Loading...
HomeMy WebLinkAbout18 ESTABLISHING A TUSTIN HOUSING AUTHORITY AGENDA REPORT Agenda Item 18 Reviewed: Finance Director N/A MEETING DATE: MARCH 15, 2011 TO: HONORABLE MAYOR AND COUNCIL MEMBERS VIA: DAVID C. BIGGS, CITY MANAGER FROM: CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER SUBJECT: ESTABLISHING A TUSTIN HOUSING AUTHORITY SUMMARY The purpose of this item is to request that the City Council consider establishing a Housing Authority to function in the City in order to provide safe and sanitary housing opportunities for the City residents. RECOMMENDATION It is recommended that the City Council approve Resolution No. 11-20 establishing a Housing Authority in accordance with the California Housing Authorities Law. FISCAL IMPACT There are no costs associated with establishing a Housing Authority; however, there may be future costs related to the operation of a Housing Authority. Any cost related to operation of the Housing Authority would be considered in conjunction with future budget discussions and decisions. BACKGROUND On January 10, 2011, Governor Jerry Brown announced the State's proposed budget for Fiscal Year 2011-2012. One of the major components of the proposed budget is dissolving all redevelopment agencies in the State, effective July 1, 2011. Under the proposed budget, the current balances in redevelopment agencies Low and Moderate Income Housing Set-Aside Funds would be shifted to a successor agency with discussions about the potential for transferring these funds to local housing authorities. The Tustin Community Redevelopment Agency's Low and Moderate Income Housing Funds currently have existing balances of approximately 19 million dollars. Agenda Report Establishing the Tustin Housing Authority March 15, 2011 Page 2 The City's current local housing authority is the Orange County Housing Authority. If the Governor's budget is passed as proposed, there is a potential risk that housing funds could be transferred from redevelopment agencies 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 these funds be controlled by the City for affordable housing projects within the City in order 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 1,390 units, of which 512 units are for very low income households, 410 units are for low income households, and 468 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 that there is a need for an authority to function in it. The City Council may adopt a resolution declaring there is 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 at or below the low income level 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, air space, 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 Tustin General Plan which was adopted by the City Council on June 16, 2009, and certified by the California Department of Housing and Community Development on July 9, 2009, includes the following findings: (a) The City contains disproportionately large amounts of multi-family housing when compared to nearby jurisdictions and the County overall. (b) Ownership housing costs are increasingly beyond the reach of the City's lower- and moderate-income households. (c) Many owner- and renter-occupied units in the City need rehabilitation, including minor and major repairs. Agenda Report Establishing the Tustin Housing Authority March 15, 2011 Page 3 (d) There are 277 assisted units at risk of conversion to market rate housing. (e) An estimated 18 percent of all households in the City are overcrowded. (f) An estimated 44 percent of the City's extremely-low, very-low, and low income households are paying more than 30% of their income towards housing costs. (g) Large households comprise 15.2 percent of the overall households in Tustin and are a concern due to the ability to locate adequately sized housing units and the high costs associated with the larger units. (h) Approximately 13.2 percent of all City's households are estimated to be in the extremely low income category with 36.9 percent of renter occupied households having an income less than $35,000 which is within the very-low- and extremely- low-income categories. (i) Of the estimated 4,285 overcrowed households, 81 percent consist of renters, with 72 percent of the overcrowded rental units being occupied by extremely- low-, very-low-, and low-income Households. Q) 57% of the City's housing stock is over 30 years old. Units over 30 years old typically begin to require major repairs. Based upon the above descriptions, there is significant rent overpayment, overcrowded conditions, and repair needs that continue to exist in the City. In addition, 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 Tustin Housing Authority ("THA"), pursuant to California Health and Safety Code Section 34290, the City Council may serve as the commissioners of the THA 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 THA Commissioners. If the THA is established by Resolution 11-20, staff will schedule for the Housing Authority Commissioners in the near future consideration of a resolution adopting bylaws associated with the operation of the THA. In response to the Governor's proposed budget, the formation of a local housing authority will provide the City with the opportunity to maintain local control of the existing affordable housing fund balances and allow the City to provide for the development of affordable housing within the City's boundaries. In addition, the local housing authority will assist the City in meeting its RHNA obligations. The formation of a housing authority will not change the City's current relationship with the Orange County Housing Authority. It would be anticipated that the proposed THA will continue to authorize the Orange County Housing Authority to administer tenant based rental assistance Agenda Report Establishing the Tustin Housing Authority March 15, 2011 Page 4 programs within the City of Tustin, as they currently do. In response to the proposed budget, staff is requesting that the City Council consider approval of establishing the Tustin Housing Authority in order to safeguard the City's ability to provide affordable housing opportunities. Approved for Forwarding By: r~ Christine A. Shingletor,~ David C. Big ,City Manager Assistant City Manager Attachment: Resolution 11-20 RESOLUTION NO. 11-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN ESTABLISHING A HOUSING AUTHORITY IN ACCORDANCE WITH THE CALIFORNIA HOUSING AUTHORITIES LAW. WHEREAS, the California Housing Authorities Law (Health and Safety Code Sections 34200, et seq.) provides that there is a public body known as a housing authority in every city, 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; and WHEREAS, the governing body may adopt a resolution declaring there is 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 rentals they can afford, and WHEREAS, in determining whether dwelling accommodations are unsafe or unsanitary the governing body may take into consideration the following factors: 1. The degree of overcrowding, 2. The percentage of land coverage, 3. The light, air, space, and access available to the inhabitants of such dwelling accommodations, 4. The size and arrangement of the rooms, 5. The sanitary facilities, and 6. The extent to which conditions exist in such buildings which endanger life or property by fire or other causes; and WHEREAS, the most recent update of the Housing Element of the Tustin General Plan, which was approved June 9, 2009, and subsequently submitted to the California Department of Housing and Community Development, by the City Council of the City of Tustin ("City Council" or "City" as applicable) includes the following findings: Resolution No. 11-20 Page 2 1. Approximately 13.2% of all City's households are estimated to be in the extremely-low income category, with 36.9% of renter-occupied households having an income less than $35,000, which is the very-low and extremely-low income categories; and 2. An estimated 26% of renter households overpay for housing (e.g., housing costs exceed 30% of their income), with an estimated 54% of all extremely-low income renter households, 45% of all very-low income renter households, and 34% of all low income households overpaying for housing; and 3. The average rent for a two or three bedroom unit with one to two bathrooms ($1,253 - $1,861) exceeds the affordable payment amount for the 60.7% of all renter households; and 4. An estimated 18% of all households in the City are overcrowded; and 5. An estimated 29% of renter households are overcrowded and 72% of these overcrowded renter-occupied units are occupied by extremely-low, very-low, and low income households; and 6. An estimated 33% of all extremely-low income renter households, 46% of all very-low income renter households, and 40% of all low income renter households live in overcrowded conditions; and 7. An estimated 57% of the City's housing stock is over 30 years and units over 30 years old typically begin to require major repairs; and WHEREAS, these significant rent overpayments, overcrowding conditions, and repair needs continue to exist in the City. NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve as follows: SECTION 1. All of the above recitals are true and correct and are incorporated herein by reference. SECTION 2. That unsanitary and/or unsafe inhabited dwelling accommodations exist in the City of Tustin. SECTION 3. That there is a shortage of safe or sanitary dwelling accommodations in the City of Tustin available to persons of low income at rents they can afford. Resolution No. 11-20 Page 3 SECTION 4. That there is a need for a housing authority to function in the City of Tustin to provide safe and sanitary housing opportunities for Tustin residents. The housing authority established by this Resolution shall be known at the "Tustin Housing Authority." SECTION 5. That the Tustin Housing Authority (the "Authority") shall be vested all the rights, powers, duties, privileges and immunities established by the Housing Authorities Law. SECTION 6. Pursuant to California Health and Safety Code Section 34290, the City Council does hereby declare that its members shall serve as the commissioners of the Authority and shall have all the rights, powers, duties, privileges and immunities vested by the California Housing Authorities Law. SECTION 7. That the terms of office and succession of Authority commissioners shall be concurrent with and identical to the terms of each City Council member's seat. SECTION 8. Pursuant to Health and Safety Code Section 34274, each commissioner of the Authority shall be entitled to a per diem payment for attendance at not more than four (4) Authority meetings per month at a rate of $50 per meeting. Additionally, the Authority commissioners shall receive necessary traveling and subsistence expenses which may be incurred in the discharge of the duties of an Authority commissioner. SECTION 9. The commissioners of the Authority shall select, from among their members, a Chairperson and Vice Chairperson. The Vice Chairperson shall serve as the Chairperson in the absence or incapacity of the Chairperson. Additionally, the Authority shall employ a Secretary, who shall serve as the Executive Director to the Authority and shall have power to sign for the Authority on items which have been approved at an Authority meeting. SECTION 10. The commissioners of the Authority at a future date shall adopt bylaws for the operation and function of the Authority. SECTION 11. The City Clerk shall certify adoption of this Resolution. Resolution No. 11-20 Page 4 PASSED, APPROVED AND ADOPTED at a regular meeting of the Tustin City Council on the 15th day of March, 2011. JERRY AMANTE Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) ORANGE COUNTY ) CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and forgoing Resolution No. 11-20 was duly passed and adopted at a regular meeting of the Tustin City Council held on March 15, 2011, by the following vote: BOARDMEMBER AYES: BOARDMEMBER NOES: BOARDMEMBER ABSTAINED: BOARDMEMBER ABSENT: PAMELA STOKER CITY CLERK RESOLUTION NO. 11-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN ESTABLISHING A HOUSING AUTHORITY IN ACCORDANCE WITH THE CALIFORNIA HOUSING AUTHORITIES LAW. WHEREAS, the California Housing Authorities Law (Health and Safety Code Sections 34200, et seq.) provides that there is a public body known as a housing authority in every city, 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; and WHEREAS, the governing body may adopt a resolution declaring there is 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 rentals they can afford, and WHEREAS, in determining whether dwelling accommodations are unsafe or unsanitary the governing body may take into consideration the following factors: 1. The degree of overcrowding, 2. The percentage of land coverage, 3. The light, air, space, and access available to the inhabitants of such dwelling accommodations, 4. The size and arrangement of the rooms, 5. The sanitary facilities, and 6. The extent to which conditions exist in such buildings which endanger life or property by fire or other causes; and WHEREAS, the most recent update of the Housing Element of the Tustin General Plan, which was approved June 9, 2009, and subsequently submitted to the California Department of Housing and Community Development, by the City Council of the City of Tustin ("City Council" or "City" as applicable) includes the following findings: Resolution No. 11-20 Page 2 1. Approximately 13.2% of all City's households are estimated to be in the extremely-low income category, with 36.9% of renter-occupied households having an income less than $35,000, which is the very-low and extremely-low income categories; and 2. An estimated 26% of renter households overpay for housing (e.g., housing costs exceed 30% of their income), with an estimated 54% of all extremely-low income renter households, 45% of all very-low income renter households, and 34% of all low income households overpaying for housing; and 3. The average rent for a two or three bedroom unit with one to two bathrooms ($1,253 - $1,861) exceeds the affordable payment amount for the 60.7% of all renter households; and 4. An estimated 18% of all households in the City are overcrowded; and 5. An estimated 29% of renter households are overcrowded and 72% of these overcrowded renter-occupied units are occupied by extremely-low, very-low, and low income households; and 6. An estimated 33% of all extremely-low income renter households, 46% of all very-low income renter households, and 40% of all low income renter households live in overcrowded conditions; and 7. An estimated 57% of the City's housing stock is over 30 years old and units over 30 years old typically begin to require major repairs; and WHEREAS, these significant rent overpayments, overcrowding conditions, and repair needs continue to exist in the City. NOW, THEREFORE, the City Council of the City of Tustin does hereby resolve as follows: SECTION 1. All of the above recitals are true and correct and are incorporated herein by reference. SECTION 2. That unsanitary and/or unsafe inhabited dwelling accommodations exist in the City of Tustin. SECTION 3. That there is a shortage of safe or sanitary dwelling accommodations in the City of Tustin available to persons of low income at rents they can afford. Resolution No. 11-20 Page 3 SECTION 4. That there is a need for a housing authority to function in the City of Tustin to provide safe and sanitary housing opportunities for Tustin residents. The housing authority established by this Resolution shall be known at the "Tustin Housing Authority." SECTION 5. That the Tustin Housing Authority (the "Authority") shall be vested all the rights, powers, duties, privileges, and immunities established by the Housing Authorities Law. SECTION 6. Pursuant to California Health and Safety Code Section 34290, the City Council does hereby declare that its members shall serve as the commissioners of the Authority and shall have all the rights, powers, duties, privileges, and immunities vested by the California Housing Authorities Law. SECTION 7. That the terms of office and succession of Authority commissioners shall be concurrent with and identical to the terms of each City Council member's seat. SECTION 8. Pursuant to Health and Safety Code Section 34274, each commissioner of the Authority shall be entitled to a per diem payment for attendance at not more than four (4) Authority meetings per month at a rate of $50 per meeting. Additionally, the Authority commissioners shall receive necessary traveling and subsistence expenses which may be incurred in the discharge of the duties of an Authority commissioner. SECTION 9. The commissioners of the Authority shall select, from among their members, a Chairperson and Vice Chairperson. The Vice Chairperson shall serve as the Chairperson in the absence or incapacity of the Chairperson. Additionally, the Authority shall employ a Secretary, who shall serve as the Executive Director to the Authority and shall have power to sign for the Authority on items which have been approved at an Authority meeting. SECTION 10. The commissioners of the Authority at a future date shall adopt bylaws for the operation and function of the Authority. SECTION 11. The City Clerk shall certify adoption of this Resolution. Resolution No. 11-20 Page 4 PASSED, APPROVED AND ADOPTED at a regular meeting of the Tustin City Council on the 15th day of March, 2011. JERRY AMANTE Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) ORANGE COUNTY ) CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and forgoing Resolution No. 11-20 was duly passed and adopted at a regular meeting of the Tustin City Council held on March 15, 2011, by the following vote: BOARDMEMBER AYES: BOARDMEMBER NOES: BOARDMEMBER ABSTAINED: BOARDMEMBER ABSENT: PAMELA STOKER CITY CLERK