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HomeMy WebLinkAbout2005-05-03; City Council; 18103; Form Home Investment Partnership ConsortiumAB# 18,103 TITLE: ITG. 5/3/05 HOME INVESTMENT PARTNERSHIP CONSORTIUM COOPERATIVE AGREEMENT TO FORM A DEPT. HIRED CITY ATTY. RECOMMENDED ACTION: Adopt Resolution No. 2005-140 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 March 7, 2002, 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 June 30, 2006. As a participant in the HOME Consortium, the City of Carlsbad will be eligible to receive an estimated 2005-2006 HOME allocation of $288,356. In order for the City to continue to participate in a HOME Consortium, a new Cooperative Agreement must be executed and submitted to the U.S. Department of Housing and Urban Development (HUD). The new Cooperative Agreement must be submitted to HUD by June 30, 2005 to allow adequate time for processing prior to it becoming effective for three federal fiscal years beginning with the 2006 fiscal year. The new agreement includes substantially the same provisions that are in the existing Cooperative Agreement. 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 management and administration of the HOME program for the Consortium will be charged against the HOME administrative fee. HOME funds shall also be used to pay for those costs associated with the direct management and implementation of HOME funded projects/programs. The new agreement will allow the City to receive approximately $7,500 in administrative funds during the 2005-2006 program year. Page 2 of Agenda Bill Cy 18,103 The City will receive an estimated HOME allocation of $288,356 in 2005-2006 to provide low-income households with affordable rental or homeownership opportunities through acquisition, development, new construction, rehabilitation, or tenant based rental assistance. 1. Resolution No. 2005-140 approving a new Cooperative Agreement to form a consortium for the federal HOME Investment Partnership Program. 2. Letter to Mayor Lewis from San Diego County Housing and Community Development Director requesting execution of Cooperative Agreement to Form a HOME Consortium. 3. New Cooperative Agreement to Form a HOME Consortium. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us a 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 CITY COUNCIL RESOLUTION NO. 2005-140 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 Affordable Housing Act of 1990 (NAHA), the primary objective of which is to increase the supply of decent affordable housing to low and very low income Americans; WHEREAS, NAHA authorizes contiguous units of general local government to join together in a consortium; 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; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. The above recitations are true and correct. 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. Ill Ill Ill Ill Ill Ill 1 3 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 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, California, on the 3rd day of May , 2005, by the following vote, to wit: AYES: Council Members Hall, Kulchin , Packard , Sigaf oose NOES: None ABSTAIN: None ABSENT: Council Member Lewis ATTEST: n MATT HALL, Mayor Pro-Tem &s).%&/L#A,&h LORRAINE M. WOOD, City Cl&k I 2 CATHERINE J. TROUT Director DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 3989 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123-1890 Tel.: (858)694-4801 Fax. (858) 6944871 TDD: (858) 694-4884 Toll-free: 1 (877) 478-5478 March 18,2005 Bud Lewis, Mayor City of Carlsbad 1200 Carlsbad Village Dr. Carlsbad, CA 92008 EXTENSION OF HOME CONSORTIUM COOPERATIVE AGREEMENT Dear Mayor Lewis: The 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 June 30, 2006. A new Cooperative Agreement must be executed by all Consortium members and submitted to HUD before June 30, 2005. That agreement will be for three federal fiscal years beginning with FY 2006 and thus will expire on June 30,2009. Please find enclosed a FY 2006-2008 San Diego County HOME Consortium Agreement for your review. You will find that this agreement includes substantially the same provisions that are included in the current (2003-2005) HOME Cooperative Agreement. 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 13,2005. We look forward to receiving your executed agreement and authorizing resolution. Meanwhile, please call me at (858) 694-8750 or David Estella at (858) 694-4802 if you have any questions or comments. Sincerely, CATHEIUNE J. TkaGT, Director Department of Housing and Community Development Cc: Raymond A. Patchett, City Manager Frank Boensch, Management Analyst Serving as the Housing Authority of the County of Sun Diego COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM This Agreement is entered into by and between the Cities of Carlsbad, Encinitas, La Mesa, San Marcos, Santee and Vista (hereinafter referred to as “Cities”) and the County of San Diego (hereinafter referred to as Tounty”), on 2005. WITNE3ETH: WHEREAS, there has been enacted into law the HOME Act, Title II of the Cranston-Gonzalez National Affordable Housing Act (the “Act”), creating the HOME Investment Partnerships Program that provides funds to expand the supply of affordable housing for very low-income and low-income persons; 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 (hereinafter referred to as the “Consortium”) to implement the objective of increasing the local supply of decent affordable housing to low- and very low-income persons. NOW THEREFORE, IT IS AGREED AS FOLLOWS: 1. COMPLIANCE WITH LAW: All members of the Consortium agree to comply with the applicable portions of: 24 CFR Parts 42, 58, 92; the Housing and Community Development Act of 1974 as amended; Title VI of the Civil Rights Act of 1964 (42 USC 0 2000d); Title VII of the Civil Rights Act of 1964 (Public Law 88-352); Title VIII of the Civil Rights Act of 1968 (Fair Housing Act, 42 USC 0 3601, et seq.); Section 109 of the Housing and Community Development Act of 1974; Executive Order 1 1246, as amended (equal employment opportunity); Executive Order 1 1063 (non-discrimination), as amended by Executive Order 12259; Section 3 of the Housing and Urban Development Act of 1974; the Uniform Relocation Assistance and Real Property Acquisition Policies Act (49 CFR Part 24); OMB Circular A-133, revised June 27, 2003, Audits of States, Local Governments, and Non-profit Organizations; National Historic Preservation Act of 1966 (Public Law 89-665); the Archaeological and Historical Preservation Act of 1974 (Public Law 93-291); the Architectural Barriers Act of 1968 (42 U.S.C. 00 4151, et seq.); Executive Order 11593; the Flood Disaster Protection Act of 1973 (42 U.S.C. 6 4106 and the implementing regulations in 44 CFR Parts 59-79); the Clean Air Act (42 U.S.C. 6 7401, et seq.); the Federal Water Pollution Control Act, as amended (33 U.S.C. 5 1251, et seq.) and the regulations adopted pursuant thereto (40 CFR Part 6); and, the Drug-Free Workplace Act of 1988 (Public Law 100-690). 1.1 housing. FAIR HOUSING: Each member of the Consortium shall affirmatively further fair 2A. TERMINATION OF AGREEMENT: In accordance with §92.101(e) of the Code of Federal Regulations, this Agreement cannot be terminated for a period of three federal fiscal years beginning with federal fiscal year 2006 (i.e., 2006-2008). No Consortium member may withdraw from this Agreement while it remains in effect. 6 COOPERATWE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Page 2 of I2 2B. TERM OF AGREEMENT: The qualification term of this agreement is the consecutive three Federal Fiscal Year period following the fiscal year in which the agreement is executed (Le., FY 2006- 2008). 2C. PROGRAM YEAR: Program year for the Consortium, its members, and the CDBG, HOME, ESG and HOPWA programs is, however, July 1 through June 30. 3. PROGRAM ADMINISTRATION: The Program Administrator for this Consortium shall be the County of San Diego. The County of San Diego shall act in a representative capacity as the lead entity for all members of the San Diego HOME Consortium for the purposes of administering the HOME Program. 3.1 RESPONSIBILITIES OF PROGRAM ADMINISTRATOR: The Program Administrator shall assume overall responsibility for ensuring that the Consortium's HOME Program is camed 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. The Program Administrator shall be specifically responsible for the following: (a) (b) Receipt, disbursement and accounting of all HOME Program and matching funds; 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 of this 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. be personally served on the other party or may be served by certified mail. NOTICE: Any notice or notices required or permitted to be given pursuant to this agreement may 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 COOPERATIVE AGREEMENT TO FORM A HOME CONSORTNM 2006-2008 Pane 3 of 12 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 (SNAG). 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. Specific HOME projects or programs shall be identified within one year of the Notification of Funds. Funds must be committed to specific HOME projects or programs no later than two years following the date of HUD’s Grant Agreement and expended within five years. If a proposal is not sponsored by or received from a City, that City’s share of HOME hds 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 hds from a previous fiscal year in a such notification if there is at least 12 months remaining before the HUD 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 COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Pane 4 of 12 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. 8.5 RECAPTURE OF FUNDS: If member of the Consortium does not sponsor, submit, identify or expend funds on a proposal for an eligible activity in accordance with Paragraph 8. 1, 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 KUD does not award HOME funds to the Consortium, the Consortium's and/or the County's obligation to distribute those funds to 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 Title 24, Part 91 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. 10. NEW MEMBERS: New members of the Consortium shall be allowed upon receipt of a request to join the Consortium. 10.1 10.2 10.3 10.4 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. 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. AVAILABILITY OF HOME FUNDS: HOME funds shall not be available to a new member of the Consortium until the fiscal year in which HUD includes that locality in its calculations for distribution of HOME bds. AUTHORITY TO AMEND AGREEMENT: The Program Administrator is authorized to amend the Consortium agreement on behalf of the entire Consortium. In addition, the COOPERATIVE AGREEMENT TO FORA4 A HOME CONSORTIUM 2006-2008 Pane 5 of 12 Program Administrator is authorized to add new members, on behalf of the entire Consortium. 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: The signatories below certify that they are authorized to sign this Agreement on behalf of the Consortium member that they represent and that each member of the Consortium hereby certifies that it is authorized to enter into this Agreement. Authorizing resolutions from the governing body of each unit of local government joining the Consortium are incorporated into this Agreement under Attachment A and made part of this Agreement. 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 FORM A HOME CONSORTIUM 2006-2008 Pane 6 of I2 IN 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 FORM A HOME CONSORTIUM 2006-2008 Pane 7 of 12 Title: City Manager City of Carlsbad Date MAY 0 4 2005 COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Pane 8 of 12 Date Title: City Manager City of Encinitas COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Pane 9 of 12 By: Art Madrid Title: Mayor City of La Mesa Attest: Mary J. Kennedy, CMC, City Clerk Approved as to form: By: Glenn Sabine Title: City Attorney Date COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Pane - IO of I2 By: Title: City Manager City of San Marcos Date COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Page I1 of 12 By: Title: City Manager City of Santee Date COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2006-2008 Pane I2 of I2 By: Title: City Manager City of Vista Date