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HomeMy WebLinkAboutItem 8.1 DHA funds ArroyoVista CITY CLERK File # 600-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 20, 2003 SUBJECT: Request for funds by the Dublin Housing Authority to conduct an analysis of the feasibility of redeveloping Arroyo Vista Report Prepared by Eddie Peabody, Community Development Director and Marnie R. Waffle, Assistant Planner ATTACHMENTS: 1. April 15, 2003 Minutes of the Dublin Housing Authority 2. Resolution authorizing the City Manager to enter into an agreement between the City of Dublin and the Dublin Housing Authority regarding a grant for the study of the feasibility of redeveloping the Arroyo Vista Housing Complex 3. Agreement between the Dublin Housing Authority and the City of Dublin regarding a grant for the study of the feasibility of redeveloping the Arroyo Vista Housing Complex. 4. Budget Change Form RECOMMENDATION: 1. Adopt a Resolution (Attachment 2) authorizing the City  Manager to enter into an agreement between the City of Dublin and the Dublin Housing Authority regarding a grant for the study of the feasibility of redeveloping the Arroyo Vista Housing Complex. 2. Approve a budget transfer in the amount of $30,000 from the Inclusionary Housing Fund to the Dublin Housing Authority. FINANCIAL STATEMENT: If approved, this request would require a transfer of funds, in the amount of $30,000, from the Inclusionary Housing Fund to the Dublin Housing Authority. DESCRIPTION: At the April 15, 2003 Dublin Housing Authority Meeting, the Housing Authority discussed maintenance and operation of Arroyo Vista and the possibility of studying the feasibility of redeveloping the site. Arroyo Vista is a 20-year-old public housing project comprised of 150 single-family dwelling units. The majority of the units are for large families with a small portion of one-bedroom units for seniors and persons with disabilities. Arroyo Vista is in need of a significant amount of routine and deferred maintenance. Because the Housing Authority receives no federal operating subsidies, maintenance and operation of the project relies entirely on rental income, which averages $396 per unit a month. COPIES TO: ITEM NO. ~ The Dublin Housing Authority would like to conduct an analysis of the feasibility of redeveloping Arroyo Vista and is requesting funding from the City of Dublin's Inclusionary Housing Fund in the amount of $30,000. These funds would be used for planning activities, which would initially include submitting an application to the US Department of Housing and Urban Development to explore the disposition of the public housing property. The planning activities would also include a public participation component and would involve the current residents of Arroyo Vista. The Housing Authority will be looking at the feasibility of increasing the total number of housing units on the property, providing more one-bedroom units, and relocating residents during the construction phase. The Dublin Housing Authority would be conducting the feasibility analysis and entering into a contract with consultants to perform the necessary studies. ANALYSIS: The City Attorney has prepared an Agreement Between the Dublin Housing Authority and the City of Dublin Regarding a Grant for the Study of the Feasibility of Redevelopment of the Arroyo Vista Housing Complex (Attachment 3). This Agreement establishes the necessary findings for the funding request and terms of the Agreement. According to the City's Inclusionary Zoning Regulations, funds may be expended from the Inclusionary Housing Fund for the purpose of providing affordable housing. The Dublin Housing Authority's request for funds from this account complies with the Inclusionary Zoning Regulations because the money will be used to fund a study that may allow for an increase in affordable housing at Arroyo Vista. The terms of the Agreement include the City granting to the Housing Authority $30,000 from the Inclusionary Housing Fund to conduct the feasibility analysis. Payments would be made by the City of Dublin to the Housing Authority upon submission of copies of consultant contracts and requests for payment. As part of the Agreement, the City would require that the Housing Authority provide copies of all contracts it enters into with consultants for the purpose of this study and, on a periodic basis, provide reports to the City on the status of the study and progress in determining the feasibility of redeveloping the Arroyo Vista site. The Housing Authority would also be required to provide copies of completed evaluations submitted by the consultants to the City. RECOMMENDATION: Staff recommends that the City Council adopt a Resolution (Attachment 2) authorizing the City Manager to enter into an agreement between the City of Dublin and the Dublin Housing Authority regarding a grant for the study of the feasibility of redeveloping the Arroyo Vista Housing Complex and approve a budget transfer in the amount of $30,000 from the City's Inclusionary Housing Fund to the Dublin Housing Authority.  Respond To: Arroyo Vista Office [] 'DUBLIN HOUSING AUTHORITY 6700 Dougherty Rd. #151 Dublin, CA 94568 Administrative Office [] 22941 Atherton St. Hayward, CA 94541 MINUTES OF THE DUBLIN HOUSING AUTHORITY (5~0) 538-8876 April 15~ 2003 A REGULAR Meeting of the Dublin Housing Authority was held on April 15, 2003. The meeting was called to order by Commissioner Lockhart at 6:00 p.m. at the Dublin Civic Center. ROLL CALL Present: Cmrs. Costello, Frydendal, Lockhart, McCormick, Oravetz, Sbranti, Zika Absent: None Staff Persons Present: Ophelia B. Basgal, Executive Director. Jim Stelly, Interim Manager Approval of Minutes On a motion by Cmr. McCormick, seconded by Cmr. Zika, the Housing Commission approved the minutes of March 18, 2003. Cmr. Costello abstained. NEW BUSINESS Public Hearing on PHA Plan Cmr. Lockhart opened the Public Hearing for comments. There were no comments addressed. Cmr. Lockhart announced that the Public Hearing was closed. Cmr. Sbranti asked what type of recruitment was normally performed in order to get residents involved with the Resident Council. The Director stated that staff meets with residents to encourage involvement with the. Resident Council, and that the Resident Council was elected by the residents. It was also suggested that the Resident Council have a column in the monthly nexvsletter. Cmr. McCormick asked about the tenants comments regarding inoperable vehicles. The Director asked Mr. Stelly, Interim Manager, to address the question. Mr. Stelly stated that he walks through the grounds daily and places violations on vehicles that have expired tags or are inoperable. The Director stated that he is doing a good job in keeping this under control. Cmr. Costello stated that extra parking is needed within the complex and that the soccer field area could possibly be developed for parking space. Cmr. Lockhart took note of the comments. On a motion by Cmr. Oravetz, seconded by Cmr. Zika, the Commission unanimously approved: Resolution No. 04-03 Adopt PHA Plan Update for Fiscal Year 2003-04 ATTACHMENT Development Opportunities for Arroyo Vista A few months ago the Director became aware of the redevelopment of a public housing complex in Bay Point, California that had many similarities to Arroyo Vista. The public housing development is owned by the ,Contra Costa Housing Authority and located near a BART station. This complex has 86 units with 14 acres and was in need of renovation. Contra Costa Housing Authority had utilized a HUD program that allowed for disposition of the public housing property. They had demolished their existing property and built 170 units of replacement affordable housing on the site using tax credits and other affordable housing funding. Existing residents were provided interim housing during the construction phase with either Section 8 vouchers or other public housing units and given an opportunity to return once the new construction was completed. Arroyo Vista is now 20 years old and has a significant amount of deferred as well as normal maintenance of the 150 single family dwellings. The Housing Authority receives no federal operating subsidy and operates entirely on rental income. The average rent is $396. The unit density is 6.5 units per acre. There are ample units for large families, but there are only 16 one bedroom units for seniors and persons with disabilities. Redeveloping the site could increase the total number of housing units and also the number of one bedroom units. Affordable homeownership opportunities could also be created depending on how the property was redeveloped. Staff has requested the Commission's authorization to explore the possibilities for redeveloping Arroyo Vista and to seek $30,000 in funding from the City of Dublin's affordable housing fund for planning activities. Cmr. Lockhart and Cmr. Zika agreed with the idea. Cmr. Sbranti questioned the length of time the study would take and how long it would take to move forward with the program. The Director stated the first step would be to submit and application to HUD and would require seeking input from the residents. The Director also stated that the PHA Plan would need to be amended (90 days posting requirement) before the application process. The Contra Costa Housing Authority took 18-20 months to complete their application. The main problem that exists with the Dublin Housing Authority is that no alternative housing exists in which to relocate the tenants. Contra Costa had alternative public housing and a Section 8 program. The Director stated that the demolition could be done in phases in order to relocate tenants but it could increase the cost. If Section 8 vouchers were allocated, they could possibly be issued with a time limited to the period of construction, at which time the families could return to the development. The Director added that there is a new HUD notice that would allow for Operating Fund monies to be used for the development of replacement housing. The entire process could take possibly two years for the redevelopment of the complex once an application was approved. Cmr. Zika had concerns about possibly being drawn into a lengthy process which may turn out to be burdensome. The Director stated that HUD has proposed alternative funding arrangements to Congress to make public housing units more like project-based units. The Director also stated that HUD would look favorably upon the process. Cmr. Oravetz feels it would be a great opportunity to improve the utilization of the land and the overall housing complex. Cmr. Costello expressed concerns with relocating disabled tenants to accessible units. Cmr.. Frydendal stated that she had concerns about the sound Wall, if rebuik. It currently doesn't block the sound effectively; trucks traveling nearby are quite loud. Cmr. Lockhart volunteered to aSsist if a Commissioner was needed to work with or attend public meetings. On a motion by Cmr. Sbranti, seconded by Cmr. McCormick, the Commission unanimously approved: Resolution No. 05-03 To Begin a Feasibility Analysis and Request $30,000 in Funds from the City's Affordable Housing Fund to Conduct Required Analysis Scholarship Program Staff agreed to advertise the availability of two scholarships in the amount of $250 each. The application availability will be announced to all residents and screened by staff for completeness and then sent to the Commission appointed scholarship committee for review and evaluation for funding. Cmr. Sbranti and Cmr. Oravetz volunteered to serve on the scholarship committee. On a motion by Cmr. McCormick, seconded by Cmr. Zika, the Commission unanimously approved: Resolution No. 06-03 Two $250 Scholarships or One $500 Scholarship for FY 2003-2004 Commissioner Information Park Sierra: Cmr. Zika noted that two of the units annual household income appeared incorrect. Staff indicated they would check on this and report at the next meeting. Cmr. Frydendal asked if the security screen doors could be placed as a priority instead of the landscaping and fencing repairs for the Capital Fund. The Director stated that this is something that could be considered. Cmr. Costello stated that there was an eight foot long hole in the pavement along the Iron Horse Trail. Staff indicated this would be checked into to determine who had responsibility for the repair. Adjournment There being no further discussion, the meeting adjourned at 6:40 p.m. Chairperson Lockhart Ophelia B. Basgal Executive Director April 15, 2003 (Arnended May 6, 2003) DUBLIN HOUSING AUTHORITY RESOLUTION NO. 04-03 Adopt PHA Plan Update: Annual Plan for Fiscal Year 2003 WHEREAS, small PHAs (250 units or less) are required to submit a PHA Plan update for years 2-5 ofaplan cycle; and WHEREAS, the Housing Authority staff met with the Arroyo Vista Resident Advisory' Board (RAB) and reviewed the proposed PHA P1an update; and WHEREAS, the Arroyo Vista Resident Council were supportive of the Maintenance, Communication, Safety and Neighborhood Appearance areas on the updated Plan and; WHEREAS, the residents also supported the proposed work items in the Capital Fund Program Annual Statement for Federal Fiscal Year (FFY) 2003 and the Capital Fund Program 5-Year Action Plan. NOW .THEREFORE BE IT RESOLVED, the Dublin Housing Commission adopts the PHA Plan for Fiscal Year 2003. PASSED, APPROVED, AND ADOPTED, by the Commissioners of the Dublin Housing Authority on April 15, 2003. AYES:. Cmrs., Costello, Frydendal, Lockhart, McCormick, Oravetz, Sbranti and Zika NAYS: None ABSENT: None ATTEST: None Chairperson Lockhart Ophelia B. Basgat Secretary-Executive Director ADOPTED: April 15, 2003 DUBLIN HOUSING AUTHORITY RESOLUTION No. 05-03 Authorize a Feasibility Analysis and to ReqUest $30,000 in Funds from the City's Affordable Housing Fund to Conduct Required Analyses and for Related ExDenses WHEREAS, utilizing a HUD program, which allows for disposition of public housing property, the Dublin HOusing Authority could explore the redevelopment possibilities of Arroyo Vista; and Wh~EREAS, redeveloping the site could create an opportunity to not °nly increase the total number of housing units, but also the number of one bedroom units to' address the housing needs of the elderly and persons with disabilities; and WHEREAS, there also exists the possibility of creating affordable homeownership opporttmities depending on how the property was redeveloped; and WHEREAS, staff would like to explore the redevelopment possibilities further, which involves reviews of the HUD application process, legal analysis regarding disposition and relocation requirements, meetings with the residents to seek their input for possible plans, etc. and; WHEREAS, staff is requesting authorization to apply for funding from the City of Dublin's Affordable Housing Fund for planning activities in the amount of $30,000. NOW THEREFORE BE IT RESOLVED, the Dublin Housing Commission authorize the Director to begin a feasibility analysis and to request $30,000 in funds from the City's Affordable Housing Fund to conduct the required analyses and for related expenses. PASSED, APPROVED, AND ADOPTED, by the Commissioners of the Dublin Housing Authority on April 15, 2003. AYES: Cmrs., Costello, Frydendal, Lockhart, McCormick, Oravetz, Sbranti and Zika NAYS: None ABSENT: None ATTEST: None Chairperson Lo&hart Ophelia B. Basgal Secretary-Executive Director ADOPTED: April 15, 2003 DUBLIN HOUSING AUTHORITY RESOLUTION 06-03 Resolution Awarding FY 2003 Arroyo Vista Scholarship WHEREAS, the Dublin Commission wishes to make available up to two $250 scholarships to two Arroyo Vista residents or a' $500 award if there were only one qualified applicant; and WHEREAS, Cmr. Sbranti and Cmr. Oravetz agreed to serve on the scholarship committee. NOW THEREFORE BE IT RESOLVED, the Commission authorizes two $250 scholarships for two recipients or $500 for one scholarship recipient. PASSED, APPROVED, AND ADOPTED, by the Commissioners of the Dublin Housing Authority April 15, 2003. AYES: Cmrs., Costello, Frydendal, Lockhart, McCormick, Oravetz, Sbranti and Zika NAYS: None ABSENT: None ' ATTEST:" None Chairperson Lockhart Ophelia B. Basgal Secretary - Executive Director April 15, 2003 RESOLUTION NO. - 03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLI~ AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE DUBLIN HOUSING AUTHORITY AND THE CITY OF DUBLIN REGARDING A GRANT FOR THE STUDY OF THE FEASIBILITY OF REDEVELOPMENT OF THE ARROYO VISTA HOUSING COMPLEX WHEREAS, on May 20, 2003, the City Council was presented with an Agenda Statement regarding a request by the Dublin Housing Authority for a grant in the amount of $30,000 from the City's Inclusionary Housing Fund in order to conduct an analysis of the feasibility of redeveloping the Arroyo Vista Housing Complex; and WHEREAS, the Dublin Housing Authority owns a residential housing complex in the City of Dublin known as Arroyo Vista that provides housing to very-low and low income households; and WHEREAS, the City of Dublin Inclusionary Zoning Regulations allow for funds to be expended from the Inclusionary Housing Fund if such funds are used for the purpose of providing affordable housing; and WHEREAS, the Dublin Housing Authority is proposing to conduct a study on the feasibility of increasing the number of affordable units at Arroyo Vista; and WHEREAS, the City Council has been presented with an agreement entitled Agreement Between the Dublin Housing Authority and the City of Dublin Regarding a Grant for the Study of the Feasibility of Redevelopment of the Arroyo Vista Housing Complex; and WHEREAS, the City Council is familiar with the terms of the agreement; and WHEREAS, the City Council has authorized the City Manager to enter into said agreement. NOW, THEREFORE BE IT RESOLVED, that the Agreement Between the Dublin Housing Authority and the City of Dublin Regarding a Grant for the Study of the Feasibility of Redevelopment of the Arroyo Vista Housing Complex is hereby approved and the City Manager is hereby authorized and directed to execute the Agreement in substantially the form attached as Attachment 3 to the agenda statement. PASSED, APPROVED AND ADOPTED this 20th day of May 2003, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk ATTACHMENT AGREEMENT BETWEEN THE DUBLIN HOUSING AUTHORITY AND THE CITY OF DUBLIN REGARDING A GRANT FOR THE STUDY OF THE FEASIBILITY OF REDEVELOPMENT OF THE ARROYO VISTA HOUSING COMPLEX This Agreement (the "Agreement") is made as of ,2003, by and between the CITY OF DUBLIN (the "City"), and the DUBLIN HOUSING AUTHORITY (the "Authority"). RECITALS A. The City has enacted Inclusionary Zoning Regulations that require certain residential developers to construct housing that is affordable to very Iow-, Iow-, and moderate- income households. Some developers comply with these requirements by paying to the City fees in lieu of constructing such units. The City maintains such funds in the Inclusionary Zoning In-Lieu Fees Fund. Such funds may be expended for the purpose of providing very-low-, Iow-, and moderate-income ownership or rental housing in the City of Dublin. B. The Authority owns a residential housing complex in the City of Dublin known as Arroyo Vista that provides housing to very Iow- and Iow-income households. C. The Authority has by letter requested a grant of $30,000 for studying the possibility and feasibility of increasing the number of affordable units (i.e. affordable to households of very Iow-, Iow-, and moderate-income) on the site of Arroyo Vista. The letter is attached hereto as Exhibit A and incorporated herein by this reference. D. The City Council finds that the purposes for which the Authority seeks the grant is for the purpose of providing very Iow-, Iow-, and moderate-income ownership and rental housing in the City of Dublin and desires to make such a grant from the Inclusionary Zoning In-Lieu Fees Fund for the purposes set forth in Exhibit A. NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations, and in further consideration for the making of the Grant, the Authority and City hereby agree as follows: 1. Grant. City shall provide to Authority up to $30,000 for the purpose of studying the possibility and feasibility of increasing the number of affordable units on the site of Arroyo Vista, as more specifically set forth in Exhibit A ("the Study"). The City shall disburse such funds upon the Authority's entering into a contract with consultants to perform necessary Study or any portion thereof. 2. Reporting. Authority shall provide the City with copies of any contracts that it enters into with consultants regarding the Study. In addition, the Authority shall provide periodic reports to the City Manager or his designee on the status of the Study and progress in determining the feasibility of the proposed project and copies of completed evaluations submitted by consultants to the Authority. ATTACHMENT 3. Payment. Upon submission of copies of consultant contracts and request for payment, the City shall promptly make payment to the Authority. 3. Indemnification. Authority agrees to defend, indemnify and hold harmless City and its officers, employees and agents from any and all acts, claims, omissions, liabilities and losses, including attorneys fees, by whomever asserted arising out of acts or omissions of Authority in the performance of this Agreement except those arising by reason of the sole negligence of City, its officers, employees or agents. 4. Notices. Any and all notices, writings, correspondences, etc, as required under this Agreement shall be directed as follows: City: . Authority: City Manager Executive Director City of Dublin Dublin Housing Authority 100 Civic Center Dublin, CA 5. Governing Law. The laws of the State of California shall govern this Agreement. 6. Term and Survival. This Agreement shall commence on the date set forth above and shall terminate upon approval of the Study by the Authority's Board of Directors. All obligations arising prior to the termination or expiration of this Agreement and all provisions if this Agreement allocating liability between City and Authority shall survive said termination or expiration. 7. Amendments. This Agreement may be amended only by written agreement of the parties hereto. IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above. CITY OF DUBLIN DUBLIN HOUSING AUTHORITY City Manager Executive Director Attest: City Clerk Approved as to form: City Attorney CITY OF DUBLIN l~ , ~ BUDGET CHANGE FORM CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: X From Unappropriated Reserves (Fund 380) From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity From New Revenues Between Departments (City Council Approval Required) Other Name: Housing In Lieu Fees - Contract $30,000 Name: Services Account ii: Account ii: 380.50500.740.000 Name: Name: Account #: Account #: Name: Name: Account #: Account #: Name: Name: Account #: Account #: Name: Name: Account #: Account ii: Signature Pd~ASON FOR BUDGET CHg3qGE ENTRY: To fund feasibility study of a possible redevelopment of the P~royo Vista Affordable Housing Project. City Manager: Date: Signature ~roV~!d ~iit ci~ C~I Meeti g Date Mayor: Date: Signature Posted By: " Date: Signature ATTACHMENT