HomeMy WebLinkAboutR09-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: BARBARA J. LINDSETH
Acting Director
SUBJECT: REHABILITATION LOAN
POLICY AND PROCEDURES
DATE: December 14, 1994
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SynoDsis of Previous Commission/Council/Committee Action{ s ):
On November 23, 1994, the Housing Committee was given a copy of the Agency's draft Rehabilitation Policies and Procedures
Manual for review and discussion at the November 29, 1994 Housing Committee meeting.
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Recommended Motion{s):
(Community DeyeloDment Commission)
MOTION:
That the Community Development Commission approve and adopt the Economic Development Agency's
Rehabilitation Loan Policies and Procedures Manual.
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Administrator
At~q.C:YJ~'7f
BARBARA J. LINDSETH
Acting Director
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Contact Person(s):Barbara J. Lindseth/Oliver R. Moore
Phone:
5081
Project Area(s):
Citywide
Ward(s): 1 thru 7
Supporting Data Attached: StaffReoort. Policies and Procedure Manual. (On File)
FUNDING REQUIREMENTS: Amount:$ N/A
Source: N/ A
Budget Authority: N/A
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Commission/Council Notes:
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BJL:ORM:paw:rehabpol.cdc
COMMISSION MEETING AGENDA
Meeting Date: 12/19/94
Agenda Item No:
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ECONOMIC DEVELOPMENT AGENCY
DEVELOPMENT DEPARTMENT
OF THE ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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REHABILIT A nON LOAN
POLICIES AND PROCEDURES
The City of San Bernardino Redevelopment Agency administers the Neighborhood Spirit
Rehabilitation Program following an armual budget allocation of Federal Funds (CDBG and
HOME) and twenty percent low-moderate set-aside funds as approved by the Common Council and
the Community Development Commission. The Agency implements the Neighborhood Spirit
Rehabilitation Program in an effort to meet the following housing objectives:
. To provide decent, safe, sanitary and affordable housing:
. To preserve the quality of neighborhoods, as well as the value of public capital
investment in local schools, streets, utilities, and other public facilities; and
. To assist homeowners to carry out and maintain the improvements, preserving
pride of ownership, as well as the value of homeowner's equity, which for low
income families represents the majority of their life savings.
A direct rehabilitation loan is one of the most conservative and efficient ways to achieve these
objectives. Another unique characteristic of direct rehabilitation loans is the relative simplicity,
familiarity, and acceptability to the general public and to the political decision makers and
administrators.
Federal Funds (CDBG and HOME) used in this program are subject to all federal rules and
regulations guiding the use of the funds, and are subject to the yearly approved allocation to the
program by the Common Council through the Federal Grant Application and the Agency's budget.
Low-moderate Twenty Percent Set-Aside funds are those funds that the Agency must set-aside by
law from tax increment revenues received on each redevelopment project area. These funds must
be used in accordance with Redevelopment guidelines and law, health and safety code uses,
restrictions and adopted findings by the Commission of the benefits for low and moderate income
persons and households, and are subject to funding through the Agency's budget process. The
following key points have been incorporated into the policy and procedures manual to enhance
financial assistance to low and moderate income families:
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BJL:ORM:paw:rehabpol.cdc
COMMISSION MEETING AGENDA
Meeting Date: 12/19/94
Agenda Item No: ~
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STAFF REPORT
REHABILITATION LOAN POLICIES AND PROCEDURES
December 12, 1994
PAGE-2-
. In order to provide financial assistance, six (6) types of property improvement (singIe-
family) loans are available, depending on the applicant's needs and qualifications. The
maximum amount for a single-family property, with Agency Loan Committee approval,
is $40,000. Any loans over $40,000 must have Community Development Commission
approval.
. The maximum loan for a multi-family property is $20,000 per unit, exclusive offees, not
to exceed four (4) units with Agency Loan Committee approval. Any loan over $20,000
per unit, maximum off our (4) units, must have Community Development Commission
approval.
. All licensed and qualified "General Contractors" wishing to participate on the program
will be placed on a "Contractor's Bidders List" and be provided an opportunity to
compete on rehabilitation projects funded by the Neighborhood Spirit Rehabilitation
Program.
. The "Bidder's List" is established to allow qualified General Contractors to bid on a
"rotation" basis with no more than three (3) contractors competing on any given single-
family and multi-family projects.
. Homeowners sixty-two (62) years of age or older may receive a grant up to a maximum
of$4,500 to address a demonstrated critical health and safety improvement need.
. Strict underwriting criteria has been developed to ensure proper utilization of funds for
loans assisting single-family and multi-family projects.
These policies and procedures are compiled to serve as a reference for supervisor and advisory
personnel in the administration and operation of the Neighborhood Spirit Rehabilitation Loan
Program. Policies and operating procedures have been explained and defined in sufficient detail to
serve as a valuable aid to Agency staff and to the general public. Terms and abbreviations peculiar
to governmental rehabilitation programs have been defined.
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BJL:ORM:paw:rehahpol.cdc
COMMISSION MEETING AGENDA
Meeting Date: 12/19/94
Agenda Item No:
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STAFF REPORT
REHABILITATION LOAN POLICIES AND PROCEDURES
December 12, 1994
PAGE-3-
Therefore, this manual is presented as a guide to CDBG and HOME rehabilitation and twenty
percent low-moderate set-aside funded housing rehabilitation projects, and it is not intended to
relieve responsible personnel of the need to exercise good judgement as to its use.
Based upon the foregoing, staff recommends adoption of the form motion.
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BARBARA J. LINDSETH, Acting Director
Development Department
BJL:ORM:paw:rehabpoLcdc
COMMISSION MEETING AGENDA
Meeting Date: 12119/94
Agenda Item No:
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