Housing Authority

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA Housing Authority Regular Meeting Minutes - Final Monday, September 27, 2021 1:30 PM 1. CALL TO ORDER Chair Test called the meeting to order at 1:31PM. 2. ROLL CALL Present 7 - Chair Diane Test, Vice Chair Jeffrey Owen, Commissioner Stephen Burke, Commissioner Wayne Downey Ph. D, Commissioner Thomas LaPenna, Commissioner Scott McWhorter, and Commissioner Yvonne Rawhouser 3. STATEMENTS OF ABSTENTION NONE 4. STUDY SESSION NONE 5. PUBLIC COMMENTS (ON NON-AGENDA ITEMS) Public Comments: Duane Dewitt made comment about his concerns that the Housing Authority is not making affordable rentals a priority. 6. APPROVAL OF MINUTES Chair Test requested that August 23, 2021, minutes be corrected to reflect the proper offices as voted upon and that a misspelling in the September 13, 2021, minutes be rectified. Approved with modifications. 6.1 August 23, 2021 - Draft Minutes 6.2 September 13, 2021 - Draft Minutes. 7. PROCLAMATIONS/PRESENTATIONS 7.1 PROCLAMATION - PROCLAMATION OF APPRECIATION FOR PHIL OLSEN City of Santa Rosa Regular Meeting Minutes Page 2 of 6 Housing Authority Regular Meeting Minutes - Final September 27, 2021 Chair Test presented the proclamation for Phil Olsen. 8. STAFF BRIEFINGS 8.1 FY 2020/21 QUARTER 4 FINANCIAL REPORT Housing Authority (“Authority”) expenditures and funding sources for Fiscal Year 2020-21 (July 1, 2020 - June 30, 2021). Kate Goldfine, Administrative Services Officer Housing and Community Services, provided information and answered Commissioner questions. Public Comments: NONE 8.2 HOUSING CHOICE VOUCHER PROGRAM WAITING LIST UPDATE This briefing will provide information about the current status of the Housing Choice Voucher Program waiting list. Rebecca Lane, Housing and Community Services Manager, gave a presentation and answered Commissioner questions. Public Comments: NONE 9. CHAIRMAN/ COMMISSIONER REPORTS NONE 10. COMMITTEE REPORTS NONE 11. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS: 11.1 COMMUNICATION - NOTICE OF FUNDING AVAILABILITY (NOFA) POINTS SYSTEM UPDATE - Provided for information. Megan Basinger, Interim Director Housing and Community Services, introduced the item and stated that Nicole Rathbun, Interim Housing and Community Services Manager, would be available for Commissioner questions. City of Santa Rosa Regular Meeting Minutes Page 3 of 6 Housing Authority Regular Meeting Minutes - Final September 27, 2021 Public Comments: NONE 12. CONSENT ITEMS NONE 13. REPORT ITEMS 13.1 REPORT - REQUEST TO HOUSING AUTHORITY FOR RECOMMENDATION TO CITY COUNCIL THAT CITY OWNED PROPERTY LOCATED AT 625 AND 637 3RD STREET APN 009-013-011 & -012, 700 5TH STREET APN 009-012-025 AND 500 5TH STREET APN 010-053-028 BE DECLARED SURPLUS AS REQUIRED BY THE STATE SURPLUS LANDS ACT, AND A NOTICE OF AVAILABILITY TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY SERVICES FOR AVAILABILITY FOR AFFORDABLE HOUSING BE SUBMITTED BACKGROUND: The City is actively initiating new development in Downtown Santa Rosa to further the City’s housing, planning and economic development objectives while also ensuring continued availability of public parking to the serve the public’s needs. To assist in new development of consolidated mixed use projects that include affordable housing, City owned parcels are being evaluated, recommended for surplus status when appropriate, and made available to housing sponsors for affordable housing through a notice of availability to the State Department of Housing and Community Services (HCD), as required by Government Code Section 54222 and the State’s Surplus Lands Act. Three (3) City owned parcels are being evaluated for potential surplusage for just such affordable housing and/or mixed-use projects with replacement of public parking. Those sites are: 1) 625 and 637 3rd Street (Parking Garage 5); 2) 700 5th Street (Parking Lot 10); and 3) 500 5th Street (Parking Lot 11). City Council Policy 000-10 for sale or long-term lease of surplus land requires that City owned land capable of independent development, be referred to the Housing Authority pursuant to Government Code 54222. The Parcels will also be referred to the Planning Commission for a similar recommended action. City of Santa Rosa Regular Meeting Minutes Page 4 of 6 Housing Authority Regular Meeting Minutes - Final September 27, 2021 RECOMMENDATION: It is recommended by Real Estate Services, the Transportation & Public Works, and Planning & Economic Development Departments that the Housing Authority, by resolution, recommend to the City Council that the property located at 625 and 637 3rd Street (Parking Garage 5), 700 5th Street (Parking Lot 10), and 500 5th Street (Parking Lot 11) be declared as surplus as required by the State Surplus Lands Act, and a notice of availability for affordable housing on public land be submitted to the State Department of Housing and Community Services. Jill Scott, Real Property Manager Transportation and Public Works, gave a presentation and answered Commissioner questions. Public Comment: Natalie Cilurzo, Owner of Russian River Brewing Company, commented on her concerns regarding losing the parking lot behind their business and the need for this to be rectified. Bill Hillendahl, representing the owners of three businesses abutting Lot 10, recommended that the motion be removed from consideration. A motion was made by Commissioner Burke, seconded by Commissioner LaPenna,to waive reading of the text and adopt: RESOLUTION ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA RECOMMENDING THAT THE CITY COUNCIL DECLARE THE PROPERTY LOCATED AT 625 AND 637 3RD STREET (PARKING GARAGE 5), 700 5TH STREET (PARKING LOT 10), AND 500 5TH STREET (PARKING LOT 11) AS SURPLUS AS REQUIRED BY THE SURPLUS LANDS ACT, AND A NOTICE OF AVAILABILITY TO THE STATE DEPARTMENT OF HOUSING AND COMMUNITY SERVICES FOR AVAILABILITY FOR AFFORDABLE HOUSING BE SUBMITTED. The motion failed by the following vote: Yes: 1 - Commissioner Burke No: 6 - Chair Test, Vice Chair Owen, Commissioner Downey Ph. D, Commissioner LaPenna, Commissioner McWhorter and Commissioner Rawhouser City of Santa Rosa Regular Meeting Minutes Page 5 of 6 Housing Authority Regular Meeting Minutes - Final September 27, 2021 13.2 REPORT - REQUEST FOR EXTENSION OF HOUSING AUTHORITY LOAN AND REGULATORY AGREEMENT TERMS NORTHPOINT APARTMENTS PHASES I AND II, 2121 STONY POINT ROAD, AND SUBORDINATION OF THE HOUSING AUTHORITY’S LOANS TO REFINANCED SENIOR MORTGAGES. BACKGROUND: Bridge Housing submitted a loan modification application to support its refinancing efforts for Northpoint Apartments Phases I and II, including a request for loan and regulatory period extensions, as well as subordination of the Authority loans to the refinanced senior mortgages. The project consists of Phase I, a 70-unit multifamily rental development of which 69 are affordable to very low-, and low-income households. The Phase I loan due date is August 2029 and the thirty-year term of the Regulatory Agreement ends in October 2029. Phase II, a 40-unit multifamily rental development all of which affordable to very low-, and low-income households has loan due dates of September 2029 and December 2030 and the thirty-year term of the Regulatory Agreement ends in September 2030. If approved, the extension will bring the loan due dates and Regulatory Agreement end dates for Phases I and II to December 31, 2031. RECOMMENDATION: It is recommended by the Housing and Community Services Department that the Housing Authority, by resolution, approve a request for extension of loan and Regulatory Agreement terms for Northpoint Apartments Phases I and II, located at 2121 Stony Point Road, as follows: 1) extend Northpoint Phase I loan due dates from August 2029 to December 31, 2031 and extend the Regulatory Agreement from October 2029 to December 31, 2031; 2) extend Northpoint Phase II loan due dates from December 2029 and September 2030 to December 31, 2031 and extend the Regulatory Agreement from September 2030 to December 31, 2031; and 3) authorize subordination of the Housing Authority loans to refinanced senior mortgages. Angela Morgan, Program Specialist Housing and Community Services, gave a presentation and answered Commissioner City of Santa Rosa Regular Meeting Minutes Page 6 of 6 Housing Authority Regular Meeting Minutes - Final September 27, 2021 questions. Public Comment: NONE A motion was made by Vice Chair Owen, seconded by Commissioner Downey Ph. D,to waive reading of the text and adopt: RESOLUTION NO. 1727 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING AN EXTENSION OF HOUSING AUTHORITY LOAN AND REGULATORY AGREEMENT TERMS FOR NORTHPOINT APARTMENTS PHASES I AND II, 2121 STONY POINT ROAD, AND SUBORDINATION OF THE HOUSING AUTHORITY'S LOANS TO REFINANCED SENIOR MORTGAGES. The motion carried by the following vote: Yes: 7 - Chair Test, Vice Chair Owen, Commissioner Burke, Commissioner Downey Ph. D, Commissioner LaPenna, Commissioner McWhorter and Commissioner Rawhouser 14. ADJOURNMENT Seeing no further business, Chair Test adjourned the meeting at 3:31PM. Approved on: _______________________________ Steven V. Brown, Recording Secretary