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HomeMy WebLinkAbout2015-08-11_AHTF_Minutes_Approved City of Newport Beach Affordable Housing Task Force Minutes Date: August 11, 2015 Location: Newport Beach Civic Center— 100 Civic Center Drive Crystal Cove Meeting Room (Bay 2D, Room 2115) Members Mayor Edward Selich (Chair), Council Member Kevin Muldoon, Council Present: Member Scott Peotter Members None. Absent: Staff: Kimberly Brandt, Community Development Director; Brenda Wisneski, Deputy Community Development Director; James Campbell, Principal Planner; Jaime Murillo, Senior Planner; and Melinda Whelan, Assistant Planner I. CALL MEETING TO ORDER The meeting was called to order at 3:00 pm. II. PUBLIC COMMENT ON NON-AGENDIZED ITEMS None. III. DRAFT MINUTES OF APRIL 13, 2015 The minutes of the April 13, 2015 meeting were approved (2 — 0) (Motion Selich, Second Peotter, Muldoon Absent). IV. AFFORDBLE HOUSING FUND RFP — DISCUSSION AND RECOMMENDATIONS Mr. Murillo provided background of the RFP process and money available from the Affordable Housing Fund. He reported that the RFP process yielded five proposals. The proposal from Meta Housing withdrew their application due to loss of site control. The proposal from the Shopoff Group was disqualified because it didn't meet the RFP qualifications as the proposal requested use of funds to construct an existing affordable housing obligation to the City. The remaining three proposals were reviewed and interviewed by the evaluation panel comprised of Clint Whited, the City's housing consultant; Lauren Wooding Whitlinger, City Real Property Administrator; Jaime Murillo, Senior Planner; and Melinda Whelan, Assistant Planner. Upon completion of the evaluations, the Amarin Construction Company proposal was disqualified due to no site control and an inadequate proposal because it did not meet RFP qualifications. The remaining two proposals submitted by Habitat for Humanity of Orange County (Habitat OC), partnering with OASIS Senior Center, and the Community Development Partners, partnering with the Mercy House for the Newport Shores project, were given high scores by the evaluation panel. Affordable Housing Task Force August 11, 2015, Minutes Page 2 Celeste Jardine-Haug from OASIS Senior Center provided a brief overview of the proposed program and explained that there are many low-income seniors that have out-lived their income and have no money to fix critical home repairs such as leaks in roofs, non-functioning toilets, and necessary accessibility upgrades. There is currently no assistance program in place to provide safe and accessible housing in their current homes as well as to alleviate Code Enforcement citations. She explained that Habitat OC would implement this program. Chris Baiocchi, Vice President, Fund Development, Habitat OC, explained that Habitat OC has been building homes and providing home repair for many years in Orange County and this program would allow seniors to age in place. He explained that the challenge for Habitat OC is to find the seniors in need of this program. He continued that the program will work with OASIS in identifying the public need and Habitat OC will provide voluntary service and construction. Ms. Jardine-Haug explained that OASIS staff will coordinate the publicity for this program, and identify and assist in qualifying the seniors by using the Habitat OC guidelines for seniors 60 years of age and older. She further explained that with the help from OASIS volunteers, such as Evelyn Hart, low-income seniors in need of critical home repair would be identified before passing them onto Habitat OC. Habitat OC will create the scope of work and work with the homeowner, volunteers, and contractors to complete the home repairs. To further explain the meaning of accessibility upgrades, Mr. Baiocchi provided examples such as handrails, accessible showers, and chair lifts. Mr. Murillo touched on some of the evaluation highlights stating that the high scores were based on the well thought out program combined with the strong partnership with Habitat OC, the ability for quick implementation, and the implementation of several Housing Element Goals and Policies. In reference to the evaluation panel, Mr. Murillo noted the Panel questioned if grants should be silent loans. In response to Mr. Murillo, Mr. Baiocchi stated that the repair programs ask for a small contribution from the homeowner, therefore Habitat OC does not typically use loans. Affordable Housing Task Force Member Muldoon expressed his concern of a loan and stated that it should be a grant to not negatively affect the amount of money available. Mr. Baiocchi estimated 30 senior homes would be assisted. Ms. Jardine-Haug explained that OASIS has already been contacted by a number of seniors who have been cited by Code Enforcement and cannot afford to make the home repairs. The goal is to implement the program within a two year time frame to assist those in critical need of repairs. Susie Digiovanna, OASIS Recreation Supervisor and Code Enforcement confirmed the need for assistance. Ms. Digiovana added that meals on wheels drivers have also observed critical home repair needs while in the field. Ms. Jardine-Haug added that strict guidelines will be used to qualify applicants and funds will only be used for critical home repair. She also noted that the program will be within the tasks of the current OASIS staff and only a small portion of funds will be used for brochures. Also administrative costs will be low because of the partnership with Habitat OC. Mr. Baiocchi added that an example project budget was provided in the proposal with the largest amount being the construction cost. Affordable Housing Task Force August 11, 2015, Minutes Page 3 Eric Payne from Community Development Partners introduced the Newport Shores project and discussed the following information with a power point presentation: Newport Shores project has 12 existing units History on the units - 12 units built in the 1960s with 13 parking spaces Community Development Partners is a local affordable housing developer located in Lido Village The project would create permanent affordable housing and rehabilitation to existing neglected property with exterior and interior improvements The project would be restricted to lower-income level residents and entail complete renovation to the exterior of property Discussed sustainable components Community outreach is sensitive to Newport Shores neighborhood as members of the community and Community Development Partners were born in Newport Beach Explained long term commitment to owning property for 55 years Community Development Partners was founded in 2011 with affordable housing developed in California, Oregon, and Arizona Financial capacity, including leverage of multiple funding sources Track record in exceeding commitments, expertise and experience with obtaining federal tax credits, and City, County, and Federal partnerships Mercy House is a service provider. Linda Wilson of Mercy House explained that Mercy House was developed 25 years ago based in Santa Ana to provide special needs services for populations with various housing services. Community Development Partners has collaborated with Mercy House on other projects with great success Provided examples of several projects Proposing a minimum of 4 units for veterans housing Project schedule: tax credit applications in March, results in May, construction starting in September 2016, and completion in 2017 Explained tax credit tie breaker is based on city's contribution and can be applied for in March and July of each year In response to questions from the Task Force members regarding obtaining tax credits, Mr. Payne explained that a committee takes the tax credit applications and ranks them with the goal to create as many affordable housing units with the least amount of money. Incentives are created for each project with "tie breakers" which are awarded for items such as vouchers or greater City contributions. Mr. Payne further explained the $1.5 million in city funds is fairly strong but additional funds would increase the chance of obtaining the tie breaker, therefore increasing the chance and competitiveness of receiving the tax credits. Mr. Payne continued that without the tax credits the project would still be affordable for residents over 55 years, however, not at the same affordability level. The target low-income population and the level of rehabilitation would be significantly less. Mr. Payne explained Community Development Partners would be able to apply twice a year, once in March and once in July, and that they have to acquire the property prior to applying for tax credits. Escrow is contingent upon being awarded City financing. City Manager, Dave Kiff asked if the target population includes the homeless and Mr. Payne responded that they are open for discussion on the different opportunities for target Affordable Housing Task Force August 11, 2015, Minutes Page 4 populations such as the veteran vouchers for homeless Veterans. Mr. Kiff also asked what the Mercy House involvement would be to residents. Linda Wilson of Mercy House explained that Mercy House provides supportive services for the residents to keep them permanently housed. When housing the homeless it is important to provide the support services to ensure that the population can maintain their residency once in place. Community Development Partners staff added that they have spoken to Hoag Hospital doctors who treat Veteran patients and the need for Veterans to live close to Hoag where they receive their medical treatments. Mr. Murillo touched on some items brought up by the evaluation panel including the 12 units that are existing nonconforming as the zoning has changed to commercial. The nonconforming status of the project will not intensify the use, but will rehabilitate the building improving the exterior and interior. Mr. Murillo continued that the preference for low income artists as the target population raised some concern since it is such a specific population. There are other populations identified in the City that are in need of this program. Mr. Payne explained that the target population could definitely be changed to be more flexible. The Task Force agreed it would be best to propose to City Council that additional funds be awarded to Community Development Partners in addition to the original amount requested to increase the chances of obtaining the tax credit. V. PUBLIC COMMENT One member of the public asked if the units would be eligible for Section 8 and veteran vouchers. Linda Wilson from Mercy House replied that the project based veterans vouchers would be based on recommendations made directly from Veterans Affairs, but the other units could use Section 8 vouchers. A member of the public, Philip Bettencourt stated that Mercy House and Habitat OC are the gold standard for providing housing and appreciates these good projects. Chairman Selich concluded that both proposals are terrific projects, asked if there was any unwillingness from the Task Force to forward them to City Council and seeing none forwarded them to City Council recommending that each proposal be awarded the in-lieu housing funds. VI. ADJOURNMENT The meeting adjourned at 3:51 p.m. The agenda for the Affordable Housing Task Force was posted on August 7, 2015, at 3:20 p.m. in the Chambers binder and on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive and on the City's website on August 7, 2015, at 3:30 p.m.