HomeMy WebLinkAbout07 D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: LOW/MOD HOUSING FUND
Executive Director (FY 1992-93)
Date: October 28, 1992
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Synopsis of Previous Commission/Council/Committee Action(s);
On October 21, 1992, the Housing Committee approved a recommendation
that the Community Development Commission approve the Program
Proposals for utilization of available FY 1992/93 Low/Mod (Set-Aside)
Housing Funds. 5
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Recommended Motion(s):
(Community Development Commission)
MOTION That the Community Development Commission approve the
Program Proposals for utilization of available FY 1992/93
Low/Mod (Set-Aside) Housing Funds.
Admi—nistrator KERMNEETft J. HEND SON
Executive Direct r
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Contact Person(s): Ken Henderson/David Edgar Phone: 5081
Project Area(s): City-Wide Ward(s): 1 - 7
Supporting Data Attached: Staff Report: Program Description
FUNDING REQUIREMENTS: Amount: $ 350,907 Source: 20% Set-Aside
Budget Authority: Reouested
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Commission/Council Notes:
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KJH:DRE:paw:0145c COMMISSION MEETING AGENDA
Meeting Date: 11/02/1992
1 Agenda Item Number:
D I E L 0 P M E N T D E P A R 1 . E N T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
LOW/MOD HOUSING FUND (FY 1992-93)
The purpose of this report is to provide the Community Development
Commission with information on the FY 1992-93 Low/Mod Housing Fund
(Set-Aside) Budget for Housing Development projects.
As the attached budget breakdown indicates, the FY 1992-93 Low/Mod
Housing Fund is substantially committed. This is primarily due to
Housing Development project obligations which were approved by both the
Housing Committee and Community Development Commission.
Staff is recommending that the following Housing programs be
implemented on a "Funds Available" basis (Please see attachment for
Program Descriptions):
* Infill Housing Development Program $100,000 5
* Habitat for Humanity Project $ 25,000
* First Time Homebuyers Assistance Program $150,000
* Property Improvement Program $300,000
The proposed programs will be capped at these "not to exceed" dollar
amounts, and will be implemented only as additional set-aside funds
become available.
Please be aware that there are also current financial obligations, from
prior projects, which have not been repaid to the to the Economic
Development Agency's Development Department. In addition, there are
Housing projects currently budgeted for assistance which may not
(-EAST-)ly be developed. In both cases, this revenue would provide the
department with the monies necessary to implement the proposed Housing
programs.
Staff will continue to provide the Housing Committee and the Community
Development Commission with updated Low/Mod Fund Budget information, as
it becomes available.
On October 21, 1992, the Housing Committee reviewed this item and
approved a recommendation that the Community Development Commission
approve the Program Proposals for utilization of available FY 1992-93
Low/Mod (Set-Aside) Housing Funds.
Staff recommends adoption of the form motion.
KENNE J. HEIfDERSON, Executive Director
Development Department
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KJH:DRE:paw:0145c COMMISSION MEETING AGENDA
Meeting Date: 11/0211992
Agenda Item Number: �_
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PROGRAM DESCRIPTION
I. Infill Housing Development Program:
This program is designed to create high quality housing on unimproved
(vacant) infill sites, located within established neighborhoods throughout
the City of San Bernardino.
In this effort the Agency will be working with local developers and
lending institutions interested in Joint venturing to create affordable
housing opportunities targeted for first-time homebuyers. The program
will be developed in such a way as to ensure that these homes serve to
improve the surrounding residential community, while also offering
affordable homeownership opportunities.
FY 1992 - 1993 Budget requested: 1100,000 (maximum)
This allocation, in conjunction with a loan guarantees from the Agency,
will allow the Agency to effectuate construction of approximately fifteen
(15) infill homes. Agency funds would be utilized to directly offset
building permits and loan fee costs, in order for the homes to remain
truly "affordable". In addition, the Agency loan guarantee ensures that
acquisition and construction financing is immediately available to the
selected developer. Once constructed, the local lender would then provide
takeout financing to eligible first-time homebuyers, thereby making
acquisition and construction monies available for another infill site.
2. Habitat for Humanity:
- Habitat for Humanity is requesting assistance from the Development
Department in acquiring a vacant lot, on which they could then construct a
single-family detached home. The department would only be responsible for
site acquisition, at a cost not to exceed $25,000.
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Once constructed, the home would be made available as a residence for a
low income family. Habitat for Humanity is a non-profit organization,
which utilizes volunteer labor and donations to construct single-family
detached homes for families who would not ordinarily be able to experience
homeownership.
Staff will be working with Habitat to ensure that, once a site has been
identified, the home which is constructed is a high quality product, and
is an asset to the surrounding residential community.
3. First-Time Homebuyer's Assistance Program
This pilot program is designed to assist first-time homebuyers with the
purchase of a home within the City of San Bernardino. Eligible properties
will include condominiums, townhomes and single-family detached homes.
PROGRAM DESCRIPTION `
(Attachment)
Page - 2 -
FY 1992 - 1993 Budget requested: $150,000
This funding level will allow the Agency to assist approximately ten (10)
households with downpayment monies ($10,000/family) necessary for them to
purchase a home. In addition, the remaining funds will be utilized to
develop a Mortgage Assistance Program which either reduces the homebuyers
interest rate, or provides additional tax incentives for first-time
homebuyers. In both scenarios the goal is to increase the first-time
homebuyers financial wherewithal, thereby facilitating their ability to
purchase a home.
As part of this effort, the department will also be developing a marketing
program designed to promote homeownership opportunities throughout the
City of San Bernardino. Once developed, this program will be made
available to the Board of Realtors, local lenders, developers and
prospective homebuyers.
The goal of this effort will be to promote throughout Southern California
homeownership opportunities within the City of San Bernardino.
4. Property Improvement Program:
The Property Improvement Program is designed to provide financial
assistance to homeowners in need of improving/rehabilitating their
property. This program includes a concentrated effort within selected
"Focus Neighborhoods", as well as a "Citywide" effort (Please see attached
Program Description).
FY 1992 - 1993 BudgetL $850,000
Set Aside funds $300,000
` CDBG $600,000
The low/mod housing fund monies are necessary as part of a comprehensive
improvement effort within designated focus neighborhoods, to provide
assistance to households between eighty percent (80%) and one-hundred,
twenty percent (120%) of median income. Furthermore, these funds are
specifically targeted for utilization through the Exterior Paint Program.
Providing these monies, will allow the Department to offer assistance at the
following levels:
* Exterior Paint Program 100 households $150,000
* Zero Percent (0%) Interest Loans 15 Households $127,500
* Three percent (3%) Interest Loans 15 Households $225,000
* Five Percent (5%) Interest Loans 10 Households $400,000
It is important to note that over eighty percent (80%) of the Property
Improvement Program funds will be returned, for use to assist other households.
DRE:tnt:373V
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HOUSING DIVISION
CITY OF SAN BERNARDINO
PROPERTY IMPROVEMENT PROGRAMS
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OCTOBER, 1992
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PROPERTY IMPROVEMENT PROGRAMS
1. EXTERIOR PAINT PROGRAM.
2. EXTERIOR IMPROVEMENT LOAN PROGRAM.
3. EXTERIOR IMPROVEMENT LOAN-PLUS 'PROGRAM.
4. HOME IMPROVEMENT LOAN PROGRAM.
5. DEFERRED PAYMENT HOME IMPROVEMENT PROGRAM.
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6. REBATE (GRANT) PROGRAM.
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PROPi.--Y IMPROVEMENT PROGRAM AVAILABILITY MATRIX
Proaram Focus Neighborhood City-Wide
EXTERIOR PAINT PROGRAM X X
EXTERIOR IMPROVEMENT LOAN X X (Excluding Rentals)
EXTERIOR IMPROVEMENT
LOAN PLUS X X (Excluding Rentals
HOME IMPROVEMENT LOAN X (Excluding Rentals) X (Excluding Rentals)
DEFERRED PAYMENT LOAN X X (Excluding Rentals)
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REBATE/GRANT X (Excluding Rentals)
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PROGRAM ELIGIBILITY
Focus Neighborhood Residents:
Any household located within a designated focus neighborhood area has
automatically met the initial eligibility requirements necessary for
participation in the various Property Improvement Programs.
Selected City-Wide Residents:
Households not located within a designated focus neighborhood are eligible for
Property Improvement Program assistance on a case by case basis. The
established eligibility criteria will be as follows:
1. There are "critical" code related improvement needs currently in existence
on the subject property (i.e. leaking roof, absence of electricity, water,
etc.)
2. The property is adversely impacting the surrounding residential
neighborhood (i.e. worst house on the block).
3. There are no other financial resources available with which to address the
necessary improvement needs.
If the established criteria are not adequately satisfied, a city-wide request
for property improvement assistance will not be eligible for consideration.
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EXTERIOR PAINT PROGRAM
Purpose
The Exterior Paint Program is design to improve the exterior appearance of
houses located in selected Focus Neighborhoods within the City of San
Bernardino by providing significant financial incentives for property
owners to paint the exterior of their homes.
Financial Incentives
a. Owner-Occupant: the Agency would paint these properties, at no
cost to the eligible homeowner (100% Grant).
b. Owner-Investor: The Agency would contribute 50% of the total cost
of exterior paint (owner-investor contribute 50%).
Eligibility
Any property owner who lives in or rents property located within one of
the City's selected Focus Neighborhoods whose property is determined to be
in need of paint and who meets the program income requirements is eligible.
Income Requirements
Income eligibility for the Exterior Paint Program is based on both family
size and total annual household income, (Not to exceed 120% of Median).
Income eligibility for rental property, however, will be based on the
total annual household income of the tenants, not the property owner.
All work will be performed by either a licensed paint contractor selected
by the Economic Development Agency's Development Department, or by
community based individuals or organizations working in conjunction with a
license contractor, subject to program review and approval.
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ERTERIOR IMPROVEMENT LOAN PROGRAM
Purpose
The Exterior Improvement loan program is specifically designed to improve
the exterior appearance of homes by providing qualified property owners
with interest free loans.
Eligibility
Any property owner who occupies or has rental property located within a
selected Focus Neighborhood that is in need of exterior improvements and
who meets the program income requirements is eligible.
This program is also available on a city-wide basis to owner-occupied
properties (rental property excluded).
Income Requirements
Income eligibility for the exterior improvement program is based oh both
family size and total annual household income household. Income cannot
exceed one hundred twenty percent (120%) of Median within a focus
neighborhood, or eighty percent (80%) of Median on a city-wide basis.
Within selected focus neighborhoods, income eligibility for rental
property will be based on the tenant's annual household income.
Terms
This is a Zero percent (0%) interest loan, up to a maximum of $8,500 (fees
may be added to maximum loan amount), amortized for a period of up to five
(5) years (60 months).
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Eligible Improvements
Any exterior property improvement is eligible including, but not limited
to roofing, driveways, fencing, landscaping, and painting.
Work
All work must be completed by a licensed sub-contractor to be chosen by
the homeowner, subject to Development Department review and approval.
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S=RIOR IMPROVEMENT LOAN-PLUS PROGBAIt
Purpose
The Exterior Improvement Loan-Plus program is designed to provide both
exterior improvements and minor interior improvements to homes by
providing qualified property owners with three percent (3%) Interest loans.
Eligibilitv
Any property owner who occupies or has rental property located within a
selected focus neighborhood that is in need of exterior and minor interior
improvements and who meets the program income requirements is eligible.
This program is also available on a city-wide basis to owner-occupied
properties (rental properties excluded).
Income Reautrements
Income eligibility for the exterior improvement loan-plus program`is based
on both family size and total annual household income.
Income cannot exceed one hundred twenty percent (120%) of Median Income
within a focus neighborhood, or eighty percent (80%) of Median on a
city-wide basis.
Income requirements for rentals will be based on the total annual
household income of the tenant, not the property owner.
Terms
This is a three percent (3%) interest loan, up to a maximum of $15,000
(fees may be added to maximum loan amount), amortized for a ten (10) year
(120 month) period.
Eligible Improvements
All exterior, and limited interior property improvements are eligible,
including but not limited to roofing, driveways, fencing, landscaping,
painting, windows, plumbing and carpeting.
Note: exterior improvements must encompass at least seventy percent (70%)
of the loan total to qualify for this program.
Work
All work must be completed by a licensed contractor to be chosen by the
homeowner (limit of six (6) sub-contractors), subject to Development
Department review and approval.
HOME IMPROVEMENT LOAD PROGRAM `
Purpose
The Home Improvement Loan Program is designed to provide significant property
improvements to eligible properties located throughout the City of San
Bernardino.
Eligibility
Any property owner who occupies a residence located within a selected Focus
neighborhood or elsewhere within the city,limits that is in need of home
improvements and who meets program income requirements is eligible.
(Owner—Investor properties are not eligible)
Income Requirements
Income eligibility for the home improvement loan program is based on both
family size and total annual household income.
Income cannot exceed one hundred twenty (120X) of median within a Focus
Neighborhood or eighty percent (80X) of median on a citywide basis.
Terms
This is a five percent (5X) Interest Loan, up to a maximum of $40,000,
Amortized for up to a twenty year (240 month) period.
Eligible Improvements
Any and all interior and exterior home improvements are eligible, excluding
"luxurx" items (ie. , pools, spas, etc.), or any items which could be easily
removed from the property (ie. , drapes, rugs, etc.).
Work
All work must be performed by a licensed general contractor selected by the
homeowner, subject to Development Department review and approval.
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DEFERRED PAYMENT HOME IMPROVEMENT LOAN
Purpose
The Deferred Payment Loan Program is designed to provide property
improvement/rehabilitation assistance to financially impacted households.
Eligibility
Any property owner who occupies a residence located in a designated focus
neighborhood or elsewhere within the City limits that is in need of home
improvements and who meets program income requirements is eligible.
Income Requirements
Income eligibility for the deferred payment home improvement loan program
is based on both family size and total annual household income.
Income cannot exceed one hundred twenty percent (120X) of Median within a
focus neighborhood, or eighty percent (80X) of Median adjusted for family
size.
Note: In addition, the property owner must demonstrate extreme
economic hardship which would prevent their participation in
the various amortized property improvement loan programs.
Terms
This is a five percent (5%) interest loan up to a maximum of $40,000,
with all payments (principal and interest) deferred for fifteen (15)
years.
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Eligible Improvements
Any and all interior and exterior home improvements are eligible,
excluding luxury items (i.e. pools and spas), or any items which could be
easily removed from the property (i.e. drapes, rugs, etc.)
Work
All work must be performed by a licensed general contractor selected by
the homeowners, subject to Development Department review and approval.
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REBATE (GRANT) PROGRAM
Purpose
The Rebate (Grant) Program in designed to provide property improvement
assistance in response to a critical property improvement needs, where
other financial resources are not available.
Eligibility
Any property owner or mobilehome owner who occupies that residence, is in
immediate need of Home Improvement Assistance and meets program income
requirements is eligible.
Income Requirements
Income eligibility for the Rebate (Grant) Program is based on both family
size and total annual household income.
Income cannot exceed fifty percent (50%) of Median adjusted for family
size.
Rote: In addition, program eligibility is strictly limited to senior
citizens only (62 years of age or older).
Terms
- This is a grant (non-repayable) of up to $4,500.
Limit of one (1) Rebate (Grant) per household.
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Eligible Improvements
All code related interior and exterior home improvements are eligible.
In addition, there must be a demonstrated critical need, necessitating
the department's involvement in immediately correcting these items.
Work
All work must be performed by a licensed contractor selected by the
homeowners, subject to Development Department review and approval.
DRE:tnt:paw:0336V
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