Housing Authority

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA Housing Authority Regular Meeting Minutes - Final Monday, January 24, 2022 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 Megan Basinger, Director of Housing and Community Services, introduced item 4.1. 4.1 FY 2022/23 BUDGET PROCESS AND PUBLIC INPUT Early each year, the Housing Authority holds a study session to obtain feedback and comments from the Housing Authority Commissioners and public regarding the annual budget process. Staff will provide an overview of the budget process timeline and anticipated trends for the coming year. Megan Basinger, Director of Housing and Community Services, and Kate Goldfine, Administrative Services Officer Housing and Community Services, provided information and answered Commissioner questions. Public Comments: NONE 5. PUBLIC COMMENTS (ON NON-AGENDA ITEMS) NONE City of Santa Rosa Regular Meeting Minutes Page 2 of 4 Housing Authority Regular Meeting Minutes - Final January 24, 2022 6. APPROVAL OF MINUTES 6.1 December 13, 2021 - Draft Minutes Approved as submitted. 7. CHAIRMAN/ COMMISSIONER REPORTS NONE 8. COMMITTEE REPORTS NONE 9. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS: 9.1 COMMUNICATION - PENDING DEVELOPMENT PIPELINE UPDATE Provided for information. Megan Basinger, Director of Housing and Community Services, reported on staffing in the Housing and Community Services Department, the Pending Development Pipeline, and answered Commissioner questions. Elizabeth Durham, Program Specialist Housing and Community Services, responded to Commissioner questions regarding inspection staffing. Nicole Rathbun, Interim Manager Housing and Community Services, responded to Commissioner questions regarding Pending Development Pipeline. Public Comments: NONE 10. CONSENT ITEMS NONE 11. REPORT ITEMS Megan Basinger, Director of Housing and Community Services, introduced item 11.1. City of Santa Rosa Regular Meeting Minutes Page 3 of 4 Housing Authority Regular Meeting Minutes - Final January 24, 2022 11.1 REPORT - BENNETT VALLEY APARTMENTS - MODIFICATION TO PRIOR FUNDING COMMITMENT TO ALLOW $2,000,000 OF PREDEVELOPMENT LOAN FUNDS TO BE SECURED BY A REPAYMENT GUARANTY UNTIL THE PROPERTY IS PURCHASED BY DEVELOPER AND TO ALIGN THE TERM OF THE NOTE WITH THE TERM OF AFFORDABILITY BACKGROUND: On May 10, 2021, the Housing Authority adopted Resolution No. 1717 conditionally committing loan funds in the amount of $5,800,000 for construction-related costs for the Project. On June 21, 2021, the Housing Authority approved Resolution No. 1719 allowing the award to also be utilized for pre-development costs. The developer, Freebird Development Company, LLC, has requested $2,000,000 for predevelopment-related costs to be secured by a repayment guaranty until the property is purchased from the City, at which time the full award of $5,800,000 would be secured against the property by a deed of trust. The developer also requested the term of the note align with the term of affordability for the Project, which is 55 years from commencement of term. RECOMMENDATION: It is recommended by the Housing and Community Services Department that the Housing Authority, by resolution, allow $2,000,000 of the conditional commitment of loan funds for predevelopment-related costs to be secured by a repayment guaranty until the property is purchased by the developer, and to align the term of the note with the term of affordability. Julie Garen, Program Specialist Housing and Community Services, gave a presentation and answered Commissioner questions. Nicole Rathbun, Interim Manager Housing and Community Services, assisted in answering Commissioner questions. Megan Basinger, Director of Housing and Community Services, assisted in answering Commissioner questions. Jeff Berk, General Counsel Housing and Community Services, assisted in answering Commissioner questions. City of Santa Rosa Regular Meeting Minutes Page 4 of 4 Housing Authority Regular Meeting Minutes - Final January 24, 2022 Public Comments: Robin Zimbler, Manager and Owner of Freebird Development, responded to Commissioner questions regarding the proposed modification of funds. A motion was made by Vice Chair Owen, seconded by Commissioner Downey Ph. D,to waive reading of the text and adopt RESOLUTION NO. 1733 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A MODIFICATION TO A PRIOR FUNDING COMMITMENT OF FUNDS IN THE AMOUNT OF $5,800,000 TO FREEBIRD DEVELOPMENT COMPANY, LLC, FOR BENNETT VALLEY APARTMENTS TO ALLOW $2,000,000 OF PREDEVELOPMENT COSTS TO BE SECURED BY A REPAYMENT GUARANTY UNTIL THE PROPERTY IS PURCHASED BY DEVELOPER AND MODIFICATION TO THE TERM OF THE NOTE TO ALIGN WITH THE TERM OF AFFORDABILITY. 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 12. ADJOURNMENT Seeing no further business, Chair Test adjourned the meeting at 2:46PM.