 She's been around the banking community and yeah, so that's probably why she had an accident on North Sonoma Mountain Trail He had the helicopter her out and I guess he had been with some She was hiking I mean the trauma, if you have to be that if you'd death her, you'd take me that way But you know it can happen so easy I hike a lot and for a while I was really still hiking and I said, you know that's kind of every week Thank you, I don't want the library commissioner. Okay. Thank you Good afternoon everybody. I'd like to call to order the housing authority special notice meeting notice and agenda June 17 2019 and we will start with roll call, please chair Burke here Commissioner Downey Vice chair Johnson Morgan here Commissioner Olson is absent commissioner Owen here and Commissioner cast here. Thank you. Let the record reflect that all members are present with the exception of commissioner Olson. Thank you, sir So let's make it a good day for housing. Why not? the The first well item number three is statement of Abstention for any member of the housing authority that needs to abstain from any item on the agenda Indicate that now I don't see anybody needing to say no, I need to abstain on We funny on the item number Yes, 11.2 Okay, so commissioner on will be abstaining from item 11.2 Don't see any other needs for abstention So that brings us to the study session and Purpose of this will be to talk about the fiscal year 2019-2020 notice of funding availability for affordable housing and request for proposals for project-based vouchers Megan are you gonna start off? I am good afternoon. I'm Megan Bassinger housing and community services manager so before the housing authority this afternoon is an item to get your direction and input on the 2019-2020 notice of funding availability and also the concept of incorporating the request for proposals for future project-based vouchers The housing senator's a housing trust is looking to continue to align its funding opportunities as well as the project-based voucher resource With funding opportunities that are available from the state and federal government We are anticipating later this summer to have 2.6 million available in CDBG home and then some remaining local funds This is in addition to the focus NOFA that we will be hearing later this afternoon So those funds will be hopefully committed at the end of this meeting and this is the remainder of our 1920 production budget So as I mentioned, we are looking to position projects for multifamily housing program Which is an HCD funding source that had previously been identified as opening in spring and now HCD is indicating It will be sometime during the summer. So this is continuing to Be out there maybe late June, but more than likely July at this point 9% tax credits, which the first round will be in February 2020 for the calendar year 2020 And then also 4% tax credits and bonds, which is an over-the-counter process The priorities that we are looking for the housing authority to support our new construction, which can include the acquisition of land Rehabilitation of existing units, which like to apologize. This wasn't in the original packet and was an oversight on my parts We've added it to the PowerPoint and want to highlight that this is a need that has been identified by some of our Existing borrowers and it's something that we would encourage the housing authority to support is eligible for federal funding And it will continue to help our affordable housing portfolio as well as has the potential to Extend some of the life of our regulatory agreements We also are looking for our funds to target residents that are large families Seniors workforce housing people experiencing homelessness and then also special needs So as we continue to be priorities that we are looking to advance Some of the priorities that we have stated in the past and will continue to support are That projects are looking for an upcoming funding round So we'd like to see our funds be used as quickly as possible to bring units to fruition as soon as we can and With that identify a construction start or rehab date within 12 months of the commitment We are looking for a deeper affordability, which are units of 30 and 50 percent We do continue to see units at 60, but we'd like to see more at 30 and 50 if possible Projects that have other civic benefits and whether that be close proximity to transit or provide some aspect that Would be beneficial to the community as a whole and then also projects that are located in the station area plans Which are the railroad square area and then the Codding Town station area priority development areas or opportunity zones The feasibility of the project which as I mentioned that they can start within 12 months That went there if they're pursuing 9% tax credits that through their self-scoring their highly competitive project That the developer has adequate qualifications and capacity to take on the project and carry it out within the identified time frame and That they're able to maximize other funding sources which include the project based vouchers So the benefit that staff sees of combining the notice of funding availability with the RFP is that would allow developers to submit one application it would align the Financing for the project and we'd be able to see the project in its entirety instead of having a piecemeal process The housing authority would also have a better understanding of all the components that are going into the financing and take one action we're recommending that the Chair appoint a subcommittee we don't need to do that today, but if we could do it by August that would be fantastic and And this would be consistent with previous nofas in the RFP where we have three housing authority commissioners who are reviewing the applications with staff and Working on a recommendation that would come before the full housing authority and then finally we're seeking your direction So whether or not you support Combining the notice of funding availability with an RFP for project based vouchers And if you are receptive to having an open nofa and RFP process So that would mean that we would open it late July early August consistent with prior years and The concept would be that within the first 30 days we receive applications and then we start to review them We still would leave the the nofa and RFP open to allow additional applications to come in if Following our review of those applications. We have a project or projects that would exhaust our funds We would close the process notify all the applicants and then bring that to the housing authority That would be done through an action of the housing authority at the time That staff felt it was time to close the nofa So we could we could do either we could have an action of the housing authority Or if when the subcommittee meets the ad hoc committee meets and we reuse the project We can get direction and provide notifications, so there would be that could be delegated to the committees Which are correct, but there would be notification to those on our nofa mailing list that the nofa has closed And letting them know that future funding opportunities will be presented and That we've exhausted this resource at the time So this concludes my presentation I'm happy to answer any questions and then Rebecca Lane housing manager who represents the section 8 program is here as well Chair Burke. I'm sorry. Can you make sure to use your microphone as well for the record? So we will have questions from the housing authority first and then followed up We have three cards. I think it is for members of the public on this item And so we'll hear from them and then we can proceed to deliberate as a board Give give our feelings about the Direction the consensus of moving forward with the staff's recommendation Yes So my question is Given the categories that you outlined a couple of them that caught my ear Or persons who are experiencing Homelessness and persons with special needs So a person is experiencing homelessness and they're not able to keep themselves How is what they then fall into a category of a person with a special need That might be eligible for some extra Resource is to help keep them housed I think they could fall into both categories oftentimes the special needs are housing units or Facilities that have multiple bedrooms that serve mentally ill populations We do have specific Projects and facilities for those that are homeless that do provide additional supportive services Yes How much will this application process mirror a teacock application so that the Developer doing this would have basically one form that they'd be working on So in the focus NOFA, which you'll be reviewing The housing authority will be reviewing later this afternoon We asked them to we asked the applicants to submit the universal application along with it So that we're able to get the information they would provide to either HCD or teacock But we do ask for some supplemental information So we we're trying to align our applications as much as possible, but there are additional items that we will request So we have an application form, but in addition to that we will ask for the application They'd be submitting to the other agencies Is it planned that the criteria for evaluation would be similar to a teacock scoring? We will take that into consideration, but we also incorporate the priorities that were identified in the The presentation so those would be Readiness the population served and items that are specific to our community that we would like to advance through our our funds Thank you commissioner test Having been on the ad hoc Subcommittee, I really think this is a good idea Some of the things some of the projects we've been looking at we had What we thought was Full information before making a decision On a project and it turns out we really didn't have enough information So and then just simplifying the process. I think is a great idea and Those are my comments. Thanks and the questions from members of this board I I do have one if In my experience, it's always a good idea to try to have housing scattered throughout the community and there's these priorities There's nothing that would prohibit somebody coming in from outside of these areas certainly with a proposal, but they wouldn't necessarily be ranked as highly as Projects that were within these areas. Is that correct? I wouldn't necessarily said that we wouldn't rank them higher The downtown and station area plan and priority development areas are certainly a priority but if they were to bring in another site that had that was ready sooner that had Financing identified. I think that those would outweigh a location those could outweigh location So it would depend on the project Again, I'm gonna continue to be an advocate for trying to disperse housing throughout the community as much as we can and define ways to Make that more attractive to development developers who are submitting applications And then maybe we'll get some of this with a public comment, but have you had any input from potential applicants on the process that's being proposed at this point We've not received input on the open process. We did receive several comments in my Invertent Inclusion of rehab so that is certainly an interest of some of our developer applicants But I have not received comments on the benefits or disadvantages of having an open product of Not having a hard close to the NOFA So unless there's any other questions from members of the Housing Authority Commission, I'm going to go to the Speaker cards and the first one I I Paul from the community action partnership of Sonoma County See is this working? Okay. It is. Yes. Um, my name is Paul Carroll. I'm the new housing manager for community action partnership of Sonoma County and We have Actually four different housing sites one is Sloan house. It's a women's and women with children's shelter The other is Harold's home, which is a transitional shelter for women and women with children and Then two apartment complexes one to Nate unit Complex on Earl Street. The other is a ten-unit complex on Aston Avenue We The rents are all relatively set at various levels and what we've found is that Over the years the big-ticket items like roofs and other things are very hard to address and we want to preserve this housing as affordable for as long as possible and We actually approached the city and asked them about a rehab loan to do some of the necessary work To ensure that these properties continue in the the same vein that they maintain their affordability and That we can continue to run the programs That we currently are doing The one project we really don't need any money to address is Sloan house but Harold's home and both Earl Street and Asked and need just a bit of work And so we are hopeful that you will support using some of these funds for rental rehab. Thank you well Then we have the next person who wishes to speak is Wilson. Is it Vang? Wilson Yeah, thank you everyone. Good afternoon council members. My name is Wilson Vang Today I am here on behalf of Eden housing ink to express our strong support for the proposed joint NOFA for affordable housing Funding and RFP for project-based vouchers Eden housing has been acquiring and building and maintaining affordable housing in California for the past 51 years with a long presence in Sonoma County In Santa Rosa quail run upon quail run apartment, which is 200 units and don't you know, which is 206 units where we serve families in need of affordable homes In partnership with the city of Santa Rosa and with the tenant-based vouchers of each of the property We are proud to be able to serve families with the highest needs who pay no more than 30% of their annual incomes for a safe home Six years ago Eden acquired don't you know and quail run with its from its previous owners And we have been working diligently since then to bring these two properties up to the higher standards of At Eden's in accordance with the rest of our portfolio. We strive not only to build a choir and maintain but to deliver more affordable housing and To deliver more for the housing and restore our property So they continue to look as they do on day one with existing properties such as quail run and don't you know Rehabilitation work is essential to our mission in providing a safe home for the people of Santa Rosa We have to help us manage our operating and maintenance costs, which can get higher as our properties age We have our essential and helping us maintain permanent affordability with the support We hope to request through this joint NOFA and RFP. We can make sure that the residents we serve today have homes They can take pride in Thank you to the council for having me today and for your consideration for the release of this upcoming joint NOFA and RP We at Eden housing ink look forward to continue our long partnership with the city of San Rosa. Thank you Thank you The next speaker I have a card from is Riley Wisenborn Good afternoon Riley Wisenborn mid-pen housing just wanted on behalf of mid-pen housing express our support for the Combined NOFA process in that rolling It definitely streams light stream stream lines and it makes it easier for us developers putting in applications So we're really supportive of that our only concern with the new priorities is specific to the The 12 month readiness for construction Requirement or not requirement, but I'm prioritizing that aspect of a project. It feels like it can preclude requests for acquisition or for pre-development funds if If the focus is so solely on meeting that 12 month project or construction readiness requirement So we just ask that you take a look at that and think about how requests coming in for acquisition and pre-developed funds Might fold into that because that's a huge aspect of local money For our projects to get them going. Thank you very much Thank you, and the last card that I have is from Scott Johnson from EAH Scott Good afternoon Scott Johnson EAH director of business development. I Just wanted to echo the the voices and support of the open NOFA and to encourage the The the committee the the housing authority to support staff's recommendation Also wanted to echo Riley's comments regarding it We can definitely appreciate the need to get bricks and mortar in the ground and so in Supporting Riley's comments mid pens comments regarding Use of funds for acquisition. EAH is in the process as we speak of Rainford Several initiatives in in the city of Santa Rosa that don't quite meet as yet the 12 month criteria And Those are initiatives that would have the potential to advance more expeditiously If there was flexibility In that regards, but staff has brought forward a great Leveraging tool for the city and we support it wholeheartedly. Thank you Thank You, Mr. Johnson So we will return to the housing authority for discussion and to get a sense as to Whether or not use we as a board support staff going forward with the NOFA has proposed I'm kind of hearing a Theme which has always been there, but it's probably more pronounced right now and that's it We need new housing. There's a big push by the city council for new housing the fire certainly Exacerbated that problem and made it even more important and then I'm hearing on the other side that it's important to have Money for projects that are in their infancy and need support early on for things like acquisition and pre-planning and For rehabilitating existing housing We all know there's not enough money to do all those things at the same time. So it's going to be a real challenge for us I think that I Don't think that anything that has been suggested is Inconsistent with the NOFA as proposed but you can correct me Megan if I'm wrong on that No, the 12 months is identified as a priority the 12 months certainly would yeah preclude some of them Landbanking or you know pre-developing objectives. Okay. Thank you. That helps certainly if if this iteration of the NOFA didn't yield the results that we wanted our next go-round we can change the priorities and in the way We're looking at the funds. Yeah And I don't I didn't really Hear that we shouldn't Keep the focus on new construction and rehabilitation where it's appropriate either So I'd like to hear other members of the board in terms of their sense about Supporting the proposal as presented or anything that you have questions about or want to make changes. I Do have a question is that we're always focusing on providing units and have the most many units available, but there can be times where as Some of the speakers have stated that the units are not being rehabilitated enough and can fall out of that and overall number How is staff looking at maintaining? Not only rehab units that can add but also construction numbers and the new construction units that could Come in in the project again But the goal being to have the most amount of units always available not just how many new units are being provided and The the other aspect is as Was seen with the city of Healdsburg Putting their money into a project there that Burbank housing was involved in they found that the replacement cost for a project Versus keeping projects in line that may never may not have any D restrictions associated with them, but just by market pressures were already affordable How how is the staff looking at maintaining those types of projects because to put those projects with D Restrictions and to be able to provide money for those from a dollar per unit basis is proving to be less than a new construction cost Which then allows the city to spread those dollars to even more units Those are probably three or four questions I would say we'll start with your last question In terms of preserving units, I think a good example of the housing authority Supporting that would be last fall When the housing authority approved a loan for the acquisition of the Parkway departments in Rankin Valley We were able to Assist in the funding of that through and it was unrestricted but relatively low Rents and burping housing acquired that and kept those tenants in place and we were able to secure 55 years of affordability restrictions for that property at About three and less than three hundred thousand dollars per unit, which is Significantly less than we're seeing it for our new construction costs as we review new applications. We are constantly looking at Comparing the cost that we see between developers Recently completed projects So we're trying to keep our eyes on the market and see that what we are looking to support is consistent with what's out there and that We are not necessarily Funding projects that are with exorbitant construction costs also included in the applications and one of the items that we review is the operating reserve for the project to make sure that the projects have enough money in place at the time of Commencement so that they can support their capital needs throughout the duration things do come up and They'll need to be addressed in some of the other situations that speakers may have referenced But we do try to make sure that they have significant operating reserves Did I answer all your questions? It does and it kind of dovetails into what Commissioner Bertra saying in terms of allocations of Moneys throughout the community in geographic locations. There's only so much land in certain areas to build new and While there's a push to build downtown the rehab opportunities where Places have been parts of the community have been built out When you look at how those can be brought in to be again keep the number of affordable units high or as high as we can keep them The per cost or rehab unit is always going to be less in today's market not always But today's market is showing that it's going to be less per unit cost than new construction So you get more units and they're more widely dispersed because you're rehabbing new scenarios that are already been developed Just statement more than question So I'm looking for a sense of the housing authority board. I I think that on balance The NOFA makes sense I think it's kind of consistent with the community's needs And there is more of an emphasis on Using the money or rapidly if givenly possible and I think that's also consistent with Not only these meeting the needs of the community, but also our funding sources like to see funds used In an efficient rapid manner as much as possible, so there's certain limitations that we have in that respect so anybody I'm not quite sure how to ask this is anybody Have any ideas about changing anything in the NOFA and if not, is there kind of consensus that we move forward lots of head Megan Demonstrates the ability to to maintain the property to be a favorable applicant. Is that correct? So in applications we receive for new construction That is one of the elements we review is that there's an adequate operating reserve or capital replacement So they have funds that they're setting aside to help address those needs in the future, but certainly Things will come up in some of the projects, especially some of the smaller special needs facilities They don't have the necessarily have the resources that they may need for roof replacements or or larger capital items And some of that is attributable to the population they're serving and the rents that they're able to generate for their from their projects so Come back to the housing authority as a means of funding to Procure the funds available to keep Their facility going to serve the populations of people living there So one of the goals of a rehab loan would be to help them address the capital needs but also To potentially extend the term of affordability. So the housing authority would be assuring that that property would remain affordable to To the residents or to a special target population if it was a facility for mentally ill or some other Specific population a rehab loan would assure that that is able to be extended into the future Potentially I'm not hearing Any serious questions about the proposal. I'm hearing some questions involving understanding better the the no finance purpose Can I Get a nod of the head in support or it's not Starting with mr. One watch support the process anything that we can do that makes it more timely to dovetail into Applicants going to state level for the bulk of their funding the better also to the extent that we can have the the application Structure mirror something at the state level to make it more efficient so that there are not conflicting Goals trying to reach from what the city is looking for as well as what the state for sources of funding would be looking for Those can be in alignment. It makes the process that much easier and far more understanding from the applicant standpoint So I think this is a great idea. I support it And I see a nodding to the heads and agreement from staff and I think that's very important that we do Do just what you're saying. That's the line the two processes as much as possible Commissioner Yeah, if it's something that you have any concerns about if not if you have your general support It does have my general support. I think you know, it's something that we should try to see if we can improve the speeds that we're getting Units available and you know if it doesn't work it doesn't work, but I think we should try it Thank you, commissioner test so what I what I heard from the public a couple of times was the tell 12 month concern and What I heard from you Megan is that? Depending upon if it bears out that if we move forward with this and it bears out that Some of the projects or many of the projects need more time than the 12 months that that would be an adjustment that we could discuss and Potentially move in that direction. Is that correct? Correct? I? Like the project as proposed Thank you, commissioner Danny Generally, do you in support of moving forward with an elf as presented by staff? Just one more question if I could It's our mechanism to to disperse New construction so that there's not such high concentrations of Neighborhoods with special populations. I Can partially answer that and that's that you can solicit proposals and Try to enhance the likelihood you're going to get greater distribution, but you are kind of reliant on where Applicants find the property and then bring proposals forward for consideration, but please add to that or No, I'd say that we are Relying on the applicants to to bring for the proposals to us. We certainly encourage them to seek out all areas of the city And one of the the items that will be coming forward in the future And I think you had a preview of it is we do have our Affordable housing maps so we're able to provide a visual representation to where units are and we can provide an easy Way for the the housing authority as well as the public to see where units are located which may help Move some of those those new projects into other areas Okay, it's my sense that There is support from the housing authority to proceed so please proceed I have the obligation of Having a committee appointed and Megan you mentioned the three existing members of the committee and and tell me again What your thought was in that respect is that there was one or that that might be the committee that continues. I'm not sure Sorry, I meant it in the context of we had a committee of three We'd like to have three in the future. It doesn't need to be the same three So that's your so not this necessarily but that's to remember committee so I'm gonna be Reaching out to members of the housing authority and I agree that having three people on that committee is important and So I'll do my best to pull in together and get that information to staff as soon as possible So I think that concludes that particular item and unless there's any other questions So we'll move to thank you very much for your presentation and both you Rebecca and Megan for Pulling this together, and I know a pretty short period of time. So good job Item number five on the agenda is public comment on non agenda matters and See if there's any member of the public that wishes to come forward With comments on items involving non agenda matters. I have no cards And I see nobody coming to the microphone. So I'm going to move on to next item and that would be the approval of the minutes and Let me ask if there are any questions about the minutes as submitted or any suggestions for changes And if not I'm going to suggest that we accept the minutes as presented okay, I'll take that action and then move to the next item which is item seven which is The chairman's commissioners report and I'm going to start off again just by Reiterating the importance of if you haven't done it already sign up and get on the list for the training for preventing sexual harassment and abusive Conduct prevention and then so that's that's one this mandatory and so you really need to make sure you're signed up for that and participate in that I did it. It was well presented Fairly small group interactive and I thought it was done very well, so I encourage you if you haven't done it already Make sure that you do sign up for that. I also attended the Board and commissioners orientation and although I've been around this business for a while It's always good to have a refresher and I found that to be an advantage for me any other Comments from other members of the commission in general at this time Okay, then we will move on to item number eight which would be committee reports I don't think that outside of what we just talked about. There's any committee reports ongoing that need Appropriate for comment so we're at the executive director reports and communications item Thank you chairman Burke there are two items in the executive director communication items so the first is a grouping of the updated income guidelines affordable housing program rents maximum sales price charts and utility allowance that are Usually updated every spring by HUD And then the other is the monthly activities report Happy to respond to any questions on that. I'd like to call your attention to bullet number four, which is the discussion on the request for developer qualifications proposal for the former Bennett Valley senior center and just to share that's in here is that in addition to The committee to review the NOFA we just talked about The chair would be asked to appoint three members of the housing authority To join two members of the city council to help review the responses to that developer solicitation For the purpose of making a recommendation to the council if there's a qualified Developer proposal to move forward with so big step just wanted to share that with you Any idea of timing on that mr. Vine? Yeah, the proposals are now do mid july So we'd be asking the mayor and the chair to appoint a committee at or near that time Thank you questions from members of the commission on any the items under executive director reports communication items So we'll move on then if there aren't any to I was looking at The guidelines, I think it was attachment four under 9.1 or no, I'm sorry attachment three It's the sales price chart Maximum sales price chart. I I don't understand how that that fits into Our overall goal. I don't understand how the prices of a home impact What our rents? Are so if someone could explain that to me, I'll take a quick Attempt at the answer. So it doesn't impact your rents for your rental products But you have some owner occupant Developments under consideration and in the past the most recent example is lantana And so the sales price for lantana would have to match This price chart based on the interest rate I see it It impacts when we have a developer who wants to create a owner a home opportunity home buying opportunity Correct. Okay. All right I was just looking at I'm like how how does it fit into the rest of the scheme of everything? All right. Thank you. Sure We have no consent items. So there's nothing on item 10. So 10.1 is a resolution request to terminate The september 2018 request for proposals rfp for project based vouchers And rebecca We'll be making the staff presentation. I believe did I skip over or something? This is a consent item. So there's no plan presentation unless the commission wanted one Well on the consent item, I don't see anything under consent 10.1 is a consent item. Is that where you're at chairman 10.1 a 10.1. So we're too. Yeah, so we're a 10 Also, that is a consent item. Correct. Okay. I I I misinterpreted the agenda the way I was presented. Okay, so termination of the Request for proposals for project based vouchers, you know It certainly fits right into the previous discussion and there's no need to continue that and it will be refreshed and renewed with the Approach that we just discussed. So unless there's any questions about that then Yes, we would seek a motion and a second supporting the consent item And there is a resolution. So I'll be looking for one of our commissioners to start with by making a motion by Reading the title the resolution waiving the text and then we'll be up for a second I make a motion to request to terminate the september 2018 request for proposals For project based vouchers and I waive reading of the text I'll second that motion. Okay. Thank you. We have a motion. We have a second any further discussion Hearing none roll call, please chair Burke commissioner Downey Vice chair johnson morgan aye commissioner owen Aye commissioner test Aye Let the record reflect that the resolution passes with five i's and one absence Thank you move on then to item 11.1 Which is report fiscal year 2019 2020 housing authority budget adoption And kate I was going to make this staff presentation Thank you chairman Burke. So this is your 1920 budget hearing to consider passing your budget for the next fiscal year Kate and I will be doing the joint presentation. I'll just be covering the first few slides So we start with the housing authorities mission to ensure adequate decent safe and sanitary housing for qualified people Within santa rosa consistent with federal state and local law It's a mission statement the housing authority adopted years ago It helps message that we work within the federal state and local funding sources and all the rules attached to that And from time to time we hear kind of the commission ask about their mission statement And maybe we only read it once a year at budget and it's also in your budget document So as we go through the year if we wanted to refresh this or talk more through it We're happy to do so So a review of the last year's Accomplishments again, there was a 2.4 million loan to acquire parkwood apartments. We converted 56 market rate to affordable There was a 1.3 million loan to land tana village for 48 home ownership developments for households between 80 and 100 percent area meeting income We performed affordability compliance monitoring for over 3 000 units Received additional vash vouchers hud vash veteran vouchers total we now total 414 And we implemented limited preference for disaster affected families as well as homeless to address urgent need for housing That was for your weightless management and for i'm sorry not weightless management But setting aside a certain amount of voucher for that purpose And again achieved the high performing agency award for the 12th consecutive year. So that is Clearly an accomplishment And now we transition over to the number story There were some questions that came from your budget study session last month and kate prepared to walk us through that Yes, good afternoon chair berg vice chair johnson morgan and housing authority commissioners i'm kate gold plan the administrative services officer for the housing and community services department And i'm pleased to present the fiscal year 1920 proposed budget for your approval this afternoon There have been no changes to the budget since you reviewed it in study session on may 20th As i noted then we follow hud regulations specific program and funding mandates and the policy direction you provide throughout the year to formulate the budget By approving this budget you're directing us To expend this money to further the housing authority goals in accordance with federal state and local law At the may 20th study session you directed staff to provide additional information regarding fixed costs Such as salaries benefits and services and supplies for each program area This slide shows those costs for the housing choice voucher rental assistance program 12.9 FTE support that program and fte stands for full-time equivalent employee The increase to the program staff salaries is solely for merit and cost of living increases Which are agreed upon by the city and the employee unions The deputy director and a code enforcement technician charge into the program The deputy director oversees the program and a code enforcement technician performs quality control inspections Their time increased by 0.4 fte and that's the 46 000 you see up there And we believe the fiscal year 2019-20 allocations better represent their actual time spent on program activities Benefits increased throughout the city and department and are reflected here Almost solely to cover unfunded pension liability That amount is determined by the city's finance department and human resources department And in the housing choice voucher program services and supplies decreased to accommodate the increase in salaries benefits and allocated costs While staying within the HUD mandated administrative allowance And this slide shows fixed costs for the housing trust 6.4 fte support this program This includes the addition of 0.4 fte of an administrative technician who was previously budgeted within the administration division Over the past year we found that this position was performing significant work for the housing trust including the affordable housing mapping and was Minimal work for the housing choice voucher program. So to fairly charge each program We moved that position out of administration and into the housing trust For program staff salaries a portion of that increase is attributed to merit and cost of living salary increases agreed upon by the city and employee unions And additionally the fiscal year 19-20 budget allows for the use of federal project administration Or the use of local funds depending on the demand for staff's work So explained in the staff report federal project admin can only be used for specific home and cdbg funded projects If there aren't any of those projects to which staff can charge time or the projects require Less time than we anticipated when we're preparing the budget Local funds have to be used to cover those salaries benefits and allocated costs Which causes the local funds to go over budget and that is occurring right now at the end of fiscal year 18 19 So rather to avoid that and rather than assuming local funds will go over budget This 19-20 budget allows for the use of either federal project administration Or local funds again depending on the demand for staff's work So we know that one of those won't be used either the federal or local funds Will be returned to their fund at your end But we don't know which that will be until we've awarded funding to projects and we know what project staff is going to be working on Similarly with the housing choice voucher program benefits increased mostly to cover unfunded pension liability Services and supplies increased here to have enough on hand to fund three NOFA processes rather than one And ensure enough funding to cover costs until we're reimbursed by the federal government for disaster related costs So by approving the budget today You're furthering the housing authorities mission to ensure adequate decent safe and sanitary housing for qualified people within federal state and local law And with that it's recommended by the housing and community services department that the housing authority by resolution adopt their proposed budget for fiscal year 2019 20 thank you, kate I've been reminded to have all of us be as close to the microphone That's appropriate. I think for this microphone is about six minutes six inches away And it's important because it if we aren't it doesn't pick up for closed captioning And so it's an important objective. So just to remind all of us including me to make sure that happens And we will start with questions from the board relative to the budget recentation Prior to public comment and then action by the housing authority Yes, mr. Allen Thank you. First of all, thank you for putting this down to an fte Wable because when we were looking at this last time there were allocated costs from the city that The housing authority had no control over So understanding the controllable cost because that's what we're trying to manage So taking it down to fte level is very helpful on that Can you explain further the if there are costs associated with the project? So there are fixed costs associated with staffing and in services and Then if there are not projects specific available to basically Allocate those costs the project level So the if if those fixed costs Are at a project level the funding source is what and if they are not the what is the funding source? And how does that affect the budget? Yes, thank you. Good question. So When the housing authority awards funding to a specific Awards home or community development block grant funding to a project Some eligible under whatever federal program guidelines there are Staff time can be charged to those specific projects of those specific funding sources But only those So local funds are used to cover anything that is not specifically funded by in this case A federal funding source with strict limitations Does that answer So is it safe to say that if there are not projects to if there were more projects that those costs those fixed costs could be allocated to That it would help the net number for for the housing authority because you're not using city money To pay those fixed costs Um I wouldn't quite say that I would say that Since we don't know if there are going to be projects that are eligible for that use of funds To ensure that local funds are not going over budget I've budgeted for either of those to be used knowing that one of them won't And those funds will get turned back or carried over to the next fiscal year's budget To be used for loan activity and it doesn't matter if the federal or local funds are used anything that we don't use We carry over for loan activity in the next year so I don't want us to go over budget in local funds anymore. So this this avoids that Thank you. The the other question I had it was on the on the benefit side and if I understand correctly the benefits are split between Normal increases and unfunded pension liabilities. Is that correct? Yes, if you take out the unfunded pension liabilities, I'm looking on your slide five Just for example staffing services Total benefits are up by 65 thousand dollars. How much of that would be increases in benefit costs versus increases in unfunded pension liabilities I don't Okay, I don't have that exact number to the penny But today when I was looking at the entire department, not just the housing authority programs If I took the unfunded pension liability out I want to say that it was almost an even benefits budget So there were minor increases and decreases. We have 14 different benefits categories And so within those they moved up and down Except for unfunded pension liability, which spiked department-wide. I want to say like 40 percent 45 percent So most of that increase If not all. Okay. Thank you other questions comments other Thank you for Responding to the questions that were raised at last month's meeting And for just generally a good job of putting together a very complex budget Just one thing that I would ask you to do my very minor My name on the chart on one of six of attachment, whatever it is two or three That's sdven is sdphen is the spelling of my first name We will make sure that gets changed. Good catch and I think that With that unless there's any other comments before if I'll ask if there's any additional public comments. I have no cards So I'm assuming that there aren't but if there are people can go to the microphone to speak Seeing no one wanting to do that. It's back to the housing authority for action, so we have a resolution before us and If I'm member of the boards prepared to we'd like to have us proceed to a motion I'll move to approve the resolution of the housing authority of the city of the santa rosa approved in the housing authority budget for fiscal year 2019 to 2020 and remove the reading of the task the text Thank you. I second that motion Okay, we have a motion commissioner Motion is made by commissioner owens seconded by commissioner test Any other discussion hearing none roll call please sarah Chair berg. Hi commissioner downey Vice chair johnson morgan. I commissioner owen Commissioner test I Let the record reflect that the resolution carries with five eyes and one absence. Thank you That moves us to item 11 Point two on the agenda which is a report of the 2019 focus notice of funding availability Funding recommendation for dentin flats 206 comma 208 and 214 west third street And we have frank kasimov. We'll be making a staff presentation Chairman berg and housing authority commissioners. I'm frank kasimov program specialist with the housing and community services department the 2019-19-20 focus notice of funding availability Announcing the availability of 3.7 million dollars of local funding was issued on April 1st and is was due on april 26th of 2019 This know for focused on projects that have competitive applications for state funding under either the nine percent tax credit application process or the multifamily housing program In addition selection criteria include readiness financial feasibility And qualifications capacity and experience of the development team In this funding round we receive six applications with three 347 total units And requesting 14 and a half million dollars, which is approximately four times the amount of available funding An ad hoc committee appointed by the chairman of commissioners Johnson morgan and test review the applications with staff and together formulated a recommendation for one of the projects Each of the projects received has merit and as more funding becomes available We will be in a good position to get very good projects in the future Funding requests range from one million to the maximum of 3.7 million For this funding round readiness was the criterion selection criterion that set Dutton flats ahead of the other five applications The Dutton flats project is recommended for funding by the ad hoc committee and staff The developer requested a loan in the amount of 3.1 million dollars for construction costs of 41 units The developer is Dutton flats LP and that's comprised of two general partners One of them is phoenix development company, which is a relatively new local company with a completed farm worker project in winsor And is also in the development process for a 72 unit market rate development in railroad square In addition phoenix has completed 10 acquisition rehab projects in minnesota and four new construction projects in minnesota Colorado as well as the one in winsor The managing general partner is integrity housing a non-profit affordable housing developer based in urvine Integrity has completed about two dozen affordable housing developments mostly in california, but also in other states And they have approximately 1,800 total units The tax credit investor would be the uh for the uh, it will be CRE a FPI management will be the management company with the they have 110,000 units in 13 states including one project in san rosa Of the 40 affordable units 26 are targeted to extremely low and very low income households and 14 Are targeted to low income houses households 11 units are one bedroom 15 two bedroom and 15 three bedroom units Then flats meets the readiness criterion For access across the board for approvals financing and construction First multifamily residential Housing is a principally permitted use in the zoning district and as well as the general plan landings designation where in which it is located Meaning that it needs Only a discretionary approval for the design not for the use In this case it is a minor design review Approval and it is scheduled to go this thursday june 30th Before the zoning administrator for that approval together with a confirmation of The exemption from the california environmental quality act With approval of the funding request on the table as well as the tax credit allocation Which is due july 1st dot and flats is fully funded And it's estimated to begin construction in january 2020 and complete construction by march of 2021 The project site is within the downtown station area specific development specific plan area Which is roughly a half mile radius around the smart station in railroad square This area is also a priority development area The city provides in financial incentives in this area In the form of partial fee waivers for residential developments over two stories in height In dutton flat maximizes density at 40 units per acre with a density bonus as well as a five-story mid-rise design The site is well located at dutton avenue and west third avenue It is close to groceries personal services retail and restaurants And approximately Approximately one quarter mile west at dutton avenue and spasible road as well as some services directly across Dutton avenue Two city bus lines stopped right in front or will stop right in front of the site with 15 minute Weekday service inbound to the transit mall Outbound service by the site will cover the northwest part of the city And a quarter mile away at dutton avenue and spasible road There's outbound service to the southwest portion of the city The smart rail station and railroad square about one half mile from the site In addition, there are three bicycle pathways pedestrian bicycle pathways close to the site One is the joe radota trail that connects downtown to sabastopol and points west The prince memorial greenway which goes along san rosa creek out to the laguna And the smart rail corridor which will eventually Connect the entirety of the smart rail system right now in san rosa. It goes from gurnville road To belview with the exception of a short distance By the smart station downtown The city transit department and the developer have agreed on a a transit pass pilot program Where by the owner will buy unlimited city bus passes for each tenant in the building This pilot program is in operation right now in san rosa only for the san rosa junior college So this will be the second time up for it The terms of the program are Still being developed in terms of the cost and whatnot But it according to the transit department staff the initial term is likely to be a minimum of three years and up to about five years On site amenities include a fitness center computer lab community room recreation area for young kids and teens Bicycle storage area bicycle repair area as well as something else that's new For the city, which is a bus shelter integrated into the building rather than a bus shelter out by the curb In one of those blue ones with the little roof would be integrated actually into the building So that's a new concept. This would be the first Of its kind in in san rosa In addition, the developer is contracted with lifesteps to provide an on-site service Coordinator to provide services based on the residents needs Such as classes as english is the second language computers and financial management Also after school programs for kids and summer programs for children And other programs and activities Such as case management crisis intervention and referral services and mediation The project has included these services in its application to the state for its nine percent tax credits So as a result there is a commitment to the state to fulfill those obligations for the services This show is the location of the site Right there in the red box toward the center It's right by dunn and if you go a little bit south on dunn is the joe redota trail before you get to sabastopol road Uh and at sabastopol road are the services we just discussed And the prince memorial greenway is the the green ribbon along san rosa creek and it goes out From downtown to uh the west And the rail corridor is the Corridor that is in the orange or red color that goes north and south It is recommended by the housing authority NOFA ad hoc committee and The housing and community services department that the housing authority by resolution approve a conditional Commitment of funds to dunn flats lp in the amount of three million $100,000 for construction related costs for dunn flats 41 Multi-family rental units located at 206 208 24 in 214 west 3rd street Be happy to answer any questions you might have and the ad hoc committee may want to offer anything else as well Thank you Thank you frank Excuse me if I might just interrupt for a moment. I'd like to remind at the outside of the meeting commissioner Oh, and it indicated he was going to be abstaining from this matter Presumably for a conflict of interest That's correct Okay, um before we begin any deliberations and if you could please exit the chambers Thank you Not only it's just a city attorney, but a sergeant at arms as well As long as there's not an escort No, thank you very much Thank you, ashley for bringing that up. Thank you, jeff. Yeah So Questions comments from the board members first and An opportunity for the public including the applicant who I suspect is represented in the audience today just be And then back to the housing authority for action So let's start off mr. Danny commissioner Danny I'm a teacher and More and more of the students that I'm serving a fire personnel It's very clear that we have gone into the fire season I don't want to sound like I'm picking on this particular project But I am curious If anything is being done to help mitigate total loss of property as a consequence of catastrophic wildfires as we've experienced in 2007 and I believe 2017 2016 Well, I believe in the urban interface zone the urban wildland zone interface There are There's some other State requirements local requirements for for building and building materials. This is not in that zone. So It would follow any Of the code of the fire code And any you know building code in any place it is it would follow the code. So those items aren't really You know something that we We oversee it's the building department and the fire department Thank you Frank. I think the applicant probably is at the microphone wishes to speak. I'm guessing Yeah, thank you for considering our project with me today is Michelle Olson and Holly Holleran who can answer any questions they've been involved in the Entitlement process and the construction Development and we also have Deanna Cecil here from integrity housing who has put together all of the family services and Works with the tenant involvement In regards to your question, which is a really good question concerning what we've all been through This project is entirely sprinkled and It's it's designed To Code and surpass code We've worked very closely with the fire marshal here locally To make sure that what we're doing is correct and is acceptable to the city so Can you stop something from a catastrophic from happening? I don't think that's been That I don't think the the technology is at that point yet But I think we've done everything that Is we would consider Our best effort to Resolve any potential for that kind of an issue And I'll step aside and Feel free to yell out questions Thank you Any other questions comments commissioner test Could the applicant speak to the parking on site? We are in the downtown station area plan and the parking As required by planning and zoning is one use is one space per unit which we have We both integrity and phoenix own a lot of affordable housing projects And it's been It's been our experience that that is Adequate parking for this type of project I was just recently at our property in denver Which is a extremely urban It's on an extremely urban corner just like this bus service both ways and That project is 45 units. We have 45 parking spaces below the building And it's never utilized You can go in there anytime of the day and Find a dozen spaces open easily so Um, I guess that's my comment How about visitor parking About what visitor parking there are um, oh, okay. There are 68 On-street parking spaces within a quarter mile of the site on Just open public parking Thank you well, I would just like to say that I Commissioner test and I were the ad hoc committee and one of my thoughts was that I do know that That area I grew up here and I remember it as many other things and I know that that's a tight space. So I Had concerns for how you could Put 40 units there and provide all of these services It sounds like you have an integrated plan. So I'm really glad to hear that that is actually part of the applications For the state the state tax credits and stuff like that's because I'm glad that that is a Committed part of your plan So thank you. I'm I'm so sorry. We can't hear you on the record if you're talking from the audience. I apologize Thank you, sir Good afternoon. I'm deans. He's all from integrity housing. I'm the director of resident services And we are the managing general partner and the non-profit partner in the partnership So with regards to anything that has to do with the services as frank mentioned Um, we this is a tax credit property. So we have committed to 15 years of services Free of charge to the residents That's a 15-year commitment. Let's see. So you have that that's a part of the kind of That you you but we have to commit to that as part of the tax credit application as part of the tax credit as well So that's what's not frank was saying. So that's that's the assurance that we have And remind me again, what's the status of the The contract that you think it is between your organization and the city transit system for Right you are planning on providing vouchers Correct Yeah, frank as frank addressed that it's not part of the life steps This is an actual separate agreement that's gone into place with the city transit that they're going to provide the unlimited transit passes But the but that's separate from actually resident services Which is the after-school programs coordinated efforts with regards to external organizations and the residents that may need, you know mental health or Assistance beyond what is provided on site. So those are two separate programs So what's the assurance that that's going to be in existence for is that also part of the state agreement? The contract no, this is a particular to the city Of santa rosa is my understanding So you're working on implementation of that, but it hasn't been finalized. Is that correct? I'm not familiar with the transit. So I'll let frank I'm just curious. You know, I understand it's it's it's a yes Very important feature and I am my interest is just making sure that it isn't there for a short period of time and then Hello, I'm holly hollering I was working with yori at city bus And they're currently working on their transit eco pass program to provide Unlimited transit passes for residents at the cost of the partnership or the project. So that's currently in their planning phase And they'll take it to city council in the fall So that would be provided by the city transit not necessarily through a subsidy from no, that would be our partnership with city transit Okay So there's really no we don't we don't know about that one quite yet Frank unless you haven't well, we you know, we don't know exactly The the terms I talked to the transit planner just today to get a final update So they're working on first of all the term the the length of it They're looking at at least three years with renewals possible Maybe a five-year initial and then they kind of evaluated as they go along And see how it's working But they they want at least a three-year if not a five-year commitment up front and then that can go into extensions So they think from their limited experience for the junior college that it'll be successful and they'll want to continue But it's not something unlike Unlike the life steps, which is basically guaranteed for 15 years the transit pass isn't it's new It's a pilot program Like I said, they're the second ones apparently out of the gate to do this So it's it's still being developed, but it's it's So that was a little more experimental at this point in time, right exactly. Okay So long as I understand Is there a targeted resident in mind the characteristic social circumstances From a social services standpoint the services are geared towards low-income Residents as well as the units are set aside for low-income residents But the services are geared towards The tenant population so when when we do lease up at a property We actually put in a resident survey into their lease up package so that the resident can actually fill out I'm looking for after-school programs. I have four children or I'm looking for job assistance Computer training English is the second language and then they can actually tell us what days of the week they're available Are they working every day and they want classes at night on site or do they want them on the weekends? Or are they looking for a job? They're unemployed and they want those classes during the day So we compile all of those resident services Surveys during lease up and then within 90 days We come up with the programming for that site to make sure it's tailored to the resident needs of the community Now would that include uh addiction and recovery services or mental health services? They do help with case management So the on-site service coordinator is set up to help communicate and work directly with Sometimes the residents will have an assigned case manager So the resident coordinator will help work with the case management Or in a case where they realize a resident may need a referral They will make that referral to the appropriate agency for a referral Thank you Welcome The um Frank remind me the the guidelines talk about um a price per unit and So again remind me where we are on that and how what what the status of applying that to a project like this Would be and what the results would be and do we need a waiver for that? exactly so the Cost per unit so we have a the existing loan policy has It has a range actually from one bedroom two bedroom or zero bedroom to four bedroom early And and in this case between for one bedroom to three bedroom the maximum development cost per unit including land ranges from approximately 191,000 to 232,000 per unit so Even taken the highest or taken somewhere in the middle 215 20,000 Any of the projects that submitted in this round and if I recall correctly any of the projects in any of the rounds that I've since I've been doing this for years Exceed that minimum Or that maximum Then development costs so in this case with say 220 or so thousand as the midpoint more or less of the loan policy These range From 360 the ones we got range from 366,000 to 680,000 Development costs per unit Dutton Flats is at the lower end actually at 437,000 so it's the second lowest of the ones we receive but yet still it exceeds The the maximum development cost per unit. So yeah a waiver of the The policy is therefore required So how do we handle that that differential? I mean I know that in the past it's been acknowledged and waived So that is in the uh In the resolution, okay Thank you. Thanks for reminding me of that And and my other question which is kind of came up when I was looking at the map and that's um Is there any issues with a noise attenuation given the proximity to the freeway and I suspect you've been through the process and it's been evaluated. But is that going to be an impediment? For approval for the state funding No, it won't be an impediment. We have reviewed that and If you look at the configuration the building it's l-shaped and the Units are facing Both Dutton and 3rd street. They're connected on the back side. There's a continuous hallway for each floor so the so the corridor masks the units From the potential of the freeway noise Thank you for that response Any further questions comments? Any member of the public wish to speak as this book and I have a question. Well, I've I kind of wondering still about the um, the new design for the bus Shelter I so The thought is is that the bus shelter will be Part of the building so I'm assuming the bus is going to enter the parking lot of the the building so the bus um The inbound bus. I believe six and nine will stop on Dutton in front of the building we've included in the drawings kind of a Let me say it A pollin for the bus And then we'll have the shelter actually integrated into the building So instead of being set out onto the curb, it'll be right there In the building and we'll also have a a kiosk for them to see real-time updates on all the transit lines Thank you Okay Anybody prepared to make a motion? We have the Resolution in our packet It's mission to test I'll make a motion to approve the resolution to move forward um Am I reading the resolution at this point? um Resolution of the housing authority city of santa rosa approving a conditional commitment of loan funds in the amount of three million 100,000 to Dutton flats LP for construction related costs for Dutton flats 206 208 and 214 west 3rd street parcel numbers 1 2 5 0 6 1 dash 0 2 6 1 2 5 0 6 1 dash 0 2 7 And 1 2 5 0 6 1 dash 0 2 8 Loan number 9030 dash 3085 dash 18 and waive the reading of the text A second thank you commissioner test and thank you commissioner downy for the motion in a second Any further discussion? Hearing none real call, please Chair burke. Hi commissioner downy. All right Vice chair johnson morgan And commissioner test I Let the record reflect that the resolution carries with two absences and four eyes Very good. I thank you very much and uh 12 is adjourned. So thank you all very much For making it such a productive day Thank you