 I believe all of the commissioners who would be able to today are now in the Zoom meeting and we are about one minute away from 1.30. Thank you. Good afternoon. Today is October 24th, 2022. This is the Housing Authority meeting, regular meeting today due to the provisions of the governor's executive orders N2520 and N2920, which suspend certain requirements of the Brown Act. The Housing Authority commissioners will be conducting today's meeting in a virtual setting using Zoom webinar. Commissioners and staff are participating from remote locations and or practicing appropriate social distancing. Members of the public may view and listen to the meeting as noted on the city's website and as noted on the agenda. Members of the public wishing to speak during item 6, public comment, or during our public hearing will be able to do so by raising their hand and will be given the ability to address the commission. As a matter of housekeeping, I'd like to remind commissioners to keep their audio on mute unless they are speaking. Members other than the chair can mute themselves. Staff will remain muted until needing to speak. As members of the public join the meeting, you will be participating as an attendee. Your microphone and camera will be muted. Only today's panelists will be viewed during the meeting. If you're calling in from a telephone and choose to speak during the public comments portion of today's agenda, for privacy concerns, the host will be renaming your viewable phone number to quote resident and the last four digits of your phone number. The city of Santa Rosa is committed to creating a safe and inclusive environment free from disruption. We will not tolerate any hateful speech or actions and are well staffed to monitor that everyone is participating respectfully or they will be removed. If necessary, we will also immediately end the meeting. Zoom house, please explain how public comments will be heard at today's meeting. At each agenda item, the item is presented. The chair will ask for the housing authority member comments and then open it up for public comment. The host and zoom will be lowering all hands until public comment is open for the agenda item. Once the chair has called for public comment, the chair will announce for the public to raise their hand if they wish to speak on the specific agenda item. If you are calling in to listen to the meeting audibly, you can dial star nine to raise your hand. The host will then call on the public who have raised their hand. Public comment will be limited to three minutes and a timer will appear on the screen for the commission and public to see. Once all live public comments have been heard, the meeting host will read email public comments. If you provide a live public comment on an agenda item but also submitted an email, your email public comment will not be read during the meeting. Additionally, there is one public comment period on today's agenda to speak on non-agenda matters, item six. This is the time when any person may address the housing authority on matters not listed on this agenda, but which are within the subject matter jurisdiction of the housing authority. Thank you. Item number two is roll call. Before we do the roll call, please ask all commissioners to turn their cameras on please. You may proceed the roll call. Okay. We'll go ahead and do the roll call for this meeting. Start with Commissioner Burke. Here. Commissioner Downey. Here. Okay. Commissioner McWhorter. Here. Commissioner Rawhouser. Here. Commissioner LaPenna. Commissioner LaPenna has let us know in advance he will not be attending today. Vice Chair Owen. Here. And Chair Test. Here. Let the record reflect that all commissioners are present with the exception of Commissioner LaPenna. Thank you. Item number three is statements of abstention. Do any commissioners have reason to abstain? I see none. Item number four is briefing. All that's on Tino. I hope I pronounced your line correctly. Nicole. Housing dashboards. Afternoon, Chair Testing Commissioners. We have a few members of the Planning and Economic Development Department here. One has to go over the first two slides and I will jump in on one of those as well to go over these housing dashboards with the group today. And if we could have the reporting secretary begin that presentation on the first slide. Could you hold on just for one moment? We're calling that up. That's great. Apologies. It should be showing up now. Got it. OK. Good afternoon, Chair, Vice Chair, and members of the Commission. My name is Gay Bosburn. I'm the Deputy Director of Development Services in the Planning and Economic Development Department. We're very happy to be here today to provide an overview of some of the outward facing technological tools that we've rolled out over the last year to assist with better understanding where housing is happening and where it is in the pipeline. Most of the presentation today is really going to focus on three different categories. We have mapping portals, which are a very spatial, centric portal, where you can pan around on maps. You can click on dots in our Act. We also have metrics pages, which show statistics for housing. And then we also have reports that give some detailed information. I'd also like to mention, similar to what Nicole brought forward in the introduction, in addition to Nicole, we also have a few other people assisting with this process. Joining me today is Jessica Jones, our Deputy Director of Planning, and Amy Nicholson, our supervising planner. Next slide, please. So the first tool we'd like to provide an overview on is our downtown housing dashboard. As many of you may know, the city's put a lot of effort into encouraging downtown housing development. Many of those initiatives started around 2014 and continued into 15 and 16. And what this housing dashboard really tries to show is what we got out of that effort. So how much housing have we put in downtown really since 2014? So with quite a few of these tools, we'll sandwich together a few different options. We'll provide maps, and we'll also provide metrics associated with them as well. And as you can see, we have a small metric at the bottom, which really just shows a count from 2014. So what we're trying to track there is the number of housing that has happened since 2014. Is it really an annual count? It's just a running total. So we've actually had quite a bit of housing in the downtown station area. We've had 684 applied. We have almost 230 in construction, and we have finalized 131. That includes everything from accessory dwelling units to single-family dwellings to multi-housing in that area. So in addition to the metrics, we also have a variety of different maps that are available through this portal. Next slide, please. Our first map really shows the actual development that's occurring. And what we wanted to focus on here, obviously, development goes through multiple stages before it's actually completed. There's the entitlement or really the land use approval stage. Obviously, there's the construction permit, get through that, and then there's the development stage. So this shows all of that. And there's different shapes and colors based on the status and the actual pipeline area where that development falls. And all these shapes can be interacted with. So a user can click on a dot and get quite a bit of information about the development. It's a little hard to see with a very static screenshot, but you can scroll up and down when you click the dot. There are certain areas when a project is actually under construction that you can get to the building permit. You can see the stage of that. You can understand and get contact information from the developer. And you can see who's coordinating it on the city side. So our goal here was to provide a general overview of what's happening in the downtown, but also allow the user to interact if they want to go further down the rabbit hole and better understand what's happening at that individual location. Next slide, please. So in addition to the development activity, we also wanted to show how the city is investing in the downtown station area. So we added another layer to this map, which focuses on enhancements. Both these layers will grow over time, as we better understand what the user wants to see on these pages. On this particular map, we really focus on capital projects. So what is the city doing as far as roadway improvements? We also focus on amenities. We're talking about actually implementing parklets. We have programs in place for that. So as parklets start showing up, it either shows on this map or the development map. We also give some information about smart and transit. So we show where our 15-minute corridors are on smart, and we have information about the smart station as well. So once again, the user can interact with all these shapes, click, provide more information, and inside the pop-ups, there's additional information to get to smart or to get to transit if people want to go a little deeper. Next slide, please. So that really provides a summary on the downtown map. So at this point, I'd like to hand the presentation over to Jessica Jones, and she will talk a bit about our housing dashboards. Great. Thanks so much, Gabe. So, yes, as mentioned, my name is Jessica Jones. I'm the deputy director for planning here in Planning and Economic Development. I oversee both our current development as well as our long-range planning sections. So this slide, we've got two housing dashboard websites or dashboards on our Planning and Economic Development page. This first one is showing a dashboard for 2022, and it's really giving a high-level overview of the housing permits that are currently in process. So there's a lot of information on here, but just walking through it briefly. So we've got up in the upper left-hand corner, it identifies the total number of active permits. And so those are the total number of permits that are currently in building permit plan review, have been issued a building permit, or are currently under construction. And so as of the date of this particular screenshot, which was October 11th, we had 3,724 housing units in that various stages of building permit reviewer construction. Directly below that is that same number identified in units by type. So in the red portion of that circle is the number of manufacturer, sorry, not many, multi-family residential units that are part of that. So just over 2,800. And then in green is the single-family dwelling units at 850. And then in blue is accessory dwelling units at 384. Just to the right of that is the progress of those units broken down. So you can see how many are in that plan review, how many have been issued permits, how many are under construction. And it also includes the total number of structures that are complete currently as of this portion of October of 2022. So we've got 316 units that have been completed. And then the bottom two rows are showing the total number of units that have been applied for to date in 2022. And then again broken down by unit type and then the number of units that have been completed thus far. Next slide, please. And so this is the second portion of the housing dashboard. And this shows the number of units that went through the process during 2021. So as you can see, it's kind of broken down in three different sections here. Units applied for in 2021, just over 1,100. And those are broken down by unit type. And then under building permit plan review, just over 1,600. And then units completed in 2021 was 609. And so these dashboards are regularly updated. I think it's every day, if not multiple times during the day, gets pulled from our permitting system, a cellar. So the 2021 should remain static since we are no longer in 2021. But the previous slide that we looked at for 2022 would continuously updated to provide both the community, city staff and the decision makers with information on what is currently in process. And so these, obviously this is metrics. We don't have a map right now for these in a second. Nicole's gonna go over our affordable housing map, but we are in the process of working on a project called House Santa Rosa that will include some mapping for housing units. And that will be coming in the next year and will likely be bringing an update to the housing authority on that sometime in this next year. So with that, I will hand it over to Nicole. All right, next slide please. All right, great. So on this slide, we have the Santa Rosa affordable housing map, which is on the public facing city website on the housing and community services page. It pulls data from the housing trust affordable housing management system or what we call TAMS, which is the system where we enter all of the loan information and all of the restricted units that the housing authority makes awards on. This is a live map. So all the dots appear as soon as loans are closed and entered into TAMS, whether they're rehabilitation loans or pre-development loans, as soon as those are closed, they do show up on the map. As you can see in the lower right-hand side, there is a key that calls out the different types of restricted units by different colored dots. The majority of our developments being the orange dots for multifamily residential. There's also a filter option on the left side so the user can look at just certain types of projects, projects by funding type and accounts in district that they reside in. The colored dots are also interactive. So when the user clicks on any of the dots, the window opens like the one that's open right in the middle here for dot and flats. It shows you the address and the basic information about the project including number of units and regulatory end date. So when you're approving the loans and there's a standard, say 55 year term of affordability, that would end on a specific date in the loan agreements once they're executed and you'll see that date on the front of the screen right there at the regulatory end. So this site, as I mentioned, is on the main housing and community services, a site that's public-facing for everybody to see. All right, go ahead and next slide please. Good afternoon, Chair, test and members of the commission. My name is Amy Nicholson and I supervise our current planning team. And so this slide here shows the city's existing pending development report. So this report includes all of our planning applications that meet certain criteria. So what that means is this report includes all new residential development projects which include five or more units. And it also includes projects for non-residential developments that are 5,000 square feet or greater in area. We are updating this report on a quarterly basis right now. So the graphics that are here on the slider from August of this year. So we know that things change in just a period of a few months. And so some of the projects that are listed on this screen currently actually will be removed during the next update because those projects have completed construction. This map does have, I'm sorry, this report includes a number of maps. So the example here on this slide is the city-wide map. There's little purple areas, and then there's a similar breakdown for our non-residential projects. So if you look a little bit more closely at the report part, it has some pretty useful information like the location of the project in addition to the land use type and number of units or building area. And then there's also an applicant and planner contact section so that those who are interested know who to contact to get additional information. I wanted to add too that we've been working on launching a live pending development report. So we hope to do so soon and we'll certainly report out when that happens. And the goal of this report is just to have information that's refreshed on a regular basis. So much like what Gabe and Jessica mentioned earlier and Nicole, this would be updated basically in real time so that people become aware as soon as we receive a new application or as soon as an application is approved. This live pending development report will also include additional detail on these projects including the number of proposed affordable units and will allow users to filter by various different criteria. One might be city council districts. So with that, I think we can go to the next slide and I can turn it back over to Gabe to conclude the presentation. Thank you. Thank you, Amy. And as Amy mentioned, that does conclude our presentation. So at this point, we're happy to listen to any input or answer any questions that you may have. Thank you, Gabe. Thank you, everyone. I actually have seen a couple of the slides that you showed today, but I haven't seen them all. So this is really exciting to see how much has changed and grown. I see a hand raised by Commissioner Downey. You have a question or a comment? Yes, so this is absolutely wonderful. And I really appreciate all of you who've been working on this. My curious question is, will your algorithms allow you to move types of housing around the maps if you discover a high concentration of dots representing a specific type of housing so that one of the conversations we've been having is diversifying low-income housing across the city as opposed to having it just in one area. Is that even a possibility at this point? So I can take a stab at answering that question. So the types of units that are allowed is based on the underlying general plan use designation as well as the supportive zoning districts. And so we're really, most of these projects are applicant-driven, and so we are responding to new applications that come in. And we are reporting out to council and on where these projects are proposed. But what I would say is that we are in the middle of a general plan update. And I'm not sure if we've got anything on your calendar yet, but we will likely be coming to the housing authority with an update on the general plan process here sometime in the next several months. But we are looking at areas of the city where we want to concentrate new development, including development of new housing. And so part of that is looking at where we are seeing affordable housing units predominantly being located. And so trying to craft policies to ensure that we have equitable distribution throughout the city. Yeah, I wasn't sure if you could incentivize an applicant to possibly build somewhere else with a different scoring feature because we had worked on scoring a while back and perhaps you could give them a couple of extra points that they would consider a different location, provided the land is available or is it just gonna be as is, as come? So Commissioner Downey, I'll go ahead and respond to that. The loans that you were seeing in the scoring matrix that you were referencing are for the loans for affordable housing. And while we can look at, we will plan to look at the different aspects of the scoring before each NOFA that is released, we ultimately need to also put funding where it can be utilized. So having funding in projects and areas that are gonna be systematically undevelopable is not going to serve the residents. So it's a balancing act that we need to look at. And also on that affordable housing map, the screenshot that we used in order to get as much information on the screen for you to see, we had to shrink things down a little bit. If we were to close that window that shows the Dutton Flats project information and zoom out a bit, you would see that there are more dots in the North Eastern quadrant that were hidden by that window. And it is relatively evenly dispersed as it is right now also. So the affordable housing production follows the trends in the available land throughout the city over time. Well, once again, good job, everybody. Thank you so much for putting us all out so visually. Thank you. Vice Chair, Ellen. Yeah, once, cheers as to how often this data is updated throughout these charts and dashboards. I can jump on that one, Jessica. They vary. So basically with some of them update per hour, usually we'll put a frequency as we publish this. Some of them don't currently have that. The ones that don't change that often because it's a resource process behind the scenes from an IT standpoint to update those maps because they draw from quite a few databases. So the ones that don't refresh that often because you could see with a lot of these, there's very few applications that are controlling a high unit count. We do those less frequently for that reason. So that might be a weekly or a daily update where when we dealt with the fire rebuild from the Tubbs Fire, that was an hourly update. So it really just depends based on how frequently the data changes. Yeah, and then just real quick to add on to that. As Amy mentioned for the pending development report, that currently is just a static report so that gets updated quarterly. But we hope to be putting that into a dashboard like what we just went over with housing information and downtown information hopefully soon. And so then it will be updated as Gabe mentioned. And I had a follow-up question which is, is there some place to take these numbers that I'm happy that they're being updated so frequently and apply them to hurdles that the city is required to maintain, read the numbers being one of them? Is that tracked? So we utilize this information to report out to the state. The state takes that information once a year. And so that then leads into demonstrating how we're meeting our RENA and then that then feeds into what the city is required or not required to do per state law based on how well we're doing on RENA. Okay, thank you. Are there any other hurdles that besides RENA that these numbers feed into? I can't think of any. I don't know, Amy or Megan. I can't think of any. Thank you. Commissioner Burke. Thank you, Commissioner Tess. Good presentation and come a long ways in terms of presenting information on the city's programs, particularly housing, which is my main interest. One of the questions that I've had and others have had also is when we're reviewing proposals from developers for affordable housing, often it would be very valuable to be able to have a link that goes directly to say a planning commission meeting or a design review board meeting where that project was being discussed so that we as housing authority members could get a better idea about the project and what the issues are and what it looks like and how it accommodates the particular needs of people that are gonna be housed there. So I don't know how widely that would be something that people would want. I suspect it's not a feature that's installed currently, but is that something that might be possible in the future? Yes, absolutely. And those are one of the areas that we really focused on as people wanna get a little deeper than the general description that's provided by the pop-up, how do we do that? We actually have the technological tools. We played around with a lot of these concepts in our downtown map. That does allow access to files that were submitted under planning entitlements. We can add areas where we're including links to just about anything. So if those were planning commission meetings that approved it, that's all. We have that availability in place. It's really just populating those fields and developing the processes in place where we can move the staff hours to think a little differently than we have in the past, which is the more of this outwardly facing technology opposed to inward-facing review. So we're currently at that pivot point, but absolutely we have the tools at our disposal to make that happen. I think what you're seeing here is really the tip of the iceberg and the direction that it's gonna go long-term. And we're using many of these as really pilot programs, but I think feedback like that is incredibly helpful because it's a simple ad that I didn't think about when we did the downtown map. So I really appreciate that. Well, thank you very much. It provides a person like myself in a position of looking at funding a project that gives me a much better idea about what is, it provides a vision of that project that you're being asked to fund. So thank you. And I hope that that can be done. But I also realize that you've come a long ways. But it's good to hear that it's technologically possible. Thank you. Do I have any other comments or questions from either staff or commissioners? Seeing none. Thank you, everyone, for your presentation. That was wonderful. I'm now opening public comments on this item number 4.1. We are taking public comments. If you wish to make a comment via Zoom, please raise your hand. If you're dialing in via telephone, please dial star nine to raise your hand. You will have three minutes. Chair Testa, see no hands raised at this time. Thank you. Item number five is study session and there is nothing on this item for our study session today. Item number six, public comments on non-agenda items. We are now taking public comments on item number six. This is the time when any person may address the Housing Authority on matters not listed on this agenda, but which are within the subject matter jurisdiction of the Housing Authority. If you wish to make a comment via Zoom, please raise your hand. And if you were dialing in via telephone, please dial star nine to raise your hand. Chair Testa, see no hands raised at this time. Thank you. Item number seven, approval of minutes. We have the minutes for September 26th, 2022. Any changes, suggestions, anything? Commissioner Burke, you have your hand. Yeah, Commissioner Tess, thank you. I just wanted to ask if the minutes for items 12.1 reflect that I abstained. It's kind of obvious because at the beginning it shows that I'm gonna abstain and then it shows the six votes in favor with mine not showing. But I think in the past, we've added the abstentions as well as the yeas and the nays. So if that could be added, I'd appreciate it. Commissioner Burke on page four out of five of the minutes, it's you have to scroll down and it kind of hangs between- Oh, is that- Yeah, so it is reflected. That's what I see, it went on the next page and I didn't pick it up. I see it now. Yeah, thank you. Thanks for pointing that out, nevermind. Thank you. So since there are no changes, this will be approved as prepared. Item number eight, chairperson, commissioner reports. How many reports from commissioners? I don't see any. I don't see any hands raised. Okay, we will move on then to item number nine, committee reports, nominating committee. Chair Testa, thank you. And you appointed commissioner Downey and myself to be on the nominating committee. We spent a lot of time on that and we finally concluded after a number of conversations that given that the city council will be reviewing applications and making a decision to fill three housing authority board positions due to expire at the end of the year, that we were recommending that the action to appoint officers be postponed and that they be postponed until a decision has been made and any commissioners that are chosen by this city council until that's made. And in the interim, that a chair test and a continuous chair and vice chair on continuous vice chair in the interim. So typically I think what happens is the city council tries to do the interviews and depending upon their schedule, we'll decide on the vacancies that are about to come forward by the end of the year. And then, so it probably means that by the end of the year, first part of next year, the housing authority would be in a better position to appoint, to have a nominating committee and make appointments to the chair and vice chair. So that would be our recommendation. Just leave things as are currently. Thank you. Vice chair on, are you on board with that? Yes, that's fine, thank you. Yes, thank you. Questions from other commissioners at the moment? Seeing none, we'll move forward and we are now taking public comments on item 9.1. If you wish to make a comment via Zoom, please raise your hand. If you're dialing in via telephone, please dial star nine to raise your hand. You will have three minutes. Chair Tess does see no hands raised at this time. Thank you. Item number 10, executive director reports, communication items, Megan Basinger. Good afternoon, Housing Authority commissioners. A touch for your reference is the monthly update to our affordable housing pipeline. You'll notice there's a little bit of movement within the construction categories, but coming up in the next month, we should have some significant movement on this pipeline, which leads me into my, just overall update. Tomorrow will be the grand opening celebration for the Linda Tunis senior apartments. And so this will move that project from under construction to incompletion. That's 26 units of senior affordable housing in Rinkin Valley that you have provided financial assistance to, as well as some project-based vouchers. So our staff in the rental assistance division is busy pulling people off of the waiting list and getting them leased up in those units, as well as the trust staff is busy working on tenant income certifications. We also anticipate orchard comments on your incompletion in the next month or so, which will be another 45 units of affordable housing. This is on Boyd Street in the Roseland area of Santa Rosa. And then the Honia Glen is under construction. And that is a project that the housing authorities provided assistance to. And that is 99 units in Rinkin Valley at the corner of Highway 12 in Calistoga Road. So we're making significant progress in adding affordable units to the city's housing portfolio. And then finally, I just wanna provide you an update on an exciting site visit we had last week. Members of the Federal Reserve, the CEO from San Francisco came to visit the journey's end site and see the efforts that were undertaken with CDBGDR funding, project-based vouchers and tax credits. And then also to talk about needs for our community and how we have navigated through disaster recovery. So it was a great opportunity to get to meet her Mary Daly, as well as a member of the Federal Reserve Board of Commissioners and to talk through the needs of Santa Rosa. That concludes my presentation. I'd be happy to answer any questions. Thank you, Megan. Vice Chair Owen. Megan, this is a great report. But unless there's a local contribution, well, maybe I'm mistaken on this. There's a project near Target in Southeast Santa Rosa. That's rather large. Which project is that? So those projects are not reflected on here. There are two projects actually that are under construction. Both of them are fairly sizable. The Housing Authority does not have any funds in them or project-based vouchers. They were funded through CalHFA. We do have some density bonus units on them. I think about 33 units in each of the 150 plus unit complexes. So those will be subject to some compliance monitoring when they're completed. But we're not tracking those in our pipeline at this point in time. Are those 100% affordable projects? They are. Is there a way those can be added? Because I think it's important to show whether the city provided project-based vouchers or density bonus or any local contribution that there are other units coming in that because I believe those are 9% tax credit deals, those two properties. I don't know off the top of my head, but we could certainly look into it. And those are projects that we can add to the pipeline I'm going for. Okay. And I'll leave this up to you, but as I look at the development costs in the column on the number of units, the cost per unit varies wildly. The one that popped out to me is midpens on Santa Rosa Avenue at almost a million dollars a project. It's in the high 900s. Do you ever get, I know when affordable housing units are talked about in Santa Rosa or other jurisdictions in general, just the amount of cost associated per unit. Just an opinion don't need to actually do this, but I think it'd be important to show what the cost per unit is for each one of these projects. You can do the math, but if it's there in front of somebody, you can look at and actually understand what's going on on a cost per unit basis. We could certainly squeeze that into the table. It's just one of my concerns too, is the more that we put onto this monthly update, the more difficult it becomes to read. And then also as we add additional projects like the Juana Springs and Santa Rosa Avenue sites, we won't have the same level of detail. When we are providing financial assistance, we have... You have that data, yeah. Data, yes. So there will be less data available on some projects, but we can certainly count those in the mix. But if it is the interest of the housing authority, we could add a column on the cost per unit. Because it's, I think on the earlier point, being adding those units, it's with the amount of CDBGDR, which came through the housing authority at 38 million. And then I think the 9% tax credits, the VADDR pool was almost another 38 million. I don't remember, but a huge influx in the last few years because of disaster recovery and showing the benefits of that and how it's flowing for the number of units coming in deemed affordable. I think it's really important for ourselves and for council and other people looking in. So thank you. You're welcome. Mr. Downey. Thank you. This might be a question for Jeff for change of homelessness and housing. But from what I was hearing, if there is adequate homes or shelters for people who have no homes and shelters, then they don't have a right to reside on the side of the street or under a bridge. Is that true? Or is it a matter of we don't have enough adequate spaces for people who are chronically homeless? So there is some case law. I'm not intimately familiar with, but I know that generally this court decision holds that before a local agency can impose certain requirements they have to provide certain options available for homeless folks. And Megan, I don't know if there's anything you can add to that. I think it kind of goes a little bit beyond the scope of really what's in the realm of the housing authority. And it's more an issue for the city and homeless issues and some pending litigation, frankly, right now. Yeah, I would just say just to briefly respond to your question when the city undertakes efforts to resolve homeless encampments where we have a certain number of individuals who are occupying a space prior to asking them to relocate the city does work with their outreach partners, which is Catholic Charity's host team to engage those individuals in services and offer them shelter beds. So we do need to verify we have adequate shelter beds available if they are interested in taking those shelter beds. So that is always offered when individuals are asked to leave encampments sites. I think you Megan and Jeff. We'll move on then to item number 10.1. We are now taking public comments. If you wish to make a comment via Zoom, please raise your hand. If you were dialing in via telephone, please dial star nine to raise your hand. You will have three minutes. Sure, Tessa, no hands raised at this time. Thank you. Item number 11 is consent items. When consent items are brought before the housing authority, it is not required that staff provide presentations to the commissioners. If there are no objections with a motion and second, the housing authority commissioners can take a single vote on all consent items on this agenda after public comments. Seeing none, we'll move forward. On item 11.1, we are now taking public comments. If you wish to make a comment via Zoom, please raise your hand. If you're dialing in via telephone, please dial star nine to raise your hand. You will have three minutes. Chair Tessa, no hands raised at this time. Thank you. Commissions, is there a motion to be put forward? That's a question. I'll move to approve the resolution and authorization as they execute the state of, we're looking at 11.1. Authorizations execute the state of California Department of General Services standard agreement with Employment Development Department to obtain income verifications for rental assistance program participants and waive the reading of the text. We have a second. All second. Thank you, Commissioner Burke. Can we go to a formal vote now, please? Yes, we can. So at this point, we will take a vote on the consent items. We'll start with the mover and we'll start with Vice Chair Owen. Aye. And move on to the second, Commissioner Burke. Aye. And then Commissioner Rawhouser. Aye. Commissioner McWhorter. Commissioner McWhorter, your vote. May have signed off. I don't see him on the participant list. He is, he had some kind of difficulties. He's coming back in to the meeting. I think he's back in. All right, sir. Okay. Thank you. Commissioner Downey, chair test. Aye. Okay. Excuse me, that motion passes with six ayes with Commissioner LaPenna absent. Thank you. Item number 12 is report items. The report 12.1 is modification of loan 9021. Dash 0274. Dash 93 and interest forgiveness for the youth center shelter, excuse me, located 1243 Ripley Street. Mark Hughes. Good afternoon, commissioners. My name is Mark Hughes. I am a program specialist in the housing trust. The item that we have before you guys today is a modification of a loan and forgiveness of interest for the youth shelter operated by SAY at 1243 Ripley Street. Next slide, please. So in 1992, the housing authority approved a loan to SAY for acquisition of 1243 Ripley Street for use as a youth shelter. The current loan terms are a $47,000 principle with a 3% simple interest and a 30-year term that's set to expire on August 4th of 2023. Being that the site is a shelter, it does not generate program income. It is funded through grants and donations. For the past 29 years, the site has been utilized as a low barrier youth shelter and drop-in center. It's open 24 hours a day and 365 days a year. Shelter services are provided to runaway youth between the ages of 12 to 17 and 18-year-olds who are also still enrolled in high school. And drop-in services are available for youth between the ages of 12 to 24. Next slide, please. The borrower has requested a loan modification and forgiveness of interest accrued to date. Their request is a term extension of the note for 15 years to become due on August 4th of 2038. Forgiveness of approximately $41,229.95 of accrued interest to date. Modification of the interest rate to 0% and the ability to prepay the loan. As mentioned previously, since the property is a shelter, it does not provide any income from providing services and all operational costs are funded through grants and donations. Next slide, please. The borrower intends to continue operation of the site as a six-bed youth shelter. The current loan term is set to expire August 4th of 2023. The regulatory agreement restricts the use of the property to a operation of a six-bed youth shelter, and that would be through the end of the loan term. As a youth shelter, participants do not pay rent and project does not produce income. After maturity of the 30-year loan term, SAY may request that the housing authority modify or release the use restrictions if continued use of the property becomes infeasible. Next slide, please. To ensure retention of this youth shelter, approval of the loan modification and interest forgiveness would coincide with an extension of the term of the regulatory agreement by 15 years. Next slide, please. It is recommended by the Housing and Community Services Department that the housing authority, by resolution, approve a modification of the $47,000 loan with individuals now, DBA, social advocates for youth, for acquisition of 1243 Ripley Street to, one, extend the loan payment date 15 years to become due August 4th of 2038, to forgive all interest accrued from August 4th, 1993, through October 24th, 2022, and the approximate amount of $41,229.95, the final amount to be determined as of the date of the loan modification, three, modify the interest rate for future accruals to 0%, and four, extend the term of the regulatory agreement by 15 years to be concurrent with the loan repayment date to ensure continued community access to the sixth bed youth shelter. Next slide, please. And I'd be happy to answer any questions any of the commissioners might have. Thank you, Mark. You're welcome. Commissioner Burke. Thank you, Commissioner Chiritest. Mark, you know, I have some concerns. I think SAY does a great job, and I think that the purpose that they serve is absolutely critical to the community. But with that said, I have concerns about setting a precedent, and I'm essentially the 3% zero, never said it's a 3% loan, but with no payments required. So it doesn't impose a burden that I'm aware of anyway on the particular project. And the concept, when the loans were first initiated, there are quite a few of them now, was to basically have the group that received the loan provide the services needed with no impact on their budget. But then if the group decided at some point in time that they were going to sell the property and do something else with it, then at that time, it was determined that it was important to have the funds come back to the housing authority with the interest, which is very modest, to then put back into other developments. I don't think of another scenario where SAY, you know, might sell this property, make the proceeds from the property, whatever they might be, would then be determined as to going into maybe a larger development with the housing authority then being in the position of having the funds and deciding how that particular project compares to other competing projects. In other words, it's a situation where if the use ends, well, I'm gonna use another scenario. If the use ends and the nonprofit goes out of existence and the proceeds from the sale are there, it seems only right that the housing authority should have its original amount back plus a reasonable interest that has accrued over time. So that's the intent of the program. And I think that if we would go back, and I don't know, Mark, if you've had any ability to maybe do any research, but I think there was a project before, it was probably, I don't know, I'm gonna guess five years ago, six years ago, maybe longer. It was a women's shelter in Rinkin Valley, and they had a similar request. And the housing authority, I believe, concluded that no, the agreement was in place. Its intent was to support without any burden for as long as that intent was being served. But if there was a sale, then the funds would come back. And so I think the housing authority probably rejected that request to remove the loan with the 3%, I'm not sure, maybe Megan remembers, or maybe Commissioner Downey remembers. I think Commissioner Downey, you and I were probably the only two commissioners that were on the housing authority at that time. So anyway, Mark, were those things being considered in terms of the relationship to pass decisions on the housing authority and to its impact on other groups that have loans with the housing authority now? And will this set a precedent? I can certainly look into your, the point you raised about the women's shelter. I'm gonna step in here. Hi, Nicole Del Parantino, Housing and Community Services Manager. Thanks, Mark. To answer your question, Commissioner Burke, this loan, as it's currently written, the note becomes due in August of 2023 and the term of the regulatory agreement also ends in 2023 with the end date of the note. So in order to retain these six shelter beds in the service and the community, we would be pushing, we would extend the term of the loan by 15 years with the regulatory agreement to ensure that we have those continued services in the community. Otherwise, the regulatory agreement has currently written the term ends next year as well. The point that you raised about the interest, being this is a shelter and it's not going to have the ability to repay because there is no program income generated from the site. We're not charging or say it's not charging rent for any of the use of the site to the team participants. So that is the thought process behind the recommendation to forgive the accrued interest to date and also to ensure that we have the extra 15 years of the service and the community. Otherwise, if we do not act on it, the regulatory agreement ends next year. So Nicole, the regulatory agreement with us or with the state of California? We hold the regulatory agreement. So couldn't the regulatory agreement be extended for 30 years and with the same other terms for many of the same? We could in order to ensure the continues of the site, staff determined 15 years was a good increment so that we can maintain the compliance of the property and also monitor it as the site gets older. We didn't perform a site inspection on it as part of this request and it is currently in good condition and we would want to make sure that that continues. So we chose a smaller term to extend it by and by all means in 15 years, we could do the same thing again. Yeah, I mean, I'm totally in favor personally of extending the agreement and but I am concerned about if there is a sale and there's proceeds from the sale, having the housing authority have a return on its loan with the interest identical to the other agreements that we have with other non-profits in similar situations. If I could interject as well, the question you raised about women's recovery services, they ultimately, that was a women's shelter. They ultimately ended up selling the property and repaying the loan. So we did lose that particular facility. And if I am recalling sites correctly, the only other shelter related loan that we have is for the Sloan House, which is a women's shelter that is operated by community action partnership. So this is just one of a couple of very discreet loans that go to shelter and not to rental units that are generating rental income. So if that's true, I think I'd rather, if these are a very unique subset of our total loan portfolio, why don't we make a change for anybody in that group, which sounds like it includes only one other applicant or I, well, okay, I mean, the different situations, that may be a little complex, but it seems, I would think if I were them, that other group I'd come in and I'd say, okay, I'd like that same accommodation. And why would we not do that, I guess? And that certainly could be an item we consider in the nearest future. The other site is located on Lee's land. It has some other factors that we will have to evaluate in the coming year. So it certainly could be before the housing authority. I mean, your point. So what you're saying is that this would only set a precedent in respect to one other project. Correct. I'm concerned about setting a precedent, first of all. This is limited to shelter sites. So we are not looking at making similar changes to rental property where they are generating income. So all the other sites we have are rental units that are generating monthly income by tenant paid rents. These individuals are shelter clients or residents who are transitory and SAY is not receiving rent for their occupancy of the site. Okay, so I guess the one final question is, if we were to have a nonprofit, one of the two apparently that have loans still in these circumstances where there's no income, and they decide they're gonna disband and they're gonna sell their property. The proceeds from that sale in this particular case would be to receive the principal of the loan, but with no interest. Is that correct? And the housing authority still does have the ultimate approval for any sales or transfers while we have the regulatory agreement on the property in effect. The regulatory agreement would make a difference. So let's go to 15 years, regulatory's gone, agreement's gone, they disband and they decide that, yeah, they decide they're no longer gonna use this property for the same purposes and they sell. And what happens then is just the principal comes back to the housing authority. Right, the principal amount of $47,000 would be a return to the housing authority from the sale proceeds. And so there'd be no interest at all, it would just be, it would be, okay. Yeah, I'm not sure that I'm comfortable with that because it seems like a fair kind of splitting of the proceeds with the loan, the principal and the accrued interest since properties have appreciated considerably since the loan was made. So I'm still not comfortable with it. So that's my position, but thank you, but I appreciate it, it's not that I don't support SAY development and on Ripley Street, I remember going to the opening and it's serving a very important purpose. It's just about taking funds that are available to the housing authority and returning those to as agreed possible and then putting those back into projects that are worthy and it may even be another SAY project that's worthy that we decided to receive the funds, I don't know. But anyway, that's my, those are my questions. I thank you very much for responding. That's Jeff Burke. Thank you, if I may. So Commissioner Burke, Steph anticipated the concern about the precedent and in the resolution they try to address it by saying that it is operating a shelter and that it doesn't generate any program income to repay the loan. So that was something that was thought of at the time and we were trying to address it in the documentation. Yeah, thank you for that. I think if I were a owner of a large multifamily development, I would say that the income received would be negligible and I still would like relief from the interest portion. I could see an argument being made on I don't know exactly what it would look like but I'm not, I'm sure that they could make a similar argument. And by precedent, by the way, there's no legal precedent. It's just a policy question for the commission and somebody could say, I want the same thing and I don't think it makes the housing authority vulnerable to a lawsuit but I appreciate the policy concern. Yeah, it would be, it would feel unfair to treat different applicants differently. Maybe there would be reasons for it but anyway, thank you for that. Vice-Chair Owen. This couple of questions has, does this property require and this is probably targeted to maybe Nicole or Megan, an inspection of some SOAR? I am not sure I would have to look at the terms of the regulatory agreement. We did do a site visit before we brought the item. So our compliance technician accompanied me out to the site and we did do a housing quality, an HQS inspection which is the same standards that we use for the rest of our compliance properties as well as what the rental assistance team uses for their section eight inspections. And just to piggyback off that, it does not require annual inspections like a lot of our units, especially the ones that are federally funded but we did perform that site inspections part of this request. This is a question for Jeff Burke. I understand the question, not having done annually, can we set up the new regulatory agreement? A couple of things here. First, on the note that there's a due on sale clause in the note meaning that they ever sell the property that the amount becomes payable at the 0% interest. So that's the trigger, how that gets done. I assume there's a deed of trust on it or is there just a regulatory, there's a deed of trust. So the deed of trust should have a due on sale clause. Also on the regulatory agreement, that is senior to any, if they would ever sell the property, I assume the regulatory agreement is senior on title meaning that anybody buying the property would be subject to that regulatory agreement in the same use that they have to be in place. So Nicole's nodding yes, so thank you. That's important. But I would like to have in the regulatory agreement that the housing authority has the option to inspect the property when it deems necessary with standard language that allows it to give notice 72 hours, whatever the standard is to the tenant, the own property owner just to make sure that, and again, this is not any reflection in SAY, they do a fabulous job, they're a great organization that the property is maintained in a manner that the city would deem acceptable. And I'll let city attorney office define that. That can be added and we can modify or amend the proposed resolution. I just think it's important to direct staff. Yeah, that the city has the ability to inspect the property with proper notice and just in case something, and again, if they sell the property and some other organization comes in there, it may not be SAY. And we just wanna make sure that the housing authority who does have a new interest in the property has the ability to make sure that if it was a banking situation, it's collateral, but in the housing authority, it's the use of the property is done in a fashion and the property's kept up the way. We would want people to be able to live in the shelter. And commissioner Owen in response to one of your points, I just pulled up the note for the site and this is an older note, it's from 1993. So we could definitely update the language in here, but there is a provision about transfers of the property and a sale would be a transfer in which case beneficiary, which is us would have the right to call the loan due. So your request to have a due upon sale is currently in there and just some language that is a little bit older, but that would remain. It's still suffice. And Jeff Burke can answer that question. It sounds like it's in there, so that's good. But I think it's also important that the city have the ability to inspect with proper notice and cause. Thank you. Thank you, Vice Chair. Commissioner Downey. Thank you. I'm not gonna try and reword with commissioner Burke and commissioner Owen have just said, what I am wondering is since periodically we come up with very important organizations like this we're seeking forgiveness. Is there a way to draft a policy? So going forward, if there's another organization in our community who seeks to have some of their financial responsibilities which we're given that we have some sort of policy in place to address that. It seems like we're still doing this case by case. And again, this is not against SAY or women's recovery. It would just be nice to get some sort of unanimous understanding going forward of what we're gonna do in situations like this. Yeah, we definitely do appreciate the concern of the regulatory agreements and the loan agreements tend to be different for each project. I'm gonna, I think maybe pass this on to Nicole to address the policy concern. Yeah, and so we still are managing these on a case by case basis because like Megan mentioned earlier they are all the properties and the loans that we have are unique and the underwriting that is negotiated between the developer and staff at the time that we are awarding the loans can vary based on the requirements of senior lenders and the site control among other things. So I would be concerned that a policy would not encapsulate everything for our very specific individual loans and that we would be coming to you with one alfes, nonetheless. And to tag on to that and say, by bringing these to you it allows us to discuss the nuances of the specific requests like we're doing right now. So we're able to discuss that this is a request for a new shelter and what the factors are that would help you make that decision. So I would, my preference would be to address these on a case by case basis. The majority of our loans are for multifamily or special needs development and those are structured as loans and they wouldn't fall within the same criteria that we're looking at tonight. Commissioner Burke. Yeah, so if a nonprofit were to come before the housing authority next week, would we consider making a zero percent loan? Aren't all of our loans three percent? I guess that's a question. Not all of them. We do have some one offs. We have some loans that are one percent. We have at least one loan that's at four percent. So there is some variation. The majority of our loans are set at three percent and the current time is 55 years. I don't recall that we made loans other than three percent but we do have those. So interesting. Okay, thank you. Thank you. Jeff Burke, my question is given that the regulatory agreement that's in place now and has the ability upon sale to collect interest and principle. What we have before us in terms of a resolution is it acceptable on that basis or do we need to make an amendment? Well, one of the issues that I think housing authority may want addressed and the commissioner Burke raised or maybe it was commissioner Owen is to include a provision that allows staff to inspect the property with reasonable notice. So that can be added as I'm looking at the proposed resolution. There are four separate items there and we could just add that as a number of five. Thank you. Any further questions from commissioners? I'll now open this up to public comment. Item number 12.1. If you wish to make a comment via zoom, please raise your hand. If you were dialing in via telephone, please dial star nine to raise your hand. You will have three minutes. Chair Tess, I see no hands raised at this time. Thank you. Is there someone who would like to make a motion on this particular item? And as well, an addendum to it or a revision to it. Chair Tess also move as recommended by housing and community services department of the Housing Authority by resolution to approve a modification of the $47,000 loan with individuals now DBA social advocates for youth or acquisition of the 1243 Ripley street to one extend the loan payoff date 15 years to become due August 4th, 2038. Two, forgive all interest accrue from August 4th, 1993 through October 24th, 2022, the approximate amount of $41,229.95. I don't mind to be termed as the date of the modification. Three, modify the interest rate from future accruals to 0%. And four, extend the term or the regulatory agreement by 15 years to be concurrent with the loan repayment date to ensure continued community access to the sixth shelter booth, a six bed youth shelter. I would also ask for a amendment to this to include a fifth point, which would be to allow Housing Authority staff to inspect the property when deemed necessary with proper notice. And let staff come up with that language as approved by city attorney office and waive the reading of the text. Although, that was quite a bit of the text already. Thank you, Vice Chair. We have a second. Oh, so good. Thank you, Commissioner Downey. And when we- Do you want to vote? Mm-hmm. We'll now do a vote on this item. We'll start with the mover, Vice Chair Owen. Aye. And next, the second, Commissioner Downey. And then Commissioner Rawhouser. Aye. Commissioner McWhorter. Commissioner Burke. No. Commissioner LaPenna is absent today. And then Chair Test. Aye. Okay. That motion passes with five ayes, one nay, and one commissioner absent. Thank you. Our next item is adjournment. Thank you, everyone, for your comments today. Thank you. Bye-bye. Thank you. Thank you.