HomeMy WebLinkAbout10/06/1992, C-8 - CONSIDERATION OF A REQUEST BY PEOPLES' SELF-HELP HOUSING CORPORATION THAT THE CITY SUBMIT A HOME HOUSING GRANT APPLICATION IN THE AMOUNT OF $1,000,000 TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT. II�i�I�Nlll�l(IIIIIIII�IIIIII� "1 c MEETING DATE:
In�u►I city o san ..AIS OBISPO ,o—G—9
COUNCIL AGENDA REPORT ITEM NUMBE?4
0
FROM: -,; Arnold Jonas, Community Development Director; By: Jeff
Hoofs: Associate Planner
SUBJECT: Consideration of a request by Peoples' Self-Help Housing
Corporation that the City submit a HOME housing grant application
in the amount of $1, 000, 000 to the California State Department of
Housing and Community Development.
CAO RECOMMENDATION: Adopt a resolution approving the request and
authorizing the City Administrative Officer to sign the grant
application.
REPORT-IN-BRIEF
City policies encourage the development and rehabilitation of
housing affordable to low-income households; however relatively few
such units have been produced in recent years. Peoples's Self=Help
Housing Corporation asks the City's assistance in applying for a
competitive State housing grant which would be used to purchase an
existing 48-unit apartment complex in San Luis Obispo. If the
grant application is successful, the corporation would renovate the
apartments and make them affordable to low- and very-low income
households in perpetuity.
BACKGROUND
Peoples' Self-Help Housing Corporation's ("corporation") has asked
the City to be the applicant for a Home Investment Partnership
("HOME") program grant. Under the grant program guidelines,
private non-profit housing agencies like the corporation can
receive funding only indirectly through city or county sponsorship.
The City's role would be primarily that of applicant, and all
project administration, operation, and maintenance responsibility
would rest with the corporation. A draft grant application for $1
million in federal funds has been prepared by the corporation based
on HCD program requirements, and only minimal staff work would be
necessary to finalize and submit the application (draft application
available in the Council reading file) .
HOME funds would be used to help purchase and renovate the Siding
Apartments, located at 3350 Bullock Lane in San Luis Obispo. HOME
funds would comprise about 46 percent of the purchase price, with
the balance to be financed by the corporation with a conventional
loan. City Council approval is needed to submit the application
and meet the State Housing and Community Development Department's
(HCD) early November deadline.
Should the HOME application be funded, the State would enter into
an agreement with the City, . and the City in turn with the
corporation to pass through HOME funds for purchase of the
property.
city of san _ s'0131spo
did; COUNCIL AGENDA REPORT
Staff Report
Page 2
The HOME program was authorized by Congress under the Cranston-
Gonzales National Affordable Housing Act of 1990. Its purpose is
to preserve and expand the supply of decent, affordable rental
housing. Acquisition of existing rental housing by experienced,
community-based, non-profit corporations like Peoples' Self-Help
Housing is the highest funding priority under the HOME program.
Funds for non-metropolitan areas, including San Luis Obispo, are
administered by the State Department of Housing and Community
Development.
SUMMARY PROJECT DESCRIPTION
HOME Funding Applicant: City of San Luis Obispo.
Project Owner/Developer: Peoples' Self-Help Housing Corporation.
Objective: Acquisition of a 48-unit existing apartment complex for
preservation as affordable rental housing. (APN 053-071-017)
Project Name/Location: Siding Apartments, 3350 Bullock Lane, San
Luis Obispo.
Physical Description of Property: The property has 16 two-bedroom
and 32 one-bedroom apartments in four, two-story buildings. The
complex was constructed in 1975 and has been well maintained.
There is a laundry and recreation building on the property. A
recent termite report indicated some active termite infestation and
other relatively minor items which the owner has agreed to correct
prior to close of escrow.
Price/Terms and Conditions of Sale: The agreed upon price is
$2, 1601000 ($45, 000 per unit) . Peoples' Self-Help Housing
Corporation has entered into a 13 month Purchase Agreement with the
owner based on the agreed upon sales price. Escrow must close by
October 1, 1993 .
Grant Funding Process
HOME funds are competitive, and there is no guarantee that the
grant will be awarded to the City. Applications must be received
by HCD 45 days from issuance of the NOFA (Notice of Funds
Available) . The NOFA was temporarily delayed due to the State
budget deadlock. Now that the State has adopted a budget, HCD
staff indicate that they should issue the NOFA by September 21st.
This would make applications due by approximately November 7th.
The State must announce awards within 80 days from the application
deadline. Given the current timing, this would take place
approximately the last week of January 1993. Corporation staff
anticipates that it will take 6 months from announcement of awards
r
I���iain►►►IVIIIIIIIIII� lllllll city of San AS OBISPO
COUNCIL AGENDA REPORT
Staff Report
Page 4
necessary reports for the City's review and submittal to HCD.
Subsequent to grant closeout, the corporation would file annual
reports to the City certifying occupancy and rent levels, and
compliance with all HOME Program regulations.
I
Current Occupancy
Current tenants would not be displaced by the project. The
majority of the residents appear to meet the income requirements of
the HOME program. Occupancy reports indicate that 85% of current
occupants are low-income, with household sizes ranging from 1 to 4
persons and monthly incomes ranging from $800 to $1800. These
residents currently pay between 40% and 75% of their income for
rent. The corporation would reduce rents in accordance with the
HOME guidelines stated above. Non-low-income residents would not
receive the benefit of reduced/subsidized rents, and upon vacancy,
these units would be rented to low- or very low-income households.
DISCUSSION
The proposed project is consistent with the General Plan and Zoning
Regulations. By enabling more low-income households to afford
decent housing in San Luis Obispo, the project implements several
Housing Element programs:
■ "The City will seek Community Development Block Grants (CDBG)
and other state and federal funding to obtain and prepare
suitable sites for assisted housing. " (p.39)
■ "The City will encourage construction of about 120 subsidized
rental units during 1984 through 1990 . Additional existing
units may be acquired by the Housing Authority or developed by
private, non-profit sponsors. (p. 40; about 25 subsidized
rental units were actually built during this period) .
■ "The City will assist rehabilitation of houses and small
apartment buildings in older residential areas of the city. "
(p. 43)
■ "The City will continue to assist the efforts of other
agencies to help low-income, elderly, and handicapped
residents maintain and repair their dwellings. " (p. 44)
It would be in the public interest for the City to serve as
applicant for the HOME program. The corporation has extensive
experience with housing construction and rehabilitation, and has
been actively developing affordable housing in San Luis Obispo
County since 1970. If the HOME grant is awarded to the City,
guarantees will be in place to ensure that the apartments remain
p
ii��l��►►►��IIIII1111�° �IUIII city of San L.6 OBISpo
COUNCIL AGENDA REPORT
Staff Report
Page 3
to enter into contracts and disburse funds into escrow for purchase
of the property.
If the grant application is funded, HCD would enter into a standard
agreement with the City. The City in turn would enter into an
agreement with Peoples' Self-Help Housing for "pass-through" use of
HOME funds. Prior to close of escrow, the City would then drawdown
funds from HCD and deposit the money into the corporation/current
owner purchase escrow along with instructions to the escrow
company. These instructions would mandate that the funds be used
for purchase of the subject property, and that funding be
contingent upon recording of a deed restriction concurrent with
close of escrow.
Affordability Guarantees
A deed restriction would be recorded to guarantee that the units
will be rented to low and very low-income households at affordable
rent levels pursuant to the HOME Program regulations. Although
HOME only requires that the units remain affordable for 15 years,
the corporation proposes that the units remain permanently
affordable.
About 80 percent of the apartments would be reserved for low-income
households (households earning 80% or less of the area median
income) , and at least 20% of the apartments would be for very low-
income households (households earning 50% or less of area median
income) . Under the HOME program, monthly low-income rents cannot
exceed 30% of 65% of the area median income (about $444 for a 1-
bedroom unit) , including utilities. very low-income rents are
restricted to 30% of 50% of area median income (about $337 for a 1-
bedroom unit) . According to the 1990 Census, the City's median
rent cost, not including utilities, is $600.
Ownership
Ownership will vest with Peoples' Self-Help Housing Corporation or
a subsidiary non-profit corporation. The project will be managed
by Peoples' Self-Help Housing Corporation, a HUD Certified Property
Management Agent. The corporation manages several hundred HUD,
FmHA and conventionally financed affordable apartments throughout
San Luis Obispo and Santa Barbara Counties, and , if funded, would
maintain a full-time, on-site resident manager in addition to its
property management staff in San Luis Obispo.
Documentation
HCD will require quarterly, annual and closeout reports for the
grant. Peoples' Self-Help Housing Corporation will prepare all �[
����►��►�►►►i�►Illliifll►° ���III city of San _ AS OBISpo
COUNCIL AGENDA REPORT
Staff Report
Page 5
affordable to low-income households, and to ensure that the
property will be properly maintained at no cost to the City or to
citizens.
At this time, the State's criteria for awarding HOME program grants
aren't available. However, based on previous discussions with HCD
staff, cities and counties without state-certified housing elements
may be at a disadvantage when competing for state-awarded housing
funds. Like many California cities, San Luis Obispo's housing
element was to have been updated by July 1, 1992 to meet new state
housing laws. As yet, the City has not adopted an updated housing
element.
i
In May the City's Planning Commission completed its review of the i
draft Housing Element update and referred the document back to
staff for changes. On August 4th, the City Council postponed a
decision on regional housing needs, pending further progress on the
Land Use and Circulation Elements update, and to allow additional
time to analyze policy options.
It is now unlikely that the Housing Element can be adopted before
March 1993 . Depending on the outcome of the regional housing needs
question, state certification of the Housing Element is not likely
before June 1993. Consequently, the City's grant eligibility may
be affected. This concern may also hold true for the City's
recently awarded Community Development Block Grant for $444 , 000 to
purchase and remodel the Women's Shelter. It is not known how many
other communities applying for the HOME program or for CDBG funds
are in a similar situation; however as of early 1992, of the 509
California cities and counties required to have housing elements,
only 107 localities had adopted housing elements which HCD found to
be in substantial compliance with housing element law.
ALTERNATIVES
1. Do not apply for the HOME grant. The City is under no mandate
to act on the request, nor would the decision not to
participate affect any current city grant programs (eg.
Homeless and Women's Shelters) . If the City does not apply
for the grant, Peoples' Self-Help Housing Corporation would
not be able to compete for the grant, and the proposed sale
will fall out of escrow. Presumably, the apartments would
then be resold, probably without any affordability controls.
2 . Apply for the HOME grant under special conditions. The
current proposal does not involve City ownership or management
of the property. Affordability controls are maintained as a
deed restriction on the property. The City could, based on
its participation as applicant, play a more active role. This
�������i�►►iIVIIiIIIIII�� ll�lh city of San t,-.3 osispo
Gii% COUNCIL AGENDA REPORT
Staff Report
Page 6
could include equity participation, co-management of the
property, first right of refusal guarantees to the City upon
resale, or other- provisions. Given the short timeframe for
application submittal, and the long-term affordability
guarantees planned, such conditions would unduly complicate
the process and are not necessary to achieve the City's
housing objectives.
FISCAL IMPACT
Other than incidental staffing costs associated with filing the
grant application, the City would incur no costs as applicant for .
the HOME program. Peoples' Self-Help Housing Corporation will j
assist city staff in preparing the application, and will be
responsible for all costs associated . with close of escrow,
renovation, and on-going operation of the apartments.
RECOMMENDATION
Adopt the resolution approving the grant submittal request and
authorizing the CAO to sign the grant application.
Attachments:
-Draft Council. Resolution
-Vicinity Map
-Letter from Peoples' Self-Help Housing Corporation
RESOLUTION NO. (1992 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER
THE HOME INVESTMENT PARTNERSHIP PROGRAM, THE EXECUTION OF A
STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY AMENDMENTS
THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE
HOME INVESTMENT PARTNERSHIPS PROGRAM.
WHEREAS, the City of San Luis Obispo, a political subdivision
of the State of California, wishes to apply for and receive an
allocation of funds through the HOME Investment Partnerships
Program (hereinafter referred to as "HOME") ; and
WHEREAS, the California Department of Housing and Community
Development (hereinafter referred to as the "Department") has
issued a Notice of Funding Availability for the HOME program and is
authorized to approve funding allocations which will be made
available directly through the U.S. Department of Housing and Urban
Development (HUD) to be used for the purposes set forth in Title II
of the Cranston-Gonzalez National Affordable Housing Act of 1990,
the implementing regulations set forth in title 24 of the Code of
Federal Regulations, part 92, and Title 25 of the California Code
of Regulations commencing with section 8200; and
WHEREAS, the City of San Luis Obispo wishes to submit an
application to obtain from the department an allocation of HOME
funds;
NOW, THEREFORE,BE IT RESOLVED by the Council of the City of
San Luis Obispo as follows:
SECTION 1. Purpose. The City of San Luis Obispo shall submit
to the Department an application to participate in the HOME program
68 7 .
Council Resolution No. (1992 Series)
Page 2
which will request a funding allocation for the acquisition of 48
existing apartments located at 3350 Bullock Lane, in the City of
San Luis Obispo, to allow the renovation and preservation of the
apartments as low and very low-income rental housing.
SECTION 2. Grant Application and Funding. If the application
for funding is approved, the City of San Luis Obispo hereby agrees
to use the HOME funds for eligible activities in the manner
presented in the application as approved by the Department and in
accordance with applicable regulations.
SECTION 3. Authorization to execute grant application and
related documents. The City Council authorizes the City
Administrative Officer to execute in the name of the City of San
Luis Obispo, the application, the Standard Agreement,and all other
documents required by the department or HUD for participation in
the HOME program, and any amendments thereto.
.On motion of , seconded by
and on the following
roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this
day of , 1992 .
C:��o
Council Resolution No. (1992 Series)
Page 3
Mayor Ron Dunin
The foregoing is a true and full copy of a resolution of the San
Luis Obispo City Council adopted at a duly convened meeting on the
date above-mentioned, which has not been altered, amended, or
repealed.
ATTEST:
Diane Gladwell, City Clerk ,
APPROVED:
d -
Cit,X,Adm' istrative Officer
w
C t to ey
dV v
Community Development Director
�-8-9
� J
• •r M r /
R-4-S
:' w� •� 8 � n7••Ie
@'c
L • ?A � wee-n!
•'ri Rlwr ne�lll•N
ORCUTT
ROAD
83 14,
•rew»..fib arm. : . ..... .. r�=r
nTr euae.•ar. O o a,
' c.u.n '"c N•n. sq
Yee Yns+ re•.
Mr- :J—NlA + IV�iS
R- -
,� Y
• i
0 i JMDBLE
I>^
P R
vr�
'All
, I f
`•
3
L
emm,
rn
r—
F r ✓�;,•L, ':' res
VICINITY MAP NORTH
URECEIVED
AUG 1 41992
Mayor Ron Dunin ADMINISTRATION August 14 , 1992
City of San Luis Obispo SAN LUIS OBISPO,CA
990 Palm Street
San Luis Obispo, CA 93401
Dear Mayor Dunin:
The purpose of this letter is to request that the. City Council
consider submittal of an application to the State Department of
Housing and Community Development, Home Investment Partnership
Program ( 'HOME' ) on behalf of a Peoples ' Self-Help Housing
Corporation project.
We ask that consideration of the HOME application and
authorization of its' submittal be scheduled for the September
15 1992 City Council meeting. Authorization must occur in the
form of a resolution, which would be provided to City staff by
PSHHC based upon State recommended language. The September 15th
date is critical in that the State provides only 45 days from
their issuance of the NOFA (Notice of Funds Available) to prepare
and submit the application. We anticipate receiving the NOFA
this Monday, August 17th, with applications due by October 2nd.
Consequently, the first Council meeting in October would be
inadequate.
The PSHHC HOME project consists of acquisition and minor
renovation of a 48 unit existing apartment complex in the Laurel
Lane area of San Luis Obispo . The complex would be owned and
operated as affordable rentals by PSHHC in perpetuity .
Assurances would be recorded on the property to guarantee this
beneficial use. The project consists of 16 two-bedroom and 32
one-bedroom apartments. The apartments are presently offered for
sale as partial disposition of an estate . The trustees are
agreeable to a long-term option to purchase arrangement with
PSHHC in order to accommodate State financing. The buildings,
grounds and units are in very good condition. Attractive,
landscaped courtyards on the interior of the project add a warm,
community feeling to the complex.
Based upon information supplied by the resident manager, current
residents appear to meet the income requirements of the HOME
Program. The majority of the residents are employed in modest
wage jobs within the .City of San Luis Obispo. The two-bedroom
units are primarily occupied by small families.
HOME funds represent approximately 46% of the purchase price,
with the balance to be financed by PSHHC with a loan from a
conventional lender.
!eoples' Self-Help Housing Corp.
1411 Marsh Street, Suite 103
San Luis Obispo, California 93401
TEL: (805) 544-5717
FAX: (805) 544-1901
PSHHC/City of San Luis Obispo
HOME Program Application 8/14/92
Page 2
The objectives adopted in the Housing Element of the City' s
General Plan strongly support acquisition and rehab of existing
housing as an effective means of providing affordable housing.
City sponsorship of State grant applications plays a pivotal role
in project feasibility. In many cases, such as with the HOME
Program, only Cities and Counties are eligible to apply directly
to the State.
HOME funds are competitive. PSHHC will prepare the HOME
application, draft the authorizing resolution, and assist City
staff with the staff report as necessary. Should HOME funds be
awarded to the project, the State will enter into an Agreement
with the City, and the City in turn with PSHHC to pass HOME funds
through- for purchase of the property. Due to State processing,
PSHHC would expect escrow to close approximately 1 year from now
(August 1993) .
A schedule for the HOME application and funding cycle is
attached.
We appreciate your support of this request. 'I will be present at
the August 18th Council meeting should you have any questions.
Zr�egly`'� -V-
Jnith
Director of Programs
Attachment
cc: Members of the City Council
Mr. John Dunn
MEETING AGENDA
0DsTo.
0RECEIVED
,Aon ❑ FY, DATE MAIL � "
[Z cwra dCDD DIR
U_uo ❑ RN.rnR --- OC i 0 G 1992
Ca+O Fina
❑ i LLF
L7 ATTORNEY ❑ FW DIR.
[)raMWORIG. ❑ POLICECK ADMAISTRkilUN
❑ MGMT.TFAM D RECDIR SAN LUIS O8ISPO,CA
❑
READ FILE
❑/Ci17LIIIR
( �_ LefFjLE MEMORANDUM
OCTOBER 6, 1992
TO: John Dunn, Arnold Jonas and Jeff Hook
FROM: George Moylan, Executive Director
Housing Authority of the City of San Luis Obispo
SUBJECT: People's Self,-.Help HOME Application
As per our discussion of Friday the following has been prepared after reviewing
the staff report not the proposal itself. Since the Notice of Funding
Availability has not as yet been issued some of my questions/concerns may well
be answered in that document. However, and I guess that's one of my points, the
NOFA has not even been issued, so it would appear to me there is time to attempt
to answer some of the concerns. Anyway here are my concerns/comments.
OCCUPANCY--I find several concerns here:
A. DENSITY—Over the years we have gone out of our way to develop no
more than twenty units on any one site because of all the concerns as
to people density and ghettoization of low-income persons. While
this concept is our policy and not that of the City, it has been very
happy with the low crime rate we have in our developments, the upward
mobility, the social mix, etc. such a concept promotes. To the best
of my knowledge exceptions in this community have been for elderly
developments, Judson Terrace, Park and Anderson Hotels, where less
social concerns predominate, and Madonna Road Apartments where a
wider range of economic mix is permitted by the applicable Federal
regulations. Tenants are to be low and very low income in this
development, which equates with Public Housing and Section 8
qualified applicants. The regulations clearly state that the housing
is limited to low income families as defined at Part 812 of
appropriate Federal Regulations, which I believe is a mis-reference
or a re-numbering of old Part 912 of the regulations. That Part
clearly defines family as one or more persons living together who are
related by marriage, adoption or operation of the law. Or persons who
are 62 years of age, handicapped or disabled. Single persons are only
eligible to occupy such units when certain things are in place,
chiefly a substatntial occupancy problem. If I am right and this is
the applicable HOME definition occupancy of the 32 1-BR units will
undoubtedly be limited to elderly and handicapped persons and the
2-BR units to small families, up to four and five persons. Does the
City want this people density? Is this an appropriate location to
house elderly and handicapped people? Does the City want to mix
elderly and family populations? Is the development serviced by
elevators? If not does the City want to house elderly and handicapped
tenants on the second floor?
-2-
COST--Staff reports indicate that 85% of current tenants are low-income,
80% of the County's median income, or less, for their particular size of
family. That means that a single person could be earning up to $22,250 a
year and still be qualified for assistance. Our experience, and that of
all practitioners in the assisted housing business, is that these
maximums are seldom reached. In reality elderly applicants typically
have gross incomes of less than $10,000 per year, and families are.
usually on AFDC or have salaries that are in the $10,000-$15,000 a year
category. Thus even with the HOME subsidy persons in this category would
be paying an unusually high percentage of their income for rent. We have
had similar problems with this concern in our Poinsettia Street units,
it is -difficult Jo find persons who are eligible for assistance who can
pay the rents demanded by the program. And in that development rents
cannot exceed- 30% of 60% of the median income, here they can be set even
higher, 30% of 65% of the median income. But the bottom line concern is
that even with the HOME subsidy these units may not be truly affordable .
to low-income persons.
I have some other questions as follows:
Relocation—Scott Smith, who I respect very much, tells me that relocation
expenses are not a problem in. the HOME program. That may be the case but I
have not read anything to that effect. In any program involving Federal
funding that I have been involved with the Uniform Relocation and
Acquisition Act has always applied. In fact section 92.353 of the HOME
regulations speaks to displacement, relocation and acquisition, but frankly
I haven't had time to read and comprehend all of the provisions outlined
therein. We are involved in a Transitional Housing program right now and
relocation is a requirement, even when college students occupy a property
without benefit of a lease.
CHAS--The staff report speaks to an adopted housing element but it doesn't
speak to the Comprehensive Housing Affordability Strategy. Section 105,
State and Local Housing Stratgeies of the HOME Act itself reads, "The
Secretary shall provide assistance directly to a jurisdiction only if. . the
jurisdiction submits to the Secretary a comprehensive housing affordability
strategy. ." I presume the answer to this is that since these funds are
coming through the State we are using the State's CHA's but do we know this
for a fact? Especially since the final state regulations and NOFA have
not been published.
City Involvement--The City is clearly the applicant for these funds and thus
will be held accountable to administer the funds, record-keeping etc. In our
past experience with the City it has not wanted to be in this position, the
homeless shelter being the most recent example. Thus it has contracted with
some other entity to carry-out it's administrative responsibilities. Is it
doing the same in this case? If so I would doubt that the Federal and State
government's would approve People's Self-Help both being the recipient and
administrator of the funds.
-3-
In conclusion let it be re-stated the Housing Authority is not attempting to
block any proposal for assisted housing in the City of San Luis Obispo be it
from People's Self-Help or anyother non-profit or profit-motivated group. We
are not egotistical enough to think we are the only one who can do this job.
However, we take very seriously our responsiblities to the City as the public
agency chosen by the City to address it's assisted housing needs. And in that
position we consider it our duty to raise issues as to assisted housing proposed
for the community. That is the intent of this memo.
As you know this was done in haste. I apologize for that, however, given the
short turn around time from receipt of the Council agenda, to our meeting of
Friday and my being gone from the City for three days there was little choice in
the matter. I am sure I lave missed some things and probably mis-stated some
other concerns.
Again we are not trying to be obstructionists. We have a Commission meeting on
Thursday, October 15th, I will be here from now until then. Surely if removed
from the consent agenda the item can be brought back to the Council well before
the end of the month.
George
ETIV 1PRA
AA
...C.!r
.............
0.......... J.
...........
...........
...............
OU ..........
...........
0
S
. . ......... ........ B
.... ....... "".OF.THE.M.Y OF S
........... ....
....... . ......... ...
PO
............
.......... ............ ......
..............
.. ....... ..................
A,9UO
0 5 . 7
...........
...........
...........
...........
... .. 4344
Ob
487 Le$,Street B. 38..• S�L
us Obispo,
. .......... .
Executive Director-Secretary SEP .30
George J.Moylan September 29r 1992
ML. John DunnADMINISTRATION
City Adninistrative Of SAN LUIS o8ISpO.CA
ity
City Of San Inis Obispo
P;O. Box 8100
saij, Dlis Obispo, CA 93403-8100
Dear idm:
I was more than a little dismayed this afternoon when Picking up MY ccPY Of the
Agenda for the October 6th meeting of the City Council I noted item C-8, Housing
Grant.
-
That item, If approved, authorizes the City to submit an application for the
MM FLVqr~, on behalf of People's Self-Help Housing Corporaticn. My dismay
doesn't come from the involvement of People's Self Help, or any other sponsor
-having an interest in assisted 'housing in the City of San 1jais Obispo, it comes
fx=L the fact that the city has ignored this agency in the review process.
What is planned? How large of a develqxerrt? Is there a need for such a
development? Are we creating a concentration of assisted units in one area which
will eventually cause problems for the ccmuzuty and the tenants?
The City created this agency almost 25 years ago as it's "public housing
agencyll, a resource for assisted housing. A resource to be used in I? Ap
development, slum, clearance,, you name it. It's Seven member commission is
appointed by the Mayor with the consent of the City Council. Within the city
structure those seven members are considered to be an "advisory body". Yet here
the City is planning to approve an application for $1,000,000 in Federal funds
for assisted housing and we haven't been consulted. That to re borders.cn the
unbelievable.
What is even more ircnic is that on the same agenda, Item 3 Public Hearings, is
an appeal of the Planning Board's decision on She Village, 55 North Broad
Street. If there had been m=e cooperation between the City and the Housing
Authority six or seven .years ac
the City probably would not be the embarassing
situation of having senior citizens basically evicted from their apartments.
In conclusion I see City's staff actions in the Feparatian of the October 6th
agenda as a direct insult to the seven hard-working, loyal Camdssionars of the
Housing Authority. TWo who have served the Authority and the City since the
Authority was created in August 1968.
COPIESTOI:
Sincerely,
Derxft Ad= ❑ FYI
CDDDHL
0 RN.DM
d42-4� X1*0 -W
2"CAO Cl FM C1
0 FW DM
0
n�Jom
CLERK OWC 0 POLK:ECK
0 MGMT TFAM EJ M DR
Q_r-READ FRE C3 YUDDL
EOUAI MOUSING
OPPORTU"rry