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HomeMy WebLinkAboutPH 3 HCDA 08-03-81~ OATE: August ~gB Inter-Corn ~ FROH: S UBJ ECT: Acttng Ctty .t~anager Co~t~untty Oeve;pment Oepa~ment C~ty of Tusttn Participation wtth the CoUnty of Orange under the Housing and Con. unity Development Act (HCDA) RECOI~IENDATION Take publlc tnput on p~oJects desired under HCDA and continue the public hearing to August 17, 198I, (t~o hearing dates are. required). At the second heartng authorize Ctty participation and submitta; of an ~nttfal request for three year fundtng. BACKGROUND The City Initially took part' ~nthts-program and successCully completed projects of neighborhood Improvements on "B" Street and California at the Intersection of Thtrd S~et as well as the £1 Cam~no storm dr&tns. The Ctty Council dectded to become an fnacttve partlc~pant In the HCDA p~ogram provtded the County accomplish needed,pro]actS tn those County tslands su~ounded by the Ctty. ~tth that understanding, the Ctty proposed no spectftc pro, acts for fundtng. Under p~ovtstons of "I~ORGA" regarding tsland annexations, all but one of such 1sTands have now been brought under Ctty.~u~lsdtctton. Very ;tttle or no Improvements were actually accomplished by the County tn the Intervening ttme under HCDA, although some study and planning dtd take place. ~t would appear approprtato tha~ the Ctty now resume an acttve ~o;e under HCDA. Pro, acts which mtght be available for fundtng Include: · ~etghborhood Publlc ~mprovements (pavtng, curb and gutter. trees, 11ghts, dratnage facflttles, etc.) - "5' Street/~ttchell - galnut, San ~uan and Orange; west of the htgh school · Promote Affordable Houstng Construction Programs e Low [nte~est Houstng Rehabilitation Loan Programs -a Co,,m~rctal Rehabilitation Loan Programs · Park Development-Columbus'Tusttn/Peppertree ~ EConomic Development-e.g. Parktng Facilities e #etghborhood Centers (Seniors) · E11minateBarrters to the Handicapped City of Tustin Participation with the County of Orange Under the Housing and Community Development Act (HCDA) August 3, 1981 Page Two The County has an extremely tight timeframe to which the City will have to adhere. Our application must be submitted in September to be eligible for the three year funding cycle. County £MA staff is being as helpful as Possible but the time constraints cause a tremendous strain on producing specific construction project specifications, plans and cost estimates for inclusion at this time. One suggestion which staff found plausible would be to plug the City into an existing County program with a request for maximum funding. This would get us "on the books" so to speak.. The City would then later amend the plan to reflect public input and develop specific plans and specifications which may be done at anytime. This would also allow time to analyze if existing personnel could administer to a full City HCDA program. The ultimate HCOA program should also be designed to mesh with Redevelopment Agency' projects, budgets and personnel. The exact amount which would be available to the City is indeterminate at the present time. A rough estimate might be gleaned from the fact that the Tustin islands alone where proposed for budgets of $160,000 and $140,000 in 1980 and 81. We would expect the City could generate $450,000-$500,000.00 or higher during the next three years in HCDA funds. INITIAL HCDA PROGRAM RECOMMENDATION After discussion with EMA staff and consideration of County programs available, it is recommended that initially the City Council propose participation with all available funds in the Housing Rehabilitation Loan Program. This would allow maximum use of County staff initially without necessity of the City hiring new personnel. Such a program would be oriented primarily, but not exclusively, to senior citizen occupant/owners of homes to provide low interest loans {down to 3%) for improvements and in qualified cases use of "estate" or deferred payment loans. This would have a double benefit, especially in the original Tustin townsite residential area of assisting seniors to upgrade their homes and rejuvenating older structures of interesting quality to the community. This program also would allow grants for correction of hazardous defects of up to $1,000.00 including mobilehome owners. City of Tustin Participation with the County of Orange Under the Housing and Community Development Act (HCDA) August 3, 1981 Page Three The current County program is through Security Pacific National Bank with HCDA funds used to write down the interest rate. This creates a degree of leverage in that HCDA generates greater loan funds than the amount set aside. It would be clearly understood that such initial submittal would be subject to amendment for inclusion of precise construction projects after analysis of public input and coordination with Redevelopment Agency activities. In addition, the City is required to have citizen input via an advisory board into this project formulation and submittal..Co,~w~untty Development contacted Isabelle McClements of the Community Services Department regarding possible members and coordination with the Senior Citizens Coordination Council. Using the Subcommittee on Housing Outreach, a Community Development Advisory Board (CD/kB in HCDA jargon) was constructed to advise the Council on projects and this submittal. The members of the CDAB include: Janet SchwaFtz - Chairwoman Nick Ogden IdaSternberg Jesse Dungy Fred Mesa Martha Mueller Tony Machado On July 9, the Board held a preliminary meeting to discuss the matters as related in this staff report and unanimously agreed to recommend pursuit of HCDA participation on the basis suggested herein. They will meet again on August 6, for discussion with County staff of how the day to day administration of a low interest housing rehabilitation program would function and have further comment available for the August 17, 1981 Council meeting in this regard. MWB/dat REDEVELOPMENT AGENCY 8-3-81 AGENDA ITEM: Approval of Minutes - 7-20-81. BACKGROUND: See Council Minutes. RECOMMENDATION: Approval of Minutes of 7-20-81.