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HomeMy WebLinkAbout02 (HOME) FUNDS (HCD) 11-06-00 RDA NO. 02 AGENDA RI" 0 RT ~ / ~ 11-06-00 r' , TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF ALLOCATION OF REDEVELOPMENT AGENCY FUNDS AS REQUIRED MATCHING FUNDS AND LEVERAGE FOR HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) FUNDS FROM CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) SUMMARY Agency approval is requested for the allocation of up to $366,072 from Low and Moderate Income Housing Set-Aside Funds to provide the required 25% matching and leveraged funds in connection with HOME Investment Partnership Program (HOME) Funds from the California Department of Housing and Community Development (HCD). RECOMMENDATION It is recommended the Tustin Community Redevelopment Agency 1.) adopt Resolution RDA 00-7 authorizing the allocation of up to $366,072 from Low-Moderate Income Housing Set-Aside Funds to provide the required 25% matching and leveraged funds required in connection with HOME activities. FISCAL IMPACT This action will have no fiscal impact on the City or Redevelopment Agency at this time. If the City of Tustin application for HOME funds is approved, any specific funding authorization for any HOME activity or project will be requested for Agency approval at that time. BACKGROUND/DISCUSSION On November 13, 2000 the City of Tustin will submit an application to the California Department of Housing and Community Development ("HCD") for $1,500,000 of funding under the Home Investment Partnership Program ("HOME"), authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990. The HCD provides HOME funds from the federal government to eligible local governments for eligible activities under the HOME Program. 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 William A. Huston Allocation of Funds for HOME Program November 6, 2000 Page 2 Assistance. The City of Tustin, an eligible State Recipient, proposes to apply for HOME funds in the amount of $1,500,000 for two activities: new construction of a senior rental apartment project, and the other for acquisition and substantial rehabilitation of multi- family rental units. Any financial assistance subsequently provided by the City or Agency to property owners or developers for proposed activities in the HOME application will be in the form of loans, which will be repaid to local HOME accounts controlled by the City of Tustin. HCD requires that the portion of HOME funds allocated to direct program and project activities, excluding administrative costs, be matched with 25% local funds. If the City's application for HOME funds is approved, Community Redevelopment Agency Low- Moderate Income Housing Set Aside Funds would be used to meet the match requirement. In addition, on Oct°ber 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 the Redevelopment Agency would authorize a portion of those funds to be used to leverage the Redevelopment Agency's funding for the 25% match required by HOME. In the event the Agency's application is approved, any required program documents will be brought back to the Agency for approval. Staff will be available at the Agency meeting to answer any questions the Agency may have. Christine Shingleto-n · //'~ Assistant City Managdr.~ RESOLUTION NO. RDA 00-7 13 ]4 ]5 17 ]8 20 23 24 2? A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE USE OF LOW-MODERATE INCOME HOUSING SET-ASIDE FUNDS AS CASH LEVERAGE IN CONNECTION WITH HOME INVESTMENT PARTNERSHIP PROGRAM ACTIVITIES. The Tustin Community Redevelopment Agency DOES HEREBY RESOLVE as follows: I. The Tustin Community Redevelopment Agency finds and determines as follows: A. Pursuant to the California Community Redevelopment Law (Health and Safety code Section 33000 et seq,), the Tustin Community Redevelopment Agency is engaged in activities necessary to execute and implement a redevelopment plan; and Bo The California Department of Housing and Community Development (HCD) has issued a Notice of Funding Availability for the HOME Investment Partnerships Program (hereinafter referred to as "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 !1 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 D, The City of Tustin wishes to apply to HCD for an allocation of funds for the maximum basic allowable limit, for a possible total combined allocation of $1,500,000 in HOME funds; and Eo The City of Tustin is requesting an allocation of funds through the HOME program for the following activities: 1. Rental Rehabilitation with or without acquisition for one hundred (100) units - Estimated. between 10 and 15 loans Page 2 l0 20 2] 2.2 23 24 25 2? 28 29 , Rental New Construction for fifty-four (54) units: Borrower- City of Tustin Project- Heritage Place Match Funds-$250,000 Terms -20 years 0% interest, due on sale or refinance F. The City of Tustin will be required to provide up to $366,072 for the purpose of matching the City's total HOME funds allocation; and II. The Tustin Community Redevelopment Agency agrees to appropriate up to a maximum of $366,072 of Low-Moderate Income Housing Set-Aside Funds for the required 25% contribution of matching and leveraged, funds if the City of Tustin application for funding of HOME funds is approved. III. The Tustin Community Redevelopment Agency hereby attests that the Redevelopment Agency will agree to use the HOME funds for eligible activities in the manner presented in the application as approve by HCD. PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the 6t~ day of November 2000. JEFFERY M. THOMAS, Chair Tustin Community Redevelopment Agency PAMELA STOKER Recording Secretary