HomeMy WebLinkAbout2011-02-08; City Council; 20442; COOPERATIVE AGREEMENT HOME INVESTMENT CONSORTIUMCITY OF CARLSBAD - AGENDA BILL
20,442AB#
MTG.
DEPT. HNS
2/8/11
COOPERATIVE AGREEMENT TO
FORM A HOME INVESTMENT
PARTNERSHIP CONSORTIUM
DEPT.
CITY ATTY
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2Q11-016 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 4, 2008, 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 3.0, 2012. As a participant in the
HOME Consortium, the City of Carlsbad will be eligible to receive an estimated 2011-2012
HOME allocation of approximately $290,000.
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, 2011 to allow adequate time for processing prior to it becoming effective for three federal
fiscal years beginning with the 2012 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
FOR CITY CLERKS USE ONL Y. w
COUNCIL ACTION: APPROVED K
DENIED Q
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
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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.
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 $7,000 in administrative funds during the 2012-2013 program year. The City is
eligible to receive an estimated HOME allocation of $290,000 in 2012-2013 to provide low-
income households with affordable rental or homeownership opportunities.
ENVIRONMENTAL IMPACT:
The proposed action does not qualify as a "project" under the California Environmental
Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct
or reasonable foreseeable indirect physical change in the environment.
EXHIBITS:
1. Resolution No. 2011-016 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, frank.boensch@carlsbadca.gov
CITY COUNCIL RESOLUTION NO. 2011-016
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;
9 WHEREAS, NAHA authorizes contiguous units of general local government to join
10 . .together in a consortium;
11 WHEREAS, it is the desire of the Cities and the County to form a Consortium to
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implement the objective of increasing the local supply of decent affordable housing to low and
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very low income Americans; and
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
, , Carlsbad, California, as follows:ID
17 1. The above recitations are true and correct.
18 2. 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
19 Investment Partnership Program for the purpose of increasing the local supply of
decent affordable housing to low and very low income persons is approved.
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3. The City Manager or her written designee, is hereby authorized and instructed to
enter into the 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
23 the Consortium, attached to this Resolution as Exhibit A.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 8th day of February, 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard
NOES: None.
ABSENT: None.
MATT HALL, Mayor
LORRAINE M. WOOD, City Clerk
(SEAL)
COOPERATIVE AGREEMENT TO FORM
A HOME CONSORTIUM
This Agreement is entered into by and between the Cities of Carlsbad, Encinitas, La Mesa, San Marcos,
San tee and Vista (hereinafter referred to as "Cities") and the County of San Diego (hereinafter referred to
as "County"), on .. 2011
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, et seq.); 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), as amended.
1.2 FAIR HOUSING: Each member of the Consortium shall affirmatively further fair
housing.
r
COOPERA TIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 2 of 12
2. TERM OF AGREEMENT: The qualification period of this Agreement is for Fiscal Year 2012
through Fiscal Year 2014; July 1, 2012 to June 30, 2014.
2.1 AUTOMATIC RENEWAL: This Agreement shall automatically be renewed for
participation in each successive three-year Fiscal Year qualification periods (i.e. July 1, 2015 to June 30,
2017). By June 1, the Lead Entity shall provide written notification to each Consortium member of their
right not to participate in the next qualification period.
2.2 ADOPT FUTURE CONSORTIA AGREEMENT REQUIREMENTS: In the event
that the requirements for consortia agreements are modified by HUD, the Consortium shall adopt any
amendments to this Agreement that incorporate the future changes necessary to meet the requirements for
consortia agreements in subsequent qualification periods.
2.3 TERMINATION OF AGREEMENT: In accordance with §92.101(e) of the Code of
Federal Regulations, this Agreement cannot be terminated during any active three-year qualification
period. No Consortium member may withdraw from this Agreement while it remains in effect.
2.4 PROGRAM YEAR: The Fiscal 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
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2012-2014 Page 3 of 12
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
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 COMMITMENT AND EXPENDITURE 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 Consortium member does not commit their share
of HOME funds to a specific project or program within 18 months following the date of HUD's
Grant Agreement for each respective Fiscal Year, that Consortium member'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 not committed in accordance with
paragraph 8.1 above, shall be recaptured by the Lead Entity and reallocated to an eligible activity
at its sole discretion.
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
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 4 of 12
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.
8.5 RECAPTURE OF FUNDS: If a member of the Consortium does not commit or expend
funds on an eligible activity in accordance with Paragraph 8. 1, the funds shall be recaptured by
the Lead Entity and reallocated in accordance with Paragraph 8.2. Unexpended funds, including
any balances remaining after an activity is completed by a jurisdiction shall be recaptured and
reallocated 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: Upon receipt of a request to join the Consortium, new members may be allowed
to join the Consortium only during the second and third year of a three-year Fiscal Year qualification
period.
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.
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 5 of 12
11. AUTHORITY TO AMEND AGREEMENT: The Program Administrator is authorized to amend
the Consortium agreement on behalf of the entire Consortium, In addition, the Program Administrator is
authorized to add new members, on behalf of the entire Consortium.
12. 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
13. 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.
RACHEL H. WITT, Senior Deputy County Counsel Date
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 6 of 12
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and the year
first above written.
COUNTY:
BY:
DAVID ESTRELLA, Director
Department of Housing & Community Development
Date:
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM2012-2014 Pase7ofl2
CITY OF CARLSBAD:
BY:
LISAMJDABRAND, City Manager
Date:
COOPERATIVE AGREEMENT TO FORM A HOME CONSORTIUM 2012-2014 Page 8 of 12
CITY OF ENCINITAS:
BY:
PHIL COTTON, City Manager
Date:
rctOPERA TIVE AGREEMENT TO FORMA HOME CONSORTIUM2012-2014 Page 9 of 12
CITY OF LA MESA:
BY:
ART MADRID, Mayor
Date:
Attest:
BY:
NANCY N. NEUFELD, Deputy City Clerk
Date:
Approved as to form:
BY:
GLEN SABINE, City Attorney
Date:
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 10 of 12
CITY OF SAN MARCOS:
BY:
JIM NUSE, City Manager
Date:
COOP ERA TIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 11 of 12
CITY OF SANTEE:
BY:
KEITH TILL, City Manager
Date:
COOPERATIVE AGREEMENT TO FORMA HOME CONSORTIUM 2012-2014 Page 12 of 12
CITY OF VISTA:
BY:
RITA L. GELDERT, City Manager
Date:
All Receive-Agenda Item #-D
Lisa Mil dabrand For the Information of the:
From: Debbie Fountain . Asst.
Sent- Tuesday, February 08, 201 1 8:47 AM o( ^ ,
To: Lisa Hildabrand ^•"•gaJL-CityManRrer l^
Cc: Ron Ball; John Coates
Subject: HOME Program
Hi Lisa. Yesterday I was asked if the $7,000 in administration estimated for the HOME program was^paffof or in addition
to the allocation for projects. I said it was part, but I wanted to clarify that the administratioj^ftfnds are part of our
allocation from the HOME Consortium but the admin funds are in addition to the funds available for projects. We
actually share a portion of the funds set aside for administration of the HOME program by the County.
As a participating jurisdiction (or entitlement) community under HOME, we would be allowed to use 10% of our total
allocation for administration. However, we are not yet eligible to be a participating jurisdiction on our own. The formula
to determine direct participation is based on factors including age of housing units, substandard occupied housing units,
number of families below the poverty rate and population. Based on the formula, we then must reach a minimum
threshold of $335,000 or $500,000, depending on the total appropriation by the federal government, in order to be
designated a participating jurisdiction. We have not yet met the thresholds to be designated a participating jurisdiction.
We will continue to track our eligibility. If we become eligible at some future date, we will let you know so that a
decision could be made as to whether or not we should participate on our own or continue with funding through the
consortium.
Let me know if there are any other questions.
Thanks,
Debbie )ate:
)istribution:
f 3ity Clerk
CAR LSBAD ^^"f^X *?Deputy Clerk
Debbie Fountain 3(X)K
Housing and Neighborhood Services Director
2965 Roosevelt Street, Suite B _----—-——— ---
Carlsbad, Ca. 92008
Website: www.carlsbadca.gov
P:(760) 434-2935 - Direct
P:(760) 434-2811 -Office
F:(760) 720-2037 - Fax
E: debbie,fountain(g) carlsbadca.gov