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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 SEP 5 1995 ITEM 21 1 of 6 -'-'--" .-. -- --. ~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: SEP 5 1Q95 21 J 2 of 6 - 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 3 of 6 SEP 5 1995 ITEM 21 -- 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 4 of 6 SEP 5 1995 ITEM 21 - -- 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: SEP 5 1995 ITEM 21 5 of 6 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 6 of 6 SEP 5 1995 ITEM 21