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CC 1993 12-16 CITY OF POWAY, CALIFORNIA MINUTES OF THE CITY COUNCIL SPECIAL HEETING DECEMBER 16, 1993 The December 16, 1993, special meeting of the City Council of the City of Poway, was called to order at 5:08 p.m., by Mayor Higginson at the City Council Chambers, 13325 Civic Center Drive, Poway, California. COUNCILHEHBERS PRESENT AT ROLL CALL Mickey Cafagna, Susan Callery, Tony Snesko, Don Higginson C0UNCILNEMBERS ABSENT AT ROLL CALL Bob Emery STAFF MEMBERS PRESENT James Bowersox Marjorie Wahlsten Steve Eckis John Fitch Peggy Stewart Reba Wright-Quastler Warren Shafer David Narevsky City Manager City Clerk City Attorney Assistant City Manager Director of Administrative Services Director of Planning Services Director of Redevelopment Services Redevelopment Manager Also present were Assemblyman Jan Goldsmith and Tim Coyle, Director of the State's Department of Housing and Community Development. The purpose of the meeting was to discuss pending and proposed state legislation regarding housing. (701-11) City Manager Bowersox stated the laws are intended to provide housing but cities need flexibility that can reflect their differing conditions. For example, in Powaywe have diminished opportunities because of our topography. Assembly Bill 51 sponsored by Assemblyman Goldsmith would have given that flexibility. Unfortunately it was gutted and replaced with HCD's programs. He expressed a hope that Director Coyle would be able to give the Council some insight regarding that process. Assemblyman Goldsmith stated the current housing element system administered by HCD has been labeled "dysfunctional" by Liz Hill, legislative analyst. AB 764 would permit conversion of units to low and moderate income units and rehabilitation of units owned by low and moderate income persons to count as units toward the jurisdiction's goals. AB 51 would enable a jurisdiction financing construction in a neighboring jurisdiction to receive credit for the units. The League of California Cities opposed this legislation. HCDrequested a comprehensive approach by getting all the parties together including realtors and the construction industry. Director Coyle wanted to run their proposal by some cities and he suggested this meeting with the Poway City Council would be a good opportunity. 5O77 Page 2 - CITY OF POWAY - SPECIAL MEETING - December 16, 1993 Director Coyle stated that housing elements have become more of a process and less of something to solve the state's problems. The state's desire is to provide critical infrastructure to support improvement in economic viability. The demands for housing state-wide are huge. 250,000 units are estimated to be needed each year to provide for population growth and new household formation. Only 96,000 were produced in 1992. He agreed the law needs reform. It should be production-oriented. It needs to be flexible because 527 communities are not the same. Paperwork needs to be eliminated. Costs of development need to be reduced. Bruce Tarzy, 15912 Ranch Hollow Road, President of the Green Valley Civic Association, spoke in favor of flexibility and respecting the marketplace. Director Coyle stated the state's only concern should be "are you doing your share." Not how you're doing it. But you can't exempt an area from growth. In response to query from Councilmember Cafagna he stated that Poway needs to move the League's leadership in the direction we want to go. Council thanked both Assemblyman Goldsmith and Director Coyle for attending this meeting. ADJOURNMENT Mayor Higginson adjourned the meeting at 6:05 p.m. Marjorie.K. Wahls{en, City Clerk City of P~oway 5O78 CITY OF POWAY, CALIFORNIA MINUTES OF THE CITY COUNCIL ADOOURNED REGULAR MEETING DECEMBER 16, 1993 The December 16, 1993, meeting, adjourned from the December 14, 1993 regular meeting of the City Council of the City of Poway, was called to order at 6:10 p.m., by Mayor Higginson at the City Council Chambers, 13325 Civic Center Drive, Poway, California. COUNCILMEMBERS PRESENT AT ROLL CAll Mickey Cafagna, Susan Callery, Tony Snesko, Don Higginson COUNCILMEMBERS ABSENT AT ROLL CALl Bob Emery STAFF MEMBERS PRESENT James Bowersox Marjorie Wahlsten Steve Eckis John Fitch Peggy Stewart Warren Shafer David Narevsky PUBLIC ORAL COMMUNICATIONS Mayor Higginson explained the ~rocedure for Public Oral Communications. was no one present wishing to speak. City Manager City Clerk City Attorney Assistant City Manager Director of Administrative Services Director of Redevelopment Services Redevelopment Manager There 'iTEM 3 (1601-11) POWAY ROYAL ESTATES RENT STRUCTURF Jeff Beers, Chairman; Bill Cross; Larry Quate; Linda Oravec; Linda Harkleroad; and Richard Bentley were present from the Housing Commission. Item introduced by City Manager Bowersox. The City Council requested a joint meeting with the Housing Commission to discuss proposed rents at Poway Royal Estates as a result of reviewing alternatives to the proposed five percent rent increase scheduled for January 1, 1994. He reminded the Council that Mr. Coyle, Director of California's Housing and Community Development Department stated we need to meet the needs of low and moderate income families. That is why the Redevelopment Agency bought Poway Royal Estates. By the late 1980's people were in danger of losing their homes because of rent increases by the owner. The Agency issued bonds to use for financing, knowing that there would be a negative cash flow but with an annual rent increase built into the financing plan. 5079 Page 2 - CITY OF POWAY ADJOURNED REGULAR MEETING - December 16, 1993 Staff report by Redevelopment Director Shafer. He stated there are three goals in the Agency's ownership of the mobile home park: 1) maintain affordability; 2) place the owners on a rental rate plan similar to Poinsettia's whereby rent increases are the CPI to a maximum of 5%; and 3) stabilize the rents. In order to meet these goals Agency staff has been working on two major areas. The first has been to lower debt payments by refinancing the existing bonds. The second is to use low/moderate income housing fund to acquire a portion of the Park. In order to use these funds there must be deed restrictions limiting the income levels of households residing in the housing units directly assisted by housing funds. This also limits resale to persons qualifying as affordable income earners. This may not be as onerous as it appears since a family of four with an income of $52,700 is moderate. Those residents that do not qualify by income and do not wish to deed restrict their unit will continue to pay a 5% annual rent increase. Those signing the deed restriction will have an 2.8% increase in May, 1994 and approximately 3% in January, 1995. Staff did meet with the park residents last week to explain the process. City Manager Bowersox stated that staff will be coming to Council for authorization to refinance the debt and a recommendation on how to modify the Redevelopment Agency's budget. In response to a query, he stated that the percentage of units that meet the income test is the percentage of the park that can be purchased using low and moderate funds. However, units that don't qualify by income can still receive the reduced rent increases if they agree to deed restrict their unit. There could be an open enrollment each year prior to the rent increase for anyone who doesn't choose to deed restrict at this time. Residents present who had questions included: Andrew Nowicki, 13227 Dana Vista Andy Pitcher, 13031 Corona Chip Cochrane, 13217 Alpine Pat Palmer, 12829 E1 Rey Vista Council and staff concurred there are sections of the resale agreement that needs clarification. Motion by Councilmember Snesko, seconded by Councilmember Callery to have staff prepare reports that would authorize the refinancing of Poway Royal Estates and utilize the Housing Fund to purchase a portion of the mobile home park; and circulate the resale agreement to the residents. Motion carried 4-0 with Councilmember Emery absent. RECESS AND CALL TO ORDER Mayor Higginson recessed the meeting at 7:20 p.m. and called it back to order at 7:25 p.m. with all Councilmembers present except Councilmember Emery. 5080 Page 3 - CITY OF POWAY ADJOURNED REGULAR MEETING - December 16, 1993 ITEM 4 DISCUSSION WITH HOUSING COMMISSION REGARDING GOALS AND DUTIES Assistant City Manager Fitch and Redevelopment Manager Narevsky reviewed what the Housing Commission has done since they were appointed in January, including touring each facility, dealing with the Poway Royal issues, considering applications for rent subsidies, assisting in preparation of the 1993-94 budget; and acting as a sounding board for various complaints in the mobile home parks. Mayor Higginson commended the Commission for their work noting they have a lot of responsibility and authority and are dealing with very emotional issues. Chairman Beers suggested they meet with some other Housing Commissions to see how they do their job in order to gain some perspective. Council and Commission discussed several issues including meeting attendance requirements for Commissioners; and training park personnel to document complaints and provide the paperwork the City Attorney needs for any enforcement. ADJOURNHENT Mayor Higginson adjourned the meeting at 8:35 p.m. on motion by Councilmember Callery, seconded by Councilmember Cafagna. Marjori~,K. Wahlsten, City Clerk City f~oway 5081