HomeMy WebLinkAbout1993-04-13 - AGENDA REPORTS - CMTY DEVELOPMENT BLOCK GRANT (2)FAcJ= `,IZlZ4 Zrl.t i
City Manager
Item to be presented
Lynn M Harris
CONSENT CALENDAR
DATE: April 13, 1993
SUBJECT: Resolution No. 93-47; use of Community Development Block Grant (CDBG)
Funds for mortgage assistance with equity -sharing proviso n. Resolution 93-47
requests that Federal Housing and Urban Development (HUD) authorize CDBG
funds for this use.
DEPARTMENT: Community Development
BACKGROUND
At the City Council meeting of February 9, 1993, Council discussed the possibility of using
Community Development Block Grant (CDBG) funds for assisted housing programs and/or
organizations, such as Habitat for Humanity (within Agenda Item 9: Incentives for the development
of affordable housing). Regarding this issue, Councilman Boyer expressed concern that a qualified
individual might profit unfairly at the public's expense if he or she purchased a subsidized home,
or received a subsidized or no -interest mortgage, then later sold the home at substantial profit. He
suggested that if CDBG or other public funds were used to subsidize home purchases, then some
restrictions should be set on the distribution of profit, so that some public benefit would result from
monies expended in the development of the project.
Following the discussion, Councilman Boyer requested that staff prepare a resolution for
submission to the California Contract Cities Association (CCCA) at the conference on May 20-23,
1993, in Palm Springs, stating Council's request to HUD to permit the use of CDBG funds for this
purpose, including a provision for equity sharing to prevent misuse of public funds, or anticipated
profits. He suggested that funds be made available on an equity -sharing basis to assist low-income
citizens in purchasing homes.
Attached is Resolution 93.47, which states the City's commitment to assisting affordable housing
and associated wise use of public funds, and requests that HUD authorize the City to use CDBG
funds for low-income housing programs and mortgage assistance. The resolution also provides
for the City to establish a mechanism for equity sharing of profits incurred upon the sale of a home
purchased or constructed in part with public funds.
RECOMMENDATION
Receive report, adopt Resolution 9347, and instruct Councilman Boyer to present it at the CCCA
conference on May 20-23, 1993.
advance I ccaUnhsg.cmk
Adopted:4 — 1-3 — P 3
Agenda Item:
RESOLUTION NO. 93-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, IN
SUPPORT OF ASSISTED HOUSING PROGRAMS AND REQUESTING THAT COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDS BE MADE AVAILABLE FOR USE FOR LOW-
INCOME HOUSING PROGRAMS AND MORTGAGE ASSISTANCE.
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1, The City Council finds as follows:
WHEREAS, the Housing Element of the General Plan of the City of Santa Clarita contains
numerous policies stating the City's commitment to the development and
maintenance of affordable housing in the City. (Housing Element, Goal 3,
Policies 3.1-3.13; Programs 3.a - 3.1; Goal 4, Program 4.g); and
WHEREAS, Program 3.a of the Housing Element specifically addresses the City's
commitment to promote programs such as low cost loans, equity sharing,
and deed restrictions that increase the amount of affordable housing and
retain housing affordability for successive buyers and renters; and
WHEREAS, the five-year CHAS was adopted by Council In June, 1992, which considered
strategies that support affordable housing programs, and designated
priorities to meet affordable housing goals; and
WHEREAS, the annual Comprehensive Housing Affordability Strategy (CHAS) was
adopted by Council on December 31, 1992; and
WHEREAS, Community Development Block Grant funds have previously been made
available to the City for ongoing programs.
SECTION 2. The City Council does hereby determine and declare as follows:
A. The City will continue to support affordable housing as stated In the City General Plan
goals, policies, and programs, including programs for mortgage assistance and equity
sharing.
B. The use of CDBG funds is appropriate and necessary to implement these programs.
C. The City therefore requests that, as necessary, that the Department of Housing and
Urban Development (HUD) grant permission and additional funding as requested, to
implement these programs necessary to qualified citizens of the City of Santa Clarita.
Section 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVEDANDADOPTEDthis dayof
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES) §
CITY OF SANTA CLARITA)
1993.
1, . DO HEREBY CERTIFY that the above and foregoing
Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting
thereof, held on the day of 1993 by the following vote of
Council: ,
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk
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