HomeMy WebLinkAbout1994-02-08; City Council; 12582; APPROVAL OF AN AGREEMENT FOR ADMINISTRATION OF A CARLSBAD RESIDENTIAL REHABILITATION PROGRAM BETWEEN THE CITY OF CARLSBAD AND THE COUNTY OF SAN DIEGOa 2!i PC
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AB # -, TITLEAPPROVAL OF AN AGREEMENT FOR ADMINISTRATION DEPT
MTG. $-8-?q CITY OF A CARLSBAD RESIDENTIAL REHABILITATION
PROGRAM BETWEEN THE CITY OF CARLSBAD AND DEPT. fi'@ THE COUNTY OF SAN DIJ3GO CITY
RECOMMENDED AGTIQN;
Adopt Resolution No. Cfq-YS to approve an agreement between the City of Carlsbad and t
Housing Authority of the County of San Diego for the administration of a resident
rehabilitation program for property owners of single-family dwellings and mobile home un
within the City of Carlsbad.
ITEM EXPLANATION
On May 24, 1988, the Carlsbad City Council approved establishment of a resident
rehabilitation program to be funded with $90,000 in federal Community Development Bla
Grant (CDBG) Entitlement funding. Under the residential rehabilitation program, loans a
grants would be provided to low or moderate-income households throughout the City to assist
the rehabilitation of owner-occupied single family homes or mobile homes. To date, tht
allocated CDBG funds have not yet been utilized and the U.S. Department of Housing and Urk
Development (HUD) has identified the residential rehabilitation program as a slow movi
project.
Consistent with the residential rehabilitation program selected for CDBG funding, st
recommends that the City offer the following four residential rehabilitation loadgrant progra
to eligible property owners within target areas:
0 Interest Subsidy Loan;
0 Deferred Loan;
0 Elderly/Handicapped Grant; and
0 Weatherization Grant.
A summary of the above residential rehabilitation loadgrant programs are attached.
Eligible participants for these rehabilitation loadgrant programs will be limited to OWI
occupants of single family dwellings or mobile homes with a gross household income less th
80 percent of the San Diego County median income (low-income households).
Although the program will be open to all eligible resident property owners, city-wide efforts u
target single family homes located in Census Tract 179.00, which includes the Barrio area. TI
census tract represents the highest concentration of lower-income households in Carlsbad.
The establishment of a residential rehabilitation program is consistent with the policies, progran
and strategies regarding housing for lower-income households outlined in the Housing Elemc
of the Carlsbad General Plan and the Carlsbad Comprehensive Housing Affordability Strate
(CHAS). Residential rehabilitation loadgrant programs would enable eligible Carlsk
homeowners to physically maintain or improve their homes and enable them to live in dece
safe and sanitary housing.
At this time, staff is recommending that the City enter into the attached agreement with
Housing Authority of the County of San Diego to implement and administer the propo!
residential rehabilitation loadgrant programs for the period beginning February 1, 1994
September 30, 1994. The County of San Diego has previously conducted a resideni
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rehabilitation program for Carlsbad residents under the Urban County CDBG Program. In
addition, the County has trained staff to conduct all aspects of implementation and administration
of such a rehabilitation program, including eligibility determination, inspections, bidding process,
repair estimates, contractor monitoring and payments. By contracting with the County Housing
Authority, several issues regarding the CDBG funded residential rehabilitation program would
be resolved: 1) CDBG expenditure time lines, 2) benefit to those persons who have already
expressed an interest in rehabilitating their homes, and 3) no program development delays.
The full cost of all services incurred during the administration of the residential rehabilitatior
program by the County Housing Authority would be reimbursed by the City, pursuant to Boarc
of Supervisor’s Policy B-29 “Fees, Grants, Revenue Contracts - Department Responsibility foi
Cost Recovery“. While staff would like to recommend limiting the reimbursement 01
administration costs and recommend not entering into an agreement that leaves such costs to tht
City open ended, the County Housing Authority requires full cost recovery and there are grea
benefits to establishing a residential rehabilitation program and having the County Housini
Authority administer such a program.
Upon expiration of the proposed agreement, the City would have the opportunity to evaluate th
residential rehabilitation programs and the administration of these programs by the Count
Housing Authority. At that time, the City may elect to extend the agreement with the Count
or examine other alternatives.
Staff has been discussing the proposed residential rehabilitation programs and the agreemen
between the City and the County for the administration of such program over the past year. Bot
City staff and the County Housing Authority have agreed to the terms of the attached agreement
The Agreement for a Residential Rehabilitation Program was presented to the Housin
Commission on January 13, 1994 to develop a recommendation from the Housing Commissio
to the City Council on this Agreement. The Housing Commission unanimously approved
recommendation to the City Council to adopt a residential rehabilitation loadgrant program fc
lower-income single family homeowners and to approve an agreement between the City and tl
County of San Diego for administration and implementation of such program.
FISCAL IMPACT:
No fiscal impact on the General Fund. The Carlsbad Residential Rehabilitation Program will 1
funded through the federal Community Development Block Grant program.
EXHIBITS:
1 -
2 -
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City Council Resolution No. VCr - q 5
Housing Commission Resolution No. 94-004.
Summary of Proposed Residential Rehabilitation LoadGrant Programs.
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CJTY COUNCIL RESOLUTION NO. 9 4 - 4 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAI CALIFORNIA, APPROVING A RESIDENTIAL REHABILITATION PROGRAI
FOR SINGLE FAMILY DWELLINGS, INCLUDING MOBILE HOMES, AN
RECOMMENDING APPROVAL OF AN AGREEMENT FOR TH
THE COUNTY OF SAN DIEGO
ADMINISTRATION OF SUCHPROGRAM BY THE HOUSING AUTHORITY a
WHEREAS, the City Council held a public hearing on May 24, 1988 itl
approved establishment of a Carlsbad residential rehabilitation program to be funded wi
$90,0oO in federal Community Development Block Grant (CDBG) Entitlement funding;
WHEREAS, there exists a need within the City of Carlsbad to assist propeI
owners with rehabilitation of their single-family dwellings and mobile home units; and
WHEREAS, the City Council believes it to be in the best interest of the citize
of Carlsbad to provide an agency to administer a residential rehabilitation program for eligik
property owners; and
WHEREAS, the Housing Authority of the County of San Diego has 1
expertise, staff and resources to enable it to implement and administer all aspects of a resideni
rehabilitation program;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council
the City of Carlsbad, California, as follows:
1.
2.
The above recitations are true and correct.
The City Council hereby recommends approval of residential rehabilitat
loadgrant programs for lower-income owners and occupants of single fan
homes or mobile home units.
The City Council hereby recommends approval of an agreement with
Housing Authority of the County of San Diego, a copy of which is attachec
EXHIBIT "A" and incorporated herein by reference, to implement and admini!
the residential rehabilitation loan/grant programs for the period beginn
February 1, 1994 to September 30, 1994.
3.
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PASSED, APPROVED AND ADOPTED by the City Council of the City of
Carlsbad, California, on the 8th day of FEBRUARY
vote, to wit:
, 1994, by the following
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
I
L-l\. .mum 0 e
AGREEMENT FOR RESIDENTIAL REHABILITATION PROGRAM
BETWEEN THE CITY OF CARLSBAD AND THE
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO
THIS AGREEMENT is made and entered into this day of 1994, by a
between the ClTV OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and t
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO, a public corporation created pursuant to t
Housing Authority law of the State of California, hereinafter referred to as "Authority";
WHEREAS, there exists a need within the City of Carlsbad to assist property owners w
rehabilitation of their single-family dwellings and mobile home units; and
WHEREAS, the City Council believes it to be in the best interest of the citizens of Carlsbad
provide an agency to administer a residential rehabilitation program for eligible property owners; ai
WHEREAS, the Authority has the expertise, staff and resources to enable it to implement a
administer a residential rehabilitation program.
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties hereto
follows:
1. Grant Obligations:
The Authority shall implement and administer a Residential Rehabilitation Loan Program full!
accordance with the terms of the City's Community Development Block Grant Application, ot
rehabilitation grant applications and agreements and assurances made by the City to the Uni
States Department of Housing and Urban Development, hereinafter referred to as HUD or ot
grantors for funds to carry out said loan programs. The Authority also agrees tha,
undertakes, hereby, the same obligations to the City that the City has undertaken to HUC
other grantors pursuant to said applications and assurances, specifically including compliai
with OMBCircular A-702: "Uniform Administrative Requirements for Grants-in-Aid to State i
Local Governments". Reference is particularly made to Appendix G, relating to finan
management systems and Appendix 0, relating to procurement standards.
2. Services to be Drovided:
For the period commencing February 1, 1994 and expiring September 30, 1994 or until
funds allocated or received during the year are expended, whichever comes last, the Autho
agrees to provide the following services for the City:
A. Implement and administer an Owner Occupant Interest Subsidy Loan Program:
Within the target areas specified in Provision 3, the Authority shall provide a prog
for a private lending institution to make below market interest rate loans to elis
participants. The lending institution shall supply the full loan amount and the City :
provide a prepaid portion of the interest. The prepaid portion of interest shall bt
amount which will (1) not reduce the interest rate to participants to less than 5 per(
per annum, or (2) result in a subsidy payment of more than 7 percentage points.
maximum amount available shall be determined by the rehabilitation needs of
property and the owner's ability to repay the loan. Eligible participants for this I
shall be limited to those owner occupants of single family dwellings or mobile hon
whose gross household income is less than 80 percent of the San Diego County me1
income adjusted for larger or smaller household size. Such income limits shall be b:
on data published or revised by HUD.
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B. Implement and administer a Residential Rehabilitation Deferred Loan Program:
Within the target areas specified in Provision 3, the Authority shall provide a program
to make non-interest bearing deferred loans to eligible participants unable to qualify for
the Interest Subsidy Loan Program. The principal amount of the deferred loans shall be
repaid upon sale, transfer or change in the title to the property. All deferred loans will
be secured by a Trust Deed and Promissory Note for a single family dwelling or a junior
lien for a mobile home taken by the Authority on behalf of the City. All proceeds frorr
the repayment of these loans will be made to the Authority and deposited into a reserve
account for continued operation of the program by the Authority. The maximum loar
amount for any single deferred loan shall be $20,000 for a single family dwelling 01
$5,000 for a mobile home. Eligible participants shall be limited to those ownei
County median income adjusted for larger or smaller household size. Such incomf
limits shall be based on data published or revised by HUD.
implement and administer an Elderly/Disabled Grant Program and Weatherization Grar
Program:
(1)
occupants whose gross household income is less than 80 percent of the Sari DieQt
C,
Within the target areas specified in Provision 3, the Authority shall provide
program to make non-repayable grants to eligible participants. The maximur
amount for this type of grant shall be $1,000. Eligible participants for this typ
of grant shall be limited to owner occupants of single family dwellings or mobil
homes, who are elderly (62 or over) or handicapped (as defined by Socia
Security) and whose gross household income does not exceed 80 percent t
the San Diego County median income, adjusted for larger or smaller househol
size. All grants awarded shall be used on rehabilitation activities related to tt
maintenance or promotion of the health and safety of the occupant:
particularly the elimination of architectural barriers to the access and use of tt
dwelling unit by elderly or disabled occupants.
Within the target areas specified in Provision 3, the Authority shall provic
Weatherization Grants to eligible participants. The maximum amount for ar
single weatherization grant is $1,000. Eligible participants for this Grant sh be limited to owner occupants of single family dwellings or mobile hom
whose gross income does not exceed 80% of the San Diego County medi
income, adjusted for larger or smaller household size.
(2)
3. Target Areas:
For the purpose of this Agreement, the term "target area" shall refer to any location within t
City limits of Carlsbad (for all utilized funds), with specific emphasis within Census TrE
179.00.
4. Contract Amount:
In consideration for services provided for by this Agreements, the City shall make availablc
total of $90,000 in funding for fiscal year 1993-1994. Upon written request from 1
Authority, payment shall be disbursed by the City for individual applicant contracts. The fi
payment will be made no sooner than February 1, 1994.
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5. Requests for Funds:
All requests for funds made under this Agreements shall be in writing. The requests sh
include the following information on the eligible recipient of funding.
A.
B, Family income amount.
C. Family size.
D.
Name, address, and assessor's parcel number.
Type and amount of all current trust deeds on property to be rehabilitated.
E. Type and amount of assistance.
F.
G.
Description of work to be completed with requested funds.
Copy of approved environmental report on property.
6. Program Income:
All interest earned on CDBG funds advanced to the Authority, by the City, and all procee
from reconveyed loans, received by the Authority during the term of this Agreement, shall
retained by the Authority. The funds received as interest income or reconveyed loans shall
used by the Authority to further fund eligible projects as identified in this Agreement.
The program income shall be used by the Authority to fund eligible Residential Rehabilitati
Projects Drier to requesting additional funds for the City. Upon expiration of this Agreeme
all additional funds received by the Authority as interest income or loan reconveyances st
be returned promptly to the City.
Upon receipt of interest earned on funds advanced to the Authority under this Agreement
proceeds from loan reconveyances, the Authority shall immediately notify the City, in writii
of the type and amount of program income for accounting purposes. In addition, the Author
shall provide the City with the name of the person repaying the loan and the year in which 1
loan was originally made to the participant.
7. Administrative Costs:
The Authority shall be entitled to reimbursement for allowable costs, pursuant to Board
Supervisor's Policy b-29 "Fees, Grants, Revenue Contracts - Department Responsibility for CI
Recovery", incurred during administration of the Carlsbad Residential Rehabilitation Progri
or other programs authorized and implemented for the City. Administrative costs may incli
salaries, services, supplies and any miscellaneous expenses, which are applicable to '
program.
8. Records:
The Authority shall maintain all appropriate records for the Residential Rehabilitation Progr
and make them available for review by City or Federal staff upon request. On a quarterly ba:
the Authority shall submit a progress report to the City. The report shall include the followi
A.
B. Age of recipient.
Name and address of fund recipient.
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C. Family size.
D. Race of recipient.
E. Household income.
F. Type of funding.
G. Gender of recipient.
H. Amount of Funding.
I.
J.
Date funds requested from City.
Date funds released to recipient.
The City will provide the Authority with a Residential Rehabilitation Program Report form for L
in submitting the quarterly reports. The reports will be due on April 1, July 1, and Octobe
of 1994.
The Authority shall also submit quarterly reports on administrative costs to date. 1
administrative reports shall include information on the status of funds on hand, amount
drawdowns from the City, loan repayments and percentage of administrative costs incurred
compared to total program costs.
The Authority shall maintain a separate accounting for the City's Rehabilitation Program. 1
City, the Federal Grantor Agency, the Comptroller General of the United States, or any of tt
duly authorized representatives shall have access to any books, documents, papers and reco
of the Authority which directly pertain to the City's Rehabilitation Program for the purpose
audit, examination, excerpts and transcriptions.
9. DisDosition of Contract Amounts:
The City has established the following goals for the Residential Rehabilitation Program for
term of this Agreement:
A.
B.
C.
On behalf of the City, the Authority will attempt to complete at least two (2) single-far
contracts for loans and/or grants and five (5) mobile home contracts for loans and/or grants
the date of expiration for this Agreement.
Rehabilitation of Single Family Home - 50 percent of total program funds.
Rehabilitation of Mobile homes - 30 percent of total program funds.
Administrative Costs - 20 percent of total program funds.
IO. Eligibilitv Determination:
The Authority shall have the discretion to require such documentation as deemed necessar
determine the eligibility of applicants under the loan and grant programs outlined in
Agreement.
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1 1. Allowable Improvements:
The Authority shall approve improvements which are allowable and set forth in the guideline:
contained in the Residential Rehabilitation Loan Program Operations Manual only. Priorities foi
rehabilitation activities shall follow those priorities established in the Authority's Residentia
Rehabilitation Standards. All exceptions must be approved by the City.
12. Equal Opportunitv:
In accordance with Title VI of the Civil Rights Act of 1964; Title Vlll of the Civil Rights Act o
1968; Executive Order 1 1246 as amended by Executive Order 11 375 and 12086; and any HUI regulation heretofore issued to implement these authorities relating to Civil Rights, the Authorit
will not discriminate in provisions of services or employment and will take affirmative action t
solicit minority contractors wishing to work in the program.
13. Druq-Free Workplace:
In accordance with the Drug-Free Workplace Act of 1988, the City has submitted a certificatia
to HUD that a drug-free workplace will be provided for all employees. All subrecipient:
including the Grantee, are also encouraged to support the omnibus drug legislation passed t
Congress on November 18, 1988 by adopting and enforcing a policy to maintain a drug-frc
workplace.
14. Clean Air Act:
The Authority will comply with all applicable standards, orders, or requirements issued und
Section 306 of the Clean Air Act (42 USC 1857fh)).
Lead-Based Paint Poisoninn Notification Requirements:
In accordance with regulations issued at 24 CFR 510, 55, 570 and 590 on February 17, 198
the Authority will comply with applicable notification, testing and abatement procedures 1
lead-based paint. The amended regulations extend the construction date for notification frc
1950 to 1978.
The regulations require that applicants for rehabilitation assistance, tenants in housing bel
rehabilitated and purchasers of HUD-associated housing be provided with information on 1
following:
A.
B.
C.
D. of the precautions to be taken to avoid lead-based paint poisoning (incluc
I 5.
that the property may contain lead-based paint;
of the hazards of lead-based paint;
of the symptoms and treatment of lead-based paint poisoning;
maintenance and removal techniques for eliminating such hazards);
of the advisability and availability of blood lead level screening for children under se
years of age; and
that in the event lead-based paint is found in the property, appropriate abaten
procedures may be undertaken.
E.
F.
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The "Watch Out for Lead-Based Paint Poisoning" notification containing the above informal
shall be distributed to all appropriate recipients of funding under the subject programs. '
Authority shall retain a copy of the notification provided under this provision in their file
three (3) years.
16. Authorization to Execute Contracts:
The Authority is hereby authorized to execute, on behalf of the City, contracts and agreemc
with property owners for interest subsidy loans, deferred loans and grants. Loans and/or gr:
in an amount which exceeds the maximum amounts noted in this agreement must be appro
by the City prior to execution of any required contract/agreement. The Authority is also her
authorized to administer special accounting procedures as deemed appropriate to comply \
the provisions of this Agreement.
17. Hold Harmless:
The Authority agrees to defend, indemnify and hold the City harmless from any and all liat
which may arise or allegedly arise from the provision of said services. Should it becc
necessary for the City to commence suit to enforce any of the terms and conditions of
Agreement, or to defend any action relating to the provisions of these services, the Authc
agrees to pay any and all attorney's fees and court costs incurred by the City.
18. Amendments to Aqreement:
The City and the Authority concur that this Agreement may be amended by the mutual con
of both parties as deemed necessary. Exceptions to provisions of this Agreement mal
authorized by the City provided the exceptions are allowable under governing law
regulations. The City and the Authority also agree that in the event any provision of
Agreement is violated by either party, the other retains the right to cancel said Agreement L
thirty (30) days written notice.
ATTEST: (!?#&&J+ clrq c&ar
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO
BY
Deputy Secretary
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HOUSING COMMISSION RESOLUTION NO. 94-004
A RESOLUTION OF THE HOUSING COMMISSION OF
THE CITY OF CARLSBAD, CALIFORNIA
RECOMMENDING APPROVAL OF A RESIDENTIAL
REHABILITATION PROGRAM FOR SINGLE FAMILY
DWELLINGS, INCLUDING MOBILE HOMES, AND
RECOMMENDING APPROVAL OF AN AGREEMENT FOR
THE ADMINISTRATION OF SUCH PROGRAM BY THE
HOUSING AUTHORITY OF THE COUNTY OF SAY DIEGO
WHEREAS, the City Council held a public hearing on May 24,
approved establishment of a Carlsbad residential rehabilitation program to be funded wid
in federal Community Development Block Grant (CDBG) Entitlement funding;
WHEREAS, there exists a need within the City of Carlsbad to assist
owners with rehabilitation of their single-family dwellings and mobile home units; an
WHEREAS, the City Council believes it to be in the best interest of th
of Carlsbad to provide an agency to administer a residential rehabilitation program fo
property owners; and
WHEREAS, the Housing Authority of the County of San Diego has the t
staff and resources to enable it to implement and administer all aspects of a r(
rehabilitation program;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the
Commission of the City of Carlsbad, California, as follows:
1.
2. The Housing Commission hereby recommends approval of rz
rehabilitation loadgrant programs for lower-income owners and OCCL
single family homes or mobile home units.
The above recitations are true and correct.
....
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3. The Housing Commission hereby recommends approval of an agreemenl
residential rehabilitation loadgrant programs for the period beginning Fe
1994 to September 30, 1994.
Housing Authority of the County of San Diego to implement and admil
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Commission of the City of Carlsbad, California, held on the 13th day of January, 19'
following vote, to wit:
AYES: AVIS, ROMBOTIS, NOBLE, SATO, WELLMAN, ESCOBEDO,
NOES: NONE
ABSENT: CALVERLY, NANCY
AB STAIN: NONE
SCARPELLI, PETERSON
4
,,I'[d/ fl4
/,"',/ /&&q ,*;" /
,~ ATTEST: HouY coMMIss'oN
&&
EVANBECKER
HOUSING AND REDEVELOPMENT DIRECTOR
HC RES0 NO. 004 -2-
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EXHIBIT 3
SUMMARY OF PROPOSED RESIDENTIAL
REHABILITATION PROGRAM
0 e
COUNTY OF SAN DIEGO HOUSING AUTHORITY
RESIDENTIAL REHABILITATION LOAN/GRANT PROGRAM
ON BEHALF OF THE CITY OF CARLSBAD
The San Diego County Housing Authority offers a variety of loans and grants to eligible owner- occupants of single family dwellings or mobile homes for home improvements. Applicants musl
meet income eligibility requirements and live in the City of Carlsbad.
The following loans and grants are available:
A. Interest Subsidy Loan - Interest Subsidy Loans are made in conjunction with a financia
institution, which provides below market interest rate loans. The Housing Authority pay
a maximum of 7 percent of the current interest rate and the homeowner pays the balance
Applicant’s income must be at or below 80 percent of the median income for the Count
of San Diego. The maximum amount available is determined by the rehabilitation need
of the property and the owner’s ability to repay the loan.
Deferred Loan - If the homeowner is not able to obtain an interest subsidy loan undt
the program guidelines, then the homeowner may apply for a deferred payment loa1
There is no interest on this loan. The total amount borrowed must be repaid upon salt
transfer or change in title of the property. Owners may borrow up to $20,000 for
single family dwellings or $5,000 for mobile homes. Household income must be at (
below 80 percent of the median income for San Diego County.
Elderlv/Handicapped Grant - The homeowner must be either age 62 or older 1
handicapped. Up to $1,000 can be given with no payback requirement for those wl
meet the above criteria and the income limits for their household size. Househo
income must be at or below 80 percent of the median income for San Diego County. P
grants awarded shall be used for rehabilitation activities that maintain and promote t
health and safety of the owner occupant, particularly the removal of architectural barrie
to the access and use of the dwelling unit by an elderly or disabled occupant.
Weatherization Grant - Up to $1,000 can be given for weatherization items only with 1
payback requirement to eligible owner occupants. Household income must be at
below 80 percent of the median income for San Diego County.
B.
C.
D.
Median Income by Household Size:
1 2 3 4 5 6
80 % $24,600 28,100 3 1,600 35,100 37,950 40,7
If you are interested or have any further questions, please call now at 694-4823.
Revised: 01/
rAIIlDl I 0 0
AGREEMENT FOR RESIDENTIAL REHABILITATION PROGRAM
BETWEEN THE CITY OF CARLSBAD AND THE
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO
THIS AGREEMENT is made and entered into this day of 1994, by an(
between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and th
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO, a public corporation created pursuant to th
Housing Authority law of the State of California, hereinafter referred to as "Authority";
WHEREAS, there exists a need within the City of Carlsbad to assist property owners wit1
rehabilitation of their single-family dwellings and mobile home units; and
WHEREAS, the City Council believes it to be in the best interest of the citizens of Carlsbad tc
provide an agency to administer a residential rehabilitation program for eligible property owners: and
WHEREAS, the Authority has the expertise, staff and resources to enable it to implement anc
administer a residential rehabilitation program.
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties hereto as
follows:
1. Grant Obligations:
The Authority shall implement and administer a Residential Rehabilitation Loan Program fully in
accordance with the terms of the City's Community Development Block Grant Application, other
rehabilitation grant applications and agreements and assurances made by the City to the United
States Department of Housing and Urban Development, hereinafter referred to as HUD or other
grantors for funds to carry out said loan programs. The Authority also agrees that it
undertakes, hereby, the same obligations to the City that the City has undertaken to HUD or
other grantors pursuant to said applications and assurances, specifically including compliance
with OMB Circular A-I 02: "Uniform Administrative Requirements for Grants-in-Aid to State and
Local Governments". Reference is particularly made to Appendix G, relating to financial
management systems and Appendix 0, relating to procurement standards.
2. Services to be provided:
For the period commencing February 1, 1994 and expiring September 30, 1994 or until all
funds allocated or received during the year are expended, whichever comes last, the Authority
agrees to provide the following services for the City:
A. Implement and administer an Owner Occupant Interest Subsidy Loan Program:
Within the target areas specified in Provision 3, the Authority shall provide a program
for a private lending institution to make below market interest rate loans to eligible
participants. The lending institution shall supply the full loan amount and the city shall
provide a prepaid portion of the interest. The prepaid portion of interest shall be an
amount which will (1 1 not reduce the interest rate to participants to less than 5 percent
por annum, or (2) rosult in a subsldy payment of more than 7 porcontago points, Tho
maximum amount available shall be determined by the rehabilitation needs of the
property and the owner's ability to repay the loan. Eligible participants for this loan
shall be limited to those owner occupants of single family dwellings or mobile homes,
whose gross household income is less than 80 percent of the San Diego County median
income adjusted for larger or smaller household size. Such income limits shall be based
on data published or revised by HUD.
0 0 7
0. Implement and administer a Residential Rehabilitation Deferred Loan Program:
Within the target areas specified in Provision 3, the Authority shall provide a 1
to make non-interest bearing deferred loans to eligible participants unable to qualify.
the Interest Subsidy Loan Program. The principal amount of the deferred loans shall
repaid upon sale, transfer or change in the title to the property. All deferred loans I
be secured by a Trust Deed and Promissory Note for a single family dwelling or a jun
lien for a mobile home taken by the Authority on behalf of the City. All proceeds frc
the repayment of these loans will be made to the Authority and deposited into a reset
account for continued operation of the program by the Authority. The maximum IC
amount for any single deferred loan shall be $20,000 for a single family dwelling
$5,000 for a mobile home, Eligible participants shall be limited to those owr
occupants whose gross household income is less than 80 percent of the San Die
County median income adjusted for larger or smaller household size. Such incor
limits shall be based on data published or revised by HUD.
Implement and administer an Elderly/Disabled Grant Program and Weatherization Gra
Program:
(1)
C.
Within the target areas specified in Provision 3, the Authority shall provide
program to make non-repayable grants to eligible participants. The maximu
amount for this type of grant shall be $1,000, Eligible participants for this tYF
Of grant shall be limited to owner occupants of single family dwellings or mobi homes, who are elderly (62 or over) or handicapped (as defined by Soci
Security) and whose gross household income does not exceed 80 percent c
the San Diego County median income, adjusted for larger or smaller househol
size. All grants awarded shall be used on rehabilitation activities related to th
maintenance or promotion of the health and safety of the occupant:
particularly the elimination of architectural barriers to the access and use of th
dwelling unit by elderly or disabled occupants.
Within the target areas specified in Provision 3, the Authority shall providc
Weatherization Grants to eligible participants. The maximum amount for an1
single weatherization grant is $1,000. Eligible participants for this Grant shal
be limited to owner occupants of single family dwellings or mobile home:
whose gross income does not exceed 80% of the San Diego County medial
income, adjusted for larger or smaller household size.
(2)
3. Target Areas:
For the purpose of this Agreement, the term "target area" shall refer to any location within the
City limits of Carlsbad (for all utilized funds), with specific emphasis within Census Tract
179.00.
4. Contract Amount:
In consideration for services provided for by this Agreements, the City shall make available a
total of $90,000 in funding for fiscal year 1993-1994. Upon written request from the
Authority, payment shall be disbursed by the City for individual applicant contracts. The first
payment will be made no sooner than February 1, 1994.
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5. Requests for Funds:
All requests for funds made under this Agreements shall be in writing. The requests shc
include the following information on the eligible recipient of funding.
A.
B. Family income amount.
C. Family size.
D.
E.
F.
Name, address, and assessor‘s parcel number.
Type and amount of all current trust deeds on property to be rehabilitated.
Type and amount of assistance.
Description of work to be completed with requested funds.
Copy of approved environmental report on property, G.
6. mram Income:
All interest earned on CDBG funds advanced to the Authority, by the City, and all proceec
from reconveyed loans, received by the Authority during the term of this Agreement, shall I
retained by the Authority. The funds received as interest income or reconveyed loans shall I
used by the Authority to further fund eligible projects as identified in this Agreement.
The program income shall be used by the Authority to fund eligible Residential Rehabilitatic
Projects Drier to requesting additional funds for the City. Upon expiration of this Agreemer
all additional funds received by the Authority as interest income or loan reconveyances sh
be returned promptly to the City.
Upon receipt of interest earned on funds advanced to the Authority under this Agreement
proceeds from loan reconveyances, the Authority shall immediately notify the City, in writir
of the type and amount of program income for accounting purposes. In addition, the Author
shall provide the City with the name of the person repaying the loan and the year in which t
loan was originally made to the participant.
7. Administrative Costs:
The Authority shall be entitled to reimbursement for allowable costs, pursuant to Board
Supervisor’s Policy b-29 “Fees, Grants, Revenue Contracts - Department Responsibility for Cc
Recovery”, incurred during administration of the Carlsbad Residential Rehabilitation Progra
or other programs authorized and implemented for the City. Administrative costs may inclu
salaries, services, supplies and any miscellaneous expenses, which are applicable to t
program.
8. Records:
The Authority shall maintain all appropriate records for the Residential Rehabilitation Progr
and make them available for review by City or Federal staff upon request. On a quarterly ba5
the Authority shall submit a progress report to the City. The report shall include the followii
A.
E. Age of recipient.
Name and address of fund recipient.
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C. Family size.
D. Race of recipient.
E. Household income.
F. Type of funding.
G. Gender of recipient.
H. Amount of Funding.
I. Date funds requested from City,
J.
The City will provide the Authority with a Residential Rehabilitation Program Report form for us
in submitting the quarterly reports. The reports will be due on April 1 , July 1 , and October
of 1994.
The Authority shall also submit quarterly reports on administrative costs to date. TI-
administrative reports shall include information on the status of funds on hand, amount (
drawdowns from the City, loan repayments and percentage of administrative costs incurred E
compared to total program costs.
The Authority shall maintain a separate accounting for the City's Rehabilitation Program. Ti-
City, the Federal Grantor Agency, the Comptroller General of the United States, or any of the
duly authorized representatives shall have access to any books, documents, papers and recorc
of the Authority which directly pertain to the City's Rehabilitation Program for the purpose
audit, examination, excerpts and transcriptions.
Date funds released to recipient.
9. Disposition of Contract Amounts:
The City has established the following goals for the Residential Rehabilitation Program for tl
term of this Agreement:
A.
B.
C.
On behalf of the City, the Authority will attempt to complete at least two (2) single-fami
contracts for loans and/or grants and five (5) mobile home contracts for loans and/or grants 1
the date of expiration for this Agreement.
Rehabilitation of Single Family Home - 50 percent of total program funds.
Rehabilitation of Mobile homes - 30 percent of total program funds.
Administrative Costs - 20 percent of total program funds.
10. Eligibility Determination:
The Authority shall have the discretion to require such documentation as deemed necessary
determine the eligibility of applicants under the loan and grant programs outlined in tt
Agreement.
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11. Allowable Improvements:
The Authority shall approve improvements which are allowable and set forth in the guideli
contained in the Residential Rehabilitation Loan Program Operations Manual only. Priorities
rehabilitation activities shall follow those priorities established in the Authority's Resider
Rehabilitation Standards. All exceptions must be approved by the City.
12. Equal Opportunitv:
In accordance with Title VI of the Civil Rights Act of 1964; Title Vlll of the Civil Rights Ac
1968; Executive Order I 1246 as amended by Executive Order 1 1375 and 12086; and any I-
regulation heretofore issued to implement these authorities relating to Civil Rights, the Authc
will not discriminate in provisions of services or employment and will take affirmative actic
solicit minority contractors wishing to work in the program.
13. Druq-Free Workplace:
In accordance with the Drug-Free Workplace Act of 1988, the City has submitted a certificE
to HUD that a drug-free workplace will be provided for all employees. All subrecipie
including the Grantee, are also encouraged to support the omnibus drug legislation passel
Congress on November 18, 1988 by adopting and enforcing a policy to maintain a drug-
workplace.
14. Clean Air Act:
The Authority will comply with all applicable standards, orders, or requirements issued u
Section 306 of the Clean Air Act (42 USC 1857(h)).
Lead-Based Paint Poisoninq Notification Requirements:
In accordance with regulations issued at 24 CFR 51 0, 55, 570 and 590 on February 17, 1
the Authority will comply with applicable notification, testing and abatement procedure
lead-based paint. The amended regulations extend the construction date for notification
1950 to 1978.
The regulations require that applicants for rehabilitation assistance, tenants in housing t
rehabilitated and purchasers of HUD-associated housing be provided with information or
following:
A.
E.
C.
1 5.
that the property may contain lead-based paint;
of the hazards of lead-based paint;
of the symptoms and treatment of lead-based paint poisoning;
D. of the precautions to be taken to avoid lead-based paint poisoning (inclt maintenance and removal techniques for eliminating such hazards);
of the advisability and availability of blood lead level screening for children under s
years of age; and
that in the event lead-based paint is found in the property, appropriate abate
procedures may be undertaken.
E.
F.
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The "Watch Out for Lead-Based Paint Poisoning" notification containing the above informatior
shall be distributed to all appropriate recipients of funding under the subject programs. The
Authority shall retain a copy of the notification provided under this provision in their file for
three (3) years.
16. Authorization to Execute Contracts:
The Authority is hereby authorized to execute, on behalf of the City, contracts and agreement$
with property owners for interest subsidyloans, deferred loans and grants. Loans and/or grant5
in an amount which exceeds the maximum amounts noted in this agreement must be approve(
by the City prior to execution of any required contract/agreement. The Authority is also herebi
authorized to administer special accounting procedures as deemed appropriate to comply wit1
the provisions of this Agreement.
17. Hold Harmless:
The Authority agrees to defend, indemnify and hold the City harmless from any and all liabilitr
which may arise or allegedly arise from the provision of said services. Should it becomi
necessary for the City to commence suit to enforce any of the terms and conditions of thii
Agreement, or to defend any action relating to the provisions of these services, the Authorit!
agrees to pay any and all attorney's fees and court costs incurred by the City.
18. Amendments to Agreement:
The City and the Authority concur that this Agreement may be amended by the mutual conser
of both parties as deemed necessary. Exceptions to provisions of this Agreement may b
authorized by the City provided the exceptions are allowable under governing law c
regulations. The City and the Authority also agree that in the event any provision of thi
Agreement is violated by either party, the other retains the right to cancel said Agreement up0
thirty (30) days written notice.
ATTEST: m*J +
Clrr' c~ccrlc
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO,
BY Deputy Secretary
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