1990-1010_ORANGE , COUNTY OF_Memorandum of Understanding• 4 Contract No. C41244
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
1 TITLE OF PROJECT: City of San Juan Capistrano: Housing
Rehabilitation Activities (HOME Program)
2 MEMORANDUM OF CONTRACT entered into this 1st day of Dec, 1992.
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4 BY AND BETWEEN
5 CITY OF SAN JUAN CAPISTRANO, municipal
6 corporation, hereinafter referred to
as CITY,
7 AND
8 COUNTY OF ORANGE, a political subdivi-
sion of the State of California and
recognized Urban County under the
1Q Federal Housing and Community
Development Act of 1974 (Public Law
11 93-383), as amended, hereinafter
referred to as COUNTY.
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13 I WHEREAS, COUNTY and CITY previously entered into a Cooperation
14 Agreement dated October 10, 1990, in which both parties agreed to
15 cooperate in the undertaking, or assist in the undertaking, of
16 community development and housing assistance activities, and
17 WHEREAS, the U.S. Department of Housing and Urban Development
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18 I hereinafter referred to as HUD, has made available to the County
19 additional housing funds under its HOME Investment Partnership
20` Program, and
211 WHEREAS, the CITY has submitted to the COUNTY an application for
22 funding of project(s) which included said housing project hereinafter
231 described, and that project was included in the COUNTY adopted HOME
24 INVESTMENT PARTNERSHIP PROGRAM DESCRIPTION on March 10, 1992
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(Resolution NO. 92-227), and
26 WHEREAS, HUD accepted and certified the aforementioned PROGRAM
27 DESCRIPTION, and the COUNTY has entered into a separate agreement
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i Contract No. C41244
1 dated May 8, 1992 with HUD to fund said project.
2 NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties
3 that the following provisions listed as well as all applicable
4 Federal, State and County laws and regulations including the attached
5 SPECIAL PROVISIONS, identified as Exhibit "A", Exhibits "B" and "C",
6 are part of this Contract.
7 1. For the PURPOSES OF THIS CONTRACT the following definitions
8 shall apply:
9 a. Project Manager: The party responsible for, but whose
10 responsibility is not limited to the following: Contracting,
11 monitoring and implementing the project through completion.
12 b. Director: The Director of the Orange County
13 Environmental Management Agency (hereinafter referred to as EMA) or
14 his designee.
15 c. Reimbursable Basis: The CITY will provide the funds for
16 the project and submit proof of payment to the COUNTY, whereby upon
17 approval, the COUNTY will forward HOME Investment Partnership Program
1$1 (hereinafter referred to as HOME) funds to repay the CITY.
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19 2. It is understood that the CITY will act as PROJECT MANAGER
20 for the project described as: The City of San Juan Capistrano will
21 utilize HOME funds to provide low- interest loans, deferred payment
22 loans, Rebates and grants to low- and moderate -income persons for
23 housing rehabilitation Citywide (see attached map, EXHIBIT "B"). All
24 work completed must meet standards set by EXHIBIT "C" or better. No
25 administrative costs are covered by this agreement.
26 A. The Contract period for this project shall begin on July 1,
27 1992 for Fiscal Year 1992-93 and eligible costs may therefore be
28 incurred against funds provided through this Contract effective
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0 Contract No. C41244
3. It is agreed by all parties that the project shall be
completed and all funds provided through this Contract shall be
expended on eligible project activities prior to December 31, 1993.
Invoices for all approved project costs funded by the HOME Program
under this Contract shall be submitted within 180 days after the above
date. The date for project completion and expenditure of all funds
may be extended at the discretion of the DIRECTOR, to a maximum period
of one year, through written notification to the CITY. In the event
of such an extension, the deadline for submittal of invoices shall be
180 days after the new completion date. After Contract expiration,
all unexpended funds remaining from this Contract may be reallocated
by the COUNTY to another eligible project(s) within the Urban County
HOME Program.
4. CITY agrees:
a. Any proposed amendment to this Contract shall be
submitted to and approved by the COUNTY, prior to commencement by CITY
of any activity covered by said amendment.
b. To submit any and all third -party contracts proposed for
funding through this Contract to DIRECTOR for review and approval
prior to award of such contracts by CITY.
c. To comply with CDBG and HOME Programs Regulations, as may
be periodically revised by HUD, office of Management and Budget, or
other Federal agencies, and including laws and policies applicable to
the CDBG and HOME Programs.
d. To maintain accounting records, official files, and other
evidence pertaining to costs incurred as required by all applicable
HUD regulations, and all of these shall be accessible for the purposes
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Contract No. C41244
of monitoring, audit, reporting or review by duly authorized
representatives of COUNTY or HUD. These records shall be kept
available at CITY's office during the project's contract period and
thereafter for three (3) years from the date of final CITY receipt of
HUD CDBG funds through this Contract.
e. That DIRECTOR shall periodically evaluate the CITY's
progress in complying with the terms of this Contract. CITY shall
cooperate fully during such monitoring. DIRECTOR shall report the
findings of each monitoring to the CITY and Orange County Board of
Supervisors. If it is determined by the Board of Supervisors that
CITY performance or progress on performance is unsatisfactory, the
Board of Supervisors may withhold further funding on the project
pending resolution of the unsatisfactory condition(s), or may
terminate this Contract. In addition, the Board of Supervisors may
require the CITY to reimburse COUNTY any funds that it determines to
be improperly expended or not expended on the project in a timely
manner based on applicable CDBG Program Regulations.
f. That if it is determined by HUD that funds were not
expended in compliance with the applicable Federal laws and
regulations, CITY will refund to COUNTY within ninety 90 days
thereafter such sums as were determined by HUD to have been improperly
expended.
g. When the project is completed, all unexpended funds
remaining will be returned to the COUNTY as soon as practicable, but
in any event, within 180 days thereafter. DIRECTOR may then
reallocate returned funds to another Urban County project(s)
previously approved by the Board of Supervisors. Returned funds as
such, may be allocated by the DIRECTOR up to the lesser amount of ten
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percent (10%) of total Contract funds provided herein Section 5.a. or
Ten Thousand Dollars ($10,000.00).
h. Should the COUNTY receive returned funds from other Urban
County projects, funding for this Contract, upon proof of anticipated
cost overruns, may be increased at the discretion and upon written
authorization of the DIRECTOR up to the lesser amount of ten percent
(10%) of total Contract funds provided herein Section 5.a. or Ten
Thousand Dollars ($10,000.00).
i. To assume responsibility for compliance with the
California Environmental Quality Act (CEQA) and to provide COUNTY with
necessary information to comply with the National Environmental Policy
Act (NEPA) prior to commencing project implementation. This may
include, when applicable, CITY preparation of NEPA documentation in
coordination with EMA staff.
j. To be responsible for design and inspection, including
funding the costs related to those activities, unless funding for
design and inspection activities is provided for in Section 5.a. of
this Contract.
5. Project Funding:
a. Project will be financed under this Contract as follows:
Total HOME Funds $ 80,000
(Eighty Thousand Dollars and no/100).
b. COUNTY shall not be responsible for any costs which
exceed the approved HOME funding amount as referenced in Section 5.a.
unless otherwise provided in advance as referenced in Section 4.h.
c. Payment by the COUNTY to the CITY shall be on a
reimbursable basis unless CITY has been authorized and issued cash
advances at the discretion of the DIRECTOR under this Contract.
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d. Cash advances requested by the CITY under this Contract
may be made by the DIRECTOR to the CITY if the following conditions
are met:
(1) The CITY has demonstrated to DIRECTOR through
certification in a form prescribed by DIRECTOR and subsequently
through performance, its willingness and capacity to establish CITY
financial procedures that will minimize the time elapsing between the
receipt of funds and proper disbursement of such funds.
(2) The CITY certifies to DIRECTOR, that the CITY's
financial management system meets the standards for fund control and
accountability prescribed in Office of Management and Budget Circular
No. A-102, as periodically amended.
(3) The CITY complies with the cash advance procedures
required by financial procedures of EMA. These procedures require
that upon written receipt of funds from the COUNTY, the CITY shall
disburse payment(s) to vendor(s) within five (5) working days and
submit evidence of such disbursement(s) (i.e., warrant copies, etc.)
to the DIRECTOR.
If the CITY is subsequently found, by DIRECTOR, to be in
noncompliance with Section 5.d.(1) through Section 5.d.(3), CITY shall
be paid on a reimbursable basis.
e. Reimbursable basis payments, as referred to in Section
5.c. and/or cash advances described in Section 5.d. shall be made in
accordance with EMA financial procedures. In the event of conflict
between EMA financial procedures and any applicable statutes, rules or
regulations of HUD, including Office of Management and Budget Circular
No. A-102, the latter shall prevail.
6. CITY must inform the DIRECTOR (through periodic reports
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requested by EMA staff) of any income generated by the expenditure of
HOME funds received by the CITY; and that per applicable Federal
requirements, certain program income must be paid to the COUNTY (e.g.,
interest earned on CDBG cash advances); and/or, the CITY may retain
such program income only if that program income is used exclusively
for eligible activities, at the discretion of the DIRECTOR, and in
accordance with all HOME requirements as may then apply.
a. CITY shall keep and maintain appropriate records on the
use of any such program income as may be required by EMA staff since
the COUNTY has the responsibility of monitoring and reporting program
income to HUD.
b. In the event of CITY close-out or change in status of the
participating CITY in the Urban County CDBG/HOME Programs, any program
income at that time or received subsequent to the close-out or change
in status shall be paid by CITY to the COUNTY within 90 days
thereafter.
7. Any proposed modification or change in use of real property
acquired or improved in whole or in part by HOME funds from that
planned at the time of the acquisition or improvement, including
disposition, must be reported by CITY to the COUNTY and receive COUNTY
concurrence thereto in advance of implementing the modification or
change in use.
a. Should the disposition, sale or transfer of such real
property acquired or improved in whole or in part using HOME funds
result in a use which does not qualify under HOME Regulations, the
COUNTY shall be reimbursed by CITY in an amount equal to the current
fair market value (less any portion thereof attributable to
expenditures of non -HOME funds).
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9 Contract No. C41244
b. Any program income generated from the disposition,
transfer or sale of such property prior to or subsequent to the CITY
close-out or change in status of the CITY in the Urban County CDBG
Program may be either used by CITY for other specific eligible
activities in the CITY or paid to the COUNTY for other eligible Urban
County activities, as determined in advance of the expenditure at the
discretion of the COUNTY.
S. CITY shall obtain an annual audit performed in accordance.
with OMB Circular A-128 and forward a copy to DIRECTOR. DIRECTOR
shall have the right to ensure that necessary corrective actions are
made by the CITY for any audit findings pertinent to CITY handling of
funding attributable to the HOME Program per Federal requirements.
9. Neither COUNTY nor any officer nor employee thereof shall be
responsible for any damage or liability occurring by reason of any
action or omission of CITY or its agents, associates, contractors,
subcontractors, materialmen, laborers, or any other persons, firms, or
corporations furnishing or supplying work service, materials, or
supplies in connection with CITY's performance of this Contract and
from any and all claims and losses accruing or resulting to any
persons, firm or corporation for personal injuries or property damage
resulting from or as a consequence of, CITY's performance of this
Contract under or in connection with any work, authority or
jurisdiction delegated to CITY under this Contract. It is also
understood and agreed that, pursuant to California Government Code
Section 895.4, CITY shall fully indemnify, defend and hold COUNTY
harmless from any liability imposed for injury (as defined by
California Government Code Section 810.8) occurring by reason of any
action or omission of CITY under or in connection with any work,
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. Contract No. C41244
1 authority or jurisdiction delegated to CITY under this Contract. CITY
2 shall act in an independent capacity and not as officers, employees or
3 agents of COUNTY.
4 10. Neither CITY nor any officer nor employee thereof shall
5 be responsible for any damage or liability occurring by reason of any
6 action or omission of COUNTY, its agents, associates, contractors,
7 subcontractors, materialmen, laborers, or any other persons, firms, or
8 corporations furnishing or supplying work, service, materials, or
9 supplies in connection with COUNTY's performance of this Contract and
10 from any and all claims and losses accruing or resulting to any
11 persons, firm or corporation for personal injuries or property damage
12 resulting from or as a consequence of COUNTY's performance of this
13 Contract under or in connection with any work, authority or
14 jurisdiction delegated to COUNTY under this Contract. It is also
151 understood and agreed that, pursuant to California Government Code
16 Section 895.4, COUNTY shall fully indemnify, defend and hold CITY
17 harmless from any liability imposed for injury (as defined by
18 California Government Code Section 810.8) occurring by reason of any
19 action or omission of COUNTY under or in connection with any work,
20 authority or jurisdiction delegated to COUNTY under this Contract.
21 COUNTY shall act in an independent capacity and not as officers,
22 employees or agents of CITY.
L8 11. Where contract funds are withheld, and at the request and
24 expense of CITY, COUNTY will accept securities equivalent to the
25 amount withheld. Such substituted security, meeting the requirements
26 of Government Code Section 4590, shall be deposited with COUNTY, or
27 with a State or Federally chartered bank as escrow agent. If security
28 is deposited with an escrow agent, it shall be covered by an escrow
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agreement.
12. In the event of CITY's failure to comply with the
provisions of this Contract, COUNTY may withhold or require CITY
reimbursement of funds, and/or terminate this Contract, and/or
allocate funds previously assigned to this Contract to another
eligible project(s) within the Urban County.
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a Contract No. C41244
IN WITNESS WHEREOF, CITY has caused this Contract to be
executed by its Mayor and attested to by its Clerk; COUNTY has caused
this Contract to be executed by the Director of EMA/Housing and
Redevelopment, all having been duly authorized by the City Council of
CITY and the Orange County Board of Supervisors.
Dated: BY
Mayor
ATTEST:
(�,Citbj Clerk
COUNTY OF ORANGE, a political
subdivision of t of California
Dated: / 1�� 1� By
�r avat, Director,
ing and Redevelopment
APPROVED AS TO FORM• 6
TERRY ANDRUS, COUNTY COUNSEZ
ORANGE COUNTY, CALIFORNIA
By
AS TO FINANCIAL PROVISIONS: H CD
r
LC. R.
APPROVED AS TO ACCOUNTING PROVISIONS:
By
E Aocounting Services
MM:bjg/ch5AW2-4.4CI
(8/24/92)
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Acctg. QSyA
Env.
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Exhibit "A" to COUNTY/CITY HOME CONTRACT
SPECIAL PROVISIONS
HOME INVESTMENT PARTNERSHIP PROGRAM
A. Equal Employment Opportunity
In carrying out the program, the CITY shall not discriminate
against any employee or applicant for employment because of race,
color, religion, sex or national origin. The CITY shall take
affirmative action to ensure that applicants for employment are
employed and that employees are treated during employment, without
regard to their race, color, religion, sex or national origin. Such
action shall include, but not be limited to, the following:
employment, upgrading, demotion or transfer; recruitment advertising;
layoff or termination; rates of pay or other form, compensation; and
selection for training, including apprenticeship. The CITY shall post
in conspicuous places, available to employees and applicants for
employment, notices to be provided by the COUNTY setting forth the
provisions of this nondiscrimination clause. The CITY shall, in all
solicitations or advertisements for employees placed by or on behalf
of the CITY, state that all qualified applicants will receive
consideration for employment without regard to race, color, religion,
sex or national origin. The CITY shall incorporate the foregoing
requirements of this paragraph in all of its contracts for program
work and will require all of its contractors for such work to
incorporate such requirements in all subcontracts for program work.
Such contracts shall be subject to HUD Equal Employment Opportunity
regulation 24 CFR Part 130 as applicable to HUD assisted construction
contracts.
B. Non -Discrimination
The CITY in an activity directly or indirectly financed under this
contract, shall comply with:
1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88-
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• Exhibit "A" toloOUNTY/CITY HOME CONTRACT
1 352), and the regulations issued pursuant thereto (24 CFR Part 1),
2 which provides that no person in the United States shall on the
3 grounds of race, color, or national origin, be excluded from
4 participation in, be denied the benefits of, or be otherwise subjected
to discrimination under any program or activity for which the
5
6 applicant receives Federal financial assistance and will immediately
7 take any measures necessary to effectuate this assurance. If any real
8, property or structure thereon is provided or improved with the aid of
Federal financial assistance extended to the applicant, this assurance
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shall obligate the applicant, or in the case of any transfer of such
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11 property, any transferee, for the period during which the real
12 property or structure is used for a purpose for which the Federal
financial assistance is extended, or for another purpose involving the
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14 provision of similar services or benefits.
2. Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284),
15
as amended, administering all programs and activities relating to
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17 housing and community development in a manner to affirmatively further
18 fair housing; and will take action to affirmatively further fair
19 housing in the sale or rental of housing, the financing of housing,
20 and the provision of brokerage services.
3. Section 109 of the Housing and Community Development Act of
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22 1974, and the regulations issued pursuant thereto (24 CFR Part
23 570.602), which provides that no person in the United States shall on
24 the grounds of race, color, national origin, or sex, be excluded from
25 participation in, be denied the benefits of, or be subjected to
26 discrimination under, any program or activity funded in whole or in
27 part with funds provided under this Part.
28 4. Executive Order 11063 on equal opportunity in housing
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• Exhibit "A" t4OUNTY/CITY HOME CONTRACT
and nondiscrimination in the sale or rental of housing built with
Federal assistance. (Source: Title 24 CFR Part 570.601, revised
April 1, 1984)
C. Accessibility/Usability of Facilities and Buildings for Physically
Handicapped
The CITY in any activity directly or indirectly financed under this
contract shall require every building or facility (other than a
privately owned residential structure) designed, constructed, or
altered with funds provided under this Part to comply with the
"American Standard Specifications for Making Buildings and Facilities
Accessible to, and Usable by, the Physically Handicapped," Number A-
117.1 -R 1971, subject to the exceptions contained in 41 CFR 101-
19.604. The CITY will be responsible for conducting inspections to
insure compliance with these specifications by any contractor or
subcontractor. (Source: 24 CFR Part 570.202(K), revised April 1,
1984)
D. Relocation
1. The CITY in any activity directly or indirectly financed under
this contract shall:
a. To .the greatest extent practicable under State law,
comply with Sections 301 and 302 of Title III (Uniform Real Property
Acquisition Policy) of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and will comply with
Sections 303 and 304 of Title III, and HUD implementing instructions
at 24 CFR Part 42; and
b. Inform affected persons of their rights and of the
acquisition policies and procedures set forth in the regulations in 24
CFR Part 42 and 570.606 revised April 1, 1984)
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• Exhibit "A" to COUNTY/CITY HOME CONTRACT
2. The CITY shall also:
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2 a. Comply with Title II (Uniform Relocation Assistance)
of the Uniform Relocation Assistance and Real Property Acquisition
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Policies Act of 1970 and -HUD implementing regulations at 24 CFR Part
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42 and 570.606;
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b. Provide relocation payments and offer relocation
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assistance as described in Section 205 of the Uniform Relocation
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8 Assistance Act to all persons displaced as a result of acquisition of
9 real property for an activity assisted under the Community Development
10 Block Grant Program. Such payments and assistance shall be provided
11 in a fair and consistent and equitable manner that insures that the
12 relocation process does not result in different or separate treatment
13 of such persons on account of race, color, religion, national origin,
14 sex, or source of income;
15 3. Assure that, within a reasonable period to time prior to
16displacement, comparable decent, safe and sanitary replacement
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17 dwellings will be available to all displaced families and individuals
181 and that the range of choices available to such persons will not vary
19 on account of their race, color, religion, national origin, sex, or
20 source of income;.and
21 4. Inform affected persons of the relocation assistance,
22 policies and procedures set forth in the regulations at 24 CFR Part 42
23 and 570.606. (Source: Title 24 CFR Part 570.606, revised April 1,
24 1984)
E. Lead -Based Paint Hazards
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The construction or rehabilitation of residential structures with
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27 assistance provided under this Contract is subject to the HUD Lead -
28 Base Paint regulations, 24 CFR Part 35. Any grants or loans made
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Exhibit "A" toitUNTY/CITY HOME CONTRACT
by the CITY or work performed by the CITY for the rehabilitation of
residential structures with assistance provided under this Contract
shall be made subject to the provisions for the elimination of lead -
base paint hazards under subpart C of said regulations and the CITY
shall be responsible for the inspections and certifications required
under Section 35.24 thereof. (Source: H/CD Funding Agreement #5 and
24 CFR Part 35 and 570.608 revised April 1, 1984)
F. Flood Disaster
This Contract is subject to the requirements of the Flood Disaster
Protection Act of 1973 (P.L. 93-234). No portion of the assistance
provided under this Contract is approved for acquisition or
construction purposes as defined under Section 3(a) of said Act, for
use in an area identified by the Secretary as having special flood
hazards, which is located in a community not then in compliance with
the requirements for participation in the national flood insurance
program pursuant to Section 201(d) of Said Act; and the use of any
assistance provided under this Contract for such acquisition or
construction in such identified areas in communities then
participating in the national flood insurance program shall be subject
to the mandatory purchase of flood insurance requirements of Section
102(a) of said Act.
Any Contract or Agreement for the sale, lease or other transfer
of land acquired, cleared, or improved with assistance provided under
this Contract shall contain, if such land is located in an area
identified by the Secretary as having special flood hazards and in
which the sale of flood insurance has been made available under the
National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et
seq., provisions obligating the transferee and its successors or
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• Exhibit "A" tcoOUNTY/CITY HOME CONTRACT
assignees to obtain and maintain, during the ownership of such land,
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such flood insurance as required with respect to financial assistance
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3 for acquisition or construction purposes under Section 102(a) of the
Flood Disaster Protection Act of 1973. Such provisions shall be
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5 required notwithstanding the fact that the construction on such land
is not itself funded with assistance provided under this Contract.
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7 (Source: H/CD Funding Agreement #3)
8The CITY shall comply with the provisions of Executive Order
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11296, relating to evaluation of flood hazards and Executive Order
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10 11288 relating to the prevention, control, and abatement of water
11 pollution. (Source: Title 24 CFR 570.605 revised
12 April 1, 1984)
G. Management Compliance
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14 The CITY in any activity directly or indirectly financed under
15 this contract shall comply with regulations, policies, guidelines and
16 requirements of OMB Circular No. A-102, Revised, and Federal
17 Management Circular 74-4: Cost principles applicable to grants and
18 contract with State and local governments, and Federal Management
19 Circular 74-7: Uniform Administrative Requirements for grant-in-aid
20 to State and local governments as they relate to the application,
21 administration, acceptance and use of Federal funds under this Part.
22 (Source: Title 24 CFR Part 570.200(4) revised April 1, 1984)
23 H. Obligations of Contractor with Respect to Certain Third Party
Relationships
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25 The CITY shall remain fully obligated under the provisions of this
26 contract notwithstanding its designation of any third party or parties
27 for the undertaking of any part of the program with respect to
28 which assistance is being provided under this contract to the CITY.
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• Exhibit "A" to*OUNTY/CITY HOME CONTRACT
1 Such third party or parties shall comply with all lawful requirements
2 of the CITY necessary to insure that the program with respect to which
3 assistance is being provided under this contract to the CITY is
carried out in accordance with the CITY's assurances and
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5 certifications, including those with respect to the assumption of
6 environmental responsibilities of the CITY under Section 104(h) of the
7 Housing and Community Development Act of 1974. (Source: H/CD Funding
S Agreement #9)
9 I. INTEREST OF CERTAIN FEDERAL OFFICIALS
.
10 No member of Delegate to the Congress of the United States and no
11 Resident Commissioner, shall be admitted to any share or part of this
12 contract or to any benefit to arise from the same. (Source: H/CD
13 Funding Agreement #10)
14 J. Interest of Members, Officers or Employees of CITY, Members of
Local Governing Body or Other Public Officials
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16No member, officer or employee of the COUNTY or CITY its designees
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17 or agents, no members of the governing body of the locality in which
18 the program is situated and no other public official of such locality
19 or localities who exercise any functions or responsibilities with
20 respect to the program during his tenure or for one year thereafter,
21 shall have any interest, direct or indirect, in any contract,
22 subcontract or the proceeds thereof, for work to be performed in
23 connection with the program assisted under this contract. The CITY
24 shall incorporate or cause to be incorporated, in all such contracts
25 or subcontracts a provision prohibiting such interest pursuant to the
26 purpose of this section. (Source: H/CD Funding
27 Agreement #11, Title 24 CFR 570.611 and 570.458(14) (M) (X), revised
28 April 1, 1984)
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• Exhibit "A" tolOUNTY/CITY HOME CONTRACT
K. Prohibition Against Payments of Bonus or Commission
The assistance provided under this contract shall not be used in
the payment of any bonus or commission for the purpose of obtaining
HUD approval of the application for such assistance or HUD
approval of application for additional assistance of any other
approval or concurrence of HUD required under this contract, provided,
however, that reasonable fees or bona fide technical, consultant,
managerial or other such services, other than actual solicitation, are
not hereby prohibited if otherwise eligible as program cost. (Source:
H/CD Funding Agreement #12)
L. Hatch Act Compliance
The CITY and COUNTY shall comply with the provisions of the Hatch
Act which limits the political activity of employees. (Source: Title
24 CFR Part 570.458(14) (M) (X1), revised April 1, 1984)
M. Definitions
Throughout these Special Provisions the meaning of words shall be
that meaning given by the act, regulation, Executive Order, Federal
Management Circular, agreement, or rule cited herein as the source for
the section in which the word appears. (Source: Orange County
Counsel)
N. SECTION 92.252 Qualification as affordable housing and income
targeting: Rental Housing
As applicable housing assisted with HOME Investment Partnership
Funds must meet the Affordability requirements as follows:
(a) Rent Limitation: A rental housing project (including the
non -owner -occupied units in housing purchased with HOME funds in
accordance with 92.254) qualifies as affordable housing under this
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part only if the project:
Exhibit "A" tVOUNTY/CITY HOME CONTRACT
(1) Bears rents not greater than the lesser of
(i) The fair market rent for existing housing for comparable
units in the area as established by HUD under 888.111 of this title,
less the monthly allowance for the utilities and services (excluding
telephone) to be paid by the tenant; or
(ii) A rent that does not exceed 30 percent of the adjusted
income of a family whose gross income equals 65 percent of the median
income for the area, as determined by HUD, with adjustment for smaller
and larger families, except that HUD, with may establish income
ceilings higher or lower than 65 percent of the median for the area on
the basis of HUD's findings that such variations are necessary because
of prevailing levels of construction costs or fair market rents, or
unusually high or low family incomes. In determining the maximum
monthly rent that may be charged for a unit that is subject to this
limitation, the owner or participating jurisdiction must subtract a
monthly allowance for any utilities and services (excluding telephone)
to be paid by the tenant. HUD will provide average occupancy per unit
and adjusted income assumptions to be used in calculating the maximum
rent allowed under this paragraph (a)(1)(ii) of this section;
(2)
Has not
less
than
20 percent
of the
units
(i)
Occupied
by
very
low-income
families
who pay as a
contribution toward rent (excluding any federal or state rental
subsidy provided on behalf of the family) not more than 30 percent of
the family's monthly adjusted income as determined by HUD. To obtain
the maximum monthly rent that may be charged for a unit that is
subject to this limitation, the owner or participating jurisdiction
multiplies the annual adjusted income of the tenant family by 30
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percent and divides by 12 and, if applicable, subtracts a monthly
allowance for any utilities and services (excluding telephone) to be
paid by the tenant; or
(ii) occupied by very low-income families and bearing rents not
greater than 30 percent of the gross income of a family whose income
equals 50 percent of the median income for the area, as determined by
HUD, with adjustment for smaller and larger families, except that HUD,
may establish income ceilings higher or lower than 50 percent of the
median for the area on the basis of HUD's findings that such
variations are necessary because of prevailing levels of construction
costs or fair market rents, or unusually high or low family incomes.
In determining the maximum monthly rent that may be charged for a unit
that is subject to this limitation, the owner or participating
jurisdiction must subtract a monthly allowance for any utilities and
services (excluding telephone) to be paid by the tenant. HUD will
provide average occupancy per unit assumptions to be used in
calculating the maximum rent allowed under paragraph (a)(2)(ii) of
this section;
(3) Is occupied only by households that qualify as low-income
families;
(4) Is not refused for leasing to a holder of a certificate of
family participation under 24 CFR part 882 (Rental Certificate
Program) or a rental voucher under 24 CFR part 887 (Rental Voucher
Program) or to the holder of a comparable document evidencing
participation in a HOME tenant -based assistance program because of the
status of the prospective tenant as a holder of such certificate of
family participation, rental voucher, or comparable HOME tenant -based
assistance document; and
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• Exhibit "A" tVOUNTY/CITY HOME CONTRACT
(5) Will remain affordable, pursuant to deed restrictions, for
not less than the appropriate period, beginning after project
completion, as specified in the following table, without regard to the
term of the mortgage or to transfer of ownership.
Activity Minimum period of
affordability in years
Rehabilitation or acquisition
of existing housing per unit
amount of HOME funds:
Under $15,000 .......................... 5
$15,000 to $40,000 .....................10
Over $40,000......... ............15
New construction or acquisition
of newly constructed housing..............20
(b) Rent schedule and utility allowances. The participating
jurisdiction must review and approve rents proposed by the owner for
units with "flat rents," i.e., units subject to the maximum rent
limitations in paragraph (a)(1), (a)(1)(ii), or (a)(2)(ii) of this
section, and, if applicable, must review and approve, for all units
subject to the maximum rent limitations paragraph (a) of this section,
the monthly allowances, proposed by the owner, for utilities and
services to be paid by the tenant. The owner must reexamine the
income of each tenant household living in low-income units at least
annually. The maximum monthly rent must be recalculated by the owner
and reviewed and approved by the participating jurisdiction annually,
and may change as changes in the applicable gross rent amounts, the
income adjustments, or the monthly allowance for utilities and
services warrant. Any increase in rents
for lower income units is subject to the provisions of outstanding
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Exhibit "A" toIdOUNTY/CITY HOME CONTRACT
leases, in any event, the owner must provide tenants of those units
not less than 30 days prior written notice before implementing any
increase in rents.
(c) Increases in tenant income. Rental housing qualifies as
affordable housing despite a temporary noncompliance with paragraph
(a)(2) or (a)(3) of this section, if the noncompliance is caused by
increases in the incomes of existing tenants and if actions
satisfactory to HUD are being taken to ensure that all vacancies are
filled in accordance with this section until the noncompliance is
corrected. Tenants who no longer qualify as low-income families must
pay as rent not less than 30 percent of the family's adjusted monthly
income, as recertified annually.
(d) Adjustment of qualifying rent. HUD may adjust the
qualifying rent established for a project under paragraph (a)(1) of
this section, only if HUD finds that an adjustment is necessary to
support the continued financial viability of the project and only by
an amount that HUD determines in necessary to maintain continued
financial viability of the project. HUD expects that this authority
will be used sparingly. Adjustments in fair market rents and in
median income over time should help maintain the financial viability
of a project within the qualifying rent standard in paragraph (a)(1)
of this section.
O. SECTION 92.253 TENANT AND PARTICIPANT PROTECTIONS
(a) Lease. The lease between a tenant and an owner of rental
housing assisted with HOME funds must be for not less than one year,
unless by mutual agreement between the tenant and the owner.
(b) Prohibited lease terms. The lease may not contain any
of the following provisions:
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Exhibit "A" to01OUNTY/CITY HOME CONTRACT
(1) Agreement to be sued. Agreement by the tenant to be sued,
to admit guilt, or to a judgement in favor of the owner in a lawsuit
brought in connection with the lease;
(2) Treatment of property. Agreement by the tenant that the
owner may take, hold, or sell personal property of household members
without notice to the tenant and a court decision on the rights of the
parties. This prohibition, however, does not apply to an agreement by
the tenant concerning disposition of personal property remaining in
the housing unit after the tenant has moved out of the unit. The
owner may dispose of this personal property in accordance with state
law;
(3) Excusing owner from responsibility. Agreement by the tenant
not to hold the owner or the owner's agents legally responsible for
any action or failure to act, whether intentional or negligent;
(4) Waiver of notice. Agreement of the tenant that the owner
may institute a lawsuit without notice to the tenant;
(5) Waiver of legal proceedings. Agreement by the tenant that
the owner may evict the tenant or household members without
instituting a civil court proceeding in which the tenant has the
opportunity to present a defense, or before a court decision on the
rights of the parties;
(6) Waiver of a jury trial. Agreement by the tenant to waive
any right to a trial by jury;
(7) Waiver of right to appeal court decision. Agreement by the
tenant to waive the tenant's right to appeal, or to otherwise
challenge in court, a court decision in connection with the lease; and
(8) Tenant chargeable with cost of legal actions regardless
of outcome. Agreement by the tenant to pay attorney's fees or other
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Exhibit "A" toWUNTY/CITY HOME CONTRACT
legal costs even if the tenant wins in a court proceeding by the owner
against the tenant. The tenant, however, may be obligated to pay
costs if the tenant loses.
(c) Termination of tenancy. An owner may not terminate the
tenancy or refuse to renew the lease of a tenant of rental housing
assisted with HOME funds except for serious or repeated violation of
the terms and conditions of the lease; for violation of applicable
federal, state, or local law; or for other good cause. Any
termination or refusal to renew must be preceded by not less than 30
days by the owner's service upon the tenant of a written notice
specifying the grounds for the action.
(d) Maintenance and replacement. An owner of rental housing
assisted with HOME funds must maintain the premises in compliance with
all applicable housing quality standards and local code requirements.
(e) Tenant selection. An owner of rental housing assisted with
HOME funds must adopt written tenant selection policies and criteria
that -
(1) Are consistent with the purpose of providing housing for
very low-income and low-income families,
(2) Are reasonably related to program eligibility and the
applicants' ability to perform the obligations of the lease,
(3) Give reasonable consideration to the housing needs of
families that would have a preference under 960.211 (Federal selection
preferences for admission to Public Housing) of this title; and
(4) Provide for -
(i) The selection of tenants from a written waiting list in
the chronological order of their application, insofar as is
practicable; and
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Exhibit "A" to COUNTY/CITY HOME CONTRACT
(ii) The prompt written notification to any rejected applicant
of the grounds for any rejection.
P. SECTION 92.254 QUALIFICATION AS AFFORDABLE HOUSING; HOMEOWNERSHIP:
(a) Purchase with or without rehabilitation. Housing that is
for purchase by a family qualifies as affordable housing only if the
housing:
(1)(i) Has an initial purchase price that does not exceed the
mortgage limit for the type of single family housing (1 -to 4 -family
residence, condominium unit, combination manufactured home and lot, or
manufactured home lot) for the area (including any applicable high-
cost mortgage limit published by HUD in the FEDERAL REGISTER) under
HUD's single family insuring authority under the National Housing Act.
For a cooperative unit, the purchase price for a cooperative share may
not exceed the balance remaining after subtracting from the 1 -family
mortgage limit an amount equal to the blanket mortgage covering the
cooperative development which is attributable to this cooperative
unit; and
(ii) Has an estimated appraised value after any repair needed to
meet property standards in 92.251 that does not exceed the appropriate
mortgage limit described in paragraph (a)(1)(i) of this section;
(2) Is the principal residence of an owner whose family
qualifies as a low-income family at the time of purchase;
(3) Is made available for initial purchase only to first-time
homebuyers; and
(4) Is made available for subsequent purchase only -
(i) To a low-income family that will use the property as its
principal residence; and
(ii) At a price consistent with guidelines that are established
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by the participating jurisdiction and determined by HUD to be
appropriate -
(A) To provide the owner with a fair return on investment,
including any improvements, and
(B) To ensure that the housing will remain affordable to a
reasonable range of low-income homebuyers for a period of 20 years for
newly constructed housing or otherwise for 15 years. Housing remains
affordable if the subsequent purchaser's monthly payments of
principal, interest, taxes, and insurance do not exceed 30 percent of
the gross income of a family with an income equal to 75 percent of
median income for the area, as determined by HUD with adjustments for
smaller and larger families.
(b) Rehabilitation not involving purchase. Housing that is
currently owned by a family qualifies as affordable housing only if -
(1) The value of the property, after rehabilitation, does not
exceed the mortgage limit for the type of single family housing (1- to
4 -family residence condominium unit, combination manufactured home and
lot, or manufactured home lot) for the area (including any applicable
high-cost mortgage limit published by HUD in the FEDERAL REGISTER)
under HUD's single family insuring authority under the National
Housing Act (see 24 CFR 201.10, 203.18, 203.18a, 203.18b, and 234.27);
and
(2) The housing is the principal residence of an owner whose
family qualifies as a low-income family at the time HOME funds
are committed to the housing.
Q. Federal Management Circular 74-7 has been replaced with Office of
Management and Budget (OMB) A-102. In the event said project(s) is
determined not to substantially meet all the requirements of the HOME
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Exhibit "A" to*UNTY/CITY HOME CONTRACT
Investment Partnership Program. City will cooperate with County in
the return of said funds expended on ineligible activities.
Funds so returned shall be made available for other Housing
Rehabilitation Activities as per terms of this agreement.
R. RELIGIOUS ORGANIZATION
HOME funds may not be provided to primarily religious
organizations, such as churches, for any activity including secular
activities. In addition, HOME funds may not be used to rehabilitate
or construct housing owned by primarily religious organizations or to
assist primarily religious organizations in acquiring housing.
However, HOME funds may be used by a secular entity to acquire housing
from a primarily religious organization, and a primarily religious
entity may transfer title to property to a wholly secular entity and
the entity may participate in the HOME Program in accordance with the
requirements of this part. The entity may be an existing or newly
established entity (which may be an entity established, but not
controlled, by the religious organization). The completed housing
project must be used exclusively by the owner entity for secular
purposes, available to all persons regardless of religion. In
particular, there must be no religious or membership criteria for
tenants of the property.
S. MONITORING
City will cooperate in the County monitoring of HOME Investment
Partnership Funds annually. In particular, City will cooperate with
County in monitoring all rental projects funded as provided by N, O
and P above.
T. DRUG FREE WORKPLACE
City certifies that it will maintain a drug-free workplace as
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• Exhibit "A" toePUNTY/CITY HOME CONTRACT
defined by HUD on project(s) funded by this Agreement.
U. EXCESSIVE FORCE
All parties to this Agreement certify to a policy against use of
excessive force as defined by HUD.
MM:chEXHIBIT.A
(3/24/92)
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• Census Tract Bou ntlary
SAN JUAN CAPISTRANO
Housing & Redevelopment ENVIRONMENTAi. MAi�TAGEMENT AGENCY N
7-,; � ; r "Rn
11
December 18, 1992
Mr. Dan DeMara, Planner IV
Orange County Environmental Management Agency
Housing Redevelopment
P. O. Box 4048
Santa Ana, California 92702-4048
Re: Contract No. C41244
Dear Mr. DeMara:
0
MEMBERS OF THE CITY COUNCIL
COLLENE CAMPBELL
GARY HAUSOORFER
GIL JONES
CAROLYN NASH
JEFF VASQUEZ
CITY MANAGER
GEORGESCARBOROUGH
The City Council of the City of San Juan Capistrano at its regular meeting held
December 15, 1992, approved the 18th Year CDBG/HOME Contracts for Fiscal
Year 1992-93, Contract No. C41244.
One copy of the Agreement and five signature pages are enclosed. Upon approval
of the Board of Supervisors, please return one fully -executed copy to the City
Clerk's office.
Thank you for your cooperation. If we can be of further assistance, please call.
Very truly yours,
1
Cheryl Joh n SXR
City Clerk
Enclosures
cc: Julia Kimminau
32400 PASEO ADELANTO. SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493.1171
9 0
The Mayor and City Clerk were authorized to execute the document, and the City Clerk was directed
to record the document with the County Recorder.
• �1� • �u :• Y • !� �::t � u :� •sl t t
The claim received by the City on November 30, 1992, from Charles S. LiMandri, attorney on behalf
of Marina Miramontes, in the amount of 54„500,000 for the wrongful death of her husband on June 10,
1992, was denied, as set forth in the Report dated December 15, 1992 from the City Attorney.
• ( • : J :G tit 1.►/ .'!!ul _UZI a All A 00433; If iil AOICIAIIIVZ
As set forth in the Report dated December 15, 1992, from Julia Kimminau, Management Assistant, the
contracts between the County and the City for the use of $80,000 in 18th Year Home Investment
Partnership Program funds were approved. The funds are to be used to provide grants and
grant/deferred payment loan combinations to low• and moderate -income homeowners for the
rehabilitation of mobile homes and homes throughout the City. The Mayor was authorized to execute
the contracts on behalf of the City.
Council Member Campbell left the Council Chamber due to a potential conflict of interest.
ilSt>243if1
Consideration of a request for a one-year time extension for an Architectural Control and Zone
Variance application for a 23,720 square foot Chrysler car dealership, to be located east of Valle Road
and 173 feet south of the Yates Volkswagen car dealership. The time extension was requested by the
applicant to resolve issues regarding easements, setbacks, and access with the adjacent project developer,
TMC.
Property Owners
Gary Ptleiger
12 Hunter
Coto de Caza, CA 92679
Michael J. Alex
5 Mantenida
Coto de Caza, CA 92679
Written Cgmmw9l;ad -
Report dated Deeember 15, 1997, from the Director of Planning, recommending that the time extension
be conditionally approved, to expire May 16, 1993.
Mechelle Lawrence, Assistant Planner, made an oral presentation and noted the conditions of approval
to ensure consistency with the Municipal Code.
Public HudW
Notice having been given as required by law, Mayer Jones opened the Public Hearing, and the following
persons responded:
(1) Michael Alex, 5 Mantemda, Coto de Caza, applicant, advised that the requested time extension
was necessary to meet the requirement for an easement along one side of the property, which
City Council Minutes $ 12/15/92
r'
AGENDA ITEM
TO: George Scarborough, City Manager
FROM: Julia M. Kimminau, Management Assistant
December 15, 1992
SUBJECT: Housing & Community Development Block Grant Program -
Approval of 18th Year CDBG/HOME Contracts (FY 92-93)
By motion, authorize the Mayor to execute the 18th Year CDBG/HOME
Agreements.
A. Summary and Recommendation - The City has been allocated
$80,000 in Home Investment Partnership Program (HOME) funds.
These funds will be used to provide grants and grant/deferred
payment loan combinations to low and moderate income
homeowners for the rehabilitation of mobile homes and houses
throughout the City. It is recommended that the attached
contracts with the County for the use of these funds be
approved by the City Council.
B. Background - In January 1992, the County of Orange was
notified by the U.S. Department of Housing and Urban
Development (HUD) that a new Block Grant for Housing was
available for participants in HUD's existing Community
Development Block Grant Program. These funds have been
allocated to some of the County's CDBG Program participants-
-specifically to those that have existing housing
rehabilitation programs. This is due to these Cities' ability
to initiate quick start-up projects for HOME.
The City of San Juan Capistrano has successfully implemented
housing rehabilitation programs through the use of CDBG funds
since Fiscal Year 1986-87. Based on this fact, the City has
been identified as a recipient of HOME funds for this first
application year.
FOR CITY COUNCIL AGF^�
llll.�/JJ 0/ 'y
Agenda Item - 2 - December 15, 1992
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
A Block Grant Application Committee of Community representatives
as well as a Planning Commissioner and a Los Rios Review Committee
member reviewed and approved the 18th Year Application. The
Application was submitted to the Planning Commission and the Los
Rios Review Committee as an information item.
FINANCIAL CONSIDERATIONS:
$80,000 has been budgeted in the CIP budget for Fiscal
Year 1992-93. The City will be reimbursed for expenditures on
these projects by the County Housing and Community Development
Office.
NOTIFICATION•
A public hearing was held by the City Council for the 18th Year
Application was held on November 5, 1991.
ALTERNATE ACTIONS:
1. Approve the 18th Year Agreements for CDBG/HOME funds.
2. Approve the 18th Year Agreements for CDBG/HOME funds, subject
to modifications.
3. Request additional information from staff.
By motion, authorize the Mayor to execute the 18th Year CDBG/HOME
Agreements.
Respectfully submitted,
(2 Q M -�Y-nm i �t
-at. Kimminau
Management Assistant
JMK