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2023 05 16 HA Special MeetingGEM of the DESERT — NOTICE AND CALL OF SPECIAL MEETING OF THE LA QUINTA HOUSING AUTHORITY TO THE MEMBERS OF THE LA QUINTA HOUSING AUTHORITY AND TO THE AUTHORITY SECRETARY: NOTICE IS HEREBY GIVEN that a Special Meeting of the La Quinta Housing Authority is hereby called to be held on Tuesday, May 16, 2023, commencing at 3:00 p.m. for Closed Session and 6:00 p.m. (or thereafter) for Open Session at La Quinta City Hall located at 78495 Calle Tampico, La Quinta, CA 92253 for the following purpose: CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR VACANT PROPERTY LOCATED AT SOUTHEAST SECTION OF AVENIDA VILLA AND CALLE SONORA; ASSESSOR PARCEL NUMBER 773-233-019 HOUSING AUTHORITY NEGOTIATOR: JON MCMILLEN, EXECUTIVE DIRECTOR NEGOTIATING PARTY: DEAN FAMILY TRUST UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT CONSENT CALENDAR 1. APPROVE REGULAR QUARTERLY HOUSING AUTHORITY MINUTES OF JANUARY 17, 2023 BUSINESS SESSION 1. APPOINT HOUSING AUTHORITY CHAIRPERSON AND VICE -CHAIRPERSON FOR CALENDAR YEAR 2023 2. AUTHORIZE FUNDING TO PROVIDE ASSISTANCE TO AREA HOMELESS SERVICE PROVIDERS AND HOMELESS PREVENTION PARTNERS FOR FISCAL YEAR 2023/24 STUDY SESSION 1. DISCUSS AFFORDABLE HOUSING INVENTORY AND CURRENT AFFORDABLE HOUSING CONDITIONS LA QUINTA HOUSING AUTHORITY SPECIAL MEETING Page 1 of 2 MAY 16, 2023 Dated: May 12, 2023 /s/ Steve Sanchez STEVE SANCHEZ, Chairperson Attest: V* MONIKA RADEVA, Authority Secretary DECLARATION OF POSTING I, Monika Radeva, Authority Secretary, do hereby declare that the foregoing notice for the Special Meeting of the Housing Authority of the City of La Quinta on May 16, 2023, was posted on the City's website, near the entrance to the Council Chamber at 78495 Calle Tampico, and the bulletin board at the La Quinta Cove Post Office at 51321 Avenida Bermudas, on May 12, 2023. *1L r MONIKA RADEVA, Authority Secretary La Quinta Housing Authority LA QUINTA HOUSING AUTHORITY SPECIAL MEETING Page 2 of 2 MAY 16, 2023 ta Qa�fra — GEM of the DESERT — Housing Authority agendas and staff reports are available on the City's web site: www.laauintaca.gov HOUSING AUTHORITY AGENDA CITY HALL COUNCIL CHAMBER 78495 Calle Tampico La Quinta SPECIA MEETING TUESDAY, MAY 16, 2023 3:00 P.M. CLOSED SESSION 16:00 P.M. OPEN SESSION (or thereafter) Members of the public may listen to this meeting by tuning -in live via httD://laauinta.12milesout.com/video/live. CALL TO ORDER ROLL CALL: Authority Members: Evans, Fitzpatrick, McGarrey, Pena, Chairperson Sanchez VERBAL ANNOUNCEMENT — AB 23 [AUTHORITY SECRETARY] PLEDGE OF ALLEGIANCE PUBLIC COMMENTS - INSTRUCTIONS Members of the public may address the Housing Authority on any matter listed or not listed on the agenda as follows: WRITTEN PUBLIC COMMENTS can be provided either in -person during the meeting by submitting 15 copies to the City Clerk, it is requested that this takes place prior to the beginning of the meeting; or can be emailed in advance to CityClerkMail(o)LaQuintaCA.gov, no later than 12:00 p.m., on the day of the meeting. Written public comments will be distributed to Housing Authority, made public, and will be incorporated into the public record of the meeting, but will not be read during the meeting unless, upon the request of the Chairperson, a brief summary of public comments is asked to be reported. HOUSING AUTHORITY AGENDA Page 1 of 5 MAY 16, 2023 SPECIAL MEETING If written public comments are emailed, the email subject line must clearly state "Written Comments" and should include: 1) full name, 2) city of residence, and 3) subject matter. VERBAL PUBLIC COMMENTS can be provided in -person during the meeting by completing a "Request to Speak" form and submitting it to the City Clerk; it is requested that this takes place prior to the beginning of the meeting. Please limit your comments to three (3) minutes (or approximately 350 words). Members of the public shall be called upon to speak by the Chairperson. In accordance with City Council Resolution No. 2022-027, a one-time additional speaker time donation of three (3) minutes per individual is permitted; please note that the member of the public donating time must: 1) submit this in writing to the City Clerk by completing a "Request to Speak" form noting the name of the person to whom time is being donated to, and 2) be present at the time the speaker provides verbal comments. Verbal public comments are defined as comments provided in the speakers' own voice and may not include video or sound recordings of the speaker or of other individuals or entities, unless permitted by the Chairperson. Public speakers may elect to use printed presentation materials to aid their comments; 15 copies of such printed materials shall be provided to the City Clerk to be disseminated to the Housing Authority, made public, and incorporated into the public record of the meeting; it is requested that the printed materials are provided prior to the beginning of the meeting. There shall be no use of Chamber resources and technology to display visual or audible presentations during public comments, unless permitted by the Chairperson. All writings or documents, including but not limited to emails and attachments to emails, submitted to the City regarding any item(s) listed or not listed on this agenda are public records. All information in such writings and documents is subject to disclosure as being in the public domain and subject to search and review by electronic means, including but not limited to the City's Internet Web site and any other Internet Web -based platform or other Web -based form of communication. All information in such writings and documents similarly is subject to disclosure pursuant to the California Public Records Act [Government Code § 7920.000 et seq.]. 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 pursuant to the "Public Comments — Instructions" listed above. 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 the Brown Act [Government Code § 54954.2(b)]. HOUSING AUTHORITY AGENDA Page 2 of 5 MAY 16, 2023 SPECIAL MEETING TELECONFERENCE ACCESSIBILITY — INSTRUCTIONS Teleconference accessibility may be triggered in accordance with AB 2449 (Stats. 2022, Ch. 285), codified in the Brown Act [Government Code § 549531, if a member of the Housing Authority requests to attend and participate in this meeting remotely due to `just cause" or "emergency circumstances, " as defined, and only if the request is approved. In such instances, remote public accessibility and participation will be facilitated via Zoom Webinar as detailed at the end of this Agenda. CONFIRMATION OF AGENDA CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 FOR VACANT PROPERTY LOCATED AT SOUTHEAST SECTION OF AVENIDA VILLA AND CALLE SONORA; ASSESSOR PARCEL NUMBER 773-233-019 HOUSING AUTHORITY NEGOTIATOR: JON MCMILLEN, EXECUTIVE DIRECTOR NEGOTIATING PARTY: DEAN FAMILY TRUST UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. PAGE 1. APPROVE REGULAR QUARTERLY HOUSING AUTHORITY MINUTES OF JAN UARY 17, 2023 BUSINESS SESSION PAGE 1. APPOINT HOUSING AUTHORITY CHAIRPERSON AND VICE -CHAIRPERSON FOR CALENDAR YEAR 2023 2. AUTHORIZE FUNDING TO PROVIDE ASSISTANCE TO AREA HOMELESS SERVICE PROVIDERS AND HOMELESS PREVENTION PARTNERS FOR FISCAL YEAR 2023/24 STUDY SESSION PAGE 1. DISCUSS AFFORDABLE HOUSING INVENTORY AND CURRENT AFFORDABLE HOUSING CONDITIONS HOUSING AUTHORITY MEMBERS' ITEMS ADJOURNMENT *************************************** HOUSING AUTHORITY AGENDA Page 3 of 5 MAY 16, 2023 SPECIAL MEETING The next regular quarterly meeting of the Housing Authority will be held on July 18, 2023, at 4:00 p.m. in the City Council Chamber, 78495 Calle Tampico, La Quinta, CA 92253. 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 on the City's website, near the entrance to the Council Chamber at 78495 Calle Tampico, and the bulletin board at the La Quinta Cove Post Office at 51321 Avenida Bermudas, on May 12, 2023. DATED: May 12, 2023 -ft MONIKA RADEVA, Authority Secretary La Quinta Housing Authority Public Notices Agenda packet materials are available for public inspection: 1) at the Clerk's Office at La Quinta City Hall, located at 78495 Calle Tampico, La Quinta, California 92253; and 2) on the City's website at https://www.laguintaca.gov/business/city-council/city- council-agendas, in accordance with the Brown Act [Government Code § 54957.5; AB 2647 (Stats. 2022, Ch. 971)]. 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- 7123, 24-hours in advance of the meeting and accommodations will be made. If background material is to be presented to the Housing Authority during a Housing Authority meeting, please be advised that 15 copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this takes place prior to the beginning of the meeting. *** TELECONFERENCE PROCEDURES — PURSUANT TO AB 2449*** APPLICABLE ONLY WHEN TELECONFERENCE ACCESSIBILITY IS IN EFFECT Verbal public comments via Teleconference — members of the public may attend and participate in this meeting by teleconference via Zoom and use the "raise your hand" feature when public comments are prompted by the Chair; the City will facilitate the ability for a member of the public to be audible to the Housing Authority and general public and allow him/her/them to speak on the item(s) requested. Please note - members of HOUSING AUTHORITY AGENDA Page 4 of 5 MAY 16, 2023 SPECIAL MEETING the public must unmute themselves when prompted upon being recognized by the Chairperson, in order to become audible to the Housing Authority and the public. Only one person at a time may speak by teleconference and only after being recognized by the Chair. ZOOM LINK: https://us06web.zoom.us/m/82540879912 Meeting ID: 825 4087 9912 Or join by phone: (253) 215 — 8782 Written public comments — can be provided in person during the meeting or emailed to the City Clerk's Office at CityClerkMail(a)LaQuintaCA.gov any time prior to the adjournment of the meeting, and will be distributed to the Housing Authority, made public, incorporated into the public record of the meeting, and will not be read during the meeting unless, upon the request of the Chairperson, a brief summary of any public comment is asked to be read, to the extent the City Clerk's Office can accommodate such request. HOUSING AUTHORITY AGENDA Page 5 of 5 MAY 16, 2023 SPECIAL MEETING CONSENT CALENDAR ITEM NO. 1 HOUSING AUTHORITY MINUTES TUESDAY, JANUARY 17, 2023 CALL TO ORDER A regular quarterly meeting of the La Quinta Housing Authority was called to order at 7:07 p.m. by Chairperson Sanchez. PRESENT: Authority Members: Fitzpatrick, McGarrey, Pena, and Chairperson Sanchez ABSENT: Authority Member Evans VERBAL ANNOUNCEMENT — Authority Secretary Radeva made the required AB 23 announcement. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA — Confirmed CONSENT CALENDAR 1. APPROVE HOUSING AUTHORITY SPECIAL MEETING MINUTES OF DECEMBER 20, 2022 MOTION — A motion was made and seconded by Authority Members Pena/ McGarrey to approve the Consent Calendar as recommended. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). BUSINESS SESSION 1. ADOPT RESOLUTION TO APPROPRIATE FUNDS AND APPROVE AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS WITH BP DUNE PALMS, LP, BY GENERAL PARTNER BLACKPOINT PROPERTIES, LLC, TO ACQUIRE A PORTION OF CERTAIN REAL PROPERTY COMPRISED OF APPROXIMATELY 5.2 ACRES, LOCATED ON THE NORTHEAST CORNER OF HIGHWAY 111 AND DUNE PALMS ROAD (APN: 600-030-018); CEQA: THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15061(b)(3) COMMON SENSE EXEMPTION [RESOLUTION NO. HA 2023-001] Authority waived presentation of the staff report. Council discussed the front footage of the property needs to be designed in accordance with the Highway 111 Corridor revisioning plan. HOUSING AUTHORITY MINUTES Page 1 of 2 JANUARY 17, 2023 7 MOTION — A motion was made and seconded by Councilmembers Pena/ Fitzpatrick to appropriate funds from Fund 249 — Successor Agency 2011 Low/Mod Bond Fund in the amount of $2,237,183 and Unassigned Reserves in the amount of $1,387,009 to be transferred to the Land Acquisition account (Account No. 249-0000-74010), to be used for this property acquisition and all associated closing costs and to adopt Resolution No. HA 2023-001 to: 1) Find the project exempt from environmental review pursuant to California Environmental Quality Act Section 15061 (b)(3) "Common Sense Exemption;" and 2) Approve an Agreement for Purchase and Sale and Escrow Instructions with BP Dune Palms, LP, by General Partner Blackpoint Properties, LLC, to acquire a portion of certain vacant real property comprised of approximately 5.2 acres, located on the northeast corner of Highway 111 and Dune Palms Road (APN: 600-030-018); and 3) Authorize the Executive Director to execute the agreement substantially in the form attached, allowing for minor and non -substantive changes: A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BETWEEN THE LA QUINTA HOUSING AUTHORITY AND BP DUNE PALMS, LP, BY GENERAL PARTNER BLACKPOINT PROPERTIES, LLC, FOR A PORTION OF CERTAIN VACANT REAL PROPERTY COMPRISED OF APPROXIMATELY 5.2 ACRES, LOCATED ON THE NORTHEAST CORNER OF HIGHWAY 111 AND DUNE PALMS ROAD; IDENTIFIED AS ASSESSOR'S PARCEL NUMBER 600-030-018 Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). HOUSING AUTHORITY MEMBERS' ITEMS — None ADJOURNMENT There being no further business, it was moved and seconded by Authority Members Pena/Fitzpatrick to adjourn at 7:14 p.m. Motion passed: ayes — 4, noes — 0, abstain — 0, absent — 1 (Evans). Respectfully submitted, MONIKA RADEVA, Authority Secretary La Quinta Housing Authority HOUSING AUTHORITY MINUTES Page 2 of 2 JANUARY 17, 2023 8 BUSINESS SESSION ITEM NO. 1 City of La Quinta HOUSING AUTHORITY SPECIAL MEETING: May 16, 2023 STAFF REPORT AGENDA TITLE: APPOINT HOUSING AUTHORITY CHAIRPERSON AND VICE - CHAIRPERSON FOR CALENDAR YEAR 2023 RECOMMENDATION Appoint Housing Authority Chairperson and Vice -Chairperson for calendar year 2023. EXECUTIVE SUMMARY • On September 15, 2009, Council established the Housing Authority (Authority). The Authority adopted bylaws via Resolution HA 2009-001 establishing the procedure for electing the Chairperson and Vice -Chairperson. • On April 15, 2014, the Authority adopted amended and restated bylaws and rules of procedure via Resolution HA 2014-001. • Section 9 of the amended and restated Authority bylaws states that the Authority shall annually, at its first meeting held after December 30, vote to appoint two of its members to serve as Chairperson and Vice -Chairperson. FISCAL IMPACT • None. BACKGROUND/ANALYSIS The following Authority Members have held these positions in the past six years: Year Chairperson Vice -Chairperson 2017 Kathleen Fitzpatrick Steve Sanchez 2018 Steve Sanchez John Pena 2019 John Pena Robert Radi 2020 Robert Radi Kathleen Fitzpatrick 2021 Kathleen Fitzpatrick Steve Sanchez 2022 Steve Sanchez John Pena ALTERNA i IVES As this action is required by Authority bylaws, staff does not recommend an alternative. Prepared by: Monika Radeva, Authority Secretary Approved by: Jon McMillen, Executive Director 10 BUSINESS SESSION ITEM NO. 2 City of La Quinta HOUSING AUTHORITY SPECIAL MEETING" May 16, 2023 STAFF REPORT AGENDA TITLE: AUTHORIZE FUNDING TO PROVIDE ASSISTANCE TO AREA HOMELESS SERVICE PROVIDERS AND HOMELESS PREVENTION PARTNERS FOR FISCAL YEAR 2023/24 RECOMMENDATION Authorize funding to provide assistance to local homeless service providers and homeless prevention partners - Coachella Valley Rescue Mission (CVRM), Martha's Village and Kitchen (MVK), and Coachella Valley Association of Governments (CVAG) for fiscal year 2023/24. EXECUTIVE SUMMARY • The Housing Authority (Authority) allocated $300,000 of Authority funds to local homeless service providers and homeless prevention partners in fiscal year (FY) 2022/23. • These services positively impact the City and the greater Coachella Valley community, particularly in the eastern area. • Recommended FY 2023/24 funding of $250,000 by the Housing Authority: ✓ $83,333 to CVRM ✓ $83,333 to MVK ✓ $83,333 to CVAG • The Housing Commission reviewed and recommended this funding option for approval during the regularly scheduled meeting of March 8, 2023. FISCAL IMPACT The Low -Mod Housing Authority fund has a homeless funding budget of $250,000 for FY 2023/24 available in account number 243-0000-60532. The maximum allowed to be expended annually of these funds for homeless prevention services is $250,000, per Health and Safety Code Section 34176.1(a)(2). BAL;KGROUND/ANALYSIS The Authority annually allocates funding for local homeless service providers and homeless prevention partners in the Coachella Valley. 11 Staff recommends providing equal contributions of $83,333 to CVRM, MVK, and CVAG, as these organizations have a solid track record of serving the City and the greater Coachella Valley area assisting with critical homeless relief efforts. Each organization must sign a Memorandum of Understanding on an annual basis that mandates a report on the use of the funds, including the number of individuals from La Quinta that were assisted and the services they utilized. The Authority may provide this assistance pursuant to California Health and Safety Code's Community Development and Housing law, which states if the Housing Successor Agency (the Authority) has fulfilled certain obligations, the Authority may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium -term rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. On March 8, 2023, The Housing Commission recommended this funding option to be reviewed and approved by the Authority. ALTERNATIVES The Authority may elect not to support this funding option, divert funds to other organizations, or save funds for future projects; however, since these organizations have consistently provided support for our community, provided annual reports showing the contributions directly support the surrounding communities and La Quinta residents in need, and rely on these contributions for overall operation, staff does not recommend an alternative. Prepared by: Doug Kinley III, Management Analyst Approved by: Gilbert Villalpando, Director 12 STUDY SESSION ITEM NO. 1 City of La Quinta HOUSING AUTHORITY SPECIAL MEETING: May 16, 2023 STAFF REPORT AGENDA TITLE: DISCUSS AFFORDABLE HOUSING INVENTORY AND CURRENT AFFORDABLE HOUSING CONDITIONS RECOMMENDATION Discuss the City's affordable housing inventory and current affordable housing conditions. EXECUTIVE SUMMARY • The City has an inventory of 1,206 units of affordable housing spread between 11 affordable housing projects, with 6 of them serving seniors and 5 serving all ages. • In 2021, the 6th Cycle of the Regional Housing Needs Assessment mandated the City to build an additional 1,530 units of affordable housing to meet projected growth demands. • Several factors drive costs up for future affordable housing endeavors, creating a challenging environment to meet the demand for affordable housing growth. FISCAL IMPACT — None. BACKGROUND/ANALYSIS Over the years, the City has continuously coordinated with developers to build and provide quality affordable housing for residents. The City currently has an inventory of 1,206 deed restricted housing units with affordability covenants; with all affordability covenants in place for the next eight -year regional housing cycle (2021 to 2029). Project Covenant Expiration Date Seasons La Quinta Senior Apartments 2051 Aventine Apartments 2056 Seasons at Miraflores Senior Apartments 2057 Hadley Villas Senior Apartments 2059 Vista Dunes Courtyard Homes 2063 13 Wolff Waters Place 2065 Washington Street Apartments 2066 Coral Mountain Apartments 2070 The State of California's Housing and Community Development department and Southern California Association of Governments conduct an assessment of affordable housing units inventory every eight years, which is known as the Regional Housing Needs Assessment (RHNA) mandate. The most recent RHNA assessment, conducted in 2021, determined that the City will need an additional 1,530 units of affordable housing to meet projected growth. 2022-2029 Regional Housing Needs Assessment Household Income Levels Income as a Percent of County Median RHNA Allocation Percent Very Low Less than 50% 420 27.4 Low 51 %-80% 269 17.6 Moderate 81 %-120% 297 19.4 Above -Moderate Over 120% 544 35.6 Total 1,530 100% Costs associated with construction of housing projects are on the rise, with many projects in the Coachella Valley exceeding $500k per unit. The Inland Empire region recorded a 30% increase in overall development costs per unit since the 2008 recession, which is accompanied by newly established "green building" requirements for creating sustainable structures that are environmentally responsible and resource -efficient throughout a building's life -cycle of operation, maintenance, and future renovation. As there are a multitude of economic factors and existing constraints that affect development costs, it will be difficult to meet the additional 1,530 unit buildout required by October 2029 per the 2021 RHNA mandate. Availability of power and water, such as obtaining will -serve commitments from utility providers, as well as sustainability of projects being funded and awarded to preserve the underlying affordability components of their projects, are proving more difficult as staff receives feedback from developers/builders. Proximity to resources such as transportation, job opportunities, schools, retail, health services, and other needs is also a factor that must be considered when identifying sites for development. Staff has an online directory and resource center for those interested in affordable housing in La Quinta at the following website: https://www.laguintaca.gov/residents/local- resources/affordable-housing Prepared by: Doug Kinley III, Management Analyst Approved by: Gilbert Villalpando, Director Attachment: 1. Affordable Housing Overview Map 14 taQaGl'fra GEM of cbe DESERT — - ATTACHMENT 1 Affordable Housing Properties POWER POINTS HOUSING AUTHORITY SPECIAL MEETING MAY 16, 2023 CALIFORNIA ems`' . �.� � ..art-•�- � _ Housing Authority Special Meeting May 16, 2023 I i _" a ;`�C ._ •� fin... ��. CALIFORNIA �''����J� Housing Authority Special Meeting May 16, 2023 B2 -Authorize Funding for Local Homeless Services for FY 2023/24 + 'i S Y ' • y-' i l• �� . _� 1.. - ��v!� "_ - ...� L • � � tea: V,F 1 Homeless Relief Program Overview • Relationship with Local Area Homeless Relief Providers • Homelessness in La Quinta and East Coachella Valley — City - 7 P.I.T., 2022 — Indio: 4t" largest unsheltered count • Housing Authority ability to provide funds Program History: Previous Years and FY 2023/24 • Funding used by organizations best suited for their ability to provide • Equal allotments to all providers • Maximum of $250,000 each FY, per State Code • Additional funding provided from General Fund Use of Funds by Each Organization • MVK: Placement of Individuals and Facilitate Work Programs • CVRM: Shelter and Care • CV Housing First (CVAG): Chronically Homeless Individuals Questions -and 14 Recommendations - � 4 .,; CALIFORNIA 's'~ ��-�' ..•art-'�!-� - - . Housing Authority Special Meeting May 16, 2023 S1 -Discuss Affordable Housing Inventory and Current Conditions 1"r - C AU What is Affordable Housing? • Affordable based on Median Household Income • Typically, a partnership between Government and Developers • Deed Restriction for Affordability Covenant • Income Certification required based on Income Limits of project What are Income Limits? • HCD publishes late April or early May • Area Median Income: midpoint of income, not average • Categorized by: — Extremely Low (0-30%) — Very Low (31-50%) — Low (51-80% — Moderate (81 %-120%) — Above Moderate (Over 120%) May 16, 2023 CITY OF LA QUINTA HOUSING AUTHORITY - RIVERSIDE COUNTY 2022 Affordable Income Limits (Income figures based on Department of Housing and Community Development Income Limits dated May 13, 2022 1 Person Household Median Income: $61,200 2 Person Household ;Median Income: $69,900 3 Person Household ;Median Income: $78,650 4 Person Household ;Median Income: $87,400 Income Category Annual Income did ' Income Category! Annual Income Income Category! Annual Income Income Category Annual Income Acutely Low $9,150 Acutely Low $10,500 Acutely Low $11,800 Acutely Low $13,100 Extremely Low $18,500 Extremely Low $21,150 Extremely Low $23,8nn Extremely Low $27,750 Very Low $30,800 Very Low $35,200 Very Low $39,600 Very Low $44,000 Low $49,300 Low $56,350 Low $63,400 Low $70,400 Moderate $73,450 Moderate $83,900 Moderate $94,400 Moderate : $104,900 5 Person Household Median Income: 594,400 i 6 Person Household ;Median Income: 5101,400 i 7 Person Household Median Income: 5108,400 i 8 Person Household :Median Income: 5115,350 Income Caze or g y' Annual Income Income Ca e or g yl Annual Income Income Ca e or g y' Annual Income Income Ca e or g y' Annual Income Acutely Low $14,150 Acutely Low $15,200 Acutely Low $16,250 Acutely Low $17,300 Extremely Low $32,470 Extremely Low $37,19U Extremely Low $41,910 Extremely Low $46,630 Very Low $47,550 Very Low $51,050 Very Low $54,600 Very Low $58,100 Low $76,050 Low $81,700 Low $87,300 Low $92,950 Moderate $113,300 Moderate $121,700 Moderate $130,100 Moderate $138,450 101 C11rV Of LA QUIN rA HOUS1NG AUTHORrTV - RIVERSIDE COUNTY 2022 Affordable Rent Limits (Fpwme figwrec based or7 ceparrment of+fausirpg and Communfty Development rncume limits datedMav 13, z0az Stuidlo 1 Bt-drorifii 2 FICdroorik 3 Bedroom Median income: `o1,20U ; mebian income: 5,b9,90U !Median Income: 5mo3 ,t] !Median 1nconie: S13f.440 t-taninl'y Al`fcrda' 2` r-loathly tit mh!y I Holltr,,v Morrie CaiEg4r Rent* Income C2Se4]Sr y Affordable Rent Income Gd 1ey}4 ay Aifordabie React In L4mg GeSeA cry AfI•ordabtf± Rent A_cutedy i.ow S23Q Acutely Low S26,2 +4LUWy LQ'A U95 AaVi4y Low S325 _ Extremely Low $524 cktremely Low $459 Extremely Lary $590 Extremely Low $656 Very tnw 5765 Very Low $374 Very Law "3 Very Low S1r093 Law 393E -:,F,83 Lnw S1.449 LOW S1,180 moderate S2,163 i_m 51,311 moderate Moderate 11.922 mod&ate $2.404 4 Bedroom 5 Bedroom 6 bedroom 7 Bedroom Megliarl [ncame: 594,404 Meehan Income: $101,440 Median Income: SL08r404 Median Income: 5115,350 T +come Category Monthly ardabte Refit income category AffardaUe Pent Income category Affordable Stecit imonmy ncome Category monthiy Aftrdab a Rent 4_uteiy Low S�5 Acutely Low $380 ACUtely LDW $407 AELItely LOW S&33 _:.7'' MEW LOW $7q9 E=emeCy LOW $761 EXCreMey Low $1313 Extremely LOtiv $865 Very LOW 51.1$9 Very Low $1,268 Very Lory 51.355 Very Law 5LI.­2 Low 51.416 Lbw $1,521 Low 51,625 1 Low S1,730 Moderate 52,596 Moderate $2,799 Moderate $2.981 1 Moderate S_�,In 102 51 May 16, 2023 CITY OF LA QUINTA HOUSING AUTHORITY - RIVERSIDE COUNTY - WATERCOLORS 2022 Affordable Housing Costs (Income figures based on Department of Housing and Community Development Income Limits dated May I3, 2022 Studio 1 Bedroom 2 Bedroom 3 Bedroom Median Income: $61,200 !Median Income: $69,900 !Median Income: $78,650 !Median Income: $87,400 i Monthly Affordable i Monthly Affordable ! ! Monthly Affordable ! ! Monthly Affordable Income Category! Housing Cast !Income Category! i Housing Cost !Income Category! i Housing Cost !Income Category: i Housing Cost Low « j $1,071 Low $1,223 Low $1,376 Low $1,530 Moderate tat $1,964 Moderate $2,243 Moderate $2,523 Moderate $2,804 4 Bedroom 5 Bedroom 6 Bedroom 7 Bedroom Median Income: $94,400 ;Median Income: $101,400 ;Median Income: $108,400 ;Median Income: $115,350 ! Monthly Affordable Income Category; ! Monthly Affordable Income Category! ! Monthly Affordable Income Category! ! Income Category; Monthly Affordable Housing Cost Housing Cost Housing Cost Housing Cost Low $1,652 i Low $1,775 i Low $1,897 Low $2,019 Moderate j $3,029 j Moderate j $3,253 j Moderate j $3,478 Moderate j $3,701 103 Pace el Tlu A,reraae &r9 behach.a horns In Earn GYn aw+,ar�cw tam HA.R 3 w.r3 SEMA40 fiJ& 11711 364r. a..atlot6 i.se: Raa.17 HK,ti7 03`761 U% MLiM 30- bc7,8YI 3.13 ".t Ititi'dN 11,3nw 3.7% "K217 S'0.3 -UO,G� 2SL` i.W.73 7swm YY3UdV. Ei': L•I,,if �,ow M,c 2.grS 1' •16 s1�.,AN ;1.mA4m a.v11 �avRle 3a� ra !iu :.30C tT.W I61OA6F irill% 3A'S 116i.An ''v1 n Nkh Ott.n 5701 =.N SWA* 1717phr AJ% WE= 'N"r.",. ba. 3Am S4UT4 $1.1% L1 11 6c6l69 t': = 1d65.B15 ' Si 1ea47v[ ✓3^: fjR,33t 11 i]'. vftd* t i,r74 $SSW 502'"1 L463q -T2% 1 Ili i' 1J lF1,Yri itr nma 104 P" of The Avwm a Sill Idomr • The average rental unit in Riverside County in 2022 was $1,791 per month. For the average renter to afford to live in our region, they must earn nearly 95% more per hour than their current wages. Ranters' WEtge Renters Wage NredeCP .n 2022 to Affcrd Average Mc"hly Rem Price 52 Mortgages in 2023 National Data • Avg. Mortgage Pmt: — 30-Year: $3,048/Month — 15-Year: $3,976/Month • Median Mortgage Pmt: — 30-Year: $1,672/Month 'Data gathered through Forbes, Business State of California Data • Avg. Mortgage Pmt: — 30-Year: $3,605/Month (Nov. 2022) • Median Mortgage Pmt: — 30-Year: $2,523/Month (2nd Highest in Country) and National Association of Realtors (2023) Rent in 2023 Median Rent in Riverside Area • Studio: $1,404 • 1-Bedroom: $1,533 • 2-Bedroom: $1,920 • 3-Bedroom: $2,605 • 4-Bedroom: $3,204 Average Rent in State of California • Studio: $1,538 • 1-Bedroom: $1,854 • 2-Bedroom: $2,274 • 3-Bedroom: $3,006 • 4-Bedroom: $3,578 "Data gathered through Forbes, Business Insider, US Census Bureau, HUD, Freddie Mac, and National Association of Realtors (2023) Affordable Housing in La Qu i nta • 11 Affordable Housing Projects — 1206 Units • 6 Senior/Disabled Adult Affordable Housing Projects — 565 Units (47%) • 5 Multifamily Affordable Housing Projects — 641 Units (53%) Affordable Housing Properties South La Qulnta VIR tjo a, f �l �� i lii 4Y• ,'i` tit - � xw' 1 Any •. • GevJr Rintsh ° �_ : .,' � ll� ' qw.-�_:_l[["i 4 ��,. HWY 111 and North La Quinta 110 fffa f. � r is • �i 4 - ' � ti ...• ' f�.�y'JY � �y� +iJ'. ,�� .�'_ � ;�. iT�yj�}� l�iy+ �j � �.i- ! ,t,r ^� •..��_`- .ram- rt L Aventine Apartments ice• .' A. • 10 Low • 10 Moderate • All Ages Affordable Villa Cortina • 116 Low Apartments 9 All Ages Affordable * 80 Very Low * All Ages Affordable ........... Vista Dunes A" Wolff Waters 218 Very Low Place All Ages Affordable Coral Mountain Apartments • 176 Very Low • All Ages Affordable j FM La Quinta Cove • 28 Single Family Residences ranging from Affordable Very Low to Low Homes • All Ages Affordable 7 i Hadley Villas • 79 Very Low • Senior Affordable 1 x i . 8rM1 r `iT•f''' '� Seasons at .F Miraflores 118 Low and Moderate ,.. Senior Affordable �'rr. Seasons at La Quinta 92 Very Low and Low • Senior Affordable m 7mm"Mm— Ow, 1.* �M.1121 " T Washington . 140 Very Low Street Apartments * Senior, Veteran, and Disabilities Affordable 1 �4 • 139 Moderate Watercolors • Senior "For Purchase" Affordable Housing y f_:_- Affordable Housing Properties HWY 111 and North La Quinta South La Quints ' �� ` � fi w,�.w�y� � �^I�IIi�=�. • "�iri�"�.��_-Y.i �.�siy:A��'��'' alp' t• Summary of Affordable Housing • Very Low: 782 Units (65%) • Low: 271 Units (22%) • Moderate: 153 Units (13%) TOTAL: 1,206 Units of Affordable Housing Future Affordable Housing and the RHNA • Extremely Low: 210 • Very Low: 210 • Low:269 • Moderate:297 • Above Moderate: 544 (592 Built as of December 2022) TOTAL: 1,530 Units over 8 Years (938 Remaining) (Approx. 192 Units/Year) First Year of Wh Cycle RHNA fPR.rtinM9V, Single Family Year Moderate 2021 i t 66 (0 _toter through Projected 1,530 Need RHN Remaining r 966 Need Very Low Low Moderate Moderate Numherof Income Income Income Income Units Current Opportunities May 16, 2023 63 Are we on track? • Approximately 123 Units/Year (all residential types) last RHNA Cycle • Potential for 1,528 Units projected (affordable) (Table II-50 Vacant Land Inventory) • Zero Projects at -risk for conversion and loss of Affordability (Table II-51 Assisted Multifamily Project Inventory) How Affordable is Affordable? • UC Berkeley Terner Center for Housing Innovation Study 2020 • Since 2008, average cost/unit of 9% LIHTC new construction increased from $411 k to $480k in 2019, an increase of 17%. • Cost/SF: — $451/SF in 2008 versus $700/SF in 2019 — 55% increase (caused by what is being built, and how big) May 16, 2023 6ao.o()O 800 Tin gflo,ixm %fi[I Q n �Hl V u 8 200AH H] I 100.007 a1❑ 4} 2005 200V 2010 2011 2012 2 nB 2UiJ 20ikS LW16 207 2of& 2OL9 mcrig PCL Urd( Cb6t PCC SW31[ Foot or Tc�raCn�orMalys'sd F05t OhUHTC Ronal AnpL—I.—.6.d Wrac d-twJfo-FA- 129 ktil] 65 May 16, 2023 Figure 3: Rer tuna[ Differences in Total DeveLaprnE nt Costs Per UnIL Over• Time 60%*UO q�_ ,fj4U,UU0 N G F, 44U,000 m a_ a.� � $pil,ifOO E a 0 g '1D{Y,Uf]{3 E- F f (sp,pn o A Stflt&endo S9V Area Inland Smtherii C l fcovntA 20nm-20 in ' 2n11-2613 ■ 2n14-2ni6 ■ 2017-2019 Source- Temer Center Analyses ofTCAC IM LIHTC ProjectApplicat6r15. ALL figures adjusted Far inflation. 131 Figure 6: Treads in TotaL OeveLapment Costs Per Unit fn California, by Prevailing Wage, 2008 - 2019 60U,040 500,000 r- 4UC )OO O N r •p 3oi},fltli} Gi G. 200,00c) 100-000 132 2QQ8 2OOq 2010 2011 2012 2013 2014 2015 2016 2017 201s 2019 —Prevailim Wage Not PrevaDing Wage Factors that Drive Cost Increase? • Prevailing Wage raises total development costs by approx. $53k/Unit (13% Increase) • Elevator or Parking Structure $35k/Unit (8% increase) • Environmentally Conscious Designs, Sustainability Designs adds about $17k/Unit (4% increase) — Energy Conservation — Water Conservation — Building Materials (e.g., Cork, Timber, Cellulose, Natural Paint and Wood Treatments, as well as recycled rubber, mud, and wood remains) What is our City estimating? • Inland Empire costs about $500k/Unit • Recent Coachella Valley Projects have been $450k-$550k/Unit • 1530 Units = Approx. $765M — 192 Units/Year = Approx. $95.6M/Year May 16, 2023 135 Welcome t4 the City of La Quinta's Affordabire Housing Resource Page i}p {M;f of La Champ„ F NTm to of hwdatxw Inu¢ng nrgng Irrrn muill famlly apsrtrrom tR slnale -f."je homesR'k Arlou5 inaildsleciei n bLALI wAap *nI oG hcu*)y ii gulibbd ly the gm4, abpalm�. and polloin a the iiming Eimnmlt In the Crty'a G—al Plan in meA itc hming need¢ of existlnp and iutsae rcydents In all arcas ad the city. CRA on a subject below +or more tlMorrne RW - r Y - I. T AF1FURGABLE+IOUNNG rN INMAELIMI75. HOPUSiNGIRERIWICES LU 4 RMArGULUMM A#JNdLL IEPORFS HOL]YONG GAMY GDALL 136 no ems`' .�.� ..art-•�_ �law �W, CALIFORNIA r-