HomeMy WebLinkAbout1994-05-12; Housing Commission; MinutesMinutes of: HOUSING COMMISSION
Time of Meeting: 6:OO P.M.
Date of Meeting: May 12,1994
Place of Meeting: CITY COUNCIL CHAMBERS
CALL TO ORDER:
Chairman Scarpelli, called the Regular Meeting to order at 6:05 p.m.
PLEDGE OF ALLEGIANCE:
The pledge of allegiance was led by Commissioner Sato.
ROLL CALL:
Present: Chairman Scarpelli, Commissioners Calverley, Escobedo, Noble, Sato, and
Wellman
Absent: Commissioners Avis and Rombotis
Staff Present: Evan Becker, Housing and Redevelopment Director
Reggie Harrison, Housing Program Manager
Leilani Hines, Management Assistant
Clint Phillips, Senior Management Analyst
Chaiiman Scarpelli announced that Commissioner Peterson had resigned because he was moving to live
with his son in another city.
COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA:
There were no requests to address the Commission.
APPROVAL OF MINUTES:
ACTION: Motion by Commissioner Sato, and duly seconded, to approve the Minutes of the
Regular Meeting of March 10, 1994, as submitted.
Chairman Scarpelli, Commissioners Calverley, Escobedo, Noble, Sato, Wellman
VOTE: 6-0
AYES:
NOES: None
ABSTAIN: None
NEW BUSINESS:
1. UPDATE ON AFFORDABLE HOUSING PROJECTS & PROGRAMS
Evan Becker, Housing and Redevelopment Director, narrated a slide presentation on affordable housing
which will be presented at the upcoming quadrant meeting for the benefit of the public.
Mr. Becker then discussed those ordinances which have been approved and those that are pending with
regard to affordable housing. He stated that the City needs a total of 2,506 units for low income families
and, to date, only eight projects with a total of 805 units have been approved. This equates to 40% of our
current need.
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HOUSING COMMISSION May 12,1994 PAGE 2
Leilani Hines, Management Assistant, reported on the Residential Rehabilitation Program which is
currently underway. Although the grant monies are available to any low income household in the City, the
Barrio area was targeted for the initial offering. There are 14 households currently on the waiting list for
funds. Three projects will be going out to bid soon. Four new applications were received this week. A
discussion period followed.
Clint Phillips, Senior Management Analyst, gave a presentation on the Mortgage Credit Certificate
Program, what it is and how it works, for the benefit of the Commissioners. A discussion period followed.
Reggie Harrison, Housing Program Manager, gave a presentation on the Rental Assistance and Family
Self-sufficiency Programs, what they are and how they work, for the benefit of the Commissioners. A
discussion period followed.
Evan Becker, Housing and Redevelopment Director, discussed the Villas affordable housing project and
reviewed the current status of the pending litigation between the school district and the City.
3. HOME APPLICATION FOR PROGRAM YEAR
Reggie Harrison, Housing Program Manager, gave a staff presentation on the Home Investment
Partnerships Program (HOME) which is being administered by the California Department of Housing and
Community Development. HOME funds are available to assist in the acquisition, development,
construction, or rehabilitation of affordable housing for low income families. He stated that HCD seems to
be focusing their attention at the current time toward rehabilitation and construction projects rather than
rental assistance. Mr. Harrison stated that our last two applications for rental assistance under the HOME
program had been denied. A discussion period followed regarding the City's application for HOME funds
which will be submitted in October 1994.
ADJOURNMENT:
By proper motion, the Regular meeting of May 12, 1994 was adjourned at 8:43 p.m.
Respectfully submitted,
EVAN BECKER
Housing and Redevelopment Director
BETTY BUCKNER
Minutes Clerk
May 12, 1994
TO: HOUSING COMMISSION
FROM: HOUSING AND REDEVELOPMENT DIRECTOR
STATUS REPORT ON VARIOUS HOUSING PROJECTS AND PROGRAMS WITHIN
CARLSBAD
For information purposes, at the Housing Commission meeting of May 12, 1994 staff will
provide an update or status report on various affordable housing projects and/or programs which
are currently being developed or in implementation stages.
Attached is an affordable housing project status report which will provide you with information
on both approved and proposed projects. Also attached is a map which identifies the affordable
housing sites within each quadrant of the City. Staff will review this information at the meeting
and provide any additional updates which may be necessary.
In addition to reviewing the above projects, staff will provide status reports on the following
programs:
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Residential Rehabilitation - Leilani Hines
Mortgage Credit Certificate Program - Clint Phillips
Rental Assistance and Family Self-sufficiency Program - Reggie Harrison
At the request of Commissioner Wellman, staff will present information on the HOME program
at the meeting. Commissioner Wellman would like to discuss potential projects for the next
application period. HOME applications will most likely be due October 1, 1994. Although the
City does not yet have a copy of the 1994 regulations for the HOME program, staff does not
believe they will differ much from the 1993 regulations in terms of eligible uses. Therefore, a
copy of the section (8205) regarding eligible use of funds from the 1993 HOME regulations is
for your review.
EVAN E. BECKER
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APPROVED PROJECTS D~~CKIYI'ION
Calaven Hills - Village L-I (NE)
St. Francis Cour( (NW)
The Villas at El Camino Real (SW)
costaDosol(sw)
9 townhomes for lower income households (for salc)
76 unit Senior housing project for lower income households (rental)
344 units for lower income households (rental)
23 condo units affordable to lower income households (for sale)
I 63 units affordable to lower income households (rental)
Poinsettia Hills (SW)
Mariner's Point (SW) 176 uniu affordable to lower income households (rental)
24 wndo units affordable to lower income households (for sale)
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Laurel Tree Apls (SW)
Green Valley Masler Plan (SW)
Los Pueblos (SW)
Rancho Carrillo (SE)
34 unit affordable to low and moderate income households (rental)
60 units required to be affordable to lower income households; no plan yet
90 condo units to be affordable to lower mcomc households (for sale)
54 units. for lower income households: no plan yet
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Rancho Carrillo - Village F (SE)
Meadowlands (SE)
Calaveta Heights - Village K (NE)
170 units for lower income households; no plan yet
110 attached homes for lower income and 329 for moderate income households (for sale)
110 wndo unit Senior project to k affordable to very low income households (for salc)
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
PROGRAM REGULATIONS
STATE OF CALIFORNIA
Pete Wilson, Governor
Timothy 1. Coyle, Director
Department of Housing and Community Development
8205. Eligible Use of Funds
(a) HOME funds shall be used to assist, in whole or in part, the acquisition, development, construction, or rehabilitation of housing affordable to low-income families or shall be used
to provide direct assistance to low-income families. Except for subdivisions (a) (1) and (a) (21, all assistance shall be
in the form of loans to be repaid to the local account,
unless other forms of assistance are approved by the
department as a part of the IIProgram Design and Processgt
provided as part of the application.
to pay:
HOME funds may be used
(1) the costs of relocation payments and other relocation assistance incurred in order to comply with 24 CFR section 92.353;
(2) tenant-based rental assistance for a family, subject to the restrictiqns and terms in section 8211 of this subchapter ;.
(3) the costs associated with the financing and development of new construction, acquisition, and rehabilitation, including, but not limited to:
(A) architectural, engineering, or related professional services required to prepare plans, drawings, specifications, or work write-ups;
(B) private lender origination fees, credit reports,
fees for title evidence, recording and filing fees, building permits, attorneys’ fees, private
appraiser fees and fees for an independent cost
estimate, builders’ or developers’ fees; and
(C) costs to provide project-specific information services, such as affirmative marketing and fair housing information to prospective households.
(4) the actual cost of constructing housing, including, but not limited to:
(A) costs necessary to meet local building codes;
(B) costs necessary to meet the energy efficiency standards of 24 CFR part 39;
(C) costs necessary for improvements to the project
site when such improvements are required by state
or local law; and
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(D) costs necessary to fund an initial operating
deficit reserve during the period of project rent-
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(5) the actual cost of rehabilitating housing, including, but not limited to:
(A) costs necessary to meet rehabilitation standards;
(B) costs necessary to meet energy efficiency standards contained in 24 CFR part 39 when done in combination with other rehabilitation activities;
(C) costs necessary to improve access and use by
handicapped persons in accordance with 24 CFR part
40, including appendix A;
(D) costs necessary to abate lead-based paint hazards
as required by 24 CFR section 92.355;
(E) costs necessary to fund an initial operating
deficit reserve during the period of project rent- up for a substantial rehabilitation project;
(F) costs necessary to repair or replace any major
housing systems in danger of failure; and
(G) costs necessary for improvements to the project
site when such improvements are required by state
or local law;
(6) the cost of acquiring improved or unimproved real
property; and
(7) the actual cost of administering a HOME program in an amount and for the activities identified in a NOFA issued by the department pursuant to section 8212.
(b) Costs must be necessary and must be consistent with the
lowest reasonable cost taking into consideration a project's scope and area.
(c) Up to ten percent of the entire amount allocated to each
CHDO may be used for project-specific technical assistance
and site control loans pursuant to 24 CFR section 92.301.
(d) Up to five percent of the total amount of funds made available by HUD to the department for any funding cycle may be used to pay for operating expenses of a CHDO with which the department has entered into a standard agreement.
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8206. Prohibited Activities
HOME funds shall not be used to:
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defray the cost of administering a local HOME program, unless allowed by the department pursuant to section
8205(a) (71, including, but not limited to, project delivery costs, such as new construction and rehabilitation counseling, preparing work specifications, loan processing, and inspections;
provide operating reserves which are, or will be, used to subsidize rents;
provide tenant-based rental assistance in combination with
the existing Section 8 program;
provide assistance to prevent displacement from projects
assisted with rental rehabilitation funds under 24 CFR part
511;
provide non-federal matching contributions required under any other federal program;
provide assistance for maintenance and operation of projects owned or leased by the local public housing authority;
provide assistance to modernize public housing owned by a public housing authority; and
provide assistance to eligible low-income housing under
24 CFR Part 248.
8207. Matching Contributions
(a) Except as noted in subsections (a) (1) and (a) (2) below, state recipients and CHDOs shall contribute matching funds
as required in subsection (b) to assist with the cost of
projects funded by the HOME program.
If the matching contribution requirements of 24 CFR
section 92.218 are waived or modified by Congress or are modified by HUD pursuant to 24 CFR section 92.222, the department shall waive or modify the matching contribution requirements of subsection (b) for projects funded within each funding cycle affected by the federal action.
If the department identifies department funds or programs that can be used to meet part or all of the matching contribution requirements of 24 CFR section 92.218, the department shall modify the matching
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contribution requirements of subsection (b) for projects funded within each funding cycle for which the department is able to contribute toward the matching
contribution requirements.
(3) Modified matching contribution requirements for each funding c.ycle as provided for in subsections (a) (1) and
(a)(2) shall be provided in the NOFA issued by the department pursuant to section 8212.
(b) State recipients and CHDOs shall contribute matching funds according to the following requirements:
(1) not less than 30 percent of the amount of funds drawn and used in that fiscal year for new construction; and
(2) not less than 25 percent of the amount of funds drawn and used in that fiscal year for all other activities.
(c) Matching contributions shall be in one or more of the following forms:
(1) cash contributions from private sources or non-federal public sources. To be a cash contribution, funds must be contributed permanently to the HOME program. contribution may be made from program income from a
federal grant which is earned after the end of the award period for that federal grant provided there are
no federal requirements governing the disposition of that program income. All repayments, interest, or other return on investment of the cash contribution must be deposited in the HOME fund to be used for
eligible HOME activities in accordance with the
requirements of this program;
A cash
(2) deferred, foregone, or abated taxes, fees, or other
The amount of any foregone normally incurred development charges that are waived
by the charging entity. real estate taxes shall be based on post-improvement property value, as determined by the jurisdiction's tax
assessor;
(3) the value of that portion of land or other real property, not acquired with federal resources, and as
appraised by an independent appraiser who has received
a general certification from the State of California,
Office of Real Estate Appraisers;
(4) the value of any on- or off-site improvements required for the project and which have been completed no
earlier than 12 months before HOME funds are committed to the project;
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(d)
(e)
(f)
any form bi matching contribution described in
subdivisions (1) through (4) in a mixed-use project where not less than 51 percent of the project space is residential living space, and where each building must contain residential living space;
any form.of matching contribution described in subdivisions (1) through (4) in a mixed-income project where not less than 50 percent of the dwelling units
qualify as affordable, and where each building in the project must contain housing which meets the requirements of 24 CFR sections 92.252 or 92.254;
sweat equity; and
any other identifiable item, the value of which can be accurately determined and which is determined by the department as qualifying as matching contributions pursuant to 42 USC 12724, section 12750(a), and/or 24
CFR sections 92.219 and 92.220.
matching contribution shall be deposited or accounted
for, as appropriate, for use on the project and shall be available prior to the drawdown of funds pursuant to section
8217.
Documentation that the matching contribution requirements have been met shall be subject to verification by the
department.
Unless otherwise requested by the state recipient, all
repayments of HOME funds and matching contributions shall be
made directly to the department for deposit into the department’s local account.
8208. Prohibited Forms of Matching Contributions
Contributions which will not be considered as HOME matching contributions pursuant to 24 CFR section 92.220(b) include the following:
contributions which are made with or derived from federal funds, regardless of when the federal funds were received or expended, except as provided in subsection 8207(c) (1);
the value attributable to federal tax credits or to
federally tax-exempt financing;
owner equity or investment in a project; and
contributions from builders of, general labor contractors for, or investors in HOME-assisted projects.
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8209. Minimum/Maximum Contribution of HOME Funds
(a) The minimum amount of HOME funds invested in a project involving rental housing or homeownership shall be at least
$1,000 times the number of units assisted with HOME funds in
the project.
(b) The maximum amount of HOME funds invested in a project shall
not exceed the per unit dollar limits established by HUD
under 24 CFR section 92.250.
8210. Affordability Requirement8
(a) In order to qualify under these regulations for funding as an affordable rental housing project, the project shall meet the following criteria:
(1) All housing units assisted with HOME funds shall bear monthly rents which do not exceed the lesser of:
(A) the fair market rent for existing housing for
comparable units in the area as published annually by HUD in the "Federal Register" pursuant to
24 CFR section 888.111; or
(B) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals
65 percent of the median income for the area, as developed by HUD and published in section 6932 of this Title;
(2) Any project with three or more rental units shall have no fewer than 20 percent of the housing units:
(A) occupied by very low-income families who pay as a contribution toward rent not more than 30 percent of their monthly adjusted income; or
(B) occupied by very low-income families and bearing monthly rents not greater than 30 percent of the gross income of a family whose income equals
50 percent of the median income for the area;
(3) All housing units receiving HOME assistance shall be occupied by low-income families except pursuant to subsection (c) of this section;
(4) Pursuant to 24 CFR section 92.252 (a) (4) , no tenant seeking a housing unit in a project assisted with HOME
funds shall be refused a housing unit because he or she has a Section 8 certificate or rental voucher or he or she is the holder of documentation evidencing
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participation in the HOME tenant-based rental assistance program; and
(5) Housing units assisted with HOME funds shall, at a minimum, remain affordable pursuant to 24 CFR section
92.252 (a) (5) .
HUD may adjust the qualifying rent established for a project under subsection (a) (11, only if "D finds that such adjustment is necessary to support the continued financial viability of the project and only by an amount that HUD
determines is necessary to maintain the continued financial
viability of the project.
In rental housing projects, the project owner shall annually recertify incomes and adjust rents if necessary, as required
by 24 CFR section 92.252(b). State recipients and CHDOs shall be responsible for ensuring compliance with 24 CFR
section 92.252 (b) .
For homeownership, newly constructed, or acquired housing units assisted with HOME funds, the project shall:
have an initial purchase price that does not exceed the mortgage limit as provided in 24 CFR section 92.254
201.10, 203.18, and 234.27. For a cooperative housing
unit, the purchase price for a cooperative share may not exceed the balance remaining after subtracting from the one-family mortgage limit an amount equal to the
blanket loan covering the cooperative development which
is attributable to this cooperative unit;
have an estimated appraised value after rehabilitation that does not exceed the appropriate mortgage limit
identified in subsection (d) (1) ;
be the principal residence of an owner whose family
qualifies as low-income at the time of purchase;
be made available only to first-time homebuyers; and
be made available for subsequent purchase:
(A) by a low-income person or family that will use the property as its principal residence; and
(B) at a price which will:
(i) provide the owner with a fair return on investment, including any improvements; and
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(ii) ,nsure that the housing will remain affordable pursuant to 24 CFR section
92.254 (a) (4) (ii) (B) ; or
(C) by a low-income person or family that will use the property as its principal residence and that will assume the HOME subsidy; or
by any purchaser as long as HOME funds are repaid and used to assist other first-time homebuyers.
Housing that is currently owned by a family and is to be rehabilitated qualifies as affordable housing only if:
(D)
(e)
(1) it has an estimated appraised value after rehabilitation that does not exceed the appropriate
mortgage limit identified in subsection (d) (1) ;
(2) the housing is the principal residence of an owner whose family qualifies as low-income at the time HOME
funds are committed to the housing.
(f) In a project in which not all housing units are affordable pursuant to this section, each building shall contain no fewer than one housing unit which shall be affordable pursuant to subsection (a).
(g) In a project which contains non-residential space, residential space shall constitute no less than 51 percent of the project space and shall be affordable pursuant to
subsection (a). Each building within the project must
contain residential living space.
(h) Where HOME funds are to be used in connection with housing or a project which will be financed with a mortgage insured by HUD under 24 CFR parts 201 through 265, inclusive, the period of affordability must be at least equal to the term of the HUD-insured mortgage.
8211. Tenant-Based Rental Assistance
(a) Eligibility for HOME-funded tenant-based rental assistance
and security deposit assistance shall be restricted to
families who maintain residence within the boundaries of the
jurisdiction where the assistance is provided and who are:
(1) selected from the waiting list of the public housing authority. The waiting list shall have been
established pursuant to 24 CFR 882.209 (a) (7) ;
(2) selected from a waiting list established by the state recipient or CHDO. The waiting list shall have been
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established using the
reasonably related to
24 CFR 882.219; or
(3) currently residinq in
selection policies and criteria the preference rules contained in
housing units that are desiqnated
for rehabilitatation or acquisition using HOME funds.
(b) In any case where Section 8 rental assistance provided under
24 CFR part 882 becomes available, tenants shall be given
preference for that assistance to the same extent as when
they received the HOME tenant-based rental assistance.
(c) The term of a grant of tenant-based rental assistance provided with HOME funds shall not exceed 24 months.
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May 17, 1994
TO: MAYOR AND CITY COUNCIL
FROM: HOUSING AND REDEVELOPMENT DEPARTMENT
HOUSING COMMISSION MEETING OF MAY 12, 1994
The following represents a summary of the meeting of the Housing Conlmission held on May 12, 1994:
1.
Staff of the Housing and Redevelopment Department made reports on the status of various affordable
housing projects and programs which are currently being developed or in implementation stages. The
reports included information on the Residential Rehabilitation, Mortgage Credit Certificate and Rental
Assistance Programs.
The Housing Commission discussed and provided feedback to staff on the projects and programs.
UPDATE ON AFFORDABLE HOUSING PROJECTS AND PROGRAMS:
2. HOME APPLICATION FOR PROGRAM YEAR 1994
At the request of the Commission, staff presented information on the HOME program. The Commission
and staff discussed the potential projects for the next application which will be due October 1, 1994. Staff
will review this matter further and prepare a report at a later date regarding the application.
EVAN E. BECKER
Housing and Redevelopment Director
C: City Manager
City Attorney
Assistant City Manager
Financial Management Director
Assistant to the City Manager
Community Development Director
Department Heads