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1991/09/10 Community Development Agency Minutes CMJNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES September 10, 1991 The Members of the Comrrunity Development Agency of the City of Rohnert Park met this date immediately after the City Council meeting at approximately 9:00 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 9:00 p.m. Roll Call Present: (4) Agency Members Hollingsworth, Hopkins, Reilly, and Chairman Eck Absent: (1) Agency Member Spiro Staff present for all or part of the meeting: Executive Director/City Manager Netter, City Attorney Flitner, Assistant to the City Manager Leivo and City Engineer Brust. Approval of Minutes Upon notion by Agency Member Hollingsworth, seconded by Agency Member Hopkins, and unanimously approved, the minutes of August 27, 1991 were approved as submitted. Approval of Bills Upon motion by Agency Member Hollingsworth, seconded by Agency Member Hopkins, and unanimously approved, the bills presented per attached list in the amount of $674,383.51 were approved. Acknowledging The Executive Director/Secretary's report on the posting Exe.Dir./Sec.Report of the agenda was acknowledged. Unscheduled Public Chairman Eck stated that in compliance with State Law, Appearances (The Brown Act) , anyone in the audience who wished to make a comment may do so at this time. No one responded. I .w and Moderate Executive Director Netter said copies were provided to cone Housing Agency Members of staff memo dated August 23 , 1991 d Commitments regarding Low and Moderate Income Housing Fund Commitments and shared contents therein (copy attached to original set of these minutes) . Mr. Netter responded to Agency question that these funds are for remodeling purposes and not for purchasing homes. Assistant to the City Mhnager Leivo responded to Chairman Eck's inquiry regarding the possibility of rebuilding broken/cracked driveways in older sections of Rohnert Park originally built without wire, that it would be necessary to design a separate new program for this type of repair or reconstruction in order CCONMJNITY DEVELOPMENTAGENCY/CITY OF ROHNERT PARK NQNUTES (2) Sept. 10, 1991 to utilize rehabilitation programs. City Manager Netter confirmed a program could be set up for this type of project using the rehabilitation program funding and a survey could be done in the referenced area to determine possible interest in such a program. Burbank Affordable Executive Director Netter said copies were provided to Housing Project on Agency of the following items regarding the Burbank Housing Affordable Housing project on East Cotati Avenue: 1) letter dated September 4, 1991 from City of Cotati expressing concern regarding impacts ; 2 ) Planning Commission Notice of Public Hearing at 7 : 30 . p.m. on September 12, 1991 to consider the application of Burbank Housing to approve a Negative Declaration for the 50 unit apartment rental complex; and 3) a notice from anonymous citizens objecting to the Burbank Housing Project. Discussion followed during which Executive Director Netter responded to Agency inquiry that the only thing that can be challenged on this project is the Environmental Review. City Attorney Flitner confirmed that the length of tirre to challenge the EIR is thirty days from the date of filing. Assistant to the City Manager Leivo said all the funding and grant applications have been submitted and approved as of decision last week. Unscheduled Public Chairman Eck asked if anyone in the audience wished to Appearances make an appearance at this time. No one responded. Adjournment There being no further business, Chairman Eck adjourned the meeting at approximately 9:13 p.m. c—_127 De S et Chairman — -- . 4.;to ea. C,unciiman ( , --. ) • 0 v___—_______�ffC r to. ._ 3 �1 - c VINTER-OFFICE MEMO - TO: Mike -Harrow FROM: Carl Eric Leivo , Assistant to the City Manager RE: Low and Moderate Income DATE: Aug. 23 , 1991 Housing Fund Commitments The Community Development Agency has made the following commitments tor use of Low and Moderate Income Housing Fund moneys: Owner Occupied Housing Rehabilitation Program Program Administration Contract with Sonoma County Community Development Commission First Year ( through Sep. 30 , 1989 ) $ 45 ,000 Second Year ( through Sep. 30 , 1990 ) 47 ,700 Third Year ( through Sep. 30 , 1991 ) 50 ,863 Fourth Year ( through Sep. 30, 1992 ) 59,200 Subtotal $202 ,736 Credit ( CHRP-O maximum admin. grant ) - 50 ,000 Total $152 ,736 Housing Rehabilitation Fund Authorizations Sep. , 1988 $ 250,000 Sep. , 1989 815 ,000 Sep. , 1990 450 ,000 Total $1 ,515 ,000 (Note : Agency committed $250 ,000 to CHRP-O Program) Housing Rehabilitation Application Approvals and Loans Authorized as of July 1 , 1991 Total Applications Received (63 ) Applications Approved ( 45 ) $1 , 139 ,513 Loans Approved ( 33 ) 748 , 215 Construction Contracts Awarded ( 33 ) 716 , 167 Funds Transferred 574,802 Other Low and Moderate Income Housing Fund Obligations Innovative Housing ( Shared Living Home ) , 6/26/91 $ 24,000 Independent Living (Home for Developmentally Disabled Adults ) , Summer, 1991 16 ,400 Burbank Housing Rental Project , Summer, 1991 390 ,000 Northbay Ecumenical Housing (Affordable Ownership Housing Program) , Fall , 1991 250 ,000 Sonoma County Community Development Com. (Homeless Assistance) , 1/22/91 8,000 Total $688,400 Total Low and Moderate Income Housing Fund Obligations S2 ,356,136 CITY OF ROHNERT PARK en 9 2£SoL. Na ?/- 13 COMMUNITY DEVELOPMENT AGENCY AGENDA ITEM TRANSMITTAL REPORT Department: Executive Director's Office City Clerk Use Only Meeting Date Held Until Submitted By: Carl Eric Leiuol',� I �/?�/�[ ',�{, /_/_ Assistant to the Itan Number 1 IbEin Number Executive Direc ' Agenda Title: Independent Liuing Skills/ Date of Action: / / Aaron House Project Deadline Date for Council Actions / / Requested Council Action: Motion to approve Resolution No. 91 - _ authorized the Executive Director to execute a loan agreement with Independent Lining Skills, 1 Inc./Aaron House, Inc. Summary: On April 10, 1990, the Agency authorized the Executive Director to execute a loan agreement with Sonoma County Independent Lining Skills, Inc./Aaron House (ILS) in the amount of $16,450 to assist in providing housing for developmentally disabled adults. The purpose was to pay the interest on a interim financing loan from the State. ILS used the proceeds of the State loan to purchase a home at 735 Bonnie Ave. The home has been rented in the interim. ILS applied to the Department of Housing and Urban Development (HUD) for long term financing. After much delay, HUD has decided to approve funding for the project. HUD has reuiewed the Agency's agreement with ILS, requested changes, and has approved the final form of the agreement. The Agency's agreement has not be executed and no funds have been spent. HUD informed Independent Living Skills last week that it must close by Oct. 1 . Given the delay by HUD, the interest due on the State loan will total $23,058.69 on Sep. 24 and will increase $45.02 per day thereafter. ILS asked the State to forgive all or part of the interest due but the State declined. Independent Living Skills raised $5,500 in charitable contributions but has spent $35,700 for the project. Given this cash drain and State budget cuts that affected ILS adversely, ILS cannot pay the difference in the interest due. ILS has appealed for help from the Agency. If the Agency does not approve assistance, Independent Lining Skills will attend a State meeting on Thursday and ask a second time that the difference in interest be forgiven. If this fails, the HUD subsidy would be lost. The subsidy is essential for project feasibility. ILS will either sell the property and pay off the State loan or the State will take title to the property. Agency staff recommends approval of a short term, unsecured loan to ILS in an amount not to exceed $7,000 (approximately the difference in interest due on October 1 ) . During the six month term of the loan, ILS will seek assistance from a third party and repay the City. This approach will help preserve the federal funds and help ILS meet the housing needs of a special population. CITY MANAGER'S RECOMMENDATION: ( )Consent Item ( ) Regular Item ( ) Approval ( )Public Hearing Required ( ) Not Recommended ( ) Submitted with Comment ( ) Policy Determination by Council ( ) City Comments: :ity Manager's Signature: Date: _=========(City Clerk Use only)====___========-- .@_____ :ouncil Action ( If Other than Requested) Vote' RESOLUTION NO. 91- A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK AUTHORIZING A LOAN TO THE SONOMA COUNTY INDEPENDENT LIVING SKILLS, INC. FROM THE LOW TO MODERATE INCOME HOUSING FUND TO ASSIST IN PROVIDING HOUSING FOR VERY LOW INCOME DEVELOPMENTALLY DISABLED ADULTS. WHEREAS, the Sonoma County Independent Living Skills, Inc. is a non-profit corporation seeking to develop a group home for six very low income developmentally disabled adults; and WHEREAS, on April 10, 1991, the Agency approved Resolution No. 90-04 which authorized the Executive Director to execute a loan agreement with Sonoma County Independent Living Skills, Inc. in the amount of approximately $16,450; and WHEREAS, the proceeds of the Agency loan were to be used for the payment of interest on interim financing provided by the State of California; and WHEREAS, due to delays beyond the control of Independent Living Skills, Inc. , the interest on the interim financing provided by the State will total approximately $23 ,450 on October 1, 1991 and Independent Living Skills, Inc./Aaron House, Inc. has requested that the Agency provide funds to pay the additional interest costs . NOW THEREFORE, BE IT HEREBY RESOLVED by the Agency members of the Community Development Agency of the City of Rohnert Park that the Executive Director is hereby authorized to execute a six ( 6 ) month unsecured loan agreement with Sonoma County Independent Living Skills, Inc. or Aaron House, Inc. in the amount of approximately $7,000, with all the necessary terms and conditions, to be funded from the low to moderate income housing fund of the Community Development Agency of the City of Rohnert Park. DULY AND REGULARLY ADOPTED by the Agency members of the Community Development Agency of the City of Rohnert Park this day of , 1991 . ATTEST: COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK ►eputy City Clerk Chairman HOLLINGSWORTH HOPKINS REILLY SPIRO ECK AYES: NOES: ABSENT ABSTAIN