PUBLIC HOUSING AUTHORITY AGENDA REGULAR MEETING
MARCH 23, 2021
CITY OF HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY
Victor Farfan, Vice Chairmember Jesse Alvarado, Director
Myra Maravilla, Director Maria Teresa Del Rio, Director
Luis Roa, Chairmember
Tuesday, March 23, 2021 Regular Meeting, 5:30 PM
Ernie Hernandez, City Manager
Megan Garibaldi, City Attorney Poonam Davis, Interim City Clerk
AGENDA CALL TO ORDER ROLL CALL
PUBLIC HEARING COMMENTS AND AGENDA GENERAL PUBLIC COMMENTS ARE TO BE SUBMITTED AND CONDUCTED AS FOLLOWS:
AGENDA GENERAL PUBLIC COMMENTS
TO SUBMIT/PROVIDE PUBLIC COMMENTS PERTAINING TO GENERAL PUBLIC COMMENTS: It is advised to submit using one of the following options:
• Via E-Comment on the City of Hawaiian Gardens website. E-comments may be submitted
through our website PUBLIC COMMENT, which will become part of the official record. All E-Comments will be distributed to the Mayor and City Council members prior to commencement of the meeting. E-Comment must be submitted by no later than Tuesday, March 23,
2021 at 4:00pm. If submitting a comment pertaining to an agenda item, please reference the
agenda item.
• VIA WRITTEN CORRESPONDENCE may also be delivered to the City Hall Drop Box or
received via mail. All written correspondence will become part of the official record and will be distributed to the Mayor and City Council members prior to the commencement of the meeting. All written correspondence MUST be received by no later than Tuesday, March 23,
2021 at 4:00pm. If submitting a comment pertaining to an agenda item, please reference the
agenda item.
• VIA PHONE VOICE MESSAGE FOR CALL-BACK: A person may also leave a voice message
and provide name and phone number to receive a call back during the public comment section. If the comment pertains to an agenda item, you must reference the agenda item in your voice message. Contact: 562.420-2641, Ext. 251. Each caller will be given 3 minutes to speak. All messages MUST be received by no later than Tuesday, March 23, 2021 at 4:00pm. ONLY ONE (1) PUBLIC COMMENT PER PERSON WILL BE ACCEPTED EITHER WRITTEN OR CALL BACK VIA PHONE.
PUBLIC HOUSING AUTHORITY AGENDA REGULAR MEETING
MARCH 23, 2021
Please see the Public Comment section at the beginning of the agenda for criteria to submit comments, as a result of the COVID-19 Coronavirus pandemic situation.
The City Council shall not discuss or take action relative to any public comment unless authorized by California Government Code Section 54954.2(b).
AGENDA ORGANIZATION
This is the time for the City Council to discuss any changes in the order of agenda items.
A. PUBLIC HEARING(S) / HEARING(s)
1. RECOMMENDATION OF CONSIDERATION OF FOURTH AMENDMENT TO THAT REAL PROPERTY CERTAIN PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (GREEN PROPERTY).
SUGGESTED ACTION: Approve recommendation. B. CONSENT CALENDAR
1. WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS ON THE AGENDA
COUNCIL ACTION: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determine to have been read by title and further reading waived.
SUGGESTED ACTION:
2. RECOMMENDATION TO RECEIVE AND FILE SECTION 8 WARRANT REGISTER REPORT FOR THE MONTH OF MARCH 2021.
SUGGESTED ACTION: Approve recommendation.
3. RECOMMENDATION TO RECEIVE AND FILE SECTION 8 MONTHLY STATUS REPORT FOR THE MONTH OF FEBRUARY.
SUGGESTED ACTION: Approve recommendation.
4. RECOMMENDATION TO APPROVE RESOLUTION NO. 001-2021
AUTHORIZING FACSIMILE SIGNATURES OF THE CHAIRMEMBER, VICE CHAIRMEMBER, AND THE CITY MANAGER ON PUBLIC HOUSING
WARRANTS.
PUBLIC HOUSING AUTHORITY AGENDA REGULAR MEETING MARCH 23, 2021 C. DISCUSSION ITEM(S) D. NEW BUSINESS
E. ORAL STAFF REPORT(S)
F. ORAL AUTHORITY REPORT(S)
G. CLOSED SESSION H. ADJOURNMENT
Adjourn to the next Regular Public Housing Authority meeting to be held on Tuesday, April 27, 2021 at 5:30 PM.
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DATE: March 23, 2021
TO: Honorable Chairperson and Directors of the Public Housing Authority
FROM: Ernie Hernandez, Agency Executive Director
BY: Megan Garibaldi, Agency General Counsel
RECOMMENDATION:
1. CONDUCT THE PUBLIC HEARING; AND
2. APPROVE THE FOURTH AMENDMENT TO THAT CERTAIN REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (GREEN PROPERTY) BETWEEN THE
HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY AND
HAWAIIAN 1311 LLC, DBA HOLIDAY INN EXPRESS (APN 7076-033-910)
SUMMARY:
On July 23, 2019, the Board of Directors of the Hawaiian Gardens Public Housing Authority approved, following a duly-noticed and conducted public hearing, that certain Real Property Purchase and Sale Agreement and Joint Escrow Instructions (Green Property) Between the Hawaiian Gardens Public Housing Authority and Hawaiian 1311 LLC, dba Holiday Inn Express for the property located at 22434 Norwalk Blvd. in the City (APN 7076-033-910) (“Purchase Agreement”).
On or about April 22, 2020, following a duly-noticed and conducted public hearing, the Planning Commission of the City of Hawaiian Gardens (“City”) recommended approval of Buyer’s proposed project for the Property, which includes the entitlements for the development of a four-story, 42,164-square foot, 71-unit hotel, which will include a lobby area, guest rooms, a meeting room, offices, a bar and lounge, fitness room, multipurpose room, business center, kitchen and breakfast area, public restrooms, laundry room, an outdoor pool and patio, 64 parking spaces, storage areas, a pool equipment room, and a mechanical/electrical room (the “Project”).
Agenda Item No.: ______________ City Manager: _________________
HAWAIIAN GARDENS
PUBLIC HOUSING AUTHORITY
STAFF REPORT
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On or about May 12, 2020, after a duly-noticed and conducted public hearing, the City Council of the City, pursuant to the applicable provisions of CEQA, found and determined that all of the significant environmental impacts of the Project, including through each of the entitlements, were adequately mitigated and adopted a Mitigated Negative Declaration, introduced Ordinance No. 593, approving and authorizing the execution of the Development Agreement by and between the City and Buyer for the development of the Project, and further approved the remaining Entitlements. On or about May 26, 2020, the City Council conducted the second reading of, and thereafter adopted, Ordinance No. 593, adopting the Development Agreement.
On that same date, the Public Housing Authority approved the First Amendment to the Purchase Agreement, which amongst other changes, set a closing date for the sale of the Property as September 1, 2020. Due to the Covid-19 pandemic, however, there was a significant tightening on the availability of financing for hotel-related construction projects. Accordingly, as authorized by the amended Purchase Agreement, the City Manager entered into a Second Amendment to the Purchase Agreement to further extend the closing date. A Third Amendment was also approved by the PHA Board to grant the City Manager an additional six (6) months of authority to extend the closing date, as needed.
As of the writing of this staff report, the Parties are moving toward the Close of Escrow as contemplated by the Purchase Agreement. To ensure that the Buyer proceeds expeditiously toward the construction and actual opening/operation of the Project, this Fourth Amendment adds a provision to the Purchase Agreement that requires the Buyer to close on its construction financing within 75-days of the Close of Escrow. If the Buyer fails to meet this requirement, the Buyer will be subject to a $250.00/day liquidated damages clause. This added provision will protect the Hawaiian Gardens Public Housing Authority and the City from the risk of a project that is delayed or not pursued expediently and is intended to cover the costs associated with staff and attorney time for having to enforce the surviving provisions of the Purchase Agreement and/or the Development Agreement.
FISCAL IMPACT:
None.
SUGGESTED ACTION:
Conduct the public hearing and approve the attached Fourth Amendment to the Purchase Agreement proposes the following change:
1. Adds a requirement that after Close of Escrow that the Buyer shall close on its construction financing within 75-days of the Close of Escrow.
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Failure to do so will result in $250.00/day liquidated damages. This provision will survive and remain enforceable until satisfied.
ATTACHMENTS:
65320.00300\33783426.2
-1-FOURTH AMENDMENT TO
REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (GREEN PROPERTY)
TCB Real Estate Services Escrow No: 19-1291
(“Escrow”)
10890 Paramount Blvd. Downey, CA 90241
Attention: Liana Cadena, Escrow Officer (“Escrow Holder”)
THIS FOURTH AMENDMENT TO REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (Green Property) (“Fourth
Amendment”) is dated this 23rd day of March, 2021, by and between the HAWAIIAN
GARDENS PUBLIC HOUSING AUTHORITY, a public body, corporate, and politic
(“Seller”), and HAWAIIAN 1311 LLC dba Holiday Inn Express, a California limited liability company (“Buyer”). Buyer and Seller are herein sometimes referred to as a “Party” or the “Parties.” This Fourth Amendment is made with reference to the following facts, which are intended to be part of the substance of the agreement between the Parties:
RECITALS
A. Seller owns that certain real property consisting of approximately 1.25 acres and generally located at 22434 Norwalk Boulevard, Hawaiian Gardens, California, which is more particularly described in Exhibit “A” attached to that certain Real Property Purchase and Sale Agreement and Joint Escrow Instructions (Green Property) (the “Original Agreement”). All capitalized terms used in this Amendment shall have the meaning first given to them in the Agreement, unless otherwise defined in the First Amendment to the Real Property Purchase and Sale Agreement and Joint Escrow Instructions, dated May 26, 2020 (the “First Amendment”), the Second Amendment to the Real Property Purchase and Sale Agreement and Joint Escrow Instructions, effective as of August 31, 2020 (the “Second Amendment”), or that Third Amendment to the Real Property Purchase and Sale Agreement and Joint Escrow Instructions, dated January 25, 2021 (“Third Amendment” and collectively with the Original Agreement, the First Amendment, and the Second Amendment, the “Agreement”).
B. On July 23, 2019, the Board of Directors of the Seller approved the Agreement, which became effective under the terms of the Agreement on August 6, 2019. Pursuant to the Agreement, Escrow No. 19-1291 was subsequently opened on August 12, 2019 with TCB Real Estate Services and is currently pending.
C. On or about April 22, 2020, following a duly-noticed and conducted public hearing, the Planning Commission of the City of Hawaiian Gardens (“City”) recommended approval of Buyer’s proposed project for the Property, which includes the Entitlements for the development of a four-story, 42,164-square foot, 71-unit hotel, which will include a lobby area, guest rooms, a meeting room, offices, a bar and lounge, fitness room, multipurpose room, business center, kitchen and breakfast area, public restrooms, laundry room, an outdoor pool and
65320.00300\33783426.2
-2-patio, 64 parking spaces, storage areas, a pool equipment room, and a mechanical/electrical room (the “Project”), as more specifically described in the following Entitlements: PLNG 2019-0033 (CONDITIONAL USE PERMIT), Case No. PLNG 2019-0034-VAR (PARKING), and Case No. PLNG2019-0035-VAR (HEIGHT), as well as the Mitigated Negative Declaration prepared for the Project, in accordance with the applicable provisions of the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and the regulations promulgated by the Secretary of Resources pursuant thereto (Title 14 of the California Code of Regulations, Section 15000 et seq.) (collectively, “CEQA”), and a Development Agreement by and between the City and Buyer for the development of the Project (the “Development Agreement,” with each of the foregoing being an Entitlement, and collectively, the Entitlements).
D. On or about May 12, 2020, after a duly-noticed and conducted public hearing, the City Council of the City, pursuant to the applicable provisions of CEQA, found and determined that all of the significant environmental impacts of the Project, including through each of the Entitlements, were adequately mitigated and adopted a Mitigated Negative Declaration, introduced Ordinance No. 593, approving and authorizing the execution of the Development Agreement by and between the City and Buyer for the development of the Project, and further approved the remaining Entitlements.
E. On or about May 26, 2020, the City Council conducted the second reading of, and thereafter adopted, Ordinance No. 593, adopting the Development Agreement. The Parties have subsequently entered a First Amendment to the Development Agreement, in accordance with its terms, to extend the schedule of performance deadlines consistent with the closing date of the Agreement.
F. Specifically, the Agreement provides certain provisions relating to, amongst other things, the close of escrow. In the First Amendment, the Parties clarified, amongst other things, the conditions precedent and period for Closing, as well as a right of repurchase by the Agency in certain events. In the Second Amendment, the Parties extended the Outside Closing Date, as a result of constraints relating to the ongoing COVID-19 pandemic. In the Third Amendment, the Parties further extended the Outside Closing Date until May 1, 2021 and granted the City Manager the authority to extend the outside closing date for an additional six (6) months.
G. With the close of escrow forthcoming, the Parties now wish to amend the Agreement for a fourth time to include a post-closing condition that will survive the close of escrow and remain valid and enforceable until satisfied. This condition is that Buyer must close on its financing for the construction of the Project within 75-days after the date of the Close of Escrow. Further, Buyer’s failure to close on its financing by the 75-day deadline will subject the Buyer to liquidated damages in the amount of two hundred and fifty dollars ($250.00) per day. (“Fourth Amendment”).
NOW, THEREFORE, IN CONSIDERATION OF THE TERMS, PROMISES, AND COVENANTS OF SELLER AND BUYER AS SET FORTH IN THE AGREEMENT, THE TERMS, PROMISES, AND COVENANTS OF SELLER AND BUYER AS SET FORTH HEREIN, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:
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-3-1. Recitals. The foregoing recitals are an integral part of this Fourth Amendment and
are binding on the Parties.
2. Post Close of Escrow Financing Condition. Section 3.12 of the Agreement is
added to read as follows:
3.12 Financing Post-Closing Condition. Buyer, no later than seventy-five (75) days after the Close of Escrow, Buyer shall close on the financing necessary for the construction of the Project in an amount no less than set forth in its Financing Commitment and provide Seller Notice of such closing. In the event Buyer fails to satisfy this requirement, Buyer agrees to pay the sum of two hundred and fifty dollars ($250.00) per day as liquidated damages for each day Buyer fails to close on the financing for the construction of the Project past the seventy-five (75) day deadline. The Parties agree that the sum of $250.00 per day is a reasonable estimate of the damages Seller would suffer from Buyer’s breach of this section and, further, that this Section 3.12 shall in no way limit or restrict the rights and remedies of Seller for breach or default under the Agreement, and all such remedies are cumulative, as set forth in Section 5.4. This Section 3.12 shall survive the closing and shall not terminate until Buyer has satisfied the conditions stated herein.
3. All Other Terms to Remain the Same. Except as specifically provided by this
Fourth Amendment, all other terms of the Agreement remain the same and in full force and effect.
65320.00300\33783426.2
Signature Page to the Fourth Amendment
to the Real Property Purchase and Sale Agreement and Joint Escrow Instructions
by and between
the Hawaiian Gardens Public Housing Authority and Hawaiian 1311 LLC dba Holiday Inn Express
IN WITNESS WHEREOF, the Parties have signed and entered into this Second Amendment to the Agreement by and through the signatures of their respective authorized representative(s) as of the Effective Date of this Fourth Amendment, as follows:
SELLER: BUYER:
HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY,
a public body, corporate and politic
HAWAIIAN 1311 LLC dba Holiday Inn Express,
a California limited liability company
Ernie Hernandez, Executive Director
Nitin Patel,
Principle Managing Member
Ashish Patel,
Principle Managing Member ATTEST:
Poonam Davis, Acting Agency Clerk
APPROVED TO FORM:
Megan Garibaldi, Best Best & Krieger LLP Authority General Counsel
DATE: March 23, 2021
TO: Honorable Chairperson and Board Members
FROM: Ernie Hernandez, Executive Director
BY: Gloria R. Thomas, Housing Rehabilitation Supervisor
RECOMMENDATION:
Receive and file Section 8 Warrant Register Report for the month of March 2021.
SUMMARY
The attached warrant report submitted for the Public Housing Authority Board’s review and approval for the Housing Assistance Payment (HAP) for March 1, 2021 for $109,637.54.
FISCAL IMPACT
Fiscal impact is none. Sufficient funds have been allocated in fund 28.
SUGGESTED ACTION
Receive and file the Warrant Register Report for March 1, 2021.
ATTACHMENT(S)
• Warrant Register 3/1/2021
Agenda Item No.: ______________ City Manager: _________________
CITY OF HAWAIIAN GARDENS
PUBLIC HOUSING AUTHORITY
STAFF REPORT
DATE: March 23, 2021
TO: Honorable Chairperson and Board Members
FROM: Ernie Hernandez, Executive Director
BY: Gloria R. Thomas, Housing Rehabilitation Supervisor
RECOMMENDATION:
Receive and file Section 8 Monthly Status Report for the month of February 2021.
SUMMARY:
The attached Voucher Management System (VMS) Report reflects the status of the Section 8 assisted households as of February 1, 2021.
DISCUSSION:
The attached VMS Report reflects 113 (97 regular vouchers + 16 port outs) units leased to participating households along with reports on demographics on those households. HUD has notified staff of a disbursement for the month of February 1, 2021 in Housing Assistance Payments (HAP) in the amount of $96,830 and $10,510 for Administrative Fees. The current available funding is to assist approximately 115-119 families monthly. Staff is routinely reviewing the waitlist to determine eligibility on additional families and increase leasing efforts.
WAIT LIST AND PREFERENCES
The Waiting List Report reflects 963 households on the Waiting List and gives demographics for those households.
As vouchers become available, families on the waiting list must be selected for assistance in accordance with the policies. The order in which families receive assistance from the waiting list depends on the selection of preferences that the family qualifies for. The source of Housing Choice Voucher (HCV) funding also may affect the order in which families are selected from the waiting list. The City of Hawaiian Gardens Housing Authority (HGHA) has established local preferences to give priority to serving families that meet those criteria.
Agenda Item No.: ______________ City Manager: _________________
CITY OF HAWAIIAN GARDENS
PUBLIC HOUSING AUTHORITY
STAFF REPORT
The following are the HGHA’s local preferences:
(1) The Public Housing Authority (PHA) will offer a preference to any Hawaiian Gardens’ resident family that has been terminated from its HCV program due to insufficient program funding.
(2) Residents of Hawaiian Gardens (without regard to any minimum period of duration). Families with a member who works in or has been hired to work in Hawaiian Gardens shall also be treated as residents and given a preference in selection among applicants.
(3) Families of service-connected disabled veterans or servicemen who contribute to the household income.
(4) Families of all other veterans or servicemen with honorable discharge who contribute to the household income.
(5) The PHA will give preference to: A family whose single member is an involuntarily displaced person, or whose head of household or spouse or single member is an elderly person or disabled or handicapped person over a single person, who is not elderly, disabled, handicapped or involuntarily displaced.
SUGGESTED ACTION:
Receive and file the attached Program Status Report.
ATTACHMENTS:
Attachments (Demographic Reports):
A. VMS Report of Households Leased
B. Head of Household Based on Gender and BR Size C. Household Members by Ethnicity
D. All Household Members by Race
DATE: March 23, 2021
TO: Honorable Chairperson and Board Members
FROM: Ernie Hernandez, Executive Director
BY: Linda Hollinsworth, Finance Director
RECOMMENDATION:
APPROVE RESOLUTION NO. 2021-001 AUTHORIZING THE
SIGNATURES OF THE CHARIMEMBER, VICE CHAIRMEMBER, AND EXECUTIVE DIRECTOR ON PHA WARRANTS
SUMMARY:
The City uses a facsimile signing machine to sign warrants. At the City Council meeting on March 9, 2021 Resolution 009-2021 was approved authorizing facsimile signatures on City warrants of two of the following: Mayor, Mayor Pro-Tem or City Manager. Since the PHA has a separate checking account, staff is requesting approval by the PHA board to authorize facsimile signatures on checks for the Section 8 warrants of two of the following: Chairmember, Vice Chairmember or Executive Director. Our current Executive Director will be leaving and this name will need to be removed from the bank signature cards and the check signing machine. By adding the position of Vice Chairmember , staff can have the Chairmember and Vice Chairmember complete the signature cards and the appropriate changes can be made to update authorized signers by the end of March. When the new Executive Director joins the City, another change can be made if desired or the current signatures can remain until the next change is required in December when a new Chairmember is selected.
FISCAL IMPACT:
The check signing machine update cost is approximately $350- $400 for each update.
SUGGESTED ACTION:
Approve recommendation.
ATTACHMENTS:
A. Resolution No. 2021-001
Agenda Item No.: ______________ City Manager: _________________
CITY OF HAWAIIAN GARDENS
PUBLIC HOUSING AUTHORITY
STAFF REPORT
ATTACHMENT A
CITY OF HAWAIIAN GARDENS RESOLUTION NO. 2021-001
A RESOLUTION OF THE HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AUTHORIZING THE FACSIMILE SIGNATURES OF THE CHAIRMEMBER, VICE CHAIRMEMBER AND EXECUTIVE DIRECTOR ON WARRANTS FOR THE PUBLIC HOUSING AUTHORITY WHEREAS, the City has previously authorized the use of facsimile signatures in City Ordinance 489, and
WHEREAS, the City requires the use of two (2) of the signatures on all warrants, and WHEREAS, Resolution 009-2021 approved the use of the Mayor, Mayor ProTem or City Manager on facsimile signatures for City warrants,
WHEREAS, the Board of the Public Housing Authority (PHA) desires to authorize any two of the following positions to provide the required two (2) signatures for Public Housing Authority warrants: Chairmember, Vice Chairmember, Executive Director, NOW, THEREFORE BE IT RESOLVED BY THE HAWAIIAN GARDENS PUBLIC HOUSING AUTHORITY AS FOLLOWS:
Section 1. The Hawaiian Gardens Public Housing Authority hereby approves Resolution 2021-001 authorizing the use of two of the positions of Chairmember, Vice Chairmember or Executive Director to be used as facsimile signatures on PHA warrants.
Section 2. The PHA Board hereby authorizes the Executive Director and Finance Director to take the necessary actions to implement this resolution.
Section 3. The PHA Board hereby directs the Secretary or designee to sign Resolution No. 2021-001 attesting its passage by the PHA Board.
PASSED, APPROVED AND ADOPTED BY THE BOARD OF THE PUBLIC HOUSING
AUTHORITY OF THE CITY OF HAWAIIAN GARDENS ON THIS 23RD DAY OF
MARCH 2021.
_____________________________ LUIS ROA, CHAIRMEMBER
ATTEST:
_______________________________ Poonam Davis,
