HomeMy WebLinkAbout1992-12-15; City Council; 12003; SEPARATION AGREEMENT TO TRANSFER COMMUNITY DEVELOPMENT BLOCK GRANT LUMP-SUM DRAWDOWN FUNDS FROM THE COUNTY OF SAN DIEGO TO THE CITY OF CARLSBADRATION AGREEMENT TO TRANSFER CDBG LUMP-SUM
THE CITY OF CARLSBAD
Adopt Resolution No. 92 -3b 4 approving a Separation Agreement between
San Diego and the City of Carlsbad to transfer $507,451.55 from the County’s CI
Credit to the City’s CDBG Letter of Credit, authorizing the Mayor to sign the Agreerr
of the City, and allocating the total amount of $507,451 55 to the City’s CDBG Afforc
Reserve Fund.
ITEM EXPLANATION:
On September 18, 1984, the City entered into a Cooperation Agreement with the
Diego for the period of July 1, 1985 through June 30, 1988, for the purposes of a
Commercial/Residential Rehabilitation Program under the Community Developmei
(CDBG) Urban County Program. Funding for this program was provided by the U
of Housing and Urban Development (HUD) on a “Lump-Sum Drawdown” bas
operation, the program accomplished 19 commercial and residential rehabilitatic
detailed in Exhibit #2.
On September 30, 1989, revised HUD guidelines eliminated Lump Sum Drawdown
CDBG projects thereby terminating the City’s CDBG Urban County Commerc
Rehabilitation Program. As a result, all unobligated deposited funds under this
returned to the County of San Diego’s CDBG Letter of Credit.
Under the guidance of HUD, City and County staff have developed a Separation j
would formally separate the City from the County with regards to administratioi
County Program, and request that HUD transfer the unobligated program fi
County’s CDBG Letter of Credit to the City’s CDBG Letter of Credit.
Once transferred to the City’s CDBG Letter of Credit, the City assumes full re
expenditure of these funds. Pursuant to adoption of this resolution, and upon tr,
funds, the City Council agrees to re-allocate this money to the City’s Affordable Hc
Fund for use on affordable and supportive housing activities.
FISCAL IMPACT:
As of September 30, 1992, unobligated funds from the CDBG I
Commercial/Residential Rehabilitation Program totaled $507,451 55. This money ‘
the County’s CDBG Letter of Credit as required under the provisions of HUD gi
The Separation Agreement with the County will return $507,451 55 to the City’s
Credit for use on any CDBG-eligible program and/or project. The provisions of
Agreement request that HUD transfer these funds to the City “as soon as pract
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Council adoption of the resolution provides for re-allocation of the total amount of
to the City's Affordable Housing Reserve Fund (Account No. 391 -840-1 890-3742).
These funds are CDBG project specific and, therefore, may not be used to offset l
administrative costs associated with the use of this money. Possible impacts to tt
Fund could be in administrative costs associated with the development and implei
programs and/or projects funded with this money.
EXHl BITS:
1. Resolution No. Ci2-.?6 y and attached Separation Agreement.
2. Document titled "City of Carlsbad, CDBG Urban County Commercial/Residenti;
Rehabilitation Loan Program, Summary of Loans" dated December 1, 1992, on
Housing and Redevelopment Department.
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RESOLUTION NO. 92-364
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSa
CALIFORNIA, APPROVING A SEPARATION AGREEMENT BETWEEN COUNTY OF SAN DIEGO AND THE CITY OF CARLSBAD TO SEPM
AND TRANSFER $507,451.55 IN COMMUNITY DEVELOPMENT BI
GRANT (CDBG) LUMP-SUM DRAWDOWN FUNDS FROM THE COUNT] SAN DIEGO CDBG LETTER OF CREDIT TO THE CITY OF CARLS
CDBG LETTER OF CREDIT
WHEREAS, on September 18, 1984, the City entered in1
Cooperation Agreement with the County of San Diego for
period of July 1, 1985 through June 30, 1988, for the purpc
of administering a Commercial/Residential Rehabilita
Program under the Community Development Block Grant U
County Program; and
WHEREAS, funding for this program was provided by the
Department of Housing and Urban Development (HUD) on a "L
Sum Drawdowntt basis; and
WHEREAS, on September 30, 1989, revised HUD regulat
eliminated Lump-Sum Drawdown Allowability on CDBG projf
thereby terminating the City's CDBG Urban Cc
Commercial/Residential Rehabilitation Program; and
WHEREAS, City and County staff have develope
Separation Agreement that would formally separate the
from the County with regards to administration of the 1
County Program, and request that HUD transfer $507,451.!
unobligated Lump-Sum Drawdown funds from the County's
Letter of Credit to the City's CDBG Letter of Credit.
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the
Council of the City of Carlsbad, California, as follows
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1.
2.
That the above recitations are true and correct.
That the Separation Agreement between the County of
Diego and the City of Carlsbad transferring $507,451
of unobligated program funds from the County of San Di
CDBG Letter of Credit to the City of Carlsbad CDBG Let
of Credit, a copy of which is attached as EXHIBIT "A"
incorporated herein by reference, is hereby approved
3. That the Mayor of the City of Carlsbad is her
authorized and directed to execute said Separat
Agreement for, and on behalf of the City of Carlsbac
That the fund total of $507,451.55 be re-allocated to
City of Carlsbad CDBG Affordable Housing Reserve 1
(Account No. 391-840-1890-3742).
PASSED, APPROVED, AND ADOPTED at a regular meeting (
the City Council of the City of Carlsbad, California hell
the 15th day of December , 1992, by the following vote
wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard and Finnila
4.
NOES: None
ABSTAIN: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clkk
hjJ&/ &. f, LLLzaL-
(SEAL)
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EXHIBIT "A"
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SEPARATION AGREEMENT WITH METROPOLITAN
CITY OF CARLSBAD
This agreement entered into between the City of Carl
(hereinafter referred to as llCityll) and the County of San D (hereinafter ref erred to as tlCountyll) this day of
1992 .
WITNESSETH:
WHEREAS, the County of San Diego has entered into contr
with the United States of America through its Department of Hou
and Urban Development (HUD) to execute the County's Cornu Development Block Grant (CDBG) Program under the Housing Community Development Act of 1974, as amended (hereinafter refc to as llActll); and
WHEREAS, on September 18, 1984, the County and the City en1
into a Cooperation Agreement for the period of July 1, 1985 thi
June 30, 1988, in which both parties agreed to cooperat
undertake or assist in the undertaking of community developmen
housing assistance; and
WHEREAS, the County and the City have previously entered
Implementation Agreements (County Contract No's. 15671, 1
18542, 20422, 22638, 24439 and 26299) to carry out certain comm development activities; and
WHEREAS, the City, as of this date, has unexpendec unobligated Community Development Block Grant funds tota $507,451.55. This amount consists of $33,000 in Contract No. 1 $22,000 in Contract No. 18350; $79,189 in Contract No. 1
$108,862 in Contract No. 20422; $39,423 in Contract No.2
$50,156 in Contract No. 24439; and $60,000 in Contract No. 2625
unallocated funds of $114,821.55; and
WHEREAS, the County formerly administered the City's Corn Development Block Grant Program through June 30, 1988; and
WHEREAS, the City became a Metropolitan City under Act 07
1, 1988, and is now a Metropolitan City and administers it Community Development Block Grant Program; and
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WHEREAS, the City as a Metropolitan City, now desires t separated from the Countyls program through the transfer of obligations and responsibilities from County to City of unallocated funds from the Urban Countyls Letter of Credit future program income derived therefrom in accordance with Sec
106 (C) (3) of the Housing and Urban Rural Recovery Act of 198
IT IS AGREED AS FOLLOWS:
1. Community Development Block Grant funds of $507,45:
which consists of the unobligated funds within Contract No. I! Contract No, 18350; Contract No. 18542; Contract No. 20422; Con
NO. 22638; Contract 24439; and Contract Ne. 26299 and
unallocated funds of $114,821.55 shall be transferred fron County to City. This Agreement shall constitute a request to H transfer this amount of Community Development Block Grant funds the Urban County's Letter of Credit to the City's Letter of C.
as soon as practical by HUD.
City, upon transfer of these funds to the City's Lett
Credit by HUD, shall accept all obligations and responsibiliti HUD for the expenditure of the unobligated funds stated he These obligations include, but are not limited to, the Housin
Community Development Act of 1974, (Public Law 93-383) as ame the Regulations of the Department of Housing and Urban Develc relating to Community Development Block Grants (Title 24, Chapt Part 570 of the Code of Federal Regulations commencing with SE 570.1); and the assurances (HUD Form No. 7068); and auditjrnonitoring findings and program reporting.
city further agrees to carry out all activities foi agreed to be carried out by the County, as set forth in the Contract Numbers. Said activities to be carried out wit transferred funds which are the subject of the Separation Agrec
Transferred funds may be reallocated by the City to carry 01 eligible activities, in accordance with 570.305 and all applicable requirements.
4. County agrees that it accepts all obligation responsibilities to HUD for the expenditures and unliqu obligations associated with activities listed in the above con prior to the effective date of the transfer of funds City audit and monitoring findings associated with those expenditur obligations remain with County.
5. The City is entitled to any unobligated program which may result from the activities carried out with
transferred funds.
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6. The City agrees to fully indemnify, defend and sa harmless the County against any and all loss, damage, liabilit claim, demand, suit or cause of action resulting from injury harm to any person or property arising out of or in any w
connected with the performance of this Agreement, excepting on
fault or negligence of the County.
such injury or harm as may be caused solely and exclusively by t
This Agreement shall not have any force or effect unt
parties have executed this agreeme ve written.
7. approved by HUD.
COUNTY OF SAN DIEGO
BY
Dated : + A> /6. /.YZ
Commercial:
Retail Shops
Shopping Center
Retail Shop
Auto Service
Auto Supply
Office/Retail
Appraisal
Bakery
Market/Deli
Office
Liquor Store/Deli
Restaurant
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Date of Loan Yrs. @ Percent
08/25/82 10 @ 12%
09/02/82 10 @ 12%
03/24/83 7 @ 12%
08/30/83 10 @ 10%
04/12/84 Grant
05/01 184 10 @ 10%
10/03/84 10 @ 10%
10/15/84 Grant
1 1 /16/84 9 @ 10%
08/12/85 10 @ 10%
08/12/85 10 @ 10%
02/10/86 10 @ 10%
Residential:
Single Family
Single Family (Disabled)
Single Family (Elderly)
Single Family
Single Family (Female - Disabled)
Single Family (Female - Head of Household)
Date of Loan Yrs. @ Percent
08104183 15 @? 10%
08/06/83 Deferred
05/01 /84 Deferred
04/22/85 15 @ 3%
04/01 /88 Grant
06/15/88 15 @ 3%
06/29/83 15 @ 10%
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December 14, 1992
TO: DEPUTY CITY CLERK
FROM: Senior Management Analyst
SFPARATION AGREEMENT - Q>BG URBAN COUNTY REHABILITATION LOAN
PROGRAM
Attached are five (05) originals of the Separation Agreement to be signed by the MI
relative to the City's CDBG Urban County Rehabilitation Loan Program. This item i
scheduled for action by the City Council at its meeting of December 15, 1992.
All originals of the signed Agreement must be forwarded to the following address fc
review and approval by the County Board of Supervisors:
Stan Coombs, Community Development Manager
County of San Diego
Department of Housing and Community Development
3989 Ruffin Road MS 0231
San Diego, CA 92123-1815
If approved by the Board of Supervisors, the County's Department of Housing and
Community Development d forward the Agreement to the U.S. Department of
Housing and Urban Development (HUD) for final approval.
If you have any questions, please contact me at extension 2817.
ou for your assistance.
cLINTPHILWpS
Attachments
c: Housing and Redevelopment Director
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December 22, 1992
Mr. Stan Coombs Community Development Manager County of San Diego Department of Housing and Community Development
3989 Ruffin Road MS 0231 San Diego, CA 92123-1815
Dear Mr. Coombs:
RE: Separation Agreement with the County of San Diego for Tranz
of CDBG Lump-Sum Drawdown Funds
The Carlsbad City Council, at its meeting of December 15, 1s adopted Resolution No. 92-364, approving a Separation Agreement Transfer of CDBG Lump-Sum Drawdown Funds.
Enclosed is a certified copy of Resolution No. 92-364 and five originals of the above-referenced agreement.
&d*cNc Assistant City Clerk
KRK:ijp
Enclosures
1200 Carlsbad Village Drive - Carlsbad, California 92008-1 989 - (61 9) 434-