HomeMy WebLinkAbout08- Development Department D E V E L 0 P ME NT D E P A R T H E N T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: FISCAL YEAR 1993-94
Executive Director HOME PROGRAM DESCRIPTION
Date: April 2, 1993
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Synopsis of Previous Commission/Council/Committee Action(s)-
On April 1, 1993, the Housing Committee considered this matter and
recommended to the Mayor and Common Council approval of same.
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Recommended Motion(s):
(Mayor and Common Council)
MOTION: That the Mayor and Common Council approve the attached
Fiscal Year 1993-94 HOME Program Description and
authorize staff to submit same to the U. S. Department of
Housing and Urban Development.
— "644
Administrator KENNETH J. HE#bERSON
Executive Director
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Contact Person(s) : Ken Henderson/Dave Edgar Phone: 5081
Project Area(s) : All Ward(s): 1 - 7
Supporting Data Attached: Staff Report; Program Description
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:lmp:1160E COMMISSION MEETING AGENDA
Meeting Date: 04/05/1993
Agenda Item Number: _
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
STAFF REPORT
FISCAL YEAR 1993-94 HOME PROGRAM DESCRIPTIOft
The City of San Bernardino has received from the U. S. Department of
Housing and Urban Development (HUD) formal Notice of FY 1993-94 HOME
Program funding availability in the amount of $723,000. The HOME
Investment Partnerships Act (HOME) Program which was created under
Title II of the National Affordable Housing Act of 1990. The general
purpose of HOME are as follows:
• To expand the supply of decent, safe, sanitary and affordable
housing, primarily rental housing;
• To strengthen the abilities of local government to provide housing;
• To assure Federal housing services, financing and other
investments are provided to local government in a coordinated,
supportive fashion.
Staff has formulated a HOME Program Description that supports the City's
adopted Housing Element, and is consistent with the City's adopted
Comprehensive Housing Affordability Strategy (CHAS). The program description
also includes certifications necessary to implement the HOME Program. The
1993-94 HOME Program Description proposed to utilize available HOME Program
funds totalling $723,000, towards the following housing activities:
Program and CHDO Administration - $108,450
Moderate Rehabilitation - $306,100
CHDO Activity (15%) - $108,450
Tenant-based Assistance Program - $200,000
Total Allocation - $723,000
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KJH:lmp:1160E COMMISSION MEETING AGENDA
Meeting Date: 04/05/1993
Agenda Item Number:
DEVELOPMENT DEPARTMENT STAFF REPORT
FISCAL YEAR 1993-94 HOME PROGRAM DESCRIPTION
March 3, 1993
Page Number -2-
Locally based non-profit organizations are strongly encouraged to participate
in all aspects of the HOME Program. These participants, however, must first
meet strict HUD requirements which will allow those organizations to be
designated as a Community Housing Development Organization (CHDO). the City
must allocate a minimum of $108,450 (15%), available FY 1993-94 total HOME
Program monies towards a designated CHDO activity. The City of San Bernardino
may, however, elect to work with one or more CHDOs to meet the specific goals
of the HOME Program.
On April 1, 1993, the Housing Committee considered this matter and recommend
to the Mayor and Common Council approval of same.
Based upon the staff report and the attached 1993-94 HOME Program Description,
staff recommends adoption of the form motion.
�r
KENNET J. HE ERSON, Executive Director
Development Department
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KJH:1mp:1160E COMMISSION MEETING AGENDA
Meeting Date: 04/05/1993
Agenda Item Number:
Home Investment Partnership Act
PROGRAM DESCRIPTION
W V h�IT'
City of San Bernardino
February 26, 1993
Grant Year 1993
TABLE OF CONTENTS
HOME PROGRAM DESCRIPTION ........................................................ 1
TABLE I - ALLOCATION OF HOME FUNDS ......................................... 3
RENTAL HOUSING REHABILITATION .......................
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION ..................... 5
TENANT BASED ASSISTANCE PROGRAM .......................................... 6
AFFIRMATIVE MARKETING ...................:............................................. 8
MINORITY AND WOMEN'S BUSINESS ENTERPRISE PROGRAM.............9
PROGRAM CERTIFICATIONS ........................................................... 10
g
HOME PROGRAM DESCRIPTION
FOR THE
CITY OF SAN BERNARDINO, CALIFORNIA
In November, 1991, the City of San Bernardino submitted a Comprehensive Housing Affordability
Strategy (CHAS) in accordance with the Interim Rule published by the U.S. Department of Housing
and Urban Development (HUD) and to comply with Title I of the National Affordability Housing Act
requirements for HUD program funding. The purpose of the CHAS was to identify current and
projected housing affordability needs within the community, to assess available and potential
resources, and to inventory existing institutional capabilities to meet identified housing needs.
To plan a strategy for affordable housing, staff analyzed existing populations current market
conditions, and existing housing stock. The initial strategy reflected an overall objective to
increase the number of affordable housing units with limited available resources.This objective
was to be achieved by channeling resources into existing operations proven to be successful in
providing affordable housing opportunities and related social support services.
The plan identified the following major priorities:
1. To increase the number of improved rental housing units through rehabilitation;
2. To increase the number of improved owner-occupied homes through rehabilitation and new
construction;
3. To increase the number of large family housing units through rehabilitation and new
construction, and;
4. To provide increased support for maintenance of homeless shelter facilities and to
implement a transitional housing program.
As a result of the 1992 CHAS Annual Performance Report, the City has added an additional
priority:
5. Assist first-time homebuyers with the purchase of affordable permanent housing.
2
Consistent with the City's approved General Plan and CHAS, the goals and objectives of the HOME
Program are as follows:
1. To expand the supply of decent, safe, sanitary and affordable housing, primarily rental
housing;
2. To strengthen the abilities of local government to provide housing;
3. To assure Federal housing services, financing and other investments are provided to local
government in a coordinated, supportive fashion.
The City of San Bernardino proposes to utilize HOME funds totalling $723,000 for the following
housing activities: rehabilitation of multi-family rental units, a Community Housing Development
Organization (CHDO) activity, CHDO operating expenses, tenant-based rental assistance, and
program administration.
The Economic Development Agency's Development Department has been direct by the Community
Development Commission (City Council) to administer the HOME Program. The mission of the
Housing Division of the Development Department is to actively maintain, improve and develop
affordable housing opportunities throughout the City of San Bernardino.
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TABLE 1
ALLOCATION OF HOME FUNDS
ACTIVI TY IQ-! Rental S Owner S Match Use
............................................................................................................................................
Program Admin $ 72,300 -0- -0- -a
CHDO Operating 36,150 -O- -0- -0.
New Construction -0- -O- -O- -0.
Substantial Rehab -0- -0- 4 .0.
Other Rehab 345,550 $354,550 -0- $88,638
Acquisition 60,000 60,000 30,000
Tenant-Based Rental 200,000 200,000 -0- 50,000
Assistance
............................................................................................................................................
TOTAL ALLOCATION $723,000 $168,638
*Please Note - The City of San Bernardino has been designated 'fiscal distress' which means that
the City qualifies for a match reduction of 50 percent. For Fiscal Year 1993, HOME Program
funds the City's local match contributions are reduced by 50 percent to a total match ofgSg4.319.
4
Consistent with the City's approved General Plan and CHAS, the goals and objectives of the HOME
Program are as follows:
1. To expand the supply of decent, safe, sanitary and affordable housing, primarily
rental housing;
2. To strengthen the abilities of local government to provide housing;
3. To assure Federal housing services, financing and other investments are provided
to local government in a coordinated, supportive fashion.
The City of San Bernardino proposes to utilize HOME funds totalling $723,000 for the following
housing activiites: rehabilitation of multifamily rental units, a Community Housing Development
Organization (CHDO) activity, CHDO operating expenses, tenant-based rental assistance, and
program administration.
The Economic Development Agency's Development Department has been direct by the Community
Development Commission (City Counsil) to administer the HOME Program. The mission of the
Housing Division of the Development Department is to actively maintain, improve and develop
affordable housing opportunities throughout the City of San Bernardino.
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RENTAL HOUSING REHABILITATION
As stated within the approved CHAS, the City of San Bernardino has an increased housing
affordability problem. Physical, social and market conditions have severer impacted this
community in recent years. To address these dramatic changes, the City s strategy is to take
action to offer programs to preserve the existing affordable housing stock and to add to this
inventory through rehabilitation of currently uninhabitable housing structures. This effort is directed
to single-family units and multi-family units, both owner occupied and rental units.
The rehabilitation of rental units is as important as the improvement of single-family owner
occupied units. Given the present economic downturn and limited supply of affordable housing, a
greater number of families are unable to afford a home. A rehabilitation program for single-family
and multi-family units will ensure rental housing housing remain available at affordable rates for
those low- to moderate income families that are unable to qualify for homeownership
opportunities.
An allocation of $400 700 will be used for acquisition and/or rehabilitation of one or more e7dsfing
structures. The HOME Program guidelines indicate that properties may be privately or publicly
owned. The City may also identify a designated CHDO or other non-profit organization to acgwre
and rehabilitate a single site, or scattered sites.
Tenant eligibility, annual income review, maximum subsidy, affordability covenants and tenant
relocation are major considerations within the the HOME Program regulations. This program wilt
be consistent with all HOME regulatory requirements and all rehabilitated properties will be in
compliance with Section 8 Existing Housing Quality Standards, local building codes, ordinances,
as well as specified energy conservation standards.
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COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS CHDO
The HOME regulations require Participating Jurisdictions (PJ) to reserve a minimum 15% of each
fiscal year's allocation of HOME funds for investment in affordable housing activities owned,
developed or sponsored by a CHDO. This represents $108,450, of the FY 1993-94 HOME
Program allocation.
To encourage participation in the HOME program and to determine eligibility of local non-profit
organizations to be selected as the designated CHDO, the City of San Bernardino has utilized a
number of recruitment techniques. As a result of public forums, public notices presentations to
various groups and Requests for Qualifications, the response by local non-prole organizations has
unfortunately been minimal.
There is the distinct possibility the City will need to provide technical assistance to develop the
financial and technical capacities of potential CHDO's. The City will offer technical assistance to
non-profit organizations to satisfy the Federal CHDO requirements pertaining to the Uniform
Relocation Act information for acquisition and relocation, National Environmental Protection Act,
financial planning project review, construction management, site selection and other selected
areas, as needed.
To date, the City has received interest from two non-profit organizations desirous of being
selected as the designated CHDO, both of which will require additional technical assistance to
own, develop or sponsor a HOME funded housing opportunity. As the HOME Program
opportunities become known to local non-profit organizations, and as the City builds relationships
to encourage participation, we believe the HUD/CHDO requirements will become easier to
accomplish.
The City currently anticipates using the designated CHDO to complement the transitional housing
program which is currently in research and design. In defining the current resources available to
support this program, it is estimated there are few, if any, organizations capable of providing
transitional housin g. It is anticipated that the designated CHDO will purchase a small multifamily
residential unit to provide this housing need. The CHDO will complete any rehabilitation
requirements for the facility to meet focal codes, HQS Standards and any other improvements
deemed necessary. The CHDO will then own, support and manage the facility. As the design of
the program becomes more clearly defined, the City will be able to assess the capabilities of the
CHDO so as to mutually accomplish the intent of the transitional housing program.
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TENANT-BASED ASSISTANCE PROGRAM
It is currently estimated that within the City of San Bernardino, approximately 48% of all housing
units are occupied by renters. As indicated in the CHAS there is a significant need to increase the
availability of quality affordable housing units within the 6ity. The San Bernardino County Housing
Authority has strongly supported the need for additional tenant-based assistance given the current
estimated waiting period for service of 3-5 years.
One clearly identified special needs household group separate and distinct from the Housing
Authority's existing Section 8 waiting list, is those households on the State After Care Waiting List.
The current assistance program for these disabled persons provides rental assistance to very-low
income persons who are certified to be physically, developmentally or mentally disabled. This
certification, given by recognized supportive service agencies must include participation by the
disabled person in a planned and ongoing program(s) of.reha6ilitation education, or other
supportive services that are directly related to the disability describeJ.
The Housing Authority has used its 173 allocations to partially meet the housing needs of this
group. Currently there are 234 persons on the waiting list, with an additional 3 to 4 persons
added each week. The needs of those on this list are met through attrition. These households
tend to be more stable once their housing needs have been met and less transient than single
person households. Therefore, they may wait for service substantially longer than those on the
Section 8 list.
An additional identified special needs group is large homeless families. To compound the apparent
difficulty very low income residents have in locating affordable housing, families with a large
number of dependents are less likely to find adequate larger housing facilities to accommodate
their special needs. The Housing Authorias indicated there are a number of families currently
on its waiting list, but the waiting period Zr fo service puts these families in further jeopardy.
The tenant-based assistance program will provide assistance for these special needs groups from
available HOME Program funding reserves. At this time, the Agency also anticipates providing
additional funding assistance to the County Housing Authority to provide self-sufficiency
counseling. This counseling could be provided to homeless families to assist them in becoming
self-supporting.
The City will provide rental assistance payments to landlords on behalf of eligible tenants to offset
monthly rents that exceed thirty percent (30%) of the gross family income. in all cases involving
assistance, the City and the County Housing.Authority will comply will all HOME regulations
governing the program. The Section 8 Housingg Voucher Program will be used as a model to
provide eligible participants broader flexibility to contract for decent, safe, sanitary and functional
housing within the City limits.
The Housing Authority will be responsible for inspecting units to ensure that Section 8 Housing
Quality Standards are being met, and to determine that rents being charged are reasonable and
are at market rate. Annual re-certifications will be performed to verify income of eligible tenants to
continue on the program. Tenant assistance will not exceed two years, but may be renewed,
subject to the availability of HOME funds.
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AFFIRMATIVE MARKETING
It is the affirmative marketing goal of the City of San Bernardino to assure individuals who
norma!ly might not appp for vacant rehabilitated units because of their race or ethnicity; (a) know
about a vacancies; tbfeel welcome to apply, (c) have the opportunity to rent the units, and; (d)
will not be discriminated against.
This policy will be implemented through the following affirmative marketing procedures:
1. Informing the public, potential tenants and owners of rental properties about Federal and
State Fair Housing laws and sub-recipients the City's Affirmative Marketing policies relating
to the HOME Program.
2. Informing the general public about available vacant units;
3. Special outreach efforts to inform persons not likely to apply;
4. Record keeping of how each vacancy was made known to the people that are served;
5. Assessment to be determined by procedure number '4', with actions taken to carry our
procedures numbered 02' and '3'; and, corrective actions to be taken if it is found that
property owners fail to carry out the procedures required within the policy.
9
MINORITY AND WOMEN'S BUSINESS ENTERPRISE PROGRAM
The goal of the Minority and Women 's Business Enterprise Program (under 24 CFR 92.350) of
the City of San Bernardino seeks, to promote the involvement of minority and women owned
businesses in City construction contracts, City suppliers, and other services, funded either in
whole or in part by Federal monies.
Consistent with the requirements of Executive Orders 11625 and 12432 concerning Minority
Business Enterprise, and 12138 concerning Women's Business Enterprise, the minority outreach
program attempts to make every effort to encourage the use of minority and women's business
enterprises in connection with HOME funded affordable housing activities, To the maximum extent
possible this includes real estate firms, construction firms, appraisal firms, management firms,
financial institutions, investment banking firms, underwriters, accountants, and providers of legal
services.
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CERTIFICATIONS - HOME PROGRAM
In accordance with the Home Investment Partnerships Act and with 24 CFR 92.150 of the Home
Investment Partnership Program Rule, the City of San Bernardino certifies that:
1 Project Evaluati on - before committing an funds to a project, it will evaluate the project in
accordance with the guidelines adopted for this purpose and will not invest any more HOME
funds in combination with other Federal assistance than is necessary to provide affordable
housing;
2. Tenant-based Rental Assistance - the use of HOME funds for tenant-based rental assistance is
an essential element ot the annual approved housing strategy for expanding the supply,
affordability and availability of decent, safe, sanitary and affordable housing.
3. Legal Authority - the submission of the program description is authorized under State and
local law and possesses the legal authority to carry out the HOME Program in accordance
with the HOME regulations;
4. 4cqWisiUon and Relocation - it will comp with the acquisition and relocation requirements of
e ni orm Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended, implementing regulations of 49 CFR Part 24, and the requirements of 24 CFR
92.353;
5• Comprehensive Ugusing i' - it will use HOME funds pursuant to the current
comprehensive Affordability Strategy ( HA approved by HUD and all requirements of 24
CFR Part 92;
6. Drug- ee W place - 24 CFR Part 24, Sub-part F - it will or will continue to provide a
drug-tree work place by:
(a) Publishing a statement notifying employees that the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance is prohibited in the grantee's
work place and specifying the actions that will be taken against employees for violation
of such prohibition;
(b) Establishing an ongoing drug-free awareness program to inform employees about-
(i) The dangers of drug abuse in the work place;
(ii) The City's policy of maintaining a drug-free work place;
(iii) Any available drug counseling, rehabilitation and employee assistance
programs; and
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CERTIFICATION ; HOME PROGRAM
(Continued)
(iv) The penalties that may be imposed upon employees for drug abuse violations
occurring in the work place;
(c) Making it a requirement that each employee to be engaged in the performance of the grant
be given a copy of the statement required by paragraph (a);
(d) NotiNing the employee in the statement required by paragraph (a) that, as a condition of
employment under the grant, the employee will -
(i) Abide by the terms of the statement; and
(ii) Notify the employee in writing of his or her conviction for a violation of a criminal
drug statute occurring in the work place no later than five (5) calendar days after
such conviction;
(e) Notifying the ag�ency in writing within ten (10) calendar days after receiving notice under
paragraph (d) (ii) from an employee or otherwise receiving actual notice of such conviction.
Employers of convicted employees must provide notice, including position title, to every grant
officer or other designee on whose grant activity the convicted employee was working, unless
the Federal agency has designated a central point for the receipt of such notices. Notice shall
include the identification number(s) of each affected grant.
(f) Taking one of the following actions, within 30 calendar days of receiving notice under
paragraph (d) (ii), with respect to any employee who is so convicted -
(i) Taking appropriate personnel action aggainst such an employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act of
1973, as amended; or
(ii) Requiring such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a Federal, State, or local
health, law enforcement, or other appropriate agency;
(g) Making a good faith effort to continue to maintain a drug-free work place through
implementation of paragraphs (a), (b), (c), (d), (e) and (f).
(h) The grantee may insert in the space provided below the site(s) for the performance of work
done in connection with the specific grant:
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CERTIFICATION HOME PROGRAM
(Continued)
Place of Performance (Street address, City, County, State, Zip Code)
7. Lobbying_- 24 CFR Part $Z -to the best of its knowledge and belief;
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
City of San Bernardino to any person for influencing or attempting to influence an
officer or employee of any agency, a member of Congress in connection with the
awarding of any Federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment or modification of any Federal contract,
grant, loan, or cooperative agreement;
(b) If any funds other than Federal appropriated funds have been paid or will be paid to
any person for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, an officer or employee of Congress, or an employee
of a member of Congress in connection with this Federal contract, grant loan, or
cooperative agreement, it will complete and submit Standard Form-LLL, Disclosure
Form to Report Lobbying', in accordance with its instructions; and
(c) The City will require that the language of paragraph (6) of this certification be included
in the award documents for all sub-awards at all tiers (including subcontracts,
sub-grants, and contracts under grants, loans and cooperative agreements) and that
all sub-recipients shall certify and disclose accordingly.
JMc:hmnstmt.rpt
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