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Home My WebLink AboutRDA AG PKT 2011-03-28 #2REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE: March 28, 2011 TO: Chairman and Agency Members THRU: Jill R. Ingram, Acting Executive Director FROM: Mark H. Persico, AICP, Director of Development Services SUBJECT: APPROVE MODIFICATIONS TO HOME IMPROVEMENT PROGRAM (HIP) SUMMARY OF REQUEST Adopt Resolution No. 11 -03 modifying the Home Improvement Program (HIP) BACKGROUND The Redevelopment Agency originally established the Residential Rehabilitation Program in July 1998. Since that time the program has been modified several times to reflect current needs within the community. The most recent revision was adopted in July 2008. The HIP loan program is separate from the grant program the City operates in Leisure World and there are no changes being suggested for that program. FINANCIAL IMPACT No fiscal impacts to the City General Fund. This program is presently funded by the Redevelopment Agency housing set -aside funds, and that funding source will not change. ANALYSIS The Redevelopment Agency (RDA) has excess housing funds that should be used to improve the quality of life for qualifying homeowners. While there has been considerable discussion about eliminating redevelopment statewide, thus far no legislation has passed through the legislature. Furthermore, all of the proposals to eliminate redevelopment have protected affordable housing programs. Staff is monitoring the legislation and if redevelopment agencies, or affordable housing programs are eliminated the Seal Beach HIP would be Agenda Item 2 terminated. But until that happens, staff is seeking to assist residents in Seal Beach to the maximum extent possible using redevelopment housing funds. In the current fiscal year (FY 2010 -11) the RDA is generating $483,300 in low and moderate income housing set -aside funds, and the RDA is estimated to generate $444,350 in FY 2011 -12 in set -aside funds. Expenditures for the current fiscal year are only $73,761 and expenditures for FY 2009 -10 were $212,727. Because the expenditures have been significantly lower than revenue we currently have an excess in set -aside funds. The current program limits allow for a $25,000 deferred loan and an additional $10,000 grant for qualified owner - occupied homes and mobilehomes. The loan amount is forgiven over a period of years, such that the owner may never have to repay the loan if they own their unit long enough. The primary beneficiaries of the current program are residents of the trailer park, although a few HIP loans have been approved outside the trailer park. Over the past several months staff has been working with various residents in the trailer park to address the issue of smaller lots located along the greenbelt. Due to unique size and shape of those lots, it has been very hard to accommodate new units. But in working with Silvercrest Homes staff has developed a small floor plan unit that fully complies with the building code requirements for Trailer Parks. The estimated full cost for these units is $61,650, which includes the trailer price of $37,000, removing the existing trailer and full permits and installation for the new trailer. The revised HIP loans would allow higher loan limits and eliminate the grants. The new program would have a loan limit of $60,000 at zero percent interest with the principal amount due on sale. However, if the property is sold within 10 years, the owner would be required to repay the principal and a deferred interest rate of 7% compounded annually. Staff is also suggesting elimination of all other loan and grant programs. If the new loan limits are adopted, the RDA could provide 7 -8 loans per year based upon estimated income. RECOMMENDATION Adopt Resolution No. 11 -03 modifying the Seal Beach Redevelopment Agency's Home Loan Improvement Program. SUBMITTED BY: Mark H. Persico, AICP Director of Development Services NOTED AND APPROVED: ��L �, - Iv it . Ingram, Acting Executive Director Attachment: A. Resolution No. 11 -03 B. Greenbelt Replacement Program (Estimated Costs) ATTACHMENT "A" RESOLUTION NO. 11 -03 A RESOLUTION APPROVING MODIFICATIONS TO THE SEAL BEACH REDEVELOPMENT AGENCY HOME IMPROVEMENT PROGRAM (HIP) RESOLUTION NUMBER 11 -03 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH APPROVING MODIFICATIONS TO THE HOME IMPROVEMENT PROGRAM (HIP) THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH HEREBY RESOLVES AS FOLLOWS: Section 1 . In July 1998 the Redevelopment Agency ("Agency ") created the first Home Improvement Loan Program funded through Agency Low- and Moderate Income set -aside funds. Section 2 . The Agency has amended the guidelines over the years to reflect current community needs with most modifications adopted in July 2008. Section 3. The HIP loan program shall fully comply with all requirements of California Redevelopment Law regarding use of Low- and Moderate Income Housing set -aside funds. Section 4. The Agency hereby adopts the following HIP loan program guidelines: A. There shall be a HIP Loan Review Committee consisting of a least 3 staff members; B. The program shall be available to qualified residents of owner - occupied residents units only; C. The maximum loan amount shall be $60,000 at a 0% interest rate with principal due upon sale or transfer of property; D. For property sold within 10 years of loan origination, the borrower shall repay the principal amount plus a deferred interest payment of 8% compounded annually; and E. Redevelopment Agency staff shall develop the processes and procedures necessary to implement this loan program. Section 5. The Agency hereby consolidates all other existing loan and grant programs into this HIP loan program. Section 6 . The Secretary/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 held on the 28th day of March , 2011 by the following vote: AYES: Agency Members NOES: Agency Members ABSENT: Agency Members ABSTAIN: Agency Members ATTEST: Chairman Secretary/City Clerk Resolution Number 11 -03 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 11 -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 regular meeting held on the 28th day of March , 2011. Secretary/City Clerk ATTACHMENT "B" GREENBELT REPLACEMENT PROGRAM (ESTIMATED COSTS) 03 +0390ty of Seal Beachol +000 92D050Greenbelt Replacement Program o, +000 3/2/11 Descr,�pt�omof.:Cost: ;; %::.::. •:; :. ; 'T:y ' ':, `; #1 Bid' #2 F; Bid` #3 Price of Home $37,000.00 $0.00 $0.00 Remove and dispose of existing units (including porches, decks, add -ons, sheds, etc. & lot clean up) $5,000.00 Grade and install aggregate road base pad for new home $1,000.00 Construct drypit (see page pit) at each corner of lot for water migration. Specs: 6 ft deep 15" diameter with Marafi Filter fabric, plastic landscape in let & 314 rock $950 each per lot $3,800.00 Concrete flat work /walkway for door approaches avg 50 sqft $350.00 Install vertical hardiboard skirting around home $1,600.00 Install 2x4 treated bottom rail for skirting $160.00 Construct (2) Trex up /in steps with wood rails (5 riser) 36" wide w /3x4 landing $2,690.00 Home`Installaton:. -'� ` _ = < • ' • � `�'� ` " ''�°`� " � ** *Set house (20 x 20 Silvercrest) $2,145.00 Install tie down system & undercarraige material (ETS -107G system) $1,650.00 Install plastic for gorund vapor barrier $375.00 Drywall close up @ marraigeline $900.00 Repair drywall cracks throughout (min 4hrs ot$50 1hr) $200.00 Install carpet $4.50 /Yd (est. 30 Yd & prep) $225.00 Silvercrest perimeter blocking $1,200.00 Permit /Coastal commission (estimated -may vary) $500.00 Permit for house installation (city of Seal Beach) $450.00 Transportation of 20 x 20 unit $1,700.00 Gas flex $65.00 :C, tr a ..! „i .�. .. .. .. �...y • , . . ^1•. ip . v, •:, ` M� -• . •• , f._ .: �. `� $Cs 'Sv`, •. xw Water from home to point of connection $51LF(est20'run) $100.00 Gas from home to point of connection $51LF(est20'run) $100.00 Sewer from home to point of connection $5 1LF(est20'run) $100.00 Electrical from home to point of connection $51LF(est20'run) $160.00 Temporary steps 1 $180.00 1 Total Costl $61,650.00 1 03 +039City of Seal Beachos +000 92D050Greenbelt Replacement Program of + 000 3/2/11 PofentiafAdditional.` Costs., ' Crane: if necessary for installation (estbetween $4,000 - $8,000) Assisting crane putting home on lot (est$800 -$1000 per hour) Permanent foundation system installation (SPI 30 -5F) for purpose of financing & obtaining 433A form ($2400) Disclaimers: � ... ..�;�:.3 f::� ,�� .. .> •..; �:. . • :`�..,;`:;,•; �, Prices may vary due to unforseen conditions II o and removal of homes do not include hazardous Trial abatement. Tests for each individual lot to be rformed by others. * * * ** *Must meet specifications published in the manufacture installation manual and attachments for the purpose of obtaining a certificate of occupancy; remove shipping plastic and wood carefully without damaging home; remove tires and axles; remove tongue and place under home; block and level piers; lag floors, interior walls and roof; install standard tie down system; arrange for set up/ lag inspection with building inspector; install flashing, vents, roof jacks and shingles to close up roof; prep marraigeline floor for carpet; install exterior trim over marraige lines and paint; connect crossovers (power, water, sewer, head duct); install vapor barrier (if required); adjust interior and exterior doors to swing, close, latch and lock smoothly; hook up sewer, water, gas, and electric; install baseboard at marriage lines las required; repair, texture and paint drywall cracks; clean up all spilled texture and paint overspray; sweep floors, remove scraps and debris created during setup.