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HomeMy WebLinkAbout1999-08-10; City Council; 15347; Rancho Carlsbad Mobilehome Parkta > 0 % % . . g 2 A Y z E. . - CITY OF CARLSBAD -AGENDA BILL AB# s. TITLE: REQUEST FOR ADDITIONAL FINANCIAL DEPT. I-ID. MTG. 4-10 -5 ‘i ASSISTANCE FOR LOW INCOME HOUSEHOLDS TO PURCHASE INDIVIDUAL SPACES IN THE RANCH0 “TYArrY’ DEPT. H/RED CARLSBAD MOBILEHOME PARK CITY MGR. RECOMMENDED ACTION: That the City Council ADOPT Resolution No.49 - 2-83 APPROVING the expenditure of an amount not to exceed $404,592 from the Housing Trust Fund to’assist lower income households to purchase individual spaces within the Ranch0 Carlsbad Mobilehome Park. ITEM EXPLANATION: The City Council has taken several previous actions regarding financial assistance for the Ranch0 Carlsbad Mobilehome Park (Park). Under the original proposal, the City Council approved $200,000 to assist a total of 38 low income households to purchase their individual spaces in the Park. The balance of the funding for the low income households was to come from the State of California’s Mobilehome Park Resident Ownership Program (MPROP) and from private first mortgages. When the Park received less MPROP assistance than was requested ($532,000), the Carlsbad Resident Association, the Park’s representative, requested additional financial assistance from the City. In August of 1997, the City Council approved an additional $246,408 for this project, bringing total City assistance to $446,408. For a variety of reasons, the number of low income households seeking City/State financial assistance to purchase their individual spaces has been reduced to 28. Although the number of households seeking to purchase their spaces with assistance from the City has been reduced, the amount of City and State financial assistance remains inadequate to fund all 28 loans. At this time, the funding shortfall is due primarily to a decrease in resident incomes and the inability to acquire the amount of private mortgages previously estimated by the park representatives. Due to the shortfall in funding, a priority system had to be established for the City and State financial assistance. First priority was given to those applicants who had completed the necessary loan documentation and had received a formal loan commitment from a private lender. This criteria was established to fund the maximum number of loans possible with the available funding. Using this strategy, 16 loans were funded in May of this year. On July 29, 1999, three additional loans were funded. The funding of the 19 loans effectively exhausted the City and State funds. The nine (9) remaining applicants are unable to acquire private loans and therefore require 100% financing from the City and State to purchase their spaces. The Carlsbad Resident Association is currently requesting that the City provide an additional $404,592 to fund the remaining nine (9) loans. The Association has also requested $383,000 in additional MPROP funding from the State. The State is expected to act on the request at their meeting scheduled for the last week of August, 1999. In discussions with State staff members, the Ranch0 Carlsbad application will likely be the only application to be reviewed at the August meeting. Therefore, State staff anticipates that the full amount of the MPROP request will be funded. If the Council approves this request, it is staffs recommendation that the City’s assistance be contingent upon the Association receiving the requested State funding. \ Page 2 of Agenda Bill No. l5,3 q 7 As with the previous financial assistance from the State, the use of MPROP funds will impose certain duties and responsibilities on the City. These duties and responsibilities included requiring the City to perform the loan origination and underwriting of all State and City loans. To handle this responsibility, the City has retained the County of San Diego Department of Housing and Community Development to perform this function. Also, the City is responsible to monitor the Park’s compliance with the terms and conditions of the MPROP regulations. FISCAL IMPACT: The approval of this item will increase the total amount of City assistance to the Ranch0 Carlsbad Mobilehome Park to $851,000. As with the previous assistance to this project, it is staffs recommendation that the funding be provided from the Housing Trust Fund. The Housing Trust Fund currently has an undesignated fund balance of approximately $1,200,000. This is the balance remaining following appropriation of funding for the recent affordable housing acquisition. Staff anticipated this request and maintained an adequate balance within the Housing Trust Fund to accommodate it. The following chart summarizes the financing actions taken to date and proposed herein: * Application was for $1 million, received $532,000 from the State. EXHIBITS: 1. City Council Resolution No. 44 c a&3 , approving the request for financial assistance for the Ranch0 Carlsbad Mobilehome Park. 2. Carlsbad Resident Association Request for additional financial assistance. : I . L c . f 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. gg- 283 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE EXPENDITURE OF AN AMOUNT NOT TO EXCEED $404,592 FROM THE HOUSING TRUST FUND TO ASSIST LOWER INCOME HOUSEHOLDS TO PURCHASE INDIVIDUAL SPACES WITHIN THE RANCH0 CARLSBAD MOBILEHOME WHEREAS, the Carlsbad Residents Association previously applied to the California Department of Housing and Community Development for Mobilehome Park Resident Ownership Program (MPROP) funding; and WHEREAS, the Carlsbad Residents Association received approximately $532,000 in MPROP funding; and WHEREAS, on August 5, 1997, the City of Carlsbad City Council approved a request from the Carlsbad Residents Association for financial assistance in a maximum amount up to $446,408 from the City of Carlsbad Housing Trust Fund for the purpose of assisting lower income households to purchase individual mobilehome sites located within the Ranch0 Carlsbad Mobilehome Park, and WHEREAS, the amount of State and City funding previously received by the Carlsbad Residents Association is not adequate to fund all eligible low income households seeking financial assistance; and WHEREAS, the Carlsbad Residents Association has requested additional financial assistance in an amount not to exceed $404,592 from the City of Carlsbad to assist an additional nine low income households to purchase their individual mobilehome sites located within the Ranch0 Carlsbad Mobilehome Park; and WHEREAS, the Carlsbad Residents Association has indicated that it will also request additional MPROP funding in the amount of $383,000 to assist said additional nine low income households to purchase their individual mobilehome sites located within the Ranch0 Carlsbad Mobilehome Park; and 1 : 1 ! f i E s IC 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the City Council held a public meeting to consider the Carlsbad Residents Association’s request for additional financial assistance to assist an additional nine low income households to purchase their individual mobilehome sites located within the Ranch0 Carlsbad Mobilehome Park; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons designing to be heard, said Council considered all factors relating to the request for additional financial assistance: NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. 3. 4. 5. The above recitations are true and correct. The request for City financial assistance is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, the Consolidated Plan, and the Carlsbad General Plan. That based on the information provided within the City Council Staff Report, the testimony presented during the public meeting of the City Council, and the Conditions of Approval contained herein, the City Council hereby AUTHORIZES the Finance Director to appropriate an additional $404,592 from the City of Carlsbad’s Housing Trust Fund for the purpose of providing non-interest bearing deferred second trust deed loans in a total additional amount not to exceed $404,592 to Residents within the Ranch0 Carlsbad Mobilehome Park to assist additional lower income households in the acquisition of individual mobilehome spaces located within the Ranch0 Carlsbad Mobilehome Park. The City Council hereby AUTHORIZES the City Manager or his designee to execute such documents, or take other actions as may be necessary or appropriate to allow the City and the Carlsbad Residents Association to receive MPROP funding and to assist additional lower income households in the acquisition of individual mobilehome spaces located within the Ranch0 Carlsbad Mobilehome Park. The City Council hereby AUTHOFUZES the City Manager or his or her designee to execute all documents related to provision of the City assistance, including but not limited to a Loan Agreement, Note, Deed of Trust and Regulatory Agreement, subject to review and approval by the City Attorney. General Conditions: 1. Financial assistance in an additional amount not to exceed $404,592 from the City of Carlsbad Housing Trust Fund will be made available to provide non-interest bearing deferred second trust loans to additional low income households purchasing spaces within the Ranch0 Carlsbad Mobilehome Park. The maximum loan amount per 32 RESO. NO. PAGE 2 3 : ! . 1 c . E I E 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - individual borrower will be determined by the need of the individual borrower based upon the ability to secure funding from the MPROP funds and private conventional financing. The City loan will be secured by a Deed of Trust and Promissory Note for the property on behalf of the City of Carlsbad. 2. Repayment of any and all of the loan principal will be required upon the date of sale, transfer or refinance of the property. 3. City financial assistance shall be contingent upon the Carlsbad Residents Association first receiving MPROP financial assistance from the State of California. If the Carlsbad Residents Association does not receive MPROP funding, the City’s commitment to provide additional financial assistance shall become null and void. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 10th day of August 1999, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Finnila, Hall & Kulchin NOES: None ABSENT: None ABSTAIN: None ATTEST: (SEAL) CC RESO. NO. PAGE3 4 I - - , . - /-- .- i / L /I \ ___-- -‘-.. \\, ‘x, ‘\ ii/ /” \ /-A \ ‘., \ ‘, / t l ‘/ : v ta “’ ;/ \ \J’ 5200 EL CAMINO REAL 1 CARLSSAD, CA 92008.3699 July 20, 1998 Via Facsimile Bz U.S. Mail J760-720-20371 Craig Ruiz Department of Housing & Redevelopment City of Carlsbad 2965 Roosevelt, Suite B Carlsbad, CA 92008 Re: Request for Additional Funds from the Redevelopment Agency To Enable the Very, Very Low Income Residents to Purchase Dear Mr. Ruiz: First, we, on the Board of Directors, for the Ranch0 Carlsbad Owners Association, Inc., want to thank you and your staff for all the work you have done to assure the ability of the low income residents in Ranch0 Carlsbad the financial ability to remain within our community through your loan program. At this time, all low-income households have been, or will be, funded through your program in conjunction with the Mobilehome Park Resident Ownership Program (“MPROP”). However, we have nine (9) households, which are very, very low income and are therefore, unable to qualify for any conventional financing whatsoever. The purpose of this correspondence is to request Four Hundred, Four Thousand, Five Hundred Ninety-two Dollars ($404592.00) to assist the nine (9) very, very low-income households. A companion request has been made to the State of California, Mobilehome Park Residents’ Ownership Program (“MPROP”). The combination of these two loan programs will provide the ability of these households to remain in the Park. Without this assistance and even with the Tenant impact Report rent increase ’ protection, these households will be unable to remain in Ranch0 Carlsbad. On behalf of these nine (9) households, we request your assistance to preserve their homes. Thank you for considering our request. Sincerely, RANCH0 CARLSBAD OWNERS’ ASSOCIATION, INC. ADMINISTRATION PHONE’ (760)438-0333 FAX. (760)436-1608 5