1994/12/13 Community Development Agency Minutes COMMUNITY DEVELOPMENT AGENCY
OF
THE CITY OF ROHNERT PARK
MINUTES
December 13, 1994
The Members of the Community Development Agency of the City
of Rohnert park met this date at approximately 8: 35 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
8: 35 p.m.
Roll Call Present: ( 5) Agency Members Flores, Gallagher, Reilly,
Spiro, and Chairman Eck
Absent: ( 0) None
Temporary Youth Committee: Representative Jennifer Mello
Staff present for all or part of the meeting: Executive
Director/City Manager Netter, City Attorney Flitner,
Assistant Executive Director Leivo, Director of Public
Works/City Engineer Brust, and Finance Director/Treasurer
Harrow.
Approval of Upon motion by Agency Member Reilly, seconded by Agency
Minutes Member Spiro, the minutes of December 6, 1994 were
unanimously approved as submitted.
Approval of Bills Upon motion by Agency Member Reilly, seconded by Agency
Member Gallagher, the bills presented per the attached list
in the amount of $79,464. 50 were unanimously approved.
Acknowledging the The Executive Director/Secretary' s report on the posting of
Exec . Dir./Sec. the agenda was acknowledged.
Report
Unscheduled Public Chairman Eck stated that in compliance with State Law (The
Appearances Brown Act) , anyone in the audience who wished to make a
comment may do so at this time.
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Community Development Agency of the December 13 , 1994
City of Rohnert Park
Harold Green, 745 Lincoln Avenue, Rohnert Park, referred to
Measure K that was recently turned down by the Rohnert Park
electorate and opined that every low rent housing project
proposed for construction in Rohnert Park should be
presented to the voters .
Housing Implemen- Executive Director Netter referred to the Community
tation Plan for Redevelopment Law Reform Act of 1993 (AB 1290) and its
AB 1290 requirement that a public hearing must be held prior to the
adoption of a low and moderate income housing plan. He
called the Agency Members ' attention to a draft
change/update which sets out a proposed budget (projects and
expenditures ) for the years 1994-1995, 1995- 1996, 1996-1997 ,
1997-1998, and 1998-1999. He explained that this chart
depicts a five year plan and how the Agency's set-aside
housing funds are proposed to be spent.
Assistant Executive Director Leivo explained how the funds
could be applied towards the mobile home parks purchase
program. He clarified uses of Community Development Agency
funds relative to low-income housing needs. He stated that
Community Development Agency funds can be used to benefit
households with earnings of 80% of the median income or
less .
Discussion followed.
Public Hearing Chairman Eck opened the public hearing on the proposed
Housing Implementation Plan for AB 1290_
John Hudson, 399 Bonnie Avenue, Rohnert Park , read from a
newspaper article and inferred that he thinks that staff's
comments are misrepresenting the law and that practicing the
law should be left to the City Attorney. He stated that
since Measure K was defeated by the electorate in the
November 8, 1994 election, he feels the Agency is out of
line in proposing low-income housing projects , that these
type projects always end up in the "A" and "B" sections of
town, that low-income rental housing causes blight in the
neighborhoods, and that he is opposed to the Plan. He added
that he feels the Agency Members are not conducting business
properly and that they should all resign.
There being no one else desiring to speak , Chairman Eck
closed the public hearing.
Discussion followed.
Agency Member Spiro wanted to clarify the fact that there
are several rental properties near her on Davis Circle and
also in the "G" section neighborhood. She also stated that
the Agency is living up to its obligations .
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Community Development Agency December 13 , 1994
of the City of Rohnert Park
Agency Member Gallagher stated that she is pleased that
Rohnert Park believes in providing homes for single parent
families , and commented that some of the statements made by
John Hudson were blatant lies .
Chairman Eck questioned if the Agency should adopt the Plan
subject to holding The Gardens project for review.
Assistant Executive Director explained that this project is
already proceeding and was begun before Measure K was
defeated in the November election.
Agency Member Reilly commented that the Agency is not
ignoring Article 34 or the defeated Measure K.
Further discussion followed.
Upon motion by Agency Member Spiro, seconded by Agency
Member Reilly, and unanimously approved, the Housing
Implementation Plan for AB 1290 was approved as amended by
the draft 5 year plan .
Component Unit Executive Director Netter informed that Ernest Gini of
Financial State- Macias & Company, the City' s external auditors, would be
ments for Fiscal happy to answer any questions the Agency Members may have
Year Ended relative to the financial statements submitted for the
June 30, 1994 Agency.
Agency Member Flores referred to page 10 of the report
regarding the loan from the City to the Agency and
questioned if this is a liability that accrues interest.
Executive Director Netter explained that interest is paid on
the loan but not on the principal . Finance Director Harrow
explained how the principal would be paid.
Further discussion followed.
Upon motion by Agency Member Flores, seconded by Agency
Member Gallagher, and unanimously approved, the Component
Unit Financial Statements for Fiscal Year Ended June 30,
1994 were formally accepted and approved.
FNMA Change Executive Director Netter stated that this was an
informational item relative to Fannie Mae underwriting
procedures to be implemented January 1 , 1995 that would add
the value of credit to income instead of subracting it from
the principal and interest payments, which would threaten
the viability of Mortgage Credit Certificates (MCC) programs
and suggested that, if the Agency so desires , a letter over
the Mayor's signature be sent to the Federal National
Mortgage Association requesting that this procedure be
eliminated.
Discussion followed.
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Community Development Agency December 13 , 1994
of the City of Rohnert Park
Upon motion by Agency Member Gallagher, seconded by Agency
Member Spiro, and unanimously approved, staff was directed
to prepare a letter for the Mayor ' s signature to the Federal
National Mortgage Association objecting to the new Fannie
Mae underwriting procedures .
Adjournment There being no further business , Chairman Eck adjourned the
meeting at approximately 9: 03 p.m.
ACAA-4..A.:\A—A.104Eki,
Deputy Secretary Chairman
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