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Resolution Number CRA 11-06-07-01RESOLUTION NO. CRA 11-06-07-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY APPROVING THE REVISIONS TO THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY LITTLE HOLLYWOOD AFFORDABLE RENTAL HOUSING PROGRAM GUIDELINES & OPERATING PROCEDURES WHEREAS, the San Juan Capistrano Community Redevelopment Agency (the "Agency") owns the Little Hollywood project located on Assessor's Parcel Nos. 649-281- 05, 121-142-01 and 121-142-07 on Mission, Ramos Way, and Ramos Streets within the Los Rios District; and, WHEREAS, the Agency rents the housing units to low and very -low income households; and, WHEREAS, the Agency adopted the San Juan Capistrano Community Redevelopment Agency Little Hollywood Affordable Rental Housing Program Guidelines & Operating Procedures on April 18, 2000; and, WHEREAS, on August 16, 2005, the Agency adopted Declaration of Conditions, Covenants and Restrictions to make the units available for rent to low and very -low income households for a period of not less than 55 years to fulfill the Agency's inclusionary housing obligation; and, WHEREAS, the Agency Updates the San Juan Capistrano Community Redevelopment Agency Little Hollywood Affordable Rental Housing Program Guidelines & Operating Procedures on August 16, 2005; and, WHEREAS, on December 15, 2009, the Agency completed ten additional units to be included within the Little Hollywood Affordable Rental Housing Program; and, WHEREAS, the Agency Little Hollywood Affordable Rental Housing Program Guidelines & Operating Procedures require revisions to be consistent with the affordability covenants, state regulation, and management practices. NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the San Juan Capistrano Community Redevelopment Agency, San Juan Capistrano, does hereby approve the revisions to the Little Hollywood Affordable Rental Housing Program Guidelines & Operating Procedures attached hereto as Exhibit A. -1P7/I7 PASSED, APPROVED, AND ADOPTED this 7th day of June, 2011. LAURA FREESE, CHAIRMAN ATTEST: MARIA MORRIS( -1 ENY SECRETARY STATE OF CALIFORNIA ) COUNTY OF ORANGE CITY OF SAN JUAN CAPISTRANO ) I, MARIA MORRIS, appointed Agency Secretary of the Community Redevelopment Agency of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. CRA 11-06-07-01 was duly adopted by the Board of Directors of the Community Redevelopment Agency at a regular meeting thereof, held the 7th day of June, 2011 by the following vote: AYES: NOES ABSENT: ABSTAIN DIRECTORS: DIRECTORS: DIRECTORS - DIRECTORS: Allevato, Reeve None Taylor Kramer and Chair Freese Z 6/7/11 EXHIBIT "A" SAN JUAN CAPISTRANO. COMMUNITY REDEVELOPMENT AGENCY LITTLE HOLLYWOOD AFFORDABLE RENTAL HOUSING PROGRAM GUIDELINES & OPERATING PROCEDURES Adopted April 18, 2000 Amended August 16, 2005 Amended June 07, 2011 I. INTRODUCTION The San Juan Capistrano Community Redevelopment Agency (Agency) acquired, rehabilitated, and constructed single-family residences in the area known as Little Hollywood. The purpose of the program is to provide affordable housing to lower and very -low income tenant households for a period of three -to -five years to allow sufficient time for the households to improve their financial situation and become self-sufficient. The program guidelines and operating procedures provide a basis for determining applicant eligibility and rules that are to be followed by all tenant's households. II. DEFINITIONS Tenant Household - One household per unit occupied by those persons identified on the executed residential lease. Extremely Very -Low Income. Household -A household with a combined annual income for all household members 18 years of age or older that does not exceed 30 percent of the Orange County annual median income. Very -Low Income Household - A household with a combined annual income for all household members 18 years of age or older that does not exceed 50 percent of the Orange County annual median income. Lower-income Household - A household with a combined annual income for all household members 18 years of age or older that does not exceed 80 percent of the Orange County annual median income. Rental Subsidy Waiting List - A list maintained by the City of San Juan Capistrano's Planning Services Department of those persons that have submitted a written request to be added to a waiting list to receive rental assistance from the City/Agency. Declaration of Conditions Covenants and Restrictions - A document adopted by the Community Redevelopment Agency on August 16, 2005, that restricts the maximum incomes for households and the maximum rents the Agency may charge for the Agency's housing units within the Agency's project area boundaries for a period of 55 years. Page 1 out of 12 Housing Units - The Little Hollywood rental units located on Assessor's Parcel Nos. 649-281-05, 121-142-01, and 121-142-07 in the Los Rios District within the Community Redevelopment Agency project boundaries that are owned by the Community Redevelopment Agency. Housing Development -- The Little Hollywood property owned by the Community Redevelopment Agency on Assessor's Parcel Nos. 649-281-05, 121-142-01, and 121-142-07 located in the Los Rios District, adjacent to Mission Street, Ramos Way, and Ramos Street in the City of San Juan Capistrano. Monthly Rent - The total of monthly payments for use and occupancy of the Housing Unit and land and facilities associated therewith in accordance with Section V (Monthly Rental Amount) of these regulations. Additional monthly fees, utility charges, or service charges which are required of all tenants may be assessed by the Agency. Utility Allowance - The amount that may be added to the monthly rent each month for all tenant households for utility services provided by the Agency pursuant to the Utility Allowance published annually by the County of Orange Housing & Community Services Development Multi -Family Affordable Rental Housing Utility Allowance. III. ELIGIBLE TENANT HOUSEHOLDS A. U.S. Citizenship/Permanent Alien Resident Status - All occupants of the tenant household must be either a U.S. citizen or a permanent resident alien. A valid social security card, proof of citizenship and/or permanent residential alien status must be provided for all members of the household. B. Income Eligibility - For the purpose of this program, the tenant households must be certified as income eligible as a lower and/or very -low income household. The definition of a lower-income household is a Tenant Household that has a gross annual income that does not exceed 80 percent of the Orange County median income, adjusted for household size. A very - low income household is a tenant household that has a gross annual income that does not exceed 50 percent of the Orange County median income adjusted for household size. Income levels will be established annually on October 1St, based on information provided by the U.S. Department of Housing and Community Development as amended annually, for the SJC-CRA. In accordance with the Declaration of Conditions, Covenants and Restrictions adopted by the Agency on August 16, 2005, four (4) of the housing units shall be made available, rented and occupancy restricted to Lower Income Page 2 out of 12 households at an affordable rent, and an additional twenty (20) housing units shall be made available, rented and occupancy restricted to Very Low Income households at an affordable rent. Units occupied prior to August 16, 2005, with gross annual household income exceeding the lower-income household maximum, shall be eligible to remain in the Dousing units provided their income does not exceed 80 percent of the median income, adjusted for household size. The designation of particular housing units as lower income units or very low income units shall be in the sole discretion of the Agency. The unit sizes shall be rented to lower and very -low income households as follows: No. of Bedroom Very -Low Income Lower Income 4 _ __._.._._..__._..._... ..... .._.._...... C. Determination of Income - Gross annual income, includes all payments from all sources that are anticipated to be received by all adult members of the Tenant Household over the subsequent twelve (12) month period of tenancy (Exhibit C of the Declaration of Conditions, Covenants and Restrictions). D. Household Priority - The program will assist income -eligible households on the affordable housing rental subsidy waiting list according to the following preferences. • A household that is willing to take action to improve their circumstances and works towards becoming self-sufficient within three -to -five years. • Current Little Hollywood Tenant in overcrowded unit w/minor children • Current Little Hollywood Tenant in overcrowded unit w/no minor children • Currently living or working in the City of San Juan Capistrano • A household that resides in an uninhabitable dwelling unit (as determined by the City's Building Official pursuant to the provisions of the Uniform Building Code), transitional dwelling unit, or an overcrowded dwelling unit (as determined by Section IV (Household Size) of these regulations). E. Alcoholic and/or Drug Abuse - No person or persons who is/are abusing alcohol and/or using illegal drugs shall be eligible to participate in the program. To determine if a household is abusing alcohol and/or using illegal drugs, the Agency will conduct a background check and interview each household during the screening process. F. A tenant household can be rejected for a criminal history that includes any illegal activity in violation of Federal, State, or local laws, including but not limited to: of physical/sexual abuse, sale or distribution of controlled substances, and any acts of violence that could affect the health, safety or welfare of other residents. Page 3 out of 12 IV. APPLICATION PROCESS A. Initial application - Upon availability of a unit, staff will contact the households on the waiting list in accordance with the criteria set forth in Section II (D)(Household Priority) above. Staff will attempt to contact the party by mail and by phone. If staff is unable to contact the interested party after thirty (30) days, the name will be deleted from the waiting list When an interested party is contacted, they will have thirty (30) days from receipt of the tenant application package to complete all documents and submit all necessary information to the Agency. Failure to do so will result in determining the applicant ineligible for the program. Upon verification of all eligibility requirements, the tenant will be required to sign the standard lease document and move -in within forty-five (45) days. Failure to do so will result in determining the applicant ineligible for the program. B. Background Checks - A criminal record check will be required for each adult household member prior to execution of a residential lease or at any other time as deemed necessary at the Agency's discretion. An application for tenant household can be rejected for a criminal history that includes physicallsexual abuse, sale or distribution of controlled substances, and any acts of violence that could affect the health, safety or welfare of other residents. C. Annual Re -certification - Each year on October 1st, each existing tenant household will be required to complete the tenant application package and submit it to the Agency no later than the following November 1st. Agency staff will review the application and make a determination on eligibility for the coming calendar year. Tenant households meeting the eligibility requirements and interested. in continuing in the program will be required to execute their new lease no later than December 31St. Failure to submit re- certification information by November 1st or execute a new lease document by December 31st, will result in determining the tenant household ineligible for the program. If the Agency determines that a tenant household's income exceeds the lower-income eligibility requirements, the household will be deemed ineligible to continue in the program. Upon determination by the Agency during this recertification process that the household does not meet the income requirement, any subsequent decrease in household income in order to meet the income requirement will not change the Agency's decision to require the tenant to vacate the unit. The Agency may consider, at its discretion, any adjustments to the lease and/or rent payments during the year due to unforeseen circumstances. Page 4 out of 12 V. M Tenant households residing in the housing unit prior to adoption of these revised guidelines on August 16, 2005, shall be allowed to exceed the lower-income eligibility requirements provided their household income does not exceed the low-income eligibility requirements. The Agency shall provide 90 days notice to the tenant household in writing that the tenant household has been deemed ineligible and shall be required to move out of the unit. The Agency may, at its sole discretion, extend the tenant's move - out deadline by an additional 60Aays due to justifying circumstances. The Agency will review a tenant household's income once annually. if a tenant household's income decreases for whatever reason after the date of the Agency's determination of ineligibility, the original income certification will apply and the tenant household will be required to vacate the unit. HOUSEHOLD STATUS & SIZE All members of the household must be U.S. citizens or permanent resident aliens. Proof of citizenship or resident alien status will be required of all household members. The household size must comply with that approved in the residential lease. The premises shall only be used as a residence by the lessees. Occupancy shall be limited to those persons indicated in the residential lease, and no additional occupants may reside at the premises without prior written consent of the Agency. Any persons who desire to live in the unit, including new family members by marriage, must apply through the resident selection process. If a household size decreases to below the minimum number of people allowed, the occupant shall be required to transfer to the next available unit for which they qualify based upon their household size or move out of the unit. If no unit is available in the Little Hollywood Housing Development, the Agency may require the household to move to another affordable unit elsewhere in the City or to move out of the unit. If, during the year, the household size increases to above the maximum number of people, the tenant household will not be eligible to be certified in the following year. The occupancy limits are outlined as follows: Unit Size Minimum Maximum # Of Bedrooms Number Of Persons Number Of Persons 0 1 2 1 1 3 2 2 5 3 5 7 MONTHLY RENTAL AMOUNT The Monthly Rent payable by a Lower -Income Household shall not exceed -one- twelfth (1/12) of thirty percent (30%) of eighty percent (80%) of Orange County Page 5 out of 12 median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The Monthly Rent payable by a Very -Low Income Household shall not exceed one - twelfth (1112) of thirty percent (30%) of fifty percent (50%) of Orange County median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The Monthly Rent payable by a Extremely Very -Low Income Household shall not exceed one -twelfth (1112) of thirty percent (30%) of thirty percent (30%) of Orange County median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The maximum Monthly Rent chargeable for the Housing Units shall be annually determined by the Agency in accordance with the foregoing requirements. If, based upon an updated income certification, a tenant no longer qualifies as a Very- Low Income Household, the Agency shall rent the next available Housing Unit and any necessary Housing Units thereafter to a Very -Low Income Household in accordance with the terms of the affordability covenant agreement. In addition, except in the event of fraud or misrepresentation, no tenant shall be denied continued occupancy in a Housing Unit solely because such tenant no longer qualifies as a Very -Low Income Household because of an increase in household income subsequent to such tenant's initial date of occupancy, provided that the tenant qualifies as a Lower -Income Household as, provided for below. Notwithstanding the foregoing, if a tenant's income exceeds the qualifying limits for a Very -Low Income recertification but qualifies as a Lower-income Household, the Agency may increase the monthly rent payable by such tenant in accordance with the monthly rental amount for a Lower-income Household. Upon the vacation of the Housing Unit by such tenant, the Housing Unit shall be rented to an Extremely Very -Low, Very -Low, or Lower -Income Household, in accordance with the requirements of the DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS adopted by the San Juan Capistrano Community Redevelopment Agency on August 16, 2005. VII. CRITERIA FOR CONTINUED RESIDENCY The San Juan Capistrano Community Redevelopment Agency, at its sole discretion, may require the tenant household to vacate the affordable housing units for any of the following reasons: Page 6 out of 12 A. The tenant household is no longer income eligible (i.e. income exceeds 80% of area median income adjusted for household size). B. The tenant household fails to complete the recertification process. C. The tenant household has resided in the housing development for three years and has made no progress towards increasing their income and/or education. Participating eligible households that have complied with the guidelines and operating procedures and performance standards set forth in these guidelines may reside in the housing development for up to three years, with the possibility of renewal for two additional one-year leases. To qualify for renewal of up to two additional one year leases, the tenant household must provide written documentation to the Agency staff each year that they have made progress towards improving their financial situation and/or education. D. A tenant household has resided in the housing development for the maximum of five years. E. If it is determined by the Agency that any member of the tenant household is; i. Using the housing unit or any portion of the housing development for the illegal sale or use of drugs and other controlled substances as defined by Penal Code and the Health and Safety Codes of the State of California. ii. Arrested during the term of the lease for use, sale, distribution or delivery of illegal drugs. iii. Conducting any illegal activity in violation of Federal, State, or local laws including but not limited to: of physical/sexual abuse, sale or distribution of controlled substances, and any acts of violence that could affect the health, safety or welfare of other residents. F The tenant household fails to comply with the program guidelines and operating procedures. F. The tenant household fails to pay the monthly rent on time per the terms of the residential lease. VIII. CRITERIA FOR TRANSFER TO ANOTHER UNIT The San Juan Capistrano Community Redevelopment Agency, at its sole discretion, may require the tenant household to transfer into another affordable Page 7 out of 12 housing unit within the Little Hollywood Housing Development or transfer to an affordable unit located elsewhere in the City, for any of the following reasons: A. If the Agency determines that a tenant household is no longer able to provide day-to-day maintenance of the unit and/or to maintain the unit in a clean, safe, sanitary and attractive condition, including landscaping. B, If the tenant household size has decreased below the minimum number of persons, the occupant shall be required to transfer to the next available unit for which they qualify based upon their household size. If no unit is available in the Little Hollywood Housing Development, the Agency may require the household to move to another affordable unit elsewhere in the City or to move out of the unit. IX. TENANT RULES AND REGULATIONS A. SUBLETTING OF HOUSING UNIT - Subletting of any Housing Unit by the tenant household is prohibited and may result in eviction by the Agency of the tenant household. B. MAINTENANCE - Tenants are required to provide minor day-to-day maintenance of their units. This includes but' is not limited to minor landscape maintenance, trash pickup, etc. Personal household items such as furniture, appliances, etc. shall not be kept outside the dwelling and/or within vision of other tenants so as to become an eyesore. These items are to be kept in storage. Under no circumstances will tenant store or allow to be stored any items within the common areas of the neighborhood. C. MAINTENANCE OF COMMON AREAS - The Agency shall maintain all common area landscaping. D. STORAGE SHEDS & CARPORT STORAGE- Storage sheds & carport storage will be used for storage of yard and personal items. Tenants will not allow storage sheds to be used as living quarters. Tenants will observe proper storage requirements for combustibles. E. TRASH - Trash shall be disposed of in the containers provided by CR&R. Tenants shall follow the guidelines provided by the Agency for disposal of trash. Large items may be picked up by CR&R with prior approval. Residents shall be provided with three bins, black for general trash (non - recyclable), blue for recyclables and green for green (plant) waste. F. AGENCY INSPECTION - Each tenant household shall be required to allow access of their rental unit for monthly site inspections, or as deemed necessary by the Agency or its designated consultant, to verify household size, maintenance of the unit, and adherence to the program rules. Page 8 out of 12 G. PARKING - Each household will have available parking for two vehicles that must be in operating condition and have current registration and insurance. Guests will park in the designated guest parking spaces. No parking of any vehicle is allowed on the street or common areas. Guest parking spaces shall not be used for vehicle repair. Driveways and parking areas shall be kept free from debris and items that may be hazardous to vehicular and pedestrian traffic. Each tenant will be issued two parking permits for their permanent vehicles and one guest permit. Vehicles not displaying parking permits on Agency property will be subject to tow, at the vehicle owner's expense. In the event a tenant wishes to have a larger gathering and use more than one guest space, the tenant must request approval for the event seven days before the event and receive temporary guest parking permits from the Agency or their agent in writing seven days before the event. Event guest parking permits must be visible on the dashboard on the day of the event. H. NUISANCES - No noxious or offensive activity (including but not limited to the repair of motor vehicles) shall be carried on, in or at any housing unit or within the housing development common areas. A tenant household shall not do anything which may be or become an unreasonable annoyance or a nuisance to any other tenants in the housing development. Without limiting the generality of the foregoing provisions, no loud noises or noxious odors, no exterior speakers, horns, whistles, bells or other sound devices, noisy or smoky vehicles, large power equipment or large power tools, unlicensed off- road motor vehicles or items which may be unreasonably interfere with television or radio reception of any tenant household in the housing development, shall be located, used, or placed on any portion of the housing development or exposed to the view of other tenant households without the prior written approval of the Agency. The Agency shall have the right to determine if any noise, odor, interference or activity producing such noise, odor or interference constitutes a nuisance. I. COURTESY TO OTHER RESIDENTS - Residents shall respect the peace and privacy of others. Tenants shall not make nor permit any disturbing noises. Any disturbances should be reported to Agency staff. J. GUESTS -- Occupants must receive prior written approval from the Agency for guests staying over seven consecutive days within any 60 -day period. Occupancy by guests, including family members, staying over seven consecutive days or for seven days within any 60 -day period, without prior approval of the Agency, will subject the tenant household to eviction. Situations where tenants wish for guests to stay over the allowed seven days will be reviewed on a case by case basis, and will require Agency approval a minimum of 14 days prior to a guest arriving. Page 9 out of 12 K. PROGRAM PARTICIPATION - All tenant households shall be required to participate in appropriate classes, workshops, and other activities as assigned, at the discretion of the Agency. L. PERFORMANCE STANDARDS - All tenant households shall be evaluated monthly based upon the following performance standards: i. Household size and occupancy must comply with that listed in the lease agreement. ii. Tenant household must maintain the housing unit in a satisfactory and safe living environment. iii. Tenant household must maintain the exterior and the interior of the housing unit in a clean, sanitary, and attractive condition (including landscaping) iv. Tenant household must pay the rent on time per the terms in the lease agreement. V. Tenant household members must comply with the Little Hollywood Affordable Rental Housing Program Guidelines and Operating Procedures. Unless exempted, all tenant households must comply with the following additional performance standards: i. All adult members of the household shall be employed or be a full-time student, unless retired or physically unable to work. ii. Tenant households shall be required to participate in a tenant education program that will be provided by either the Agency or a designated agency or Consultant that includes the following: a. Work with a case manager in preparing a monthly family budget (to include all monthly income and expenses) with the goal of saving 10 — 30 percent of their net income each month in a verifiable savings account; b. Attend group sessions at a designated location in San Juan Capistrano; c. Attend individual counseling, if recommended (parent/marital, anger management, children and teens evaluations and tutorial assistance); Page 10 out of 12 d. Attend monthly meetings with an assigned case manager to assess and evaluate the household's goals; e. Complete required monthly paperwork (as assigned), f. Work with case manager to prepare a goals sheet.for each adult in the household (as assigned); g. Submit supporting documents for monthly budget report (i.e. proof of income, pay stubs, child support documents, notice of action forms, bills received/paid, merchandise and grocery receipts, etc.) h. Agree to allow a monthly in-home visit by assigned case manager or the Agency; Attend workshops and classes, as assigned. iii. Tenant households shall be required to perform 5-6 hours of community service volunteer work monthly. Volunteer work shall be coordinated by the Agency or the Agency's property management company. At the Agency's discretion, a tenant household's failure to meet the performance standards may be grounds for termination of the lease. M. PETS- Pets are not allowed on the premises. Exceptions can be made for small animals, under five pounds, and service animals; however, the Agency or its representative must receive a written request for an exception. A written approval or refusal will be returned to the tenant within fourteen (14) days of reception of the exception request. A pet agreement and fee may be required for the allowance of a pet. X. GRANDFATHER CLAUSE Tenant households with at least one member of the household 62 years of age or older as of August 15, 2005 shall be exempted from the three -to -five year term of residency requirement provided the tenants comply with all other provisions contained in these guidelines. XI. RIGHT TO AN INFORMAL HEARING PROCEDURE Program participants may appeal a proposed program action that may have an adverse effect upon them by submitting a written request for a hearing to the City of San Juan Capistrano Planning Department. The written request shall include the participating tenant household's objection, the name and relationship of all potential parties, a list of documents to' be presented, and the tenant household's current address and telephone number. Page 11 out of 12 The San Juan Capistrano Community Redevelopment Agency shall appoint a hearing officer. Once a hearing officer is appointed, an informal hearing will be scheduled as soon as possible. The informal hearing shall be conducted in English. Notice of Informal Hearing will be issued at least ten days prior to the hearing date. The participating tenant household may bring legal counsel and/or a translator at participant's expense. The participating tenant household may bring person(s) to testify and/or documents at the participant's expense. The participating tenant households may review pertinent file documentation as long as such documentation does not infringe on any other party's rights. Within ten business days following the informal hearing, the hearing officer's official decision will be mailed to the tenant household. The hearing officer's decision shall be final XII. EXCEPTIONS No exceptions to these guidelines will be authorized without Community Redevelopment Agency approval. XIII. ACKNOWLEDGMENT AND AGREEMENT By signing below I acknowledge understanding of all the above program guidelines and agree to participate within the Little Hollywood Rental Assistance Program according to the above guidelines. Household Name -Printed Date Signature Signature Page 12 out of 12