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HomeMy WebLinkAboutMinutes - City Council - 2009-03-16 - Special Meeting 45 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California March 16,20095:15 p.m. The meeting was called to order by Mayor Bosetti with the following Council Members present: Dickerson, Jones, McArthur, and Stegall. I Also present were City Manager Starman, Assistant City Manager Tippin, City Attorney Duvernay, City Clerk Strohmayer, and Assistant City Clerk Mize. At the hour of 5 :23 p.m., Mayor Bosetti convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency AFFORDABLE HOUSING PROGRAM - Historical accomplishments and future priorities, goals, and objectives [L-OI 0-005/G-I 00-030/G-I 00-075/R-030-1 00] Assistant City Manager Tippin provided an overview of the Report to City Council and Redding Redevelopment Agency (Report) dated March 9, 2009, incorporated herein by reference, outlining both the City's and Agency's affordable housing programs' historical accomplishments and future priorities, goals, and objectives. Senior Redevelopment Project Coordinator Haddox reviewed the affordable housing accomplishments made during the past five years and discussed current issues which should be considered when prioritizing activities and programs over the next several years. She noted that, with the exception ofthe administration of the Section 8 Rent Subsidy Program, local affordable housing resources have been primarily utilized to support the City's and the Agency's goal of target neighborhood revitalization. Highlights of affordable housing activities for fiscal years ending 2004 through 2008 included: I New Construction Activities - The City and the Agency provided $10,309,272 in assistance resulting in 179 affordable housing units, or an average cost of$57 ,954 per unit. In addition, there is currently under contract an additional $5,266,373 for the development of 65 units, with an average per unit cost of $81 ,021. Rehabilitation Activities - Through the various rehabilitation programs, such as Emergency Repair, Senior Minor Repair, Homeowner Rehabilitation, Rental Rehabilitation, Paint Voucher, and Lead-Based ~aint, $5,791,891 was provided to assist with varying degrees of rehabilitation for 1,033 units. Downpayment Assistance - 58 first-time home buyers were provided $2,859,484 to assist with the acquisition of their first homes. I Ms. Haddox stated that while housing activities, taken as a whole, have supported the broad goals and objectives contained within the City's adopted Housing Element, its Consolidated Plan, the Agency's various Implementation Plans, and specific neighborhood revitalization plans, a periodic reassessment of established priorities, goals, and objectives is not only helpful to maximize achievement, it is vitally important during uncommon times. Accordingly, City and Agency staff conducted a meeting in January with local housing service providers to review the progress made over the past five years relative to the goals and objectives stated withing the City's Housing Element Action Plan, as well as to request input as to what community issues continue to be unmet and to identify ways to address those needs. In addition, attendees of a publicized open house in February were also surveyed as to their opinions in the aforementioned areas. As a result, the following were identified as the most pressing housing issues: (1) homelessness; (2) provision of additional affordable rental units; and (3) home foreclosures. Ms. Haddox pointed out that while it is not necessary to have a neighborhood plan in place to move forward with affordable housing activities in an area, a plan assists by providing more in-depth analysis regarding other deficiencies that can often be addressed simultaneously with development activities. Additionally, there is a significant level of public participation during the plan development process. Subsequent projects dually meet both neighborhood and community-wide objectives. She pointed out that staff is supportive 3/16/2009 46 of continuing to prioritize activities within identified target neighborhoods with the understanding that due to funding constraints, as additional neighborhoods and areas are added, the existing target areas will be determined at some point to be a lower priority for funding. She stated that, to date, the existing revitalization plans have been an excellent road map to guide the public investment efforts. While all goals and objectives have not been met, she stated that significant positive change has occurred in all areas. Ms. Haddox opined that current program efforts and accomplishments have been significant and current priorities will continue to service the community well into the future. However, today's economic conditions open up new opportunities and challenges that warrant adjustment by giving priority to the following areas: (1) creating affordable housing through the acquisition and rehabilitation of existing units; (2) assisting families and households become homeowners of affordable units, especially by returning bank -owned properties into the normal housing market; and (3) providing transitional housing with supportive services for the homeless population. I It was recommended that the City Council and the Board reconfirm the existing goals and objectives stated in the City's adopted Housing Element, its Consolidated Plan, the Agency's Implementation Plans for the various redevelopment projects, and specific neighborhood revitalization plans, and designate the following priorities for funding over the next two-year period: (1) creating all types of affordable housing through the acquisition and rehabilitation of existing units where it can be shown to be more cost effective than new construction; (2) assisting families and households to become homeowners of affordable units, especially activities that return bank-owned properties into the normal housing market; and (3) providing transitional housing with supportive services for homeless populations, whether through new construction or the acquisition and rehabilitation of existing units. MOTION: Made by Agency Member Dickerson, seconded by Agency Member McArthur, to reconfirm the existing goals and objectives stated in the City's adopted Housing Element, its Consolidated Plan, the Agency's Implementation Plans for the various redevelopment projects, and specific neighborhood revitalization plans, and designate the following priorities for funding over the next two-year period: 1) creating all types of affordable housing through the acquisition and rehabilitation of existing units where it can be shown to be more cost effective than new construction; 2) assisting families and households to become homeowners of affordable units, especially activities that return bank-owned properties into the normal housing market; and 3) providing transitional housing with supportive services for homeless populations, whether through new construction or the acquisition and rehabilitation of existing units. Voting was as follows: Ayes: Agency Members - Bosetti, Dickerson, McArthur, Stegall, and Jones Noes: Agency Members - None Abstain: Agency Members - None Absent: Agency Members - None I MOTION: Made by Council Member Jones, seconded by Council Member Dickerson, to reconfirm the existing goals and objectives stated in the City's adopted Housing Element, its Consolidated Plan, the Agency's Implementation Plans for the various redevelopment projects, and specific neighborhood revitalization plans, and designate the following priorities for funding over the next two-year period: 1) creating all types of affordable housing through the acquisition and rehabilitation of existing units where it can be shown to be more cost effective than new construction; 2) assisting families and households to become homeowners of affordable units, especially activities that return bank-owned properties into the normal housing market; and 3) providing transitional housing with supportive services for homeless populations, whether through new construction or the acquisition and rehabilitation of existing units. The Vote: Ayes: Council Members - Dickerson, Jones, McArthur, Stegall, and Bosetti Noes: Council Members - None Abstain: Council Members - None Absent: Council Members - None I PROPOSED MODIFICATIONS TO VARIOUS AFFORDABLE HOUSING PROGRAMS AND POLICIES [L-O 1 0-005/G-l 00-07 5-200/G-l 00-080-17 5/G-l 00-080-1 00/R-030-1 00-040] Senior Redevelopment Project Coordinator Haddox provided an overview of the Report to City Council and Redevelopment Agency dated March 6, 2009, incorporated herein by 3/16/2009 47 I reference. She explained all policies and procedures governing the administration of the various City and Agency housing programs are reviewed and approved by the City Council and/or the Agency's Board of Directors (Board) prior to initial implementation and periodically, as modifications are made. She related that policy documents have been adopted separately for Agency-funded and City-funded activities in the past, with little variation except for the funding sources. She indicated that staff was currently working on consolidating all existing program policy documents, which will be brought back to the City Council and the Board for final review later this year. During this process, however, a number of policy modifications have been identified that will allow the various activities to be more effective and efficient in furthering affordable housing. goals and objectives. Accordingly, she presented the following modifications to existing housing program policies for the City Council's and the Board's conceptual approval: ~ .Establish a uniform funding approval process to be included in the proposed consolidated housing policy document that would be applicable to all activities; ~ Eliminate automatic eligibility for fully deferred loans for seniors and disabled households under the existing Housing Rehabilitation Loan Policy; and ~ Increase standard loan amounts for the Emergency Repair Program to $5,000, and up to $7,500 with the concurrence of the Assistant City Manager. She related that staff has identified specific modifications to the Downpayment Assistance Program (DAP) and the Senior Repair Program (SRP) which would be beneficial to implement prior to the completion of the larger policy consolidation process. Additionally, a new program, the Homebuyer Incentive Program (HIP), has been developed to further encourage acquisition of bank-owned properties by homebuyers utilizing DAP assistance. She highlighted the following modifications to existing programs, as well as the new HIP: ~ DAP: . Change the name ofDAP to Homebuyer Program; . Adopt an acquisition/rehabilitation component to purchase and rehabilitate homes that are substandard and at least 15 years of age; I . Decrease amount of loan for median-income households from $45,000 to $25,000; . Decrease amount ofloan for moderate-income households from $30,000 to $10,000; . Expand availability ofthe Lease-Option and New Futures Programs to a city- wide basis; . Expand and more clearly define policy relative to asset determination and retention; . Raise threshold housing expense ratio from 31 % to 32% and cap the Housing Loan Committee's ability to approve higher ratios at 34%; and . Eliminate requirement for filing of a Request for Notice of Delinquency. ~ HIP: . Provides $2,500 credit voucher to homebuyers utilizing City and Agency downpayment assistance to purchase bank-owned properties. Credit to be used for certain home improvement costs related to the structure. . Homebuyer required to submit documentation of costs of improvements completed within 90 days following close of escrow for reimbursement. ~ SRP: . Increase minimum eligible age from 60 to 62; . Increase maximum amount of annual assistance from $300 to $500 per I eligible applicant; and . Set maximum lifetime cap for use of program assistance at $1,500 per applicant. It was the recommendation of staff that the City Council and .the Board take the following actions: (1) conceptually approve the proposed modifications to the various program policies; (2) approve the new Homebuyer Program Policy; and (3) approve the new HIP. It was further recommended that the City Council approve the proposed modifications to the SRP. In response to Chair/Council Member Jones, Ms. Haddox explained that the City Council's and Board's conceptual approval to include the establishment of a uniform funding approval process into the proposed consolidated housing policy document would allow funding requests to be considered as follows: (1) Less than $200,000 - City's Housing Loan 3/16/2009 48 Committee; (2) Between $200,000 and $300,000 - Assistant City Manager; and (3) Over $300,000 - City Councilor Board, depending on the funding source. She noted that currently all new constructions projects are brought to the City Councilor the Board for approval regardless ofthe dollar amount. Rehabilitation and Downpayment Assistance Program loan requests are currently deferred to the City's Housing Loan Committee for consideration. In response to Council/Agency Member McArthur, Ms. Haddox stated that the Notice of Default has been found to be more useful than the Notice of Delinquency, which has become a staff intensive process. These loans are often sold on the open market and the $40 fee collected through escrow becomes problematic, as it is often returned or the check becomes stale dated because the lender is unsure as to how to process it. In response to Council/Agency Member Dickerson, Ms. Haddox explained that both the New Futures and Lease-Option Programs are currently only offered in the target neighborhoods. She believed that the programs may have more validity in the affordable housing market on a city-wide basis. I Council/Agency Members McArthur and Jones opined that the priority list was commendable and the projects completed to date were impressive. MOTION: Made by Agency Member Stegall, seconded by Agency Member McArthur, to (1) conceptually approve the inclusion of a uniform funding approval process in the proposed consolidated housing policy document that would be applicable to all activities, eliminate automatic eligibility for fully deferred loans for seniors and disabled households under the existing Housing Rehabilitation Loan Policy, and increase the standard loans amounts for the ERP to $5,000 and $7,500 with concurrence from the Assistant City Manager; (2) approve the Homebuyer Program Policy as presented; and (3) approve the new Homebuyer Incentive Program as presented. The Vote: Unanimous Ayes MOTION: Made by Council Member Jones, seconded by Council Member Stegall, to (1) conceptually approve the inclusipn of a uniform funding approval process in the proposed consolidated housing policy document that would be applicable to all activities, eliminate automatic eligibility for fully deferred loans for seniors and disabled households under the existing Housing Rehabilitation Loan Policy, and increase the standard loans amounts for the Emergency Repair Program (ERP) to $5,000 and $7,500 with concurrence from the Assistant City Manager; (2) approve the Homebuyer Program Policy as presented; and (3) approve the new Homebuyer Incentive Program as presented; and (4) approve modification of Minor Home Repair Program for Seniors to increase minimum eligible age to 62, increase maximum amount of annual assistance to $500 per eli~ible applicant, and set applicant's maximum lifetime cap at $1,500. The Vote: Unanimous Ayes I ADJOURNMENT There being no further business, at the hour of 6:29 p.m., Mayor Bosetti declared the meeting adjourned. APPROVED ~~ Mayor I ATTEST: ~~ City Clerk "2 3/16/2009