HomeMy WebLinkAbout08 (HOME) & (HCD) 11-06-00AGENDA RF 'ORT
NO. 08
i 1-0§-00
TO:
WILLIAM A. HUSTON, CITY MANAGER
FROM:
REDEVELOPMENT AGENCY STAFF
SUBJECT:
APPLICATION FOR HOME INVESTMENT PARTNERSHIP PROGRAM
(HOME) FUNDS FROM CALIFORNIA DEPARTMENT OF HOUSING
AND COMMUNITY DEVELOPMENT (HCD)
SUMMARY
Council approval is requested for the submission of an application for HOME
Investment Partnership Program (HOME) Funds from California Department of Housing
and Community Development (HCD).
RECOMMENDATION
It is recommended the Tustin City Council 1.) adopt Resolution No. 00-72 approving the
submission of an application to the California Department of Housing and Community
Development (HCD) for $1,500,000 in HOME Investment Partnership (HOME) funds;
and 2.) if the application for funding is approved, the City of.Tustin agrees to use the
HOME funds for eligible activities in the manner presented in the application as
approved by HCD.
FISCAL IMPACT
This action will have no fiscal impact on the City General fund at this time.
BACKGROUND/DISCUSSION
In accordance with a recent Notice of Funding Availability ("NOFA"), the California
Department of Housing and Community Development ("Department") is accepting
applications under the Home Investment Partnership Program ("HOME"), for funds
authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990.
The Department provides HOME funding from the federal government to eligible local
governments (State Recipients), and non-profit organizations certified with the State as
Community Housing Development Organizations ("CHDOs"), for eligible activities under
the HOME Program. The award of HOME funds is based on a competitive process
among the applicants. Criteria for the award of funds includes such things as:
demonstration of need; completeness of proposed activity guidelines; prior experience
with an activity proposed; etc.
William A. Huston
Authorization for HOME Program Application
November 6, 2000
Page 2
HOME funds are used by recipients to assist Iow-income households meet their housing
needs through various owner occupied and rental activities. Eligible activities include: 1)
New Construction; 2) Acquisition; 3) Rehabilitation; and 4) Tenant-Based Rental
Assistance. The City of Tustin, an eligible recipient, proposes to apply for HOME funds in
an amount of $1,500,000 for two activities: construction of a senior rental apartment
project, and for acquisition and substantial rehabilitation of multi-family rental units in the
South Central Redevelopment Project Area. Any financial assistance using HOME funds
for.the proposed activities will be in the form of loans, which will be repaid to the local
HOME accounts controlled by the City of Tustin.
HCD requires that any HOME fund awarded to be allocated to direct program and project
activities, excluding administrative costs, need to be matched with 25% local funds. If the
application for HOME funds is approved, staff would recommend that Community
Redevelopment Agency Low-Moderate Income Housing Set Aside Funds would be used
to meet the 25% match requirement in an amount up to $366,072. In addition, on October
6, 2000 the Redevelopment Agency authorized submission of an application for
$2,000,000 in Housing Enabled by Local Partnerships Program ("HELP") funds from the
California Housing Finance Agency ("CHFA") to be used for current unmet affordable
housing needs and priorities. If the HELP funds are awarded, it is anticipated that a
portion of those funds could to be used to leverage the Redevelopment Agency's funding
for the 25% match required by HOME.
In the event the City's application is approved, any required program documents will be
brought back to the City for approval.
Staff will be available at the City Council meeting to answer any questions the Council
may have.
Christine Shingleton/'",/ -
Assistant City Mana~e~r
_(Sef'C~r Project Manager
ccrpt/Nov.6staffreport
RESOLUTION NO. 00-72
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, HEREBY AUTHORIZES THE SUBMITTAL OF AN
APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING
UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM;
THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED
FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND
ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN
THE HOME INVESTMENT PARTNERSHIPS PROGRAM.
The City Council of the City of Tustin DOES HEREBY RESOLVE as follows'
I. The City Council finds and determines as follows:
A.
The City of Tustin, a political subdivision of the State of California,
wishes to apply for and receive an allocation of funds through the HOME
Investment Partnerships Program (hereinafter referred to as "HOME");
and
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The California Department of Housing and Community Development
("HCD") has issued a Notice of Funding Availability for the HOME
program and is authorized to approve funding allocations which will be
made available directly through the U.S. Department of Housing and
Urban Development (HUD) to be used for the purposes set forth in
Title II of the Cranston-Gonzalez National Affordable Housing Act of
1990, the implementing regulations set forth in Title 24 of the Code of
Federal Regulations, part 92, and Title 25 of the California Code of
Regulations commencing with section 8200; and
Co
HCD requires that the portion of the HOME funds allocated to direct
programs, excluding administrative costs, be matched with 25% local
funds; and
Do
The City of Tustin wishes to apply to HCD for an allocation of funds for
the maximum basic allowable limit, for a total combined allocation of
$1,500,000; and
The City Council hereby authorizes the submission of an apPlication to HCD
for an allocation of $1,500,000 in HOME funds in response'to the NOFA
issued on August 28, 2000 for the following activities:
1. Rental Rehabilitation' with or without acquisition for one hundred (100) units
- Estimated between 10 and 15 loans
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Resolution No. 00-72
Page 2
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Rental New Construction for fifty-four units
Borrower- City of Tustin
Project- Heritage Place
Match Funds- $250,000
Terms - 20 years 0% interest, due on sale or refinance
III. The Assistant City Manager is authorized to submit the application and
execute the Standard Agreement and all other documents required by the HCD or
HUD for participation in the HOME program, and any amendments thereto.
IV. The City CoUncil hereby attests that the City of Tustin will agree to use the
HOME funds for eligible activities in the manner presented in the application as
·
approved by the HCD and HUD, and in accordance with regulations cited above.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council held
on the 6th day of November 2000.
JEFFERY M. THOMAS, Mayor
PAMELA STOKER
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, do hereby certify that the whole number of the members of the
City Council of the City of Tustin is five; that the above and foregoing Resolution
No. 00-72 was duly passed and adopted at a regular meeting of the Tustin City
Council, held on November 6, 2000, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
CITY CLERK
JW:kd\ccresos\00-72 HOME Program.doc