HomeMy WebLinkAboutRDA AG PKT 2008-07-28 #2AGENDA STAFF REPORT
DATE: July 28, 2008
TO: Chairperson and Members of the Redevelopment Agency
THRU: David Carmany, Executive Director
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: ADOPT RESOLUTION APPROVING MODIFICATIONS
TO HOME IMPROVEMENT PROGRAM
SUMMARY OF REQUEST:
Adopt Resolution No. 08-03, A Resolution of the Seal Beach Redevelopment
Agency Approving Modifications to the "City of Seal Beach Home Improvement
Program Guidelines." Receive and File Staff Report.
BACKGROUND:
On July 14, 2008 the Agency Received and filed a Staff Report that proposed
modifications to the currently effective "Home Improvement Program Guidelines."
Staff indicated that if the Agency approved the proposed modifications that an
adopting resolution would be presented at the next Agency meeting. The
requested action of the Agency is to adopt Resolution Number 08-03, approving
the proposed modifications to the "City of Seal Beach Home Improvement
Program Guidelines."
FISCAL IMPACT:
No impacts to City General Fund. Staff has determined that a budget
amendment is necessary for the 2008-2009 Fiscal Year Budget to reflect the
requested action of the Agency. Staff will present that budget amendment at the
next meeting of the Agency.
RECOMMENDATION:
Adopt Resolution No. 08-03, A Resolution of the Seal Beach Redevelopment
Agency Approving Modifications to the "City of Seal Beach Home Improvement
Program Guidelines." Receive and File Staff Report.
Agenda Item 2
Home Improvement Program Guidelines Adoption
Redevelopment Agency Staff Report
July 28, 2008
e Whittenberg
Director of Development Servic
Attachments: (2)
NOTED AND APPROVED:
~~d~
David Carmany
Executive Director
Redevelopment Agency
Attachment 1: Resolution No. 08-03, A Resolution of the Seal Beach
Redevelopment Agency Approving Modifications to
the City of Seal Beach Home Improvement Program
Guidelines
Attachment 2: City of Seal Beach Home Improvement Program
Guidelines, Adopted July 28, 2008
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ATTACHMENT 1
RESOLUTION NO. 08-03, A RESOLUTION
OF THE SEAL BEACH REDEVELOPMENT
AGENCY APPROVING MODIFICATIONS TO
THE CITY OF SEAL BEACH HOME
IMPROVEMENT PROGRAM GUIDELINES
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RESOLUTION NUMBER OS-O3
A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT
AGENCY APPROVING MODIFICATIONS TO THE CITY OF SEAL
BEACH HOME IMPROVEMENT PROGRAM GUIDELINES
The Redevelopment Agency of the City of Seal Beach hereby resolves as
follows:
SECTION 1. In 2002 the Redevelopment Agency ("Agency') adopted
Home Improvement Program Guidelines for available loan and grant programs
that are funded by the Redevelopment Agency Low- and Moderate-Income
Housing Assistance Funds.
SECTION 2. The Agency amended those Guidelines on March 13, 2006
and further considered proposed modifications to those current Home
Improvement Program Guidelines on July 14, 2008.
SECTION 3. The Agency determined to approve the proposed
modifications submitted for consideration on July 14, 2008.
SECTION 4. The Agency hereby adopts the "Home Improvement
Program Guidelines", dated July 28, 2008.
SECTION 5. The City Clerk shall certify to the passage and adoption of
this resolution.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of
the City of Seal Beach this 28th day of Julv , 2008 by the following vote:
AYES:
NOES: Agency Members
ABSENT: Agency Members
ABSTAIN: Agency Members
ATTEST:
Agency Members.
Chairman
Secretary/City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing Resolution is the original copy of Resolution Number 08-03
on file in the office of the City Clerk, passed, approved, and adopted by the
Redevelopment Agency of the City of Seal Beach at a meeting held thereof on
the 28th day of Julv , 2008.
Secretary/City Clerk
Home Improvement Program Guidelines Adoption
Redevelopment Agency Staff Report
July 28, 2008
ATTACHMENT 2
HOME IMPROVEMENT PROGRAM
GUIDELINES, ADOPTED JULY 28, 2008
RDA -Staff Report - 2008-2009 Program Guidelines Adoption
Home Improvement Program Guidelines Adoption
Redevelopment Agency Staff Report
July 28, 2008
HOME IMPROVEMENT
PROGRAM GUIDELINES
REDEVELOPMENT AGENCY
OF THE CITY OF SEAL BEACH
July 28, 2008
RDA -Staff Report - 2008-2009 Program Guidelines Adoption
Home Improvement Program Guidelines Adoption
Redevelopment Agency Staff Report
July 28, 2008
CITY OF SEAL BEACH
HOME IMPROVEMENT PROGRAM GUIDELINES
(ADOPTED JULY 28, 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 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
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and interest is due. Principal and interest completely forgiven on
20-year loan anniversary.
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: $ 500,000.00
(b) 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
2. Tenant Ownership of Seal Beach Trailer Park/Replacement 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
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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/Rental Assistance:
To ensure the long-term preservation of Seal Beach Trailer Park as
an important affordable housing resource, the City worked with
LINO 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.
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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
Year' 25 $ 120,000
Replacement Funding included in Funding included in
1, above 1, above
3. Seal Beach Trailer Park $ 6
000
-Greenbelt Survey ,
3. Mortgage Assistance TBD TBD
Loans
Total 45 $ 826,000
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.
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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 $ 826,000 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:
0 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.
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