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HomeMy WebLinkAboutSPECIAL MEETING - HCDAr7 w DATE: September 15, 1981 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: WILLIAM HUSTON, CITY MANAGER PECIAL COUNCIL MEETING 9-16-81 Inter-Com It is recommended that the City Council authorize the Mayor to sign a Cooperation Agreement between the City and the County of Orange which provides for the City's participation in the Housing and Community Development Block Grant Program. It is also recommended that the City Council direct Staff to file an application for funding of the "B" Street improvements project and Housing Rehabilitation Program. 0-1ON 471 IT The City Council has conducted two public hearings with regard to whether the City should participate in the HCDA Program and, if it-did, the types of programs that should be proposed for funding. Following the hearings, the City Council decided not to participate in a program based upon its concern that there was no assurance that Tustin would receive funds and that the cost of administering the program would outweigh its benefits. Subsequent to the public hearings, residents in the vicinity of "B" Street requested that the City Council reconsider its decision. City Council directed Staff to meet with the County for the purpose of determing what, if any, assurances the County would grant concerning the availability and allocation of HCDA funds to the City of Tustin. DISCUSSION: Attached are a letter from the County Housing and Community Development Program Manager and the Cooperation Agreement which would provide for the City's participation in the program. The letter is in response to the City Council concern about an assurance that any funds earmarked for the City will, in fact, be available and spent in the City of Tustin. You will note that the County Program Manager makes the statement that "there is an excellent chance that the Board of Supervisors would approve a request for a reasonable amount of funds to be used for home rehabilitation due to the fact that such a project is a high priority item." The letter also indicates that other types of projects are eligible for HCDA funding. In essence, the County is saying that if the City decides to Q enter the program it must then file an application for specific projects and assuming the projects fall within the County and Federal guidelines, funds will be available. With regard to the home rehabilitation program, Staff has previously recommended that if the City Council decides to establish such a program that the City contract with the County which should be responsible for the administration of a Home Rehabilitation Program. Any administrative cost charged by the County to administer a Home Rehabilitation Program would be allocated from the City's HCDA entitlement. In other words, there would be no direct City costs except for whatever staff time would be required to complete paperwork and monitor the County's performance. It has been my experience that the benefit of an HCDA Housing Rehabilitation Program outweighs the cost of administering the program; this assumes that the County has the Staff to administer the program. It is my understanding that based upon the City's prior involvement in the HCDA Program and that of other Orange County cities, the program should be successful. Although the County has not made a commitment concerning the amount of available HCDA funds, Staff has estimated that the City could be entitled to approximately $150,000 for each of fiscal years 82/83, 83/84 and 84/85 (a total of $450,000). If the City Council approves the Cooperation Agreement,the next step would be to file an application for funding. Staff recommends that the City Council authorize applications for "B" Street improvements project (estimated cost of $315,000) and that the balance ($135,000) be allocated for a Housing Rehabilitation Program. Following the County's consideration of the City's application, the matter would be referred back to the City Council for a final determination as to whether the City should actually proceed with any approved projects. The City Council is not committing itself at this point to actually carry out an HCDA funded project. If following applying for the funds, it appears there are any County or Federal requirements which mitigate the effectiveness of the project, the City Council would have the right to terminate the City's participation in the Program. WILLIA14 WSTCN, City Manager WH:dmt attachments MURRAY STORM UM-rY C:)F= DIRECTOR DHONGCHAI PUSAVAT 2 1 PROGRAM MANAGER 5 3 RANG PE MAILING ADDRESS: P.O. BOX 4048 SANTA ANA, CA 92702 ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT PROGRAM OFFICE 1200 N. MAIN STREET SANTA ANA, CALIFORNIA FILE (714!834 -5200 September 11, 1981 Mr. James Sharp, Mayor and City Council City of Tustin 300 Centennial Way Tustin, California 92680 Honorable Mayor and City Council: This letter is to clarify concerns about the Orange County H/CD program expressed by the Tustin City Council in a recent meeting and also to give a reasonable assurance that any funds earmarked for use in the City of Tustin will be spent in the City of Tustin only. Funds approved for use in Tustin for specific projects by the Board of Supervisors will not be charged for administrative costs by the County. The exception to this would be a request on the part of the City for the County to administer a specific program, such as rehabilitation, within the City. These administrative costs will be fixed by contract between the County and City. There is an excellent chance that the Board of Supervisors would approve a request for a reasonable amount of funds to be used for home rehabilitation, due to the fact that such a project is a high priority item. Should you choose to apply for such a project, and should it be approved, two avenues are open to you. They are outlined below: A. The City of Tustin could choose to contract with the County for the administration of a rehabilitation program. This contract must be approved by the Tustin City Council prior to implementation. Any administrative charges/costs would be detailed in this contract. In any event, these charges cannot exceed 20%. It should be noted that these costs have historically run less than 201. B. The City of Tustin could choose to administer its own housing rehabilitation program. Reasonable salary costs can be paid under Block Grant regulations. The City of Tustin is not limited to requesting funds for only one project. Funds may be requested for any of the activities listed below: City of Tustin Page 2 1. Acquisition of Real Property 2. Public Works, Facilities, Site Improvements 3. Code Enforcement 4. Clearance, Demolition, Rehabilitation 5. Rehabilitation Loans and Grants 6. Special Projects for Elderly and Handicapped 7. Payments for Loss of Rental Income 8. Disposition of Real Property 9. Provision of Public Services 10. Payment of Non-Federal Shares 11. Completion of Urban Renewal Projects 12. Relocation payments and Assistance 13. Planning and Management Development 14. Administrative 15. Continuation of Model Cities Activities The City Council of Tustin is the only entity which may submit proposed projects for consideration by the Board of Supervisors. However, be assured that the County will not require the City to undertake any project(s) that the City has not contracted for. For your information, our records indicate that the City of Tustin has already held the two required Public Hearings, therefore, it is not necessary to hold an additional Public Hearing to meet HUD regulations. If I can be of any further assistance please don't hesitate to contact me at 834-2075. Sincerely, B-65b Putdlat, Program Manager Housing and Community Development SF:dlc807(47) 1 2 19-- 3 4 5 6 7 8 9 10 11 12 13 14 15 ffAl 19 20 21 22 23 24 M11 JA1 COOPERATION AGREEMENT THIS AGREEMENT is entered into this day of is t CITY OF TUSTIN a municipal corporation, hereinafter referred to as CITY, COUNTY OF ORANGE, a political subdivision of the State of California and recognized Urban County under the Federal Housing and Community Development Act of 1974 & 1977, hereinafter referred to as COUNTY. WHEREAS, Title I of the Housing and Community Development Acts of 1974 and 1977, hereinafter referred to as ACT, makes available to cities under 50,000 popula- tion and the unincorporated area of the County of Orange certain sums to be used for a broad range of Housing and Community Development activities, and WHEREAS, said ACT authorizes such cities-and said COUNTY to enter into cooperation agreements in order to cooperate in undertaking or assisting in under- taking, essential community development and housing assistance activities, specifi- cally urban renewal and publicly assisted housing; NOW, THEREFORE, the parties agree as follows: 1. This Agreement shall constitute a cooperation agreement between the parties within the meaning of Section 102(a)(b) of the ACT. The parties agree to cooperate in the undertaking, or assisting in undertaking, community development and lower income housing activities, specifically urban renewal and publicly assisted housing. 2. COUNTY shall be responsible for the preparation, adoption and submission of an Urban County Application to the Department of Housing and Urban Development, hereinafter referred to as "HUD." In the preparation of said application, COUNTY shall give due consideration to CITY's analysis of community development needs and proposed activities. 1 3. CITY shall comply with the COUNTY's community development program and 2 the Housing Assistance Plan, and all laws, regulations and policies applicable to 3 said grant. 4 4. Both COU14TY and CITY agree to take all required activities to comply 5 with the provisions of Title VI of the Civil Rights Act of 1964, Title VIII of 6 the Civil Rights Act of 1968, Section 109 of the Housing and Urban Development 7 Act of 1968 and other civil rights laws. 8 5. In the event COUNTY's Urban County application is approved by HUD, 9 COUNTY shall contract with the CITY to utilize any such grant funds received 10 from HUD which are attributable to activities conducted by CITY, unless another 11 form of distribution is required by HUD. 12 6. This agreement shall be for the three year program period covering 13 the 8th, 9th, and 10th year Housing and Community Development Block Grant applications. 14 In no event shall this agreement be terminated before this three year period. 15 7. The activities to be undertaken during the term of this Agreement will 16 be chosen by CITY ^from the following listing: i 17 a. Acquisition of Real Property b. Public Works, Facilities, Site Improvements 18 c. Code Enforcement d. Clearance, Demolition, Rehabilitation 19 e. Rehabilitation Loans and Grants f. Special Projects for Elderly and Handicapped 20 g. Payments for Loss of Rental Income h. Disposition of Real Property 21 i. Provision of Public Services j. Payment of Non— Federal Shares 22 k. Completion of Urban Renewal Projects 1. Relocation Payments and Assistance 23 M. Planning and Management Development n. Administrative 24 0. Continuation of Model Cities Activities 25 8. a. CITY shall indemnify, hold harmless and defend COUNTY, its officers, 26 agents and employees against all liability, claims, losses, demands and actions for 27 injury to or death of j persons or damage to property arising out of or alleged to arise 28 out or in consequence of this Agreement, provided such liability, claims, demands, j -2- 1 losses or actions are claimed to be due to the acts or omissions of CITY, its offi- 2 cers, agents or employees in the performance of this Agreement, including any 3 activities conducted by CITY under its application. 4 b. In addition, CITY shall indemnify and hold harmless COUNTY against 5 any liability, claims, losses, demands, and actions incurred by COUNTY as a result of 6 a determination by HUD that activities undertaken under CITY's application failed to 7 comply with any laws, regulations, or policies applicable thereto or that any funds 8 forwarded to CITY under this Agreement were improperly expended. 9 c. The provisions of paragraphs 1, 3, 4, S, 6 and 7 of Section 2775 10, of the California Civil Code, as said section exists on the effective date of this 11 Agreement, shall be applicable to the above indemnification provisions. Transmittal 12 to CITY of any pleadings served upon COUNTY shall be deemed to be a request to 13 defend. 14 9. COUNTY shall have the right to audit CITY's records to determine com- 15 pliance with this Agreement. 16 17 111 18 1/I 19 /Il 20 21 Ill 22 111 23 24 11/ 25 Ill 26 27 I1/ 28 Ill -3- A IN WITNESS THEREOF, CITY has caused this agreement to be executed by its Mayor and attested by its Clerk and COUNTY has caused this contract to be executed by the Chairman of the Board of Supervisors and attested by its Clerk, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. CITY OF Dated: By ATTEST: City Clerk Approved to form: City Attorney for the City of By Dated: ATTEST: JUNE ALEXANDER Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM: ADRIAN KUYPER, County Counsel ORA14GE COUNTY, CALIFORNIA Le P By H/ CD AP:dlcll62(3) -4- Mayor COUNTY OF ORANGE, a political subdivision of the State of California BY Chairman of the Board of Supervisors PETITION YtiY We the residents of Tustin on "B", "C", and Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: 1. Public improvements in the above—mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Name Address Phone Number V, 7 AQ - (z� rro.,goO `0 PETITION to We the residents of Tustin on "B", "C", and Mitchell Streets request our repre- sentntives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: 1. Public improvements in the above—mentioned oren, 2. Home rehabilitation loans to maintain and enhance the character of our area. go T�nt, 4 f Qv WAINOV" Address Phone Number J�r J AA U ZVI Lo­!� TY PETITION We the residents of Tustin on "B", "C", and Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: I. Public improvements in the above—mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Name Address Phone Number y. r- 1_4 PETITION I We the residents of Tustin on "B", "C", and 'Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: X A­__ _j U 1. Public improvements in the above—mentioned area. 2. home rehabilitation loans to maintain and enhance the character of our area. Name Address Phone Number of Y jLr 4_1 NO b" LA6 f' V" > -4- 1 11% _� � 7 , 2j "C' C 9, Q 7 C S5 td '74 f n, )�j J J 0 � � PETITION ,vim" We the residents of Tustin on "B ", "C ", and Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange HJCD program. Our main priorities were and still are as follows: e� ,j 1. Public improvements in the above - mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Name Address LILL f F' =t y 1 7 cam~° ;�1 (. 64, �...i :'.-.✓ Cam,, 3t`t�tr"t F 1 4, - ,�.....>.Y� .� I N 9 ' c - ( _y .n Phone Number Ai j .., r 56 1 /w LILL f F' =t y 1 7 cam~° ;�1 j* �r �...i :'.-.✓ Cam,, 3t`t�tr"t F 1 4 - ,�.....>.Y� .� I N 9 ' c - ( _y .n Ai j .., r 56 1 /w F' =t y 1 7 cam~° ;�1 y 4 � r N 9 ' t jg _y .n r Ld E y a �r f PETITION We the residents of Tustin on "B", "C", and Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: I. Public improvements in the above-mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Name Address Phone Number N ­4_1 tt I'A 'ZI 2 -4 ele -_A A, I A Art A, w. 'ZI 2 -4 ele -_A A, I PETITION We the residents of Tustin on "B", "C", and Mitchell Streets request our repre- sentatives to the Tustin City Council to continue the plans that we were entitled to under the County of Orange H/CD program. Our main priorities were and still are as follows: 1. Public improvements in the above—mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Name ui We the residents of Tustin on sentallives to the Tustin City to under the County of Orange Our main priorities were and PETITION J "B", Coun H/ CD Mill "C", and Mitchell Streets req --il to continue the plans that program. are as follows: nest our repre- we were entitled I. Public improvements in the above-mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. Address Phone Number 731 �22 5 V 7­2 LD L LY? 6-Z 172-14- 2-1 7,12 731 V Z/,Z A the residents of 7ustin an "V, EC", and Mitchell Streets rcq"esr our repre- sentnAves to the Tustin City Council to continue the plans that we were out i A ed to under the Colmly of Crange H/CD program. — ------------ Our main priorities vere and still are as follows: 1 - Public improvements in the a0ve—mentioned area. 2. Home rehabilitation loans to maintain and enhance the character of our area. A me Address Phone Number Ab S-1 fit. _A P, J ell- ncl) — ------------ Q11i - z AN - ----- MONA> PETIT TONN repre- sentatives iii the Tustin City Council to Ct:n intro the 1 tn,fs that GC er @'Milled to under Lhe County of Orange H/CD program. Our t"!s -`' priorities we;'s, and i..._.. .. are as follows; 1. Public improvements in the above—mentioned nron. r -P [.C?L:+. rehabilitation . loans to maintain and e<,::,a _ "€` the character of our area. Jame f e i, i r a f{j i Address Phone Number r`" r � ; I � 'z r ;? 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