1991/06/11 Community Development Agency Minutes COt+tUNITY DEVELOPMENT AGENCY
OF
THE CITY OF ROHNERT PARK MINUTES
Thesday, June 11, 1991
The Members of the Community Development Agency of the
City of Rohnert Park rret this date during the City Council
meeting at approximately 7:15 p.m. in the City Offices,
6750 Commerce Boulevard, Rohnert Park, with Chairman Eck
presiding.
CALL TO ORDER Chairman Eck called the meeting of the Community
Development Agency of the City of Rohnert Park to order at
approximately 7:15 p.m.
ROLL CALL PRESENT: (5) Agency Members Hollingsworth, Hopkins,
Reilly, Spiro, and Chairman Eck
ABSENT: (0) None
Staff present for all or part of the meeting: Executive
Director/City Manager Netter, City Attorney Flitner,
Assistant to the City Manager Leivo, City Engineer Brust
and Finance Director Harrow.
Approval of Minutes Upon motion by Agency Member Spiro, seconded by Agency
Memmber Hollingsworth, and unanimously approved, the
minutes of May 14 & 28, 1991 were approved as submitted.
Approval of Bills Upon notion by Agency Imber Hollingswortn, seconded by
Agency Member Spiro, and unanimously approved, the bills
presented per attached list in the amount of $24,780.40
were approved.
Acknowledging Exec. The Executive Director/Secretary's report on the posting
Dir./Secr. Report of the agenda was acknowledged.
.hscheduled Public Chairman Eck stated that in compliance with State Law (The
Appearances Brown Act), anyone in the audience who wished to wake a
comment may do so at this time. No one responded.
Housing
sal Executive Director Netter referenced copies provided to
Agency Members of staff report with attachments regarding
Burbank Housing proposal for an affordable housing project
at 781 East Cotati Avenue which was brought to Agency
Vhmbers attention at the previous meeting_ . He shared
details regarding this item as outlined in tonight's City
Council meeting mend relating to appraisal of said
property and the Article 34 issue. Mr. Netter said a
representative of Burbank Housing was available at
tonight's meeting to respond to further questions.
City Attorney Flitner explained his findings regarding the
Article 34 issue which says that low rent housing projects
shall not be developed without approval of voters. His
review with Burbank Housing's legal counsel , Attorney Clay
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(:OMMJNI TT D EVELOPNENT AGENCY OF THE CITY OF ROHNERT PARK MENUTES
(2) June 11, 1991
responded to questions addressed by legislators who have
drafted some guidelines that seem to say an affordable
housing project can be developed as long as the low rent
provisions are not mandated by a public agency and as long
as the percentage of the project does not exceed 40% It
is understood that this entire project may Pe built far
low incomes which gets away from the constitutional
provisions, however, if relying on legislative courts, if
this public agency does not require this project to be
exclusively for low rent housing, then it can qualify for
participation. Mr. Flitner said that this project does
qualify though it is not clear regarding constitutional
decisions versus legislative court decisions, but thought
it would pass the constitutional restrictions.
Discussion followed.
Arnold Sternberg, Director of Burbank Housing, responded
to Agency questions regarding justification of the
referenced property purchase price. He explained the
other various funding resources as well as the advantages
of tax credits involved with this particular proposal . In
response to further Agency inquiry, Mt. Sternberg outlined
the rental rates and qualifying incomes of the proposed
project as outlined on page 3 of letter dated May 24, 1991
from Burbank Housing (copy attached to original set of
these minutes) giving the range of $388 tc 5576 per month,
dependingq on the percentage of area median income, for a
four bedroom unit averaging approximately 900 sq. ft.
Mt. Sternberg said the law requires the affordable rents
remain for a minimum of forty years and that the shorter
ten to twenty year periods for such affordable housing
projects are no longer happening. The general feeling of
the Agency was that the price paid for the land was too
high, but because the rents were projected to be
affordable that it was a trade off which may justify the
purchase price.
Further discussion followed.
A motion was made by Agency Member Hopkins, seconded by
Agency Member Reilly, and unanimously approved, to
authorize approval of the loan application to Burbank
Housing in the amount of 5390,000 as CDA's portion of
participation of this affordable housing project with the
stipulation that accountability be provided to the Agency
throughout the progress of the project, as well as
commitments to keep the rents low as projected in the
information provided.
Resolution No.
91-09 A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE
CITY OF ROHNERT PARK APPROVING AN AGREEMENT WITH THE CITY
OF ROHNERT PARK TO PROVIDE MATCHING FUNDS FOR THE
CALIFORNIA HOUSING REHABILITATION PROGRAM FOR OWNER-
OCCUPIED HOUSING PROGRAM IN THE CITY OF ROHNERT PARK
Executive Director Netter explained the resolution.
'^CORRECTION from
8/13/91 Agency Meetinq: Upon motion by Agency Member Hollingsworth seconded by
Motion by Agency Agency Member Hollingsworth, and unanimously approved,
Member Hopkins reading of Resolution No. 91-09 was waived and said
resolution was adopted.
COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES
(3) June 11, 1991
Resolution No.
91-10 A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE
CITY OF ROHNERT PARK APPROVING AMENDMENT NUMBER FOUR TO
THE AGREEMENT TO PROVIDE CERTAIN ADMINISTRATIVE SERVICES
FOR THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF
POHNERT PARK FOR A HOUSING REHABILITATION PROGRAM
Executive Director Netter explained the resolution.
Upon motion oy Agency Member Hopkins, seconded by Agency
Member Hollingsworth, and unanimously approved, reading of
Resolution No. 91-10 was waived and said resolution
was adopted.
Resolution No.
91-11 A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE
CITY OF ROHNERT PARK AUTHORIZING AND APPROVING AGREEMENT
WITH CODDING BANK FOR FINANCIAL SERVICES FOR
REHABILITATION PROGRAM
Executive Director Netter publically disclosed that he and
his wife own 1 ,000 shares of Coddina Bank which computes
to $10,000 ownership. He indicated that staff has
contacted several banks and institutions in the area which
include Bank of America and Exchange Bank for the
necessary loan servicing of the Rehab program. Codling
Bank was the only local institution willing to provide
those services. The contract is exactly the same as the
one negotiated with C D Financial (previous loan servicing
company) . He said with such a minority interest in said
bank that he did not feel there was a conflict of interest
and said he had also consulted with City Attorney Flitner.
City Attorney Flitner confiln3 that there was not a
conflict with such a minor interest in the bank and
read from the section of the code referencing Conflict
of Interests.
Mr. Netter then explained the resolution for the proposed
contract with Coddinq Bank. He indicated that the fee
schedules are also the same as with C D Financial at
1/2 of 1% of each loan amount graduated down as the loan
value increases.
Upon motion by Agency Member Hopkins, seconded by Agency
Member Spiro, and unanimously approved, reading of
Resolution No. 91-11 was waived and said resolution
was adopted.
checltled Public Chairman Eck asked if anyone in the audience wished to
••-- . ces make an appearance at this time. No one responded.
.]fit There being no further business, Chairman Eck adjourned
the meeting at approximately 8:00 p.m.
40 A Ai
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Chairman