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HomeMy WebLinkAbout1997-12-11; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: Place of Meeting: DECEMBER 1 1,1997 CITY COUNCIL CHAMBERS CALL TO ORDER: Chairperson Schlehuber called the Regular Meeting to order at 6:07 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Noble. ROLL CALL: Present: Chairperson Schlehuber, Commissioners Escobedo, Latas, Noble, Rose, Scarpelli, Walker, and Wellman Absent: Commissioner Calverley Staff Present: Debbie Fountain, Acting Housing and Redevelopment Director Leilani Hines, Management Analyst Cissie Sexton, Office Specialist I1 APPROVAL OF MINUTES: ACTION: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the Regular Meeting of October 23, 1997, as submitted. Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Walker VOTE: 7-0-1 AYES: NOES: None ABSTAIN: Wellman COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. 1998-99 HOME PROGRAM - Request for approval of a recommendation of activities to be funded through the City of Carlsbad’s 1998-99 HOME Investment Partnership Program. Leilani Hines stated that the City of Carlsbad continues to be eligible to receive HOME funds as a participant in the County of San Diego HOME Consortium. For 1998-99, the City will receive approximately $197,276. As outlined in the Funding Plan Strategy, finds can be used to increase affordable housing using various methods, one of which could be housing acquisition with rehabilitation; housing rehabilitation as its own program; new construction of housing; rental assistance similar to the Section 8 program; and a security deposit assistance program. Staff is recommending that HOME funds be used for housing rehabilitation costs for rental housing or existing owner- occupied single-family homes. Staff is asking that the Commission recommend the allocation of the finds to the Residential Rehab Program. A Single-Family Residential Program is already in place and operated by the County of San Diego on behalf of the City. As specific rental rehabilitation projects are identified, Staff will present them to the Housing Commission for consideration as well as any supplemental agreements that would be associated with the project(s). Staff is recommending funds for residential rehabilitation based upon the lack of other comparable programs, lack of other available finding sources, and the benefits of such programs. Rehabilitation of housing basically preserves the integrity of HOUSING COMMISSION MINUTES DECEMBER 11, 1997 PAGE 2 the community, providing a stable, safe, and sanitary living environment for our residents. In addition, residential rehab programs meet a priority in the City’s Consolidated Plan, as well as meet objectives with the Housing Element. Staff is recommending that the full $197,276 of HOME funds be allocated to residential rehabilitation programs. Chairperson Schlehuber asked if there were any questions of Staff. Commissioner Noble asked what happens to the funds if there are not enough homes to rehabilitate. Ms. Hines responded that as of October there were 16 households to rehabilitate, which can be funded with current funds. The City will do heavy marketing about the program. She added that there is never a shortage of homes to be rehabilitated and that it takes a lot of money to rehabilitate homes, i.e., $20,000 to $25,000 per home. Commissioner Wellman asked if the Laguna Drive apartments would qualify for this program. Ms. Hines responded affirmatively. Commissioner Wellman mentioned a program where the City of San Diego is encouraging people who have renovated their garages as bedrooms to get the units up to code. Commissioner Wellman asked about the leeway of the funds. Ms. Hines responded that there are some guidelines the federal government has in terms of priority for the use of HOME funds for rehabilitation, and said there are A, B, C, and D priorities. First and foremost is health and safety code violations-- things that would violate building codes-things that would present a health and safety threat. A converted garage, out of compliance, would be first on the list to be rehabilitated or corrected. Commissioner Wellman asked if the City could take admin fees out of this money. Ms. Hines responded that the HOME monies are strictly for loans and grants. The City does fund the administrative expenses for the program through CDBG funds, not the HOME funds. Commissioner Scarpelli asked who does the scoring of the Evaluation Form. Ms. Hines responded that she does the scoring. Commissioner Scarpelli asked about the comment “a lukewarm response for qualifying residents” in “Paragraph E: Performance Record“ on Page 3 of the Evaluation Form. Ms. Hines responded that the City does have a substantial waiting list; and if every person on the waiting list were to participate in the program, the City would not have enough money to serve the clients. Sometimes the City gets into a position where people are very much interested in rehabilitating their properties; but they don’t quite understand all the rules and regulations or what would be required, and sometimes by the time the City gets to them on the list, they have dropped out because of lack of interest or they just didn’t understand the program in the beginning, etc. This is what Ms. Hines meant by “a lukewarm response for qualifying residents.” She said the City has done very minimal outreach because there is a substantial waiting list for the program. She anticipates that once the City starts aggressively marketing this program, the City could get a tremendous amount of people on the list; particularly in the winter when people start thinking about rehabilitating their homes. Ms. Fountain commented that the City usually looks at the total number of units assisted, and from SWs perspective, the City is really not doing a lot of rehabs due somewhat to a lack of funding but also to a lack of interest by homeowners once they find out that there are strings attached to the receipt of the funds. She added that there is plenty of need but for a variety of reasons many people just don’t apply. HOUSING COMMISSION MINUTES DECEMBER 11,1997 PAGE 3 Commissioner Scarpelli asked about the comment in Section 11, Paragraph A: Leverage of Funds, and wondered what the City could do to improve its leveraging. Ms. Hines responded that the CDBG and HOME funds are really the only sources of funds the City has available for rehabilitation. The City could pull money out of the Housing Trust Fund fiom Redevelopment Set-aside Funds; but if the City uses these funds for rehabilitation efforts, it limits the opportunities for new construction. Commissioner Scarpelli asked if the City is matching funds with the homeowner, non-profits, or community associations. He suggested doing an outreach with other non-profits, etc. to improve the City’s leverage of HOME funds. Chairperson Schlehuber commented that the HOME funds are an annual award, making them more difficult to leverage than other types of monies. Commissioner Wellman commented that some charities would be happy to get $50,000 or $75,000 and match it. Commissioner Scarpelli mentioned the “Paint Lemon Grove” program, which was presented at Carlsbad Rotary. He said this is a rehabilitation of a whole neighborhood. He suggested the possibility of leveraging the funds with a non-profit to paint a certain section of Carlsbad. Chairperson Schlehuber asked that Staff contact a few non-profits on this topic. Ms. Fountain responded that Staff would be happy to bring the information back to the Commission at a later date. She added that Staff has spoken with the Rotary and other service organizations about the “paint” program indicating to them that in combination with the City’s single-family rehab, they could come in and clean up or paint property. The first priority is code enforcement issues, she said. If the City cannot correct code enforcement issues with the amount of money it has, the City has to walk away from the project. There are situations where the City can do the interior-type of work and maybe a service organization can come in and do the exterior-type of “clean up” work in a neighborhood. This has been discussed in great detail with representatives from the various service organizations. Ms. Fountain said Staff could bring this back at a later date and brainstorm about some of the other sources of funding. Staff has the ability to use its Low to Moderate-Income Housing funds through the redevelopment agency, which would be included with any other money that might be available. If the City had a project that needed $200,000, they may use a portion from the Low Mod fund and a portion fiom the HOME fund in combination to fund a project. A lot of the work required focuses on identifying the rental rehabilitation projects, and then trying to figure out the resources that are available. Commissioner Scarpelli suggested an outreach program with the rental property on Laguna Drive that is a problem for the community with its code enforcement problems, etc. He asked if the City can look at the aesthetics and not be so harsh about the violations for properties that are distracting to the rest of the community. Ms. Fountain responded that other sources of funding, other than the HOME and CDBG funds that are tied to code enforcement issues, might be available for this type of project. The HOME and CDBG monies are tied to federal regulations, which require first correcting the code violations. The Housing Trust Funds could be used for a paint or property clean-up program. Ms. Fountain added that some tenants are afraid that the property will be condemned, so they are not interested in participating. While the City has focused a lot of its energy with new construction projects, it can pursue other programs as well. Commissioner Wellman asked if Staff would look into and report to the Commission the City of San Diego’s rehab or “forgiveness” program (helping tenants rehab garages, etc.). (“ HOUSING COMMISSION MINUTES DECEMBER 11,1997 PAGE 4 Commissioner Scarpelli mentioned the rental properties on State Street and the City’s interest in the rehabilitation of State Street from the fountain north. He suggested a matching incentive program between the City and property owners in this area. There being no other persons desiring to address the Commission on this topic, Chairperson Schlehuber declared the public testimony closed and opened the item for discussion among the Commission members. ACTION: Motion by Commissioner Scarpelli, and duly seconded, to ADOPT Housing Commission Resolution No. 97-014, recommending to the City Council the activities for funding under the City of Carlsbad’s 1998-99 HOME Investment Partnership Program. Escobedo, Lam, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman VOTE: 8-0-0 AYES: NOES: None ABSTAIN: None 2. ELECTION OF OFFICERS - Nomination and election of Chairperson and Vice-Chairperson for 1998. ACTION: Motion by Chairperson Schlehuber, and duly seconded, to nominate Commissioner Wellman for the position of Chairperson for 1998. Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman VOTE: 8-0-0 AYES: NOES: None ABSTAIN: None ACTION: Motion by Commissioner Noble, and duly seconded, to nominate Commissioner Walker for the position of Vice-Chairperson for 1998. Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Walker, Wellman VOTE: 8-0-0 AYES: NOES: None ABSTAIN: None ANNOUNCEMENTS: Ms. Fountain reported that the Laurel Tree project received its financing approvals and the 18-month construction period will begin in April of 1998. Ms. Fountain reported that the Poinsettia Properties project has been somewhat controversial. Commissioner Noble added that the General Plan was changed when the Growth Management Plan came in, which cut the project from 1,800 homes to 1,090 homes. He said that part of the controversy is that the homeowner associations in the area agreed this was a great project. Apparently 32 homeowners out of 280 complained about having paid $30,000 to $60,000 for a view and they do not want houses being built 28 feet high even though the City ordinance (when this was approved) was 35 feet. The Ordinance has since been changed to 30 feet high. These homeowners want to see the ocean and are demanding a view ordinance which neither the City nor the state has. Two cases have been tried in court and they both lost, he added. He said here is an issue with the height of the trees, and canopy trees no taller than the top of the homes was suggested. These owners are trying to get each homeowner’s association east of Interstate 5 but adjacent to it to join forces with them. Commissioner Noble added that while there is no view ordinance, some homeowner associations have adopted within their own CC&Rs “view corridors.” Ms. Fountain added that while the Housing Commission so strongly supported this project (good concept and location), the affordable housing did become an issue in the newspapers. HOUSING COMMISSION MINUTES DECEMBER 11,1997 PAGE 5 Ms. Fountain reported that the City has not made a decision on the Director position so she will continue to be the Acting Housing and Redevelopment Director through the end of the year. Ms. Fountain asked for a volunteer from the Housing Commission to serve on the CDBG Subcommittee that reviews the proposals that come in for the CDBG program. She said there is one Housing Commissioner, one Senior Commissioner, and one Planning Commissioner who serve on the committee. Ms. Fountain asked the Commissioners to inform Ms. Hines within the week or so if they were interested in volunteering. She added that the Mayor would make the appointments from the Commission. Ms. Hines explained that a total of four meetings a year would be required for a ten-hour annual commitment. She said that Staff would be recommending that this be a two-year appointment. One meeting would be in January, and the other three would be in February on a Monday and Wednesday evening for about three hours. She added that two meetings would be to interview each organization, and one meeting would be devoted to deciding on the funding. She said that this year Staff will be completing the evaluations rather than the committee members; then the committee members will consider Staffs evaluation in the rank order they are placed based upon their score. The committee would decide on how much money to award to each organization. Commissioner Noble, who has served in the past, added that the meetings are interesting and the information helps the various Commissioners understand CDBG funding, etc. Keeping on the topic of rehabilitating older neighborhoods, Commissioner Escobedo reported a City sewage problem with some homes on Roosevelt and Tyler Streets that occurred over the Thanksgiving holiday when the City offices were closed. The homeowners phoned Commissioner Escobedo because of her association with the Housing Commission. The City did repair the drainage problem after it was reported to them. Ms. Fountain suggested the homeowners contact Risk Management. Commissioner Escobedo responded that the homeowners are concerned about a code enforcement officer coming to their homes. Chairperson Schlehuber asked Staff to contact Risk Management on this matter. ADJOURNMENT: By proper motion, the Regular meeting of December 11, 1997, was adjourned at 657 p.m. Respectfully submitted, - .. DEBBIE FOUNTAIN Acting Housing and Redevelopment Director KATHY VAN PELT Minutes Clerk HOUSING COMMISSION MINUTES DECEMBER 11,1997 PAGE 6 MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. *I The City of Carlsbad Housing & Redevelopment Department A REPORT TO THE HOUSING COMMISSION L Item No. 1 Staf LeiIani Hines Management Analyst DATE: December 11,1997 SUBJECT: 1998-99 HOME PROGRAM - Request for approval of a recommendation of activities to be funded through the City of Carlsbad’s 1998-99 HOME Investment Partnership Program. I. RECOMMENDATION ACCEPT public comments regarding the City of Carlsbad’s housing and community development needs and recommended proposal for funding under the HOME Investment Partnership Program and ADOPT Housing Commission Resolution No. 97-0 14, recommending to the City Council the activities for funding under the City of Carlsbad’s 1998-99 HOME Investment Partnership Program. 11. PROJECT BACKGROUND On July 17, 1996, the City Council approved Carlsbad’s continuing participation with the cities of Encinitas, Vista, Santee and La Mesa and the County of San Diego to form a consortium for the purpose of increasing the local supply of decent affordable housing to low and very low income persons. As a participant in the San Diego Urban County HOME Investment Partnership Consortium, the City will receive federal HOME funds to provide affordable housing opportunities for lower income households. The total amount of HOME funding available for allocation to eligible projects for Program Year 1998-99 is anticipated to be approximately $197,276. The City must submit a proposed activity for HOME fimding to the County of San Diego, as administrator of the HOME Consortium. Staff is requesting a recommendation from the Housing Commission to utilize PY 1998-99 HOME funds for housing rehabilitation costs incurred separately or in connection with the acquisition of rental housing for lower income persons or existing owner occupied single family homes. Attached for Housing Commission’s information is the City’s CDBG/HOME Investment Partnership Program Funding Plan Strategy (Exhibit 2). This strategy outlines the eligible housing activities for the HOME program. - 1998-99 HOME PROGR ,*A DECEMBER 11,1997 ‘PAGE 2 111. PROJECT DESCRIPTION As a participant in the San Diego Urban County HOME Investment Partnership Consortium, the City will receive approximately $197,276 to increase affordable housing opportunities. The City of Carlsbad is requesting $197,276 for housing rehabilitation costs incurred separately or in connection with the acquisition of rental housing for lower income persons or existing owner occupied single family homes. As specific rental rehabilitation projects are identified, such projects and the corresponding agreements for HOME funding will be presented to the Housing Commission for consideration. The Single Family Residential Rehabilitation Program will be operated in the same manner as previous years. No further action from the Housing Commission will be required for single family residential rehabilitation projects. In selecting projects for HOME funding, priority should be given to projects which best meet the identified needs of the low and moderate-income population within Carlsbad, as detailed within the City’s Consolidated Plan. Additionally, staff evaluated the proposal submitted based upon the following criteria, with a maximum score of 100 points: 1) organization’s ability and capacity; 3) benefits and beneficiaries; and 4) ready implementation of program and project. Staffs evaluation of the proposal, along with the project proposal, is included in Exhibit 3. 2) financial ability and stability; IV. ASSESSMENT The City of Carlsbad is requesting $197,276 for housing rehabilitation costs incurred separately or in connection with the acquisition of rental housing for lower income persons or existing owner occupied single family homes. Staff is recommending that the City of Carlsbad’s Residential Rehabilitation Program receive the full $197,276 available in 1998-99 HOME funds. The following factors were considered in arriving at this recommendation. A. Development Team Carlsbad’s Residential Rehabilitation Program, administered by the County of San Diego, has been in operation since 1993. The County has been operating residential rehabilitation programs since 1978. County staff has significant experience in all phases of residential rehabilitation, including construction and inspections. B. Project Quality and Financial Staff believes that the City of Carlsbad’s funding request to continue providing grants and/or loans for the rehabilitation of single family homes or rental housing is a priority based upon the lack of other comparable rehabilitation programs, lack of other available funding sources for Carlsbad’s Rehabilitation Program and the benefits of the program. Carlsbad’s Rental Residential Rehabilitation Program provides zero interest deferred loans to rental property owners to rehabilitate their rental property and to increase the availability of affordable rental housing by restricting the occupancy and rents of rehabilitated units. The Single Family Residential Rehabilitation Program provides - 1998-99 HOME PROGR,-,l DECEMBER 11,1997 ‘PAGE 3 below market interest rate loans for those able to qualify, zero interest deferred loans, and grants for up to $2,000 to low income home owners to rehabilitate and maintain their home. Unlike other commercial lending programs with higher interest rates, Carlsbad’s Residential Rehabilitation Program does not place an economic burden on a low income family’s financial resources. The rehabilitation of owner occupied single family homes has been hnded in the past entirely through the City’s Community Development Block GrantEIOME Program. While Redevelopment Low and Moderate Income Set-Aside fimds are available for rehabilitation of rental housing, no other resources are available at this time to fund the rehabilitation of single family homes. To date, the City has rehabilitated ten single family homes and three mobile homes, with approximately $224,585 in CDBG and HOME funds. No rental housing has yet been rehabilitated through Carlsbad’s Residential Rehabilitation Program. Rehabilitation of housing increases property values and positively impacts the surrounding neighborhood. C. Housing Needs and Goals Rehabilitation will preserve the integrity of single family homes in the community and provide a stable, safe and sanitary living environment for lower income residents. Additionally, the rehabilitation of housing will prevent the potential degradation of neighborhoods. The rehabilitation of housing supports several Housing Element Goals and Objectives, including Objective 1.5 (Rehabilitation) and Objective 1.9 (Rehabilitation-Home Owners). V. SUMMARY It is the role of the Housing Commission to make recommendations to the City Council based upon several considerations with respect to expanding affordable housing opportunities. These are: 0 The proposal’s effectiveness in serving the housing needs and priorities as expressed in the Housing Element of the General Plan and the HUD Consolidated Plan. 0 The proposals’ development and operating feasibility, emphasizing the applicant’s capacity, the financial feasibility and the appropriate role of the City in providing financial assistance. The City of Carlsbad’s Residential Rehabilitation Program represents a desirable component to the City’s efforts of creating and maintaining affordable housing at this time. To this point the City has made considerable progress in creating both affordable rental and homeownership opportunities. The City’s Residential Rehabilitation Program represents the City’s only program to provide assistance to existing homeowners and rental property owners and to support the objective of preserving the existing housing stock within the community. * 1998-99 HOME PROGIt,.,i DECEMBER 11,1997 PAGE 4 The Residential Rehabilitation Program will preserve the integrity of housing within the community and provide a safe and sanitary living environment for its occupants. Additionally, the residential rehabilitation is consistent with the City’s affordable housing policies and priorities and staff believes that the Rehabilitation Program is deserving of City financial assistance. Staff is recommending that the City of Carlsbad’s Residential Rehabilitation Program receive the full $197,276 available in 1998-99 HOME funds. The Housing Commission is being requested to approve a recommendation of project funding allocations for the City’s 1998-99 HOME Program. m. EXHIBITS 1. Housing Commission Resolution No. 97-014 2. 1998-99 CDBGMOME Consolidated Funding Plan Strategy 3. HOME Funding Project Proposal and Evaluation EB/ar + 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 HOUSING COMMISSION RESOLUTION NO. 97-014 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA RECOMMENDING SPECIFIC PROJECTS FOR PROGRAM FUNDING UNDER THE 1998-99 HOME INVESTMENT PARTNERSHIP WHEREAS, the Housing Commission of the City of Carlsbad, California accepted public comments on the needs of low and moderate income persons and the proposal submitted for funding consideration under the 1998-99 HOME Investment Partnership Program; WHEREAS, the Housing Commission recommends the City of Carlsbad's Residential Rehabilitation Program for 1998-99 HOME funds; and, WHEREAS, the Housing Commission has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED as follows: 1. That the above recitations are true and correct. 2. That the City of Carlsbad Residential Rehabilitation Program is hereby recommended at the indicated funding level for inclusion in the City of Carlsbad's Consolidated Funding Plan for the 1998-99 HOME Investment Partnership Program. 3. That the Housing and Redevelopment Director is hereby recommended to submit the required application documents, to include the Annual Consolidated Funding Plan, to the U.S. Department of Housing and Urban Development. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California held on the 1 Ith day of December, 1997, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: MICHAEL SCHLEHUBER, Chairperson DEBORAH K. FOUNTAIN Acting Housing and Redevelopment Director HC RES0 NO. 97- 014 I EXHIBIT 2 SAN DIEGO URBAN COUNTY HOME INVESTMENT PARTNERSHIP PROGRAM STRATEGY 1998-99 The City of Carlsbad, as member of the Son Diego Urban County HOME Consortium, will allocate its HOME Investment Padnership funds to implement the following activities directly, through local housing authorities, or for-profit or non-profit organizations: Housing AcquisitionlRehabilitation Housing Rehabilitation Home Buyer Assistance @' Housing ConStWCtiOn Administration/Planning Rental Assistance/ Security Deposits 1 . Housina Acauisition/Rehabilitation HOME funds may be used for acquisition of existing housing units with or without rehabilitation for IOwer-inCOme persons and special needs groups. 2. Housina Rehabilitation HOME funds may be used for housing rehabilitation costs incurred separately or in connection with the acquisition of existing housing for lower-income persons and special needs groups. 3. Housina Construction HOME funds may be used for all eligible costs of housing constrktion for lower- income persons and special needs groups, where the existing housing stock is not appropriate for the development of affordable housing. 4. Rental Assistance HOME funds may be used for tenant based rental assistance, related residential security deposit assistance programs, and other eligible related costs. 5. Home Buyer Assistance HOME funds may be used for home buyer assistance programs for lower income persons. Such programs may include, but are not limited to, downpayment and closing cost assistance. direct loan to the home buyer, interest subsidy to the lender, or "gap" financing. 6. Administration/Plannin9 A portion of HOME funding may be used for eligible HOME administration and planning costs, including direct administrative and overhead costs, public information, fair housing. and program development costs. Word:\Fund Strategy 40fG 7. NOFA Process a. The City's portion Of HOME funds will be awarded to eligible housing activities implemented by the City or by for profit or non-profit organizations on behalf of the City. Staff Of the Housing and Redevelopment Department shall evaluate and determine those eligible housing activities to be considered for funding under the HOME Program based upon the housing need priorities established in the City's General Plan Housing Element and the Consolidated Plan. Staff will present to the Housing Commission for funding consideration those eligible housing activities which best meet the housing need priorities of the City. The Housing Commission's funding recommendation will then be presented to the City Council for consideration and final approval. Additionally, the Urban County HOME funding program will be implemented through twice yearly Notices of Funding Availability (NOFA'S). Leveraae In so far as possible, HOME funds will be leveraged with other public and private funding sources to enhance program productivity. 9. Area of Activifv HOME funds may be used for housing activities implemented within the City of Carls bad. Word:\Fund Strategy 5Of6 c SAN DIEGO COUNTY CONSORTIUM HOME PARTNERSHIP PROGRAM PRELIMINARY STRATEGY ALLOCATIONS 1 990-99 Particbatincr Jurisdictions Amount r%l Carlsbad 197,276 Encinitas 1 77,9 13 La Mesa 172,020 Santee 1 6 1,076 Vista 247,787 Urban County 1,850,128 TOTAL $2,806,200 Word:\Fund Stntcgy 60f6 City of Carlsbad 1998-99 CDBGIHOME funding Application Page 2 - EXHIBIT 3 CITY OF CARLSBAD COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM FUNDING PROPOSAL APPLICATION 1998-99 The following information must be completed by each person/agency/organization interested in being considered for CDBG/HOME funding. All information requested must be provided or the application will be considered incomplete and will not be further evaluated for funding consideration. Please type or print clearly. Attach additional sheets or information as necessary. The application must not exceed a total of fifteen (15) pages, including the required attachments as listed in the Checklist of Required Documents. ADMINISTRATING AGENCY Name of Agency: Address: CitV of Carlsbad 2965 Roosevelt Street, Suite 6 Carlsbad CA 92008 Federal Tax ID Number: PROPOSED PROGRAM/PROJECT Title of Program/Project: Location of Program/Project: City Wide Carlsbad Residential Rehabilitation Proaram Contact Person: Leilani Hines Telephone No.: 1 760 I 434-2818 Requested Funding Amount: $ 197,276 Brief Description of Program/Project (Describe the work to be performed, including the activities to be undertaken or the services to be provided, the goals and objectives of the program/project, etc.): Rehabilitation of existing rental housing and owner occupied single family homes. Funds will be used for loans and/or grants to qualifying single family home owners or rental property owners and for the County of San Diego's costs to administer the program. All housing to be rehabilitated must be occupied by lower income households. Loans will be interest free, with payment deferred to change in title of the property. I. ORGANIZATIONAL ABILITY/CAPACITY A. This agency is: Non-profit For-profit a Local public agency 0 State public agency 0 Other (Please specify.) 8. What is the purpose/mission of the agency? The Housing and Redevelopment Department is dedicated to: 1) Enriching and revitalizing the redevelopment area for the benefit and enjoyment o f the entire community, and 2) Providing affordable housing city wide for all economic segments of the population. C. How long has this agency been in operation? Please include the date of (Word:\APPLlCATION) Revised: I 1/5/97 - City of Carlsbad 1998-99 CDBG/HOME Funding Application . Page 3 incorpora tion? City incorporated in 1952. D. How long has this agency been providing the proposed program/project? Carlsbad's Residential Rehabilitation Program, administered by the County of San Diego, has been available since 1993. The county has been operating a Residential Rehabilitation Programs for the unincorporated areas of San Diego County and on behalf of other jurisdictions since 1978. Prior to the City of Carlsbad becoming a CDBG Entitlement community, the County of San Diego did offer a residential rehabilitation program for Carlsbad residents under the Urban County program. E. Please submit an organizational chart for the agency as Attachment A. F. Please describe the agency's existing staff positions directly responsible for the proposed programlproject and their qualifications and experience in implementing such a program/project. (Resumes may also be submitted as Attachment B but not in lieu of a complete response.) Please see Attached. G. Please indicate your agency's level of experience with the CDBG/HOME program CDBG/HOME moaram: 0 0 0 El No or little experience, up to 1 year of using CDBG/HOME funds. Some experience, 2 to 3 years of using CDBG/HOME funds. Moderate experience, 4 to 5 years of using CDBG/HOME funds. Considerable experience, more than 5 years of using CDBG/HOME funds. H. If you have received federal funds, including CDBG/HOME funds, in previous years, have program violation findings ever been made against your agency/organization? @I No 0 Yes If yes, please explain nature of finding(s) and how finding(s) has been addressed by your organization. II. FINANCIAL CAPACITY/STABILITY A. Please submit the proposed budget for the program/project, itemizing revenues and expenses, to this application as Attachment C. Indicate how the requested CDBG/HOME funds would relate to the overall proposed budget. B. Did you receive any of the following sources of funding from the City of Carlsbad within the last two years (1996-97 and 1997-98) for the proposed program/project? Sources of Fundinq CDBG Community Activities (General Fund monies) - No - Yes 0 El 0 0 (Word:\APPLICATION) Revised: 11/5/97 . 3 City of Carlsbad 'Page 4 1998-99 CDBG/HOME Funding Application If yes, please indicate amount and status of previously awarded funds (fully expended, funds remaining, program/project discontinued). Amount Received Status $84,474 - CDBG $1 80,682 - HOME CDBG/HOME funds Funds to be used strictly for administrative costs. $60,758.19 Expended Community Activities B. Did you receive any federal funds, including CDBG/HOME funding from other cities, last year (July 1997 - June 1998)? a No El Yes (Please list funds below.) Proaram Source Amount Received $ $ $ C. Will additional CDBG/HOME funds be required in future years for the project? 0 No Yes 111. BENEFITS & BENEFICIARIES A. How accessible or convenient is the proposed program/project to Carlsbad residents? (Please be specific such as direct services to client's home, transportation provided to and from facility, or relation to public transportation.) Program offers funds to rehabilitate housing located only in Carlsbad. B. What is the approximate percentage of your clients that have annual family incomes in each of the following ranges: (Percentages should add to 100%; Please see the 1997-98 Income Limits for the CDBG/HOME Program) % of clients are at 30 percent or below of the area median income % of clients are between 31 and 50 percent of the area median income % of clients are between 51 and 80 percent of the area median income % of clients are above 80 percent of the area median income 40 60 C. Please describe how low and moderate income persons will benefit from the proposed program/project. Include the need or problem to be addressed in relation to Consolidated Plan housing and community development priorities, as well as the population to be served or the area to be benefited. (See Consolidated Plan Priorities) The rehabilitation of housing occupied or to be occupied by lower income households will assist in the preservation and maintenance of the City's affordable housing stock. Additionally, the rehabilitation of housing will further protect the health and safety of the occupant by correcting deficiencies in the residential unit. D. Please indicate the number of clients, by households or individuals, benefiting from the proposed activity and the percentage that are Carlsbad residents. (Word:\APPLICATION) Re vised.' I 1/5/97 - City of Carlsbad 1998-99 CDBG/HOME Funding Application . Page 5 Households or Persons of which 100% are Carlsbad residents E. Does your agency focus its activities on populations with special needs? 0- NO Yes 1 Please specify) Please specify which special needs populations. (Homeless individualslfamilies, Persons with disabilities, Persons with substance abuse problems, Veterans, Farm workers & day laborers, Elderly, Children, etc.) The rehabilitation of rental housing will include an assessment of accessibilityladaptability improvements needed. The Program also offers a grant of $1,000 to single family home owners for accessibility and adaptability improvements. IV. IMPLEMENTATION OF ACTIVITY A. Please submit a schedule for implementation of the proposed construction, rehabilitation, property acquisition, other construction related or new public/community service programlproject as Attachment D. The agency must ensure the expenditure of all CDBGIHOME funds awarded within the program year. Program already in place and in operation since 1993. I, the undersigned, do hereby attest that the above information is true and correct to the best of my knowledge. Manaaement Analyst 1 1/03/97 Signature Title Date Date Received: 1 1/03/97 Date Reviewed: 1 1 103197 Staff Person Completing Review: Leilani Hines National Objective: Local Objective: Eligibility Determination: nla Housina Acauisition andlor Rehabilitation of Housina (Word:\APPLICATIONJ Re vised I 1/5/97 P CITY OF CARLSBAD HOME PROGRAM PROGRAM/PROJECT EVALUATION Name of Organization 8, Project: Project Location: Citv wide Citv of Carlsbad Admin: 2965 Roosevelt Street, Suite B Carlsbad CA 92008 Service Provided/Benefit to Carlsbad Residents: Residential Rehabilitation Type of Activity: Local Objective: n/a Loans and arants for residential rehabilitation National Objective: n/a Amount of Funding Request: $1 97,276 I. 0 R G A N IZ AT10 N A L AB I LlTY IC A PAC ITY hlax. of 30 ~ointsl: A. General Experience of Organization - How much general experience does the organization have in providing services to low and moderate income persons? fie., length of time the oruankation has been in operation) 0 1 2 3 4 5 5 No Considerable Score Experience Experience COMMENTS: B. Experience in Implementation of Program/Project - How much experience does the organization have in providing the specific program/project proposed for funding? fie., length of time the actual prouram/Droiect has been operated by the orgunkation) 0 1 2 3 4 5 5 No Considerable Score Experience Experience COMMENTS: C. Staffing for Program/Project - How qualified is the identified staff in performing the various functions required to implement the proposed program/project? fie., years of staff experience, education and training) 0 1 2 3 4 5 5 Not Qualified More than Score Qualified Qualified COMMENTS: L t HOME Program Evaluation Form - Page 3 D. Experience with Federal or State Funding Sources - How much experience does the organization have in administering HOME and/or other State or Federal funds? fie., length of time the organization/assigned staff has been admhistering such funds) 0 No 1 2 3 4 5 5 Considerable Score Experience Experience COMMENTS: E. Performance record - What overall level of ability has the organization demonstrated for providing services to the public, as well as adhering to local, State and/or Federal regulations which may have applied to the various funding sources for their previous programs/projects? fie., number of clients benefiting from program/project, any violations of the regulations, abilify to clear violation findings) 0 1 No Ability 2 3 4 5 4 Strong Ability Score COMMENTS: Slow oroaress due to inconsistent fundina availabilitv and luke warm interest and resoonse of aualifvina DroDertv owners. II. FINANCIAL CAPACITY & STABILITY /Max. of 15foints) A. Leverage of Funds - What level of leveraging of HOME funds with other funding sources has been proposed for the proposed program/project or demonstrated in the current operating budget for the program/project? Measurement fiamples: Adequate leveraging = Considerable leveraging = No Leveraging - - Proposed program/project will be funded entirely with HOME funds 30% of the revenues used for the proposed program/project will be from HOME funds Less than 5% of the revenues used for the proposed programproject will be from HOME funds. 0 12 3 4 5 6 7 8 9 101112131415 3 No or Little Adequate Considerable Score Leveraging Leveraging Leveraging COMMENTS: the orooertv owner is able to orovide. Some leveraaina with the below market interest rate loans and resources B. Financial Stability - Do the financial statements of the organization indicate a relatively stable financial position? fie., diversified funding revenues and suppod, revenue exceeding expenses, fund balance) Measurement fiamples: Considerable Stability = No/Little Stability - - Very few sources of funding fHOMEJ and few, if any, assets. A wide variety of funding sources andsubstantiat assets. 0 1 2 3 4 5 3 No or Little Considerable Score Stability Stability COMMENTS: No other fundina sources available. Citv & Countv stable. - - ,- HOMEProgram Evaluation Form Page 4 - 111. BENEFITS & BENEFICIARIES /Max. of 5O~olntsl: A. Access to Program/Service - Is the proposed program/project easily accessible or convenient to Carlsbad residents? Measurement &amp fes: Not or Not Very Accessible = Service office located outside of Carisbad and public lransportation is not accessible. difectly to clienfs residence. - Very Accessible - Service office located within Carisbad or pro vides se/vices/transportation 0 1 23 4 5 6789 10 7 Not Accessible Very Score Accessible Accessible COMMENTS: County offices in San Dieao. Info adhered bv Dhone or mail. Housina to be rehabilitated located in Carlsbad. B. Benefit to Lower Income Persons - To what extent does the proposed program/project benefit low income persons? Measurement fiamples: No or Little Benefit Some Benefit Moderate Benefit Considerable Benefit - - - - Less than 10% of clients are of low income f50% of MH). I I to 50% of clients are of low income (50% of MFf). 51 to 90% of clients are of low income (50% of MFf). More than 90% of clients are of low income f50% of MFfJ. - - - - 0 12 3 4 5 6 7 8 9 1011 12131415 7 No or Little Some Moderate Considerable Score Benefit Benefit Benefit Benefit COMMENTS: 40% of clients at 50% of MFI C. Benefit to Carlsbad Residents - To what extent does the proposed program/project benefit low income Carlsbad residents? Measurement fiamples: No or Littfe Benefit - Considerabfe Benefit - - - Serves very few Carisbad residents annually and/or faciWy located outside of Carisbad facility located in Carisbad Serves a considerabfe number of Carisbad residents annually and/or 0 12 3 4 5 6 7 8 9 101112131415 10 No or Little Some Moderate Considerable Score Benefit Benefit Benefit Benefit COMMENTS: D. Needs of Low Income Residents - To what extent does the proposed program/project meet the needs of low-income residents? fie., refation to Consolidated Plan pnorfties, special needs population served) Measurement Examp fes: Not Adequate - Meets no pnonyized need of the Consolidated Plan. Serves no special Adequate - - Meets a medium pnority need of the Consolidated Plan. Serves special - needs populations. needs popufations. - Q c HOMEProgram Evaluation Form Page 5 More than I 0 - - Meets a high prionifyneed o ?equate 1 23 4 5 67 Not Adequate Adequate the Consolidated Plan 89 10 6 More than Score Adequate COMMENTS: Meets a medium priority. Serves elderly and disabled. IV. IMPLEMENTATION OF PROJECT/PROGRAM /Max. of Soointsl: A. Implementation/Expenditure of Funds - To what degree has the organization demonstrated a readiness to implement the proposed program/project and expend the HOME funds within the one year period? fie., program/project k in planning stage onlv, identification and/or commitment of other funding sources for completion of program/projec t, program/projec t already in operation or started) Measurement Evamples: No or Little - - Program/project in development stage only. No specific site selected No High - Pubftc/community service program operating at feast three years. Construction construction or construction related plans completed. work ready to begin by July Ist. Propedy to be in escrow by Jufy 1st. - 0 1 2 3 4 5 5 No or Little Degree High Degree Score of Readiness of Readiness COMMENTS: Alreadv in or>eration. TOTAL POINTS RECEIVED (Maximum of 100 Points Possiblej: 65 SCORE EVALUATEJRM Revised: November 5, 1997