2 million for very low-income housing; $1.4 for moderate, low and very low-income housing; and $16.3 for moderate or low- income housing. BACKGROUND/ANALYSIS The Authority was established to own rental properties in the City of La Quinta that were scheduled for substantial rehabilitation, and to hold title to vacant properties that could be developed with single and multi-family housing. In the past, the Authority had over 250 sewer subsidy loans that have since termed out and were deleted from the Authority’s inventory at the end of 2018. Currently, the Authority has 1,285 affordable units with over 50% being affordable to very-low income households. The following shows the unit breakdown: -869 Multi-family units (361 Senior) o 606 very-low income (275 Senior) o 234 low income (86 Senior) o 29 moderate income -386 Silent Second Deeds of Trust o 79 very low income o 189 low income o 118 moderate income -28 Single Family Rental Homes in the Cove o 28 very low income STUDY SESSION ITEM NO. 1 3 -2 Habitat for Humanity - Single Family Homes o 2 very low income Vacant Property Inventory The Authority has eight vacant sites that are available for affordable housing development. In 2017, the Authority passed a resolution that granted staff five years to develop plans to either develop these properties with low- and moderate-income housing or sell the properties and deposit the proceeds into the Low- and Moderate-Income Housing Fund for future affordable housing development. At that time, staff reached out to local affordable housing developers, non-profits, the County of Riverside, and local school districts to see if they had any interest in acquiring these properties for affordable housing development; none of these entities were interested. The Authority’s inventory includes: •Seven (7) parcels approximately 5,000 square feet or less in size and zoned for single-family residential development. Four (4) of the parcels are adjacent to one another; however, they will be affected by the City’s Complete Streets Project. •One (1) parcel is anticipated to be approximately 2-3 acres in size located directly behind the City’s new X Park. This parcel could accommodate 15 units. The types of affordable housing that could be considered are congregant care, veteran, multifamily, and single-family housing. The Authority also has the option to sell the properties to developers for market-rate development and then deposting all sale proceeds into the Low- and Moderate- Income Housing Fund. However, at some point the Authority would need to expend these funds to develop affordable housing. Staff has reviewed the Authority’s parcel inventory with the Housing Commission. They recommended the following: single-family housing on the smaller Cove lots, and veteran family housing in a modular or non-conventional construction type on the 2-3 acres by the X Park. Staff recommends the following: •Sell the seven vacant parcels for market-rate housing and deposit the sale proceeds into the Low- and Moderate- Income Housing Fund. •Retain an affordable housing developer/operator to develop and manage a scattered site project of 15 units or less by the X Park site. •Direct staff to identify properties that the Authority may purchase for a larger scale development of at least 70 units; retain an affordable housing developer/operator to then develop and manage an affordable multi-family development. Staff seeks the Authority’s direction. Prepared by: Angela Ferreira, Management Analyst Approved by: Jon McMillen, Executive Director Attachment: 1. Available properties 4 773-223-019 Southeast Section of Avenida Villa and Calle Sonora ATTACHMENT 1 ATTACHMENT 15 773-223-022 Southeast Corner of Avenida Herrera and Calle Sonora 6 770-174-001 Calle Tamazula 7 773-145-010, 011, 022, and 023 Avenida Navarro and Calle Sinaloa 8 Future X Park Dune Palms and Westward Ho 9 10 POWER POINTS HOUSING AUTHORITY SPECIAL MEETING JULY 2, 2019 Housing Authority Special Meeting ‐ July 2, 2019 24 Housing Authority Meeting July 2, 2019 S1 – Affordable Housing Discussion Background •Authority has 1,285 affordable units –869 multi-family –386 silent second seeds of trust –28 single family homes –2 Habitat for Humanity homes 25 Available Funds Fund Balance Affordability Requirements $11.2 very low‐income $1.4 moderate, low, and very low‐income $16.3 moderate or low income $28.9 million available for projects Types of Housing •Congregant care •Veteran •Multi-family •Single-family Housing Authority Special Meeting ‐ July 2, 2019 26 Inventory •Six vacant parcels about 5,000 square feet or less and one approximately 11,900 square feet; zoned single family •One 2-3 acre parcel behind X Park site 773-223-019 SE Section of Avenida Villa and Calle Sonora .11 acres Housing Authority Special Meeting ‐ July 2, 2019 27 773-223-022 Southeast Corner of Avenida Herrera and Calle Sonora .11 acres 770-174-001 Calle Tamazula .27 acres Housing Authority Special Meeting ‐ July 2, 2019 28 773-145-010, 011, 022, and 023 Avenida Navarro and Calle Sinaloa .12 acres per parcel Dune Palms and Westward Ho 2-3 acres Future X  Park Housing Authority Special Meeting ‐ July 2, 2019 29 Recommendation •Sell the seven parcels for market‐rate housing •Retain an affordable housing developer/operator for scattered site project of 15 units or less by X Park •Identify properties that Authority could purchase for larger development of at least 70 units Vision Housing Authority Special Meeting ‐ July 2, 2019 30 Housing Authority Special Meeting ‐ July 2, 2019