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HomeMy WebLinkAbout06- Development Department ► EVELOPMENT DEPARTF NT OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: FISCAL YEAR 1994-95 Executive Director HOME PROGRAM DESCRIPTION DATE: March 2, 1994 --------------------------------------------------------------------------------------------------------------------------------------------- Synonsis of Previous Commission/Council/Committee Action(s): On March 1, 1994, the Housing Committee recommended to the Mayor and Common Council approval of the attached Fiscal Year 1994-95 HOME Program Description. --------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Manor and Common Council) MOTION: That the Mayor and Common Council approve the attached Fiscal Year 1994-95 HOME Program Application and authorize the Mayor and Executive Director to execute any documents necessary to effectuate the submittal of said application in a timely manner. Administrator KENNETH J. H NDERSON Executive Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s):Kenneth J. Henderson/David R. Edgar Phone: 5081 Project Area(s): All Ward(s): All Supporting Data Attached: Staff Report; FY 94-95 HOME Program Description FUNDING REQUIREMENTS: Amount:$ N/A Source: N/A Budget Authority: N/A --------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ---------------------------------------------------------------------- KJH:DRE:ABE:paw:fy94home.cdc COMMISSION MEETING AGENDA Meeting Date: 03/07/1994 i Agenda Item No: DEVELOPMENT DEPARTME. STAFF REPORT ------------------------------------------------------------------------------------------------------------------------------- FISCAL YEAR 1994-95 HOME PROGRAM DESCRIPTION The City of San Bernardino has received the U. S. Department of Housing and Urban Development (HUD) formal Notice of FY 1994-95 HOME Program funding availability in the amount of $1,351,000. The Home Investment Partnerships Act (HOME) Program was created under Title H of the National Affordable Housing Act of 1990. The general purposes of the HOME program 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 such housing opportunities; • To ensure that 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 1994-95 HOME Program Description proposes to utilize available HOME Program funds totalling $1,351,000, towards the following housing activities: Program Administration (10%) $135,100 Moderate Rehabilitation $723,350 CHDO Activity (24%) $325,000 Tenant-Based Rental Assistance Program (TBRA) $100,000 CHDO Administration (5%) $67,550 TOTAL ALLOCATION $1,351,000 ---------------------------------------------------------------------- KJH:DRE:ABE:pawly94home.cdc COMMISSION MEETING AGENDA Meeting Date: 03/07/1994 Agenda Item No: DEVELOPMENT DEPAF IENT STAFF REPORT FISCAL YEAR 1994-95 HOME PROGRAM DESCRIPTION March 1, 1994 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 $202,650 (15%) of available FY 1994-95 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. FY 1994-95 HOME funded moderate rehabilitation monies will be exclusively targeted towards the rehabilitation of multi-family rental properties. Based upon available FY 1994-95 HOME Program resources, it is anticipated that approximately thirty-two (32) multi-family units will be assisted. The Housing Division has also targeted multi-family property within the Arden-Guthrie "Focus" Neighborhood for utilization of designated CHDO monies. The Tenant-Based Rental Assistance Program (TBRA) will once again be administered through the County Housing Authority, with HOME monies being utilized exclusively towards program recipients. This program targets individuals and families on the State After-Care list with annual household incomes below 50% of median. Through TBRA, approximately eight (8) households will receive rental assistance for a two (2) year period. On March 1, 1994, the Housing Committee approved the attached Fiscal Year 1994-95 HOME Program Description and recommended forwarding said item to the Mayor and Common Council. Based upon the staff report and the attached 1994-95 HOME Program Description, staff recommends adoption of the form motion. t14 K KEN ETH J. IIENDERSON, Executive Director Development Department ---------------------------------------------------------------------- KJH:DRE:ABE:paw:fy94home.cdc COMMISSION MEETING AGENDA Meeting Date: 03/07/1994 Agenda Item No: TABLE OF CONTENTS HOME PROGRAM DESCRIPTION-------------------------------------------=--------------- I TABLE I - ALLOCATION OF HOME FUNDS -------------------------------------------- 3 RENTAL HOUSING REHABILITATION ---------------------------------------------------- 4 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION ----------------------- 5 TENANT BASED ASSISTANCE PROGRAM --------------------------------------------- 6 AFFIRMATIVE MARKETING --------------------------------------------------------------- 8 MINORITY AND WOMEN'S BUSINESS ENTERPRISE PROGRAM --------------- 9 PROGRAM CERTIFICATIONS --------------------------------------------------------------- 10 HOME PROGRAM DESCRIPTION FOR THE CITY OF SAN BERNARDINO, CALIFORNIA In December 1993, 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 goal of the Development Department Housing Division is to actively maintain, improve and develop quality neighborhoods and housing opportunities throughout the City of San Bernardino. The plan identified the following major priorities: • Preservation and Rehabilitation of the "Affordable" Housing Stock, Emphasizing Single-Family Units. • Assist Low Income First Time Home buyers with the Purchase of "Affordable" Permanent Housing. • Expansion of "Affordable" Housing Opportunities for Low Income Large Families Primarily through New Construction. • Provide Rental Assistance to Very Low Income Households. • Assist Homeless and Special Needs Persons with Supportive Services. 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 $1,351,000 for the following housing activities: rehabilitation of multi-family rental units, a Community Housing Development Organization (CHDO) activity, tenant-based assistance, and program administration (See Table 1). The Economic Development Agency's Development Department has been directed by the Community Development Commission (City Council) to administer the HOME Program. TABLE 1 CATEGORY RENTAL OWNER 100% MATCH *50% MATCH TOTAL CATEGORY + ALLOCATION REHAB REHAB REQUIREMENT REQUIREMENT 50% MATCH Program Admin. 135,100 135,100 -0- -0- -0- 135,100 CIID0 325,000 325,000 -0- 81,250 40,625 365,625 CIIDO Admin . 67,550 67,550 -0- -0- -0- 67,550 New Construction -0- -0- -0- -0- -0- -0- Substantial Rehab -0- -0- -0- -0- -0- -0- Moderate Rehab 723,350 723,350 -0- 197,500 98,750 889,650 Acquisition -0- -0- -0- -0- -0- -0- "Tenant-Based 100,000 100,000 -0- 25,000 12,500 112,500 Rental Assistance TOTAL 1,351,000 1,351,000 -0- 303,750 151,875 1,502,875 *Please Note - The City of San Bernardino has been designated as a "fiscal distress" community which means that the City qualifies for a match reduction of 50 percent. For Fiscal Year 1994 HOME Program funds, the City's local match contributions are reduced by 50 percent to a total match of $151,875. 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 severely 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 currently uninhabitable housing structures. This effort is directed to single-family units and multi-family 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 remains available at affordable rates for those low- to moderate income families that are unable to qualify for homeownership opportunities. Approximately $900,000 will be used for rehabilitation of existing 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 acquire 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 HOME Program regulations. This program will 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. 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 $202,650 of the FY 1994-95 HOME Program allocation. The City plans to utilize $325,000 for a CHDO project, well above the requirement. 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. Although, as a result of public forums, public notices, presentations to various groups and Requests for Qualifications, the response by local non-profit organizations has unfortunately been minimal. The City has one designated CHDO which compliments the transitional housing program and is currently close to beginning construction. In defining the current resources available to support this program, it is estimated there are few, if any, organizations capable of providing transitional housing. It is anticipated that the designated CHDO will purchase a small multi- family residential unit to provide this housing need. The CHDO will complete any rehabilitation requirements for the facility to meet local 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. 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 City. The San Bernardino County Housing Authority has strongly supported the need for additional tenant-based assistance given the current estimated waiting period 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 Lists. 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 rehabilitation, education, or other supportive services that are directly related to the disability described. The Housing Authority has used its 173 vouchers 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 and less transient once their housing needs have been met 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 Authority has indicated there are a number of families currently on its waiting list, but the waiting period for 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 staff 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 with all HOME regulations governing the program. The Section 8 Housing 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. AFFIRMATIVE MARKETING It is the affirmative marketing goal of the City of San Bernardino to assure individuals who normally might not apply for vacant rehabilitated units because of their race or ethnicity; (a) know about the vacancies; (b) feel 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 of 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 out procedures numbered "2" 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. 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, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services. 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 Evaluation - before committing any 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 of 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. Acquisition and Relocation - It will comply with the acquisition and relocation requirements of the Uniform 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 Housing Affordability Strategy - It will use HOME funds pursuant to the current Comprehensive Affordability Strategy (CHAS) approved by HUD and all requirements of 24 CFR Part 92; 6. Drug-free Work place - 24 CFR Part 24, Sub-part F - it will or will continue to provide a drug-free 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 � i CERTIFICATIONS - 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) Notifying 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 Agency 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 against 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: CERTIFICATIONS - HOME PROGRAM Place of Performance (Street address, City, County, State and Zip Code) 7. Lobbying - 24 CFR Part 87 - 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 and 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 funds other than Federal appropriated funds have been paid or will be paid to any person 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 sub-contracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. fy94homeabe