1995-08-29 (Report)
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CITY OF ENCINITAS
AGENDA REPORT
HOUSING AUTHORITY
Workshop Date: August 29, 1995
TO:
Board of Commissioners
VIA:
Lauren M. Wasserman
Secretary of the BoardlExe tive Director
FROM:
Community Development Department
Sandra L. Holder, Community Development Director
Lynn Brown, Housing and Grants Coordinator r'"
SUBJECT: Purpose of the workshop is to review background infonnation regarding the
establishment of the Housing Authority.
ISSUE: Discuss the establishment and the goals of the Housing Authority.
BACKGROUND:
On September 15, 1993, the City Council authorized staff to proceed with steps to establish a housing
authority as a tool for addressing housing needs in the community. The enabling resolution was
passed on January 26, 1994. The five year workplan was adopted on June 16, 1994. The workplan
was incorporated into the Five Year Consolidated Strategic Plan which was adopted in May 1995.
On March 22, 1995, the Board established a Housing Subcommittee with a mission to evaluate the
ownership options for the acquisition program. The subcommittee met with housing consultant, Jim
Williams, to review the ownership options. The subcommittee also recommended having a
workshop to review with the entire board the original decision of establishing the housing authority.
ANALYSIS: None
FISCAL AND STAFF IMPACTS: None
RECOMMENDATION: None
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WORKSHOP
TABLE OF CONTENTS
Item 1.
. September 15,. 1993, City Council Agenda Report - Authorize establishment of
Authority 1- Lf
. October 13, 1993, City Council Agenda Report - Approve funding project to
establish Housing Authority and designate Council Members to visit other
authorities. J... J (!)
.
January 26, 1994, City Council Agenda Report - Enabling Resolution
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Item 2. Five Year Consolidated Strategic Plan ~ - 2...
Item 3. Summary of Subcommittee Meeting with Jim Williams, Housing Consultant 3 - .:LJ
.
Implementation Steps
.
Role of Housing Authorities: California Housing Authority Association
.
Activities of Local Housing Authorities: League of California Cities
.
Functions of a Housing Authority
.
Use of Housing Authorities by Cities in San Diego County
Background 4.
Low Income Tax Credits
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.
.
.
Federal and State Low Income Tax Credi~, Goldfarb & Lipman.
Proposed Changes to the Allocation Process
Target Areas in San Diego County
Allocation Process
Background 5. Escondido Study
.
Comparisons of Affordable Housina Strateaies: New Construction and
ACCluisition/Rehabilitation
Background 6. Articles on Low Income Housing Production in:
Coronado
Escondido
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"Boldly Forward"
PART 1.
.. September 15,. 1993. Agenda Report - Authorize establishment of Authority
.. October 13, 1993. Agenda Report - Approve funding project to establish
Housing Authority and designate Council Members to visit other authorities.
.. January 26, 1994. Agenda Report - Enabling Resolution
.. Implementation Steps
.. Role of Housing Authorities: California Housing Authority Association
~ Activities of Local Housing Authorities: League of California Cities
.. Functions of a Housing Authority
.. Use of Housing Authorities by Cities in San Diego County
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CITY Of: ENCINITAS
AGENt)A REPORT
Meeting Date: S;eptember 15, 1993
TO: City Council
VIA: ~~ arren H. Shafer, City Manager
FROM; , AatriCk Murphy, Community Development Director D~
Lynn Brown, Housing and Grants Coordinator r-
-811BJECT:
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Consider the establishment of a Housing Authority for the purpose of providing affordable
housing in the City.
IS$.UE:
Whether to establish a Housing Authority.
BACKGROUND:
On July 21, 1993, the Council conducted a workshop on the pros and cons of
establishing a housing authority. A Housing Authority is another tool which the City can
use to address the housing needs our community faces.
ANALYSIS:
A Housing Authority is an agency established by the local government for the purpose
of providing low income housing. It has its own by-laws and personnel regulations. It is
governed by a Board of Directors appointed by the City Council. The Council can
appoint themselves, other citizens, or a combination. The agency must be revenue
driven. It cannot be a tax burden on the public. It must be self supporting and all
surpluses must go to aid low income housing.
A housing authority is a tax exempt agency and pays n(l property tax. However, the
Authority can have an agreement with the City to pay c= "sum in lieu.' of taxes which
provides revenue to only the City in contrast with property tax which is split between
County, State, and districts.
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A housing authority facilitates low income housing in a variety of ways. (See Attachment
A) The authority raises funds for housing through grants from the federal and state
government, issuing bonds, and/or market rents. The authority funds its own
administration at no cost to the City.
Steps the City would take to establish a housi~g authority are listed on Attachment B.
The first step starts with designating a CDBG project sod finishes with an approved work
plan.
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One of the questions which arose after the workshop was the impact of Article 34 which
requires a vote of the public for the City to own or build public housing. (See Attachment
C which previously addressed the question.)
There are several advantages in using a housing authority to achieve the goals in the
CHAS and Housing Element. The City only has CD8G and HOME funds which are fairly
small to assist with the production of low income housing. A housing authority through
their powers to issue bonds can leverage the money to produce 10 times the available
amount. These funds could then be used to buy real estate for low income housing. It
would provide the City with a flexible effective tool for leveraging limited funds. When
issuing bonds, typically over $3 million in bonds are needed to make it financially feasible.
The City maintains control of the low income housing stock so the housing remains a
benefit for low income citizens and a compliment to the quality of life in the City. The City
has a tool for assisting deteriorating neighborhoods through purchasing units, upgrading
them and controlling tenants.
There are 7 housing authorities in the County: County, Carlsbad, Oceanside, Poway,
National City, San Diego, and Chula Vista. Oceanside and San Diego have issued
housing authority bonds. National City and Chula Vista have used the redevelopment
agency to build housing. Cailsbad only administers Section a.
The City of Upland's Housing Authority (which is close to Encinitas in size and income
levels) has doubled the low income housing inventory with no federal funds through
issuing housing authority bonds. They are presently working on a new construction
senior project. Riverside County Housing Authority has used bonds in a similar manner.
Fresno and Santa Barbara have also used their housing authorities to produce new units.
Ventura County Housing Authority is in the process of issuing bonds.
The following are alternatives which the Council could consider:
1. Establish housing authority as proposed.
2. Establish a housing authority with limited responsibility. The establishment of
an authority only gives the Council a tool to utilize as much or as little as the
Council chooses.
3. Do not establish a housing authority.
FISCAL AND STAFF IMPACTS:
The CDBG Low Income Housing Fund has $340,761. Estimated cost to establish the
Authority and develop a five year strategy is $20,000. Money used to leverage the
issuance of bonds could come from the remainder of the fund depending on the five year
strategy.
RECOMMENDATION:
Council authorize staff to proceed with steps to establish a housing authority.
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ATTACHMENT A
FACTS ABOUT HOUSING AUTHORITIeS
FUNCTION~
A housing authority can facilitate affordable housing in a variety of ways. It has a great
deal of flexibility in how it increases the low income housing stock or assists low incom~3
households. The following list provides some examples but is not all inclusive.
1. Rental Assistan~ The authority can administer Section 8 Certificates for the federal
government thereby providing rental assistance to households who then rent in tt1e
private market throughout the City.
2. Build new units. The authority can issue housing authority bonds, build comple:I<es
and rent to at least 20% low income. Authority can either manage or contract. for
management of units.
3. Purchase existing units. With the use of funding from housing bonds, authority can
purchase deteriorating properties, rehabilitate them and either sell or rent. The authority
can buy single family units and assist first time home buyers with lower prices.
4. Prevent homelessness. The authority could assist home owners who are threatened
with the loss of their home by buying the house, renting it to the former owner, and then
selling it back to the owner when their financial circumstances improve.
FUNDING FOR HOUSING
Funding for housing can come from a variety of sources but the most common are:
1. U.S. Dept. of Housing and Urban Development provides funding for rental assistance
through Section 8 Certificate/Voucher program and for new construction through
conventional public housing.
2. Housing authority bonds are tax exempt bonds issued to purchase housing whichfh;.
authority owns. CDBG funds can be leveraged to produce 10 times the amount in bonds.
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FUNDING FOR ADMINISTRATION
1. Both Section 8 and Public Housing provide funding for administration as part of the
program. On 50 certificates the Authority would receive approximately $27,000 to
administer the certificates. 1/2 FTE administers 50 certificates. The County of San Diego
presently administers 50 certificates for households living in the City.
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2. Bonds include funds for administration and management of project.
3. COBG funds ca.n be used for housing development.
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ATTACHMENT 13
Steps to establish housing authority~
1. Designate setting up a housing authority as a CDBG project and fund related cost for
attorney, consulting, and initial administration from COSG Low Income Housing Fund.
Cost is approximately $20,000 for attorney and consulting.
2. Contract with attorney to develop enabling resolution, by-laws and personnel
regulations. Council approve documents and establish authority.
3. Set up authority with director and clerical support. (Costs funded out of CDSG Low
Income Housing Fund.) Staff could be City staff utilized part time but not paid from
General Fund.
4. Contract with consultant to work with staff to develop a five year plan/strategy
determining housing programs with specific objectives, such as, "purchasing x units of
family rental housing, providing x units of single family CJwnership, building x units of
senior housing". The strategy would address City housing laoals. Consultant would assist
with bond issuance and applications for Section 8 certifit;ates.
5. Housing Authority Board approve work plan. Staff would then implement plan and
obtain funding.
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ATTACHMENT C
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CITY OF ENCINITAS
INTEROFFICE HEHORANnUH
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TO:
Warren H. Shafer, city Manager
City council
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Patrick Murphy, community Development Direcfor
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Lynn Brown, Housing and Grants Coordinator
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DATl!: :
SUBI:J'EC'f :
August 31, 1993
Article 34 and Housinq Authority
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Aftler' the County brought up the question of Article 34 at the
Gou:ncil workshops last night I contacted Roland Camfield for
cla:r if ication.
It the Housing Authority builds a conventional public housing
project with HUD money, Article 34 which requires a vote ot the
people approving the low income housing applies.;. ,:..:.~~;,:<;.,,< 0,;'"
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If the Housinq Authority owns a project that specifies that no more
than 49' of the project is for low income, then Article 34 does not
apply. Under California Constitution the housing authority
determines what is the definition of low income. However, there
are other state statutes which specify various definitions of low
income usually 80' of median and below. ....~.;-'~t:~::~..'\,'I'." .:.'
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Therefore, in the example Roland gave when the housing authority
owns the complex and by the even year has to have at least 20' low
income tenants in all their housing, Article 34 wouldn I t apply
because 51' of the tenants are not low income. ~.
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CITY OF ENCINIT AS
AGENDA REPORT
Meeting Date: October 13, 1993
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TO: City Council
VIA:~f:lwarren H. Shafer, City Manager
FROJ' j Maatrick Murphy, Community Development Director
VJI~ynn Brown, Housing and Grants Coordinator
SUBJECIi
Consideration of establishing a City Housing Authority with Affordable Housing Funds,
and determine which Council members to select for visits to other housing authorities.
ISSUE:
1. Whether to approve project to establish City Housing Authority with' Affordable
Housing Funds from the recently approved mortgage revenue bonds, and
2. Determine which Council members to be designated as representatives to visit
other housing authorities.
BACKGROUND:
On July 21, 1993, Council conducted a workshop on housing authorities. On
September 15, 1993, Council authorized staff to proceed with steps to establish a
housing 21~Jthority. Council also requested that Council representatives and staff visit
several hou~ing authorities to review both administrative practices and housing
projects.
ANALYSIS:
Attachment A identifies the proposed project to establish a City Housing Authority
using Affordable Housing Funds. The Affordable Housing Fund was recontly
established as a result of the funds received from the mortgage revenue bond sale for
the Torrey Pines Racquet Club apartments. The estimated cost for establishing the
Housing 'Authority is $21,000 which covers consulting costs for establishing the
Housing Authority, preparing a 5 year Housing Authority Plan, and travel expenses to
visit other housing authorities. .
There are some advantages in using the Affordable Housing Fund for establishing the
Housing Authority. No federal regulations would be attached to the funds. In
cdlllb/.rlOI393.ccl (09/29193)
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addition, the funds received from the Council approved mortgage revenue bonds
would have an immediate ::j'.i< to establishing a mechanism to assisting a';~d
accomplishing other low ir..:ome housing units. Once the Housing Authority
establishes the 5 year plan, the specific projects can then be funded out of the
Community Oevelopment Block Grant (CDBG) program.
As an option to using the Affordable Housing Fund to establish the Housing Authority,
the Council cal, use COSG funds. In order for the project to be eligible for COSG
funds, the project needs to provide a direct benefit for low income households. In
order to meet COSG requirements a budget and project description would nsed to be
expanded. For example the project description could include establishing a housing
authority and the acquisition of property, or rehabilitation of units.
Attachmant A identifies two funding options. The process and the description of
tasks for each option slightly varies depending on the funding source selected. The
two options are identified as Affordable Housing Fund Housing Authority Project and
COSG Housing Authority Project.
Staff Is also suggesting three trips to housing authorities in order to give the most
diverse view of administrative structures and housing projects. There would be. a trip \':';'
to Ventura County, to Upland with a side trip to Palm Dessert, and to Calexico. Once
Council representatives are selected and available trip dates determined, staff will
arrange for meetings and tours with the housing authorities.
FISCAL AND STAFF IMPACTS:
There will be no increase in staff time. The balance in the Affordable Housing Fugd
is approximately $33,000. The balance in the COSG Low Income Housing Fund is
$340,761.
.BE.C.OMMENOA TION:
G
Approve project establishing a Housing Authority with the Affordable Housing Funds
and select representatives for visits to housing authorities.
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ATTACHMENT A
Funding Option 1.
Affordable Housing Fund Housing Authority Project.
Estimated Cost: $21,000
1. Staff Issue Request for Bids for consultant to prepare all legal documents for the
establishment of the housing authority and to provide expertise in the development
of a five year plan for the housing authority.
2. Staff select consultant and proceed through required legal steps for establishment
of the authority.
3. After authority is established staff and consultant will conduct workshops with the
Council to assist with preparation of 5 year housing authority plan.
4. After the Housing Authority Board approves the five year plan, any additional
staffing and related budget necessary for implementation will be determined by the
Housing Authority Board.
AFFORDABLE HOUSING FUND HOUSING AUTHORITY PROJECT
TASK COST SOURCE
1. Establish Resolution, By-Laws and $1,000 - $5,000 Affordable
Regulations (consultant) Housing Fund
2. Prepare 5 Year Housing Authority $15,000 Affordable
Plan (consultant and City) Housing Fund
3. Travel Expense to Visit other $1,000 Affordable
Housing Authorities Housing Fund
4. Implementation of 5 Year Plan. Depends on 5 CDBG
Year Plan
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Estimated Cost: $290,000 - ($21,000 to establish housing authority and .269,000
for land acquisition) .,. '1,: .' ..' ;?i '.'::~.,,' ..... . J~';,. ,:~'.:'):
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1. Staff Issue Request for Bids for consultant to prepare all legal documents for the '
establishment of the housing authority and to provide expertise in the development
' of a five year plan for the housing authority which would assist In the acquisition of
land and/or units, or purchase land and/or existing units. ... ". ~:~:~;-~:;~" .
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2. Staff select consultant and proce~d through required legal steps for e.~abli.hment .
of the authority ','" '1..'.' ' '.',.J!.'f.......,.. "~.". ' ,;..~".",.' .'" ' ., ,. ,"",.." "~,. h'.. ,,1',:."
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3. After authority is established staff and consultant will conduct workshops with the
Council to assist with preparation of 5 year housing authority plan.~',:'
4. After the Housing Authority Board approves the five year plan, any' ~dditional
staffing and related budget necessary for implementation will be determined by the
Housing Authority,Board. :<\.;6, '. ...,;,~.~..' '.:" ",C ~:~ .
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5: Land and/or existing units will be purchases for low income housing
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'.;.".,W';;,', :' ,_:; TASK ":,!~~;!ii$~:';'~~>';~ <~i::iCOST ">~' 1'SOURCE
1. .Establish Resolution, By-Laws and ,~1,000 - $5,000 COSG "'::~&L."
Regulations (consultant) ,', .:.'. .~:;;~j}..-'['
2. Prepare 5 Year Housing Authority $15,000 COSG :1~',
Plan (consultant and City) "~...~~~,~
3. :.Travel Expense to Visit other' '. ::'. $1,000 -:. }; x, COBG ..:J~~::~ ....
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4. {L8nd Acquisition" ":"i~:.'~;;~;" :F,-:.',. $269,000 '.;'. COBG '''K~~~:~t:
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CITY OF ENCINITAS
AGENDA REPORT
Meeting Date: January 26, 1994
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TO: City Council
VIA:
FROM:
U Murray L. Warden, City Manager
~ommunlty Development Department
'{H ~_atrlck Murphy, Director /i 01J--
Lynn Brown, Housing and Grants Coordinator T'"
SUBJECT:
Determination of the need for a Housing Authority to function within the City and
consideration of enabling resolution.
JSSUE;:
Whether to adopt the enabling resolution reflecting housing authority structure selected.
BACKGROUND:
On July 21, 1993, the Council conducted a workshop on the pros and cons of
establishing a housing authority. On September 15, 1993, the Council authorized staff to
proceed With steps necessary to establish a housing authority. A Council Subcommittee
and staff have been visiting various housing authorities to research effective organizations.
State law provides that in every city there exists a Housing Authority with broad powers
to address the city's housing problems. A city's Authority becomes fum:tional upon
adoption of an enabling resolution. The standard to be met for enabling a city authority
is set out by State Statute and requires only that the City Council declare that there is a
need for a city authority to function. That need has been demonstrated by the City's
Housing Element and by the CHAS (Comprehensive Housing Affordability Strategy).
ANALYSIS:
Council is presented with three options represented by a resolution for structuring the
authority. These are:
1. Council appoint a separate Board of Commissioners. If a separate Board is
chosen, its Commissioners must be appointed for staggered terms. Two tenants
must be on the Board. Specific types of appointments, such as an architect, can
be designated to assure appointment of Commissioners with knowledge in the
housing field.
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2. The City Council itself act as the Board of Commissioners. If City Council
chooses to constitute itself as the Board of Commissioners, the terms of the City
Council members' elected terms will control. Two (2) tenants must also serve on
the Board of Commissioners. The tenants must be appointed as soon as there
are any tenants.
3. City Council act as Board of Commissioners with an Advisory Commission. To
lessen the workload on the elected officials when they constitute themselves to be
the Board of Commissioners, state law provides for the additional creation by
separate ordinance of a Housing Advisory Commission to which the Board of
Commissioners can delegate many of its responsibilities. In such case, the
required tenant commissioners may serve on the Advisory Commission.
Housing authorities are the only entities of government which ~ operate every year
with a balanced budget which is revenue-driven. Housing authorities have no power to
levy taxes. Accordingly, all housing programs are designed to be self-sufficient and
require no additional local appropriation for their operation.
The City Authority will have broad financing powers to undertake the increase in housing
stock within the City through syndications, bond issuances and participation in Federal
and State housing programs.
The Authority should be formed and operating as close as possible to May 1994 in order
that an application can be filed for the first round of Section 8 certificates. With
establishment of the Authority the County of San Diego Housing Authority will no longer
maintain any Encinitas residents on a waiting list. The City could use the list of Encinitas
residents for the recently received HOME grant ($160,097) which can be used for rental
assistance. However, as Encinitas residents will no longer be eligible for County
assistance, the Housing Authority may want to strongly consider applying for a Section
8 program as part of the E.H.A. Plan.
The City of Chula Vista is establishing a housing authority and is facing a similar issue
with the County. Also Vista is considering establishing a housing authority. Encinitas
may, in conjunction with the other two cities, be able to negotiate a timetable which would
not automatically remove all the cities' residents from the County waiting list.
Start-up costs, such as application preparation for federal programs, for the Authority can
be made available through CDBG as an eligible expenditure. At present CDBG
administration funds are being used for staff time on housing development.
State statute permits the authority to contract with the City for staff services. Most
authority positions find a counterpart position in cities except for an occupancy specialist
for a Section 8 program which would have to be hired or contracted for separately.
Authority staff could also be hired and function separately from the City.
RECOMMENDATION:
Determine need, select and adopt enabling resolution to activate housing authority.
cd/glb/sr012694.cc2 (12/28/93)
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SUBJECT:
CITY OF ENCINITAS
INTEROFFICE MEMORANDUM
~~ity counoillcity Hanaqar
~,~.atrick Murphy, community Development Director
Lynn Brown. Housinq and Grants Coordinator ~
January 20, 1994
Resolution EstabliShing Housing Authority
TO:
VIA:
PROH:
DATE:
Three options are presented for structuring the Housing Authority:
1. Council appoint separate Board of commissioners. Specific
requirements for commissioners are outlined in the resolution.
2. Council act as Board of Commissioners.
3. Council act as Board and appoint an Advisory Commission with
authority and responsibility as determined by the Board.
Resolutions attached are for options 1 and 2. Option 3 would use
resolution for option 2 and additionally require the passaqe of an
ordinance establiShing the Advisory Commission.
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RESOLUTION NO. 94-04
OF THE CITY COUNCIL OF THE CITY OF ENCINITAS
DETERMINING THE NEED FOR A HOUSING
AUTHORITY TO FUNCTION WITHIN THE CITY
WHEREAS: The City's Housing Commission has conducted activi-
ties regarding the supply of affordable housing in the city. The
City Staff has developed the Comprehensive Housing Affordability
Strategy which involved community discussion, extensive research
on the part of members of city staff, and the testimony of
various experts in the field of affordable housing. Non-profit
housing groups have contributed information to the city and other
local governments have been visited.
WHEREAS: The results of the Comprehensive Housing Afford-
ability Strategy confirm that there is a shortage of habitable
affordable housing in the City which is available at affordable
rentals.
WHEREAS: The City staff has presented its separate report
recommending the activation of City Housing Authority.
WHEREAS: Division 24, Part 2, Chapter 1 of the Health and
Safety Code of the state of California (the "Housing Authority
Law") has created in the City of Encinitas a latent Housing
Authority which needs only appropriate action from this body in
order that it may function.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ENCINITAS AS FOLLOWS:
I. FINDINGS OF FACT
1. The Council finds that there is a shortage of safe or
sanitary dwelling accommodations in the City available to persons
of low i.ncome at rentals they can afford.
2. The statutory powers given to housing authorities in
accordance with the Housing Authority Law are unique and will,
when exercised, help solve the shortage of safe or sanitary
dwelling accommodations which are available to persons of low
income at rentals they can afford.
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II. DECLARATION
1. There i5 in the City of Encinitas a public body, corpo-
rate and politic, known as the Housing Authority of"the City of
Encinitas.
2. This Council being the governing body of the City of
Encinitas, state of California hereby declares that there is need
for the Housing Authority of the City of Encinitas to function in
the city.
III. ORDER
It is declared, pursuant to Section 34290(a) of the Health
and Safety Code, that the City Council of the City of Encinitas
is the Board of Commissioners of the Housing Authority of the
city of Encinitas.
It is ordered that a certificate of the appointment of each
councilperson as commissioner shall be filed with the City Clerk
in accordance with Section 34273 of the Housing Authorities Law.
Upon the adoption of this Resolution the Housing Authority has no
tenants within the meaning of Section 34213.5 of the Housing
Authorities Law and therefore no tenant commissioners are ap-
pointed as otherwise mandated by Section 34246.5 of the Housing
Authorities Law.
It is further ordered that the new Board of Commissioners
shall elect its first Chairperson of the Housing Authority at its
first meeting on the 23rd, of February 1994 at 7:00 p.m.
at City Hall and that the Board of Commissioners shall employ
City Manager, as the initial Secretary of the Board.
Until the adoption of this Resolution the County of San
Diego has been administering 59 units of leased housing within
the City pursuant to Section 8 of the United States Housing Act
of 1937 as amended. These units are defined as Leased Housing by
Section 34219 of the Housing Authorities Law.
As soon hereafter as possible the Housing Authority shall
effect the assignment of the County Section 8 units to the City
Housing Authority and shall accept the assignment of the Housing
Assistance Payment Contracts with the various owners of the
Leased Housing. At such time as the Housing Authority is a party
to a contract with an owner of leased housing, the Housing
Authority will have tenants within the meaning of the Housing
Authority Law and two tenant commissioners shall then be appoint-
ed. The Housing Authority within 60 days of having tenants,
shall nominate not less than two people who will accept the
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duties of Commissioner for appointment by this Board in accor-
dance with section 34271 of the Housing Authority Law.
City staff shall provide administrative services to the City
Housing Authority without charge until the first day of the month
next following the receipt by the city Housing Authority Section
8 administrative funds.
The city Manager is directed to utilize community Develop-
ment Block Grant administrative funds in behalf of the City
Housing Authority for costs of initial operation or administra-
tion.
PASSED AND ADOPTED by the city Council of the City of
Encinitas at a regular meeting of said Board, held on 26th day of
January, 1994., by the following vote, to wit: Ayes: Bond, Davis, DuVivier,
Hano, Wiegand, Nays: None: Abstain: None; Absent: None.
By:
tka~
cittlClerk
CITY COUNCIL
CITY OF ENCINITAS
::~TE ~
Mayor
ATTEST:
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STEPS TO IMPLEMENT ESTABLISHMENT OF HOUSING AUTHORITY
ACTIONS QATE
Adopt By-Laws and Corporate Seal February 23,1994
Determine Board Compensation April 27, 1994
Adopt Personnel Policies April 27, 1994
Adopt Conflict of Interest Code April 17, 1994
Consider Five Vear Action Plan May 25, 1994
Adopt Five Year Action Plan June 16, 1994
Incorporate Housing Authority Plan into April 12, 1995
the Consolidated Plan and adopt
FUTURE STEPS FOR HOUSING AUTHORITY TO IMPLEMENT FIVE YEAR PLAN
ACTIONS YEAR
Implement HOME tenant based 1995/96 (repeats in 1997/98 and
assistance program with contractor 1999/2000)
Apply for mora Section 8 1996-2000
Acquire existing rental units(100 elderly, 1995/96
60 family) and 4 single family houses for
lease to own program.
Assist nonprofit to build elderly (60 units) 1995-97
or Housing Authority form nonprofit to ~.
build elderly with Section 202
Construct new housing (75 units) 1997/98 :~
Acquire existing rental units (75 family) 1997/98
and 6 single family houses for lease to
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own program
Purchase existing units for transitional 1997 -2000
housing for rural homeless
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ROLE OF HOUSING AUTHORITIES
After the Depression, Congress passed the Housing Act of 1937, which provided
affordable shelter for low income families until they could work their way out of poverty.
Two years later, the state of California made it legal for counties or cities in California
to create Housing Authorities. They were formed to channel federal housing funds to
locally developed and managed public housing projects. These projects tended to be
concentrated in depressed neighborhoods.
In the late 1960's the federal government began programs to promote housing
assistance in leased, privately-owned housing scattered throughout communities.
Today the demand for low-cost units far exceeds the supply. Federal housing money is
scarce and housing authorities are constrained to find new ways of addressing the
growing need. Using new partnerships with local gOVf.3rnments and non-profit
agencies, as well as traditional federal programs, California housing authorities have
prOduced some of the most attractive, best managed public housing in the country.
Housing Authorities are at the same time developers and landiords, grant seekers and
tight"fisted money managers, maintenance shop rJperators, social service providers,
public servants and housing advocates. They put together complicated financing
packages inVOlving tax exempt bonds, redevelopment agencies, federal grants and
public-private partnerships.
Most housing authorities in California are small and medium-sized. Nearly all their
housing units are duplexes, single-level four plexes, town houses or single family units,
$cattered throughout well kept-residential areas.
from Public Houslna Comes of Aae, California Housing Authorities Association
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JUL-27-95 THU 16:30 LEAGUE OF CA CITIES
FAX NO. 9168588240 P.02/03
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EXECUTIVE SUMMARY
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Housing Authority ReportlDg Requirements
In accordance with Health and Safety Code Section 34:!28.1, each local housing
authority (UIA) Is required to submit to the Department of Housing and
Community Development (ReO) an annual report of Its activities for the preceding
fiscal year. To fadUtate the reporting process, the Department prepared and mailed a
questionnaire to aU housing authorities covering fiscal years 1986/1981 and
1988/1989 (Housing authorities generally use the fiscal year from October 1 to
September 30). This Report summarizes the results of that questiol\l\ai1'e.
Activities of Local Housing Authorities
Housing authorities are local public agencies authorized by State law to provide
housing for "persons or families who lack the amount of Income necasary...to
enable them to live in decent, safe, and sanitary dwellings" (Health Ie Safety Code
Sections 34200-34506, 35540-35545, 36000-3600', and 37000-37002). Within this broad
mandate, housing authorities may e:ngase in the activities outllned below:
(] Receive financial assistance from public or private sourc:es;
c:J Prepare, carry out, acquire, lease, and operate housing projects on a nonprofit
basis;
o Provide for the construction., reconstrUction, improvement, alteration, or
repldr of all or part of a housing project;
o Acquire property for constn1cting low-income housing;
Adm.in1stez local housing programs;
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JUh-27'~95 THU 16: 31
LEAGUE OF CA CITIES
FAX NO. 9166588240
S..utamJa HWlint( Authorltlel: Summary of 1~7 UId 1.98&IJ ActiYlU. .
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C Issue revenue bonds to finance rehabllltation;
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C Operate leased housinli temporary housing, and farmworker housing;
o Issue revenue bonds to operate home financing programs through qualified
lenders.
LHA.I may enter into contracts with the federal Department of Housing and Urban
Development (HOD) to locally administer the Section 8 rental assistance program,
Including vouchers; Section 237 homeownership counseling programs; and manage
conventional pubHc housing projects. 11ley may also provide lOIN and grants, to
public and private sponsors for construction and rehabUltation of rental and
cooperative housing under Parmers Home Administration (FmHA) programs,
including Section 502: Homeownership and Rehabilitation Loans; Sectlon 515:
Rural Rental Housing; and Section 523/524: technical assistance grants for self-help
housing and rural housing site loans.
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S1lDlllWY findings
There were 104 LHAs receiving State and/or federal funds in Califomia in Flsca1
Year 1986-87 and 105 LHAs in Pisca1 Year 1988-89. Of these, 97 (93 percent) reported
for 1987 ancll00 (95 percent) for 1989. Seven new housing authorities reported for
P1sca1 Year 1986-1981 (Cities of ('"a1exico, Dese:rt Hot Springs, LaWNIa1e, Palm Sprinp,
Paramount, Santa Monica anel South San Prandsco). Three new housing
authorities reported for FIscal Year 19ss.1989 (Cities of Avalon, Ha1fMoon Bay, and
Irwindale). The City of Whittier housing authority is administered by the CountY of
Los Angeles housing authority. The City of San Luis Obispo ac1ministers both dty
and county programs. The City of Commerce reported no activity in Fiscal Year
19~7 and 1988-89.
In addition, HCD functioned as a housing authority in 15 remote rural counties (the
Counties of Amador, Calaveras, El Dorado, Glenn, Inyo, Lake, Lassen, Modoc, .
Mendodno, Nevada, Placer, Sierra, Siskiyou, Trinity and Tuolumne). Several
housing authorities were formed solely. to sell bonds and are not required to report
their activity to the depl.rtment.
Because the list of UlAs reporting for 1987 is slightly different from that of 1989,
totals in various categories for the two fiscal years may not be precisely comparable.
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MEMORANDUM
DATE:
August 3, 1995
~
'1'0: . sandra Holder, community Development Director
FROM: Julie Dolan, Legal Intern
SUBJECT: Functions of a Housi~g Authority
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Roger aSked that I review our documents for information
relating to housing authorities. As I understand, you are going to
put together a document for public distribution on the functions of
'a housing authority.
Although, we did not have any doouments explaining the
functions of a housing authority, I did compile some ba~ic
infonnation.
Please contact me if you would like additional information,
and in particular, the soope of the information you want to oonvey
to ~hQ public. For example, do you need more on the financial
aspeots of a housing authority or do you want to focus on low
income housing?
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HOOSING AUTHORITIES
I. ~n.ral.ly
Housing authoritio8 are created to provide safe and sanitary
residenti~l housing accommodations for persons of low and moderate
income.
II. 'rei!litiol'l
A city, county, or a city and county, jointly, may creato a
housing authority by complying with the requirements sat forth in
.t~,t8 law. Per state requirements, the city or county must declare
that there is a need, by finding:
1. Tha~ unsanitary or unsafe inhabited housing exist in the
county or city; or
2. That there is a shortage of safe or sanitary housing
available to persons of low income or rentals they can
afford.
Once created, the housing authority enters into a cooperation
agreement with the city or county that created it. Thereafter,
state housing law controls the actions of the housinq authority and
the authority is more of an arm of the state rather than the city.
III. Powers and Duties
In order to carry out state law regarding low and moderate
income housing, the following are a few examples of the powers and
duties that a housing authority may undertake:
1. Construct, acquire, lease and operate housing projects
for low income persons.
2. Improve and repair low income housinq.
3. Provide lease housing to persons of low income.
4. Provide counseling, referral and adVisory servi.ce to low
and moderate income individuals and families regarding
purchase and rental of housinq.
5. Construct, acquire, lease and maintain mobilehome parks.
IV. FinanqQi
A housing authority may borrow or accept grants or financial
assistance from the federal or state government. In addition, a
housing authority may accept financial assistance from any other
public or private source.
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USE OF HOUSING AUTHORITIES
BY CITIES IN SAN DIEGO COUNTY
Cities and counties throughout California are using housing authorities as a tool in a
variety of ways to achieve the ultimate goal of providing affordable housing. The
structure of housing authorities varies from city of city. The programs they utilize to
achieve the goals vary. Some cities are using redevelopment agencies, either in place
of housing authorities or in addition to housing authorities, to achieve affordable
housing goals. Below is an overview of the cities in San Diego County that have a
housing authority or have considered housing authorities as one of their tools to
achieve affordable housing.
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CITY FUNCTIONS OF OTHER MECHANISMS
HOUSING AUTHORITY TO PROVIDE
AFFORDABLE HOUSING
Santee Established to buy and Redevelopment Agency
sell a mobile home park; does rehabilitation.
however, never bought
park.
Oceanside Section 8, Rehabilitation,
First Time Home buyer
Program.
Owns transitional housing
project (managed by
nonprofit)
Chula Vista Established, but no Redevelopment Agency
functions to date. Main does rehabilitation and
rationale for establishment first time home buyers
was to have "local programs.
autonomy" with more
flexibility in combining and
tailoring programs
San Diego Section 8, Rehabilitation,
Public Housing,
acquisition, first time home
. buyers (They own and
manage projects)
National City Section 8 Redevelopment Agency
does rehabilitation, first
time home buyers, and
owns 2 projects
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CITY FUNCTIONS OF OTHER MECHANISMS
HOUSING AUTHORITY TO PROVIDE
AFFORDABLE HOUSING
Carlsbad Section 8, rehabilitation City owns low income
housing project
Poway Established Housing
Commission (citizens
organization) to provide
asset management for
mobile home parks.
Redevopment agency
owns mobile home parks
and is building new units.
Escondido Have an Authority, but it Redevelopment
has no functions Commission owns lots in
mobile home parks and
other property.
County of San Diego Section 8, HOME, public
housing, MCC program
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