1994-0301_ORANGE, COUNTY OF_E1_Agenda Report0 0
AGENDA ITEM March 1, 1994
TO: George Scarborough, City Manager
FROM: Thomas Tomlinson, Director of Planning
SUBJECT: Modifications to Fiscal Year 1992-1993 Community
Development Block Grant Contract (Year 18), to the City's
Mobile Home Improvement Program Policy and Procedures
Manual, and Execution of the Fiscal Year 1993-1994
Community Development Block Grant (Year 19) and HOME
Contracts (Year 2).
By Motion, authorize the Mayor to execute the modifications to the
Fiscal Year 1992-1993 Community Development Block Grant contracts
and to execute the Fiscal Year 1993-1994 Community Development
Block Grant and HOME contracts and adopt the resolution modifying
the Mobile Home Improvement Program Policy and Procedure Manual.
A. Applicant or Property Owner
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
B. Summary and Recommendation
1. Fiscal Year 1993-1994 Community Development Block Grant
(CDBG):
The City Council is being requested to authorize the
Mayor to execute the Year 19 Community Development Block
Grant contracts (fiscal year 1993-1994) for the
rehabilitation of mobile homes ($70,000), the
rehabilitation of private properties ($30,000) and public
facilities and improvements to the Lacouague Building
($34,000) (attachment 2).
2. Fiscal Year 1992-1993 Community Development Block Grant
(CDBG):
The City Council is being requested to authorize the
Mayor to execute an amendment to the Year 18 Community
Development Block Grant contract for rehabilitation of
mobile homes in order to re -program funds from unused
contracts into this contract in the amount of
approximately $48,560 (attachment 3).
FOR CITY COUNCIL AGEN Z�E /
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Agenda Item
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March 1, 1994
Modifications to the Mobile Home Improvement Policy and
Procedure Manual:
The City Council is being requested to modify the City's
Mobile Home Improvement Program Policy and Procedures
Manual to increase the maximum amount a household can
receive from a Community Development Block Grant from
$5000.00 to $15,000 (attachment 4).
Fiscal Year 1993-1994 HOME Contract:
The City Council is being requested to authorize the
Mayor to execute the Year 2 HOME contract (fiscal year
1993-1994) which is in the amount of $50,000. These
funds are to be utilized primarily for rehabilitation
activities of owner occupied low income housing within
the City, such as the existing mobile home and single
family home rehabilitation programs, per the Federal HOME
Guidelines (attachment 5).
C. Background
Environmental Processing: This project has been reviewed
in accordance with the California Environmental Quality
Act by the Planning Director and a Certificate of
Exemption was issued for each of the above projects as it
was determined that they are categorically exempt from
review (class 1) Statute 15267.
D. Prosect Description
Fiscal Year 1993-1994 CDBG contracts: These three
contracts were received from the County in late January
of 1994 and require execution by the Mayor before
expenditure of the Federal funds can commence. The three
contracts are as follows:
C41454: Rehabilitation of Mobile Homes: $70,000.00.
Under this ongoing CDBG program, low income
grant recipients receive up to $5,000 for the
correction of health and safety violations on
the mobile homes. (An increase in the grant
amount is being requested below under
modifications to the Mobile Home Improvement
Policy and Procedure Manual). All seven of the
City's mobile home parks are eligible for this
program.
This CDBG program has been aggressively
expanded this past year by no longer utilizing
a consultant to administer the program and by
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Agenda Item 3 March 1, 1994
assigning a staff member to administer the
program. Currently there are approximately 21
mobile homes undergoing rehabilitation as part
of this program and an additional 20 mobile
homes are anticipated to be completed by July
of 1994. This represents a 250°s increase over
the number of mobile homes rehabilitated last
year. It is anticipated that an additional
100-150 mobile homes have outstanding health
and safety violations and households that
would qualify under the Department of Housing
and Urban Development's (HUD) income
requirements for assistance under this
program.
C41455: Rehabilitation of Private Properties:
$30,000.00. This is also an ongoing CDBG
program which is now administered by City
staff. Under this program, low income
households can receive up to $5,000 in a grant
and up to $5,000 in a 0% deferred interest
loan to fund rehabilitations of their single
family homes to address current health and
safety code violations.
Currently there are eight applicants on the
eligibility list for these loans and grants
and the processing of all of these
applications is anticipated to be complete by
the end of the calendar year. It is
anticipated that an additional 20-30
households will be applying for assistance
under this program in the next calendar year.
C41456: Public Facilities and Improvements- Lacouague
Building: $34,000.00. This is a continuation
of a rehabilitation effort that received CDBG
funding in Year 16 (fiscal year 1990-1991) for
the design of the proposed rehabilitation of
this building. The funds allocated in this
contract are for the actual construction of
the improvements and rehabilitation of the
building. The City Council approved the
reprogramming of funds into the Year 16
contract ($17,692.16) (CC Reso. 93-12-7-1)
which are also to be used for the construction
of the improvements to this building.
Therefore, the total amount of grant funding
available for this project under the Year 16
and Year 19 contracts is ($51,692.16).
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Agenda Item 4 March 1, 1994
ON
Modifications to the Fiscal Year 1992-1993 CDBG Contract:
Funds are being reprogrammed from three existing CDBG
contracts from previous years which have never been
executed and are no longer feasible. The reason for the
reprogramming of these funds is that the Department of
Housing and Urban Development (HUD), who issues the
funding, has set new guidelines for the CDBG program
which state that all funding must be utilized within 18
months from receipt of those funds (signing of the
contracts). The three contracts from which funds are
being reprogrammed are from Years 11 (2 of them)(Fiscal
Year 1985-1986) and Year 17 (Fiscal Year 1991-1992) and
as such are subject to being reassumed by HUD unless the
City reprograms them into eligible and active contracts
such as the Mobile Home Improvement Program.
The total amount of funds to be reprogrammed are $48,560
which will enable approximately 4-9 additional mobile
homes to be rehabilitated in this funding year. As
stated earlier, the Mobile Home Improvement Program is
the City's most active and most successful CDBG program
to date and therefore HUD has determined that it is
eligible to receive the reprogrammed funds described
above.
Procedure Manual: Currently this manual, which dictates
how the Mobile Home Improvement program is implemented,
allows for grants of up to $5,000.00 per household
(attachment 4). The $5,000.00 amount was decided upon in
1989 based on the average cost of rehabilitating a mobile
home. Typical correction of health and safety code
violations include repair/replacement of the roof,
replacement of galvanized plumbing pipes with copper
pipes, pigtailing aluminum wiring at the sockets and
terminals with copper wiring and replacement of porch
flooring and stairs. On the average these costs run
anywhere from $3,500 to $13,000 depending on the extent
of the needed work. In the past any repairs over the
$5,000 limit had to be paid by the coach owner, who
typically did not have the money to make the repairs and
therefore they went uncorrected.
The County also operates a Mobile Home Improvement
program and under their program does not have any limits
for the amount of assistance a coach owner can receive.
The requested $15,000 limit was discussed with the
County, who are in support of this limit, and who have
suggested that rather than going from a $5,000 limit to
no limits, that the City try the $15,000 limit first to
determine if it is sufficient. It is staff's experience
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Agenda Item 5 March 1, 1994
thus far, that the $15,000 limit for grants will suffice
for meeting the needs of the mobile home owners in the
City. Therefore, staff recommends amending the current
Mobile Home Improvement Policy and Procedure Manual to
reflect a $15,000 grant limit. All Year 18 and 19 CDBG
Mobile Home Improvement contracts with the County will be
modified accordingly if this amendment is approved by the
City.
4. Fiscal Year 1993-1994 HOME Contract: This contract
(C41535) was received from the County on February 14,
1994 and is for a grant amount of $50,000. The County
has specified that the funds are to be utilized primarily
for rehabilitation activities of owner occupied low
income housing within the City, such as the existing
mobile home and single family home rehabilitation
programs. None of the HOME funds are to be used for
direct rental assistance, and if rental units are
rehabilitated they will be subject to a 10 year
affordability requirement, per HOME Guidelines.
E. Issues
No issues have been identified.
F. Staff Analysis
By reprogramming funds ($48,560) from CDBG contracts which are
no longer viable, the City will be able to assist
approximately 4-9 more mobile home owners this funding year
than would have been possible under HUD's initial award.
The low income households of the City will benefit from the
increase in Federal funds allocated for their assistance.
This increase in households assisted with CDBG funding also
significantly increases the City's standing for future receipt
of grants from HUD as these awards are largely based upon the
City's demonstrated expenditure of funds and the number of
households assisted.
Two other facts exist which also contribute favorably to the
City's likelihood of receiving additional Federal and State
funding in the future and the City's increased ability to
attract both non-profit and for-profit developers of low
income housing. These facts are that the administration of
the City's Housing Services is now being done by a City staff
member and no longer by an outside consultant, and that the
City's has recently exhibited a more aggressive
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Agenda Item 6 March 1, 1994
approach to providing more low income related housing
assistance as evidenced in the Year 20 CDBG application, the
new Mortgage Credit Certificate Program and the Housing
Opportunities Program, which is under development.
FINANCIAL CONSIDERATION
If the above requested funds are approved for reprogramming and the
Year 19 CDBG and Year 2 HOME contracts are authorized for signature
by the Mayor, the total for all active CDBG and HOME (Years 16, 18
and 19) grants will be $405,252 (attachment 6). The City is
authorized to spend $60,050 of these funds on staff costs
associated with the administration/management of these contracts.
Any additional staff costs are billed to the CRA set-aside fund for
low income housing related projects and do not come out of the
City's General Fund. This represents a savings in staff costs to
the City's General Fund. The remaining $345,202 of CDBG and HOME
funds is to be utilized for project implementation costs within the
next 18 months.
Staff will make a presentation to the County regarding the Year 20
CDBG and HOME application on February 22, 1994. The City will
receive notification of the County's recommendation to HUD for
funding of the Year 20 CDBG and HOME program by March 21, 1994.
PUBLIC NOTIFICATION
A Public Hearing Notice including the project description, date,
time and location of said hearing was published in the Capistrano
valley News.
ALTERNATE ACTIONS
1. Approve authorizing the Mayor to execute the
modifications to the Fiscal Year 1992-1993 Community
Development Block Grant contracts and to execute the
Fiscal Year 1993-1994 Community Development Block Grant
and HOME contracts and adopt the resolution modifying the
Mobile Home Improvement Program Policy and Procedure
Manual, or;
2. Deny to authorize the Mayor to execute the modifications
to the Fiscal Year 1992-1993 Community Development Block
Grant contracts and to execute the Fiscal Year 1993-1994
Community Development Block Grant and HOME contracts and
adopt the resolution modifying the Mobile Home
Improvement Program Policy and Procedure Manual, or;
3. Continue the item and direct staff to return with further
information on specified issues.
Agenda Item 7 March 1, 1994
RECOMMENDATION
By Motion, authorize the Mayor to execute the modifications to the
Fiscal Year 1992-1993 Community Development Block Grant contracts
and to execute the Fiscal Year 1993-1994 Community Development
Block Grant and HOME contracts and adopt the resolution modifying
the Mobile Home Improvement Program Policy and Procedure Manual.
Respectfully submitted,
�ir/1�V�s
Thomas Tomlinson,
Planning Director
Attachments
1. Draft Resolution 94-3-1
2. Fiscal Year 1993-1994 Contracts
3. Fiscal Year 1992-1993 Contract
4. Modified Mobile Home Improvement Policy and Procedure Manual
S. Fiscal Year 1993-1994 HOME Contract
6. CDBG and HOME Funds Worksheet
CP\CDBGMOAI.CC
TT: MR: hs
RESOLUTION NO. 94-3-1-2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING THE MAYOR TO
EXECUTE MODIFICATIONS TO THE YEAR 18 COMMUNITY
DEVELOPMENT BLOCK GRANT CONTRACTS AND TO EXECUTE
THE YEAR 19 COMMUNITY DEVELOPMENT BLOCK GRANT
CONTRACTS AND APPROVING MODIFICATIONS TO THE MOBILE
HOME IMPROVEMENT POLICY AND PROCEDURE MANUAL TO
ALLOW FOR GRANTS OF UP TO $15,000 PER HOUSEHOLD
WHEREAS, the applicant, the City of San Juan Capistrano, has requested that the
City Council authorize the Mayor to execute modifications to the Year 18 Community Development
Block Grant contracts and to execute the Year 19 Community Development Block Grant contracts
and to approve modifications to the Mobile Home Improvement Program Policy and Procedure
Manual to allow for grants of up to $15,000 per household; and,
WHEREAS, the Planning Director has reviewed the proposed contracts and
modifications in accordance with the California Environmental Quality Act and has determined that
the projects are categorically exempt from review (Class 1) Statute 15267, and therefore issued a
Certificate of Exemption; and,
WHEREAS, a public hearing has been duly advertised and held to review and
receive public testimony on the applications; and,
WHEREAS, the City Council of the City of San Juan Capistrano finds and
determines as follows:
The proposed modifications to the Year 18 contract and the proposed Year
19 contracts for Community Development Block Grants will provide
additional funding to assist low-income households within the City.
2. The proposed modification to the Mobile Home Improvement Policy and
Procedure Manual increasing the maximum grant amount to $15,000 per
household will enable low-income households to receive adequate funding
to correct their outstanding health and safety code violations and to improve
the quality of their mobile homes.
NOW, THEREFORE, BE iT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby authorize the Mayor to execute modifications to the Year 18
Community Development Block Grant contracts and to execute the Year 19 Community
4-
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Development Block Grant contracts and does approve of the proposed modifications to the Mobile
Home Improvement Program Policy and Procedure Manual to allow for grants of up to S 15.000 per
household.
PASSED, APPROVED, AND ADOPTED this 1st day of
March .1994.
GrA.LENE C BELL, MA7R
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California,
DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No.
94-3-1-2 adopted by the City Council of the City of San Juan Capistrano, California,
at a regular meeting thereof held on the lst day of March 1994, by the
following vote:
AYES: Council Members Jones, Hausdorfer, Nash, Vasquez and
Mayor Campbell
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JOMSeW, CITY CLERK
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ATTACHMENTS 2 - 5
These attachments are available for public review at the City
Clerk's counter and a copy is available in the City Council
office for the City Council's review.
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CDBG AND HOME PROGRAMS
FUNDING
Total Proi. Admin
Year 16: Lacouague Building: C40937: $17,692/ $14,154/ $ 3,538
Year
18:
Mobile
Home
Rehab:
C41176:
$98,560/
$78,848/
$19,712
Year
18:
Single
Fam.
Rehab:
C41175:
$25,000/
$20,000/
$ 5,000
Year
19:
Lacouague Building:
C41456:
$34,000/
$27,200/
$ 6,800
Year
19:
Mobile
Home
Rehab:
C41454:
$70,000/
$56,000/
$14,000
Year
19:
Single
Fam.
Rehab:
C41455:
$30,000/
$24,000/
$ 6,000
Total CDBG Funds: $275,252 $220,202 $55,050
HOME
Year 18: Mobile Home Rehab: C41244: $80,000/ $80,000/ none
Year 19: Undetermined: C -----: $50,000/ $45,000/ $5,000
-------------------------------------------------------------------
Total HOME Funds: $130,000 $125,000 $5,000
Totals
Effective 2/94
ATTACHMENT 6
Tota
Pro!.
Admin
Lacouague Building:
$ 51,692
$ 41,354
$
10,338
Mobile Home Rehab:
$168,560
$134,848
$
33,712
Single Fam. Rehab:
$ 551000
$ 44,000
$
11,000
HOME:
------------------------------------------------------------------
$130,000
$125,000
$
5,000
Total Funds:
$405,252
$345,202
$
60,050
Effective 2/94
ATTACHMENT 6