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2018-11-07 VHC Minutes (Special) MINUTES OF THE SPECIAL VERNON HOUSING COMMISSION MEETING OF THE CITY OF VERNON HELD WEDNESDAY, NOVEMBER 7, 2018, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA CALL TO ORDER & FLAG SALUTE The meeting was called to order at 6:00 p.m. by Chair Kyle Cooper; Commissioner Melissa Ybarra led the flag salute. Members Present: Kyle Cooper, Melissa Ybarra, Carol Menke, Steven Froberg, Steven Florman, Frank Gavina Members Absent: Hector Garcia CHANGES TO THE AGENDA City Clerk Maria Ayala announced that are no changes to the agenda. PUBLIC COMMENT No public comment provided. PUBLIC HEARING 1. Public Works A Resolution of the Vernon Housing Commission Establishing Rental Rates Recommendation: A. Find that the proposed action is exempt under the California Environmental Quality Act (“CEQA”) review because it is a continuing administrative activity that will not result in any direct or indirect changes in the environment and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378. B. Conduct a Public Hearing; and C. Adopt a resolution establishing rental rates, specifically to accomplish the following: 1. Establish annual rent adjustments for occupied units; 2. Establish a method for determining rents for vacant and remodeled units, and; 3. Establish rent for recently remodeled unit located at 4321 Furlong Place. City Clerk Maria Ayala read the proposed Resolution. Director of Public Works Daniel Wall reported on the proposed. Special Vernon Housing Commission Meeting Minutes November 7, 2018 Page 2 of 3 Commission had questions for staff regarding the following, with staff providing responses accordingly: questions regarding established rental rates; rationale behind rent discounts; HUD rate; impact of lack of amenities and existing hazards on rental rates; efforts made in response to hazards such as lead, etc.; questions over how the Fair Market Value is calculated; and concerns over the Commission’s oversight over rental rates. Chair Cooper opened the public hearing for public comment at 7:10 p.m. Public Comment: Diana Gonzales, resident, addressed the Commission regarding the following: fair market rental rates, uniformity in rental rates for all units, procedures in place to determine fair market tiers, questioning whether or not choosing to have an existing rental unit remodeled would increase the tenant’s current rental rate, and clarification over what the Commission’s authority and responsibility is regarding establishing or recommending rental rates. A brief discussion ensued between Commissioners and staff regarding rent increases, units remodeled and protective submarket rates. Monica Rodriguez, resident, commented that as a single parent, the rent increase would present a hardship and advised the Commission that a decision should not be made until notices are sent to all tenants to attend the public hearing and have their voices heard regarding this issue. She compared renting in Vernon versus where she used to live in Huntington Park, and reiterated Ms. Gonzales concerns regarding uniformity in rental rates. Ms. Rodriguez also expressed her concern over the efforts the City made regarding Exide. Leticia Lopez, resident, inquired as to the process of the City’s relocation request list for tenants who want to move to a different unit. Ms. Lopez also commented on the following: the adversity rate the City had in the past was due to the environmental hazards the tenants have to deal with; concerns regarding uniformity in rental rates; inquired as to how the new rental rates coupled with the lack of amenities in the City will affect future interest in renting a housing unit in Vernon; and concerns over having to potentially pay a higher rental rate for a newly remodeled unit over a unit that was remodeled in 2010. Chair Cooper closed the public hearing at 7:37 p.m. A discussion ensued between Commission and staff regarding transparency, fairness, market rates, HUD rates, adversity factor, and policies. After considerable discussion the Commission came to a consensus to TABLE the public hearing and proposed resolution, with various amendments, to the next Commission meeting, with directives to staff to (1) provide notice to tenants via mail and by personal delivery of the public hearing; and (2) that any potential rent increases would take effect until March 2019. Amendments to proposed resolution are as follows: - Page 2, Section 3: “four percent (4%)” shall be changed to “three percent (3%)” Special Vernon Housing Commission Meeting Minutes November 7, 2018 Page 3 of 3 - Page 2, Section 3: Last sentence, “In the event that…the four percent (4%) cap.” Shall be deleted. - Page 2, Section 4: Add language to the end of Section 4 as follows: “For purposes of this Section 4, a unit temporarily vacated by an existing tenant for purposes of a remodel shall not constitute a “vacant unit””. - Page 2-3, Section 5: Delete Section 5. - Page 3, Section 6: Delete Section 6. ORAL REPORTS No oral reports provided from staff. Chair Cooper directed staff to look into modifying the City’s website so that City Housing information can be easier to access. The Commission also requested that the City conduct an analysis on cost of maintenance for the City’s housing. SECOND PUBLIC COMMENT Leticia Lopez inquired if transfers of current residents will be grandfathered with the base rent and additional 3% increases. The Commission replied that they would not be grandfathered. ADJOURNMENT With no further business, at 8:35 p.m., Chair Cooper adjourned the meeting ________________________ Kyle Cooper Chair ATTEST: _________________________ Maria E. Ayala City Clerk