PUBLIC HEARINGS/GENERAL BUSINESS

A.     Council Member Otto Lee and City Manager Amy Chan on City’s Philosophy, Guiding Principles, Finance Responsibility

On behalf of the Commission, Chair Steward welcomed City Manager Amy Chan.

Amy Chan, City Manager, welcomed the new members of the Housing and Human Services Commission and thanked those who have been with the Commission.  She gave an overview of the City’s philosophy and financial state.  She noted that achievement goals are given by the City Council. She reported that the 20-year budget is in a much better position, the budget gap has shrunk, that there are two Ballot Measures for November to increase Business License and Transient Occupancy Tax, the policy update of Planning and Management Systems (PAMS) is underway, continuous work improvement, embracing innovation, technology as a strategy, cost efficiency and an increase focus on customer service.  She is pleased with the excellent city staff. She encouraged the Commission to express their concerns and to be the voice of the public.  She thanked the Commission for their time and commitment. 

Councilmember Lee joined the meeting at 7:18 PM. 

 Councilmember Lee thanked the Commission for their service.  He noted that there used to be 19 members on the HHSC, then down to 15 and currently a nine-member Commission.  He acknowledged the challenges that they go through in making recommendations on the CDBG funding allocation to different agencies.  He encouraged them to recruit more members.  He also noted that it would be informative to have a joint meeting with the City Council.

The Commission members questioned Councilmember Lee and the City Manager about the budget gap, the proposed measures, possible service cuts and affordable housing.

The City Manager noted that Annabel Yurutucu made a presentation to City Council on the City’s housing programs and that staff will share this information with the Commission. 

B.     Welcome and Introduction of New Commission Members

Chair Steward introduced and welcomed the new members of the Commission – Commissioner Charles Keeler and Commissioner Patrick Meyering.

C.     Annual Review of the Code of Ethics

Chair Steward commented on some of the principles of the Code Ethics and encouraged the Commission to uphold them.  The Commission discussed and clarified the principles. 

 

The Commission has no comments on the Code of Ethics.

D.     Review and Recommendations Regarding Application from Charities Housing for a First Time Homebuyer Project

Annabel Yurutucu, Housing Officer, gave an overview of the group highlighting its accomplishments and a national award, from the National Building Association, for the Stoney Pine Project.  She also gave an overview of the proposed project. She introduced Chris Block and Dan Woo of Charities Housing.

Chris Block of Charities Housing gave an overview of the proposed six-unit homeownership development.  He reported that the agency met with the neighbors and had received favorable responses.  He presented the advantages and goals of the project which include providing affordable housing and meeting the city’s housing goals while providing an opportunity for the creation of wealth to low-income families. 

Dan Woo of Charities Housing presented the project’s financial resources, economic feasibility and possible resources afforded to potential buyers. 

The Commission asked staff and the agency about the buyers’ financing resources, city’s subsidy assistance, development assistance, funding resources and construction costs.

The Commission further discussed the advantages and disadvantages of the project, its design, innovation and its benefits to the city.

Staff noted that the recommendation is whether the City should subsidize the project.  The specific amount of funding recommendation will be presented to the City Council in October.  She noted that the subsidy would be from HOME funds and the Housing Mitigation Fund.  She noted the advantages of the project, and the benefits to the city while augmenting the city’s affordable housing supply.

There was considerable discussion regarding the appropriation of funds.  Vice Chair Callan expressed concerns,both in public perception and value related to the amount of investment that would provide benefit to a limited number of beneficiaries.  However, after further discussion and an understanding that these funds will be returned to the City for re-use and noting that the funds would be under an equity participating agreement, all felt supportive of this project.

 

Comm. Persyn made a motion to recommend to City Council the use of HOME funds and Housing Mitigation Fund for the development of the First Time Home Buyer Housing project to be developed by Charities Housing.  Comm. Seshadri seconded.

Comm. Persyn commented that it is an interesting and innovative project providing affordable housing in the City.

Comm. Seshadri concurred and added that the project will provide an opportunity for new home buyers and for the creation of wealth.

Vice Chair Callan supported the motion.  He added that the project will complement the BMR program by providing home ownership opportunities.

Chair Steward supported the motion.  He added that the recommendation is the initial step and that there will be an opportunity to make suggestions as the project progresses. 

 

Motion carried unanimously 6-0.

Annabel Yurutucu noted that upon approval of the project by Council, the project will most likely come back to the Commission to review recommendations on buyer selection criteria and process.

E. Update on the CDBG Initiative

Annabel Yurutucu, Housing Officer, updated the Commission on the status of funding noting that management of CDBG will remain at HUD and that the funding for FY 2006-2007 allocation will also remain at its current level.  She noted that the big battle to preserve CDBG has been fought effectively.

NON-AGENDA ITEMS AND COMMENTS

·         Commissioners Oral Comments

Chair Steward asked staff about a potential study issue for 2006 on soliciting capital projects. Staff responded that a study issue paper will be generated.

·         Staff Oral Comments

None

INFORMATION ONLY ITEMS

None

ADJOURNMENT

Chair Steward adjourned the meeting at 9:51 PM.

Respectfully submitted,

Annabel Yurutucu

Housing Officer