SYNOPSIS Sacramento Housing and Redevelopment Commission February 18, 2009 ROLL CALL The Sacramento Housing and Redevelopment Commission meeting was called to order at 6:00 p.m. by Chair Tom Burruss. PRESENT: Burruss, Chan, Dean, Fowler, Gore, Morgan, Otto, Shah, Stivers (two vacancies ABSENT: None STAFF PRESENT: Cindy Parker, La Shelle Dozier, Christine Weichert, David Levin, MaryLiz Paulson, Chris Pahule, Nick Chhotu, Cindy Cavanaugh, Greg Wessel, Geoffrey Ross, Jim Shields, Leslie Palmer, Greg Ptucha, Jeree Glasser-Hedrick, Richard Marsh, Sarah Hansen, Diane Luther, Geoffrey Ross, Katherine Klein-Mcfadden, Ray Ashby APPROVAL OF AGENDA The Chair announced that items #9 and #10 would be heard together and items #12 and #13 would be heard together. 1. APPROVAL OF ACTION SUMMARY SYNOPSIS The action summary for February 4, 2009 was approved with amendments recommended by Commissioner Shah. CITIZEN COMMENTS None CONSENT 3. Sacramento Enterprise Zone Application for Designation – City report 4. Sacramento Enterprise Zone Application for Designation – County report 5. 2008 MASS Submission—Approval of Management Assessment Subsystem Certification for the Sacramento City and County Housing Authorities * 6. Disposition and Development Agreement for 1120/1126 F Street and 614 12th Street 7. 7th and H Street Affordable Housing Development SHRC Synopsis February 18, 2009 The Commission recommended approval of the staff recommendation for the items listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Otto, Shah, Stivers NOES: None ABSENT: None BUSINESS 8. Greenfair Common Area Resolution of Necessity Greg Ptucha presented the item. He gave an update on the Greenfair Project which is located in the Greenfair subdivision at Broadway and Fairgrounds Drive. Commissioner Shah asked if the eminent domain action goes forward will compensation be paid to the homeowners. David Levin, SHRA legal counsel, responded that the United States Constitution states that just compensation has to be paid for the property. Commissioner Shah commented that the SHRA commission takes eminent domain very seriously. Commissioner Fowler discussed the letter from Shawna Placido Bell, a Greenfair resident, regarding her concerns about the proposed acquisition. LaShelle Dozier said that staff will respond to her letter and send a copy to the commissioners. Commissioner Otto questioned why negotiations broke down. Christine Weichert replied that the parties could not agree on a price for the property. Commissioner Chan expressed his concern regarding eminent domain. He questioned what the main issues were related to the Greenfair Project. Christine said the main issues were: 1) the number of units would replace the 170 demolished units, 2) the fact that SHRA would no longer be paying $14,000 a month in dues, and 3) it was believed that the land was worth more than the appraisal. The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Otto, Shah, Stivers NOES: None ABSTAIN: Morgan ABSENT: None SHRC Synopsis February 18, 2009 9. Implementation of the Neighborhood Stabilization Program; Approval of guidelines for activities to be undertaken as part of the Neighborhood Stabilization Program; Amendments to the 2009 One-Year Action Plan and SHRA Budget – City report 10. Implementation Of Neighborhood Stabilization Program; Amendments To The 2009 One-Year Action Plan And SHRA Budget – County report Geoffrey Ross presented the item. Commissioner Shah questioned how the dollars will be allocated between the three programs, which staff provided. Commissioner Shah also wanted to know the minimum qualifications for the pilot pre-foreclosure initiative. Geoffrey responded that the firms need staff to maintain units, a private equity investor, and construction teams to renovate the units as they fall into foreclosure. Commissioner Stivers asked for a report back on the program in six months. Commissioner Shah recommended that there be transparency about who SHRA is working with in the current Boarded and Vacant program so that current participants are not only ones qualified for the new programs. Commissioner Dean requested that the Commission be notified when staff has workshops regarding the new programs. Chair Burruss asked about non-profit participation. Chris Pahule indicated that staff anticipates that there will be non-profit participation in the Vacant Properties program. Commissioner Otto was concerned about “flipping properties”. Staff indicated that there are guidelines in place that will address this. The following citizens commented on the proposed Neighborhood Stabilization Program: Cline Moore, Build America Jim Knapp, Build America Constance Slider, Coalition on Regional Equity Tom Armstrong, developer, spoke in support of the Vacant Property Program. The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Otto, Shah, Stivers NOES: None ABSENT: None SHRC Synopsis February 18, 2009 11. Acquisition of Hotel Berry and Permanent Tenant Relocation Katherine Klein McFadden presented the item. Commissioner Dean expressed concern about whether or not the commercial space will be maintained. Katherine indicated that, as the new owner, SHRA will enter into an Assignment and Assumption agreement for the commercial lease and have all the obligations for the property which will include maintenance. Katherine confirmed for Commissioner Shah that there is an SRO Ordinance that keeps the property as affordable housing. Commissioner Morgan asked how long the hotel will be vacant. LaShelle Dozier indicated that it is not clear at this time and will largely depend on the economy. Commissioner Chan asked about provisions for tenants coming back to the hotel. Katherine indicated that tenants are being permanently relocated. Chair Burruss and Commissioner Stivers spoke in support of SRO housing in the City. William Burg spoke in support of the project during citizen comments. The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Otto, Shah, Stivers NOES: None ABSENT: None 12. Approval of Revised Multifamily Lending and Mortgage Revenue Bond Policies – City report 13. Approval of Revised Multifamily Lending and Mortgage Revenue Bond Policies – County report Christine Weichert presented the item. Darren Bobrowsky, from Capital Valley Investments, commented about his concerns related to recapitalization and the developer fee. LaShelle Dozier indicated that all projects will come before the Commission and Commissioners will have the opportunity to review the terms and conditions for projects as is currently the practice. Commissioner Stivers asked for an annual report back on how the prioritization of projects works out. SHRC Synopsis February 18, 2009 The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Otto, Shah, Stivers NOES: None ABSENT: None EXECUTIVE DIRECTOR'S REPORT La Shelle Dozier reviewed the following items: 1) Oak Park Status Report. 2) February 27th is the application deadline for the two commission vacancies. ITEMS AND QUESTIONS OF COMMISSION MEMBERS None ADJOURNMENT As there was no further business to be conducted, Chair Burruss adjourned the meeting at 8:23 p.m. AGENCY CLERK