Loading...
HomeMy WebLinkAbout03 HUD CHAS APR 12-05-94NO. 3 12-5-94 mATE: DECEMBER 5, 1994 Inter-Com TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: O.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD): COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL RECOMMENDATION It is recommended that the City Council approve the City's Comprehensive Housing Affordability Strategy (CHAS) Annual Performance Report (APR) by minute action authorizing its submittal to the U.S. Department of Housing and Urban Development (HUD) for review and approval upon closure of the public review and comment period. FISCAL IMPACT The approval of the proposed CHAS APR in itself will not have an immediate fiscal impact on the City. The purpose of the CHAS APR is to report to HUD on the status of the City's performance in meeting the objectives listed in the previously adopted Five-Year CHAS and Annual Plan. The costs associated with preparation of the CHAS APR are absorbed in the normal course of City business funded through the General Fund since the report is prepared by staff. BACKGROUND On March. 29, 1993, the City of Tustin received notification of its eligibility to apply directly to the federal government for Community Development Block Grant (CDBG) program funds as an entitlement community, beginning with the 1994-1995 funding year. On May 17, 1993, the City Council took action to accept designation by HUD as a Metropolitan City and directed staff to p~sue entitlement status. As a result, the City was required to prepare an affordable housing planning document, which was entitled the "Comprehensive Housing Affordability Strategy" (CHAS) by December 31, 1993. The City received notification from HUD that the CHAS had been approved in February, 1994. As required by HUD, the City's CHAS was prepared with three components which included a profile of the community and its available affordable housing, a five-year plan or strategy to increase the availability of affordable housing, and an annual plan which stated the actions that would be taken by the City to carry City Council Report CHAS APR December 5, 1994 Page 2 out the affordable housing goals. The CHAS Annual Plan, the third component, covered the period from October 1, 1993 to September 30, 1994. The preparation of an annual report covering this past program year is now required by HUD regulations. The attached CHAS APR reports the City's progress in the area of providing affordable housing and supportive housing services. The reporting period, or program year, is based on the federal fiscal cycle, which begins in October and ends in September. The public has been informed through publication in the Tustin News on November 24, 1994, of the availability of the CHAS APR for review for a period of thirty days. The public has been asked to submit any written comments they may have by 5:00 p.m. on December 27, 1994, to the Community Development Department. Any comments received or public testimony taken at the public hearing on December 5, 1994 are required to be appendixed to the CHAS APR. Finally, although not required by HUD, a public hearing notice identifying the time, date and location of the public hearing for the item was also published in the Tustin News. Notices were also posted at City Hall and the Police Department. DISCUSSION Staff has prepared the attached CHAS APR in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD). The CHAS'APR is designed to document, report on and analyze the City's performance in providing housing and housing services and opportunities to residents of the City. HUD requires that the City make comparisons with its adopted CHAS Annual Plan. The City[s CHAS APR is a two-part document in accordance with the published Guidelines for preparation of an APR. The first part is designed to report on the City's progress in carrying out the CHAS Annual Plan. The second part is designed to provide the City an opportunity to assess its annual performance in relationship to meeting its overall five-year CHAS priorities and objectives, and to discuss what actions or changes should be contemplated as a result of our annual performance. The attached CHAS APR documents the City's performance for the federal 1994 fiscal year, which is the period commencing October 1, 1993 through to September 30, 1994. During this time period, the City made its first application to HUD as its own entitlement under the CDBG program in June, 1994. However, the City also continued its participation with the County of Orange under the Urban Counties program for CDBG and HOME entitlements for prior program years. City Council Report CHAS APR December 5, 1994 Page 3 CONCLUSION Staff has prepared the CHAS APR in accordance with all HUD requirements. The CHAS APR is required to be submitted by December 31, 1994, and with the Council's direction, staff is prepared to forward the document to HUD to meet the required deadline upon closure of the comment period on December 27, 1994. Associate Planner : ab\chasappr, aeb -WChristine A.~ Shi~leton Assistant City M~ager Attachments: Tustin CHAS APR - October, 1993 - September, 1994 CITY OF TUSTIN ComprehensiVe Housing Affordability Strategy ANNUAL PERFORMANCE REPORT October 1, 1993 *through September 30, 1994 As required for Participation in Programs Under the · U.S. Department of Housing and Urban Development (Cross Reference: 24 CFR Part 91) Report to Tustin City Council Thomas R. Saltarelli, Mayor Jim Potts, Mayor Pro-Tem Tracy A. Worley Mike Doyle Jeffery M. Thomas Prepared by City of Tustin Community Development Department December, 1994 TABLE OF CONTENTS Page Introduction ii SECTION I. ANNUAL PERFORMANCE PART A. Resources Made Available Within the Jurisdiction PART B. Investment of Available Resources PART C. 1. ~ Households and Persons Assisted Table 1 - Households and Homeless Persons Assisted with Housing Documentation of Assistance Provided Narrative Discussion PART D. 1. 2. 3. 4. 5. 6. 7. Other Actions Undertaken Public Policies Institutional Structure Intergovernmental Cooperation Public Housing Improvements Public Housing~Resident Initiatives Lead-Based Paint Hazard Reduction Affirmatively Furthering Fair Housing I-1 I-3 I-6 1-11 SECTION II. ASSESSMENT OF ANNUAL PERFORMANCE II-1 APPENDIX A - Description of Public Participation Process B - Summary of Public Comments Received A-1 B-1 Introduction The City of Tustin has prepared the following Comprehensive Housing Affordability Strategy (CHAS) Annual Performance Report (APR) in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD). This APR is designed to document, report on and analyze the City's performance in providing housing and housing services and opportunities to residents of the City. The APR requires the City to make comparisons with its adopted Annual Plan, a sub-chapter of the City's CHAS, which was submitted to HUD in December, 1993, and subsequently approved by HUD in February, 1994. The submission of a CHAS was the first in a series of requirements making the City eligible to receive its own entitlement through the Community Development Block Grant (CDBG) program, regardless of whether any of the funds are used towards housing activities. ·The City's APR is a two-part document in accordance with the published Guidelines for preparation of an APR. The first part is designed to report on the City's progress in carrying out the CHAS Annual Plan. The second part is designed to provide the City an opportunity to assess its annual performance in relationship to meeting its overall five-year CHAS priorities and objectives, and to discuss what actions or changes should be contemplated as a result of our annual performance. This APR documents the City's performance for the Federal 1994 fiscal year, which is the period commencing October 1, 1993 through to September 30, 1994. During this time period, the City made its first application to HUD as its own entitlement under the CDBG program in June, 1994. However, the City also continued its participation with the County of Orange under the Urban Counties program for CDBG and HOME entitlement. ii CITY OF TUSTIN Comprehensive Housing Affordability Strategy Annual Performance Report SECTION I - ANNUAL PERFORMANCE SECTION I - ANNUAL PERFORMANCE This section is intended to report on Tustin's factual performance during the 1994 Federal fiscal year. Section I is divided into four separate parts pursuant to the HUD Guidelines. The elements of performance that are required to be reported to HUD discuss resources made available, investment of those, resources, the households and persons assisted and other actions the City pursued related to housing affordability. For each discussion, Tustin has compared its actual performance for each required element with the performance it planned in the CHAS Annual Plan. The basis for the discussion of Section II - Assessment of Actual Performance has been taken from those significant differences identified in this Section between planned and actual performance. PART A: 'RESOURCES MADE AVAILABLE WITHIN THE JURISDICTION This part discusses the resources made available to Tustin, by source and by administering agency or other entity; and, actual resources received by Tustin compared to resources planned to be received by Tustin in the CHAS Annual Plan. The following discussion identifies the Federal, State, local and private (for profit and non-profit) resources or funds provided for affordable and supportive housing activities by each providing source. In identifying resources made available. The City is required to report the level and type of resources which were actually made available compared with the level and type of resources which it planned to be made available in its CHAS Annual Plan. Local Resources In the City's CHAS Annual Plan, the primary resource identified for the purpose of carrying out the strategy to provide or sustain affordable housing in Tustin comes from the City's own Community Redevelopment Agency's Housing Set-Aside Funds. These funds are comprised..of the Housing Set-Aside accounts for the City'_s two redevelopment project areas, Town Center and South Central. On October 1, 1993, the beginning of this reporting period, the City had a total unencumbered balance of $621,016 available for the first nine months of the federal fiscal year in the allocated portion of the South Central Housing Set-Aside Fund used for the City's Owner/Rental Rehabilitation Loans and Grants program. For the last three months of this reporting period ending September 30, 1994, a total of $375,000 was appropriated to this program account through the adoption of the new City budget .commencing July 1, 1994. As of September 30, 1994, a total unencumbezed balance of $357,000 remained. Tustin CHAS APR Section I - Annual Performance I-1 In addition to Redevelopment Project Area Housing Set-Aside Funds expended towards rehabilitation of the City's housing stock, appropriations were recently made from the Town Center account. On July 1, 1994, a total of $60,000 has been appropriated towards the City's Emergency Rental/Mortgage Assistance Program and $100,000 towards the City's Down Payment Assistance Program. Federal Resources During this reporting period, the City had CDBG program funds available from its previous participation with the County of Orange under the Urban Counties program. At the beginning of this reporting period on October 1, 1993, a total of $114,056.01 in CDBG funds remained unencumbered and were available for the rehabilitation of private residential property. As of September 30, 1994, the close of this reporting period, all of the CDBG program funds were drawn down under the County's administration of the rehabilitation of private property~ program, or through reallocation to Commercial Rehabilitation projects. At the close of this reporting period on September 30, 1994, a total unencumbered balance of $17,088.93 remained of the CDBG program funds allocated towards providing Code Enforcement support personnel for the City's Owner/Rental Rehabilitation Loans and Grants program. By receiving its own entitlement status, the City had the ability to allocate up to 15% of its entitlement towards public service activities, of which a total of $15,500 was allocated to non-profit organizations providing housing or supportive housing services. Contracts were still pending with the sub-recipients as of the close of this reporting period. Tustin also had a total of $120,000 in HOME funds for the 1992-93 program year, which at the beginning of this reporting period were required by the County of Orange to also be used towards housing rehabilitation. On June 21, 1994, the contracts were executed with the County for the City's allocation of $70,000 in HOME funds for the 1993-94 program year. There has been no draw down to date of these funds as the City was continuing to negotiate with the County to permit~-the use of these funds through a first-time homebuyer assistance program. The City only recently received confirmation that these funds may be utilized for such. Finally, the City had $3,000,000 allocation available for its participation in the federal Mortgage Credit Certificate (MCC) program beginning September, 1993. The City has utilized approximately $840,000 of its allocation. Tustin CHAS APR I-2 Section I - Annual Performance PART B: INVESTMENT OF AVAILABLE RESOURCES This part discusses resources and program funds used; activities undertaken, geographic distribution of investment; leveraging of non-Federal resources; matching contributions; and, pattern of actual investment compared to planned investment pattern. In discussing investments made, Tustin is required to distinguish between the financial obligations/commitments made and the actual expenditure of funds. The following discussions describe the activities undertaken, programs used, and amount of funds invested for each of the priority needs categories identified in the City's Annual Plan. Additionally, maps and exhibits have been included to address the City's requirement to identify the geographic distribution of investment. Finally, the City is required to discuss the leveraging of non-Federal funds including the type and degree of leveraging that occurred. The City is required to report actual performance compared to planned performance, as described in the CHAS Annual Plan. Part A of the City's CHAS Annual Plan outlined the strategy for implementation of six "Priority Activity Types" which included: a First-Time Homebuyer Program, the Cosmopolitan Apartments project, the Preservation of Existing Affordable Units within the City, the Rehabilitation of the Existing Housing Stock in the City, New Housing Construction opportunities and Support and Ancillary Services. These activity types were based upon those priorities identified in the City's overall Five-Year Strategy to address affordable housing in the community. The following describes the status of each of these activity types outlined in the CHAS Annual Plan relative to the above HUD requirements. First-Time Homebuyer Proqram During this reporting period, Tustin's investment plan for this activity type set a goal of assisting 55 first-time homebuyer households through participation in the Federal Mortgage Credit Certificate (MCC) program, which is administered through the County...The program was to be offered City-wide to households with the applicable qualifying incomes and was based upon an average purchase price per housing unit of $150,000. As of September 30, 1994, Tustin has had seven MCC program applications submitted and referred to the County for administration. Three of the seven MCC program certificates have been issued to borrowers. However, none of the recipients had incomes at 80% or less of the median income and therefore are not reflected on CHAS APR Table 1. The other four applications had not been completely processed by the close of this reporting period. The City has committed the $17,500 from the Housing Set-Aside funds for the South Central and Town Center Redevelopment project areas as was anticipated in the CHAS Annual Tustin CHAS APR Section I - Annual Performance I-3 Plan. Although this money is not actually expended, it is held in a reserve account ~satisfying the bonding requirements for the MCC program. Cosmopolitan Apartments During this reporting period, the subject property has transferred title and the project proponent has received tentative subdivision map approvals and other necessary discretionary approvals to develop 145 single-family detached dwelling units offering homeownership opportunities. During the course of project approvals, the project proponent was required to agree to affordability restrictions on 15% of the total number of units. These units, once constructed, will be affordable to 21 households, 13 of which will have incomes between 51-120% of median income and 8 of which will have incomes at or below 50% of median income. As of September 30, 1994, the project proponent had not submitted any construction drawings for this project. Consequently, no households were actually assisted during this reporting period. 'Preservation of Existinq Affordable Units .During this reporting period, the City identified the Orange Gardens Apartment project as a project where the continued affordability of the project's rents were threatened, because this project had a Section 236 loan eligible for prepayment in May, 1994. Tustin's Community Redevelopment Agency has allocated $500,000 of the Housing Set-Aside funds from the South Central Redevelopment project area as the necessary downpayment to acquire and preserve the 160 affordable units, which serve renter households at 50% and below the median income. The conversion of this project to a LIHPRHA acquisition loan is still awaiting HUD processing. Consequently, no households were actually assisted during this reporting period. Rehabilitation of Existing Housinq Stock During this reporting period, Tustin's investment plan for this activity type set a goal of assisting a total of 12 homeowners and 30 renter households through the City of Tustin's Community Redevelopment Agency's established Owner Rehabilitation Loans or Grants and Rental Rehabilitation Loans or Grants programs, respectively. The City also anticipated assisting a total of another 20 households through the County administered Owner and Renter Loan and Grant program, which is funded through CDBG monies received through the City's participation in the Urban Counties program. The program is offered to specific target areas in the City as adopted by the Tustin City Council and can generally be described as the southwest portion of the City. Tustin CHAS APR Section I - Annual Performance I-4 According to the Tustin Community Redevelopment Agency Housing Rehabilitation Report for September, 1994, a total of 78 renter households and 11 homeowners have received assistance either through a grant or loan Or combination of the two, in some cases. The 87 renter households were assisted utilizing a total of $86,725 in grants and loans to property owners. The 11 homeowners received assistance at a total expenditure of $43,000 in grants and loans. The breakdown of these households by income category is described further in Part C.3. New Housinq Construction The City anticipated expending a total of $155,000 from the Town Center Redevelopment project area Housing Set-Aside Fund towards subsidizing the construction of 25 new townhomes for households with incomes at or below median income. No construction project was completed during this reporting period. Consequently, no households were assisted. Support and Ancillary Services The City did not prioritize any activity under this category during its first year of its Five-Year Strategy and due to its first year receiving its own CDBG entitlement funds. However, in allocating its CDBG program funds for program year 1994-95, the City awarded funds totalling $15,500 to non-profit providers who provide housing or supportive housing services. Those providers and their allocations included: Dayle McIntosh Center for the Disabled Fair Housing Council of O.C. O.C. Homeless Issues Task Force Laurel House Mercy House $ 1,500 2,000 2,500 7,000 2,500 $15,500 Tustin CHAS APR Section I - Annual Performance I-5 PART C: HOUSEHOLDS AND PERSONS ASSISTED This part has three components which include; CHAS APR Table 1 - Households and Homeless Persons Assisted With Housing; a summary record of all assistance provided during the reporting period for all households or persons reported as assisted in CHAS APR Table 1; and, a narrative which discusses actual accomplishments in assisting low income households/persons in relationship to established CHAS goals; and, assistance provided to specific racial and ethnic groups in relationship to the relative needs of those specific groups. I · Table 1 - Households and Homeless Persons Assisted With Housing In completing CHAS APR Table 1, Tustin was required to report on the number of households and persons (i.e., homeless persons and non-homeless persons with special needs) who received assiStance during the reporting period for each of the categories indicated on the table through the investment of funds made available within the City irrespective of when those funds were made available. For the purpose of identification of goals and reporting of accomplishments, an assisted households (or person) is determined by HUD to be one which, during the reporting period, received benefits through the investment of Federal funds, either alone, or in conjunction with the investment of other public or private funds. A renter has been considered to have benefitted if the household or person takes occupancy of affordable housing that is newly acquired (standard housing), newly rehabilitated, or newly constructed, and/or receives rental assistance. An existing homeowner is benefitted during the year if the home's rehabilitation is completed. A first-time homebuyer is benefitted if a home is purchased during the year. A homeless person is benefitted if the person becomes the occupant of transitional or permanent housing. A non-homeless person with special needs is considered as being benefitted, however, only if the provision of supportive services is linked to the acquisition, rehabilitation, or new construction of a housing unit and/or the provision of rental assistance during the year. Households or persons who benefitted from more than one program were required to be counted only once. Tustin CHAS APR Section I - Annual Performance I-6 CHAS APR TABLE 1 - HOUSEHOLDS AND HOMELESS PERSONS ASSISTED WITH HOUSING CHAS Annual Performance Report Table 1 Households and Persons Assisted with Housing Name at 13.8. Depmtm4nt ~f Hou~ng and Urban Dev~k~ment ~ehensive Housing Affordab~lity Strategy (eliAS) Insa'uctions for Local Ju _'_r~_._~.'.,o_n$ City of Tustin 1994 A~islance Provided Eldm, fy 1 & Smait ~ ~ I.~ TotaJ by Income Group 2 Memb~ Re, ted Re~ate~All Ott~m, Total ExJsttng !st- ~ TolaJ h'x~vlduais Families Spedal Total Sec~n 215 Househok~(2 to 4) (5 or more ~lousenokls Rentees (A) (e) (C) (D) (E) (~ (G) (H) (I) (J) (~ (L) (M) (N) (0~M~" I 13 3 1 18 2 0 0 2 0 0 0 20 0 Z' Ve~ Lo~-~e (31 m ~Mn)-- 0 6 6 7 19 2 0' 0 2 0 0 0 21 0 (s~ ~ ~ MFS)" 0 9 4 12 25 5 0 0 5 0 0 0 30 0 ~+2+3) I 28 13 20 62 9 0 0 9 0 0 0 71 0 "Or. based upon HUD adjusted inoome limits. If appacable. $. Rm:~,J/Eth~dc Compo~lUon of line 4, column (M) Totat Low b'mome: 1. Hl~par~ Non-Hl~panic ~ 4. ~~ ~ ~&P~ 7. To~ (~ ~ T~ ~ ~ ~. ~ (~) 27 26 71 Ioe'n HUD-4oogO.-A (1,93) Tustin CHAS APR Section I - Annual Performance I-7 2. Doc%unentation of Assistance Provided Documentation of assistance provided by the City of Tustin to each household (or person) is required to be maintained by the City, particularly to ensure that those households (or person) identified in CHAS APR Table 1 are maintained. The City provides reasonable access to these records, subject to state and local laws regarding privacy and obligations of confidentiality, during the CHAS APR public comment period. Additionally, these records will be made available for inspection by the Department of Housing and Urban Development (HI/D) at the Department's request. As is required by HI/D, the City of Tustin maintains the following within its project records: Address of the property Number of residential dwelling units occupied by assisted households Type of assistance provided Program funding source(s) and amount(s) of Federal assistance provided The name of the household or person assisted: - The income category - The head of household's racial/ethnic group - CHAS Section 215 criteria 3. Narrative Discussion The following discusses Tustin' s accomplishments in providing assistance to low and very low income households, homeless persons, and persons with other special needs during this reporting period. The narrative describes the number of households, and homeless persons actually assisted, by income group, family type, tenure group, and the total households/units qualifying as meeting CHAS Section 215 criteria as compared to the goals for households/ persons to be assisted as established in the CHAS Annual Plan for the reporting period. Significant variations that exist between the number of households/persons actually assisted and the_ goals established for households/persons to be assisted are discussed as applicable. Finally, the following also describes the number of households and homeless persons assisted by racial and ethnic group in the context of ~.the relative needs of households/persons by racial and ethnic group as displayed in City's CHAS Table iA. Overall, the City of Tustin assisted a total of 88 households utilizing primarily its own Redevelopment Project Area Housing Set- Aside Funds in its transition year from ending its participation with the County to receiving its own entitlement. Of the 88 households that were assisted, 71 households (or 81%) were Tustin CHAS APR I-8 Section I - Annual Performance households with incomes that were at 80% or less of the median family income as published by HUD, May 1993. CHAS APR Table 1 shows the breakdown of the 71 assisted households that constitute the very low and other low income categories. Renters The assisted households shown on CHAS APR Table 1 were largely comprised of renters, representing 87%. The rental households benefitted largely from the City's Community Redevelopment Agency's established Rental Rehabilitation Loans or Grants program. Renter households assisted are categorized by HUD into groupings of elderly 1 & 2 member households of which there was one or 2%, small related (2 to 4 persons) which represented 45% of the total, large related (5 or more persons) which represented 21% of the total, and all others (such as individuals or non-related households) which represented the remaining 32%. Owners The owner assisted households shown on CHAS APR Table 1, which focuses on households with incomes 80% or less of the median income, represented nine existing homeowners. Again, these homeowners benefitted from the City's Community Redevelopment Agency's established Owner Rehabilitation Loans or Grants program. However, there were an additional two owner households with incomes greater than 80% but less than 120% of median income who also received assistance through this same program. While not reflected in the first-time homebuyers category of the CHAS APR Table 1, the City was able to provide assistance to three single person households with incomes greater than 80% but less than 120% of median through the MCC program. Homeless & Non-Homeless Special Needs The City did not provide assistance directly to any homeless or non-homeless special needs individuals or families during this reporting.period. However, in allocating its CDBG program, funds for program year 1994-95, the City awarded funds totalling $15,500 to non-profit providers who provide housing or supportive housing services. The City's statistics do not currently indicate that there is a significant population nor sub-population of individuals or families within Tustin that are either homeless or require special needs. As indicated in the City's CHAS Annual Plan, the City assists individuals or families on an as needed basis by making appropriate referrals to organizations or agencies that provide specific supportive services. Tustin CHAS APR Section I - Annual Performance Total Section 215 The City of Tustin did not provide assistance with HOME funds for any of its programs durin9 this reportin9 period, and therefoYe does not have any Section 215 households to report. Racial/Ethnic Composition The City of Tustin is required to make a comparison'between the number of lower income households assisted in each racial/ethnic category shown on CHAS APR Table 1 relative to the breakdown shown in CHAS Table iA. Based upon the 1990 Census, 73% of the City's households are white, followed by 14% Hispanic, 8% Asian & Pacific Islander, 5% Black with no Native Americans. Of the 71 households assisted with lower incomes (<80% of MFI), 38% were Hispanic households, followed by 36% White, 13% Black, 7% Asian & Pacific Islander, no Native American and 6% were some type unlisted. Based only on these facts, it appears that a disproportionate share of assistance was provided to Hispanic households in comparison with .the City's ethnic/racial make-up. However, CHAS Table IA also indicates that Black and Hispanic households were more likely, 40% or more of the population compared to White households at 30%, to have lower incomes, that bein~ incomes between 0-80% of median. Tustin CHAS APR Section I - Annual Performance 1-10 PART D: OTHER ACTIONS UNDERTAKEN This portion of the APR describes the City's performance in carrying out Other actions during this reporting period, including actions taken with respect to: public policies, institutional structure, intergovernmental cooperation, public housing improvements, public housing resident initiatives, lead-based paint hazard reduction, and affirmatively furthering fair housing. 1. Public Policies The City of Tustin did not identify specific actions that would be undertaken with regard to public policy during the first reporting period year of the City's Five-Year Strategy. Accordingly, the City of Tustin did not take actions with regard to addressing any negative effects related to public policy. 2. Institutional Structure As discussed in the City's CHAS Annual Plan, the City of Tustin has previously operated under the umbrella of the County of Orange through the urban counties program to obtain Community Development Block Grant (CDBG) funds. During this reporting period, Tustin anticipated receiving, its own CDBG entitlement through the metropolitan cities program. The City was successful in obtaining its own CDBG entitlement directly from HUD for the program year commencing July 1, 1994 and ending June 30, 1994. This change in the institutional structure created a direct relationship with HUD and the City has been instrumental in ensuring that the programs which are identified as priorities to the City during the Citizen Participation process receive the respective allocation of funding. Additionally, this direct contact has resulted in the City's receipt of contracts and funding in a more timely manner which also ensures that the recipients receive their benefits sooner. 3. Intergovernmental Cooperation The following describes the actions that Tustin has taken to achieve cooperation and coordination among State, local and private agencies or institutions in implementing the City's strategy over the course of this reporting period. In September, 1993, the City of Tustin joined other cities and the County in applying and receiving an allocation of $25,000,000 for the Mortgage Credit Certificate (MCC) Program. The other cities that collaborated in this effort with the County included Anaheim, Brea, Buena Park, Fullerton, Garden Grove, Santa Ana and Yorba Linda. In addition to coordinating with the other cities and the County, Tustin has initiated outreach with local lenders to make them aware of the MCC program opportunities for potential borrowers. Tustin CHAS APR Section I - Annual Performance 1-11 4. Public Housing Improvements The City of Tustin does not have any public housing as it is defined by HUD. Accordingly, no actions were identified in the CHAS Annual Plan to address public housing improvements. 5. Public Housing Resident Initiatives The City of Tustin does not have any public housing as it is defined by HUD. Accordingly, no actions were identified in the CHAS Annual Plan to address public housing resident initiatives. 6. Lead-Based Paint Hazard Reduction The City of Tustin did not identify specific actions that would be taken with regard to lead-based paint hazard reduction during the first reporting period year of the City's Five-Year Strategy. Accordingly, the City of Tustin did not take actions during the course of this performance period to evaluate or reduce lead-based paint hazards. 7. Affirmatively Furthering Fair Housing During this reporting period the City took action with respect to affirmatively furthering fair housing by taking advantage of its recently acquired control over its CDBG program funds. The City has allocated $2,000 of its 1994-95 CDBG entitlement to the Fair Housing Council of Orange County. This organization provides services to persons or households attempting to resolve landlord- tenant disputes and acts as an advocate for tenant's rights. By establishing this direct relationship with the Fair Housing Council of Orange County, the City has taken the first' step towards furthering its compliance with 24 CFR 570.904(c), which requires a CDBG grantee to take certain actions with regards to furthering fair housing. Tustin CHAS APR 1-12 Section I - Annual Performance CITY OF TUSTIN Comprehensive Housing Affordability Strategy Annual Performance Report SECTION II - ASSESSMENT OF ANNUAL PERFORMANCE SECTION II - ASSESSMENT OF ANNUAL PERFORMANCE This section is a self-assessment by the City of our effectiveness in performing during this reporting period in the overall achievement of Tustin's five-year strategy objectives and priorities. The following discussion also proposes future actions the City anticipates taking or changing in preparing the replacement for the CHAS, The Consolidated Plan. Any changes identified are a result of this self-assessment of CHAS performance. In Section I of this report, the City has discussed its achievements made during the past federal fiscal year in terms of "hard" numbers pursuant to HUD requirements. The City is required to report its progress to HUD, although a majority of the housing affordability strate97 adopted by the City is funded through the City's two Redevelopment Project Area Housing Set-Aside Fund. Additionally, this reporting period was the first in which the City received its own CDBG entitlement; thereby increasing control over attaining its priorities. However, the overall goals (numbers) listed in CHAS Table 3B of the Annual Plan were not met. In reviewing each program, the City has found that it has made progress with respect to the overall affordable housing strategy for this reporting period. The City of Tustin's Community Redevelopment Agency's established Owner Rehabilitation Loans or Grants and Rental Rehabilitation Loans or Grants programs continue to be successful in improving properties occupied by lower income households. As discussed previously, the City anticipated assistance to a total of 12 homeowner and 30 renter households. The success rate for this program was 75% fulfilled in providing assistance to existing homeowners with incomes at 80% or less median. The renter households within this same income category actually assisted by this program was more than double, at a total of 62, which is a 207% achievement. Additionally, at the close of this reporting period, there were 8 additional homeowners and 5 rental properties with applications determined complete. There was also one. rental property with rehabilitation in progress. Although the City was very successful in achieving its goals for the Rehabilitation of Existing Housing Stock, there still remained a total of 181 households with assistance unmet. The reasons for this vary for each particular Priority Activity Type identified in the CHAS Annual Plan. The following summarizes the achievements made in each of the City's identified program types, and where applicable, discusses some of the anticipated steps that the City may take in preparation of new HUD required "Consolidated Plan." Tustin CHAS APR Section II - Assessment of Annual Performance II-1 First-Time Homebuyer Proqram This program is in its infancy and this has contributed somewhat to the low participation. The program itself is largely market driven and has the ability to provide assistance based on interest; e.g. the number of persons or households looking to buy their first home, and availability; e.g. the numbers and types of housing stock being offered for sale in the City. The City .has very little control over these market conditions; however, the City has been outreaching to local brokers and lenders in order that the potential buyers are made aware of the program. Additionally, with the adoption of the City's 1994-95 budget, an appropriation has been made to utilize the Town Center Redevelopment Project Area Housing Set-Aside Fund to set up a First-Time Homebuyer Downpayment Assistance Program. It is anticipated that this funding will act in tandem with the MCC program. Cosmopolitan Apartments This project, while not under construction, did see significant progress this reporting period. Entitlements are in place and once building permits are obtained and construction is complete, will provide 21 income restricted units available for ownership. It is also anticipated that the "market rate" units constructed as part of the project will actually be considered "affordable" to households with lower incomes. The success of this project largely rests with the private sector developer. Preservation of Existing Affordable Units This program goal was anticipated to be satisfied by Redevelopment Agency's success in gaining approval of a Low Income Housing Preservation and Resident Homeownership Act (LIHPRHA) of 1990 acquisition loan. The project approvals are pending a decision by HUD, and once obtained, will result in assistance to 160 renter households with incomes at 50% of less of median. The fact that this approval had not been achieved in this reporting period was a primary .reason that the City appeared to have such a significant shortfall. Had this project been completed, and satisfied HUD's definition of assisted households, a total of 231 of the overall goal to assist 252 households, or 92%, would have been achieved. New Housing Construction Currently, the construction of 25 new income-restricted townhomes in the City's Town Center Redevelopment Project Area is largely dependent on the private sector interest to carry out such a project. The City is continuing to outreach to one landowner with property of sufficient size to carry out such a project. Tustin CHAS APR Section II - Assessment of Annual Performance II-2 CITY OF TUSTIN Comprehensive Housing Affordability Strategy Annual Performance Report APPENDIX A- DESCRIPTION OF PUBLIC PARTICIPATION PROCESS APPENDIX A - DESCRIPTION OF PUBLIC PARTICIPATION PROCESS Before submitting its CHAS APR to the HUD Field Office in Los Angeles for review, the City of Tustin made the report available to the public for examination and comment for a period of 30 days. This review period commenced on November 24, 1994 and closed on December 23, 1994. Public notice was provided~ advertising the availability of the report at City Hall during working hours, and at the local branch of the County library during their operating hours. This announcement was published in the Tustin News on November 24, 1994. In addition to the advertisement of the availability of the document for public review and comment, public notice was also given advertising that the Tustin City Council would consider the City's CHAS APR for the 1994 Federal fiscal year as a public hearing agenda item, allowing further public testimony to be received. This public notice was also published in the Tustin News on November 24, 1994. The City Council held a public hearing on the City's CHAS APR for the 1994 Federal fiscal year on December 5, 1994. Ail comments, both written and verbal testimony have been included in Appendix B of this APR. A-1 CITY OF TUSTIN Comprehensive Housing Affordability Strategy Annual Performance Report APPENDIX B- SUMMARY OF PUBLIC COMMENTS RECEIVED APPENDIX B - SUMMARY OF PUBLIC COMMENTS RECEIVED This section is held in reservation for the comments received by the City of Tustin on its CHAS APR. All written comments will be provided as attachments to this appendix upon receipt. Any verbal testimony will be attached to this appendix in the form of a summarization of the comments made at the public hearing before the Tustin City Council on December 5, 1994. B-1