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HomeMy WebLinkAboutRDA AG PKT 2005-07-11 #3 AGENDA REPORT DATE: July 11, 2005 TO: Chairperson and Members of the Redevelopment Agency THRU: John B. Bahorski, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: ADOPTION OF RESOLUTION NO. , A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $90,000 TO PROVIDE ASSISTANCE IN PURCHASING AND REHABILITATING A MOBILEHOME IN THE SEAL BEACH TRAILER PARK (WELZ) SUMMARY OF REQUEST: Adopt Resolution No. , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Payment of up to $90,000 to Provide Assistance in Purchasing and Rehabilitating a Mobilehome in the Seal Beach Trailer Park (Welz). BACKGROUND: Overview of Request for Authorization of Payment of up to 890,000 to Provide Assistance in Purchasing and Rehabilitating a Mobilehome in the Seal Beach Trailer Park (Welz): The City has been working with Edward A. and Lori A. Welz since 2002 to allow them to purchase a mobilehome in the Seal Beach Trailer Park, undertake rehabilitation of that mobilehome, and live in the unit, along with their two children. The City was processing applications for all 3 programs to assist this family. On April 4, 2003, the Agency funded a MAP loan in the amount of $30,000 to this family for the purchase of a unit within the Seal Beach Trailer Park. On June 18, 2003 the Planning Commission approved a request to construct a second story on the subject mobilehome that was to be funded by the home improvement loan and grant programs in an amount of $60,000. It was subsequently determined that the approval included additions that were not allowable and a new application was approved on February 4, 2004. The approved project was then submitted to the Coastal Commission by the project applicants on February 24, 2004. Agenda Item ,f,0/9-3 Z:\My Documents \RDA \Welz.Revision to Program Funding Guidelines.RDA Staff Report.doc \LW\06 -29 -05 . Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July II, 2005 On April 6, 2004 the husband, Edward A. Welz was killed in a fire at the subject mobilehome and the unit was destroyed. Since that time, the surviving wife, Lori A. Welz, has been struggling to determine what course of action is best for here and her two children in light of the tragedy. The initial funding commitments were based on the incomes of both the husband and wife and assistance from family members. Under the current circumstances, Lori A. Welz is not able to proceed with the originally contemplated project. The loan funds to allow for the purchase of the mobilehome have been returned to the Agency, since the project could not proceed, and since there is no longer a home at the subject trailer space location. Mrs. Welz is asking consideration of the Agency to authorize payment of up to $90,000 to provide assistance in purchasing and rehabilitating a mobilehome in the Seal Beach Trailer Park (the amount previously committed by the Agency for assistance to this family) to be utilized for either of the following alternatives: ❑ Purchase of a unit within the Seal Beach Trailer Park with no rehabilitation work; or ❑ Purchase of a unit within the Seal Beach Trailer Park including rehabilitation work. Staff Request for Authorization of Payment of up to $90,000 to Provide Assistance in Purchasing and Rehabilitating a Mobilehome in the Seal Beach Trailer Park: Staff is requesting the Agency to authorize payment of up to $90,000 to provide assistance in purchasing and rehabilitating a mobilehome in the Seal Beach Trailer Park (the amount previously committed by the Agency for assistance to this family) to be utilized for either of the following alternatives for a period of 180 days from the adoption date of this resolution: ❑ Purchase of a unit within the Seal Beach Trailer Park with no rehabilitation work; or ❑ Purchase of a unit within the Seal Beach Trailer Park including rehabilitation work. Staff has been working with this particular situation since 2002, and this seems to be a reasoned approach to resolving the housing needs of this family in a manner that will allow her and the children to live in an appropriate and suitable living environment. If this approach is determined not appropriate by the Agency, there are no other alternative actions that staff has been able to identify to resolve this situation with a comparable result. Staff has not been able to identify other living units within the Trailer Park that are available at a purchase price that is affordable to Mrs. Welz, and there is no housing units outside of the Trailer Park that would be affordable to Mrs. Welz in her 2 Welz.Revision to Program Funding Guidelines.RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 11, 2005 current financial situation. Staff has been working diligently with Mrs. Welz in an attempt to resolve her situation, and trying to identify other solutions could become time - consuming and ultimately result in Mrs. Welz not being able to find appropriate housing within Seal Beach. An "Overview of Available Loan and Grant Programs offered by the Redevelopment Agency" is provided as Attachment 2 for the information of the Agency. FISCAL IMPACT: No impacts to the Agency. As indicated within the Staff Report, the Agency has already committed to funding loan and grants in the amount of $90,000 for assistance to Lori A. Welz. RECOMMENDATION: Adopt Resolution No. , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Payment of up to $90,000 to Provide Assistance in Purchasing and Rehabilitating a Mobilehome in the Seal Beach Trailer Park (Welz). NOTE I ►i APPROV - : /e Whittenberg Jo . Bahorski, Executive Director Director of Development Servi R; evelopment Agency Attachments: (2) Attachment 1: Resolution No. , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Payment of up to $90,000 to Provide Assistance in Purchasing and Rehabilitating a Mobilehome in the Seal Beach Trailer Park (Welz) Attachment 2: Overview of Available Loan and Grant Programs offered by the Redevelopment Agency 3 Welz.Revision to Program Funding Guidelines RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 1I, 2005 ATTACHMENT 1 RESOLUTION NO. , A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $90,000 TO PROVIDE ASSISTANCE IN PURCHASING AND REHABILITATING A MOBILEHOME IN THE SEAL BEACH TRAILER PARK (WELZ) 4 WeIz.Revision to Program Funding Guidelines RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 11, 2005 RESOLUTION NO. A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $90,000 TO PROVIDE ASSISTANCE IN PURCHASING AND REHABILITATING A MOBILEHOME IN THE SEAL BEACH TRAILER PARK (WELZ) The Redevelopment Agency of the City of Seal Beach hereby resolves as follows: SECTION 1. In 2002 the Redevelopment Agency ("Agency") adopted 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 staff and housing consultants have been working with Edward A. and Lori A. Welz since 2002 to allow them to purchase a mobilehome in the Seal Beach Trailer Park, undertake rehabilitation of that mobilehome, and live in the unit, along with their two children. The City was processing applications for all 3 programs to assist this family with a maximum funding level of $90.000.00. SECTION 3. On April 4, 2003, the Agency funded a MAP loan in the amount of $30,000 to this family for the purchase of a unit within the Seal Beach Trailer Park. On June 18, 2003 the Planning Commission approved a request to construct a second story on the subject mobilehome that was to be funded by the home improvement loan and grant programs in an amount of $60,000. It was subsequently determined that the approval included additions that were not allowable and a new application was approved on February 4, 2004. The approved project was then submitted to the Coastal Commission by the project applicants on February 24, 2004. SECTION 4. On April 6, 2004 the husband, Edward A. Welz was killed in a fire at the subject mobilehome and the unit was destroyed. The initial funding commitments were based on the incomes of both the husband and wife and assistance from family members. Under the current circumstances, Lori A. Welz is not able to proceed with the originally contemplated project. SECTION 5. The loan funds to allow for the purchase of the mobilehome have been returned to the Agency, since the project could not proceed, and since there is no longer a home at the subject trailer space location. 5 Welz.Revision to Program Funding Guidelines.RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 11, 2005 SECTION 6. The Agency hereby directs the Chairman of the Redevelopment Agency to instruct City Staff and the City's Housing Consultant to process an application for funding assistance in an amount not to exceed $90,000 (the amount previously committed by the Agency for assistance to the Welz family) to be utilized for either of the following alternatives for a period of 180 days from the adoption date of this resolution: ❑ Purchase of a unit within the Seal Beach Trailer Park with no rehabilitation work; or ❑ Purchase of a unit within the Seal Beach Trailer Park including rehabilitation work. SECTION 7. This direction by the Agency is for this particular set of circumstances and neither Agency Staff nor the Agency Housing Consultant shall utilize this authorization in representing to any other future program participant that any alternative funding program is available except that previously approved by the Agency. Any such future request shall require individual review and consideration by the Agency. SECTION 8. 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 at a meeting thereof held on the day of , 2005 by the following vote: AYES: Agency Members NOES: Agency Members ABSTAIN: Agency Members ABSENT: Agency Members CHAIRMAN ATTEST: 6 Welz.Revision to Program Funding Guidelines RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welt - Seal Beach Trailer Park) Redevelopment Agency Staff Report July I1, 2005 SECRETARY STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, California, and Secretary to the Seal Beach Redevelopment Agency, do hereby certify that the foregoing resolution is the original copy of Resolution Number 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 regular meeting thereof held on the day of , 2005. Linda Devine, City Clerk/Secretary Seal Beach Redevelopment Agency 7 Welz.Revision to Program Funding Guidelines.RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welt - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 11, 2005 ATTACHMENT 2 OVERVIEW OF AVAILABLE LOAN AND GRANT PROGRAMS OFFERED BY THE REDEVELOPMENT AGENCY 8 Welz.Revision to Program Funding Guidelines.RDA Staff Report Request to Authorize Modification of Adopted Loan And Grant Program Guidelines (Welz - Seal Beach Trailer Park) Redevelopment Agency Staff Report July 11, 2005 Overview of Available Loan and Grant Programs Offered by the Redevelopment Agency In 2002 the Agency approved various loan and grant programs to provide assistance to qualified low- and moderate - income persons and families within the community in compliance with the requirements of State law. Those programs are briefly summarized below: A. Owner - Occupied Home Improvement Loan Program: ❑ The loan is deferred until the homeowner sells or refinances the property or a change in title occurs. After 10 years, 1 /10th of the principal and interest is forgiven each year until it is entirely forgiven. ❑ The Owner - Occupied Home Improvement Loan Program offers a very low interest rate of 2% to all income - qualified program participants. ❑ The maximum available loan amount is $50,000. ❑ Owner occupied single - family residences, mobile homes, and condominiums qualify for this program. ❑ 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. B. Owner - Occupied Home Improvement Grant Program: ❑ The maximum available grant amount is $10,000. ❑ Owner occupied single - family residences, mobile homes, and condominiums qualify for this program. C. Mortgage Assistance Program (MAP) Loan Program: ❑ Maximum assistance is $35,000. ❑ A "silent second" is placed on the property, accruing interest at 2% annually. ❑ If property is not re -sold in 30 years, the loan is forgiven. ❑ If property is re -sold within the 30 years to a qualified low- or moderate - income purchaser, the remaining loan obligation is assumed by the new purchaser. ❑ If home is sold within 30 years to a non - qualified low- or moderate - income purchaser, then the loan is due and payable at the time of sale, including accrued interest and a percentage of the equity increase in the property. If sold between 30 and 45 years, there is no accrued interest to be paid. These programs were established to assist owner - occupied single - family residences, mobile homes, and condominiums that are occupied by persons and families that qualify under the low- and moderate - income provisions of State and Federal laws. 9 WcIz.Rcvision to Program Funding Guidelines.RDA Staff Report RESOLUTION NUMBER 05-08 A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $90,000 TO PROVIDE ASSISTANCE IN PURCHASING AND REHABILITATING A MOBILEHOME IN THE SEAL BEACH TRAILER PARK (WELZ) The Redevelopment Agency of the City of Seal Beach hereby resolves as follows: SECTION 1. In 2002 the Redevelopment Agency ( "Agency ") adopted 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 staff and housing consultants have been working with Edward A. and Lori A. Welz since 2002 to allow them to purchase a mobilehome in the Seal Beach Trailer Park, undertake rehabilitation of that mobilehome, and live in the unit, along with their two children. The City was processing applications for all 3 programs to assist this family with a maximum funding level of $90.000.00. SECTION 3. On April 4, 2003, the Agency funded a MAP loan in the amount of $30,000 to this family for the purchase of a unit within the Seal Beach Trailer Park. On June 18, 2003 the Planning Commission approved a request to construct a second story on the subject mobilehome that was to be funded by the home improvement loan and grant programs in an amount of $60,000. It was subsequently determined that the approval included additions that were not allowable and a new application was approved on February 4, 2004. The approved project was then submitted to the Coastal Commission by the project applicants on February 24, 2004. SECTION 4. On April 6, 2004 the husband, Edward A. Welz was killed in a fire at the subject mobilehome and the unit was destroyed. The initial funding commitments were based on the incomes of both the husband and wife and assistance from family members. Under the current circumstances, Lori A. Welz is not able to proceed with the originally contemplated project. SECTION 5. The loan funds to allow for the purchase of the mobilehome have been returned to the Agency, since the project could not proceed, and since there is no longer a home at the subject trailer space location. SECTION 6. The Agency hereby directs the Chairman of the Redevelopment Agency to instruct City Staff and the City's Housing Consultant to process an application for funding assistance in an amount not to exceed $90,000 (the amount previously committed by the Agency for assistance to the Welz family) to be utilized for either of the following alternatives for a period of 180 days from the adoption date of this resolution: ❑ Purchase of a unit within the Seal Beach Trailer Park with no rehabilitation work; or ❑ Purchase of a unit within the Seal Beach Trailer Park including rehabilitation work. SECTION 7. This direction by the Agency is for this particular set of circumstances and neither Agency Staff nor the Agency Housing Consultant shall utilize this authorization in representing to any other future program participant that any alternative funding program is available except that previously approved by the Agency. Any such future request shall require individual review and consideration by the Agency. SECTION 8. 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 at a meeting thereof held on the 1 lth day of July , 2005 by the following vote: AYES: Agency Members NOES: Agency Members ABSTAIN: Agency Members ABSENT: Agency Members CHAIRMAN ATTEST: CITY CLERK/SECRETARY STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, California, and Secretary to the Seal Beach Redevelopment Agency, do hereby certify that the foregoing resolution is the original copy of Resolution Number 05 -08 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 regular meeting thereof held on the 1 l th day of July , 2005. City Clerk/Secretary Seal Beach Redevelopment Agency