HomeMy WebLinkAbout2002-05-07; City Council; 16736; Home Investment Partnership ConsortiumCITY OF CARLSBAD - AGENDA BILL
LB# 16,736
CITY MGR. DEPT. HlRED
CITY Am@/ HOME INVESTMENT PARTNERSHIP CONSORTIUM TG. 5-7-02
COOPERATIVE AGREEMENT TO FORM A DEPT. H . m:
RECOMMENDED ACTION:
Adopt Resolution No. 2002-130 approving a Cooperative Agreement between the cities of
Carlsbad, Encinitas, Vista, Santee, San Marcos and La Mesa and the County of San Diego to form
a consortium for the federal Home Investment Partnership Program.
ITEM EXPLANATION:
In 1990, the National Affordable Housing Act (NAHA) was enacted into Public Law 101-625, the
primary objective of which is to continue and expand the federal commitment to affordable housing
for low and very low income Americans. One of the programs created under the NAHA was the
HOME Investment Partnership Act (HOME Program). The Program distributes grants to provide
affordable rental and homeownership housing through acquisition, rehabilitation, new construction
of housing and tenant-based rental assistance.
On June 1, 1999, the City Council approved a Cooperative Agreement with the County of San
Diego to include Carlsbad as a member of the County's consortium for the HOME Program. As a
member of this consortium, the non-HOME entitlement cities of Carlsbad, Encinitas, Vista, La
Mesa and Santee were eligible to receive HOME entitlement funds annually for the duration of the
Cooperative Agreement. The existing Cooperative Agreement for HOME Consortium will expire
on September 30, 2003. As a participant in the HOME Consortium, the City of Carlsbad will be
eligible to receive an estimated 2002-2003 HOME allocation of $250,522.
In order for the City to continue to participate in a HOME Consortium, a new Cooperative
Agreement must be executed and submitted to the US. Department of Housing and Urban
Development (HUD). The new Cooperative Agreement must be submitted to HUD by June 30,
2002 to allow adequate time for processing prior to it becoming effective for three federal fiscal
years beginning with FFY 2003. The new agreement is very similar to the existing Cooperative
Agreement with the following two exceptions: 1) The City of San Marcos is allowed to participate
as a member of the Consortium, and; 2) Member cities are allowed to receive a share of the
HOME funds available for reimbursement of administrative expenses related to the Consortium.
Participation in the San Diego County HOME Consortium is consistent with the policies of the
Housing Element of the General Plan and the Consolidated Plan to pursue other funding resources
to increase affordable housing opportunities for low and very low-income persons.
FISCAL IMPACT:
There is no fiscal impact to the General Fund from the City's participation in the San Diego County
HOME Consortium. Administration of the HOME Consortium is the responsibility of the County of
San Diego and includes such activities as contract preparation and management, receipt,
disbursement and accounting of HOME program funds, and the submission of all reports and data
as required by the U.S. Department of Housing and Urban Development. Costs associated with the
the HOME administrative fee. HOME funds shall also be used to pay for those costs associated
management and administration of the HOME program for the Consortium will be charged against
with the direct management and implementation of HOME funded projectdprograms. The new agreement will allow the City to receive approximately $6,500 in administrative funds during the
2003-2004 program year.
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Page 2 of Agenda Bill # 16! 736
The City will receive an estimated HOME allocation of $250,522 in 2002-2003 to provide low-income
households with affordable rental or homeownership opportunities through acquisition, development,
new construction, rehabilitation, or tenant based rental assistance.
EXHIBITS:
1. Resolution No. 2002-130 approving a new Cooperative Agreement to form a
2. Letter to Mayor Lewis from San Diego County Housing and Community Development
3. New Cooperative Agreement to Form a HOME Consortium.
consortium for the federal HOME Investment Partnership Program.
Director requesting execution of Cooperative Agreement to Form a HOME Consortium.
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CITY COUNCIL RESOLUTION NO. 2002-130
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A COOPERATIVE
AGREEMENT BETWEEN THE CITY OF CARLSBAD, OTHER
MEMBER CITIES,'AND THE COUNTY OF SAN DIEGO TO
FORM A CONSORTIUM FOR THE FEDERAL HOME
INVESTMENT PARTNERSHIP PROGRAM.
WHEREAS, there has been enacted into law Public Law 101-625, the National
.dable Housing Act of 1990 (NAHA), the primary objective of which is to increase the
;upply of decent affordable housing to low and very low'income Americans;
WHEREAS, NAHA authorizes contiguous units of general local government to join
.ogether in a consortium;
WHEREAS, it is the desire of the Cities and the County to form a Consortium to
mplement the objective of increasing the local supply of decent affordable housing to low and
my low income Americans; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
Salifomia. as follows:
1. The above recitations are true and correct.
2. The City Council hereby approves the Cooperative Agreement between the City of
Carlsbad, other member cities, and the County of San Diego to form a consortium
for the federal HOME Investment Partnership Program for the purpose of
increasing the local supply of decent affordable housing to low and very low
income persons.
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3. The City Manager, or his designee, is hereby authorized and instructed to enter into
a Cooperative Agreement with the County of San Diego and other members of the
Consortium for and on behalf of the City of Carlsbad and to act on behalf of the
City in all other manner of business related to the function of the Consortium.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbad,
Zalifomia, on the 7th day of ' MAY , 2002, by the following vote,
o wit:
AYES: Council Members Lewis, Nygaard, Hall
NOES: None
LORdAINk M. WOOD, City Clerk
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?age 2 of 2 of Resolution No. 2002-130
JEFFREY S. GRISSOM
Ading Director
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
3989 RUFFIN ROAD, SAN OiEGO. CALlFORNL4 92123-1890
April 17,2002
Bud Lewis
Mayor
City of Carlsbad
1200 Carlsbad Village Dr.
Carlsbad, CA 92008
TEL 8586944801
FAX 858-694-4871
TDD 8586944884
RECEIVED
APR 2 2 2002
EXTENSION OF HOME CONSORTIUM COOPERATIVE AGREEMENT
Dear Mayor:
Purpose of this letter is to apprise your City of the process for continuing participation in the San Diego
County HOME Investment Partnership Program. The U.S. Department of Housing and Urban Development
(HUD) has notified us that the current Cooperative Agreement to form a HOME Consortium expires on
September 30, 2002. A new Cooperative Agreement must be executed by all Consortium members and
submitted to HUD before June 30, 2002. That agreement will be for three federal fiscal years beginning with
FY 2003 and thus will expire on September 30,2005.
Please find enclosed a draft 2003-2005 San Diego County HOME Consortium Agreement for your review.
Each city wishing to participate must execute the agreement and provide an authorizing resolution from its
City council. In order to provide time for approval by the Board of Supervisors and submittal to HUD by the
deadline, we will need these documents by May 23,2002.
You will find that the draft includes substantially the same provisions that are included in the current (2000-
2002) HOME Cooperative Agreement. However, the draft also includes a provision for a new member, the
City of San Marcos, to join the HOME Consortium, and amended language for a new administrative fee
receiving all of the eligible HOME Administrative set-aside funds. Consortium members have asked for a agreement. This second change relates to the current practice of the County, as the Program Administrator,
small share of these funds to assist with local administrative costs. Our Department recently agreed that the
new Cooperative Agreement would provide 90% of the administrative fee set-aside to the County and 10% to
the Consortium member cities.
We look forward to receiving your executed agreement and authorizing resolution. Meanwhile, please call me
at (858) 694-4885 or Frank Landerville at (858) 694-481 8 if you have any questions or comments.
Director (Acting)
Cc: Raymond A. Patchett, City Manager
Frank Boensch, Management Analyst
Serving as the Housing Authorip of the Counp of San Diego
5
COOPERATIVE AGREEMENT TO FORM
A HOME CONSORTIUM
This Agreement entered into by and between the CITIES OF Carlsbad, Encinitas, La Mesa, Santee, San
Marcos and Vista (hereinafter referred to as “CITIES”) and the COUNTY OF SAN DIEGO (hereinafter
referred to as “COUNTY”), on 2002.
WITNESETH:
WHEREAS, there has been enacted into law Public Law 101-625, the National Affordable Housing Act
of 1990 @AHA), the primary objective of which is to increase the supply of decent affordable housing to
low- and very low-income Americans; and
WHEREAS, Title II of NAHA authorizes the HOME Investment Partnerships Act known as the HOME
Program to provide housing opportunities; and
WHEREAS, the HOME Program authorizes contiguous units of general local government to join
together in a consortium; and
WHEREAS, the County and the Cities have each prepared Consolidated Plans which were submitted to
the U.S. Department of Housing and Urban Development (HUD) in accordance with Title 24 of the Code
of Federal Regulations, Part 92; and
WHEREAS, it is the desire of the Cities and the County to form a consortium to implement the objective
of increasing the local supply of decent affordable housing to low- and very low-income Americans;
NOW THEREFORE
IT IS AGREED AS FOLLOWS:
I. COMPLIANCE WITH LAW: All members of the Consortium agree to comply with the
applicable portions of: Title 24, Subtitle A, Part 92 of the Code of Federal Regulations; Title 24, Part 574
of the Code of Federal Regulations; the Housing and Community Development Act of 1974 as amended;
Title 24, Chapter V, Part 570 of the code of Federal Regulations; Title 24, Subtitle A, Part 58 of the code
of Federal Regulations; Title VI of the Civil Rights Act of 1964; Title VIII of the Civil Rights Act of
1968; Section 109 of the Housing and Community Development Act of 1974; Section 3 of the Housing
and Urban Development Act of 1968, as amended (12 U.S.C.1701.u.); Executive Orders 11246, 11063
and 11 593; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; Title
24, Part 42 of the code of Federal Regulations; OMB Circular A-122 and Attachments A, B, C, F, H, N
and 0; OMB Circular A-133, revised June 24, 1997 Audits of States, Local Governments, and Non-profit
Organizations; the Archeological and Historical Preservation Act of 1974; the Architectural Barriers Act
of 1968; the Hatch Act (Chapter 15 of Title 5, U.S.C.); the Flood Disaster Protection Act of 1974; the
Clean Air Act (42 U.S.C. Section 1857 et seq.) and the Federal Water Pollution Control Act, as amended
(33 U.S.C. Section 1251 et seq.); the Drug-Free Workplace Act of 1988; and, San Diego County Board of
Supervisors Policy B-39a (Disabled Veterans Business Enterprise Program).
1.1 FAIR HOUSING: Each member of the consortium shall affirmatively further fair
housing.
2A. TERMINATION OF AGREEMENT: In accordance with §92.101(c) of the Code of Federal
Regulations, this Agreement cannot be terminated for a period ofthree federal fiscal years beginning with
federal fiscal year 2003 (2003-2004; 2004-ZOOS; 2005-2006). Program year for the Consortium, its
members, and the CDBG, HOME, ESG and HOPWA programs is, however, July 1 through June 30.
2B. TERM OF AGREEMENT: The qualification term of this agreement shall begin October I, 2003
and shall continue in effect until September 30, 2006.
3. PROGRAM ADMINISTRATION: The Program Administrator for this Consortium shall be the
County of San Diego.
3.1 RESPONSIBILITIES OF PROGRAM ADMINISTRATOR' The Program
Administrator shall assume overall responsibility for ensuring that the Consortium's HOME
Program is carried out in compliance with the requirements of the HOME Program, including
requirements concerning a Consolidated Plan in accordance with HUD regulations in 24 CFR
Parts 92 and 91 respectively, and the requirements of 24 CFR 92.350. The Program
Administrator shall be specifically responsible for the following:
(a) Receipt, disbursement and accounting of all HOME Program and matching funds;
(b) Submission of all reports and data as may be required by HUD.
4. CONTRACT ADMINISTRATION: The Director, San Diego County Department of Housing and
Community Development shall administer this agreement on behalf of the County. The City Manager
shall administer this agreement on behalf of each City. The Cities agree to supply to County within a
reasonable period of time after request, progress reports or other documentation as shall be required by
the County's contract administrator to audit performance ofthis agreement.
5. RECORDS AND REPORTS: The Program Administrator shall maintain records as required by
HUD. All records of the County respecting individual Projects and programs shall be open and available
for inspection by auditors assigned by HUD and/or the Cities during the normal business hours of the
County. The Cities shall maintain records and submit such reports and information as may be necessary
for the County to fulfill its obligations as administrator of the Consortium.
6. LIABILITY AND INDEMNIFICATION: Pursuant to Section 895.4 of the Government Code,
County and Cities agree that each will assume the full liability imposed upon it or any of its officers,
agents, or employees for injury caused by a negligent or wrongful act or omission occurring in the
performance of this agreement, and each party agrees to indemnify and hold harmless the other party for
any loss, cost or expense that may be imposed upon such other party by virtue of sections 895.2 and
895.6 of the Government Code.
7. NOTICE: Any notice or notices required or permitted to be given pursuant to this agreement may
be personally served on the other party by the party giving such notice or may be served by certified mail.
8. DISTRIBUTION OF FUNDS: Funds awarded to the consortium shall be distributed to consortium
members by the following formula:
A + B (C*2) = DISTRIBUTION TO CONSORTIUM MEMBERS
Where A equals the City's population, B equals the number of overcrowded households, C equals the
number of households at or below the poverty rate. All figures shall be based upon the most current
census data as provided by the San Diego Association of Governments (SANDAG).
8.1 METHOD OF DISTRIBUTION: No later than 30 calendar days from notification by
HUD that HOME Investment Partnership. funds have been awarded to the Consortium, the
Program Administrator shall cause to be issued a Notification of Funds. That notification shall
indicate the amount of funds available to each City and the County and shall grant each
jurisdiction 70 calendar days to sponsor or submit a proposal for an eligible activity. If a
proposal is not sponsored by or received from a City, that City’s share of HOME funds shall be
distributed according to paragraph 8.2 below. An activity shall be considered eligible if it
conforms to the requirements of Title 24, Part 92, Subpart E of the Code of Federal Regulations.
8.2 METHOD OF REDISTRIBUTION: All funds recaptured or unused by any member of
the Consortium shall be pooled and made available to the remaining members of the consortium
through the issuance of a second Notification. The Program Administrator may include unused
or recaptured funds from a previous fiscal year in a such notification if there is at least 12 months
remaining before the US. Department of Housing and Urban Development recapture date.
8.3 ADMINISTRATIVE FEES: Administrative expenses, if any, shall be disbursed as
described below, for each of the three fiscal years covered by this agreement.
Definitions:
1) Administrative Cap = 10% of the County of San Diego Consortium HOME
Investment Partnerships Entitlement
2) Program Administrator’s Allocation = 90% of the HOME Administrative Cap
3) Consortium Cities’ Administrative Allocation = 10% of the HOME Administrative
Cap
4) Each Consortium City’s Administrative Allocation = Total City Allocation Divided by
6
The administrative allocation for each Consortium City represents the. maximum amount of
administrative expenses that can be reimbursed to the cities in any year. The six Consortium
cities will receive equal allocations of HOME administrative funds that total up to a maximum of
1% of the HOME entitlement. Claims forms with documentation of expenses will need to be
submitted to the County for reimbursement of Consortium City’s administrative expenses
incurred. Remaining funds in each City’s administrative allocation will be returned to the
Program Administrator at the end of each fiscal year. Only staff costs associated with the
management and administration of the HOME Investment Program may be charged by each
Consortium City against HOME administrative allocations. Only costs associated with the
management and administration of the HOME Investment Program may be charged against the
Program Administrator’s share of the HOME administrative allocation.
8.4 MATCHING CONTRIBUTIONS: Each member of the consortium shall be
responsible for meeting the federal matching requirements of 92.218 and 92.220 of the Code of
Federal Regulations for each activity it sponsors or proposes. All matching funds shall be
deposited in the Local HOME Account and shall be credited to the specific activity for which the
funds were intended. Credit for excess matching funds shall be applied to the overall match
requirements of the Consortium.
c.
8.5 RECAPTURE OF FUNDS: If member of the Consortium does not sponsor or submit a
proposal for an eligible activity in accordance with Paragraph 8. I, the funds available to the
Cities shall become available to all members of the consortium or any other eligible applicant in
accordance with Paragraph 8.2. Funds not used, including positive balances remaining after an
activity is completed, by a jurisdiction shall become available to all members of the consortium
or any other eligible applicant in accordance with Paragraph 8.2.
8.6 EXCLUSION OF FUNDS: This Agreement applies only to those funds received under
the HOME Investment Partnership Program and funds received as matching contributions. This
Agreement does not apply to or control funds other than those described in this paragraph.
8.7 CONSORTIUM'S OBLIGATION TO DISTRIBUTE FUNDS: If HOME funds are
not awarded to the Consortium by the U.S. Department of Housing and Urban Development, the
Consortium's and/or the County's obligation to distribute those fundsto Consortium members
will be terminated.
9. CONSOLIDATED PLAN STRATEGY The Program Administrator shall be responsible for the
preparation and submission of Consolidated Plan (s) as required under $91.23 and §91.2I(a)(l)(i), (ii)
and (iv) of the Code of Federal Regulations.
9.1 APPROVAL OF CONSOLIDATED PLAN (S): The Consolidated Plan (s) shall not be
submitted to HUD until it (they) has (have) been approved by the elected representatives of
each member of the Consortium.
9.2 AMENDMENTS TO THE CONSOLIDATED PLAN (S): Any required amendments to
the Consolidated Plan (s) shall be made in accordance with Title 24 of the Code of Federal
Regulations, Parts 91 and 570.
IO. NEW MEMBERS: New members of the Consortium shall be allowed upon receipt of a request to
join the Consortium.
10.1 AUTHORIZING RESOLUTIONS: Each request to join the Consortium must be
accompanied by certified copies of authorizing resolutions by the governing body of the
local government.
10.2 FULL COST RECOVERY: Any and all costs associated with a new member joining
the Consortium, including any required amendments to the Consolidated Plan (s), shall
be paid by the local government wishing to join the Consortium prior to becoming a
member.
10.3 AVAILABILITY OF HOME FUNDS: HOME funds shall not be available to a new
member of the Consortium until the fiscal year in which the federal Department of
Housing and Urban Development includes that locality in its calculations for distribution
of HOME funds.
10.4 AUTHORITY TO AMEND AGREEMENT TO ADD NEW MEMBERS: The
Program Administrator is authorized to amend the consortium agreement on behalf of the
entire consortium to add new members to the consortium.
COopERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2003-2005 Pane 5 of 12
11. COOPERATION IN UNDERTAKING HOUSING ASSISTANCE UNDER HOME: Each
member of the Consortium agrees to cooperate to undertake or to assist in the undertaking of housing
assistance activities for the HOME Program
12. AUTHORITY TO JOIN CONSORTIUM: Each member of the Consortium hereby certifies that it
is authorized to enter into this Agreement. Authorizing resolutions from the governingbody of each unit
of local government joining the Consortium are incorporated into this Agreement under Attachment A
and made part of this Agreement.
13. THE CITY OF SAN MARCOS: This Cooperative Agreement shall only include the City of San
Marcos if all of the following occur: a) the City of San Marcos is advised by the U.S. Department of
2003-2005, that it is eligible to become a metropolitan city with Community Development Block Grant
Housing and Urban Development prior to the completion of the re-qualification process for fiscal years
entitlement status; and b) the City of San Marcos elects to take its entitlement status; and c) the City of
San Marcos elects to be excluded from the San Diego Urban County; and d) the City of San Marcos
elects to join the HOME Consortium.
COUNTY COUNSEL STATEMENT:
The terms and provisions of this Agreement are fully authorized under State and local law. This
Agreement provides.full legal authority for the Consortium to undertake or assist in undertaking housing
assistance activities for the HOME Investment Partnership Program.
Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2003-2005 Paze 6 of I2
R\T WITNESS WHEREOF, the parties have executed this agreement on the day and the year first
above written.
By:
Title:
County of San Diego
Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIlJM2003-2005 Pafe 7 of 12
.i
By:
Title: MAYOR
Date Mav 13. 2002
City of Carlsbad
COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2003-2005 Page 8 of I2
By:
Title:
City of Encinitas
Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2003-2005 PaKe 9 of I2
By:
Title:
City of La Mesa
Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2003-2005 Paze IO of I2
By:
Title:
City of San Marcos
Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2003-2005 Page I1 of 12
By:
Title:
City of Santee
Date
COOPERATIVE AGREEMENT TO FORMA HOUE CONSORTIUM2003-2005 Page I2 of 12
By:
Title:
City of Vista
Date