Housing Authority

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA Housing Authority Regular Meeting Minutes - Final Monday, August 26, 2024 1:30 PM 1. CALL TO ORDER Vice-Chair Newton called the meeting to order at 1:42PM. 2. REMOTE PARTICIPATION UNDER AB 2449 (IF NEEDED) Commissioner Friedman participated remotely and read the Just Cause statement for AB 2449. 3. ROLL CALL Present 6 - Chair Jeremy Newton, Commissioner Angela Conte, Vice Chair Wayne Downey Ph. D, Commissioner Jeffrey Owen, Commissioner Doug Shivananda Friedman, and Commissioner Andrew Smith 4. ELECTION OF OFFICERS 4.1 MOTION - ELECTION OF OFFICERS RECOMMENDATION: It is recommended by the Housing and Community Services Department that the Housing Authority elect a Chair and Vice-Chair to serve with a term of office commencing on August 26, 2024. Executive Director, Megan Basinger provided information regarding the Election of Officers and answered commissioner questions. Public Comment: Duane Dewitt from Roseland thanked everyone for volunteering and encouraged the Housing Authority Board to choose someone committed for the long term. A motion was made by Commissioner Smith, seconded by Commissioner Owen, to nominate Vice Chair Newton as the Housing Authority Chair. The motion carried by the following vote: Yes: 6 - Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D, Commissioner Owen, Commissioner Friedman and Commissioner Smith City of Santa Rosa Regular Meeting Minutes Page 2 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 A motion was made by Commissioner Smith, seconded by Chair Newton, to nominate Commissioner Downey as the Housing Authority Vice Chair. The motion carried by the following vote: Yes: 6 - Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D, Commissioner Owen, Commissioner Friedman and Commissioner Smith 5. STATEMENTS OF ABSTENTION NONE 6. STUDY SESSION NONE 7. PUBLIC COMMENTS (ON NON-AGENDA ITEMS) Public Comment: Gregory Ferrin congratulated Chair Newton on his appointment and expressed hope for the continued partnership between the Housing Authority and the community. Duane Dewitt commented on Section 8 HUD-VASH vouchers, seeking clarification on whether VA benefits would be counted as income. He also requested that the houses torn down to widen Stony Point Road be rebuilt and advocated for more affordable housing in the Roseland area. 8. APPROVAL OF MINUTES 8.1 Draft Minutes - June 17, 2024. Approved as submitted. Public Comment: Duane Dewitt clarified his reference in item 7, noting that the City had purchased surplus property from Sebastopol Road to Dutton Avenue and incorporated it as part of Downtown, which explained his reference of Roseland and Downtown together. 9. PROCLAMATIONS/PRESENTATIONS City of Santa Rosa Regular Meeting Minutes Page 3 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 9.1 PROCLAMATION - PROCLAMATION OF APPRECIATION FOR THOMAS LAPENNA Chair Newton presented a Proclamation of Appreciation for former Chair Tom LaPenna. Public Comment: None 10. CHAIRMAN/ COMMISSIONER REPORTS NONE 11. COMMITTEE REPORTS NONE 12. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS: 12.1 PENDING DEVELOPMENT PIPELINE UPDATE Provided for information. Megan Basinger, Director, provided information and answered Commissioner questions. Public Comment: Greg Fearon requested that the pipeline be made clearer to the public. Duane Dewitt thanked the director for clarifying the pipeline and expressed concerns about veterans not receiving newer units and the lack of progress on Roseland area projects. 13. CONSENT ITEMS NONE 14. REPORT ITEMS 14.1 REPORT - BURBANK HOUSING DEVELOPMENT CORPORATION AND BURBANK HOUSING NEIGHBORHOOD REVITALIZATION CORPORATION’S REQUEST FOR A CONDITIONAL CONSOLIDATION, EXTENSION AND MODIFICATION OF LOANS City of Santa Rosa Regular Meeting Minutes Page 4 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 FOR 2862 AND 2866 APPLE VALLEY LANE, 2870 AND 2874 APPLE VALLEY LANE, PAPAGO COURT, PAULIN CREEK, AND OLIVE GROVE APARTMENTS BACKGROUND: The Housing Authority has provided loans to Burbank Housing Development Corporation and Burbank Housing Revitalization Corporation (Burbank Housing) for five affordable housing properties in the total principal amount of $13,868,472 representing a total of 228 units affordable to extremely low-, very low- and low-income households. The properties, identified as 2862 and 2866 Apple Valley Lane, 2870 and 2874 Apple Valley Lane, Papago Court, Paulin Creek and Olive Grove Apartments, are being consolidated into a “scattered site” application known as Apple Valley Scattered Sites to pursue tax exempt bonds and tax credits to access funds for rehabilitation of the project sites. The proposed consolidation includes a request to extend the terms of the loans to June 30, 2082, as well as extend the term of the Regulatory Agreements, securing long term affordability for 228 units for an additional 21 to 34 years through the extension of each regulatory agreement. RECOMMENDATION: It is recommended by the Housing and Community Services Department that the Housing Authority, by five resolutions, conditionally approve a consolidation, extension and modification to the loans for 2862 and 2866 Apple Valley Lane, 2870 and 2874 Apple Valley Lane, Papago Court, Paulin Creek and Olive Grove Apartments to: 1) consolidate the existing loans that are secured on the five project sites; 2) forgive the accrued interest on the five project sites at the time of loan modification; 3) extend the loan term(s) for 57 years at the Applicable Federal Rate, with a floor of 3%; 4) extend the term of the Regulatory Agreements recorded against each project site to June 30, 2082; 5) assign the loans to Apple Valley Olive Grove, L.P.; and 6) authorize the Executive Director to enter into any and all agreements necessary to carry out the direction of the Housing Authority. Megan Basinger Director gave presentation and answered Commissioner questions. Public Comment: Jocelyn Lin, Director of Housing Development for Burbank Housing, City of Santa Rosa Regular Meeting Minutes Page 5 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 thanked staff for quickly adding the item to the agenda, clarified the project, and answered Commissioner questions. Rich Wallach, Senior Director of Housing Finance for Burbank Housing, asked if the Commissioner had any questions for him. Steve Burke, Burbank Housing Board Member and former Housing Authority Board Member, encouraged support for the project and discussed how Apple Valley was in the early 1990's and how the City and Housing Authority helped stabilize and clean up the area now owned by Burbank Housing. Gregory Fearon commented on Burbank Housing's efforts to stabilize Apple Valley and encouraged the Housing Authority Board to support the project. David Harris commented on how he was unaware how Housing Choice Vouchers work and highlighted that Project-Based Vouchers provide assured funding. Duane Dewitt commented that the Housing Authority should avoid making rushed judgments, especially in this instance. A motion was made by Commissioner Smith, seconded by Commissioner Friedman, to waive reading of the text and adopt: RESOLUTION NO. 1777 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF THE TERM OF ITS LOAN NOS. 6029-9353-98, 9929-2873-17, AND 8029- 9353-98 LOCATED AT 2862 AND 2866 APPLE VALLEY LANE, FROM AUGUST 9, 2048 TO JUNE 30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM OCTOBER 19, 2061 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR MORTGAGE RESOLUTION NO. 1778 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF City of Santa Rosa Regular Meeting Minutes Page 6 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 THE TERM OF ITS LOAN NOS. 8029-9354-98, 6029-9354-98, 9929-2883- 17, AND 6929-9354-00 LOCATED AT 2870 AND 2874 APPLE VALLEY LANE, FROM AUGUST 9, 2048 TO JUNE 30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM JANUARY 1, 2053 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR MORTGAGE RESOLUTION NO. 1779 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF THE TERM OF ITS LOAN NOS. 9030-0955-01, 9930-1125-03, 9930-1-75- 02, 9930-1085-02, and 9930-1065-02 TO OLIVE GROVE APARTMENTS, L.P FOR OLIVE GROVE APARTMENTS, FROM DECEMBER 16, 2059 TO JUNE 30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM OCTOBER 19, 2061 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR MORTGAGE RESOLUTION NO.1780 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF THE TERM OF ITS LOAN NOS. 6824-9633-98, 8624-9633-98, 9929-2505- 14, 9930-1665-06, 6029-0773-98, 9929-0515-97, 6924-9633-00, AND 9029-0505-97 FOR PAPAGO COURT APARTMENTS, FROM VARIOUS DATES TO JUNE 30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM JUNE 1, 2054 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR MORTGAGE RESOLUTION 1781 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF THE TERM OF ITS LOAN NOS. 9929-0842-00, 9029-0673-99, 9929-0732-01,6029-0743-97, 9929-0742-00, 9929-2555-15, 9929-2515-14, 9029-0732-00, 9930-1675-06, 9929-0822-006029-0723-97, 9029-0663-99, 9029-0683-99 AND, 9929-0782-00 TO PAULIN CREEK APARTMENTS INVESTORS, L.P FOR PAULIN CREEK APARTMENTS LOCATED AT VARIOUS ADDRESSES ON APPLE VALLEY LANE AND W. STEELE LANE, FROM JUNE 30, 2055 TO JUNE 30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM JUNE 30, 2055 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR MORTGAGE City of Santa Rosa Regular Meeting Minutes Page 7 of 7 Housing Authority Regular Meeting Minutes - Final August 26, 2024 The motion carried by the following vote: Yes: 6 - Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D, Commissioner Owen, Commissioner Friedman and Commissioner Smith 15. ADJOURNMENT Seeing no further business, Chair Newton adjourned the meeting at 3:06PM. Approved on: September 23, 2024 /s/ Ashley Paul, Recording Secretary