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Resolution Number 98-10-20-2317 RESOLUTION NO. 98-10-20-2 APPROVING SUBMITTAL OF APPLICATION - HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIP PROGRAM; THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND, ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIP PROGRAM WHEREAS, the City of San Juan Capistrano, political subdivision of the State of California, wishes to apply for and receive an allocation of funds through the HOME Investment Partnership Program (hereinafter referred to as "HOME"); and, WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as the "Department") has issued a Notice of Funding Availability for the HOME program and is authorized to approve funding allocations which will be made available directly through the U. S. Department of Housing and Urban Development (HUD) to be used for the purposes set forth in Title 11 of the Cranston -Gonzalez National Affordable Housing Act of 1990, the implementing regulations set forth in Title 24 of the Code of Federal Regulations, Part 92, and Title 25 of the California Code of Regulations commencing with Section 8200; and, WHEREAS, the City of San Juan Capistrano wishes to submit an application to obtain from the Department an allocation of HOME funds totaling $500,000 as follows: $477,379 for owner -occupied housing rehabilitation and $22,621 for administrative funds; and, WHEREAS, the proposed project and program are consistent with the policies and objectives of the San Juan Capistrano General Plan; and, WHEREAS, the proposed project is consistent with the policies and objective of the San Juan Capistrano Housing Element. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: 1. The City of San Juan Capistrano shall submitto the Department an application to participate in the HOME program in response to the Notice of Funding Availability issued on August 28, 1998, which will request a funding allocation of $477,379 for the following owner - occupied housing rehabilitation program and $22,621 in administrative funds totaling $500,000 for the following activities: -1- 318 Owner -Occupied Housing Rehabilitation Program -This program consists of providing secured, zero percent interest rehabilitation loans to eligible low- and moderate - income households. Up to $25,000 is proposed to be provided to eligible households to make necessary health and safety repairs to HOME -eligible housing units. Soft costs directly related to the loan for the property being rehabilitated with HOME Program Funds, such as credit reports, appraisals, application processing fee, inspection service fees and specifications, engineering costs, recording fees, etc., will be paid for through the loan made to the homeowner. This will shift a majority of the administrative costs from the City's limited administrative funds to the homeowner. 2. If the application for funding is approved, the City of San Juan Capistrano hereby agrees to use the HOME funds for eligible activities in the manner presented in the application as approved by the Department and in accordance with regulations cited above. It also may execute any and all other instruments necessary or required by the Department or HUD for participation in the HOME program. 3. The City of San Juan Capistrano authorizes George Scarborough, Citv Manager, to execute in the name of the City of San Juan Capistrano, the application, the Standard Agreement, and all other documents required by the Department or HUD for participation in the HOME program, and any amendments thereto. PASSED, APPROVED, AND ADOPTED this 20th day of October , 1998. ATTEST: CITY CLERK -2- 319 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. 98-10-20-2 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 20th day of October 1998, by the following vote: AYES: Council Members Greiner, Hart, Campbell and Mayor Jones NOES: None ABSTAIN: None ABSENT: Council Member Swerdlin (SEAL) CHERYL JO SJO S , CITY CLERK -3-