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HomeMy WebLinkAboutMinutes-01-10-77-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING JANUARY 10, 1977 The City Council of the City of Downey held an adjourned regular meeting at 7:30 p.m., January 10, 1977, in the Council Chamber of the Downey City Hall, Mayor Hazel N. Scotto presiding. PRESENT: Council Members: William L. Greene Richard M. Jennings, Mayor Pro Tem Kenneth J. Miller Theodore H. Jackman Hazel N. Scotto, Mayor PRESENT: Charles W. Thompson, City Manager Ervin Spindel, Director of Community Development John H. Saunders, Administrative Analyst James Funk, Principal Planner Robert L. Shand, City Clerk -Treasurer Mayor Scotto announced the purpose of the adjourned meeting is to discuss the Housing Rehabilitation and Loan Program and any other business to come before the City Council. Mr. Thompson gave introductory remarks on the Neighborhood Rehabilitation Program. He said $250,000 was received in the first year and was not spent; $569,000 was received the second year; and the City is scheduled to receive $925,000 the third year. Mr. Thompson continued with the report and gave a list of expenditures to date. Mr. Saunders presented an overview of the Block Grant Program. He rendered a brief history of the Rehabilitation Program from its inception to the present (1940 to 1976). — Mr. Thompson stated the citizen participation in the meetings and that the average attendance was 50-to-60 people. He then explained to Councilman Jackman the HUD funding and the General Revenue Sharing Funds and the guide- lines established for Block Grant Funds. He outlined expenditures of the first and second year funds, a portion of which went toward the development of Rives Avenue School (Apollo Park Neighborhood Center). Mr. Saunders briefly reviewed the report. The report was rendered in notebook form. Mr. Saunders explained each section of the Housing Assistance Plan report. He turned the meeting over to Mr. James Funk, Principal Planner, to cover specific areas of conservation. Mr. Funk's opening topic was the neighborhoods and transitions within the City of Downey, identifying housing problem areas and recommendations designa- tion of 14 of the neighborhood conservation areas. The report also included identification of the neighborhood conservation program objectives, short term program objectives of rehabilitation of substandard structures, and long term program objectives. Mr. Funk said part of the entitlement of $926,000 next year which the City hopes to receive would be allocated toward the Neighborhood Rehabilitation Program. He indicated the program does not recommend the demolition of any units but recommends assisting people in the remodeling of their units. Discussion followed regarding Mr. Funk's report. Mr. Crissman of the Arroyo Group reviewed the proposal and said it attempts to derive a solution to housing rehabilitation from the condition of the market place in the City. It is proposed that a body be formed to give advice on the program to keep the public from making horrible mistakes, and involve contractors in the community in the rehabilitation program. Mr. Crissman commented that FHA loans would be available for reconstruction purposes. Discussion followed regarding various types of financing for the reconstruc- tion program. Mr. Crissman commented on the prerequisits for a Housing Coordinator to assist on the City staff. Such a person would be hired with the Block Grant Funds. Mr. Crissman said hewould certainly help within the scope of the program Council Minutes 1/10/77 (adjourned) -1- to hire a Housing Coordinator. Desirable qualifications include real estate experience with emphasis on house sales or house lending. Individuals with Social Science background should not be considered for the position. Mr. Crissman anticipates a newly hired Housing Coordinator will require extensive training. He commented public "in field" problems will arise, wherein a dwelling will be slated for demolition. Councilman Jennings emphasized the original purpose of the redevelopment program is to bring substandard houses up to code Mr. Thompson added that the program is also to rectify enfringements of the City Building Code. Councilman Jennings said there is not enough money available to bring all of the substandard houses up to code. Mr. Thompson explained how the program would proceed under the direction of a Housing Coordinator. Initially, areas in question would be studied and priorities established. Owners within the vast areas would then be approached regarding many problems existing on their properties. Discussion followed regarding various types of improvements permissable under the program and the manner of financing improvement projects. Councilman Jennings questioned the giving of grants for rehabilitation of housing units where necessary. He does not approve of this system. The word "grants" was stricken from Figure 6 of the Neighborhood Conserva- tion Program Objectives sheet, which is part of Information Report No. 5 -- Neighborhood Rehabilitation Handbook. Mr. Funk identified areas of the Neighborhood Pride Program. He recommended against the program because it is too involved. Mr. Crissman suggested that the Neighborhood Conservation Program objectives (Figure 6) referred to as Intermediate Short-term Program Objectives, Paragraph No. 1, be changed to read: "To keep the balance of the low income housing stock in the community." Mr. Funk cautioned the Council on a trend that exists in the City parcels, wherein 75 percent of the area was occupied by individual dwellings. This area has now decreased to 55 percent occupancy, the balance having been overlayed with apartment -type dwellings (multiple units), thus changing the value of the parcels. This, in turn, reflects a lower unit income per person being attracted into the area as compared to a former higher income unit individual who occupied the single resident dwelling. Mr. Crissman suggested that the Neighborhood Conservation Program objectives (Figure 6), paragraph No. 4, Intermediate Term Program Objectives be changed to read: (To decrease the number of uninhabitable units." Sub -paragraph lj was changed to read: "To encourage appropriate new construction." Councilman Jennings stated there are inhabited houses in the City of Downey in which the rehabilitation would be more than the value of the structure. He asked if any attempt would be made, wherein the City would purchase the dwell- ing units and attempt to rehabilitate the inhabitants and tear down the units, selling the property to the builders. Mr. Saunders replied in the overall Community Development Program, it would be possible; secondly, a home that could not be rehabilitated would not be given a loan. Councilman Jennings concluded the only alternative would be to purchase the building, clear the land, and resell the property which would result in a direct expense of the program funds. He outlined a possible plan, whereby the City would expend the available program funds in acquiring dilapidated properties, razing same, and selling the property for development of new dwellings. This would result in rehabilitation as far as higher property -tax revenues for the improved property. Mr. Saunders mentioned a decision for tonight's meeting is to ascertain whether the City wants to enter into a Rehabilitation Loan Program. Council Minutes 1/10/77 (adjourned) -2- 325 Councilman Jennings asked what step must be taken to apply for the $925,000 available for the Rehabilitation Program. Mr. Saunders replied it would be necessary for the City to show progress toward some type of Rehabilitation Program. He also said once the entitlement has been granted to the City, it is then the City's to apply to the program as intended. Councilman Jackman said he will need more time to study the entire program before he can cast a vote. Mayor Scotto entertained a motion to implement the Neighborhood Rehabilita- tion Program. There was no motion. At the request of Councilman Jennings, Mr. Spindel gave a chart presenta- tion of a cul-de-sac program for consideration in Assessment District 117 east of Paramount Boulevard between the streets of Adores to the north and Priscilla to the south. Financing of such a project would be available from Federal Revenue Sharing money. There being no further business to come before the City Council, the meeting was adjourned at 10:32 p.m. Robert L. Shand, City Clerk -Treasurer Hazel�N. Scotto, Mayor Council Minutes 1/10/77 (adjourned) -3-