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Home My WebLink AboutRDA HSNG REHAB RPT 08-16-93AGEND AUGUST 16, 1993 RDA NO. 5 8-16-93 Inter-Oom ... DATE: TO' FROM: SUBJECT: WILLII%M A. HUSTON, EXECUTIVE DIRECTOR COMMUNITY DEVELOPMENT DEPARTMENT STATUS OF AGENCY HOUSING REHABILITATION REPORT RECOMMENDATION Receive and file. FISCAL IMPACT This is a status report of the current program activities· There is no fiscal impact to the Redevelopment Agency· BACKGROUND AND DISCUSSION In 1992, the Tustin Community Redevelopment Agency established a Housing Rehabilitation Program in the South Central area to assist property owners in making basic code-related improvements to their properties and other improvements which would upgrade these residential neighborhoods. The Agency established four separate housing rehabilitation programs, as follows: · A Rental Grant Program which provides a grant of up to $3,000. per property to rental property owners. · A Rental Deferred Loan Program which provides a loan of up to $25,000 to rental property owners. The repayment is deferred until the ownership of the property is transferred. · A Single Family Grant Program which provides a grant of up to $3,000 to single family homeowners. · A Single Family Deferred Loan Program which provides up to a $10,000 loan to single family homeowners. The repayment is deferred until the ownership of the property is transferred. Utilizing accumulated housing set-aside funds on the south central project area, the Redevelopment Agency in it's 1992-93 budget allocated $250,000 to the Rental Loan and Grant Program, $75,000 for the Single Family Grant Program and $75,000 to the Single Family Loan Program. The Agency also allocated $40,000 to program administration for the retention of an independent contractor to Status of Agency Housing Rehabilitation Report August 16, 1993 Redevelopment Agency Report Page 2 process applications and $110,000 for certain public improvements tied to housing rehabilitation sites. In addition to the 1992-93 allocations, Staff has recommended an additional $200,000 be programmed for Rental Loans and Grants and $50,000 for Single Family Loans and Grants in the 1993-94 budget. In originally authorizing the program, the Agency established target areas for the various programs. The target area for the single family deferred loans, as well as the grant programs for both single family and rental housing comprised the area west of Newport Avenue and south of Interstate 5. The target area also includes the area bounded by Newport Avenue, Walnut Avenue, Red Hill Avenue and Edinger Avenue. There are three target areas for the Rental Loan Program. Area A is the area bounded by Interstate 5 on the north, the 55 Freeway on the west, McFadden Street on the south and Pasadena Avenue on the east. Area B is generally bounded by the 55 Freeway on the west, McFadden Street on the north, Myrtle Avenue/Newport Avenue on the west and southwest respectively, and Kenyon Drive on the south. Target Area C is the South. Side of Alliance Avenue. Maps showing the target areas are attached as Exhibit 1. PROGRAM STATUS Since the Agency retained an independent contractor to work with property owners, there has been a more intense and focused effort in marketing the housing rehabilitation program. The following outlines the activity in each program through the end of July 1993: RENTAL GRANT PROGRAM Preliminary Applications Received 40 Completed Applications Received 21 Inactive Applications 17 Agreements Approved 9 Projects Under Construction 2 Projects Completed 6 Total Funds Obligated $24,000 Total Funds Expended _ _ $22,869 Status of Agency Housing Rehabilitation Report August 16, 1993 Redevelopment Agency Report Page 3 RENTAL LOAN PROGRAM Preliminary Applications Received 18 Completed Applications Received 10 Inactive Applications 8 Agreements Approved 4 Projects Under Construction 3 Projects Completed 3 Total Funds Obligated $62,900 Total Funds Expended $32,787 SINGLE FAMILY GRANT PROGRAM Preliminary Applications Received 14 Completed Applications Received 6 Inactive Applications 2 Agreements Approved 3 Projects Under Construction 0 Projects Completed 2 Total Funds Obligated $9,000 Total Funds Expended $5,990 SINGLE FAMILY LOAN PROGRAM Preliminary Applications Received Completed Applications Received Inactive Applications. Agreements Approved Projects Under Construction Projects Completed Total Funds Obligated Total Funds Expended 2 1 2 0 0 0 $0 $0 TOTAL ALL PROGRAMS Preliminary Applications Received 74 Completed Applications Received 38 Inactive Applications 29 Agreements Approved 16 Projects Under Construction 5 Projects Completed 11 Total Funds Obligated $95,900 Total Funds Expended $61,646 In addition, attached as Exhibit 2 is a more detailed status report showing the specific cumulative program activity through July 31, 1993. Exhibit 3 is a map showing which properties are being improved through the program. Status of Agency Housing Rehabilitation Report August 16, 1993 Redevelopment Agency Report Page 4 PROGRAM MARKETING As visible work is being done in the target areas, there has been a significant increase in interest by property owners in the program. In fact, five new applications were added during July of 1993, alone. Staff believes that there needs to be continued and expanded marketing of the program, especially in the target areas for the rental loan program. By identifying the work being done as assisted by the Redevelopment Agency, interested property owners will know who to contact if they want to participate in the program. To assist in this marketing, staff is currently designing signs which will be placed at each construction site stating that improvements underway are being financed by the Redevelopment Agency and providing a phone number that people can call for assistance in improving their property. The Staff also feels that there should be some form of formalized recognition for the property owners who participat~in the program. A letter is being prepared to be sent by the Mayor to property owners when work is completed to thank them for improving their property. The letter will be accompanied by a signed Certificate of Appreciation form from the City. Staff is also preparing a direct mailing to property owners in the target areas where shake roofs are prevalent, advising property owners that the program can be used for replacement of older shake roofs with fire resistant materials and for the installation of fire sprinklers. The Staff will be at the Redevelopment Agency Meeting to answer any questions the Agency members may have. ~,hA~f'd ~ imme~' ~evel~pment ~rogram Manager Christine A. Shin~-on' Assistant City Mah~er RDAREPOR \793HRSTA . CC EXHIBIT 1 TARGET AREA MAPS ~R JkVE FARGET AREA FOR FOLLOWING PROGRAMS · Single Family Deferred Loan Program Grant Program ..qEVENTEEHTH ST IRVIN£ FIRST · BLYD McFADD ST A . 'EDINGER AVE TARGET AREAS FOR FOLLOWING PROGRAMS · Rental Loan Program · Public 'Improvements EXHIBIT 2 HOUSING REHABILITATION PROGRAM STATUS REPORT EXHIBIT 3 PROPERTIES BEING ASSISTED THROUGH THE HOUSING REHABILITATION PROGRAM / /,