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Home My WebLink AboutAgenda Bill 02.A-PCDC 01/27/2003C L f D1T CITY OF PETALUMA, CALIFORNIA AGENDA BILL Agenda 'Title Discussion and Action . Approving a. Resolution Meeting ate: January 27, 2003 Appropriating Housing 'Funds ,for a Grant to Petaluma Ecumenical roperties (PEP) foz the Rehabilitation of Four Older Senior'Rental Properties. Department Director Contact Person Phone Number PCDC Paul Marangella Bonne Gaebler 778 -4484 (direct line) Cost of Proposal $300,676 Account Number N/A Amount Budgeted $485,587 Name of Fund: Low -Mod Housing Fund (Fund 903), Unspecified Housing Projects Attachments to Agenda Packet'Item 1. Letter ofrequest for funds Summary .Statement PEP is requesting a one -time non = recurring allocation of funds to complete rehabilitation work on 36 senior rent- restricted apartments built from ;1978 to 1988. These properties are _ -EP's earliest developments, : and .funding sources at that time did not accommodate reserves for future UP, as current development financing plans do. These 36 units require !extensive maintenance, capital improvements and upgrades to comply with the Americans With Disabilities Act (ADA). Council Priority THIS AGENDA ITEM' IS.'CONSIDERED TO BE PART OF, OR NECESSARY TO, ONE OR MORE OF THE 2001 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JULY 21, 2001. Priority(s): N/A Recommended City Council Action/Suggested, Motion Adopt the Attached Resolution Appropriating Housin g Funds for a Grant to Petaluma Ecumenical Properties (PEP) for the Rehabilitation of Four Older Senior Rental Properties: Reviewed by Finance Director: Reviewed by City Attorney Ap b , Mana er: Date: Date: Today's Date. Revision # an ate evised File Code: # r fuary 8, 2003 AgendabillPEPcasagrande CTTY OF P'E'TALUMA, CALIFORNIA JANUARY 27, 2003 AGENDA REPORT FOR Discussion and Action Approving, a Resolution Appropriating housing Funds for a Grant to .Petaluma Ecumenical Properties (PEP) for the Rehabilitation of Four Older'Senior Rental Properties: 1. ExEcu w . SUMMARY PEP is requesting a one-time , non-recurring allocation of funds to complete rehabilitation work on 36 senior rent - restricted: apartments built from 1978 to 1.988. These properties are PEP's earliest developments, and funding .sources at that time did not accommodate reserves for future upgrades as` current development financing plans do., These 36 units require extensivei maintenance, capital 'improvements and upgrades to comply° with. the: Americans With Disabilities Act (ADA). 2. BACKGROUND; -PEP was started in 1978 as the City's senior:housing partner and since then the -Cityhas depended upon their expertise and: compassion forproviding a safe, decent and affordable home for our community's very low - income seniors and persons with a disability. Addressing those goals,requires ongoing_property management investment.. The units for which rehabilitation funding; is being requested are the first units developed by the agency: Since that time the Properties havehad'a 100 %0 occupancy rate; .so have undergone considerable wear and tear-. "Also, the Department` of Housing and Urban Development (HUD), which subsidizes the rents on the units, requires ongoirigmodernization. PEP has been.attempting to meet their upgrading goals in a piecemeal fashion. 1n.200.1., approximately $260,000 Was _spent. on these properties for upkeep and repairs`withpartial funding from the City's 2002 -2003 Community Development, Block Grant (CDBG). This current, request for $300,676 will allow an.intense 2003 capital improvement'program, including new furnaces, window replacements (for energy conservation)', and. the like. The subject properties are: 0 234 Wilson Street 10 units 0 154 Wilson Street 6 units 0 700 Daniel Street 5 units 0 1275" Lindberg Lane 16 units This request for:rehabilitaton funding is being °presented out of sync with the RFP process because of the urgency of the remodels necessary, particularly those which,include improvements necessary for compliance with the Americans with Disabilities Act (ADA). 3. 198,0's units. T Although utilizing ! Block G1fiantnfunds ` o pions for the necessary work on PEP's uld be an eligible use, HUD has 'informed N 1 f us that our CDBG allocation will only be approximately $450,00 and this request would deplete •, that program funding. 4. FINANCIAL IMPACTS The average cost per unit of rehabilitation is $9,269.00 There are funds available in the Low -mod Housing Fund for these requests. 5. ®UTCOME&OR PERFORMANCE MEASUREMENTs THAT WILL ,IDENTIFY SUCCESS OR COMPLETION: The rehabilitation and improvements to 36 existing units of housing for seniors and persons with a disability will be the performance measure. '6. RECOMMENDATION Adopt the attached resolution. is Q S ' RESOLUTION APPROPRIATING LOW -MOD HOUSING FUNDS TO PETALUMA ECUMENICAL PROPERTIES (PEP), FORTHE REHABILITATION OF FOUR OLDER SENIOR, RENTAL PROPERTIES. WHEREAS the City of Petaluma's State- certified Housing Element is required to "consist.of`an identification and analysis of existing and projected housing.needs and a statement of goals, policies, quantified objectives and scheduled programs for the preservation,:iinprovement, and development of housing; and WHEREAS Policy 6.4 of the 1.999 -2006 Housing Element specifically endorses the "promotion of the construction and maintenance of housing for the elderly," and WHEREAS Petaluma Ecumenical Properties (PEP) is a community- based , nonprofit, developer of low- income senior rental housing with asuccessful track record of developing, owning, and managing such properties; and WHEREAS,PEP requires.a one -time allocation of funds for much- needed rehabilitation on 36 of the agency's oldest properties, located at: 23.1 Wilson Street 154 Wilson Street 700 Daniel Street 1275 Lindberg lane WHEREAS`the. City's low -mod housing fund has available reserves for this purposes and PEP has submitted a request for use of those funds; NOW THEREFORE .BE IT RESOLVED that the Petaluma. Community Development Commission makes the following allocations to PEP: Renovation of Four Existing Senior Rental' Projects 306,676 BE IT FURTHER RESOLVED that the rehabilitation allocation shall be in the form of a grant with no required. g1forms /2001 agenda bill agendabillPEPcasagrande2d • • • 4 � ' iii 1 � PetcZlccma. Ecit/7iejrct•(11 Propertied November 21, 2002 Mrs. Bonne Gaebler Housing Administrator City of Petaluma 27 Howard Street Petaluma, CA'94952 . Corporate (Nice e 1 =100 Caullicid I,ant, - Petnittnra CA ( )4 ( ),! . r4= =1400 Phroie (707) 762 3O - 1 1. 07) 762 -46,57 lmlil: pcl�(�'1x�.Frl.�rt>Fscrites.orti RE: 2003 Petaluma Ecumenical Properties PCDC :Request from Un' designated Reserves —City Honsing'Budget 2002 — 2003 167 Edith Street Petaluma, CA 94952 Dear Bonne, E x 579 Vallejo street Petaluma Ecumenical Properties is requesting a one -time non- recurring PCDC allocation to Petaluma, CA 94952 subsidize the thirty six ( 36) rent restricted apartments built from 1978 to 1.988, in four separate developments, namely 23'1 Wilson, 154 Wilson, 700 Daniel, 1275 Lindberg. These properties 57 Vallejo street . are PEP's first, and not. funded through any regulatory agency, or receive any sort of on -going Petaluma CA 94952 subsidy. .They; .in fact, require extensive maintenance,1 capital improvement and intense apartment rehabilitation during vacancy /occupancy turnover. Lane In 2001, approximately was spent on these properties for upkeep and repairs. In W t Caull1eld ma, CA 94954 2002 (to date) we' have,spent $123,750 for upkeep and repairs (includes CDBG program grant awards). in 2003, we are predicting a capital improvement program for intense rehabilitation 306 Mountain View and preservation. totaling $300,676. Included in this number is an estimated $3,000 per unit . r Petaluma, CA :) 4),r2 cost turnover for vacan ies and the ongoing costs of preventative maintenance and emergency repairs as these buildings age for improvements such as new furnaces, window replacements, and the like. 1275 1_111dher,g lane Petaluma CA 94954 Our request at this time is' for a one time $300,676 from the City of Petaluma's 2002 — 2003 PCDC Undesignated`Reserve Fund. Due to the fact PEP's`budget is calendar year, PEP's 154 Wilson street request is for our 2003. Fiscal Year which begins in. January 2003. This request is not for the Petaluma, CA 94952 City's next funding cycle 'in June 2003. Future funds will not be requested for these units. The subsidy for them will be received through new development fee's awarded to PEP with each new development. 231 Wilson Street Petaluma CA 94952 The proposed Fiscal Year 2003 PEP budget is;enclosed for your review. 700 -709 Daniel Drive Thankyou.for your hopeful approval of this request. Please do not hesitate to contact me Petaluma, CA 04954 should you.require further information. Yours'truly; Vera R. Ciammetti Executive Director Enc. Petahimrt I:irrrirrnr <al l rr 4," r.r ,Y nury r,vj,r rlydr •alyd lo- prnrirlirrq a vdal la /nr l,!n' inr,aru elderly and r r. dl rlc r�lrtlilirt inrlrrrlin�.vrl>j , rim Ir, rl aurrr llu .pr, {lily r,/'N,, lnr rl., rr.,idcrrl,,.