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HomeMy WebLinkAbout1996-02-27 - AGENDA REPORTS - HOME FUNDS (2)ME" Diel IM ZIN-01) .11 i DATE: February 27, 1996 City Manager Approv Item to be presented Michael Haviland SUBJECT: APPROPRIATION OF HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM FOR MULTI FAMILY REHABILITATION FUNDS. DEPARTMENT: Community Development In January, the City was notified that it was awarded $985,950 in funds from the State of California Department of Housing and Community Development (HCD) under the Home Investment Partnerships (HOME) Program for Disaster Relief. This award will allow the City to make loans available to owners of multi family properties for the purpose of repair and rehabilitation of earthquake damaged rental units. The HOME Program for Multi Family Rehabilitation is a program funded by the U.S. Department of Housing and Urban Development (HUD). HCD received these funds from HUD, and in turn, awarded a portion of these funds to Santa Clarita. The City must adhere to the regulations of not only HUD, but also HCD. There is an administrative cap on HOME Program funds, which allows the City to spend no more than $46,950 on administrative activities. The remaining $939,000 is required by HCD to be spent on providing loans to repair rental units inhabited by low income renters within the City. The City must enter into an agreement with HCD to administer this program. HCD staff has stated that the contract documents should be to the City for review shortly. It is now necessary that the City Council appropriate the HOME funds to allow staff to incur expenses and keep accurate fiscal records. Staff recommends that the City Council increase estimated revenues account number 12-3564 in the amount of $985,950, and appropriate $985,950 in HOME Program for Multi Family Rehabilitation funds as follows: �`J b �` D Agenda Item�r Appropriate to fiscal year 1995-1996: Administration 12-5810-230 $8,000 Loan Funds 12-5810-227 $75,000 Total $83,000 Appropriate to fiscal year 1996-1997: Administration 12-5810-230 $38,950 Loan Funds 12-5810-227 $864,000 Total $902,950 homeprog\ 027396. agn