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Item 13 - Rental Subsidy Program AGENDA '"`PORT SUMMARY — TO: Nonarable Mayor and Members of the City Council p Honorable Chairman and Members of the — Redevelopment Agency FROM: James L. Bowersox/Executive Direc'E�' �° "--�""� v ,,( "h w,ae I1VI77ATED BY: John D. Fitch, Assistant City Manager/Assistant'-,) Executive Director David Narevsky, Redevelopment Manager� DATE: April 13, 1993 gUBjECT; Rental Subsidy Program ABSTRACT It is recommended that the eligibility requirements for participation in the rental subsidy program be revised to allow additional residents to qualify for participation in this program and that the amount of the subsidy be increased from S75 per month to 8100. ENVIRONMENTAL REVIEW None FISCAL IMPACT It is estimated that the cost of changing the eligibility requirements and of increasing the monthly subsidy to E100 per month would be b15,300. However, there may be additional households, who were disqualified or who did not previously apply, that would be eligible to participate as a result of these recommended changes. The rental subsidy program is funded from the Redevelopment A9ency's General Fund. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE A copy of this staff report has been mailed to the President of the Poway Royal Mobilehome Estates and copies will be posted at Poway Royal , Poinsettia Senior and Poinsettia Family park. RECOMMENDATION It is recommended that the City Council/Redevelopment Agency approve the staff recommendation. _ ACTION I 1 of 4 APR 13 1993 ITEM 13 AGENDA REPORT ��T Wqr CITY OF POWAY T yF .. ♦ �ew ta' . � C�IN THE CCJ? T0: Honorable Mayor and Members of the City Council Honorable Chairman and Members of the Redevelopment Agency FROM: James L. Bowersox, City Manager/Executive Director � INITIATED BY: John D. fitch, Assistant City Manager/Assistant Executive �� Director � David Narevsky, Redevelopment Manager D� DATE: April 13, 1993 • SUBJECT: Mobilehome Park Rental Subsidy Program BACKGROUND On January 15, 1991, the Redevelopment Agency purchased the Poway Royal Estates Mobilehome Park. Prior to the purchase of the mobilehome park, the previous owners had provided rental subsidies to some residents of the park with very-low incomes. Upon purchase of the mobilehome park the City Council/Redevelo.pment Agency autharized the continuance of the rental subsidy program. The program was also expanded to include qualified residents of the Poinsettia Senior and the Poinsettia Family Mobilehame Park. The program currently provides 575 per month to eligible participants. However, there are 4 households who are receiving more than this amount. In order to be eligible to participate in the program a resident's tatal household income must be equal to or below 50 percent of the median income for San Diego County which currently is $14,450 per year for a one-person household and 516,550 for a two-person household. In addition, to qualify residents of the mobilehome parks may not have personal assets greater in value than $25,000 (excluding the value of their mobilehome) and must have resided in any one of the parks prior to the initiation of the rental subsidy program on March 3, 1992. At the March 16, 1993 City Council meeting, City Councilmember Susan Callery requested that the eligibility requirements for the Rental Subsidy Program be reviewed because there are residents of the mobilehome parks who are in need of this financial assistance who do not qualify under the existing requirements. ACTION: 2 of 4 ap{� 3 l � Staff Report - Rental Subsidy Program April 13, 1993 Page 2 FINDINGS Of the 72 households currently receiving assistance under this program, 31 are tenants at Poway Royal Estates, 26 reside in the Poinsettia Senior Mobitehome Park and 15 reside in the Poinsettia Family Mobilehome Park. Twenty other households have applied for this program and have been rejected because the total household incame exceeded the existing limits. A couple of the households who were rejected were within a few dollars of qualifying for the program. It is recommended that the program guidelines be revised to allow additional households to participate in the program. This could be accomplished by increasing the level of the eligible income from 50 percent of the median income to some other percentage. As indicated above the maximum household incame for a one-person household is 514,450 and 516,550 for a two-person household. By changing the qualification to 55 percent of the San Die90 County median income, these numbers would increase to 515,950 for a one-person household and 318,205 for a two person household. Of the 20 households that previously applied for this program and were subsequently rejected, approximately 5 would qualify if this action was taken. However, there would still be some households who are ° spending an inordinate amount of their income an housing expenses (including space rent, mortgage and insurance payments) that would still not qualify to participate in this program. In arder to resolve this situation, it is recommended that the Poway Housing Commission be authorized to review the applications on a case-by-case basis to determine if any of the applicants, whose income may exceed the recommended limits, are spending an inordinate amount of their income on household expenses. If it is determined that the applicant is spending an inordinate amount (above 60 percent) on housing expenses, and as a result have an insufficient balance to take care of normal living expenses, the Commission would be authorized to allow the applicant to participate in the pro9ram if there is no reasonable alternative for the applicant to reduce their housing expenses. Another concern that has been expressed by the mobilehome park resident is that a household could lose eligibility at the time of the death of one of the members of a two-person household as a result of the change in the allowable income level . However, this problem can be resolved by establishing a rule that no one will lose eligibility to participate in the program solely because of the death or institutionalization of a member of the household. In addition, there has been concern expressed that the S75 does not meet the needs of the participants. At an additional cost of approximately 510,000 per year, the monthly assistance can be increased to $100 per month per participant. It is also recommended that the rules be revised to allow residents who were not residents of the park at the time of the parks purchase to participate in the program. To date, this has not been a problem, however at some point it is - anticipated that there will be needy households who would be restricted from participation because of this rule. Therefore, it is recommended that households 3 of 4 APR 13 1993 R�IV� �3 Staff Report - Rental Subsidy Program April 13, 1993 Page 3 be able to participate in the rental subsidy program as long as residents have resided in the park for more that 2 years. PUBLIC NOTIFICATION AND CORRESPONDENCE A copy of this staff report will be mailed to the President of the Poway Royal Mobilehome Estates and copies will be posted at Poway Royal , Poinsettia Senior and Poinsettia family park. FISCAL IMPACT It is estimated that the cost of changing the eligibility requirements and of increasing the monthly subsidy to 5100 per month would be $15,300. However, there may be additional households, who were disqualified or who did not previously apply, that would be eligible to participate as a result of these recommended changes. The rental subsidy program is funded from the Redevelopment Agency's General Fund. RECOMMENDATION It is recommended that the City Council/Redevelopment Agency: 1. Revise the eligibility requirements for participation in the Rental Subsidy Program to allow households to participate who have an income of less than or equal to 55 percent of the median income for San Diego County and who have personal assets less than $25,000 (excluding the value of their mobilehome) . 2. Authorize the Poway Housing Commission to review on a case-by-case basis the application of individuals who exceed the income standards, but who may be spending an inordinate amount of their income on housing expenses, to determine whether these households should be allowed to participate in the rental subsidy program. 3. Allow qualified households who have been participating to continue to participate even if they do not qualify on the basis of the income level for a one-person family, if they qualified on the basis of a two person household and their status changed as a result of the death of a member of the household. 4. Authorize the monthly subsidy to be increased to $100. 5. Allow residents of the mobilehome parks who meet the other criteria and who have resided in the mobilehome park for a minimum of 2 years to participate in the program. JLB/JDF A:\RSP.JDF 4 of 4 .qPR 13 1993 ITEM 13 AGENDA REPORT SUMMARY F TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Man� ,�t� �'B '...-..nn VSt� INITIATED BY: Mark A. Sancheze�Director of Safety Services Cn.yfN9,HeC0 Robert W. Krans, Fire Marshal,�WN� Kathy Barbosa, Code Compliadce Officer K� DATE: April 13, 1993 SUBJECT: APPEALS OF WEED ABATEMENT NOTICE ABSTRACT Section 8.76.070 of the Poway Municipal Code gives any property owner the right to appeal the "Notice to Clean Premises," within ten days. Notices were given on March 26, 1993 and at the time of preparing the agenda, no appeals had been received. FNVIRONMENTAL. R .VF IFW ^ Environmental review is not required according to CEQA�uidelines. FISCAT.IMPACT None ADDTTIONAL PUBLIC NOTIFICATION None RF.('OMMF.NDATION It is recommended that the City Council consider any oral appeals presented at the meeting. ACTION � lof2 APR 13 1993 ITEM 14 AGENDA REPOR'1 G�S W9Y CITY OF POWAY TO : Honorable Mayor and Members of the City Coun �-�-... ,. ��t� nv rHe co FROM: James L. Bowersox, City Mana� ZNITIATED BY : Mark A. Sanch�Director, Safety Services Robert W. Krans, Fire Marsha�W Kathy Barbosa, Code Compliance Officer K�S DATE : APRIL 13, 1993 SUBJECT : APPEALS OF WEED ABATEMENT NOTICE BACKGROUND � Section 8 . 76 . 070 of the Poway Municipal Code gives any property owner the right to appeal the "NOtice to Clean Premises, " within ten days . Notices were given on March 26, 1993 and at the time of preparing the aqenda, no appeals had been received. FINDINGS The practice followed in previous years has been to allow oral appeals at the meeting, although not specifically called for in the Ordinance. ENVIRONMENTAL REVIEW Not required. FISCAL IMPACT None. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council consider any oral appeals presented at the meetinq. JLB:RWK:kb ACTION: J 2of 2 .