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HomeMy WebLinkAbout021103 RDA Minutes MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY FEBRUARY 11, 2003 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 7:46 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLL CALL PRESENT: 4 AGENCY MEMBERS: Comerchero, Pratt, Stone, and Naggar ABSENT: 1 AGENCY MEMBER: Roberts Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. In light of Chairman Roberts' absence, Vice Chairman Naggar presided over the meeting. PUBLIC COMMENTS No input. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of January 28, 2003. MOTION: Agency Member Comerchero moved to approve Consent Calendar Item No. 1. The motion was seconded by Agency Member Stone and voice vote reflected approval with exception of Chairman Roberts who was absent. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING 2 Loan Aqreement for the Rehabilitation of Rancho Meadows Condominiums RECOMMENDATION: 2.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 03-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A HOUSING REHABILITATION LOAN FOR THE RANCHO MEADOWS HOUSING PROJECT AND RELATED DOCUMENTS 2.2 That the Temecula Redevelopment Agency adopt a resolution entitled: R:~'vlinutes.rda\021103 1 RESOLUTION NO. RDA 03-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY APPROVING A HOUSING REHABILITATION LOAN FOR THE RANCHO MEADOWS HOUSING PROJECT AND RELATED DOCUMENTS Presenting the staff report (of record), Housing and Redevelopment Director Meyer noted the following: · That the loan would be repaid through the lien; that neither the homeowner nor the Homeowners Association would be making payments until such time the unit would be sold or refinanced; that no interest will be charged on the loan; · That if there were a drop in the interest amount, the homeowner would be allowed to refinance; · That the homeowners accepting the affordabiiity covenant wi}l have a $2,800 lien and those not accepting it, will have a $6,500, averaging to $5,000 per unit; · That through a survey conducted by the Homeowners Association, 58 homeowners would qualify for the covenant and would be willing to take it; · That the disbursement of funds would require 40% homeowner participation or 58 of the homeowners accepting an affordability covenant; · That all properties will be requested to accept a lien and a covenant as per State law for use of affordable housing funds; · That the difference in the lien amount was created as a means of creating an incentive to accept the covenant; · That the proportion imposed was one created by the Homeowners Association Board. Executive Director Nelson reiterated that the proposed loan would be a no interest loan until the property is sold and that the $6,500 lien would reflect an estimated benefit of $10,000 to each owner; that 60% of the homeowners do not meet the Iow-to-moderate income covenants; and that the loan will be with the Homeowners Association and, therefore, the owners will not be affected by the lien, held by the Agency, on each individual unit. Mayor/Agency Member Stone noted that the Redevelopment Agency functions as an extension of State government, advising that Agency monies are to be utilized to eliminate blight within the community. At this time, Mayor Pro TemNice'Chairman Naggar opened the public hearing. Having witnessed much development in this community, Mr. Ron Perry, 44550 La Paz Road, encouraged the Agency to approve staff's recommendation. Having owned a unit at Rancho Meadows since 1977, Mr. Perry provided a brief overview with regard to the reserve funds of the Rancho Meadows Association and advised that most of the homeowners are in support of the recommendation. Referencing her letter (of record - copies submitted to the City Council), Ms. Pam Powell, 44727 La Paz Road, treasurer of a previous Rancho Meadows Homeowners Association Board, expressed concern with regard to property ownership rights; requested denial of the recommendation as presented; suggested that a fair, reasonable, and equitable loan package without covenants and conditions be structured; noted that the proposed loan would only provide one third of the .monies needed to make the necessary rehabilitation improvements; stated that the Rancho Meadows homeowners are being discriminated against; and advised R:\Minutes.rda\021103 2 that elements of this loan process have violated State/Federal lending regulations, noting that no Truth and Lending Disclosure form has been forward to the homeowners. City Attorney Thorson further clarified the process, noting the following: · That there will be no payment by the owner; that a lien will be placed on the unit; · That when the property is sold, the lien would be paid through the equity; · That the Redevelopment Agency is required to spend its money to eliminate blight in the community; · That 20% of the money is required to be solely spent on the enhancement and generation of Iow/moderate income housing; · That all Redevelopment Agency projects undertaken for Iow/moderation income housing require that property be regulated with a deed restriction for Iow-to-moderate income individual. 'In closing, Mr. Thorson reiterated the conditions and terms of the loan, clarifying as follows: · That the Agency will require 40% of the homeowners to accept the covenant; · That per State law, the resale restrictions established by the covenants must remain on the units for a 45-year period. At this time, the public hearing was closed. Reiterating that no owner was forced to participate in this process, Councilman/Agency Member Comerchero advised that it was the Homeowners Association that approached the City for assistance. It was noted by Mr. Comerchero that the Truth and Lending Disclosure form would be provided at the appropriate time. Appreciating Ms. Powell's comments, Mayor Pro Tern/Vice Chairman Naggar relayed his support of this loan package, commenting on this community's blight and need for assistance. Viewing this project as an appropriate use of Redevelopment Agency funds - to eliminate blight, Mayor/Agency Member Stone relayed his support of the recommendation. MOTION: Mayor Pro Tem/Vice Chairman Naggar moved to approve staff recommendation. The motion was seconded by Councilman/Agency Member Comerchero and voice vote reflected approval with the exception of Chairman/Agency Member Roberts who was absent. 3 Affirmed Housin.q Sixth Street Homeownership Proiect RECOMMENDATION: 3.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 03-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING FIRST AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AFFIRMED HOUSING PARTNERS - TEMECULA, LLC (SIXTH STREET HOUSING PROJECT) R:\Minutes.rda\021103 3 3.2 That the Redevelopment Agency Bq~ard adopt a resolution entitled: RESOLUTION NO, RDA 03-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING FIRST AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AFFIRMED HOUSING PARTNERS - TEMECULA, LLC (SIXTH STREET HOUSING PROJECT) Housing and Redevelopment Director Meyer reviewed the staff report (of record). At this time, the public hearing was opened. Mr. Jim Silverwood, representing Affirmed Housing Partnership, 200 East Washington Avenue, Suite 208, Escondido, relayed his support of staff's recommendation as well as the City Attorney's recommendation for an amendment to the Disposition and Development Agreement. There being no additional public input, the public hearing was closed. Mayor Pro TemNice Chairman Naggar requested assurance that the citizens of this City be given top priority for the purchase of these homes. Relaying his support of the recommendation, Councilman/Agency Member Comerchero commented that the construction of single-family detached homes is a more unusual use of Redevelopment Housing funds. MOTION: Mayor Pro Tem/Vice Chairman Naggar moved to approve staff recommendation. The motion was seconded by Councilman/Agency Member Comerchero and voice vote reflected approval with the exception of Councilman/Chairman Roberts who was absent. 4 Habitat for Humanity of the Inland Valleys, Inc. Housin.q Proiect RECOMMENDATION: 4.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 03-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND HABITAT FOR HUMANITY 4.2 That the Temecula Redevelopment Agency adopt a resolution entitled: RESOLUTION NO. RDA 03-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND HABITAT FOR HUMANITY Reviewing the staff report (as per agenda material), Housing and Redevelopment Director Meyer advised that the previously approved project would be sold between median/moderate and that the proposed project would be sold at the very Iow/Iow income level and that the qualifying requirements for this particular project are stricter than those of the previous project. City Attorney Thorson noted that although there are different restrictions in terms of the income levels, the general restrictions and regulatory agreement are the same for all Redevelopment Agency projects being considered this evening. Executive Director Nelson noted that the City would be absorbing the cost associated with subdividing the lots. At this time, the public hearing was opened. Mr. Chuck Washington, 31205 Kahwea Street, commended and thanked the City on its aggressiveness in addressing affordable housing within the community. There being no additional public input, the public hearing was closed. MOTION: Councilman/Agency Member Comerchero moved to approve staff recommendation. The motion was seconded by Mayor Pro Tern/Vice Chairman Naggar and voice vote reflected approval with the exception of Councilman/Chairman Roberts who was absent. At this time, the City Council meeting was recessed. EXECUTIVE DIRECTOR'S REPORT Appreciating the partnership with Habitat for Humanity, Executive Director Nelson relayed his delight with giving individuals the opportunity to have the pride to be able to own their homes. AGENCY MEMBERS' REPORTS Agency Member Stone requested that the Council agenda be amended to reflect a Commission recommendation section. ADJOURNMENT At 8:32 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, February 25, 2003, in the City Council~,ba~q.ers, 43_200~Bus~Drive, Temecula, California. ~ Ron Roberts, Chairman ATTEST: R:\Minutes.rda\021103 5