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HomeMy WebLinkAbout1999-10-26 - AGENDA REPORTS - HOME INVEST PARTNERSHIP PGM (2)AGENDA REPORT City Manager Item to be presented CONSENT CALENDAR DATE: October 26, 1999 SUBJECT: RESOLUTION TO APPLY TO THE STATE HOME INVESTMENT PARTNERSHIPS PROGRAM DEPARTMENT: Administrative Services RECOMMENDED ACTION Adopt a resolution, authorizing the City Manager to submit an application to the State of California Department of Housing and Community Development for funding under the HOME Investment Partnerships Program. Direct the City Manager, if selected for funding, to enter into agreements with the State necessary to participate in the HOME Program. BACKGROUND The Council, at their April 1999 Study Session on affordable housing needs, directed staff to pursue housing programs which benefit low and moderate -income persons and report back. To this end, staff returned to the City Council in August 1999 with a low and moderate -income housing rehabilitation loan and grant program which was adopted. This proposed HOME program will augment the rehabilitation loan program adopted in August. The attached resolution and subsequent 1999=2000 HOME application to the State of California will seek $200,000 for the purpose of making rehabilitation loans to low and moderate -income homeowners/occupants and to low and moderate -income first- time homebuyers, to assist in the acquisition and rehabilitation of their homes. A goal of the latter program is to reduce the number of "eyesore" homes which plague various neighborhoods. HOME funds require a 25% match at the time the loan is extended. The match may come from the homeowner in cash, sweat equity, and various other types of services. Like the City's existing Housing Rehabilitation Program, the programs identified above help the City meet its goals established in the General Plan Housing Element, CDBG Consolidated Plan, and assists the Redevelopment Agency by providing, when required, a platform from which to launch affordable housing programs necessitated under AB 315. Adopted: AZ56, Agenda Items,�� HOME INVESTMENT PARTNERSHIP PROGRAM October 26, 1999 - Page 2 If the application is successful, the City will join other citiessuch as Simi Valley , Thousand Oaks, Palmdale, and Lancaster, who have similar programs funded with State HOME funds. The unincorporated County also has simil receives its funds directly from HUD. ar programs but census will allow the City to recIt is anticipated that data from the 2000but eive HOME funds directly from HUD by 2005. The benefit of this is that the City does not have to apply for funds; they are allocated like CDBG funds, and program administration caps are 15%, as opposed to the 5% cap under the State HOME program. ALTERNATIVE ACTION Not apply for HOME funds. FISCAL IMPACT If application is successful, $200,000 in HOME funds will be made available to the City, of which $10,000 will be available for administrative costs. ATTACHMENT Resolution authorizing submittal of an application to the California State Department of Housing and Community Development. DEL:hds mnal\afar¢