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HomeMy WebLinkAboutEstablishment of a City Housing Authority - Resolution 2011- Council/Agency Meeting Held: Deferred/Continued to: *4pp ve ❑ Conditionally Approved ❑ Denied A Cler s Signat e Council Meeting Date: 3/7/2011 Department ID Number: ED 11-13 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Stanley Smalewitz, Director of Economic Development Lori Ann Farrell, Director of Finance SUBJECT: Approve the Establishment of a Housing Authority Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Due to the Governor's FY 2011 Budget proposal and the potential elimination of redevelopment and housing funds City Council authority is requested to approve a Resolution establishing a Housing Authority to continue the City's affordable housing program for the City's residents. Funding Source: Funds would be transferred from the Redevelopment Agency Low/Moderate fund to the new Housing Authority. Recommended Action: Motion to: Approve Resolution No.2011-18"A Resolution of The City of Huntington Beach, California, Establishing A Housing Authority in Accordance with the California Housing Authorities Law and Making Certain Determinations and Findings Related Thereto"; Authorize the City Manager and City Clerk to take all administrative actions necessary to allow the Housing Authority to conduct its business and exercise its powers. Alternative Action(s): Do not approve the establishment of a Housing Authority. LATE commumICATION Ong Date Agenda Item No. �� ATTACHMENT #2 DRAFT BY-LAWS OF THE HUNTINGTON BEACH HOUSING AUTHORITY ARTICLE 1. OFFICE AND SEAL Section 1. Office. ° The office of the Authority shall be located in the City of Huntington Beach as the Authority may from time to time designate. Section 2. Seal. The official seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. ARTICLE II. OFFICERS AND PERSONNEL Section 1. Officers. The officers of the Authority shall be a Chairperson, a Vice Chairperson, an Executive Officer and a Secretary. Section 2. Chairperson. The Mayor of the City of Huntington Beach shall be the Chairperson of the Authority. The Chairperson shall preside at all meetings of the Authority; sign all contracts, deeds, and other instruments made by the Authority when required by federal or state regulations; and perform all duties incident to the office of Chairperson and such other duties as may be prescribed by the Authority from time to time. Section 3. Vice Chairperson. The Vice Mayor of the City of Huntington Beach shall be the Vice Chairperson of the Authority. The Vice Chairperson shall perform the duties of the Chairperson in the absence, incapacity, or inability of the Chairperson to act. Section 4. Executive Officer. !l The City Manager of the City of Huntington Beach shall be the Executive Officer of the Authority. The Executive Officer shall be responsible to the members of the Authority and, subject to the policies and directions of the Authority, shall exercise control over the administration of the Authority and the execution of Authority policies. The Executive Officer shall sign, on behalf of the Authority, all contracts and other documents approved by the Authority unless federal or state regulations require otherwise; appoint, remove, discipline, and supervise the Authority's personnel; supply the Authority with such information and recommendations as necessary or as may be requested by the Authority; authorize and certify payrolls, requisitions, and other documents relating to the financial affairs of the Authority; and DRAFT perform such other duties as may from time to time be prescribed for the Executive Officer by the Authority. The Executive Officer may delegate such administrative duties and authority as are consistent with these by-laws and such other rules and regulations as may from time to time be approved by the Authority. Section 5. Secretary. The City Clerk of the City of Huntington Beach shall serve as the Secretary of the Authority. The Secretary shall attend all meetings of the Authority, maintain a full and thorough record of all proceedings of the Authority,keep all official records of the Authority, maintain custody of the seal of the Authority and perform all other duties incident to the Office of Secretary. ARTICLE III. MEETINGS Section 1. Regular Meetings. Regular meetings shall be established by resolution and shall be adopted prior to the start of each calendar year. Regular meeting dates shall coincide with dates of Council meetings but shall be scheduled prior to the start of a Council meeting with sufficient time to provide for conduct of business of the Authority. Meetings shall be held in the City Council Chambers. Section 2. Special Meetings. Special meetings may be called at any time by the Chairperson or by the majority of members of the Authority by delivering personally or by mail written notice to each member of the Authority at least 24 hours before the time of such meeting as specified in the notice. Said notice shall specify the time and place of said meeting and the business to be transacted. No other business shall be considered at such meetings. Such notice may be dispensed with as to any member of the Authority who at prior to the time the meeting convenes, files with the Secretary a written waiver of notice..Notices of special meetings shall also be given to each newspaper, radio, or television station in the City of Huntington Beach requesting notice of special meetings in writing. Section 3. Public Meetings. All regular and special meetings of the Authority shall be open to the public except for such executive sessions as are allowed by the Ralph M. Brown Act, Section 549 et seq, California Government Code. Section 4. Quorum. A majority of the members of the Authority shall constitute a quorum for the transaction of business. DRAFT Section 5. Voting. Voting on all matters shall be by voice vote or by roll call and the ayes and noes shall be entered in the minutes of the meeting. All actions shall require a majority vote of the members of the Authority. Section 6. Rules and Order. The rules and procedures established by the Huntington Beach City Council shall be followed by the Authority except as otherwise provided herein and except that (a) any person may speak at a meeting if such person informs the Authority at any time before the meeting that he/she desires to speak. Section 7. Authority to Set Public Hearings. The Chairperson and the Executive Officer are authorized to set public hearings, without confirming vote of members of the Authority; however, the Authority Board retains authority to also set public hearings. ARTICLE IV. AMENDMENTS Section 1. Amendments. The bylaws of the Authority shall be amended only with the approval of at least five members of the Authority at a regular or special meeting,but no such amendment shall be considered unless at least five (5) days written notice thereof has been previously given to all members of the Authority. REDEVELOPMENT ACTIONS Approve Transfer of Real Property and other Assets of the Agency to City Approve Creation of a Housing Authority Legislation On March 3rd, the State Budget Conference Committee voted to approve the Governor's proposal to eliminate redevelopment agencies. The vote is scheduled for March loth by both the Assembly and Senate members. f AgerWa item No. / 9�-- �j 1 AM Agency Debt The Agency must have debt to be able to receive Tax Increment from the County. Since 1983, the Agency has incurred debt (i.e. borred) from the City and special funds. This debt has been for capital projects within the Project Area and staffing Agency Assets If the bill is passed, Agency Bonds ro and DDA's/OPA's would be the States responsibility. However, the City's legal debt, may not be honored/repaid. Therefore, the Agency assets of real property and leases are being transferred to the City to pay off the debt owed to it 2 REQUEST FOR CITY COUNCIL COUNCIL ACTION MEETING DATE: 3/7/2011 DEPARTMENT ID NUMBER: ED 11-13 Analysis: On January 10, 2011, Governor Jerry Brown announced the State's proposed budget for FY 2011. One of the major components of the proposed budget is eliminating all redevelopment agencies in the State effective July 1, 2011. Under the proposed budget, the current fund balances in redevelopment agencies' housing set aside funds would be shifted to local housing authorities. The Huntington Beach Redevelopment Agency's Low and Moderate Income Housing Fund currently has existing balances of approximately $5.9 million. The City's current local housing authority is the Orange County Housing Authority therefore if the Governor's budget is passed as proposed, it is anticipated that the City's housing funds would be transferred to the Orange County Housing Authority. Although the City has a good working relationship with the Orange County Housing Authority, the transfer of these funds from the Agency to the County would presumably leave the City without local control of the necessary funds to provide affordable, safe and sanitary housing opportunities within the City. It is important to the City that it maintain local control and more importantly access to these funds for affordable housing projects within the City to meet the City's Regional Housing Needs Allocation (RHNA) obligations. In total, the City's RHNA affordable housing production obligation during the 2006-2014 period is 2092 units, of which 454 units are for very low income households; 369 units are for low income households; and 414 units are for moderate income households. Establishing a Housing Authority California Housing Authorities Law Health and Safety Code Sections 34200 et. seq. allows for the formation of a housing authority in every City. The establishment of a housing authority requires the governing body of a city to declare there is a need for an authority to function within it. The City Council may adopt a resolution declaring a need for a housing authority if it finds either of the following: 1) that unsanitary and unsafe inhabited dwelling accommodations exist in the City; or 2) that there is a shortage of safe or sanitary dwelling accommodations in the City, available to persons of low income at rental rates they can afford. In determining whether dwelling accommodations are unsafe or unsanitary, the City Council may take into consideration such factors as overcrowding and access available to the inhabitants of such dwelling accommodations, and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes. The most recent update of the Housing Element of the City of Huntington Beach General Plan was approved by the City Council on May 17, 2010. The Housing Element approved in 2008 includes the following findings: (a) Approximately 8 percent of all City's households are estimated to be in the extremely low income category with 16 percent of renter occupied households having an income less than $46,450 which is within the very low and extremely low income categories; -2- 3/7/2011 10:39 AM REQUEST FOR CITY COUNCIL COUNCIL ACTION MEETING DATE: 3/7/2011 DEPARTMENT ID NUMBER: ED 11-13 (b) An estimated 38 percent of renter households overpay for housing (e.g. housing costs exceed 30 percent of their income) with an estimated 85 percent of such households paying more than 50 percent of their income for housing; (c) The average rent for a two or three-bedroom unit with two bathrooms ($1,692 - $ 1,795) exceeds the affordable payment amount of both the very low and low income groups; (d) An estimated 6 percent of all households in the City are overcrowded; (e) An estimated 13 percent of the renter households are overcrowded with 38 percent of these overcrowded renter occupied units b eing severely overcrowded in the Oak View Neighborhood. Oak View is a CDBG Enhancement Area as well as a Redevelopment Project Area and continues to be a major focus for City Neighborhood Improvement activities; and (g) Based upon information provided by the City's Code Enforcement Division in 2007 it is estimated there are 4,773 substandard units located in the City that are in need of maintenance or structural repair. Based upon the above descriptions there is significant rent overpayment, overcrowding conditions, and repair needs that continue to exist in the City. Furthermore, there appears to be a shortage of safe sanitary dwelling accommodations in the City available to persons of low income at rental rates they can afford. As for the operation of the Huntington Beach Housing Authority (HBHA) pursuant to California Health and Safety Code Section 34290, the City Council may serve as the commissioners of the HBHA and shall have all the rights powers, duties, privileges and immunities vested by the California Housing Authorities Law. It is recommended by staff that the City Council members serve as HBHA Commissioners. If the HBHA is established by Resolution, then the Housing Authority Commissioners will be scheduled to.consider a resolution adopting by-laws associated with the operation of the HBHA, which draft by-laws are attached. Strategic Plan Goal: Maintain financial viability and our reserves Environmental Status: The creation of a housing authority has no significant effect on the environment; therefore, the activity is not subject to CEQA. Attachment(s): Paige Nuftilief NoxDescription 1. Approve Resolution N02011-18 "A Resolution of The City of Huntington Beach, California, Establishing A Housing Authority in -3- 3/7/2011 10:39 AM REQUEST FOR CITY COUNCIL COUNCIL ACTION MEETING DATE: 3/7/2011 DEPARTMENT ID NUMBER: ED 11-13 Accordance with the California Housing Authorities Law and Making Certain Determinations and Findings Related Thereto" 2. Draft Bylaws -4- 3/7/2011 10:39 AM ATTACHMENT # 1 RESOLUTION NO. 2011-18 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH ESTABLISHING A HOUSING AUTHORITY IN ACCORDANCE WITH THE CALIFORNIA HOUSING AUTHORITIES LAW AND MAKING CERTAIN DETERMINATIONS AND FINDINGS RELATED THERETO WHEREAS, California's Housing Authorities Law(Health and Safety Code Sections 34200, et seq.) provides that in each city there is a public body corporate and politic known as the housing authority, but that the authority shall not transact any business or exercise its powers unless, by resolution,the governing body of the city declares there is a need for an authority to function in it Pursuant to Section 34242 of the Housing Authorities Law, the City Council of the City of Huntington Beach may adopt a resolution declaring there is a need for a housing authority if it finds either of the following: (a) that unsanitary or unsafe inhabited dwelling accommodations exist in the City, or (b) that there is a shortage of safe or sanitary dwelling accommodations in the City available to persons of low income at rentals they can afford. Section 34243 of the Housing Authorities Law provides that, in determining whether dwelling accommodations are unsafe or unsanitary, the City Council may take into consideration the following factors: (a) the degree of overcrowding, (b) the percentage of land coverage, (c) the light, air, space, and access available to the inhabitants of such dwelling accommodations, (d) the size and arrangement of the rooms, (e) the sanitary facilities, and (f) the extent to which conditions exist, in such buildings which endanger life or property by fire or other causes. Section 34290 of the Housing Authorities Law provides that the City Council may declare by Resolution that the City Council shall be the commissioners of the housing authority. Section 34277 of the Housing Authorities Law provides that the Mayor of the City of Huntington Beach shall designate the first chairperson of the housing authority from among the housing authority commissioners, and thereafter the housing authority shall select his/her successor among its commissioners. All other legal prerequisites to the adoption of this Resolution have occurred. 10-2396.00 1/Housing reso Resolution No. 2011-18 NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The City Council has received and heard all oral and written objections to the proposed establishment of a housing authority, and to other matters pertaining to this action, and all such oral and written objections are hereby overruled. 2. The City Council hereby finds and determines that the foregoing recitals are true and correct. 3. Based on the evidence in the record, the City Council hereby finds and determines that unsanitary and/or unsafe inhabited dwelling accommodations exist in the City of Huntington Beach. 4. Based on the evidence in the record, the City Council hereby finds and determines that there is a shortage of safe or sanitary dwelling accommodations in the City of Huntington Beach available to persons of low income at rentals they can afford. 5. Based on the evidence in the record, the City Council hereby finds and determines that there is a need for a housing authority to function in the City of Huntington Beach. 6. The housing authority established by this Resolution shall be known as the "Huntington Beach Housing Authority." 7. The City of Huntington Beach Housing Authority (the "Housing Authority") is hereby vested with all the rights, powers, duties, privileges and immunities established by the Housing Authorities Law. 8. Pursuant to California Health and Safety Code Section 34290, the City Council does hereby declare that it shall serve as the commissioners of the Housing Authority and shall have all the rights, powers, duties,privileges and immunities vested by the Housing Authorities Law. 9. The Mayor of the City of Huntington Beach shall serve as the chairperson of the Housing Authority until such time as a successor chairperson is appointed by the commissioners of the Housing Authority pursuant to Section 34277 of the Housing Authorities Law. 10. The term of office and succession of each commissioner of the Housing Authority shall be concurrent with and identical to the term and succession of such City Council member's seat. 11. If any section, subsection, sentence, clause, phrase, or word of this resolution is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of the resolution. The City of Huntington Beach, California, hereby declares that it would have passed this resolution and each section, subsection, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more section(s), subsection(s), sentence(s), clause(s),phrase(s), or word(s)be declared invalid. 10-2396.00 1/Housing reso Resolution No. 2011-18 12. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7th day of March ,2011. s r REVIE ND APPROVED: INITIATED D PPROVED: City/laUVer Director of Ec nom' Development ROVED AS TO FORM: Ci Attorney Y Y l 10-2396.001/Housing reso Res. No. 2011-18 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on March 07, 2011 by the following vote: AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSENT: None ABSTAIN: None Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California Alm Housing Authority If Agencies are eliminated, the 20% housing set aside will go to the County Housing Authority. A City Housing Authority would instead allow us to maintain our housing funds and continue activities such as the First Time Homebuyers Program. 3