City Council Minutes
4/23/2008 12:02:41 PM
4/10/2008 10:00:22 PM
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<br />CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK <br /> <br />1 '~L ~ll <br /> <br />1 <br /> <br />25:0095 <br /> <br />MINUTES <br /> <br />CITY COUNCIL OF THE CITY OF ARCADIA <br /> <br />SPECIAL MEETING <br /> <br />Augus t 5, 1980 <br /> <br />The City Council met in a Special Meeting at 6 p, m. August <br />in the Arcadia City Hall Conference Room for the purpose of <br />additional presentation on senior citizen housing. <br /> <br />5, 1980 <br />receiving <br /> <br />PRESENT: <br />ABSENT : <br /> <br />Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino <br />None <br /> <br />William Phelps, of a Municipal Consulting firm located in Rosemead, ex- <br />plained the services offered by his company and that of Goldrich, Kest <br />and Associates which firm owns, builds and manages many senior citizen <br />housing developments, one of which is in Monrovia. Mr. Phelps suggested <br />Council visit this facility. He then introduced Robert Hirsch, one of <br />the partners in the firm. <br /> <br />Mr, Hirsch then explained the association of his firm with'HUD in its <br />initial developments on the wes.t' coast. projec turais were the'h shown <br />of many of the facilities constructed and managed by his fi~. It was <br />stated in his remarks that units run approximately $8000 per unit for <br />land costs with 40 units to the acre - about $7 a sq. ft. or $300,000 <br />per acre - all with elevators and full security. An endeavor is always <br />made to design the facility to be compatible with the surrounding neigh- <br />borhood. He submitted in part that in addition to working with HUD they <br />have association with the California Housing Finance Agency. <br /> <br />In response to questions Mr. Hirsch said in part that all he would need <br />to get started would be the cooperation of the Planning Department .in <br />assisting them to seek out undeveloped land or perhaps pursue the possi- <br />bility of air rights on the race track property, ., this would leave the <br />parking intact One such development has been approved by HUD in an- <br />other city where municipally owned parking land was leased. He said <br />further that usually they are in a position to pay about $8000 per unit <br />for land cost. Non-profit facilities do not stay on the tax rolls where- <br />as the profit motivated facilities do. <br /> <br />As to rentals for senior citizens Mr. Hirsch explained that under Section <br />8 Program HUD awards the management a rent based upon today's cost and <br />expense of operation i, e., they would place a rental of $450 to $475 for <br />a one bedroom elderly .., they have a return designed at 95% collections <br />to give them 10% on what HUD determines is their invested capital after <br />cost certification when the development is completed. The rents which <br />are set by HUD are completely separated from what the tenants pay. The <br />tenant only pays 25% of his or her gross income. There is a required <br />certification every year by the tenant through management. There is an <br />automatic 5.1/2% increase each year based on management submitting CPA <br />audited annual financial statements ., if there is an increase they re- <br />ceive the automatic increase of 5.1/2% from HUD on the $450 per month <br />rent for instance. There are other ways in which HUD will reimburse the <br />management if need is justified. <br /> <br />Most of the developments are sold after construction - they are eagerly <br />sought after - they are safe projects ... HUD has a very involved proce- <br />dure called a physical transfer of assets... HUD has safeguards .. i. e., <br />for the first two years after a development is completed they will come out <br />every six months annually thereafter - checking on most every part of the <br />development ... replacement and repair '" the reserve for these replace- <br /> <br />-1- <br /> <br />8- 5-80 <br />
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