City Hall, Council Chamber

100 Santa Rosa Avenue

Santa Rosa, CA

City of Santa Rosa

Housing Authority

Regular Meeting Minutes - Final

Monday, February 28, 2022

1:30 PM

1. CALL TO ORDER

Chair Test called the meeting to order at 1:31PM.

2. ROLL CALL

5 -

Present

Chair Diane Test, Vice Chair Jeffrey Owen, Commissioner Stephen

Burke, Commissioner Thomas LaPenna, and Commissioner Yvonne

Rawhouser

2 -

Absent

Commissioner Wayne Downey Ph. D, and Commissioner Scott

McWhorter

3. STATEMENTS OF ABSTENTION

Commissioner Rawhouser recused from item 12.1.

4. STAFF BRIEFING

Megan Basinger, Director Housing and Community Services,

introduced item 4.1.

4.1

HOUSING AUTHORITY FY 2021/22 Q2 FINANCIAL REPORT

This memo summarizes Housing Authority (“Authority”) expenditures

and funding for July 1, 2021 - December 31, 2021.

Kate Goldfine, Administrative Services Officer Housing and

Community Services, provided information and answered

Commissioner questions.

Public Comments:

None

5. STUDY SESSION

Megan Basinger, Director Housing and Community Services,

introduced the item.

5.1

FISCAL YEAR 2022-23 NOTICE OF FUNDING AVAILABILITY

PRIORITIES

The Housing Authority issues Notices of Funding Availability (NOFAs)

for its federal, state, and local funds for affordable housing activities

annually and as new funding opportunities arise. Over the past three

years, six NOFAs have been issued, five of which have focused on

providing funds for new construction and to leverage Housing Authority

funds to make projects more competitive for state funding sources. This

Study Session will provide the Housing Authority the ability to discuss

the funding priorities for the upcoming Fiscal Year 2022-23 NOFA and

provide direction to staff to either: 1) continue focusing on new

construction projects; or 2) allocate a portion of the funds available for

rehabilitation and/or preservation of affordable housing units in

accordance with applicable funding source eligible uses.

Nicole Rathbun, Interim Manager Housing and Community Services,

gave a presentation and answered Commissioner questions.

Public Comments:

Chris Westlake, Consultant for Burbank Housing, requested that the

Housing Authority give priority to projects that are related to CGBDR

disaster and new construction.

Yesenia Lemus of MidPen Housing requested that funding be

prioritized for new construction.

6. PUBLIC COMMENTS (ON NON-AGENDA ITEMS)

None

7. APPROVAL OF MINUTES

7.1

January 24, 2022 - Draft Minutes.

Approved as submitted.

8. CHAIRMAN/ COMMISSIONER REPORTS

Chair Test made comment regarding attendance at the Mayor's

February meeting of the Charis of Boards and Commissions. Chair

Test also discussed her meeting with the new City Manager and her

support of the Housing Authority.

Public Comments:

None

9. COMMITTEE REPORTS

NONE

10. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS:

Megan Basinger, Director Housing and Community Services,

commented upon the goal setting session conducted by City

Council, staff working on setting up tours of the Hearn's Veteran's

Village site for Housing Authority Commissioners, the 50th

anniversary of the Santa Rosa Housing Authority, and commended

the diligence of the Housing staff.

Commissioner Rawhouser asked about the status of emergency

housing vouchers.

Public Comments:

None

11. CONSENT ITEMS

NONE

12. REPORT ITEMS

Megan Basinger, Director Housing and Community Services,

introduced the item.

12.1

REPORT - 3575 MENDOCINO AVENUE PHASE II- FUNDING

RECOMMENDATION

BACKGROUND: The Fall 2021 Notice of Funding Availability (NOFA)

was published on October 1, 2021 and made available $694,325 in

Permanent Local Housing Allocation (PLHA) program funds and

$1,565,675 in HOME Investment Partnership (HOME) program funds.

Of the applications received, there were no projects eligible to receive

HOME funds. At the time that applications were due for the NOFA, the

3575 Mendocino Avenue Phase II project was anticipated to be fully

funded and BRJE Phase 2 Housing Partners, LP (the Developer) did

not submit an application for funding. In late January, the Developer

became aware of and advised Housing Authority staff of a funding

shortfall due to a lower-than-expected tax credit equity amount from

investors and increased construction costs. The disaster tax credit

award requires the project to begin construction by April 10, 2022,

which does not allow the time for the project to apply for funding from a

future NOFA and retain their $20 Million disaster tax credit award. The

Developer has requested that the Authority consider the request for

HOME program loan funds in the amount of $1,560,000 to address the

recently identified funding shortfall to allow the project to proceed on

time without jeopardizing the disaster tax credit award.

RECOMMENDATION: It is recommended by the Housing and

Community Services Department that the Housing Authority, by

resolution, approve a conditional commitment of loan funds to BRJE

Phase 2 Housing Partners, LP in the amount of $1,560,000 in HOME

funds for construction related costs of 37 affordable housing units and 1

unrestricted managers unit for 3575 Mendocino Avenue Phase II

located at 3575 Mendocino Avenue Santa Rosa, CA.

Nicole Rathbun, Interim Manager Housing and Community Services,

and Julie Garen, Program Specialist, gave a presentation and

answered Commissioner questions.

Public Comments:

Efren Carrillo, Executive Vice President of Burbank Housing,

commended the Housing Authority on their hard work on the project.

A motion was made by Vice Chair Owen, seconded by Commissioner

LaPenna,to waive reading of the text and adopt:

RESOLUTION NO. 1734 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

COMMITMENT OF LOAN FUNDS IN THE AMOUNT OF $1,560,000 TO BRJE

PHASE 2 HOUSING PARTNERS, LP, FOR CONSTRUCTION RELATED

COSTS FOR 3575 MENDOCINO AVENUE PHASE II, 3575 MENDOCINO

AVENUE; APN 173-030-001.

The motion carried by the following vote:

4 -

Yes:

Chair Test, Vice Chair Owen, Commissioner Burke and

Commissioner LaPenna

2 - Commissioner Downey Ph. D and Commissioner McWhorter

1 - Commissioner Rawhouser

Absent:

Recused:

13. ADJOURNMENT

Seeing no further business, Chair Test adjourned the meeting at

2:43PM.