City Hall, Council Chamber

100 Santa Rosa Avenue

Santa Rosa, CA

City of Santa Rosa

Housing Authority

Regular Meeting Minutes - Final

Monday, August 26, 2024

1:30 PM

1. CALL TO ORDER

Vice-Chair Newton called the meeting to order at 1:42PM.

2. REMOTE PARTICIPATION UNDER AB 2449 (IF NEEDED)

Commissioner Friedman participated remotely and read the Just

Cause statement for AB 2449.

3. ROLL CALL

6 -

Present

Chair Jeremy Newton, Commissioner Angela Conte, Vice Chair

Wayne Downey Ph. D, Commissioner Jeffrey Owen, Commissioner

Doug Shivananda Friedman, and Commissioner Andrew Smith

4. ELECTION OF OFFICERS

4.1

MOTION - ELECTION OF OFFICERS

RECOMMENDATION: It is recommended by the Housing and

Community Services Department that the Housing Authority elect a

Chair and Vice-Chair to serve with a term of office commencing on

August 26, 2024.

Executive Director, Megan Basinger provided information regarding

the Election of Officers and answered commissioner questions.

Public Comment:

Duane Dewitt from Roseland thanked everyone for volunteering and

encouraged the Housing Authority Board to choose someone

committed for the long term.

A motion was made by Commissioner Smith, seconded by Commissioner

Owen, to nominate Vice Chair Newton as the Housing Authority Chair.

The motion carried by the following vote:

6 -

Yes:

Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D,

Commissioner Owen, Commissioner Friedman and Commissioner

Smith

A motion was made by Commissioner Smith, seconded by Chair Newton,

to nominate Commissioner Downey as the Housing Authority Vice Chair.

The motion carried by the following vote:

6 -

Yes:

Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D,

Commissioner Owen, Commissioner Friedman and Commissioner

Smith

5. STATEMENTS OF ABSTENTION

NONE

6. STUDY SESSION

NONE

7. PUBLIC COMMENTS (ON NON-AGENDA ITEMS)

Public Comment:

Gregory Ferrin congratulated Chair Newton on his appointment and

expressed hope for the continued partnership between the Housing

Authority and the community.

Duane Dewitt commented on Section 8 HUD-VASH vouchers,

seeking clarification on whether VA benefits would be counted as

income. He also requested that the houses torn down to widen

Stony Point Road be rebuilt and advocated for more affordable

housing in the Roseland area.

8. APPROVAL OF MINUTES

8.1

Draft Minutes - June 17, 2024.

Approved as submitted.

Public Comment:

Duane Dewitt clarified his reference in item 7, noting that the City

had purchased surplus property from Sebastopol Road to Dutton

Avenue and incorporated it as part of Downtown, which explained

his reference of Roseland and Downtown together.

9. PROCLAMATIONS/PRESENTATIONS

9.1

PROCLAMATION - PROCLAMATION OF APPRECIATION FOR

THOMAS LAPENNA

Chair Newton presented a Proclamation of Appreciation for former

Chair Tom LaPenna.

Public Comment:

None

10. CHAIRMAN/ COMMISSIONER REPORTS

NONE

11. COMMITTEE REPORTS

NONE

12. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS:

12.1

PENDING DEVELOPMENT PIPELINE UPDATE Provided for

information.

Megan Basinger, Director, provided information and answered

Commissioner questions.

Public Comment:

Greg Fearon requested that the pipeline be made clearer to the

public.

Duane Dewitt thanked the director for clarifying the pipeline and

expressed concerns about veterans not receiving newer units and

the lack of progress on Roseland area projects.

13. CONSENT ITEMS

NONE

14. REPORT ITEMS

14.1

REPORT - BURBANK HOUSING DEVELOPMENT CORPORATION

AND BURBANK HOUSING NEIGHBORHOOD REVITALIZATION

CORPORATION’S REQUEST FOR A CONDITIONAL

CONSOLIDATION, EXTENSION AND MODIFICATION OF LOANS

FOR 2862 AND 2866 APPLE VALLEY LANE, 2870 AND 2874 APPLE

VALLEY LANE, PAPAGO COURT, PAULIN CREEK, AND OLIVE

GROVE APARTMENTS

BACKGROUND: The Housing Authority has provided loans to Burbank

Housing Development Corporation and Burbank Housing Revitalization

Corporation (Burbank Housing) for five affordable housing properties in

the total principal amount of $13,868,472 representing a total of 228

units affordable to extremely low-, very low- and low-income

households. The properties, identified as 2862 and 2866 Apple Valley

Lane, 2870 and 2874 Apple Valley Lane, Papago Court, Paulin Creek

and Olive Grove Apartments, are being consolidated into a “scattered

site” application known as Apple Valley Scattered Sites to pursue tax

exempt bonds and tax credits to access funds for rehabilitation of the

project sites. The proposed consolidation includes a request to extend

the terms of the loans to June 30, 2082, as well as extend the term of

the Regulatory Agreements, securing long term affordability for 228

units for an additional 21 to 34 years through the extension of each

regulatory agreement.

RECOMMENDATION: It is recommended by the Housing and

Community Services Department that the Housing Authority, by five

resolutions, conditionally approve a consolidation, extension and

modification to the loans for 2862 and 2866 Apple Valley Lane, 2870

and 2874 Apple Valley Lane, Papago Court, Paulin Creek and Olive

Grove Apartments to: 1) consolidate the existing loans that are secured

on the five project sites; 2) forgive the accrued interest on the five

project sites at the time of loan modification; 3) extend the loan term(s)

for 57 years at the Applicable Federal Rate, with a floor of 3%; 4)

extend the term of the Regulatory Agreements recorded against each

project site to June 30, 2082; 5) assign the loans to Apple Valley Olive

Grove, L.P.; and 6) authorize the Executive Director to enter into any

and all agreements necessary to carry out the direction of the Housing

Authority.

Megan Basinger Director gave presentation and answered

Commissioner questions.

Public Comment:

Jocelyn Lin, Director of Housing Development for Burbank Housing,

thanked staff for quickly adding the item to the agenda, clarified the

project, and answered Commissioner questions.

Rich Wallach, Senior Director of Housing Finance for Burbank

Housing, asked if the Commissioner had any questions for him.

Steve Burke, Burbank Housing Board Member and former Housing

Authority Board Member, encouraged support for the project and

discussed how Apple Valley was in the early 1990's and how the

City and Housing Authority helped stabilize and clean up the area

now owned by Burbank Housing.

Gregory Fearon commented on Burbank Housing's efforts to

stabilize Apple Valley and encouraged the Housing Authority Board

to support the project.

David Harris commented on how he was unaware how Housing

Choice Vouchers work and highlighted that Project-Based Vouchers

provide assured funding.

Duane Dewitt commented that the Housing Authority should avoid

making rushed judgments, especially in this instance.

A motion was made by Commissioner Smith, seconded by Commissioner

Friedman, to waive reading of the text and adopt:

RESOLUTION NO. 1777 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF

THE TERM OF ITS LOAN NOS. 6029-9353-98, 9929-2873-17, AND 8029-

9353-98 LOCATED AT 2862 AND 2866 APPLE VALLEY LANE, FROM

AUGUST 9, 2048 TO JUNE 30, 2082, AN EXTENSION OF THE

REGULATORY AGREEMENT FROM OCTOBER 19, 2061 TO JUNE 30, 2082,

FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS

LOANS TO A REFINANCED SENIOR MORTGAGE

RESOLUTION NO. 1778 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF

THE TERM OF ITS LOAN NOS. 8029-9354-98, 6029-9354-98, 9929-2883- 17,

AND 6929-9354-00 LOCATED AT 2870 AND 2874 APPLE VALLEY LANE,

FROM AUGUST 9, 2048 TO JUNE 30, 2082, AN EXTENSION OF THE

REGULATORY AGREEMENT FROM JANUARY 1, 2053 TO JUNE 30, 2082,

FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS

LOANS TO A REFINANCED SENIOR MORTGAGE

RESOLUTION NO. 1779 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF

THE TERM OF ITS LOAN NOS. 9030-0955-01, 9930-1125-03, 9930-1-75- 02,

9930-1085-02, and 9930-1065-02 TO OLIVE GROVE APARTMENTS, L.P FOR

OLIVE GROVE APARTMENTS, FROM DECEMBER 16, 2059 TO JUNE 30,

2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM

OCTOBER 19, 2061 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED

INTEREST AND SUBORDINATION OF ITS LOANS TO A REFINANCED

SENIOR MORTGAGE

RESOLUTION NO.1780 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF

THE TERM OF ITS LOAN NOS. 6824-9633-98, 8624-9633-98, 9929-2505- 14,

9930-1665-06, 6029-0773-98, 9929-0515-97, 6924-9633-00, AND 9029-0505-97

FOR PAPAGO COURT APARTMENTS, FROM VARIOUS DATES TO JUNE

30, 2082, AN EXTENSION OF THE REGULATORY AGREEMENT FROM

JUNE 1, 2054 TO JUNE 30, 2082, FORGIVENESS OF ACCRUED INTEREST

AND SUBORDINATION OF ITS LOANS TO A REFINANCED SENIOR

MORTGAGE

RESOLUTION 1781 ENTITLED: RESOLUTION OF THE HOUSING

AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A CONDITIONAL

ASSIGNMENT TO APPLE VALLEY OLIVE GROVE, L.P., EXTENSION OF

THE TERM OF ITS LOAN NOS. 9929-0842-00, 9029-0673-99,

9929-0732-01,6029-0743-97, 9929-0742-00, 9929-2555-15, 9929-2515-14,

9029-0732-00, 9930-1675-06, 9929-0822-006029-0723-97, 9029-0663-99,

9029-0683-99 AND, 9929-0782-00 TO PAULIN CREEK APARTMENTS

INVESTORS, L.P FOR PAULIN CREEK APARTMENTS LOCATED AT

VARIOUS ADDRESSES ON APPLE VALLEY LANE AND W. STEELE LANE,

FROM JUNE 30, 2055 TO JUNE 30, 2082, AN EXTENSION OF THE

REGULATORY AGREEMENT FROM JUNE 30, 2055 TO JUNE 30, 2082,

FORGIVENESS OF ACCRUED INTEREST AND SUBORDINATION OF ITS

LOANS TO A REFINANCED SENIOR MORTGAGE

The motion carried by the following vote:

6 -

Yes:

Chair Newton, Commissioner Conte, Vice Chair Downey Ph. D,

Commissioner Owen, Commissioner Friedman and Commissioner

Smith

15. ADJOURNMENT

Seeing no further business, Chair Newton adjourned the meeting at

3:06PM.

Approved on: September 23, 2024

/s/ Ashley Paul, Recording Secretary