HomeMy WebLinkAbout1994-02-08; City Council; Resolution 94-450 0
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CITY COUNCIL RESOLUTION NO. 9 4 - 4 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A RESIDENTIAL REHABILITATION PROGRAM
FOR SINGLE FAMILY DWELLINGS, INCLUDING MOBILE HOMES, AND
RECOMMENDING APPROVAL OF AN AGREEMENT FOR THE
ADMINISTRATION OF SUCHPROGRAM BY THE HOUSING AUTHORITY OF
THE COUNTY OF SAN DIEGO
WHEREAS, the City Council held a public hearing on May 24, 1988 and
approved establishment of a Carlsbad residential rehabilitation program to be funded with
$90,000 in federal Community Development Block Grant (CDBG) Entitlement funding;
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 Housing Authority of the County of San Diego has the
expertise, staff and resources to enable it to implement and administer all aspects of a residential
rehabilitation program;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of
the City of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The City Council hereby recommends approval of residential rehabilitation
loadgrant programs for lower-income owners and occupants of single family
homes or mobile home units.
3. The City Council hereby recommends approval of an agreement with the
Housing Authority of the County of San Diego, a copy of which is attached as
EXHIBIT "A" and incorporated herein by reference, to implement and administer
the residential rehabilitation loadgrant programs for the period beginning
~ February 1, 1994 to September 30, 1994.
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PASSED, APPROVED AND ADOPTED by the City Council of the City of
Carlsbad, California, on the 8th day of FEBRUARY , 1994, by the following
vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Cler
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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 Obligations:
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-I 02: "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 bel,ow 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.
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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 dwelling 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. Tarqet Areas:
For the purpose of this Agreement, the term "target area" shall refer to any location within the
City limits of Carlsbad (for all utilized funds), with specific emphasis within Census Tract
179.00.
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.
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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. Program 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 prior 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.
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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. Disposition 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.
E. 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. Eligibilitv 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.
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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. Eclual Opportunity:
In accordance with Tit'le VI of the Civil Rights Act of 1964; Title Vlll of the Civil Rights Act of
1968; Executive Order 11 246 as amended by.Executive Order 11 375 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 Workplace:
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)).
15. Lead-Based Paint Poisoning Notification' Requirements:
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.
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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 approvec
by the City prior to execution of any required contract/agreement. The Authority is also herebb
authorized to administer special accounting procedures as deemed appropriate to comply witk.
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 Aqreement:
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.
ATTEST: & J"
clrt' CL&K
HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO,
BY Deputy Secretary
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