HomeMy WebLinkAboutPH 2 HUD CHAS 12-06-93AGENDA
PUBLIC HEARING NO. 2
12-6-93
In t e
DATE:
DECEMBER 6, 1993
WILLIAM A. HUSTON, CITY MANAGER
TO:
COMMUNITY DEVELOPMENT DEPARTMENT
FROM:
U.S. DEPARTMENT OF HOUSING AND URBAM DEVELOPMENT (HUD):
SUBJECT: COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS)
RECOMMENDATION
It is recommended that the City Council approve the City's
ComprL~ne~Bive Housing Affordability Strategy (CHAS) by minute
action authorizing its submittal to the U.S. Department of Housing
and Urban Development (HUD) for review and approval.
FISCAL IMPACT
The adoption of the proposed CHAS in itself will not have an
immediate fiscal impact on the City. However, its adoption and
ultimate approval by HUD will enable the City to apply directly for
federal Community Development Block Grant (CDBG) program funds.
The receipt of these Federal funds would reduce the expenditure of
City funds for projects (e.g. public improvements, housing and
commercial rehabilitation, etc.) that benefit low and moderate
income households'throughout the City. As the CHAS is implemented,
each program and each year's budget expenditures will be required
to be reviewed and approved by the city Council.
BACKGROUND
On March 29, 1993, the City of Tustin received a letter from HUD
indicating that based on our current population (over 50,000), the
City of Tustin would be eligible to apply directly to the Federal
government for CDBG program funds as an entitlement community,
beginning With the 1994-1995 funding year. It is anticipated that
under the entitlement program, the City would receive up to
approximately $450,000 in CDBG funds of its own in its first year
of application. This compared to the City's receipt of $125,000 in
CDBG funds during the 1993-1994 funding year by participating under
the Urban County program with Orange County.
On May 17, 1993, the city Council took action to accept the
designation as a Metropolitan city and directed staff to pursue
entitlement status. Further, appointment of the Assistant City
Manager., or an authorized representative, was made to carry out all
the administrative responsibilities within the scope of the
entitlement process and CDBG program. One of the first
requirements resulting from acceptance of the City's new
City Council Reports
Comprehensive Housing Affordability Strategy
December 6, 1993
Page 2
entitlement statUs was the requirement for completion of an
affordable housing planning document entitled the "Comprehensive
Housing Affordability Strategy" (CHAS).
The CHAS lays out the City's goals to address the issue of
affordable housing, specifically where Federal dollars are
involved. The CHAS is a Federal requirement of entitlement to
describe the use of all resources, Federal, local and private, that
are targeted for use in providing affordable housing.
Staff has prepared the CHAS by combining background information,
data, geal~ policies and programs contained in the City's Housing
Element (pending and adopted) and the Final Report - Comprehensive
Affordable Housing Strategy prepared by David Rosen and Associates
for the Tustin Community Redevelopment Agency's Housing Set-Aside
Fund. This report was adopted by the Agency and City on November
1, 1993.
As required by HUD instructions for preparation of the City's CHAS,
staff held a public participation neeting on September 9, 1993, at
6:00 p.m. at the City's Senior Center. The purpose of the meeting
was to solicit input from the public early on concerning affordable
housing in the community. Meeting attendants included a
representative from The Irvine Company and Akins Development
Company; however, there were no City residents in attendance.
Once the draft CHAS was cOmpleted, a summary of the document was
required to be published including notification that the formal 30-
day public review and comment period had begun· The CHAS summary
was published on October 28, 1993, in the Tustin News. The public
was atso informed of the availability of the CHAS for review and
advised to submit comments by 5:00 p.m. on November 29, 1993, to
the Community Development Department. Copies of the draft CHAS
were also forwarded to members of the City Council during this time
period.
Finally, although not required by HUD, a public hearing notice
identifying the time, date and location of the public hearing for
the item was published in the Tustin News. Notices were also
posted at City Hall and the Police Department.
DISCUSSION
The City is required to prepare a CHAS to be considered eligible to
receive CDBG funds and other Federal funding sources providing
housing assistance which the City nay be eligible for. The CHAS is
a planning document that is mean5 to guide the development and
maintenance of affordable housing cpportunities for the City. The
City Council Reports
Comprehensive Housing Affordability Strategy
December 6, 1993
Page 3
CHAS is comprised of three components:
Community Profile: This section is divided into three main
sub-topics -- Market and Inventory Characteristics, Needs
Assessment and Available Resources. A description of the
community is provided highlighting the historical, social, and
economic trends and factors that have influenced affordable
housing in the City. A description of the City's general
population and household characteristics is provided,
including the identification by' the City of areas of
concentration for racial/ethnic minority groups and lower
~ncomes as is required by HUD.
The City's general market and inventory is analyzed in terms
of supply, demand, tenure, vacancy rates, condition, cost and
availability to special needs groups. A summary of the City's
assisted housing inventory is provided, including an
assessment of the facilities and services available for the
homeless and persons threatened with homelessness.
This section of the CHAS also provides a needs assessment
Projection for the next five years for housing availability to
low and moderate income households as required by HUD. These
income ranges have'been closely tied to those contained in the
Final Report, as reviewed by the Tustin Community
Redevelopment Agency previously for use of the City's Housing
Set-AsideFund. The purpose of coordinating with these income
ranges is that it is currently anticipated that the Housing
Set-Aside F~nd will provide the largest funding resource for
the City to fulfill its housing affordability strategy.
.However, as required by HUD the closing portion of this
section provides a summary of all available funding resources.
Five-Year Strateqy: This section establishes the long-term
housing goals and programs in a general sense that are
envisioned to be implemented over a five-year time frame. The
programs are the same as those previously adopted by the
Tustin CommunitY Redevelopment Agency; however, the programs
'are described in terms of Priority Activity Types with a
separate analysis, strategy development and investment plan
following. The Priority Activity Types include a First-Time
Ho~buyers Program, the Cosmopolitan Apartments, the
Preservation of Existing Affordable Units, Rehabilitation of
Existing Housing Stock, New Housing Construction, and Suppor~
and Ancillary Services. More detailed information on each of
these programs can be found in the CHAS.
City Council Reports
Comprehensive Housing Affordability Strategy
December 6, 1993 .
Page 4
Annual Plan: This section is the short-term guide for
allocating monies towards improving housing conditions
covering the first planning period of the Five-Year Strategy
beginning October 1, 1993, through to September 30, 1994.
With the exception of the Priority Activity Type entitled
Support and Ancillary Services, it is anticipated that the
City will initiate programs under each of the various Priority
Activity Types described in the Five-Year Strategy. However,
all of the programs are dependent upon the availability of
funding.
CONCLUSION
Staff has prepared the CHAS in accordance with all HUD requirements
coordinating information, policies and programs previously adopted
by the City Council and Community Redevelopment Agency. The CHAS
is required to be submitted by December 31, 1993, and with the
Council's direction, staff is prepared to forward the document to
HUD to meet the required deadline.
Associate Planner
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