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HomeMy WebLinkAbout15 WRKFORCE HSNG GRNT 02-06-06 AGENDA REPORT MEETING DATE: February 6, 2006 TO: WilLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: APPLICATION FOR WORKFORCE HOUSING REWARD PROGRAM GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT SUMMARY Agency approval is requested for the submission of an application for Workforce Housing Reward Grant Program funds from the California Department of Housing and Community Development. RECOMMENDATION It is recommended that the Tustin City Council 1.) adopt Resolution 06-24 approving the submission of an application to the California Department of Housing and Community Development (HCD) for Workforþe Housing Reward Grant Program funds and authorizing the City Manager to sign the application for the 2005 eligibility year; and 2.) if the application for funding is approved, the City may use the funds for eligible activities under the grant program. Staff would recommend that the funds be earmarked for the Tustin Library Project. FISCAL IMPACT This action will have no fiscal impact on the City at this time. BACKGROUND/DISCUSSION The Workforce Housing Reward Grant Program (Program) was established pursuant to Chapter 482, (SB 423), Statutes of 2002, and funded through Proposition 46, the Housing and Emergency Shelter Trust Fund Act of 2002. The Program is administered by the California Department of Housing and Community Development (HCD) for the purpose of providing local assistance to citi$s and counties that provide land use approval to housing developments affordable to ver)i-Iow- and low-income households. This award Program does not use a competitive process to award funds; all cities and counties who meet the eligibility requirements will be funded. William A. Huston Authorization WFH Program Application February 6, 2006 Page 2 The Program grant awards willi be calculated based on the number of bedrooms in approved and permitted affordable housing developments. The grant award amounts are $1,500 per bedroom for very-low-income units and $1,000 per bedroom for low-income units. In addition, there are bonus awards for communities that can demonstrate that significant progress has been made in building the housing to their Regional Housing Needs Assessment (RHNA) goals. Both rental units and for-sale owner occupancy units are eligible for the grant awards. During the 2005 calendar year the following permits were issued for very-Iow- and low- income units: . 19 very-low-income units 0 Three two-bedroom units and one three-bedroom unit - Tustin Field I - Amelia 0 Eleven three-bedroom units - Tustin Field II - Cayley Way 0 Four three-bedroom units - Arbor Walk . 15 low-income units 0 Five two-bedroom units - Tustin Field I - Amelia 0 Ten three-bedroom units - Tustin Field II - Cayley Way The award amount is estimated ,at approximately $120,000. The current program year is for !the period from January 1, 2005 to December 31, 2005. Grant funds must be used by t~e cities or counties for the construction or acquisition of capital assets that serve to ben~fit the community. Eligible projects include, but are not limited to, traffic improvements, neighborhood parks, bike paths, libraries, community centers, and police and fire statipns. Staff will be available at the City Council meeting to answer any questions the City Council may have. Christine Shingleton Assistant City Manager Kimberly cAllen Redevelopment Project Manager Attachment S:RDA\CCreport\WFHAgenda Report 02-06-06.doc RESOLUTION NO. 06-24 A RESOLUTION OF THE TUSTIN CITY COUNCIL AUTHORIZING THE CITY MANAGER 10 APPLY FOR WORKFORCE HOUSING REWARD PROGRAM GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR CONSTRUCTION OF VERY LOW AND LOW-INCOME HOUSING UNITS The TUSTIN CITY COUNCIL DOES HEREBY RESOLVE as follows: I. The Tustin City Council finds and determines as follows: A. The State of California has established the Workforce Housing Rewards Program (WFH Program) pursuant to Chapter 482 (SDB 423), Statutes of 2002, and funded through Proposition 64. B. The WFH Program is administered by the California Department of Housing and Community Development ("HCD") for the purpose of providing local assistance to cities and counties that provide land use approval to housing developments affordable to very low and low-income households which are subject to a regulatory agreement recorded against the property that obligates the owner to maintain rents on the restricted units at an affordable level to very low or low-income household for at least fifty five (55) years, or for ownership housing units that are initially sold to very low or low-income households that ensure the repayment of the public funds and reuse of those funds for a period of at least twenty (20) years; C. The WFH Program funds must be used by cities and counties for the construction or acquisition of capital assets that serve to benefit the community including, but not limited to, traffic improvements, neighborhood parks, bike paths, libraries, community centers, and police and fire stations; D. Participating cities and counties must have general housing elements that conform with requirements of Article 10.6 of Chapter 3 of Division I of Title 7 of the Government Code (Government Code 65580 et sea.); and E. The Tustin Community Redevelopment Agency wishes to apply for grant funds through the WFH Program as permitted under the law. NOW, THEREFORE, the City Council of the City of Tustin resolves as follows: 1. Approve the submission of an application to the Department of Housing and Community Development for grant funds pursuant to the Workforce Housing Reward Program. The Executive Director is authorized to submit an application necessary to meet the requirements of the WFH Program. 2. If the application for funding is approved, the City of Tustin agrees to use the WFH Program funds for eligible activities under the WFH Program. Resolution No. 06-24 Page 2 PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 6th day of February 2006. DOUG DAVERT, Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA) COUNTY OF ORANGE) CITY OF TUSTIN ) ss I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 06-24 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 6th day of February 2006, by the following vote: COUNCILMEMBER AYES: COUNCILMEMER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER CITY CLERK S:IRDAICC resos\O6-24 Work Force Housing Reward Grant App.doc