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Home My WebLink AboutCC AG PKT 2003-08-25 #K AGENDA REPORT 11 ��/ to / r Ot DATE: August 25, 2003 s TO: Mayor and Members of the City Council ® f i THRU: John B. Bahorski, City Manager kt e p c FROM: Lee Whittenberg, Director of Development Services SUBJECT: APPROVAL OF LOAN TO REDEVELOPMENT AGENCY - HOME IMPROVEMENT PROGRAMS SUMMARY OF REQUEST: Adopt Resolution No. , approving a loan to the Redevelopment Agency not to exceed $3,500 for consultant services to prepare an application for funding through the CalHome program of the State Department of Housing and Community Development. Receive and File Staff Report. BACKGROUND: • Staff has presented a report to the Redevelopment Agency this evening to provide updated information regarding the success of these programs and the problems currently experienced due to a lack of available funding to continue to fund projects that are almost ready for final approvals and execution of the appropriate documents between program participants and the Redevelopment Agency. At this time, the Redevelopment Agency has exhausted all available funds for the various rehabilitation loan and grant programs and mortgage assistance programs. Thus, the Agency will not be able to authorize funding of any pending applications until further notice. A total of 10 applicants are unfortunately subject to the suspension of the program at this time due to the lack of funds. There are 4 applicants within the Seal Beach Trailer Park and 6 applicants throughout the remainder of the community. Following is the current status of these program participants: ❑ 4 have selected a contractor to proceed with the work, and have executed a contract with the selected contractor ❑ 3 have received bids from contractors and have not selected a contractor, and ❑ 3 are in the process of receiving bids from contractors. The total funding for those projects placed in suspension at this time is estimated to be $509,200. Receipt of the MPROP funds will completely fund those projects and have AGENDA ITEM Z:\My Documents \RDA\ tome Imp Program Procedures \CalHome Loan Program.CC Staff Report.doc \LW\08 -20 -03 Loan to Redevelopment Agency for CalHome Application Preparation — Home Improvement Programs City Council Staff Report August 25, 2003 additional funding of approximately $400,000 for future program participants. Please refer to the Redevelopment Agency Staff Report regarding "Request for Direction to Pursue Additional Funding Sources — Home Improvement Programs ", dated August 25, 2003 for additional information regarding the status of the MPROP loan. Overview of Additional Funding Sources Identified by Staff: • CalHome Program (State of California Department of Housing and Community Development): Staff has investigated this program and the Redevelopment Agency has authorized staff to prepare an application for funding under this program, upon approval of the requested loan for the purposes of having the City's housing consultant, CivicStone, prepare the necessary application materials. A complete application must be submitted to the State by October 8, 2003. Since the Redevelopment Agency and City Council will not be meeting between this evening and September 22, staff has requested that both the Agency and City Council direct staff to take the appropriate actions to be taken by both bodies for staff to complete the application materials in a timely manner. Please refer to the Redevelopment Agency Staff Report regarding "Request, for Direction to Pursue Additional Funding Sources — Home Improvement Programs ", dated August 25, 2003 for additional information regarding the CalHome program. The program guidelines do not allow an applicant with a population of less than 400,000 persons to request total funding of more than $500,000.00. Staff intends to request $498,000.00. This program provides the flexibility to provide a comparable program to that offered by the Redevelopment Agency. None of the impacted program participants are requesting mortgage assistance, and therefore the requested application for funding will be only for the rehabilitation program assistance. Provided below is a brief summary of the directions requested by staff this evening by both the Redevelopment Agency and the City Council: ❑ Redevelopment Agency: ❑ Authorize staff to proceed with the preparation of the necessary application materials for the CalHome Program; ❑ Adopt Resolution No. , requesting from the City Council a loan of not to exceed $3,500 from the City General Fund to allow for CivicStone to prepare the required application materials; ❑ Adopt Resolution No. , authorizing the submittal of the CalHome application by the Executive Director of the Redevelopment Agency and authorizing the Executive Director to take all actions necessary and appropriate to execute the application for $498,000 for rehabilitation program CalHome Loan Program.CC Staff Report 2 Loan to Redevelopment Agency for CalHome Application Preparation — Home Improvement Programs City Council Staff Report August 25, 2003 funding, the required Standard Agreement, and all other documents required by HCD fro participation in the program. ❑ City Council: ❑ Adopt Resolution No. , agreeing to a loan to the Redevelopment Agency of not to exceed $3,500 from the City General Fund to allow for CivicStone to prepare the required application materials, and setting forth the terms and conditions of the re- payment of said loan. FISCAL IMPACT: The lack of available funds for the program implementation has resulted in the suspension of the program at this time. All projects that have formally executed contracts and other required program documents by the Redevelopment Agency Executive Director will be able to proceed to completion., Projects that have not received formally executed documents by the Executive Director of the Redevelopment Agency are suspended until such time as funds are again available within the Redevelopment Agency Low- and Moderate- Income Housing Set -aside Fund. Potential funding sources of supplemental funds to allow the program to continue have been identified by Staff. A proposed allocation of loan funds in an amount not to exceed $3,500 from the City General Fund to the Redevelopment Agency is necessary to allow the application for CalHome funds to be submitted to the State Department of Housing and Community Development. Existing staff resources will be allocated to pursue potential funding for project implementation with the County of Orange and the State of California Department of Housing and Community Development. RECOMMENDATION: Adopt Resolution No. , approving a loan to the Redevelopment Agency not to exceed $3,500 for consultant services to prepare an application for funding through the CalHome program of the State Department of Housing and Community Development. Receive and File Staff Report. NOTED D APPROVED: • � i/ (i .. ill /I / Of Whittenberg John B h • rski Director of Development Service City ► anager CalHome Loan Program.CC Staff Report 3 Loan to Redevelopment Agency for CalHome Application Preparation — Home Improvement Programs City Council Staff Report August 25, 2003 Attachments: (1) • Attachment 1: Resolution No. . A Resolution of the City Council of the City of Seal Beach Recording a Loan to the Riverfront Redevelopment Agency of Seal Beach • CalHome Loan Program.CC Staff Report 4 Loan to Redevelopment Agency for CalHome Application Preparation- - Home Improvement Programs City Council Staff Report August 25, 2003 ATTACHMENT 1 RESOLUTION NO. , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH RECORDING A LOAN TO THE RIVERFRONT REDEVELOPMENT AGENCY OF SEAL BEACH CalHome Loan Program.CC Staff Report 5 Loan to Redevelopment Agency for CalHome Application Preparation— Home Improvement Programs City Council Staff Report August 25, 2003 • RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH RECORDING A LOAN TO THE RIVERFRONT REDEVELOPMENT AGENCY OF SEAL BEACH WHEREAS, at this time, the Redevelopment Agency has exhausted all available funds for the various rehabilitation loan and grant programs and mortgage assistance programs. Thus, the Agency will not be able to authorize funding of any pending applications until further notice, and WHEREAS, funds for these programs have always been available on a first -come, first serve basis. Due to the large number of applications that have been received, the state budget crisis and the delay in the State funding of a loan, there are no available un- obligated funds at the present time, and WHEREAS, a total of 10 applicants are subject to the suspension of the program at this time due to the lack of funds. There are 4 applicants within the Seal Beach Trailer Park and 6 applicants throughout the remainder of the community, and WHEREAS, staff has investigated the CalHome Program of the State of California Department of Housing and Community Development and is recommending that the Redevelopment Agency authorize staff to prepare an application for funding under this program, and WHEREAS, the Redevelopment Agency has requested through the adoption of Redevelopment Agency Resolution No. loan funds in an amount not to exceed $3,500 from the City General Fund to the Redevelopment Agency to allow for an application to be submitted for the CalHome program funds to the State Department of Housing and Community Development. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: CalHome Loan Program.CC Staff Report 6 Loan to Redevelopment Agency for CalHome Application Preparation — Home Improvement Programs City Council Staff Report August 25, 2003 1. Records a debt existing between the City and the Riverfront Redevelopment Agency in the amount of not to exceed $3,500.00 to allow for CivicStone to prepare the required application materials for the CalHome Program. 2. Said debt shall be the amount of $3,500.00 and shall be repayable to the City in two annual installments of $1,750.00, plus the interest rate obtained by the City for investment into the Local Agency Investment Fund (LAIF) per annum commencing July 1, 2004. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the day of , 2003. AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Mayor ATTEST: Joanne M. Yeo, City Clerk • • CalHome Loan Program.CC Staff Report 7 Loan to Redevelopment Agency for CalHome Application Preparation— Home Improvement Programs City Council Staff Report August 25, 2003 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is an original copy of Resolution Number on file in the Office of the City Clerk, passed, approved and adopted by the City Council of the City of Seal Beach at a meeting thereof held on the day of , 2003. Joanne M. Yeo, City Clerk City of Seal Beach CalHome Loan Program.CC Staff Report 8 ,