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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 k 4 z 0 F 0 a 6 8 z 3 mi Y ur LAHLSBAU - AWUA BILL ~LJY~Y 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 I 0 Page2 -AB # & I* 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 - 3 - City Council Resolution No. VCr - q 5 Housing Commission Resolution No. 94-004. Summary of Proposed Residential Rehabilitation LoadGrant Programs. < 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 a 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. ... 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 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. e 0 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. -2- e e 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. -3- 0 0 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. -4- I 8 0 1 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. -5- e m * 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 -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 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. .... .... 3 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 I.7 18 19 20 21 22 23 24 25 26 27 28 0 0 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- e 0 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. -2- 0 0 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. -3- 0 05 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. -4- 0 a 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. -5- e 0 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 -6-