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HomeMy WebLinkAboutR13-Economic Development Agency o - Jb IlL. - - DBRLOPIIBBr DBPARrllflr OF TIll CITt OF SAI' RI!1IIIAllnI~ BOOBS'! FOR COIMISSIOIl/COllllCIL ACTIOIl From: ICBmorm J. IIDDEiSOB Executive Director Subject: TROSIrIOIW. BOUSDG IIIPLJlIIEIft'AOB SDADGY Date: June 15, 1992 ----------------------------------------------- SvnoDSis of Previous CftMMission/Cftnncil/CftMMtttee ActionCsl: On October 16, 1991, an overview of the concept of Transitional Housing presented to the Housing Committee. Staff was directed to continue research on this issue and to present more information at the October 29, 1991 Housing Committee meeting. On October 29, 1991, the Housing Committee recommended approval to the Community Development Commission of the concept of a Transitional Housing Program. On November 4, 1991, the Community Development Commission approved the Transitional Housing Program Concept and authorized staff to prepare a detailed implementation strategy. On June 9, 1992, The Housing Committee recommended approval to the Community Development Commission of the Transitional Housing Implementation Strategy. 4C:> iecnMM~ded IIotionCsl: --------------------------------------------------- 4C:> CC--tty Devel"_~t COBIissionl MOrIOB: That the Community Development Commission approve the Transitional Housing Program Implementation Strategy as set forth in the attached staff report and exhibits. A~trator ..........!IlJ. ~ OB Executive Direc or --------------------- --------------------------------------- Contact Person(s): Ken Henderson Phone: 5081 Project Area(s): All Ward(s): 1-7 Supporting Data Attached: Staff ieDort: Exhibits FUNDING REQUIREMENTS: Amount: * NI A Source: RIA Budget Authority: RIA ------------------------------------------------------------------------------- Co--tssion/Council Botes: ------------------------------------------------------------------------------- SWP:BJT:tnt:0222L COIMISSIOB IlEBTIIIGAGBIIDA Meeting Date: 06/15/1992 Aaenda It_ ltIaber: I ;; o o o .d o o DEVELOPIIE.T DEPAIlTIIE.T OF TIll CIn OF SAIl RRV.nDIBO STAn' JtlPOJtT ------------------------------------------------------------------------------- T......f.ticmal Housina Proar_ Ccmeeot An overview of the concept of a Transitional Housing Program wss presented to the Housing Committee on October 16, 1991. It was recommended that the City become involved in the Countywide Homeless Transitional Housing Strategy by developing a City pilot program Which would (i) transition City of San Bernardino residents from emergency shelter into permanent housing, and; (ii) serve as a model to encourage other cities to provide transitional housing. Staff was directed to continue research on this issue and to present more information at the October 29, 1991 Housing Committee meeting. On October 29, 1991, staff returned to the Housing Committee with additional research and presented three options for Obtaining transitional hOUSing and three options for finanCing transitional housing. At that time, the Housing Committee accepted the Transitional Housing Program Concept and directed staff to prepare a detailed implementation strategy describing the manner in which transitional housing would be obtained. as well as the manner in which the housing would be financed. On May 11, 1992, staff received application approval notification from HUD. In addition, program partiCipation has been successfully negotiated with the BUilding Industry Association (BIA) for rehabilitation of the HUD housing component, Red1ands Federal Savings and Loan for loan finanCing, and "Hearts on Fire" for the responsibility of the Home Base lead agency. Attached is Exhibit I which presents an overview of the transitional housing program model including the two program components which will provide the housing. Exhibit II explains how the HUD hOUSing component will be financed. Exhibit III delineates areas of responsibility. Exhibit IV presents a flow chart of "Home Base" activity, and Exhibit V presents a flow chart of homeless client actiVity. On June 9, 1992, The Housing Committee recommended approval to the Community Development Commission of the Transitional Housing Implementation Strategy. ----------------------------------------------- SWP:BJT:tnt:0222L COMIISSIOII IIDTDG AGDDA lleetina Date: 06/15/1992 /3 AgeDda It_ w-ber: o () o Jl J .' DEVBLOl'MIIIr DBP~ UPOR1' TraDSitiODal 1IouaiD& Proar.. Concept 3lDle 15, 1992 Paae lhaber 2 o --------------------------------------- It is now sppropriate that the Community Development Commission approve the Transitionsl Housing Program Implementation Strategy as set forth in the attached exhibits. Implementation of this pilot program will (i) traDSition City of San Bernardino residents from emergency shelter into permanent housing, and; (ii) serve as a model which will encourage other cities to become involved in the COlDltywide Transitional Housing Strategy. Based upon the foregoing, staff recommends adoption of the form motion. 0., Bzecutive Director taent ---------- ---------------- ----------- SWP:BJT:tnt:0222L COIIIISSIa IIBITIIG 'CJrItn-\ MeetiD& Date: 06/15/1992 /3 Agenda It.. l'uaber: o o . o City of San Bernardino HOMELESS o TRANSITIONAL HOUSING PROGRAM . EXHIBIT "I" o 13 o o o o o CIry OF SA. BBR.ARDI.O DBVIlLOPIIBIIT DBP.la.umn~ DUSIrIOIW. BOUSIlIG PROGJWI OVJ5I[V.lD Ob1ective. The overall objective of the Transitional Housing Program is to provide the opportunity for homeless individuals and families to transition from emergency shelter into permanent housing. Transitional housing is not just housing, but is a voluntary, short-term, goal directed program. It provides supportive housing for three (3) months to three (3) years, during which time the family works on the identified social service needs which prevent them from obtaining and retainina permanent housing. For many, homelessness becomes a cyclical problem because the homeless do not have the necessary skills to remain in permanent housing. The skills needed include but are not limited to the following: money mansgement, household planning and organization, substance abuse management, meal planning and preparation, housekeeping skills, parenting and child development, assistance in developing a relocation plan, and finding adequste furniture. The program has both a housing component and a case management component. The housing component utilizes two sources of housing coupled with participation from the City, Apartment Owners, Realtors, Building Industry Association and the homeless individual or family,. The case management component utilizes the participation of homeless shelter coordinators, non-profit organization personnel, the County, and civic and church group mentors. (See Attachment "A.") HOUSIlIG f'.IIMPO_ Two types of housing are provided in this program: 1) single family dwellings provided by the City of San Bernardino through the HUB Lease/Option prograll and 2) rental housing initially provided at a discount by the Apartment Owners Association. BUD Housina. (6-8 units) Under the HUB one dollar ($1.00) per year lease and discount sales prograll, the City of San Bernardino will lease eligible foreclosed properties for one dollar ($1.00) annually for up to five (5) years (Federal Register 24 CFR Parts 291, 577 and 578). During this periOd, participants who have successfully completed the program will be given the opportunity to purchase the home that they are occupying. If, at the end of the five year periOd, no participant is prepared to purchase the unit, the City will purchase the property or same reverts back to HUB. If the City chooses to purchase the property, it will again house a homeless family, or sell the unit to a qualified low-income family. The HUB hOUsing component of the program will fall under the following guidelines: 1. PartiCipants must be "very low" income residents of the City of San Bernardino and must be homeless at the time they enter the program. /3 o o o o o DBVELOPIIBII'r DBPAJrI'Iuit-.r DA1ISIrIOJW. BOUSIBG PROGRAII Page ltlaber -2- 2. Participants must enter into a rental agreement with the City agreeing to honor all conditions and covenants contained therein. 3. Participants are required to pay thirty percent (30X) of their income for rent, up to Section 8 fair market rent prices. These funds will be held in a separate account to be used for maintenance and upkeep of the property. It is the mentor's responsibility to verity changes in income and see that the participant pays the rent. 4. Participants must pay all utilities in a timely manner. 5. Participants must follow program guidelines or face eviction. 6. The City agrees to provide the home at a discount as long as the participant is following program guidelines, not to exceed three years. A>>artment HousinR. (2-4 units) Apartment owners will provide discounted housing to a program participant for up to one year. The final objective is to have a good tenant who is paying current rental rates. The apartment component of the program will fall under the following guidelines: 1. Participants must enter into a rental agreement with the apartment owner agreeing to honor all conditions and covenants contained therein. 2. Participants are required to pay the apartment owner thirty percent (30X) of their income, up to current rental prices. It is the mentor's responsibility to verity income and see that the participant pays the rent. 3. Participants must pay all utilities in a timely manner. 4. Participants must follow program guidelines and be progressing toward self-sufficiency or face eviction. 5. Apartment owners must agree to provide the apartment at a discount as long as the participant is following program guidelines and progressing toward self-sufficiency, not to exceed one year. 6. Apartment owners may obtain a tax write-off by claiming a donation to the non-profit organization designated as "Home Base." The amount will be the difference between what the participant is paying for rent (30X of participants income) and the units current rental value. Geollra>>hic Area and Number of Units. All units must be located within city limits and must be equally distributed thrOUghout all councilmanic wards. CAll. JfA.A~ COIIPOftI5IIr Identification and referral. The homeless applicants for this program will be identified at the emergency shelter level. The four shelters in the City of San Bernardino will be notified that the program is looking for homeless people who are willing and able to work hard at restructuring their lives. JQ o o () o o DBVELOPIIIlft' DlPAl.u'IIloau: rRABSITIOIJAL HOUSIIG PROGIWI Page lIuIIber -3- Home Base. Once identified, these people will be referred by the shelter to a screenina agency (Hearts on Fire). The objective of the agency is to screen the applicants and provide an information base for the homeless mentors. Selection Process. The homeless family or individual is selected based on the followina criteria: 1. The family or individual must be referred from an emergency shelter or by a participatina service provider. 2. The family or individual must agree, in writina, to cooperate with the caSe plan. 3. The family or individual must agree to contribute to a savinas program. 4. The family or individual, prior to becomina homeless, must haVe been a San Bernardino resident a minimum of 6 months; The homeless program applicants will be interviewed to determine if they will benefit from the Homeless Transitional Housina Program. The process will proceed as follows (see Attachment "A"): 1. The family or individual is referred to Home BaSe by local shelters and/or social service programs that work with the homeless. Referrals may also come from local churches. (See Attachment "B.") 2. An interview is conducted by the Home Base interviewer to determine the suitability of the applicant for the program. (See Attachments "C" and "D.") 3. An orientation is provided for selected families. Topics include expectations, responsibilities, and finances. 4. The family expresses a desire to participate in the Program and commits to the requirements of the program. 5. The Mentorina Team is provided a written "profile" of the family and has an opportunity to question the Home Base interviewer in a private meetina. 6. The Mentorina Team and the homeless family meet to discuss workina together. Plans are made that include specific goals, timelines, and specific responsibilities. (See Attachment "E".) Volunteer Communi tv Mentors. Mentor Teams will be provided by civic, church, and business groups on a volunteer basis. Mentor Trainina. These community volunteers will attend a trainina session provided by the County Department of Community Services or Department of Public Social Services. At this session, Mentor Teams will learn the expectations of the program and how to deal with various problems associated wi th beina a homeless mentor. Mentors will learn to turn to Home Base when they need information. I~ o o CITY OF SAN BERNARDINO HOMELESS TRANSITIONAL HOUSINQ PROQRAM Mta.... eAe 0 EMERGENCY SHELTERS (nln WlJo_ta) '. / NON-PROFIT -HOME BASr (lOfteu.:WUoeq) C.1Wi... bto..Uca . foe___ COMMUNIT MENTORS o (ohio tn.) (cJaanla 11',_ d CIIIa_ ~~ ., Co_t~ AgeIlClJ) PROGRAM PARTICIPANTS ..at .t1dtJ' :\ . 30' !aD I ,. ftft / P&J' .Uitt.. f011011 ~_ tuJ"u.. ~ APARTMENT OWNERS fJ>rOYJIIe dJIC01IIIt MUllin,) ~ ~ REALTORS BIA (lIIna,.MIlt) (nhaWUtatJClD) o I'), o o o o o Attacbment "B" TrllDlliticmal Bouaiua Progr.. urauAL FORB Shelter, Aaency, or Church referriD& the homeless individual or family:: Name: Address: Phone: Contact: Program Applicant: Name: Family Composition: Number in Family: Adults (name): Children/Ages The above mentioned homeless individual or family has demonstrated that they would like an opportunity to restructure their lives and are ready to apply for the City of San Bernardino Transitional HousiD& Program. Signed by referral person /3 o o o o Attachment "C" TranaitiODal Bous1q Prosr_ IID1'AL BOUSIBG BACGROUIm rollll Date: Interviewer: I sive my permission for the above interview to verify the followine information and to share it with the Community Mentors who will be aasiatine me. Signature J~ o o o o o C. BOUSIIIG BACD:ROUIm 1. Where are you from? 2. Are you planning to stay in the srea? 3. What shelters have you lived in during the last 12 months? Name of Shelters Contact Person Phone Number Il.Mn 4. Address and phone number of nearest relative or friend: 5. Are there individuals with you other than spouse and children (e.g., boyfriend, distant relative, friend)? If so, specify. 6. Apartment addresses you have had over the past 12 months: a. Landlord #l's name Phone Number Address How long did you reside there? Why did you move? 12 o o o .' o o a. Landlord #2's name Phone Number Address How long did you reside there? Why did you move? D. T!PB OF I1ICOIIB 1. Current employment (employer/wageslhours) 2. Public assistance (amount/case worker's name and phone number). 3. Other (savings, etc.) IIUDGBT AlW.YSIS Income Exnll!nt1itures F. PAST IMPLODIDr (List _at recent eaployer first) EmDlover Reason for Termination Phone Number DIU Post tion !fAu /2 o C> o .' G. BIlOCAr2., BXl'BRIDCB, SD:LLS o TRAIIUBG, B. oma IlU'OIIIIATIOB 1. Is auy other agency or church assisting? Aaencv/Church ~ Assistance Contact Person 2. Have you ever been in an alcohol/drull treatment program? a. Yes or no b. When? c. If so, what program? d. Name and address of caseworker e. Do you or auy member of your family have difficulties with alcohol or drugs now? If yes, explain. 4. Do you or auy members of your family have medical problems? a. Physical b. Psychological /:2, o o o o o s. Have you or your spouse ever been convicted of a ~? a. Yes or no b. If so, what crime? c. When? d. Name and address of caseworker 6. Do you have any~? If so, specify. 7. Do you have an automobile? If so, how reliable is it? I. COOIlDIKUOR' S ASSBSSIIDr High chance of success Low chance of success Mediam chance of success J. OP.rIOKAL COfwmnd 13 o o o .' o o Attachment "D" Tr&DBitiODal Bousiq Progr.. PROGIWI GlJIDBLIIIIS AIm CCRlIbmnr FORI! Name(s) Date By participating in the Transitional Housing Program, I/we: 1. will pay 30~ of my total income for rent, up to fair market rents for my house. 2. will pay all utilities in a timely manner. 3. scree to maintain the house/apartment in excellent condition. 4. understand that I will be evicted for not following program guidelines. 5. understand that the City of San Bernardino's cOllllllitment to a discounted rental rate is limited to three years as long as I am fOllowing the program. The City's cOllllllitment to a discounted rental rate terminates as soon as I fail to follow program guidelines. 6.. will follow these program gUidelines, adhere to our Planning Agreement, and progress toward self-sufficiency. 7. agree not to allow additional tenants to reside in the house. Further, all of the information given in the "Family Background" form is accurate, particularly the sections on income, alcohol, drugs, and health. Signatures(s) J~ o Date Participant's Name: Participant's Signature: Mentoring Group: Team Leader's Signature .' ... o o ATTACIIMENT "I" Transitional BousiD& Proar.. PLAlUIIIIG AGkuauaIr (Make copies for Participant, Mentors, and Home Base Coordinator) A. LIST NBBDS Participant list need in order of priority. Obtain adeauate and affordable lona-term housius 1. 2. 0 3. 4. S. 6. o B. PLAN OF ACTION: OBJECTIVES Objective #1 Obtain adequate and affordable lema-tera housiD&. 1. What the DarticiDant will do: ~: Pl~nned Actual Start Complete 2. What the mentors will do: Start Complete j7y o o o .' o Objective #2 oarticioant will What the __ I. _ do: 2. s will do: What the mentor Objective #3 1. ill do: h oarticioant w What t e ___ 2. ill do: entors w _ What the m_ Objective #4 1. ill do' i ioant w __' What the oart_c 2. ill do: the mentors w What __ IlAUI. : Start Complete Start Complete ~: Start Complete Start Complete 12AUI: Start Complete Start Complete o d Actual pIAnne . plAnned Actual d Actual Planne I~ .. o o ~ Start Complete Objective #5 1. What the DarticiDant will do: l2A.tu : PlAnned Actual 2. What the mentors will do: Start Complete Objective #6 1. What the DarticiDant will do: l!Aaa : Planned Actual Start Complete 2. What the mentors will do: () Start Complete COtowumrs () BJT:0222L J:? o o o o o CIn 01' SAIl RlIIl..UPIlIl'O ImDBL DOSITIOlUL BOUSIBG PROGIWI Ffftaneina Tp.ftaitinn.' Rousfft. Upon enterina the program, the family and the Buildina Industry Association (BIA) will conduct the rehabilitation of the home at no cost to the city or family. In exchange, the family receives below market rent until the family income allows the family market rent. Durina this period, the family must accumulate $2000 in savinas toward a down payment on the home and have accomplished all goals of the program. At the point where the family is capable of realistically paying fair market rent, the family will begin the purchase process. The Development Department would act as a Property Mortgage Insurance (PHI) issuer by enterina into an agreement with a financial institution whereby the Department would ensure or guarantee a percentage of the loan. The intent of this guarantee would be to reduce the front end requirement of the low income buyer through underwritina concessions such as: reduced interest rates, income ratios, time on the Job, cash down payment, r.eserve reqUirement, and Closing costs. The City'S loan guarantee Obligation would terminste upon the accomplishment of one of two occurrences: (1) owners equity in the house equals the amount of the city guarantee; or (2) a period of 24 months elapses after close of escrow. Because the Department of Rousina and Urban Development (BUD) requires that the property be purchased by a public entity, the City will serve as a pass through vehicle for the purchase transaction. A double escrow will be utilized and the first escrow will be established between BUD and the City. A second escrow will be established between the family and the City. The agreement with the financial institution would spell out affordability covenants to be recorded against the property for up to ten (10) years should the house be required to be resold in the case of foreclosure or resale. A silent second will be established based on rehabilitation credit with buyer equity buildup to be fully amortized in ten years. A silent third will be established based on the lOX price reduction given to the Agency by virtue of its beina a public entity. This amount will be present throughout the loan with the return goina to the Economic Development Agency Transitional Rousing Program. The referenced return will be used within a revolving account designed to assist other program partiCipants. Some of this line item may be utilized to cover a percentage of the Department's administrative overhead and program liability exposure for the initial loan guarantee. Financing in this manner would not necessitate the expenditure of Department funds unless the house went into foreclosure. This type of financing would allow the Department to leverage money without having to spend substantial funds in advance, if any. The end result for the buyer would be a reduction of the monthly mortgage payment and the improvement of the buyer's ability to qualify. The advantage is that the Department would be financina hOUsing which has been discounted aa much as twenty-five percent (25X) before sale due to the Agency purchase EXHIBIT II /1, o o o o o CIn 01' SU RRII1I.lIInIBO I'lnanciDa Trauaiticmal HousiDa Paae w-ber -2- discount and gratis rehabilitation work. The BUD Lease/Option program provides a ten-percent (lOX) discount on current deflated market values and a fifteen-percent (15X) discount could be realized through rehabilitation efforts of the tenant and BIA volunteers. It should be noted that the purchase price is established on the value of the house prior to rehabilitation. Evaluation of the structure at this point in time will assure both a lower purchase price and the certainty of equity build-up. It is recommended that this mechanism be utilized because this type of finanCing would allow the Department to leverage money without haVing to spend it up front. In addition, it should be noted that the Department would be financing housing which has been discounted as much as twenty-five percent (25X) before sale. /2 o o o IlIITUL PROVISIOlI OF BOUSIIG DlJRIIG LEASIIG PBRIOD RBIWIILI1'A1'IO. . IWftDAlICB PDRClIASB FIDlICIIG I'OLLOWIIG LBASB PBRIOD PRIVAD SBCTOR PUBLIC SBCTOR o o CITY OF SAJf RRR1I&IIDIIIO II)DBL 'rRAIISIrIODL BOUSIIG PROGIWI SJ1lOPsis of Are88 of ReaponaibilitJ' BOUSIIIG COMPOlUIIrS Housh... an" Urban Develn_....t (ROD) _ Development Department serves as applicant for BUD single family houses at one-dollar ($1.00) per year with option to purchase after five (5) years. ADartment Owners Association - Provides apartments for singles and seniors. Participants pay 30% of income as rent. Difference between rent paid and rent required used as a tax deductible contribution. Buildina Industrv Association - Contributes volunteer labor and materials for rehabilitation of lease/option houses. Some materials may be obtained locally from building supply firms. Realtors - Those who specialize in management and maintenance will provide services during model program. ~ - Banking institutions will participate in the loan program on competitive basis. Bank qualifies for Community Reinvestment Act credits. Develo-oent DeDarblent - Provides a loan commi tment program similar to Private Mortgage Insurance. l'RIlqAII COMPO_lI Chur~hes an" Communi tv Gronoa - Provide volunteers who become "Ombudsmen" or "Big Brothers/Sisters" for Mentoring Program. Provide food, Clothing, furniture, counseling Private -on-Profit - "Hearts on Fire" screens applicants, recruits mentors, and provides centralized access point for all participants. PrOfessional - Various prOfessional groups (medical, dental, pSYChOlogical) provide pro-bono assistance Communttv Servicea DeDar~....t (Countv) _ Provides training of volunteer "mentors." DPSS. Public Health. Mental Health (Countv) _ Participates in volunteer training and provides variety of services, as needed. BXIIIBIT "III" /~ .' o o . o City of San Bernardino Transitional Housing Program "Homebase- Implementation Plan S.I.ct1on of .Ro..b.... non-profit .g.ncy which will .d.1n1.ter progr.. .Ro..b.... r,c.1ve. .cre.n1ng tr.1n1ng .t a.dl.nd. r..11y S.rv1ce. .Ro..b.... .cqu1r.. .nd d.v.lop. ..ter1.1. for ..ntor tr.1n1ng .Ro..b.... begin. r.cru1t..nt of co..un1ty .entor. M.ntor training ....1on .t Co..un1ty S.rvic.. .Ro..b.... .eet. with .helter. to d1.cu.. ref.rr.l proc... .Ro..b..e. b.g1n. .cc.pt1ng r.ferr.l. EXHIBIT IV ,"7 o - - o . o City of San Bernardino Tran81tlonal Hou81ng Program Client Flow Chart I,..., r.f.rr.l .f .11.., ,. .......... (.tftrral f.nJ I .......... ......,. ..r...1., (f..11, ...t,r.... '.n/....1., ..... f.nJ J If ,.. .11.., 1. ....".. 1. ,.. ,r.,r.. l .......... '.'.r.I... ..1.. ,r.,r.. .11.., ....1. '.'.r / " A1AlfHBn InIAL ......... ...,. .1'. C.....1" "".r. I .......,... c.....ftf ...t.r. I flf.., ..., ,. "'l'r .... ...,.....,.. lC... I.... ..., ,.. C"'r.., f.nJ I Clf.., f. I,'.rr.. i. .,.r.,.. ""llr. ..... 1... .r.. ,... ,ar..,. .. ." f...I.. ,r..... l Cl1... f. r.l...... f... ....f.'. .... ....,..... .1.. '....r. ..,1.. ~ 80HBOIIIIIBIl ......... ...,. .111 C.....I., .....r. I .......,... C.....I.f '....r. I fll... .... .. .,.1., .... ...,.....,.. lC... ....,..... ,.. C'.'r... r.nJ I Cll... ""f .f.. ...1..r I ff'r r.,r....... ,. tt ..,..f... .... 'I~"", jI Cl1... 1. r.l...... 1.,. ....1.'. ...._~......... .111 '....r. ..,1.. EXHIBIT V 1:2. o o o *0 ~. .NAr I 8!!9l m o ..... m RedJandsFedernJ ,.~, ". (ClItIOAtl,. 01 'T;;..: -:;~. ~rJ tI~~. . May 14, 1992 ADMIN1S17IA7WE 0fT1CQ J(J() E. Stat, Strut P. O. Bolt JZ6D Rtdkwb. 0r/JfDmiG 9ZJ7J T,~ (714) 79J.2391 Ms. Becky J. Thurston Homeless ServIces Analyst City 01 San Bernardino Economic Development Agency Development Departnient 201 North E Street. ThIrd Floor San BemardJno. CA 92401-1507 Re: Transltiohal Housing Program Oear-Becky: ,.. . "0 , Earlier this week, at the meeting 01 the executive Committee 01 the Homeless CoaRtion perlCy Council, I was pleased to have met you and hear from you the outline 01 the City's plan to provide housing for homeless famlfies using HUD properties. You described to me the need for a mortgage lender who would make loans to these famlfies relying upon the City's guarantee 01 a portion 01 that loan. We are most anxious to Participate In this program and hpIp )'(lU .~ It 8 SLlCC8BB. I have asked Ron RuhI, our Assistant Vice President and Product Manager, to coordinate 0lI" efforts and have forwarded to him the Information yoU Sent me. Please use this letter 88 an expression 01 our great Interest In maklng this profect SUCCessfut. rely, ~ . G. WIENS C an and Presldent . ChIef Executive OffICer EXHIBIT -VI- . _.~1::-t~:;~:" : ';. ~ ~'. ,2