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HomeMy WebLinkAbout2008-04-22; City Council; 19415; Implementing a grant program for householdsCITY OF CARLSBAD AND HOUSING AND REDEVELOPMENT COMMISSION AGENDA BILL 11 AB# 19,415 MTG. 4/22/08 DEPT. HRED APPROPRIATION OF FUNDING FOR A DOWN PAYMENT AND CLOSING COST LOAN AND/OR MINOR HOME REPAIR GRANT PROGRAM DEPT. HEAD /M CITYATTY. ^§3 CITY MGR. . & fr RECOMMENDED ACTION: ADOPT Council Resolution No.2008-121 APPROVING appropriation of federal HOME Investment Partnership and Housing Trust funds to implement a Down Payment and Closing Cost Loan and/or Minor Home Repair Grant Program for lower income households. 450 _APPROVING appropriation of Redevelopment LowADOPT Commission Resolution No. and Moderate Income Housing Set-Aside Funds to implement a Down Payment and Closing Cost Loan and/or Minor Home Repair Grant Program for lower and/or moderate income households. ITEM EXPLANATION: As a member of the San Diego County HOME Investment Partnerships (HOME) Consortium, the City is eligible to receive federal funds to create affordable housing opportunities through the County of San Diego, which is the lead agency for the Consortium. The City Council has approved an allocation of up to $836,020 in HOME funds for a Down Payment and Closing Cost Assistance (DPCCA) Program for low income households. At the time of allocation of the HOME funds, staff indicated that a more detailed program description and a request for appropriation of the program funding would be presented at a later date for Council approval. In addition to the HOME funds, staff is recommending that Housing Trust Funds and Redevelopment Low and Moderate Income Housing Set-Aside Funds be appropriated as well to expand this program for both lower income and moderate income households. The HOME and Housing Trust funds may be used for low income households only. The Redevelopment Housing Set-Aside Funds may be used for affordable housing programs for both low and moderate income households. The HOME funds will be used for DPCCA only. The Housing Trust Funds will be used for both the DPCCA and Minor Home Repair Grant (MHRG) Program but for lower income households only. The Redevelopment Housing Set-Aside funds will be used to finance the DPCCA as well as the MHRG program. However, it can be used to provide assistance to both lower and moderate income households both inside and outside the redevelopment areas. Staff is recommending an appropriation of $500,000 from the Redevelopment Housing Set-Aside fund and $163,980 from the Housing Trust Fund. The total appropriation from the three noted funds will be $ 1,500,000 for the subject programs. Program descriptions are attached for review. The attached resolutions authorize the appropriation of funds as noted above. DEPARTMENT CONTACT: Debbie Fountain, (760) 434-2815, dfoun@ci.carlsbad.ca.us 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 PROGRAM SUMMARY The DPCCA program will provide zero interest "silent second" loans that must be repaid when the residential unit is sold. There will be no monthly payments. The DPCCA may be used to purchase attached or detached residential product within the city limits of the City of Carlsbad. The home must represent the buyer's primary place of residence. The residential unit may not be used as income property. The buyer will not be permitted to rent the unit or any rooms within the unit to another party. For low income households (80% or below the Area Median Income), the loan through the DPCCA program shall be based on need but not exceed $20,000. For moderate income households (81% to 120% of Area Median Income), the loan through the DPCCA shall be up to 5% of the fair market value of the unit, with the maximum loan amount set at $40,000. Buyers with a gross household income equal to or less than 120% will be eligible to participate in the DPCCA program. The funding source utilized to make the loan will depend on the income level of the household. To qualify for a loan under this program, the buyers must meet the stated income requirements and be able to qualify for a conventional mortgage to finance the remainder of the home purchase. In addition, final monthly housing costs for the buyer shall not exceed 30% of the gross monthly household income. Verification of the affordable housing payments/cost shall be required. Additional criteria and restrictions are outlined in the attached program description. The MHRG program will provide grant funds not to exceed $5,000 maximum per owner-occupied housing unit for minor home repairs, home accessibility and/or exterior clean-up. The goals of this program are to: 1) maintain safe homes and attractive neighborhoods, 2) preserve and improve the quality of the housing stock, 3) assist seniors to age in-place or the disabled to remain in their home, and/or 4) to enhance security of the home. The funding source will vary depending on income level of the household and type of project. To qualify for a grant under this program, the homeowner must meet the income requirements, provide a scope of work prepared by a licensed contractor, and ensure that all repairs are made in compliance with current building and/or fire codes. The residential unit to be rehabilitated or improved must be owner-occupied and must be located within the city limits of the City of Carlsbad. The grant funds must be used to make minor repairs to conditions threatening the health and safety of the occupants, or to make the home accessible to disabled or elderly people. The funds may be used for clean-up and/or debris removal and painting of the exterior of the home on a case-by-case basis. There shall be only one grant of funds allowed per property every 5 years. The Housing and Redevelopment Department will be responsible for administration of the program, and, if the attached resolutions are approved, the Housing and Redevelopment Director will be authorized to approve and disburse the loans and/or grants. FISCAL IMPACT The City Council previously allocated up to $836,020 in HOME funds to assist buyers of affordable housing in Carlsbad with a DPCCA Program. This action will appropriate the funding for this program. The County of San Diego HOME Consortium will reimburse the City for up to $836,020 in Housing Trust Funds used on the DPCCA Program. Funding for the DPCCA and MHRG Programs will also be provided with an appropriation of $163,980 from the Housing Trust Fund and $500,000 from the Redevelopment Housing Set-Aside Fund, which have current unreserved fund balances of approximately $10.6 million and $3.9 million respectively. It is important to note that both the City Council and the Housing and Redevelopment Commission must approve the findings of benefits to expend the Redevelopment Housing Set-Aside Funds outside the Village and South Carlsbad Coastal Redevelopment Areas. It is anticipated at this time that contractor services will be employed to assist with implementation of 2, Page3 this program. The costs for the contractor services will be included in the program costs and be paid from the above noted appropriations. No additional funding will be required for the contractor services. ENVIRONMENTAL REVIEW The DPCCA Program is a home purchase loan program and not a project under CEQA because it will not cause, or create a project that will cause, a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Per the California Environmental Quality Act (CEQA), the MHRG program is categorically exempt from CEQA and a determination has been made that it will not have a significant effect on the environment. The MHRG program is exempt per 15301 (a) (Existing Facilities) of CEQA. EXHIBIT 1 .City Council Resolution No. 2008-121 , approving an appropriation of federal HOME Investment Partnership ($836,020) and Housing Trust ($163,980) funds to implement a Down Payment and Closing Cost and/or Minor Home Repair Grant Program for low and/or moderate income households. 2. Housing and Redevelopment Commission Resolution No. 450 approving an appropriation of Redevelopment Housing Set-Aside Funds ($500,000) to implement a Down Payment and Closing Cost and/or Minor Home Repair Grant Program for low and/or moderate income households. 3. Down Payment and Closing Cost Assistance Program Description 4. Minor Home Repair Grant Program Description CITY COUNCIL RESOLUTION NO. 2008-121 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN 3 APPROPRIATION OF FEDERAL HOME INVESTMENT PARTNERSHIP FUNDS AND HOUSING TRUST FUNDS FOR A DOWN PAYMENT AND CLOSING COSTS ASSISTANCE 5 LOAN PROGRAM AND/OR MINOR HOME REPAIR GRANT PROGRAM. 6 WHEREAS, a Consortium of local governments in San Diego County have formed to 7 obtain HOME Investment Partnership Program (HOME) funds; and 8 WHEREAS, it is the desire of the City of Carlsbad to appropriate HOME funds for a Down Payment and Closing Costs Assistance Program to benefit lower income households; and jj WHEREAS, the Carlsbad Housing Trust Fund was established pursuant to Chapter 12 21.85.110 of the Carlsbad Municipal Code to collect fees and other funds paid in compliance 13 with the City's Inclusionary Housing Ordinance, Chapter 21.85 of the Carlsbad Municipal 14 Code; and WHEREAS, it is the desire of the City of Carlsbad to appropriate Housing Trust Funds for a Down Payment and Closing Costs Assistance Program and/or a Minor Home Repair 17 Grant Program to benefit lower income households; and 18 WHEREAS, it is the desire of the Carlsbad Redevelopment Agency to also provide 19 funding for said Down Payment and Closing Cost Assistance Loan and/or Minor Home Repair 20 Grant Program for low and/or moderate income households and to appropriate Redevelopment Agency Housing Set-Aside funds for said program which shall be authorized by separate 23 resolution of the Housing and Redevelopment Commission. 24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 25 Carlsbad, California, as follows: 26 l. The above recitations are true and correct. 27 in 28 /7/ 1 The City Council appropriates $836,020 in HOME funds to implement a Down 2 Payment and Closing Cost Assistance Program to provide up to $20,000 in the form of a zero-interest "silent second" loan for lower income households purchasing an affordable attached or detached residential unit within the City limits of the City of Carlsbad. 5 3. The City Council appropriates $163,980 in Housing Trust funds to assist in the financing for the Down Payment and Closing Cost Assistance Program noted above, 6 and to provide grant funds in the form of a zero-interest forgiven loan (after five years) to implement a Minor Home Repair Program for existing lower income 7 homeowners and their respective homes within the City of Carlsbad. 4. That the expenditure of monies from the Low and Moderate Income Housing Fund, which shall be approved by the Housing and Redevelopment Commission by separate resolution, for the purposes of providing additional funding for said program are and will be of benefit to the Village and South Carlsbad Coastal Redevelopment Project Areas and the general community of Carlsbad based on the following findings: 11 a. The Village Redevelopment Area currently consists of a number of restaurants, 12 hotels, time-share projects and small retail operations which depend on and offer employment at low to moderate income wages. Improving housing for low/moderate income households and/or assisting low/moderate income households to purchase affordable housing throughout the community is beneficial to maintaining and/or increasing the labor supply and/or supporting the existing employees working within the Village Redevelopment Area. 16 b. The South Carlsbad Coastal Redevelopment Area is proposed to have several new restaurants, hotels, time-share projects and small retail operations which 17 will also depend on and offer employment at low to moderate income wages. The proposed program will assist in improving existing housing stock for 18 low/moderate income households and/or assisting existing low/moderate income wage earners to purchase affordable housing. This program will ultimately benefit the project area by providing an employee pool which is located in close proximity to the project area. 21 5. The Finance Director is hereby authorized to appropriate said funds for said programs, and the Housing and Redevelopment Director is authorized to administer 22 said programs on behalf of the City of Carlsbad, including approval and disbursement of said loans and/or grants and execution of all related program 23 documents. 24 /// 25 /// 26 /// 27 28 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 Joint Special Meeting of the City Council and Housing and Redevelopment Commission of the City of Carlsbad on the 22nd day of April, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. ATTEST: Clerk , ,*;»>,.> r y.-- ...<•••>.*» '. 1 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 450 2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION 3 OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN APPROPRIATION OF REDEVELOPMENT HOUSING SET-ASIDE FUNDS FOR A DOWN PAYMENT AND CLOSING COSTS ASSISTANCE LOAN 5 PROGRAM AND/OR MINOR HOME REPAIR GRANT PROGRAM FOR LOW AND/OR MODERATE INCOME HOUSEHOLDS WHO ARE PURCHASING 6 AND/OR OWN HOMES WITHIN THE CITY OF CARLSBAD, BOTH INSIDE AND OUTSIDE THE VILLAGE OR SOUTH CARLSBAD COASTAL 7 REDEVELOPMENT AREAS. 8 WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to 9 as "Agency", is a Community Redevelopment Agency organized and existing under the Community Redevelopment Law, Health and Safety Code Section 33000, etc.seq,, hereinafter referred to as the "Act", and desires to assist in the financing of a Down Payment and Closing 12 Costs Assistance Program and/or Minor Home Repair Grant Program for low and/moderate 13 income owner households both inside and outside the Village or South Carlsbad Coastal 14 Redevelopment Areas; and 15 WHEREAS, the Agency is authorized to implement the Redevelopment Plan for the16 Carlsbad Village and South Carlsbad Coastal Redevelopment Project Areas; and 18 WHEREAS, Section 33334.2 of the Act requires that not less than twenty percent (20%) 19 of all taxes which are allocated to the Agency for purposes of increasing and improving the 20 community's supply of low and moderate income housing; and 21 WHEREAS, pursuant to Section 33334.2 of the Act, the Legislature declares its intent 77 that the Low and Moderate Income Housing Set-Aside Fund shall be used to improve and 23 increase the supply of affordable housing within the community; and 24 WHEREAS, to carry out the purposes of increasing and improving the community's 25 supply of low and moderate income housing, Section 33334.2(e) of the Act states that the Agency 26 may exercise any or all of its powers, including without limitations, acquiring land or building 27 sites, improving land or building sites with onsite or offsite improvements, donating land to 1 2 3 income households, or persons or families of low and moderate income, or other powers to carry 4 out the purposes of the Act; and WHEREAS, pursuant to Section 33334.2(g) (1) of the Act, the Agency may use said funds outside the project area(s) upon a resolution of the Agency and the Legislative body that the use will be of benefit to the project area(s); and WHEREAS, it is the desire of the Agency to establish a Down Payment and Closing Cost Assistance Loan and/or Minor Home Repair Grant Program for low and/or moderate10 11 12 13 14 18 19 20 23 24 25 26 27 private or public persons or entities, constructing buildings or structures, acquiring buildings or structures, providing subsidies to, or for the benefit of, very low income households, lower income households and to appropriate Redevelopment Agency Housing Set-Aside funds for said program. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The Housing and Redevelopment Commission appropriates $500,000 in 17 Redevelopment Housing Set-Aside funds to implement a Down Payment and Closing Cost Assistance Program to provide up to $20,000 for lower income households and 5% of the fair market value of a home purchase, or $40,000 maximum for moderate income households in the form of a zero-interest "silent second" loan to purchase an affordable attached or detached residential unit within the City limits of the City of Carlsbad, and to fund a Minor Home Repair Grant Program for Low and Moderate Income Households in the form of zero-interest, forgivable loan. 3. That the expenditure of monies from the Low and Moderate Income Housing Fund for the purposes of funding said program are and will be of benefit to the respective Project Area(s) based on the following findings: a. The Village Redevelopment Area currently consists of a number of restaurants, hotels, time-share projects and small retail operations which depend on and offer employment at low to moderate income wages. Improving housing for low/moderate income households and/or assisting low/moderate income households to purchase affordable housing throughout the community is beneficial to maintaining and/or increasing the labor supply and/or supporting the existing employees working within the Village Redevelopment Area. 28 8 1 /// 2 b. The South Carlsbad Coastal Redevelopment Area is proposed to have several new restaurants, hotels, time-share projects and small retail operations which will also depend on and offer employment at low to moderate income wages. The proposed program will assist in improving existing housing stock for 5 low/moderate income households and/or assisting existing low/moderate income wage earners to purchase affordable housing. This program will 6 ultimately benefit the project area by providing an employee pool which is located in close proximity to the project area. 7 4. That the Low and Moderate Income Housing Set-Aside Funds will promote the City of 8 Carlsbad's housing goals and satisfies specific requirements of the Community Redevelopment Law to expend a portion of its tax increment to produce and/or improve affordable housing for low and moderate income persons. ' That the expenditure of the subject Low and Moderate Income Housing Set-Aside Funds to assist the City of Carlsbad and Carlsbad Redevelopment Agency in providing financial assistance for the subject programs is consistent with the Village 12 Redevelopment Area Low and Moderate Income Housing Set-Aside Spending Strategy/Plan. 13 6. The Finance Director is hereby authorized to appropriate said funds for said 4 programs, and the Housing and Redevelopment Director is authorized to administer said programs on behalf of the City of Carlsbad and Carlsbad Redevelopment Agency, including approval and disbursement of said loans and/or grants and execution of all related program documents. 17 /// 18 /// 19 /// 20 /// 21 /// 22 23 24 25 26 27 "' 28 '" 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 Joint Special Meeting of the Carlsbad Housing and Redevelopment Commission and Carlsbad City Council held on the 22nd day of April, 2008, by the following vote: AYES: Commission Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. TJSA HILDABRAND, (SEAL) ~pf ESTABLISHED \%r. Ilk W0 Jjl EXHIBIT 3 CITY OF CARLSBAD & CARLSBAD REDEVELOPMENT AGENCY DOWN PAYMENT AND CL0SINd COST ASSISTANCE PROGRAM The City of Carlsbad and Carlsbad Redevelopment Agency provides down payment and closing cost financial assistance to low and moderate income homebuyers purchasing a home in Carlsbad. This down payment and closing cost assistance is in the form of a zero-interest "silent second" loan that must be repaid together with contingent interest (appreciation share) when the residential unit is sold or there is a transfer of ownership. There are no monthly payments on the loan. The funds may be used to purchase an attached or detached residential product within the City limits of Carlsbad. The home must represent the buyer's primary residence. The buyer will not be permitted to rent the unit or any rooms within the unit to another party. This assistance is available under the following terms: Maximum Loan Amount: For low income households (80% or below the San Diego Area Median Income, adjusted for household size), the loan shall be based on need but not to exceed $20,000. For moderate income households (81% to 120% of the San Diego Area Median Income, adjusted for household size), the loan shall be up to 5% of the fair market value of the unit, with the maximum loan amount set at $40,000. The funding source for the loan shall be dependent upon the income level of the household. Deferred Payment: The loan requires no monthly payments (principal or interest) as long as the buyer lives in the home as a primary residence and is not in default on any other loans recorded against the property. The loan and contingent interest are not due until the property is sold or ownership is transferred. Interest or Shared Appreciation: At sale or ownership transfer, the borrower repays the principal plus contingent interest (or a share of appreciation). The City/Agency will share in the appreciation gained on the value of the property in direct proportion to the dollars loaned at the time of purchase. For example, if the City or Agency provided 30% of the original purchase price through the assistance and/or other public subsidies, it would receive 30% of the net appreciation (less the value of eligible capital improvements) upon the sale of the property. Other Terms: The loan is secured by a promissory note, a recorded subordinate deed of trust and a recorded regulatory agreement. The City/Agency's loan may be prepaid in full at any time without penalty. The first mortgage used with this program may not have balloon payments, negative amortization, principal increases, or deferred interest, and may not be an option adjustable rate loan. Eligible Units Any single-family or multi-family ownership unit in Carlsbad is eligible, including detached homes, townhouses, condominiums, live/work units, limited equity cooperative units, and co- housing. EXHIBIT 3 Eligible Borrowers Applicants must be low- to moderate-income households based on the total household's current gross income (less than 120% of the San Diego Area Median Income, adjusted for household size). The gross income of all household members 18 years of age or older are included when determining income eligibility. Documentation is required to verify the gross household income of all members of the household which are 18 years of age or older. The borrower must occupy the home purchased through the program as his/her primary residence (which means that the borrower must reside within the home at least 10 months of the year). The borrower shall be required to submit an annual certification and proof of occupation of said home. Borrowers must meet the credit requirements and underwriting standards of the lender providing the first mortgage on the property. Borrowers must also have adequate funds to provide any remaining down payment and/or closing costs to purchase the unit. Total Housing Costs for the Borrower(s) shall not exceed 30% of the gross monthly household income. Verification of the affordable housing payments/cost shall be required Application Process The Program Administrator will complete an initial screening of all potential applicants to confirm: 1. The applicant is purchasing an eligible home within the City of Carlsbad. 2. The applicant intends to reside within the home as a primary residence. 3. Initial information indicates that the applicant qualifies for the assistance. After initial eligibility has been determined, the Program Administrator will provide the applicant with the necessary packet of information to submit to the primary lender and escrow officer to provide instructions on the assistance and to verify income eligibility. A credit report, title report and property appraisal shall be required as part of the verification documentation. The loan will be secured by a promissory note, a recorded subordinate deed of trust and regulatory agreement. Program Administration The Carlsbad Housing and Redevelopment Department shall be the program administrator. The Housing and Redevelopment Director is authorized to administer the program on behalf of the Carlsbad Redevelopment Agency and City of Carlsbad, and may set forth additional policies and procedures as determined to be appropriate to maintain the integrity of the program and provide for its intended implementation. 12- EXHIBIT 4 CITY OF CARLSBAD AND CARLSBAD REDEVELOPMENT AGENCY MINOR HOME REPAIR GRANT PROGRAM The Minor Home Repair Program provides a grant in the form of a 0% interest, deferred loan which is forgiven by 20% per year for each year up to 5 years that the home remains under the original grant ownership. If the home is sold (or there is a transfer of ownership) prior to expiration of the 5 year term, the portion of the loan which has not yet been forgiven must be repaid at the time the home is sold or there is a change in ownership. These grants are available to lower and moderate income households who own and occupy their home as their primary residence, and which is located within the jurisdictional boundaries of the City of Carlsbad, California. The program goals are to 1) maintain safe homes and attractive neighborhoods; 2) preserve and improve the quality of the housing stock; 3) assist seniors to age in-place or the disabled to remain in their home; and/or, 4) to enhance security of the home. Applicant Eligibility Grants through the Minor Home Repair Program are available to households earning less than 120% of the San Diego Area Median and adjusted according to household size per the U.S Department of Housing and Urban Development. The gross household income of all household members 18 years of age or older are included when determining income eligibility. The source of funding for these grants will be determined on a case-by-case basis according to the household income, type of project, and location of home within the city boundaries. The applicant must own and live in the home that is identified for repairs. The home must be the primary residence of the applicant and be located within the jurisdictional boundaries of the City of Carlsbad. These grant funds may not be combined with any other form of public assistance for the subject repairs. All other funding for the subject repairs must be provided through a private source. The applicant must be current on all loan payments, property taxes and/or any other assessed fees and not be under the threat of property foreclosure for any other reason. The applicant may be required to pay a fee for a credit report and title report for said property to determine eligibility if determined to be necessary, and will be required to submit documentation for income verification. Eligible Costs The grant funds may be used to make minor repairs to remedy unsafe living conditions, such as leaky plumbing, broken windows, faulty light switches or unsafe electrical wiring, defective water heaters, or inadequate door and window locks. The funds may also be used to remove architectural barriers to wheelchair access by installing ramps, widening doorways; installing accessible showers, tubs and toilets; installing safety hand rails, grab bars, and levers; and to install devices for the hearing- and sight-impaired. On a case-by-case basis, grant funds may be used to improve the appearance of the exterior of a residence. Eligible expenses may include minor landscaping, driveway repair, fencing, and removal of debris, overgrown shrubbery, and hazardous trees, and exterior home painting. EXHIBIT 4 The applicant must submit a scope of work prepared by a licensed contractor and said scope of work must be approved by the City of Carlsbad. All repairs and/or rehabilitation must be completed in accordance with City Building Codes and other related codes. The applicant shall be required to pay for said improvements and then request reimbursement from the City of Carlsbad, or the City may agree to make payment directly to the contractor. A licensed contractor must certify that the work has been completed before payment or reimbursement shall be provided. Application Process The Program Administrator will complete an initial screening of all potential applicants to confirm: 1. The applicant is improving or repairing an eligible home within the City of Carlsbad. 2. The applicant intends to reside within the home as a primary residence. 3. Initial information indicates that the applicant qualifies for the assistance. 4. Initial information indicates that the proposed improvements/repairs are eligible expenses. After initial eligibility has been determined, the Program Administrator will provide the applicant with the necessary packet of information to proceed with the repairs and/or obtain the loan/grant proceeds. A credit report and title report may be required as part of the verification documentation. The loan/grant will be secured by a promissory note, a recorded subordinate deed of trust and regulatory agreement. Program Administration The Carlsbad Housing and Redevelopment Department shall be the program administrator. The Housing and Redevelopment Director is authorized to administer the program on behalf of the Carlsbad Redevelopment Agency and City of Carlsbad, and may set forth additional policies and procedures as determined to be appropriate to maintain the integrity of the program and provide for its intended implementation.