CHC 07-09-98CALL TO ORDER
Meeting was called to order at 3:35 p.m.
Members Present: Dick Schuster, Cecilia Fu, Kathy Robinson
Members Absent: Sylvia Machamer
Staff Present: Yvonne Kelley, Robert Cowan
Others Present: Mary Ellen Chell
Approval of Minutes:
Dick moved that minutes be approved as submitted, Kathy Robinson seconded.
VOTE: 3-0
Written Communications:
None
Oral Communications:
None
NEW BUSINESS:
1. Selection of new Vice-Chair: Dick Schuster stated that Vera Gil had made
recommendations that Cecilia Fu be nominated as Vice Chair, but he felt since Kathy Robinson's
term is limited she should be Vice Chair moving into Chair before the end of her term, whereas
Cecilia has a full term to complete. Kathy Robinson stated she would defer to Cecilia if she was
interested in the position. Cecilia Fu stated that she is so new to the Committee that she l'elt
another year of experience is necessary before she accepts Vice Chair.
Dick Schuster moved to nominate Kathy Robinson as Vice Chair, Cecilia Fu seconded.
Vote: 3-0
2. CCS Funding Subcommittee Assignment: Kathy Robinson stated that these representatives
would be responsible for future funding for CCS as well as cyclical workload of the agency. Thc
committee would consist of Mary Ellen Cheil, Vera Gil, one member maybe two t¥om this
committee. Dick Schuster volunteered to serve, but felt that another member should be
- encouraged to serve. Cecilia Fu volunteered to serve also. Dick moved that the committee
appoint Dick Schuster and Cecilia Fu to serve on subcommittee. Kathy Robinson seconded.
Vote: 3-0
3. Discussion of rehabilitation program strategies: Kathy Robinson stated that this item was
placed on the agenda because the City Council suggested that a re-evaluation of the prograln take
place and possibly changed and/or expanded to include other activities. Robert Cowan stated
that Councilman Statton was most interested in re-focusing the rehab program to those blighted
areas in the City (primarily apartment areas). Although the rehab program is targeted at single
family homes, Councilman Statton felt that the areas needing assistance would be Greenwood
Court, Park Circle, Beardon Drive.
Kathy Robinson asked if multi-family units were excluded in the program or if there is a
percentage of single family versus multi-family units being rehabbed. Mr. Cowan stated that no
multi-family units were being rehabbed with the exception of the non-profits that were givcn
loans. The question was then asked who would be the qualifying person? Kathy Robinson
stated that in her experience the residents would have to income qualify and annual certifications
be performed or either non-profits be given the loans, therefore qualifying a "property owner"
would not be necessary.
Robert Cowan stated that another alternative would be to shift these funds to CCS and they
construct units for very low and low income individuals. Mr. Cowan stated it might be hard to
find property owners who, in order to qualify for low interest loans, would have to keep rents
down.
Dick Schuster stated that staffs recommendation was for the committee to evaluate the
effectiveness of the rehab program. In order for the committee to accomplish this they need
additional information:
· Record of at least three or four year, more if possible the number of loans, the amounts
of the loans, general work completed, interest and fees, and location.
· Loan portfolio from USE.
· Number of outstanding loans and total value.
· Balance of rehab fund.
Yvonne Kelley stated that historically over the past three years, loans have ranged from I to 2
loans per year whereas there are three loans in the pipeline as we speak with one that is io thc
preliminary stage. These loans are not in the unincorporated areas, but the City proper.
Robert Cowan stated that we currently have $273,000 in the fund, but with an average loan
ranging from 35,000 to 40,000 this money could be utilized quickly.
Dick Schuster stated that he was concerned about the escrow company we currently use and the
high fees that are being paid by clients. He stated that staff should do a better job ol' inlbrming
applicants of all fees. Yvonne Kelley stated that all her clients are informed of all llzcs when they
sign loan documents.
Robert Cowan stated that staff will:
· Define present program
Give recent loan history
· Look at areas that are blighted
Kathy Robinson asked whether staff could get a breakdown of owners of blighted properly. She
stated that staff would still have to sell the owners on securing a loan to bring their property up to
par. Mr. Cowan stated yes this can be accomplished through metro scan, a database program
with property ownership throughout Santa Clara County.
Yvonne Kelley stated that we should take into consideration property owners and the history o1'
them maintaining their property. We could get into a situation where we loan most or all of our
rehab money to a property owner who does not properly maintain his/her property belbre the
loan and does nothing to ensure the property is maintained after the rehab.
Robert Cowan mentioned that Council had just approved a blight ordinance tbr the City and this
may help with some of the areas that are suggested as blighted. Mr. Cowan said he would ask
Vera to include a copy of the blight ordinance in the committee's next packet.
Adjournment: To meeting of August 13, 1998
SUBMITTED BY:
APPROVED BY:
K~tl~y Rq~inson, Chair
ATTEST:
Kimberly Smi~, ~ity Clerk
c/windows/housing/aih7998