Item 21 - Block Grant Funded Housing Rehabilitation Program
- AGENDA REPORT SUMMARY -
-TO: Honorable Mayor and Members of the City Council ~#~~~~
Honorable Chairman and Members of the Redevelopment Agency ~n4
FROM: James L. Bowersox, City Manager/Executive ~tor " "
INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Exe~~Director ~)t
Warren H. Shafer, Director of RedevelopmU>i Service ~~
David Narevsky, Redevelopment Manager U
Kris Gridley, Redevelopment Coordinator .
DATE: September 5, 1995
SUBJECf: Amendment to Agreement between the City of Poway and the County of San
Diego for Management and Implementation of the Community Development
Block Grant Funded Housing Rehabilitation Program
ABSTRACf
In order to continue implementation of the Community Development Block Grant (CDBG)
funded Housing Rehabilitation Program, an amendment to Management and Implementation
Agreement #34766 between the City and the County is required. The amendment will
enable the County to reimburse the City an additional total of $154,250 in Twenty-
First-Year (Fiscal 95-96) CDBG funding for the completion of housing rehabilitation
- projects for low and very-low income Poway residents.
ENVIRONMENTAL REVIEW
An Environmental Review of the CDBG Housing Rehabilitation Program was conducted at the
time the Program was initially approved. No additional review is required for the
proposed Amendment.
FISCAL IMPACf
It is recommended that $154,250 be appropriated from the Redevelopment Agency 80%
unappropriated fund balance (Account #436-8912) to cover project costs prior to
receiving CDBG funding reimbursements from the County.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None,
RECOMMENDATION
It is recommended that the Redevelopment Agency/City Council approve the attached First
Amendment to Agreement for Management and Implementation of a CDBG Project and
appropriate $154,250 from the Redevelopment Agency Unappropriated Fund Balance to cover
project costs prior the Agency receiving CDBG funding reimbursements.
- ACfION
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~AGENDA REPORl
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Counct! unless members of the Council. staff or public request it to be removed from the Consent Calendar and
discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, City Manager/Executive Di~ " .
~r"
INITIATED BY: John D. Fitch, Assistant City Manager/Assistant Executi .
Director ~
Warren H, Shafer, Director of Redevelopment Servic ~~
David Narevsky, Redevelopment Managerl)~
Kris Gridley, Redevelopment Coordinator'-
DATE: September 5, 1995
SUBJECT: Amendment to Agreement between the City of Poway and the
County of San Diego for Management and Implementation of the
Community Development Block Grant Funded Housing
Rehabilitation Program
BACKGROUND
The Redevelopment Agency currently operates two Housing Rehabilitation
programs, one funded by the Agency's Low- and Moderate-Income Housing Fund and
the other funded by the federal Community Development Block Grant (CDBG)
Program, The CDBG funded program was originally established to assist low-
and very-low income homeowners who could not meet the housing cost/income
ratios required by the Housing Fund program. Initial funding was provided by
a Twentieth-Year (Fiscal 94-95) grant and the CDBG Rehabilitation Program was
authorized to begin funding loans on February 28, 1995.
On November 29, 1994, the City Council held a public hearing to solicit input
on the use of the City's Twenty-First Year (Fiscal 95-96) CDBG funds. At that
time, the Council approved the allocation of $130,000 in Twenty-First Year
funding to continue implementation of the CDBG housing rehabilitation program.
On March 7, 1995 the City Council approved the allocation of an additional
$24,250 to the Program, resulting in a total Twenty-First Year grant of
$154,250.
The City's Housing Rehabilitation Programs have been very popular and the
Agency currently has a waiting list of 369 households who would like to
participate. The $154,250 in CDBG funding will be added to the initial
$110,070 grant providing a total of $264,320 in federal funding for Housing
Rehabi 1 Hat i on. We estimate that the $264,320 will fund from 25 to 30 loans.
ACTION:
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Agenda Report
September 5, 1995
Page 2
To date the CDBG program has funded eight loans. The Redevelopment Agency's
Low- and Moderate-Income Housing Fund Program has funded 132 loans.
FINDINGS
In accordance with the cooperative agreement between the City and the County
of San Diego, an Amendment to the existing Management and Implementation
Agreement must be executed prior to use of the additional S154,250 in Twenty-
First Year funding. .
Provided in Attachment 1 is the proposed First Amendment to Management and
Implementation Agreement for the CDBG Housing Rehabilitation Program. The
Amendment specifies the scope of work, estimated time schedule and estimated
budget for the Program.
ENVIRONMENTAL REVIEW
The subject Amendment is classified as a continuation of a previously approved
project and does not require further environmental review.
FISCAL IMPACT
In accordance with the cooperative agreement between the City and the County,
the City must advance the funds for CDBG projects and programs and then
request reimbursement as costs are incurred, The County of San Diego will
reimburse the City a total of S264,320 in order to implement the CDBG Housing
Rehabilitation Program, Reimbursements will be made on a monthly basis, after
the City provides verification of actual expenditures incurred. It is
recommended that S154,250 be appropriated from the Redevelopment Agency
Unappropriated Fund Balance (Account Number 436-8912). This $154,250, in
combination with the previous appropriation of SI10,070, will provide a total
of S264,320 to cover project costs prior to receiving CDBG funding
reimbursements from the County.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the Redevelopment Agency/City Council approve the
attached First Amendment to Agreement for Management and Implementation of a
Community Development Block Grant Project and appropriate S154,250 from the
Redevelopment Agency Unappropriated Fund Balance to cover project costs until
the Agency receives Community Development Block Grant funding reimbursements.
Attachment 1: First Amendment to Agreement for Management and
Implementation of a Community Development Block Grant
Proj ect
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FIRST AMENDMENT TO
AGREEMENT FOR MANAGEMENT AND
IMPLEMENTATION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT
THIS FIRST AMENDMENT to the Agreement for Management and
Implementation of a Community Development block Grant Project
(County Contract No. 34766) between the County of San Diego and
the City of Poway, entered into this day of September, 1995,
by and between the COUNTY OF SAN DIEGO, a political subdivision
of the State of California (hereinafter referred to as "County")
and the City of poway (hereinafter referred to as "CITY"),
WIT N E SSE T H:
WHEREAS, the County and the City have earlier entered into
an Agreement for management and implementation of a Community
Development Block Grant project (County Contract No. 34766); and
WHEREAS, said Agreement authorized funds for the operation
of a Residential Rehabilitation Program which addresses basic
health and safety deficiencies in single family homes owned and
occupied by low-income residents of Poway, which deficiencies are
not addressed by other City of poway or poway Redevelopment
Agency residential rehabilitation programs; and
WHEREAS, the City has requested that an additional $154,250
of Community Development Block Grant funds be allocated to
provide for the completion of additional housing rehabilitation
projects,
IT IS AGREED AS FOLLOWS:
l. Paragraph 3 of said County Contract No. 34766 is
amended to read as follows:
3. Comoensation: County agrees to pay City total
compensation for implementing the project
described herein projects costs not to exceed the
sum of $264,320.
2. Attachment "A" to said County Contract is amended to
read as follows.
ATTACHMENT 1
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SCOPE OF WORK
The City of poway has a certain project to be implemented under
the Twentieth and Twenty-First-Year Community Development Block
Grant (CDBG) Program. The work to be accomplished consists of
the following:
l. The poway Redevelopment Agency currently operates an
Affordable Housing Rehabilitation Program which is funded by
the Agency's Low- and Moderate-Income Housing Fund.
The City Council has decided to operate a supplemental
Housing Rehabilitation Program to be funded by a portion of
the City's 20th and 21st-Year CDBG grants. The
supplemental, CDBG Program is intended to provide loans for
very low and low- income homeowners who are ineligible for
the Agency's Affordable Housing Rehabilitation Program
because their housing cost is too high to meet the
definition of "affordable" contained in California
Redevelopment Law.
The CDBG Housing Rehabilitation Program will offer zero
interest, deferred, forgiving loans of up to $8,000 to low
and very low-income homeowners who wish to undertake home
improvement projects either to remedy health and safety
problems or to address basic maintenance needs. It is
estimated that the available funding will be adequate to
process from 25 to 30 loans. The City will retain a
consultant to administer the Program.
2. Estimated Time SChedule: The City of poway will make all
good faith and reasonable efforts to implement the project
in compliance with the following estimated implementation
schedule:
Contract Amendment Approval September 1995
Inspections and Work Write-ups November 1995
Loan Closings February 1996
Completion of Rehabilitation Projects September 1996
3. Estimated BUdqet: The City of poway will make all good
faith and reasonable efforts to implement the project in
accordance with the followinq budget:
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CDBG Housing Rehabilitation Program
Scope of Work
Page 2
20TH AND 21ST YEAR ALLOCATION FOR
COBG HOUSING REHABILITATION: $264,320
Loan Funding $229,337
Consultant Fees $26,432
Title Reports $1,500
Appraisals $3,125
Loan Documents $3,750
Total $264,320
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