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HomeMy WebLinkAbout1994-01-13; Housing Commission; ; AGREEMENT FOR RESIDENTIAL REHABILITATION PROGRAM BETWEEN THE CITY OF CARLSBAD AND THE COUNTY OF SAN DIEGONB-ITEM 4 DATE: TO: FROM: SUBJECT: STAFF PERSON: LElLANl HINES STAFF REPORT JANUARY 13, 1994 HOUSING COMMISSION HOUSING AND REDEVELOPMENT DEPARTMENT AGREEMENT FOR RESIDENTIAL REHABILITATION PROGRAM BETWEEN THE CITY OF CARLSBAD AND THE COUNTY OF SAN DIEGO: Request for approval of a recommendation to approve an agreement between the City of Carlsbad and the County of San Diego for the administration of Carlsbad's residential rehabilitation program. 1. RECOMMENDATION ADOPT Housing Commission Resolution No. 94-004 recommending to the City Council APPROVAL of a residential rehabilitation program for property owners of single-family dwellings and mobile home units within the City of Carlsbad and to execute an agreement between the City of Carlsbad and the County of San Diego for the administration of such residential rehabilitation program. II. BACKGROUND On May 24, 1988, the Carlsbad City Council approved establishment of a residential rehabilitation program to be funded with $90,000 in federal Community Development Block Grant (CDBG) Entitlement funding. Under the residential rehabilitation program, loans and grants would be provided to low or moderate-income persons throughout the City to assist in the rehabilitation of owner-occupied single family homes or mobile home. Consistent with the residential rehabilitation program selected for CDBG funding, staff recommends that the City offer the following four residential rehabilitation loadgrant programs to eligible property owners within target areas: 0 Interest Subsidy Loan; 0 Deferred Loan; 0 Elderly/Handicapped Grant; and 0 Weatherization Grant. A summary of the above residential rehabilitation loadgrant programs are attached. Eligible participants for these rehabilitation loadgrant programs will be limited to owner occupants of single family dwellings or mobile homes with a gross household income less than 80 percent of the San Diego County median income (low-income households). Although the program will be open to all eligible resident property owners city-wide efforts will target single family homes located in Census Tract 179.00 which includes the Barrio area. This census tract represents the highest concentration of lower- income households in Carlsbad. At this time staff is recommending that the City enter into the attached agreement with the Housing Authority of the County of San Diego to implement and administer the proposed residential rehabilitation loadgrant programs for the period beginning February 1, 1994 to September 30, 1994. The County of San Diego has previously conducted a residential rehabilitation program for Carlsbad residents under the Urban County CDBG Program. In addition, the County has trained staff to conduct all aspects of implementation and administration of such a rehabilitation program, including eligibility determination, inspections, bidding process, repair estimates, contractor monitoring and payments. Staff has been discussing the proposed residential rehabilitation programs and the agreement between the City and the County for the administration of such program over the past year. Both City staff and the County Housing Authority have agreed to the terms of the attached agreement. 111. ANALYSIS The City Council previously approved $90,000 allocated from the federal CDBG Entitlement Program for the purpose of providing a residential rehabilitation program for lower and moderate-income homeowners within Carlsbad. To date, these allocated CDBG funds have not yet been utilized and the U.S. Department of Housing and Urban Development (HUD) has identified the residential rehabilitation program as a slow moving project. Staff is recommending the approval of the above four residential rehabilitation loadgrant programs for lower-income owners and occupants of single family homes or mobile home units. The establishment of a residential rehabilitation program is consistent with the policies, programs, and strategies regarding housing for lower- income households outlined in the Housing Element of the Carlsbad General Plan and the Carlsbad Comprehensive Housing Affordability Strategy (CHAS). Residential rehabilitation loadgrant programs would enable eligible Carlsbad homeowners to physically maintain or improve their homes and enable them to live in decent, safe and sanitary housing. RES I D E NT I A L REHAB I L I TAT1 0 N PRO G RAM JANUARY 13, 1994 PAGE 3 Staff is further recommending the approval of an agreement between the City and the Housing Authority of the County of San Diego for the implementation of such programs. By contracting with the County Housing Authority, several issues regarding the CDBG funded residential rehabilitation program would be resolved: 1 ) CDBG expenditure time lines, 2) benefit to those persons who have already expressed an interest in rehabilitating their homes, and 3) no program development delays. The full cost of all services incurred during the administration of the residential rehabilitation program by the County Housing Authority would be reimbursed by the City, pursuant to Board of Supervisor's Policy 8-29 "Fees, Grants, Revenue Contracts - Department Responsibility for Cost Recovery". While staff would like to recommend limiting the reimbursement of administration costs and recommend not entering into an agreement that leaves such costs to the City open ended, the County Housing Authority requires full cost recovery and there are great benefits to establishing a residential rehabilitation program and having the County Housing Authority administer such a program. Upon expiration of the proposed agreement, the City would have the opportunity to evaluate the residential rehabilitation programs and the administration of these programs by the County Housing Authority. At that time, the City may elect to extend the agreement with the County or examine other alternatives. IV . FISCAL IMPACT No fiscal impact on the General Fund. The Carlsbad Residential Rehabilitation Program will be funded through the federal CDBG program. ATTACHMENTS 1. Housing Commission Resolution No. 94-004. 2. Summary of Proposed Residential Rehabilitation LoadGrant Programs. 3. Agreement for a Residential Rehabilitation Program between the City of Carlsbad and the Housing Authority of the County of San Diego. COUNTY OF SAN DIEGO HOUSING AUTHORITY RESIDENTIAL REHABILITATION LOAN/GRANT PROGRAM ON BEHALF OF THE CITY OF CARLSBAD The San Diego County Housing Authority offers a variety of loans and grants to eligible owner- occupants of single family dwellings or mobile homes for home improvements. Applicants must meet income eligibility requirements and live in the City of Carlsbad. The following loans and grants are available: A. Interest Subsidy Loan - Interest Subsidy Loans are made in conjunction with a financial institution, which provides below market interest rate loans. The Housing Authority pays a maximum of 7 percent of the current interest rate and the homeowner pays the balance. Applicant’s income must be at or below 80 percent of the median income for the County of San Diego. The maximum amount available is determined by the rehabilitation needs of the property and the owner’s ability to repay the loan. B. Deferred Loan - If the homeowner is not able to obtain an interest subsidy loan under the program guidelines, then the homeowner may apply for a deferred payment loan. There is no interest on this loan. The total amount borrowed must be repaid upon sale, transfer or change in title of the property. Owners may borrow up to $20,000 for a single family dwellings or $5,000 for mobile homes. Household income must be at or below 80 percent of the median income for San Diego County. C. Elderlv/Handicatmed Grant - The homeowner must be either age 62 or older or handicapped. Up to $1,OOO can be given with no payback requirement for those who meet the above criteria and the income limits for their household size. Household income must be at or below 80 percent of the median income for San Diego County. All grants awarded shall be used for rehabilitation activities that maintain and promote the health and safety of the owner occupant, particularly the removal of architectural barriers to the access and use of the dwelling unit by an elderly or disabled occupant. D. Weatherization Grant - Up to $1 ,OOO can be given for weatherization items only with no payback requirement to eligible owner occupants. Household income must be at or below 80 percent of the median income for San Diego County. Median Income by Household Size: 1 2 3 4 5 6 80 % $24 , 600 28,100 3 1,600 35 , 100 37,950 40,750 If you are interested or have any further questions, please call now at 694-4823. Revised: 01/05/94 AGREEMENT FOR RESIDENTIAL REHABILITATION PROGRAM BETWEEN THE CITY OF CARLSBAD AND THE HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO THIS AGREEMENT is made and entered into this day of 1994, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as "City", and the HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO, a public corporation created pursuant to the Housing Authority law of the State of California, hereinafter referred to as "Authority"; WHEREAS, there exists a need within the City of Carlsbad to assist property owners with rehabilitation of their single-family dwellings and mobile home units; and WHEREAS, the City Council believes it to be in the best interest of the citizens of Carlsbad to provide an agency to administer a residential rehabilitation program for eligible property owners; and WHEREAS, the Authority has the expertise, staff and resources to enable it to implement and administer a residential rehabilitation program. NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties hereto as follows: 1. Grant Obliqations: The Authority shall implement and administer a Residential Rehabilitation Loan Program fully in accordance with the terms of the City's Community Development Block Grant Application, other rehabilitation grant applications and agreements and assurances made by the City to the United States Department of Housing and Urban Development, hereinafter referred to as HUD or other grantors for funds to carry out said loan programs. The Authority also agrees that it undertakes, hereby, the same obligations to the City that the City has undertaken to HUD or other grantors pursuant to said applications and assurances, specifically including compliance with OMB Circular A-102: "Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments". Reference is particularly made to Appendix G, relating to financial management systems and Appendix 0, relating to procurement standards. 2. Services to be Drovided: For the period commencing February 1, 1994 and expiring September 30, 1994 or until all funds allocated or received during the year are expended, whichever comes last, the Authority agrees to provide the following services for the City: A. Implement and administer an Owner Occupant Interest Subsidy Loan Program: Within the target areas specified in Provision 3, the Authority shall provide a program for a private lending institution to make below market interest rate loans to eligible participants. The lending institution shall supply the full loan amount and the City shall provide a prepaid portion of the interest. The prepaid portion of interest shall be an amount which will (1) not reduce the interest rate to participants to less than 5 percent per annum, or (2) result in a subsidy payment of more than 7 percentage points. The maximum amount available shall be determined by the rehabilitation needs of the property and the owner's ability to repay the loan. Eligible participants for this loan shall be limited to those owner occupants of single family dwellings or mobile homes, whose gross household income is less than 80 percent of the San Diego County median income adjusted for larger or smaller household size. Such income limits shall be based on data published or revised by HUD. B. Implement and administer a Residential Rehabilitation Deferred Loan Program: Within the target areas specified in Provision 3, the Authority shall provide a program to make non-interest bearing deferred loans to eligible participants unable to qualify for the Interest Subsidy Loan Program. The principal amount of the deferred loans shall be repaid upon sale, transfer or change in the title to the property. All deferred loans will be secured by a Trust Deed and Promissory Note for a single family dwelling or a junior lien for a mobile home taken by the Authority on behalf of the City. All proceeds from the repayment of these loans will be made to the Authority and deposited into a reserve account for continued operation of the program by the Authority. The maximum loan amount for any single deferred loan shall be $20,000 for a single family dwetling or $5,000 for a mobile home. Eligible participants shall be limited to those owner occupants whose gross household income is less than 80 percent of the San Diego County median income adjusted for larger or smaller household size. Such income limits shall be based on data published or revised by HUD. C. Implement and administer an Elderly/Disabled Grant Program and Weatherization Grant Program: (1) Within the target areas specified in Provision 3, the Authority shall provide a program to make non-repayable grants to eligible participants. The maximum amount for this type of grant shall be $1,000. Eligible participants for this type of grant shall be limited to owner occupants of single family dwellings or mobile homes, who are elderly (62 or over) or handicapped (as defined by Social Security) and whose gross household income does not exceed 80 percent of the San Diego County median income, adjusted for larger or smaller household size. All grants awarded shall be used on rehabilitation activities related to the maintenance or promotion of the health and safety of the occupants, particularly the elimination of architectural barriers to the access and use of the dwelling unit by elderly or disabled occupants. (2) Within the target areas specified in Provision 3, the Authority shall provide Weatherization Grants to eligible participants. The maximum amount for any single weatherization grant is $1,000. Eligible participants for this Grant shall be limited to owner occupants of single family dwellings or mobile homes whose gross income does not exceed 80% of the San Diego County median income, adjusted for larger or smaller household size. 3. Tarclet Areas: For the purpose of this Agreement, the term "target area" shall refer to any location within the Census Tract 179.00 for all utilized funds, with the exception of mobile homes. For eligible mobile home owners, the term "target area" shall refer to any location within the City limits of Carlsbad. 4. Contract Amount: In consideration for services provided for by this Agreements, the City shall make available a total of $90,000 in funding for fiscal year 1993-1994. Upon written request from the Authority, payment shall be disbursed by the City for individual applicant contracts. The first payment will be made no sooner than February 1, 1994. -2- 5. Reauests for Funds: All requests for funds made under this Agreements shall be in writing. The requests shall include the following information on the eligible recipient of funding. A. Name, address, and assessor's parcel number. B. Family income amount. C. Family size. D. Type and amount of all current trust deeds on property to be rehabilitated. E. Type and amount of assistance. F. Description of work to be completed with requested funds. G. Copy of approved environmental report on property. 6. Pronram Income: All interest earned on CDBG funds advanced to the Authority, by the City, and all proceeds from reconveyed loans, received by the Authority during the term of this Agreement, shall be retained by the Authority. The funds received as interest income or reconveyed loans shall be used by the Authority to further fund eligible projects as identified in this Agreement. The program income shall be used by the Authority to fund eligible Residential Rehabilitation Projects to requesting additional funds for the City. Upon expiration of this Agreement, all additional funds received by the Authority as interest income or loan reconveyances shall be returned promptly to the City. Upon receipt of interest earned on funds advanced to the Authority under this Agreement or proceeds from loan reconveyances, the Authority shall immediately notify the City, in writing, of the type and amount of program income for accounting purposes. In addition, the Authority shall provide the City with the name of the person repaying the loan and the year in which the loan was originally made to the participant. 7. Administrative Costs: The Authority shall be entitled to reimbursement for allowable costs, pursuant to Board of Supervisor's Policy b-29 "Fees, Grants, Revenue Contracts - Department Responsibility for Cost Recovery", incurred during administration of the Carlsbad Residential Rehabilitation Program, or other programs authorized and implemented for the City. Administrative costs may include salaries, services, supplies and any miscellaneous expenses, which are applicable to the program. 8. Records: The Authority shall maintain all appropriate records for the Residential Rehabilitation Program and make them available for review by City or Federal staff upon request. On a quarterly basis, the Authority shall submit a progress report to the City. The report shall include the following: A. Name and address of fund recipient. B. Age of recipient. -3- C. Family size. D. Race of recipient. E. Household income. F. Type of funding. G. Gender of recipient. H. Amount of Funding. I. Date funds requested from City. J. Date funds released to recipient. The City will provide the Authority with a Residential Rehabilitation Program Report form for use in submitting the quarterly reports. The reports will be due on April 1, July 1, and October 1 of 1994. The Authority shall also submit quarterly reports on administrative costs to date. The administrative reports shall include information on the status of funds on hand, amount of drawdowns from the City, loan repayments and percentage of administrative costs incurred as compared to total program costs. The Authority shall maintain a separate accounting for the City's Rehabilitation Program. The City, the Federal Grantor Agency, the Comptroller General of the United States, or any of their duly authorized representatives shall have access to any books, documents, papers and records of the Authority which directly pertain to the City's Rehabilitation Program for the purpose of audit, examination, excerpts and transcriptions. 9. DisDosition of-Contract Amounts: The City has established the following goals for the Residential Rehabilitation Program for the term of this Agreement: A. Rehabilitation of Single Family Home - 50 percent of total program funds. B. Rehabilitation of Mobile homes - 30 percent of total program funds. C. Administrative Costs - 20 percent of total program funds. On behalf of the City, the Authority will attempt to complete at least two (2) single-family contracts for loans and/or grants and five (5) mobile home contracts for loans and/or grants by the date of expiration for this Agreement. IO. Elinibilitv Determination: The Authority shall have the discretion to require such documentation as deemed necessary to determine the eligibility of applicants under the loan and grant programs outlined in this Agreement. -4- 11. Allowable Improvements: The Authority shall approve improvements which are allowable and set forth in the guidelines contained in the Residential Rehabilitation Loan Program Operations Manual only. Priorities for rehabilitation activities shall follow those priorities established in the Authority’s Residential Rehabilitation Standards. All exceptions must be approved by the City. 12. Eaual ODDortunity: In accordance with Title VI of the Civil Rights Act of 1964; Title Vlll of the Civil Rights Act of 1968; Executive Order 1 1246 as amended by Executive Order 1 1375 and 12086; and any HUD regulation heretofore issued to implement these authorities relating to Civil Rights, the Authority will not discriminate in provisions of services or employment and will take affirmative action to solicit minority contractors wishing to work in the program. 13. Drun-Free WorkDlace: In accordance with the Drug-Free Workplace Act of 1988, the City has submitted a certification to HUD that a drug-free workplace will be provided for all employees. All subrecipients, including the Grantee, are also encouraged to support the omnibus drug legislation passed by Congress on November 18, 1988 by adopting and enforcing a policy to maintain a drug-free workplace. 14. Clean Air Act: The Authority will comply with all applicable standards, orders, or requirements issued under Section 306 of the Clean Air Act (42 USC 1857(h)). 1 5. Lead-Based Paint Poisoninn Notification Reauirements: In accordance with regulations issued at 24 CFR 51 0, 55, 570 and 590 on February 17, 1987, the Authority will comply with applicable notification, testing and abatement procedures for lead-based paint. The amended regulations extend the construction date for notification from 1950 to 1978. The regulations require that applicants for rehabilitation assistance, tenants in housing being rehabilitated and purchasers of HUD-associated housing be provided with information on the following: A. that the property may contain lead-based paint; B. of the hazards of lead-based paint; C. of the symptoms and treatment of lead-based paint poisoning; D. of the precautions to be taken to avoid lead-based paint poisoning (including maintenance and removal techniques for eliminating such hazards); E. of the advisability and availability of blood lead level screening for children under seven years of age; and F. that in the event lead-based paint is found in the property, appropriate abatement procedures may be undertaken. -5- The "Watch Out for Lead-Based Paint Poisoning" notification containing the above information shall be distributed to all appropriate recipients of funding under the subject programs. The Authority shall retain a copy of the notification provided under this provision in their file for three (3) years. 16. Authorization to Execute Contracts: The Authority is hereby authorized to execute, on behalf of the City, contracts and agreements with property owners for interest subsidy loans, deferred loans and grants. Loans and/or grants in an amount which exceeds the maximum amounts noted in this agreement must be approved by the City prior to execution of any required contract/agreement. The Authority is also hereby authorized to administer special accounting procedures as deemed appropriate to comply with the provisions of this Agreement. 17. Hold Harmless: The Authority agrees to defend, indemnify and hold the City harmless from any and all liability which may arise or allegedly arise from the provision of said services. Should it become necessary for the City to commence suit to enforce any of the terms and conditions of this Agreement, or to defend any action relating to the provisions of these services, the Authority agrees to pay any and all attorney's fees and court costs incurred by the City. 18. Amendments to Agreement: The City and the Authority concur that this Agreement may be amended by the mutual consent of both parties as deemed necessary. Exceptions to provisions of this Agreement may be authorized by the City provided the exceptions are allowable under governing law or regulations. The City and the Authority also agree that in the event any provision of this Agreement is violated by either party, the other retains the right to cancel said Agreement upon thirty (30) days written notice. CITY OF CARLSBAD, a municipal corporation, BY Mayor ATTEST: HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO, Deputy Secretary -6-