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Home My WebLink AboutRDA AG PKT 2008-07-14 #2• AGENDA STAFF REPORT DATE: July 14, 2008 TO: Chairperson and Members of the Redevelopment Agency THRU: David Carmany, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: APPROVE MODIFICATIONS TO HOME IMPROVEMENT PROGRAM TO REVISE MAXIMUM PROJECT FUNDING LEVELS AND ALLOW SPECIFIED PROPERTY SURVEYS AS AN ALLOWABLE PROJECT COST SUMMARY OF REQUEST: Authorize Staff to implement the • and funding levels for individual revised upon Agency directions. recommended revisions to program guidelines projects as proposed and as may be further Receive and File Staff Report. BACKGROUND: March 2006 Revisions to Home Improvement Program Guidelines: In March, 2006 the Redevelopment Agency received a status report on the Housing Rehabilitation Program and approved revisions to program guidelines and funding levels for individual projects as recommended by staff. At that time the Agency authorized the following revisions to the program guidelines to address budget constraints and concentrate on alleviating health, safety and public welfare violations and deficiencies: ^ Change allowable program activities to concentrate on alleviating health, safety, and public welfare violations and deficiencies (any remaining project funds can be used for exterior beautification). ^ Eliminate program activities that address discretionary property maintenance and property improvements. ^ Eliminate programs to fund acquisition of a residence or mobile home/manufactured home until the existing backlog of applications is eliminated. These programs would be reconsidered by the Agency when the backlog is eliminated. Agenda Item 2 Z;\07-14-08 Council Meeting -Agenda Items\RDA -Staff Report - 2 -Housing Assistance - Civicstone.doc\LW\06-30-08 Home Improvement Program Status Report Redevelopment Agency Staff Report July Y4, 2008 ^ Revise the funding levels as follows: • ^ Home Improvement Loan Program: Maximum deferred loan amount of $15,000.00. If property is sold to qualified buyer, that buyer will assume repayment terms. If property is sold to anon-qualified buyer within first 10 years, full principal amount plus 2% interest due upon sale. If property is sold to anon-qualified buyer in years 10-20, 1/10th of principal and interest forgiven for each year after 10th year. Upon sale of property the pro-rated amount of principal and interest is due. Principal and interest completely forgiven on 20-year loan anniversary. ^ Home Improvement Grant Program: Maximum grant amount of $10,000.00. Grant forgiven after 3 years. Resale restriction during first three years: if property is sold to anon-qualified purchaser, the grant amount is paid to the Agency out of the sale proceeds. The major change in the actions described above was to reduce the "Home Improvement Loan Program" maximum funding amount from a previous amount of $50,000 to the current maximum funding amount of $15,000 and the concentration on alleviating health, safety, and public welfare violations and deficiencies. Home Improvement Program Summary -Through May 2008: Provided below is a summa of the r • ry cur ent status of the program, including both Mortgage Assistance and Home Improvement program components: Program Number of Funding Amount Projects Funded Mortgage Assistance Program 3 $ 84,800 Home Improvement Program Loans 42 $ 1,350,000 Home Improvement Program Grants 49 $ 487,000 Total 94 $1,921,800 Current Financial Status of Home Improvement Program Funds: Funding for this program comes from the "Riverfront Redevelopment Project Area Low and Moderate Income Housing Fund' and can only be spent on activities that protect and preserve existing low- and moderate-income housing units within the City. Provided below is the estimated undesignated fund balance summary as provided by the Finance Department on June 30, 2008 for the Low/Moderate Housing Program for Fiscal Year 2008-2009: • RDA -Staff Report - 2 -Housing Assistance - Civicstone 2 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 Estimated Undesignated Fund Balance - Low/Moderate Housing Program Fund Source Undesignated Fund Balance, July 1, 2008 Low Mod Funds Received Interest Received Subtotal -Undesignated Funds Rental Assistance Obligated F~cpenditures* Subtotal -Expenditures Total Available Funds Amount $1,541,300 $ 331,000 $ 45,000 $1,917,300 $ 120,000 $ 294,500 $ 414,500 1 502 800 * Obligated Expenditures includes expenditures for loan projects that have been obligated but not completed • The "Rental Assistance° amount of $120,000 is a continuing obligation of the Agency and is the maximum amount to be reserved for the purpose of offsetting the monthly rent increases for low-and moderate income families that were necessary to maintain the required debt coverage requirements of the issuance of a revenue bond by the Agency in December 2000 to convert the Seal Beach Trailer Park to ownership by anon-profit housing corporation. As indicated above, the funds available have increased to the extent that staff is now recommending program modifications to increase the "Home Improvement Loan Program" maximum funding amount from the current amount of $15,000 to a proposed amount of $25,000 and to also allow use of the funds for assistance in the acquisition of a mobile/manufactured home. Staff continues to believe that the program funds should still concentrate on alleviating health, safety, and public welfare violations and deficiencies, and is recommending no changes to this aspect of the program guidelines. Detailed information on the above discussed recommendations is provided below. Proposed Increase in "Home Improvement Loan Program" Maximum Funding Amount: Based on the funds now available for use in the implementation of the Home Improvement Program, and the current list of interested participants in the program, staff has re-evaluated the current program guidelines and feels that it is now appropriate to modify the maximum funding levels for the "Home Improvement Loan Program" offered by the Redevelopment Agency. Over the course of the last year CivicStone has continued to work with homeowners who were previously approved. However, a hold was placed on • any new applicants until such time that the existing participants were closer to completion. Program Status Report 4.RDA Staff Report 3 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 Any new homeowners interested in the Home Im rovemen • p t Program were placed on a contact list so that a new round of applicants could be started in July 2008. There are currently 11 homeowners on the contact list and many more are expected once it is announced to the community that the Program is open for new applications. The Finance Department estimates that $1,502,800 is available for the Home Improvement Program loans and grants, and related administrative costs. If 20 Program participants were to be funded at the maximum proposed level of $35,000 ($25,000 loan and $10,000 Grant) the Agency would be committing $700,000 for the 2008-2009 fiscal year. There are sufficient funds available to serve that anticipated demand. There has been some interest in replacing some of the severely dilapidated units within the Trailer Park. If any of these units need or want assistance, it will likely require much more funding than even the revised Program provides. CivicStone estimates that between 6 and 10 units need replacement depending upon the level of rehabilitation necessary as defined by Building & Safety and Code Enforcement. Unless the Agency directs otherwise, staff will return at a future meeting with additional information on this issue. • Proposed "Trailer Space Line Surveys" within the "Greenbelt Area" of the Seal Beach Trailer Park: As staff and representatives of CivicStone have continued to work with potential program participants within the Seal Beach Trailer Park, the issue of providing a °Trailer Space Line Survey' within the "Greenbe/f An:a° of the trailer park has become a matter of concern to both potential program participants and staff. The concern is that the Building and Planning Departments of the City must be able to ensure that any new mobilehomes, manufactured homes, or two-story cabana structures meet the minimum required setbacks from "trailer space lines° in accordance with the provisions of Title 25 of the California Administrative Code. The State of California pre-empts local jurisdictions ability to determine development standards within mobilehome and trailer parks within the State pursuant to the provisions of Title 25 of the California Administrative Code, unless certain exemptions have been granted by the State. The Seal Beach Trailer Park was granted a number of special exemptions by the State in the late 1970's to mid 1980's as part of the relocation of the Trailer Park to its current location. An example of those exemptions is regarding the ability to construct 2- story cabanas within the Seal Beach Trailer Park. The City has on file the °Improvement Plan" for the Seal Beach Trailer Park, • dated June 1979. This plan indicates the trailer space lines for all of the spaces Program Status Report 4.RDA Staff Report 4 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • within the park. However, many of the trailer space lines for the spaces within the "greenbelt area" do not have complete trailer space information regarding the length of certain trailer space lines or the bearings of those trailer space lines. Provided as Attachment 1 is a copy of a portion of the "greenbelt area" of the June 1979 Improvement Plan to indicate this situation to the members of the Agency. An additional "As Built" map was provided to the City by the then owner of the Trailer Park in December 1993 and that map is currently utilized by the City to determine the location of the trailer space lines within the Seal Beach Trailer Park. The trailer space line designations between the 2 maps are generally comparable, but there are slight differences. Provided as Attachment 2 is a copy of a portion of the "greenbelt area" of the December 1993 "As Built" map to indicate this situation to the members of the Agency. The entire "greenbelt area" is located between Welcome Lane and Riversea Road. The trailer spaces of most concern to City staff are spaces 74, 86, 98, 101, 103, 105, 107 and 111, since these trailer spaces do not have complete boundary descriptions indicated on either map. The costs of providing a single trailer space line survey to verify the space lines in relation to the required setbacks for either a new mobilehome/manufactured home or to construct a cabana addition onto an existing trailer or mobilehome can be a major deterrent to an interested participant in the program. The costs of • conducting an individual survey can be in the range of $1,000 to $2,500, based on estimates provided by licensed surveyors. Staff has initiated discussion with a local licensed surveyor regarding the costs of a survey that will establish the "trailer space lines" for spaces 74, 86, 98, 101, 103, 105, 107 and 111, since these trailer spaces do not have complete boundary descriptions indicated on either map. A preliminary estimate of between $3,500 and $6,000 has been given. Staff has requested a formal letter proposal to conduct the proposed survey work, and will return at a future Agency meeting to further discuss this matter. The proposed 2008-2009 funding program is proposing to set aside a maximum of $6,000 for this project. If it is determined by the Agency to allow staff to proceed, additional discussions with Seal Beach Affordable Housing Corporation and the impacted residents of the Seal Beach Trailer Park would be necessary to allow the project to proceed. There may also be other situations where a survey may be required to verify compliance with setback standards, either within the Seal Beach Trailer Park or in other areas of the City. In these other cases, the costs of a survey would generally be less, as the tract and parcel maps of the remaining areas of the City provide the needed information for a surveyor to complete a survey. In these other situations, staff recommends that the cost of a survey, if required by the Building or Planning Department, can be included as an eligible project expense, • but that the survey costs, along with the other eligible project improvements to be Progrem Status Report 4.RDA Staff Report 5 Home /mprovemenf Program Status Report Redevelopment Agency Staff Report July 14, 2008 funded, cannot exceed the total funding of $35,000 ($25,000 loan and $10,000 grant). Administrative Costs Incurred to Manage Home Improvement Program and Community Development Block Grant Funds: Since 1998 the Redevelopment Agency has utilized CivicStone to provide homeowner application assistance, loan underwriting, project construction management, and compliance verification for all of the various reporting and record keeping requirements of both the Agency-funded Home Improvement program and the Community Development Block Grant funded application for the Leisure World Accessibility Program. The funds to pay for the project management and compliance verification costs of these programs are eligible expenses of the Riverfront Redevelopment Project Low-and Moderate Income Fund. For the coming Fiscal Year 2008-2009 the following costs are estimated to provide the necessary services for both of these programs. Based on an anticipated service level of 20 program participants for the Home Improvement Program and 80 program participants for the Leisure World Accessibility program, the administrative costs are estimated to be approximately $ 4,000 per program participant for the Home Improvement Program and $ 1,250 per program participant for the Leisure World Accessibility Program. Based on the anticipated number of program participants for 2008-2009 the following administration costs would be necessary to provide the necessary administrative functions of the subject programs: Program Administered Home Improvement Program Leisure World Accessibility Program Total Administrative Costs Budgeted Administrative Costs $ 80, 000.00 $ 100,000.00 $ 180,000.00 The above administration costs are based on an anticipated program activity level comparable to the last two years for both of these programs. Summary of Proposed Riverfront Redevelopment Project Area Low and Moderate Income Housing Fund, Fiscal Year 2008-2009: Provided on the following page is a "Proposed Riverfront Redevelopment Project Area Low and Moderate Income Housing Fund, Fiscal Year 2008-2009° for the review of the Agency that summarizes the above discussed revenues and expenditures for this program for Fiscal Year 2008-2009. • Program Status Report 4.RDA Staff Report 6 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • RIVERFRONT REDEVELOPMENT PROJECT AREA LOW AND MODERATE INCOME HOUSING FUND FY 2008-2009 • Account Proposed Account Description Number Account Detail Description Funding Level Undesignated Fund $1,541,300 Balance, 07-01-08 Revenues Interest on Investments 061-000- Interest received for funds invested $ 45 000 30420 until expended , Transfers In 061-000- No longer applicable 31500 Low/Mod Housing Set 061-000- Estimated property tax increment $ 331 000 Aside 38555 amount to be received from County of , Orange Loan Proceeds $ 0 Sub-Total Available $ 7,917,300 Funds Expenditures Training and Meetings 061-081- Training and meeting expenses for $ 1,500 40400 Staff Contract Professional 061-081- Contract Services for CivicStone $ 180,000 Services 44000 Low-Mod Housing 061-081- Funds expended for allowable grants, Program Expenses 45050 loans, and other allowable project $ 756,000 costs Rehabilitation Grants 20 (c~ $ 10,000 $ 200,000 Rehabilitation Loans 20 @ $ 25,000 $ 500,000 Seal Beach Trailer Park -Greenbelt $ 6 000 Area Prope Survey , Rental Assistance Rental Assistance Program -Seal $ 120 000 Program Beach Trailer Park , Legal Services 061-081- 49800 Legal expenses $ 20,000 Total Expenditures $ 1,077,500 Undesignated Fund . $ 839,800 Balance, 06-30-09 That will leave approximately $839,800 as an undesignated fund for additional program applicants, possible additional replacement of units in the Seal Beach Trailer Park, development of new programs/projects that may be considered at a future time, unanticipated program administration costs, or other special uses that the Agency would wish to consider. All remaining undesignated funds as of June 30, 2009 will then be carried over into the Fiscal Year 2009-2010 budget • cycle. Progrem Status Report 4.RDA Staff Report 7 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • Proposed Revisions to "Home Improvement Program Guidelines": Provided as Attachment 3 is the current "Home Improvement Program• Guidelines°, as adopted by the Agency in 2006. Provided as Attachment 4 is the current "Home Improvement Program Guidelines", as adopted by the Agency in 2006, indicating proposed revisions based on the discussion above, with text to be deleted indicated by fie. ~ and text to be added indicated by bold, italicized. and double-underlined text. Attachment 5 presents the same document in a clean version as proposed to be revised. Authorization of the Agency to proceed as discussed above would then establish the following major program components for 2008-2009: ^ a maximum amount of $35,000 per program participant; ^ allow use of the loan and grant funds for assistance in the acquisition of mobile/manufactured homes; ^ provide funding for a survey that will establish the "trailer space lines" for spaces 74, 86, 98, 101, 103, 105, 107 and 111 in the Seal Beach Trailer Park; and ^ the cost of a property survey for other properties, if required by the Building or Planning Department, can be included as an eligible project • expense, but that the survey costs, along with the other eligible project improvements to be funded, cannot exceed the total funding of $35,000 ($25,000 loan and $10,000 grant). Requested Aaencv Action Reaardina ProQOSed Home lmarovement Program Revisions: Staff is requesting authorization from the Agency to implement the proposed program revisions as discussed above and as further set forth in Attachment 5. If the Agency is in general concurrence with the suggested program modifications, Staff will return at the next Agency meeting with a resolution to adopt the revised program guidelines as set forth in Attachment 5, as those may be further modified based on any direction the. Agency may wish to provide after considering this Staff Report. Requested Aaencv Action Regarding ProQOSed Home Additional Actions Regarding Seal Beach Trailer Park Matters• Authorization of the Agency to proceed as discussed above would also direct staff to take the following actions related to the Seal Beach Trailer Park: D Initiate discussions with Seal Beach Affordable Housing Corporation, or a subsequent ownership entity for the Seal Beach Trailer Park, regarding • Program Status Report 4.RDA Staff Report s Home Imprr~vement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • development of a comprehensive replacement program for some of the severely dilapidated units within the Trailer Park; ^ Initiate discussions with Seal Beach Affordable Housing Corporation, or a subsequent ownership entity for the Seal Beach Trailer Park, and the impacted residents regarding development of a comprehensive plan for establishing trailer space lines for spaces 74, 86, 98, 101, 103, 105, 107 and 111 within the Trailer Park FISCAL IMPACT: No impacts to City General Fund. If the Agency directs staff to proceed as discussed above, staff will determine if any budget amendments are necessary for the 2008-2009 Fiscal Year Budget to reflect the direction of the Agency. If a budget amendment is necessary for the 2008-2009 Fiscal Year Budget to reflect the proposed changes to the Program Guidelines, staff will present that budget amendment at the next meeting of the Agency. RECOMMENDATION: Authorize Staff to implement the recommended revisions to program guidelines and funding levels for individual projects as proposed and as may be further revised upon Agency directions. Receive and File Staff Report. NOTED AND APPROVED: e Whi enberg Director of Development Servi s Robbeyn Bird Director of Administrative Services Attachments: (5) ~'=/ David Carman Executive Director Redevelopment Agency Attachment 1: Portion of the "Gn:enbe/t Area" of June 1979 Improvement Plan, Seal Beach Trailer Park Attachment 2: Portion of the "Greenbelt Area° of December 1993 "As • Built" Map, Seal Beach Trailer Park • Program Status Report 4.RDA Staff Report 9 Home Improvement Program Status Report RedevelopmentAgency Staff Report July 14, 2008 Attachment 3: "City of Seal Beach Home Improvement Program • Guidelines", dated March 13, 2006 Attachment 4: "City of Seal Beach Home Improvement Program Guidelines°, proposed revisions by Staff, dated July 14, 2008 (Strike-Through Version) Attachment 5: "City of Seal Beach Home Improvement Program Guidelines", proposed revisions by Staff, dated July 14, 2008 (Clean Version) • • Program Status Report 4.RDA Staff Report 10 Home Improvement Program Status Report Redevelopment Agency Statif Report July 14, 2008 e ATTACHMENT 1 PORTION OF THE "GREENBELT AREA" OF JUNE 1979 IMPROVEMENT PLAN, SEAL BEACH TRAILER PARK C, Program Status Report 4.RDA Staff Report 11 - ~~ t ' ~G 1~tt ~fl ~• .'• _~-" I! k .~.. - s ' • ~• ~ ~ ~/.s. g `!7 s,~. ~~7 iY _ /~(7/ ~,/~'~"+~:+s'. J •~ - - - r :. ... .~!`~ .. ;SID` +~ ' ~.;.: ~ : • - - .yam .f„ ~.?•al~~ '.1`-, '~ ~' T 1`_s_G~~ to _ , ~`• >> _ _ d~sif~.Qi~'L.' ~ /},i~'"• ~ .n ~ ¢ ~M ~ ~ - ' "'~ ' 1 •~ l34 =' - x` _~ r r _ ~ - ~'rf•G7 ~~ ~ , . ' ~~w - " ^~ • ' 'e-s •~ a ~-M`~ - i mot. + ~ ~ _ ~ ~'~'~ +'~.~~y, `a' 1` ` ,"~"~~, s~-'..R...,;-~..r ..ltf l#'.d! YY1 '175 ` _ r • , - //..'A. .r. R i~j ~'.. . ~~- Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 ~J ATTACHMENT 2 PORTION OF THE "GREENBELT AREA" OF DECEMBER 1993 "AS BUILT" MAP, SEAL BEACH TRAILER PARK • Program Status Report 4.RDA Staff Report ~ 2 - ,T:; . •: - -- ~ nae. .'='-.t ~ A•-C J:; ~, 3,, .- ;1..,:• ~-~to"~ mss`: , '* Y`. - - .~ , . R•`• - - ,;. ~5~7-• « - .~ 'i°~'.~ _?.tee ' - -'' _ . -~~•_ r •.~~ T. `t .y '. _g yl - -~.y y. 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S: .i. ~ya~ Y'~~~p: ~~,f t~ '~ui • '~9f'``''.; i.. =~ :• ••~- ~, • x ,• - y r(3' ~'//¢"~~a _ ;-,• ~•r.• < ~ .tea ,. _ >, '~ - '3• P~~'- ~j ,.i ~ii±.'~SL '.Y I{- ~. a>_ f. .t ~ Af, •,CAi f:: ,~^'~P,'~-j''~'..•1 n .+"."•i, ~~~ ••~'~- -•.• 'Rt .~i4 "~ _ • _ _. -~ - -__~~P .9'.f..fY tl•~' . .. ~- ~ria-i ILYi~q ~gTll.'r` ' • fj.•~@-~ a` .: " _ - wabl±~••r+_~!as~~ ..-b . -.,,. - i• • _ "k " ^ .~+r: ,7, -} !' _, _ r ~... ... .•r ._4{t +; Y -.fi. . .~ Yom- .. {d4-:'?~~i:~R~.,I1d ]L` Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • ATTACHMENT 3 CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES (REVISED MARCH 13, 2006) s • Program Status Repoli 4.RDA Staff Report 13 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES (REVISED MARCH 13, 2006) Program Authorization and Intent: This Home Improvement Program was approved by the Redevelopment Agency of the City of Seal Beach on April 22, 2002 and is revised effective the date indicated above. These programs are proposed to comply with the provisions of the State of California regarding the use of Redevelopment Agency "Housing Set-Aside° funds. The programs have been designed to assist identified groups of low- and moderate-income persons and families that reside or are anticipated to reside within the City of Seal Beach over the time period of 2006-2009. These programs do not propose the use of funds for new construction of living units within the City, with the exception of the replacement program for living units within the Seal Beach Trailer Park as may permitted on a case-by-case determination of the Agency based on funds available. All of the other programs are proposed to assist current residents, both owners and renters, to the greatest extent possible, who would qualify under the various program guidelines established within the Seal Beach Home Improvement Program Guidelines. The Redevelopment Agency of the City of Seal Beach has approved the following programs for implementation by the Redevelopment Agency staff and appropriate consultants (Program Guidelines are summarized on Table 2): A. Home Improvement Programs: 7. Owner-Occupied Home Improvement Programs: (a) Home Improvement Loan Program: Eligible Properties: This program is available to owner-occupants of single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Maximum deferred loan amount of $15,000.00. If property is sold to qualified buyer, that buyer will • assume repayment terms. If property is sold to anon-qualified buyer within first 10 years, full principal amount plus 2% interest Progrem Status Report 4.RDA Staff Report ~,tF Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 due upon sale. If property is sold to anon-qualified buyer in years • 10-20, 1/10th of principal and interest forgiven for each year after 10th year. Upon sale of property the pro-rated amount of principal and interest is due. Principal and interest completely forgiven on 20-year loan anniversary. (b) 2. Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan terms and criteria. Available Funding: $ 375,000.00 Note: Reflects current amount available, no future funds will be allocated from deposits into the program funds from the County Tax Assessors Office. Home Improvement Grant Program: Eligible Properties: This program is available to owner-occupants of single family homes, condominiums and mobile homes (trailers). i Loan Amount and Terms: Maximum grant amount of $10,000.00. Grant forgiven after 3 years. Resale restriction during first three years: if property is sold to a non-qual~ed purchaser, the grant amount is paid to the Agency out of the sale proceeds. Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan terms and criteria. Available Funding: $ 250,000.00 Note: Reflects current amount available, $60,000.00 per fiscal year will be allocated from deposits into the program funds from the County Tax Assessors Office. Tenant Ownership of Seal Beach Trailer Park/Replacemenf of Existing Units • Program Status Report 4.RDA Staff Report 15 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • Eligible Properties: This program is available to owner-occupants of mobile homes (trailers) within the Seal Beach Trailer Park. Loan Amount and Terms: Maximum deferred loan amount not to exceed $50,000.00. Each property has 45-year affordable covenant. Full principal is forgiven on 10-year loan anniversary. If property is sold to qualified buyer, that buyer will assume repayment. If property is sold to non-qualified buyer within first 10 years, the full principal plus equity share is due upon sale. Agency to receive equity share if home is sold to non-qualified buyer before 45 year covenant expires. Eligible Improvements: Replacement of entire housing unit is the only eligible activity and must be approved by City Building and Code Enforcement Departments. Available Funding: Determined by Agency on a case-by-case review. Tenant Ownership/Renta/Rssistance: To ensure the long-term preservation of Seal Beach Trailer Park as S an important affordable housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue tenant ownership of the park. The City was awarded by the State Department of Housing and Community Development (HCD) a $20,000 Technical Assistance grant to facilitate conversion of the park to tenant ownership. Through the issuance of a revenue bond by the Agency, approval of a MPROP Loan by the State of California and subsequent loan to LINC housing, conversion of the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units have been deed-restricted as housing affordable to very low income households and 75 units have been deed-restricted as housing affordable to low/moderate income households. In addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary to repay the bond. The rental assistance is for a period of 12 years with a maximum funding commitment of $ 965,000.00, and a maximum yearly commitment of $ 120,000.00. 3. Mortgage Assistance Loans Eligible Properties: This program is available to qualified purchasers of owner-occupied single family homes, condominiums • and mobile homes (trailers). Program Status Report 4.RDA Staff Report ~ 6 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 Loan Amount and Terms: Deferred Loan. Buyer pays all closing costs. 45-year affordable covenant on property. Full principal amount forgiven on 10-year loan anniversary. If property is later sold to qualified buyer, that buyer will assume repayment terms. Agency to receive equity share whenever home is sold to non- qualified buyer before 45-year covenant expires Eligible Improvements: None, program is designed to provide up to 20% of purchase price for down payment. Maximum $35,000 deferred loan amount. Available Funding: Determined by Agency on a case-by-case review. C3~ Housing Production and Assistance Goals Table 7 provides estimates in terms of number of households to be assisted and amount of housing set-aside fund to be expended over the three-year period (2006-2008) of this Home Improvement Program. Table 1 Three-Year Housing Assistance Goals - 2006-07 to 2008-2009 Households Set-Aside Funds Program Assisted to be Expended 1. Home Improvement 18 $ 180,000 Program 2. Tenant Ownership of Seal Beach Trailer Park Rental~Subsidyfor3 Years 25 $540,000 Replacement .~ TBD TBD 3. Mortgage Assistance TBD TBD Loans Total 43 $ 720,000 Notes: 1. Total Rental Subsidy is for 12 Years and will be allocated in future plans as appropriate. Total subsidy is not to exceed $965,000.00 TBD To be determined by Agency on a case-by-case basis depending on funding availability. • CJ • Program Status Report 4.RDA StafF Report 17 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 • The A enc has discretion to re-allocate funding levels among the various 9 Y programs ident~ed above, with the understanding that the allocated funds must total the $ 720,000 indicated. In addition, the Agency needs to allocate funds to the proposed programs in such a manner as will allow the Agency to comply with the following requirements: ^ 70.2 percent of the housing set-aside funds would need to be expended to assist housing for persons with very low and low income during the duration of this Home Improvement Program. ^ 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. C. Program Implementation: CivicStone, the City's housing program consultant, will develop a set of procedures and application forms for implementation of the above- described programs. All procedures and application forms shall be reviewed and approved by the Executive Director of the Redevelopment Agency of his/her designee. CivicStone will also take a more active role in helping the homeowner through the HIP process; making the application process more manageable and attractive to the Seal Beach homeowner. • CivicStone will also track, monitor, administer and report to the City on the intricacies and details of the revised HIP. This will accelerate the application, bidding, loan and construction processes as well as eliminate lender, construction and homeowner delays. CivicStone will: ^ Qualify the property owners' applications for eligibility, based upon program guidelines. ^ Interview contractors, check references, verify city and state requirements and develop a contractor's list. ^ Work with homeowners to develop a Scope of Work for contractors to submit competitive bids. ^ When required by the Planning Department, CivicStone will refer homeowners to qualified architecture companies for preparing construction plans. ^ Conduct the competitive bid process and review the bids with the homeowners. ^ Assist the property owners with the loan/grant process. ^ Regularly inspect the properties and when .appropriate approve the contractor progress payments. ^ Ensure proper grant/loan documentation is provided to the Agency for each project funded through the HIP. • .. P[ogram Status Report 4.RDA Staff Report ~ 8 Home Improvement Program Status Report Redevelopment Agency Staff Report July 74, 2008 • ATTACHMENT 4 "CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES", PROPOSED REVISIONS BY STAFF, DATED JULY 14, 2008 C: Program Status Report 4.RDA Staff Report ~ g Home Improvement Program Status Report Redeve/opmenf Agency Staff Report July 74, 2008 C7 CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES (REVISED JULY 14.2008) Program Authorization and Intent: This Home Improvement Program was approved by the Redevelopment Agency of the City of Seal Beach on April 22, 2002 and is revised effective the date indicated above. These programs are proposed to comply with the provisions of the State of California regarding the use of Redevelopment Agency "Housing Set-Aside" funds. The programs have been designed to assist identified groups of low- and moderate-income persons and families that reside or are anticipated to reside within the City of Seal Beach over the time period of ~ 2008_ 2009. These programs do not propose the use of funds for new construction of living units within the City, with the exception of the replacement program for • living units within the Seal Beach Trailer Park All of the other programs are proposed to assist current residents, both owners and renters, to the greatest extent possible, who would qualify under the various program guidelines established within the Seal Beach Home Improvement Program Guidelines. The Redevelopment Agency of the City of Seal Beach has approved the following programs for implementation by the Redevelopment Agency staff and appropriate consultants (Program Guidelines are summarized on Table 2): A. Home Improvement Programs: Owner-Occupied Home Improvement Programs: (a) Home Improvement Loan Program: Eligible Properties: This program is available to owner-occupants of single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Maximum deferred loan amount of $1 2_'~. If property is sold to qualified buyer, that • buyer will assume repayment terms. If property is sold to a non- qualified buyer within first 10 years, full principal amount plus 2% Program Status Report 4.RDA Statf Report 20 Home Improvement Program Status Report Redevelopment Agency Staff Report July 74, 2008 interest due upon sale. If property is sold to anon-qualified buyer in years 10-20, 1/10th of principal and interest forgiven for each year after 10th year. Upon sale of property the pro-rated amount of principal and interest is due. Principal and interest completely forgiven on 20-year loan anniversary. (b) 2. Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan terms and criteria. Available Funding: $ ~QQ Q,QQ Home Improvement Grant Program: Eligible Properties: This program is available to owner-occupants • of single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Maximum grant amount of $10,000.00. Grant forgiven after 3 years. Resale restriction during first three years: if property is sold to anon-qualified purchaser, the grant amount is paid to the Agency out of the sale proceeds. Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan terms and criteria. Available Funding: $ Tenant Ownership of Seal Beach Trailer ParWReplacement of Existing Units Eligible Properties: This program is available to owner-occupants of mobile homes (trailers) within the Seal Beach Trailer Park. • Program Status Report 4.RDA Staff Repoli 21 Home Improvement Program Status Report Redevelopment Agency Staff Report - July 14, 2008 Loan Amount and Terms: Maximum deferred loan amount not to exceed $~8~,000.00. Each property has 45-year affordable covenant. Full principal is forgiven on 10-year loan anniversary. If property is sold to qualified buyer, that buyer will assume repayment. If property is sold to non-qualified buyer within first 10 years, the full principal plus equity share is due upon sale. Agency to receive equity share if home is sold to non-qualified buyer before 45-year covenant expires. Eligible Improvements: Replacement of entire housing unit is the only eligible activity and must be approved by City Building and Code Enforcement Departments. Available Funding: mow- Funding is included under Program A.1: Owner- Occupied Home Improvement Programs. Tenant Ownership/Renfa/ Assistance: To ensure the long-term preservation of Seal Beach Trailer Park as an important affordable housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue tenant • ownership of the park. .Through the issuance of a revenue bond by the Agency, approval of a MPROP Loan by the State of California and subsequent loan to LINC housing, conversion of the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units have been deed-restricted as housing affordable to very low income households and 75 units have been deed-restricted as housing affordable to low/moderate income households. In addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary to repay the bond. The rental assistance is for a period of 12 years with a maximum funding commitment of $ 965,000.00, and a maximum yearly commitment of $ 120,000.00. 3. Mortgage Assistance Loans Eligible Properties: This program is available to qualified purchasers of owner-occupied single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Deferred Loan. Buyer pays all closing costs. 45-year affordable covenant on property. Full principal Program Status Report 4.RDA Staff Report 22 Home Improvement Program Status Report Redevelopment Agency Staff Report July 74, 2008 amount forgiven on 10-year loan anniversary. If property is later sold to qualified buyer, that buyer will assume repayment terms. Agency to receive equity share whenever home is sold to non- qualified buyer before 45-year covenant expires Eligible Improvements: None, program is designed to provide up to 20% of purchase price for down payment. Maximum $35,000 deferred loan amount. Available Funding: Determined by Agency on a case-by-case review. B. Housing Production and Assistance Goals Table 1 provides estimates in terms of number of households to be assisted and amount of housing set-aside fund to be expended over the #~€ee one-year period ~~ of this Home Improvement Program. Table 1 ne-Year Housing Assistance Goals - ~nn~ n~ +,. 2008-2009 Program Households Set-Aside Funds Assisted to be Expended 1. Home Improvement ~8 ~Q $ Program -Loans & Grants 2. Tenant Ownership of Seal Beach Trailer Park Rental Subsidy for ~ 25 $ 1 Yearet egg Fundin ~ Replacement uded in 7. above included in 7, above 3. Mortgage Assistance TBD TBD Loans Total q.~ ~ $ Notes: 1. Total Rental Subsidy is for 12 Years and will be allocated in future plans as appropriate. Total subsidy is not to exceed $965,000.00 • • Program Status Report 4.RDA Staff Report 23 Home Improvement Program Status Report Redevelopment Agency Staff Report July ?4, 2008 • TBD To be determined by Agency on a case-by-case basis depending on funding availability. The Agency has discretion to re-allocate funding levels among the various programs identified above, with the understanding that the allocated funds must total the $ ;A9~ $ZQ~ indicated. In addition, the Agency needs to allocate funds to the proposed programs in such a manner as will allow the Agency to comply with the following requirements: ^ 70.2 percent of the housing set-aside funds would need to be expended to assist housing for persons with very low and low income during the duration of this Home Improvement Program. ^ 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. D. Program Implementation: CivicStone, the City's housing program consultant, will develop a set of procedures and application forms for implementation of the above- described programs. All procedures and application forms shall be reviewed and approved by the Executive Director of the Redevelopment Agency of his/her designee. CivicStone will also take a more active role in helping the homeowner through the HIP process; making the application • process more manageable and attractive to the Seal Beach homeowner. CivicStone will also track, monitor, administer and report to the City on the intricacies and details of the revised HIP. This will accelerate the application, bidding, loan and construction processes as well as eliminate lender, construction and homeowner delays. CivicStone will: ^ Qualify the property owners' applications for eligibility, based upon program guidelines. ^ Interview contractors, check references, verify city and state requirements and develop a contractor's list. ^ Work with homeowners to develop a Scope of Work for contractors to submit competitive bids. ^ When required by the Planning Department, CivicStone will refer homeowners to qualified architecture companies for preparing construction plans. ^ Conduct the competitive bid process and review the bids with the homeowners. ^ Assist the property owners with the loan/grant process. ^ Regularly inspect the properties and when appropriate approve the contractor progress payments. ^ Ensure proper grant/loan documentation is provided to the Agency for each project funded through the HIP. • Prpgram Status Report 4.RDA Staff Report 24 Home Improvement Program Status Report Redevelopment Agency StafiF Report July 14, 2008 ATTACHMENT 5 "CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES", PROPOSED REVISIONS BY STAFF, DATED JULY 14, 2008 (CLEAN VERSION) Prpgram Status Report 4.RDA Staff Repoli 2rJ Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 CITY OF SEAL BEACH HOME IMPROVEMENT PROGRAM GUIDELINES (REVISED JULY 14, 2008) Program Authorization and Intent: This Home Improvement Program was approved by the Redevelopment Agency of the City of Seal Beach on April 22, 2002 and is revised effective the date indicated above. These programs are proposed to comply with the provisions of the State of California regarding the use of Redevelopment Agency "Housing Set-Aside" funds. The programs have been designed to assist identified groups of low- and moderate-income persons and families that reside or are anticipated to reside within the City of Seal Beach over the time period of 2008-2009. These programs do not propose the use of funds for new construction of living units within the City, with the exception of the replacement program for living units within the Seal Beach Trailer Park. All of the other programs are proposed to • assist current residents, both owners and renters, to the greatest extent possible, who would qualify under the various program guidelines established within the Seal Beach Home Improvement Program Guidelines. The Redevelopment Agency of the City of Seal Beach has approved the following programs for implementation by the Redevelopment Agency staff and appropriate consultants (Program Guidelines are summarized on Table 2): A. Home Improvement Programs: 1. Owner-Occupied Home Improvement Programs: (a) Home Improvement Loan Program: Eligible Properties: This program is available to owner-occupants of single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Maximum deferred loan amount of $ 25,000.00. If property is sold to qualified buyer, that buyer will assume repayment terms. If property is sold to anon-qualified buyer within first 10 years, full principal amount plus 2% interest due upon sale. If properly is sold to anon-qualified buyer in years 10-20, 1/10th of principal and interest forgiven for each year after 10th year. Upon sale of property the pro-rated amount of principal Program Status Repott 4.RDA Staff Report 26 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 and interest is due. Principal and interest completely forgiven on • 20-year loan anniversary. (b) 2. Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan temps and criteria. Available Funding: $ 500,000.00 Home Improvement Grant Program: Eligible Properties: This program is available to owner-occupants of single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Maximum grant amount of $10,000.00. Grant forgiven after 3 years. Resale restriction during first three years: if property is sold to anon-qualified purchaser, the grant amount is paid to the Agency out of the sale proceeds. • Eligible Improvements: All health, safety, and public welfare violations and deficiencies and, as a secondary priority address exterior beautification. Eliminate program activities that address discretionary property improvements to the home. This program is only available for non-substantial levels of rehabilitation (less than 25% of the after-rehab value). Substantial rehabilitation requires a different set of loan terms and criteria. Available Funding: $ 200,000.00 Tenant Ownership of Seal Beach Trailer Park/Rep/acement of Existing Units Eligible Properties: This program is available to owner-occupants of mobile homes (trailers) within the Seal Beach Trailer Park. Loan Amount and Terms: Maximum deferred loan amount not to exceed $ 35,000.00. Each property has 45-year affordable covenant. Full principal is forgiven on 10-year loan anniversary. If property is sold to qualified buyer, that buyer will assume repayment. If property is sold to non-qualified buyer within first 10 years, the full principal plus equity share is due upon sale. Agency • Program'Status Report 4.RDA Staff Report 27 Home Improvement Program Status Report Redevelopment Agency Staff Report July 74, 2008 • to receive equity share if home is sold to non-qualified buyer before 45-year covenant expires. Eligible Improvements: Replacement of entire housing unit is the only eligible activity and must be approved by City Building and Code Enforcement Departments. Available Funding: Funding is included under Program A.1: Owner-Occupied Home Improvement Programs. Tenant Ownership/Renta/Rssistance: To ensure the long-term preservation of Seal Beach Trailer Park as an important affordable housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue tenant ownership of the park. Through the issuance of a revenue bond by the Agency, approval of a MPROP Loan by the State of California and subsequent loan to LINC housing, conversion of the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units have been deed-restricted as housing affordable to very low income households and 75 units have been deed- restricted as housing affordable to low/moderate income • households. In addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary to repay the bond. The rental assistance is for a period of 12 years with a maximum funding commitment of $ 965,000.00, and a maximum yearly commitment of $ 120,000.00. 3. Mortgage Assistance Loans Eligible Properties: This program is available to qualified purchasers of owner-occupied single family homes, condominiums and mobile homes (trailers). Loan Amount and Terms: Deferred Loan. Buyer pays all closing costs. 45-year affordable: covenant on property. Full principal amount forgiven on 10-year loan anniversary. If property is later sold to qualified buyer, that buyer will assume repayment terms. Agency to receive equity share whenever home is sold to non- qualified buyer before 45-year covenant expires Eligible Improvements: None, program is designed to provide up to 20% of purchase price for down payment. Maximum $35,000 deferred loan amount. • Program Status Report 4.RDA Staff Report 2$ Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 Available Funding: Determined by Agency on a case-by-case • review. B. Housing Production and Assistance Goals Table 1 provides estimates in terms of number of households to be assisted and amount of housing set-aside fund to be expended over the one-year period (2008-2009) of this Home Improvement Program. Table 1 One-Year Housing Assistance Goals - 2008-2009 Program Households Set Aside Funds Assisted to be Expended 1. Home Improvement Program -Loans & 20 $ 700,000 Grants 2. Tenant Ownership of Seal Beach Trailer Park Rental Subsidy for 1 25 $ 120 000 Year' , Replacement Funding included in Funding included in 1, above 1, above 3. Mortgage Assistance TBD TBD Loans Total 45 $ 820,000 Notes: 1. Total Rental Subsidy is for 12 Years and will be allocated in future plans as appropriate. Total subsidy.'is not to exceed $965,000.00 TBD To be determined by Agency on a case-by-case basis depending on funding availability. r~ The Agency has discretion to re-allocate funding levels among the various programs idenfrFed above, with the understanding that the allocated funds must total the $ 820,000 indicated. In addition, the Agency needs to allocate funds to the proposed programs in such a manner as will allow the Agency to comply with the following requirements: • Program Status Report 4.RDA Staff Repoli 29 Home Improvement Program Status Report Redevelopment Agency Staff Report July 14, 2008 ^ 70.2 percent of the housing set-aside funds would need to be expended to assist housing for persons with very low and low income during the duration of this Home Improvement Program. ^ 62.5 percent of the housing set-aside funds must be expended on housing that is available to families with children. E. Program Implementation: CivicStone, the City's housing program consultant, will develop a set of procedures and application forms for implementation of the above- described programs. All procedures and application forms shall be reviewed and approved by the Executive Director of the Redevelopment Agency of his/her designee. CivicStone will also take a more active role in helping the homeowner through the HIP process; making the application process more manageable and attractive to the Seal Beach homeowner. CivicStone will also track, monitor, administer and report to the City on the intricacies and details of the revised HIP. This will accelerate the application, bidding, loan and construction processes as well as eliminate lender, construction and homeowner delays. CivicStone will: ^ Qualify the property owners' applications for eligibility, based upon program guidelines. - • ^ Interview contractors, check references, verify city and state requirements and develop a contractor's list. ^ Work with homeowners to develop a Scope of Work for contractors to submit competitive bids. ^ When required by the Planning Department, CivicStone will refer homeowners to qualified architecture companies for preparing construction plans. ^ Conduct the competitive bid process and review the bids with the homeowners. ^ Assist the property owners with• the loan/grant process. a Regularly inspect the properties and when appropriate approve the contractor progress payments. ^ Ensure proper grant/loan documentation is provided to the Agency for each project funded through the HIP. L` P..rogrem Status Report 4.RDA Staff Report SO