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HomeMy WebLinkAbout2008-03-04; City Council; 19338; Cooperative Agreement to form a Home Investment Partnership ConsortiumCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 19,338 03/04/08 HRED COOPERATIVE AGREEMENT TO FORM A HOME INVESTMENT PARTNERSHIP CONSORTIUM DEPT. HEAD CITY ATTY. CITY MGR. ^ RECOMMENDED ACTION: Adopt Resolution No. 2008-058 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 May 37, 2005, 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, 2009. As a participant in the HOME Consortium, the City of Carlsbad will be eligible to receive an estimated 2008-2009 HOME allocation of approximately $261,000. 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, 2008 to allow adequate time for processing prior to it becoming effective for three federal fiscal years beginning with the 2009 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. The County is also responsible for the submission of all reports and data as required by the U.S. Department of Housing and Urban Development. FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED *D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D PAGE 2 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 $6,400 in administrative funds during the 2008-2009 program year. The City will receive an estimated HOME allocation of $261,000 in 2008-2009 to provide low-income households with affordable rental or homeownership opportunities. EXHIBITS: 1. Resolution No. 2008-058 approving a new Cooperative Agreement to form a consortium for the federal HOME Investment Partnership Program. 2. Cooperative Agreement to Form a HOME Consortium. DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us »V \ 1 CITY COUNCIL RESOLUTION NO. 2008-058 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A COOPERATIVE 3 AGREEMENT BETWEEN THE CITY OF CARLSBAD, OTHER MEMBER CITIES, AND THE COUNTY OF SAN DIEGO TO FORM A CONSORTIUM FOR THE FEDERAL 5 HOME INVESTMENT PARTNERSHIP PROGRAM. 6 WHEREAS, there has been enacted into law Public Law 101-625, the National 7 Affordable Housing Act of 1990 (NAHA), the primary objective of which is to increase the 8 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; 11 WHEREAS, it is the desire of the Cities and the County to form a Consortium to 12 implement the objective of increasing the local supply of decent affordable housing to low and 13 very low income Americans; and 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of .f Carlsbad, California, as follows:lo 17 1. The above recitations are true and correct. 18 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 19 consortium for the federal HOME Investment Partnership Program for the purpose of increasing the local supply of decent affordable housing to low and 20 very low income persons. 21 3. The Interim City Manager, City Manager or their designee, is hereby authorized 22 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 23 Carlsbad and to act on behalf of the City in all other manner of business related to the function of the Consortium. 24 /// 25 /// 26 ///27 28 /7/ 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 4th day of March, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. >, Mayor ATTEST: . qy^WOGfD) City Clerk O 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 "County"), on May 22. 2008. WITNESETH: 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, PROGRAM ACTIVITY: All members of the Consortium agree to cooperate to undertake or to assist in undertaking housing assistance activities for the HOME program. 1.1 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 § 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 § 3601, et seq.); Section 109 of the Housing and Community Development Act of 1974; Executive Order 11246, as amended (equal employment opportunity); Executive Order 11063 (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. §§ 4151, etseq.); Executive Order 11593; the Flood Disaster Protection Act of 1973 (42 U.S.C. § 4106 and the implementing regulations in 44 CFR Parts 59-79); the Clean Air Act (42 U.S.C. § 7401, et seq.); the Federal Water Pollution Control Act, as amended (33 U.S.C. § 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). 1.2 FAIR HOUSING: Each member of the Consortium shall affirmatively further fair housing. 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 COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2009-2011 Pase 2 of 12 with federal fiscal year 2009 through fiscal year 2011 (i.e. July 1, 2008 to June 30, 2011). No Consortium member may withdraw from this Agreement while it remains in effect. 2B. TERM OF AGREEMENT: The qualification term of this Agreement is for Federal Fiscal Year 2009 through Federal Fiscal Year 2011 (i.e. July 1, 2008 to June 30, 2011). 2C. PROGRAM YEAR: Program year for the Consortium, its members, and the CDBG, HOME, ESG and HOPWA programs is 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 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. 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 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 Program 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 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 COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2009-2011 Fuse 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 (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. 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 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 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 Cities will receive equal allocations of HOME administrative funds that total up to a maximum of 1% of the HOME entitlement. Claim 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 Program may be charged by each Consortium City against HOME administrative allocations. Only costs associated with the management and administration of the HOME 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 FORMA HOME CONSORTIUM2009-2011 Paxe 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 a 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 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 HUD 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 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 HUD includes that locality in its calculations for distribution of HOME funds. 10.4 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 FORM A HOME CONSORTIUM 2009-2011 _ Page 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 Program. HWITT, Senior Deputy Date COOPERA TIVE AGREEMENT TO FORMA HOME CONSORTIUM 2009-2011 Page 6 of 12 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and the year first above written. COUNTY: BY: CATHERINE TROUT LIGHTERMAN, Director Department of Housing & Community Development Date: COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2009-2011 Pase 7 of 12 CITY OF CARLSBAD: LISA HILDABRAND, Interim City Manager Date: COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM2009-2011 Page 8 of 12 CITY OF ENCINITAS: BY: P.E. COTTON, City Manager Date: 3 - Approved as to f< BY:_ GLENN SABINE, City Attorney Date: COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2009-2011 Paee9ofl3 CITY OF LA MESA: BY:_ ART MADRID, Mayor Date- O A v- I /"> ^J-*cUC. »<_ / i_ K / fr * COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2009-2011 Page 10 of 12 CITY OF SAN MARCOS: BY:_ PAUL MALONE^tyWanager Date: ____ ' {/ COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2009-2011 CITY OF SANTEE: BY: KEITH f ILL, £ity Manager Date: 5/7/08 COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2009-20 11 Pase 12 of 12 CITY OF VISTA: BY:_ RITA L. GEpERT, City Manager Date: CfflLSHD HSG/REDEU. '08 JUN 09 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT £ Director 3989 RUFFIN ROAD, SAN DIEGO, CALIFORNIA 92123-1890 T ™"* (!5,!l!?1!?a8!i,aioii-rree. i ^ov rj *\i0-04/0 June 6, 2008 Attention: Frank Boensch City of Carlsbad 2965 Roosevelt Street, Suite B Carlsbad, California 92008 SAN DIEGO COUNTY HOME CONSORTIUM AND COOPERATIVE AGREEMENT 2009-2011 Enclosed is a copy for your files of the executed 2009-2011 Cooperative Agreement for the County of San Diego HOME Consortium. The County of San Diego HOME Consortium's is re- certifying as a Consortium in the HOME program for 2009-2010, 2010-2011, and 2011-2012. Our existing three-year HOME Cooperative Agreement (2006-2007, 2007-2008, 2008-2009) is due to expire June 30,2009. If you have any questions, feel free to contact me at Jaclvn.Borillo@sdcountv.ca.gov or (858) 694-4805. Sincerely, JACLYN BORILLO, Housing Program Analyst I Department of Housing and Community Development Serving as the Housing Authority of the County of San Diego