2003-12-17
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MINUTES OF THE JOINT SPECIAL MEETING OF THE ENCINITAS HOUSING
A UTHORITY AND THE ENCINIT AS CITY COUNCIL
DECEMBER 17, 2003, 6:00 P.M, 505 SOUTH VULCAN A VENUE
CALL TO ORDER/ROLL CALL
Since this was a Joint Special Meeting with the Housing Authority and the City Council,
Housing Authority President Houlihan, called the meeting to order at 6:07 P.M.
Present:
President Maggie Houlihan, Board Members James Bond, Beatrice Crepeau, Dan
Dalager, Christy Guerin, and Jerome Stocks.
Absent:
Housing Authority Board Member Lupita Chavez.
Also
Present:
Board Manager Miller, Board Attorney Sabine, Board Clerk Cervone, Planning
and Building Director Murphy, Housing & Grants Analyst Mills, Finance
Manager Lembach, and Deputy Board Clerk Greene.
There being a quorum present, the meeting was in order.
PLEDGE OF ALLEGIANCE
PRESENTATION
President Houlihan presented a Certificate of Excellence to Housing & Grants Analyst Mills
recognizing her outstanding service to the City for the past 7 years. Ms. Mills will be leaving the
City for a position with the San Diego County Housing Authority.
CLOSING AND ADOPTION OF THE HOUSING AUTHORITY
CONSENT CALENDAR
ACTION:
Bond moved, Guerin seconded to close and adopt the Consent Calendar. Motion carried.
Ayes: Bond, Crepeau, Dalager, Guerin, Houlihan, Stocks; Nays: None; Absent: Chavez.
HI.
Approval of Minutes: 05/14/03 Special Meetine. Contact Person: Board Clerk
Cervone.
STAFF RECOMMENDATION: Approve Minutes.
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12/17/03 Joint Special Housing Authority Meeting
H2.
Consider amendine the Section 8 Administrative Plan to reflect chanees in federal
reeulations and to improve administration of the Section 8 proeram. Contact Person:
Housine & Grants Analvst Mills.
STAFF RECOMMENDATION: Adopt the recommended amendments to the
Section 8 Administrative Plan.
JOINT HOUSING AND CITY COUNCIL REGULAR AGENDA
ill.
Approve permanent financine and ownership arraneements for the Pacific Pines
affordable units bv: approvine City Council Resolution 2003-75 and Housine
Authoritv Resolution 2003-01 authorizine the execution of a loan aereement with
Southwest Community Bank and transfer of title of the Pacific Pines units to the
Encinitas Housine Authoritv for an interim period: and authorizine the establishment
of a non-profit corporation for purposes of holdine permanent title to and assumine
the debt of the units. Contact Person: Housine & Grants Analvst Mills and Finance
Director Browder.
Housing & Grants Analyst Mills reviewed the report stating that in March 2003, the City Council
approved a plan for acquiring units at the Pacific Pines Condominiums to be preserved as
affordable housing. The City assisted 18 households in all; two were assisted to purchase their own
units, and sixteen are currently owned by the City and occupied by low income households.
The City Manager was authorized to negotiate and execute any contracts necessary to carry out the
plan and in September 2003, an RFP was issued to financial institutions and underwriting firms to
finance acquisition costs not covered by grants.
Ms. Mills said that Southwest Community Bank submitted the most favorable proposal, offering a
term of30 years with an interest rate at 90% of the 10 year U.S. Treasury adjusted every six years
at the same spread to the 10 year U.S. Treasury. The acquisition of 16 units was completed in
October 2003, at a total purchase price of $3,899,400. Currently, borrowing approximately $1.9
million was anticipated to cover the portion of costs not funded by grants, as well as bank, legal and
other related fees.
Ms. Mills advised that the City of Encinitas establish a non-profit corporation under Section 501-
c(3)the Internal Revenue Code that would hold title to the condominiurn units. The bank indicated
that ownership could be transferred during the loan term incurring only documentation costs and
the application process for non-profit tax exempt status could take approximately six month.
The staff recommendation was to:
1.
Authorize the transfer of title of the Pacific Pines units from the City of Encinitas to the
Encinitas Housing Authority.
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12/17/03 Joint Special Housing Authority Meeting
2.
Adopt City Council Resolution 2003-75 and Housing Authority Resolution 2003-01
authorizing the execution of a loan agreement with Southwest Community Bank.
Authorize staff to begin processing the establishment of a non-profit corporation and
application for tax exempt status in order to transfer ownership of the Pacific Pines
condominiums from the Housing Authority to the non-profit corporation.
3.
ACTION:
Guerin moved, Bond seconded to approve the staff recommendation as listed above. Motion
carried. Ayes: Bond, Crepeau, Dalager, Guerin, Houlihan, Stocks; Nays: None; Absent:
Chavez.
ADJOURNMENT
President Houlihan declared the meeting adjourned at 6:20 P.M.
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te~:~::~::~d Clerk
By: Kathy Greene,
Deputy Board Clerk
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