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HomeMy WebLinkAboutRA Minutes 1999-09-20SRRA MINUTES (Regular) 9/20/99 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, SEPTEMBER 20, 1999 AT 7:30 PM Regular Meeting: Present: Albert J. Boro, Chairman San Rafael Redevelopment Agency: Paul M. Cohen, Member Cyr N. Miller, Member Gary O. Phillips, Member Absent: Barbara Heller, Member Also Present: Rod Gould, Executive Director Gary T. Ragghianti, Agency Attorney Gus Guinan, Assistant Agency Attorney Jeanne M. Leoncini, Agency Secretary ORAL COMMUNICATIONS OF AN URGENCY NATURE: 7:35 PM None. CONSENT CALENDAR: Member Phillips moved and Member Miller seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION 1. Approval of Minutes of Regular Meeting of Tuesday, Minutes approved as September 7, 1999 (AS) submitted. 2. Unapproved Minutes of Citizens Advisory Committee Accepted report. Meeting of Thursday, September 2, 1999 (RA) - File R-140 IVB AYES: MEMBERS: Cohen, Miller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Heller AGENCY CONSIDERATION: 3. RESOLUTION AUTHORIZING THE ALLOCATION OF $250,000 PER YEAR FROM THE HOUSING SET ASIDE BUDGET FOR THE PROPOSED CANAL AFFORDABLE, SAFE, AND HEALTHY HOUSING ("C.A.S.H.") PROGRAM (RA) - File R-420 x R-173 X (SRCC) 13-1 x 13-16 x 218 x 240 Senior Development Specialist Stephanie Smith-Lovette explained the goal of the C.A.S.H. Program was to provide rehabilitation funds in exchange for rent restrictions. She noted the City and the Redevelopment Agency have a variety of initiatives in the Canal, coordinated under the auspices of the Canal Development Team, which include Code Enforcement and Housing Standards coordinated by Community Development; Crime Prevention and Enforcement coordinated by the Police Department; and Disaster Preparedness and Life Safety Skills Training in the Canal by the Fire Department. She noted the Redevelopment Agency was responsible for physical improvements to the neighborhood, and preservation of affordable housing. Ms. Smith-Lovette stated everyone was concerned with increasing rents in the Canal, as well as decreasing property standards, and the Agency was working with BRIDGE Housing to acquire, manage, and rehabilitate properties in the Canal, and keep the rents affordable. She reported this program was slow going, noting that due to the increase in rents in the Canal, the SRRA MINUTES (Regular) 9/20/99 Page 1 SRRA MINUTES (Regular) 9/20/99 Page 2 property owners were not willing to sell. However, she stated BRIDGE Housing was committed to continuing the program, noting they had several offers out, and were just waiting for one of them to be accepted. Ms. Smith-Lovette explained staff was now proposing a new set of programs to address issues in the Canal, programs in which the Agency would work with property owners who wanted to keep their properties. Pointing out that these new programs had been developed in a joint effort with Community Development and Community Policing, she thanked Police Sergeant Jim Kelly for all his work and the team leadership he provided in developing these programs. She stated Sergeant Kelly had made some terrific contacts in the neighborhood, and done a lot of research, and she believed staff would not have been able to bring these programs to the Agency Members this quickly without him. She noted staff had also had help from the Agency's Housing Consultant, the Housing Authority, and two members of the Citizens Advisory Committee. Ms. Smith-Lovette stated the components of the Canal Housing Program were owner education, certification, and low interest loans. She explained the owner education program would be done by the Police and Fire Departments, as well as BRIDGE Housing and the mediation services the Agency funds, noting they would be providing seminars and property management techniques for the property owners in the Canal. Ms. Smith-Lovette reported Code Enforcement Officer Larry Salvisberg and Sergeant Kelly have found, in working with some of the property owners in the Canal, that they lack a sophistication in terms of property management, which has led to overcrowding and other public safety issues, and staff is hoping to provide education concerning those issues. Ms. Smith-Lovette reported the second program was a voluntary certification program, which she noted was a little tough to sell. She stated this was a very effective program in an area where rents are low and vacancies are high; however, unfortunately, that was not the problem in the Canal. She noted this program also worked very well in an area that has gotten a bad reputation, and where property owners have a problem getting tenants because people are concerned about property standards, and she explained this certification would show the property owner does care about the property, and is willing to keep it up. Ms. Smith-Lovette stated staff believed this program would work in the Canal if it could be combined with other programs and benefits for the property owners; therefore, the Redevelopment Agency would be working with other public and private agencies to provide benefits to certified owners. She noted the certification process would include physical inspection; agreeing to keep the units in proper order; enforcing a model lease, which basically addresses overcrowding issues; having an on-site manager for any building over ten units; an annual resident meeting; and annual re- inspection. Ms. Smith-Lovette stated funding was already in the budget to fund the first two programs, and staff was now before the Agency Members to request funding for the C.A.S.H. Program, which she explained was an incentive for affordability covenants. The hope was to provide housing for very low- income people, at 50% of the County Median Income, with a goal of 50% of the units in any rehabilitated building the Agency puts money into. Financing would be a twenty-year affordability covenant at 4.00% simple interest, deferred for twenty -years, and there would be an ability to pre- pay, although there would be a pre -payment penalty. In addition, this program would have the same annual certification requirements as the existing BMR (Below Market Rate) Program. SRRA MINUTES (Regular) 9/20/99 Page 2 SRRA MINUTES (Regular) 9/20/99 Page 3 As an example of the affordability, Ms. Smith-Lovette noted a 2 -bedroom unit would rent for $977 to $1050, compared to current rents in the Canal of approximately $1,200 to $1,400 for a 2 bedroom apartment. She explained staff would be working with property owners who either are not yet charging those rents, or are willing to reduce their rents. Ms. Smith-Lovette stated there would be an inspection of the units, and then the Agency's funds could be used to correct Code deficiencies, take public safety security measures, improve the units, improve the common areas, and do exterior improvements. She stated the goal of the Redevelopment Agency has always been to help the tenants, as well as help the neighborhoods, by doing exterior improvements. Ms. Smith-Lovette stated this program was going to be a very hard sell, noting some of the property owners had stated they were not interested in getting involved with the government, as they did not want the Agency's money, and they did not want to reduce their rents. Therefore, staff was suggesting a pilot program with a willing property owner, whose units are in fairly good shape and not overcrowded. She stated staff would return to the Agency sometime between January and March, with the initial building and first loan. Member Cohen noted the recommendation was to allocate $250,000, and asked, if all that money was placed, how many units would be impacted? Economic Development Director Nancy Mackle stated that would depend on how bad a shape the property was in, noting the Agency could easily spend $20,000 per unit for a full-blown rehabilitation; therefore, staff was planning on doing one building per year, getting a percentage of the units as affordable. Ms. Smith-Lovette pointed out staff was recommending that for the pilot program the Agency look for a building that is not in terrible shape, and a building that is not currently under Code Enforcement action. Member Cohen asked if staff had one or two buildings in mind, and if they could give the Agency Members a sense of how many units might be subject to the rent restriction? Ms. Mackle stated that rather than an eighty or one hundred unit building, staff would first look for small apartment buildings of twenty or thirty units, and then make half the units affordable through this program. She stated the Agency and the property owner would have to "pencil -out" how much they were rolling their rents back, or whether they were already below what the Agency's goal for rents would be, and then the Agency would have to determine for how long a period of time it wished to buy that subsidy. She stated all that would have to be calculated, as would the cost of the rehab. Ms. Mackle noted this was still a program in concept, and each building would be brought back before the Agency Members for final approval. Mr. Cohen asked if staff would be returning to the Agency with specific proposals, reporting on how many units the Agency would be "buying" to maintain affordability, the cost, and the period of time? Ms. Mackle stated every project would come back before the Agency, and staff would show exactly what the Agency would be getting for its money, with such information as how many affordable units the Agency would get, the period of time, the nature of the rehab, what the rents had been, and what the rents will be. Member Cohen felt this was an interesting concept; however, he noted this program would have to be monitored to see whether or not it was effective in terms of the use of funds, which would be determined by the number of units the Agency is keeping at this level of affordability, and whether there is another way to use the money that would achieve the same end. SRRA MINUTES (Regular) 9/20/99 Page 3 SRRA MINUTES (Regular) 9/20/99 Page 4 Chairman Boro referred to pre -payments, asking if someone were to pre -pay their loan, would the twenty-year low rent continue? Ms. Mackle stated it would not, explaining that was why there would be a pre -payment penalty. She acknowledged the terms would be fairly harsh; therefore, the participants would likely be those who intended to keep their properties for a long time, and those who did plan to sell their properties probably would not go for it. Member Miller stated he was particularly pleased with this program, because the Agency was taking yet another approach. He noted the Agency continues to use all the good work of Code Enforcement and Community Policing in wrapping everything together, pointing out that was a major effort for the Agency. He stated we were in an era of small government, and what the Agency was addressing was a very serious, systemic problem, likely the greatest problem being faced in the Canal neighborhood. Mr. Miller believed the Agency was going about this in the best way it possibly could, to maximize what it has, and assist where it can, and commended the Agency for this program. In tallying the amount of overall money the Agency is putting toward affordable housing for renters, he pointed out the C.A.S.H. Program would be $250,000, BRIDGE Housing was another $250,000, CDBG (Community Development Block Grant) was approximately $550,000, and all the efforts of the Code Enforcement Department would be approximately $200,000. He stated he appreciated all the Agency was doing, as did the residents in the Canal area. Member Miller moved and Member Cohen seconded, to adopt the Resolution. RESOLUTION NO. 99-29 - RESOLUTION AUTHORIZING THE ALLOCATION OF $250,000 ANNUALLY FROM THE HOUSING SET ASIDE BUDGET FOR THE PROPOSED CANAL AFFORDABLE, SAFE AND HEALTHY HOUSING ("C.A.S.H.") PROGRAM. AYES: MEMBERS: Cohen, Miller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Heller 4. AGENCY MEMBER REPORTS: a. CANAL MERCADO - File R-140 #8 x (SRCC) 251 Economic Development Director Nancy Mackle reminded the Agency Members that the Canal Mercado, which is held on Tuesday evenings, would be ending this month, and urged everyone to try to attend. There being no further business to come before the Redevelopment Agency, the meeting was adjourned at 8:10 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 9/20/99 Page 4