CDC - Item 3A - Minutes 4-22-08C
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Minutes of the Regular Meeting
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
April 22, 2008
Chairman Tran called the regular meeting of the Rosemead Community Development Commission to order
at 6:00 p.m. in the Rosemead Community Recreation Center, 3936 N. Muscatel Avenue, Rosemead,
California. The pledge to the flag was led by Commissioner Low and Commissioner Taylor led the
invocation.
ROLL CALL OF OFFICERS:
Present: Commissioners Clark, Low, Taylor
Vice-Chairman Nunez, Chairman Tran
Absent: None
1. PUBLIC COMMENTS FROM THE AUDIENCE - None
2. CONSENT CALENDAR
A. Minutes
March 25, 2008 - Regular Meeting
February 26, 2008 - Regular Meeting
April 8, 2008 - Regular Meeting
B. Resolution No. 2008.12 Claims and Demands
Recommendation: Adopt Resolution No. 2008-12 for payment of Commission
expenditures in the amount of $57,394.98 demands no. 8217 through 8221 and 9355
through 9362.
Vice Chairman Nunez made a motion, second by Commissioner Low to approve Consent Calendar
items. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
A. March 25, 2008 - Regular Meeting
Commissioner Clark questioned the minutes of March 25, 2008. Ms. Clark felt her statements that did not
make any sense.
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Commissioner Low asked if the Commission had comments regarding the minutes, the City Clerk must
listen to the tape to verify.
Commissioner Clark agreed and asked if the statement can be retracted.
Chairman Tran suggested the minutes of March 25, 2008 be reconsidered for the City Clerk to verify.
Commissioner Low recommended Council Members to address the sections so the City Clerk did not have
to listen to the entire tape.
Commissioner Clark asked for the Commission to reject that section in question because there are many
inaudible statements which do not make sense.
Commissioner Taylor made a motion, second by Commissioner Clark to reconsider the minutes of
March 25, 2008. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Commissioner Taylor made a motion, second by Vice-Chairman Nunez to defer the minutes of
March 25, 2008. Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
3. MATTERS FROM THE CHAIRMAN i£ COMMISSIONERS- None
4. MATTERS FROM THE EXECUTIVE DIRECTOR 8 STAFF
A. Acquisition of 9331 Glendon Way, Rosemead
On October 9, 2007, City Council entered into an Agreement with Rio Hondo Community
Development Corporation (RHCDC) for the production of affordable housing using the
15% CHDO set-aside funding as required under the Home Investment Partnerships
(HOME) entitlement grant. Since then, the City has been working with RHCDC to locate a
property suitable for affordable housing. Recently, a single-family home located at 9331
Glendon Way in the City of Rosemead became available for sale with an asking price of
$450,00.00. We were one of several offers made on the property and the owner selected
RHCDC's offer of $445,000.00. In addition to the $445,000.00, RHCDC would be required
to pay approximately $7,899.00 in related soft costs and closing costs, and is in need of
$5,000.00 for some cosmetic improvements upon acquiring the property. Therefore, the
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total amount needed would be $457,899.00 , pending funding approval of a 0% deferred
payment loan by the city Council in the amount of $214,615.00 from the HOME CHDO
Set-Aside Fund and a 0% forgivable loan by the Rosemead Community Development
Commission of $ 243,284.00 from the Low and Moderate Income Housing Fund.
The unit would be restricted as a rental property for a low - to - moderate income
household and be subject to a 55 year affordability covenant. The property currently
contains a 1, 259 square foot, three-bedroom, two bathrooms, single-family residence,
built in 1961 on a 6,046 square foot, R-1 zoned lot.
Recommendation: That the Rosemead Community Development Commission approve a
0% deferred payment loan in the amount of $243,284.00 funded by the Redevelopment
Low and Moderate Income Housing Fund to the Rio Hondo Community Development
Corporation for the purchase of the property located at 9331 Glendon Way and approve
and authorize the Chairman to enter into all related documents including the Regulatory
Agreements. The loan would be forgivable in year 55 if all conditions of the agreements
are met.
Commissioner Clark had concerns regarding the 90 day residential requirement and inquired about the City
only renting to Rosemead residents.
Economic Development Administrator Ramirez explained there is set preference for City Residents; then it
opens up to the public.
Commissioner Clark also inquired about, "The loan would be forgivable in year 55". Ms. Clark stated the
Agency is loaning funds to CHDO and asked who is funding the other half.
Economic Development Administrator Ramirez stated the other half is being funded by the HOME
Investment Partnership plan.
Executive Director Chi explained staff was recommending that the remaining portions of the fund be paid
from the Housing set-aside Redevelopment funds, which are mandate to be set aside for housing unit
moderates. Every year the Agency reduces 20% set-aside from all the redevelopment dollars.
Commissioner Clark asked if the loan would be forgivable at year 55; to whom would it be forgivable?
Economic Development Administrator Ramirez stated it would be forgivable to the low Fund Housing set-
aside fund.
Assistant Executive Director Saeki explained that in year 55 the loan would no longer be an outstanding
loan.
Commissioner Taylor asked what the Agency will do next year when it receives more funds.
Economic Development Administrator Ramirez stated the Commission can do the same type of affordable
housing of rental property projects or do a first time home buyer project, as well as, other numerous things.
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Commissioner Taylor stated he was opposing on taking Agency money out of the single family home fund
Mr. Taylor felt it should be open to the private real state parties to apply. He reiterated the single family
homes should stay in the private sector and that he would have to vote no on it.
Commissioner Clark asked staff if there are other opportunities of housing within the city
Economic Development Administrator Ramirez explained they have a two year timeframe where they have
to commit to a project and five years to spend the money.
Executive Director Chi added that other projects can be explored; for example, if an apartment building
introduced some affordable housing back into the community. Stated, "We are trying to avoid losing
allocated federals funds."
Commissioner Clark asked if proposition 98 (rent control) was passed would it affect this project.
Economic Development Administrative Ramirez stated this was not rent control; we are controlling who can
rent the home. Rents are set by federal government guide lines; propositions 98 won't affect it.
Chairman Tran summarized if the Agency did not act on this about $200 thousands dollars would be lost;
stated that in the future they will look into other areas for affordable housing. Chairman Tran commended
staff on their work on this issue because otherwise those funds would have been lost.
Commissioner Low made a motion, second by Vice-Chairman Nunez to proceed with staff's
recommendation. Vote resulted in:
Yes: Clark, Low, Nuriez, Tran
No: Taylor
Abstain: None
Absent: None
Commissioner Clark asked for the record to show that she wants to give and not lose the money.
5. ADJOURNMENT
The meeting adjourned at 6:17 pm. The next Community Development Commission meeting will take place
on May 13, 2008 at 6:00 pm.
Respectfully submitted: Approved:
Gloria Molleda John Trar
Commission Secretary Chairman
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Minutes ofApril 22, 2008
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