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.
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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.
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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
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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: