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HomeMy WebLinkAboutMinutes - City Council - 1974-12-09mr:3 City Council, Special Meeting 16lice Dept. & Council Chambers Bldg. Redding, California December 9, 1974 7:30 P.M. The meeting was called to order at 7:30 P. M. by Mayor Denny with the following Councilmen present: Anderson, Demsher, Fulton, Pugh, and Denny. Absent: Ndnle Also present were City Manager Brickwood, City Attorney Murphy, Public Works Director A.rness, Director of Planning and Community Development Harris,) Associate Planner Perry, and City Clerk Brayton. PUBLIC HEARING - 're Community Development Plan and Housing IAssistance Plan The hour of 7:30 'P.M. having arrived, Mayor Denny opened the Public Hearing for consideration of the Community Develop- ment Plan and the Housing A.ssistance Plan. i The following documents are on file in the office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Affidavit of Mailing - Notice of Public Hearing The City Clerk advised Council that no written protests had been received. Ben Harris, Director of Planning and Community Development, reviewed his recommendation to Council pertaining to the Community Development Plan and Housing Assistance Plan, as contained in his memorandum to Council dated December 9, 1974, which memorandum is made a part of these minutes by reference. The following documents were submitted to Council with the memorandum: l Community Pevelopment Plan (Preliminary) Community Development Priorities Priority Determination Community Development Program (3 year) Housing A.ssistance Plan (Preliminary) Title I and Title II Site Selection Guidelines Assisted Housing Map (location of existing and proposed assisted housing) Map Showing Race Distribution (Source: 1970 Census) It is recommended that Council approve, by minute order, the Community DeIelopment Plan, the Community Development j Program, and the Housing A.ssistance Plan, and that the City Manager, as chief executive officer of the City, be authorized to execute any and all certifications required by the Housing and Community; Development Act of 1974 or any HUD regulations issued in regard to the implementation of said A.ct. Dick Green, Chairman of the Citizens Advisory Committee, and member of the Community Development Advisory Board, stated that the recommendations on the Community Development Plan 209 which have been presented to Council are the result of an extensive number of meetings, attended not only by members of the Committee but by citizens of the community at large. Mr. Green said he felt that every conceivable community need was discussed at some point, and that the recommenda- tions passed on to Council do represent the feelings of the Committee and the community, and he recommends. approval by Council. With respect to the proposed Housing A.ssistance Plan, it is the consensus of the Committee that the City should do all possible to rehabilitate housing and not stress developing new neighborhoods that would require sewer, water, and other services. It is also recommended that a City Housing Author- ity be established. Herb Miles, Chairman of the Community Development Advisory Board, reported that the Advisory Board participated with the Citizens Advisory Committee in discussions: and deliberations at all of the meetings. Mr. Miles said that members of the Committee and Board were amazed at the number of housing units within the City that need rehabilitating. He stated that he believes the program proposed is representative of the feelings of all members of the Committee, Board, and the public, and' he recom- mends Council approval. Mr. Miles acknowledged that Board and Committee Members were frustrated that regulations re- garding Title II programs were not available, but said that such information will be reviewed when it is available and they will be in a better position to evaluate the program. Mr. Miles also stressed the importance of rehabilitating houses rather than new housing starts . Lyle Stewart, Consultant, stated that regulations are now available for Title II, but later acknowledged that such regulations are only preliminary. Mr. Stewart was complimentary on how well the meetings of the Committee and Board were conducted. Councilman Pugh asked if the City would be locked into the pro- gram if it is approved by Council this evening. Mr. Harris stated that what:is being submitted initially is our first year.program and we will only work on one year'.s program at a time, and we will have the opportunity to amend the program mid -year if we find it necessary. Councilman Demsher asked for some elaboration of the concept of the "Community Service Center." Mr. Harris reported that the Community Service Center was pro- posed to the Committee and was quite well received. What this would involve is a single facility in which all of the social service agencies could be located; i.e. , Golden Umbrella:, Teen Center, et al. This is scheduled for the third year. Councilman Demsher commented tha.t::this concept would probably be County -:wide rather than City only, and Mr. -Harris said the City would probably provide the facility but each group would pay their own way financially and that it woul&be an, office -,type facility. At thi-s:point -..in the hearing, Mayor Denny asked for. discussion and comments from interested citizens. 210 Harold Finkleri; member of the Citizens Advisory Committee, reported that he voted in favor of Title I Community Develop- ment Program, but voted against use of Title II programs outlined in the Housing A.ssistance Plan. Mr. Finkler expressed concern about Council approving the Housing A.ssistance Plan, inasmuch as the final regulations covering Title II have not been issued. He is in favor of housing assistance proposed in Title I as he feels the people in the low income brackets would be able to face this as sstance with pride, and also that it would help provide good housing for the elderly. However, it is his belief that assisted housing under Title II may increase taxes for the City of Redding for services other than housing, could result in depressing land values in fine residential neighborhoods, and the City could be faced with continuing programs if the Federal government withdraws . He raised the question of how the title of such property would be vested. Mr. Stewart replied that, with respect vested title, it depends on how the City' wishes to work it out. It can be a direct nego- tiation or contract between the developer and HUD; the Housing Authority and HUD; or Council and the developer (via HUD). If it is a private contract between HUD and the developer, then HUD would guarantee the developer the rents and the developer would own the property. If the Housing Authority wants the con- tract, then the City owns the property. If the developer contracts with the City (via HUD), then the developer would own the home. Mr. Finkler brlought to Council's attention the high rate of fore- closures on HUD financed homes, quoting from the Sacramento Bee and the San Francisco Examiner newspapers. He noted that the houses advertised contained the notation -- ''as is with no warranties', and said that such property is ineligible for HUD insurance. Such houses are a blight on the neighborhood in which they -are located. Mr. Finkler said that much of the data used in preparing the Housing Assistance Plan was based on the 1970 census, which presents a distorted. picture, and he feels that before an intelligent dec•ision can be made, a much more indepth study should bei made. He recommended that Council contact Jim Price of HUD and determine how similar programs are working.out in other areas. He further stated that if Council approves the Housing Assistance Plan it should be subject to the condition that Council is free of obligation if the final regu- lations prove to be something Council cannot live with. Councilman Demsher asked if the Housing Authority could assume the resjponsibility to rehabilitate units if the City were involved in foreclosures. Mr. Stewart said that as he understands the regulations, if the Housing Authority is involved, the units could be rehabili- tated. He added that were were many problems under the old 236 Program; however, the new regulations as drafted vastly improve the situation. He emphasized that the proposed program is not public housing, but rather ''assisted'' housing. Mr. Finkler said his interpretation regarding foreclosure would be that the City's responsibility is only as to what the City wants to do with theproperty -- the City may scuttle or rehabilitate and attempt to refinance, but Mr. Finkler questioned where the funds would come from to rehabilitate. He feels this is the problem in San Francisco and thinks this not only would depress the area but may put a blight on the neighborhood. 1 1 211 Councilman Pugh agreed with Mr. Finklerwith respect,to foreclosure but only if the title is vested with the Housing Authority. With respect to depressing the area,, he also agreed that this is true, but feels that in San Francisco where the City is the owner of the property, they have not. had the tax income, and this is a decision Councilwill have to make; i.e. , whether it wants to go via HUD or private developer.2 Mr. Finkler brought .up the point that welfare recipients will be eligible for this type of housing, and he.,foresees a danger of many foreclosures. Councilman Demsher said -he would agree that we:•should bring- out the.facts, but said he would be interested,in knowing what percentage of assisted -housing is being repossessed vs. the. private: sector. , Mr. Finkler said that the houses listed in the newspapers he referred; to do not begin to cover the number of units involved. He mentioned the high welfare case load in Shasta County. Mayor Denny asked Mr. Harris if Council would be, relinquishing control control if it approved the recommendations as submitted. Mr. Harris• said no, that Council retain the right to amend the program as we, proceed. Councilman Anderson asked Mr. Finkler if it is correct that he objects to Title II but not Title I. Mr. Finkler replied in the affirmative, but he feels that HUD :may not approve Title I unless the City becomes involved in Title II. Councilman Anderson asked-if,his primary objection to Title II was :the strings that are attached to it.-. Mr.. Finkler said. that is correct, and .especially be -cause Council does notknow what the, -regulations are going to;be.. Mr. Stewart noted that in reference to Section 8 housing, it is estimated that there would be only 100,000 new housing units constructedthroughout the country the first year. Section 8 is for new housing under the Act. Rehabilitating under Title II is for structures like the Lorenz Hotel. Mr. Harris said that with respect to Title II, the City: is only developing a plan on how to utilize the program. Weare not proposing to -apply for funds :under Title .II inti this ,time; Mr.. John Cla.yborne, 1761. Aber.nathy,Lane; .expr;essed concern as to where the transients would be housed if hotels were re- habilitated for the elderly. He was also, concerned about the Map showing race distribution until he was ,reassured that the map was not a proposal,but was. base.d,on race dis:tribution.,delineat.ed in the. 1970 census.; He, also spoke. of the need for rehabilitating homes for the elderly and was advised that this was proposed to be accomplished under Title I of.the Housing Assistance Plan. Katherine Brooks inquired about proposals for the Linden Avenue neighborhood and was advised that meetings will be held within the neighborhood so that citiznes in the area can participate in the development of the neighborhood plan and program. It was also explained that right of way acquisition is for Buena Ventura, a street that has been proposed and included in the General Plan. 212 Dick Green, Chairmanof'th'e Citizens Advisory Committee, noted that he neglected to point out that the Housing A:s sist- anc-e Plan includes site selection guidelines which Help to insure`that'a neighborhood'will not be impacted with assisted housing. The Committee also felt thati there should be a mix of age groups - that the elderly should not be isolated. The Reverend Thomas of Second Baptist Church, said that the people in the Linden Avenue neighborhood are chiefly con- cerned about the effect Buena Ventura Avenue will have on the neighborhood. Mr. Harris said that at this time, without definite alignments determined, itis difficult to as-sess the impact on the neighbor- hood; but -he, added- that his office will work to develop the best plan for the neighborhood, as well as the community. It was noted that Buena Ventura will be a major arterial, 'with an esti- mated traffic load of 8,000 to 10,000 cars per day. Reverend Thom a:sdlsotexpressed concern for senior citizens and'those on welfare who will be displa'c'ed. He wa's assured that if the alignment of the street requires the acquisition of property, the law requires 'the owner be relocated and`be`paid a fair andrequitable price for his property. Mr. Stewart offered to go into the Linden Avenue neighborhood and develop a neighborhood plan at no cost to the community nor to the City. He believes the area can be developed into a desirable residential neighborhood. Marge -Lindsay[ 750 Pioneer Court, a member of the Citizens Advisory Comrrnttee and Community Development Advisory Board, noted that there is deep concern about the condition of housing in this community, andthe funds available through the Community Development will held to correct these conditions. She stated that housing is Number 1 on�.the list of priorities, and that re- solving problems in the Linden Avenue neighborhood'wa's the Number 2 priority. MOTION: Made by Councilman Pugh, seconded by Councilman Demsher, that the Public•Hearing be closed: The Vote. Unanimous Aye s MOTION: Madie by Councilman Pugh, seconded by Councilman Demsher adopting and approving the Community:- Development Plan, the Community Development Program, and the Housing Assistance •Plan which is proposed for inclusion with the appli- cation for Community Development Block Grant, with approval f,or ;anyapplication'for Title lI funds deferred' until final regula- tions• -pertaining 'to same have -been made available, and author- izing the City -Manager, ' a's' chief executive officer 'of. the City, to execute said, application for and in behalf of the City and to execute any and all -certifications required by'the: Housing and Community Development A.ct of 1974 or any HUD regulations '.Act, issued in regard -to the implementation of said and 'dir- ecting staff to include in the Community Development Program Budget a 10% contingency. The Vote: Unanimous Ayes 1 L 1 213 RESOLUTION - Authorizing Incurrence of Costs re Application for Funds MOTION: Made by Councilman Anderson, seconded by Councilman Pugh that Resolution No. 74-174 be adopted, a resolution of the City Council of the City of Redding authorizing the incurrence of costs for the planning and preparation of an application for funds for a Community Development Program including a Community Development Plan and a Housing A.ssistance Plan. _ Voting was as follows: Ayes: Councilmen - Anderson, Demsher, Fulton, Pugh, and Denny Noes: Councilmen - None Absent: Councilmen - None Resolution No. 74-174 is on file in the office of the City Clerk. Mayor Denny noted that the program presented here this 'eveni�ng is the result of a series of meetings that took place from November 6 to November 22nd. He commented on the willingness and enthusiasm dis- played by members of the Committee, Board, and citizens at .large in putting together a quality program which will benefit the entire community. He compared this group with.the Forward Redding Committee, formed in 1958. The Forward Redding Committee took several months to formulate recommendations, most of which have been realized 15 years later; whereas the Citizens Advisory Committee and Community Development Advisory Board were charged with proposing recommendations for a program which will be executed in three years, and had only 2-1/2 weeks in' which .to formulate such recommendations. Mayor Denny ex- pressed the appreciation of Council and the community for the diligent work of the Committee, Board, Consultant, and Staff on this project and for a job well done. There being no further business, at the hour of 9:15 P.M., Mayor Denny declared the meeting adjourned. APPROVED: Mayor ATTEST: