HomeMy WebLinkAboutR5- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: RONALD E.WINKLER SUBJECT: CONSOLIDATED PLAN
Development Director RELATED ITEM: SET PUBLIC
HEARING FOR SECOND
DATE: April 30, 1998 AMENDMENT TO THE
THIRD YEAR ACTION PLAN
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Synopsis of Previous Commission/Councit/Committee Action(s):
On April 20, 1998,the Community Development Citizen Advisory Committee met to consider a second amendment to
the Third Year Action Plan(FY 1997-1998).
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Recommended Motion(s):
(Mayor and Common Council)
MOTION: That the Mayor and Common Council establish Monday,May 18, 1998 at 2:00 p.m.,in the City
Council Chambers as the date,place and time for a public hearing to solicit citizen comments on the
second amendment to the 1997-1998 FY Third Year Action Plan.
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Contact Person(s): Ronald E.Winkler/Norma Owens Phone: 5081
Project Area(s): City Wide Ward(s): 1-7
Supporting Data Attached:0 Staff Report❑ Resolution(s) ❑ Agreement(s)/Contract(s)❑ Map(s)❑Ltr/Memo
FUNDING REQUIREMENTS: Amount: $500,000 Source: 97/98 HOME Fund Line of Credit
Budget Authority:
SIGNATURE: 4• �t/`w� _
Administrator onald E. inkler,Director
Development
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Commission/Council Notes:
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REW:Iag:05-04-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/04/1998
Agenda Item Number:'
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Consolidated Plan Related Item: Set Public Hearing for Second
Amendment to the Third Year Action Plan
Background
Currently, $562,400 in 1997-1998 FY HOME Investment Partnership Act Program(HOME)
funds are obligated to the Mobile Park Purchase Program. Because this Program is effectively
being phased out as an activity, and need exist to increase funding in to active projects, the
following is purposed for re-obligating$500,000 of the available $562,400.
Acquisition. Rehabilitation and Resale Program(AM
The ARR Program began in the fall of 1996. Under the program, the Economic Development
Agency(EDA) acquires U.S. Department of Housing and Urban Development (HUD) foreclosed
single-family units at a substantial discount and sells the units to qualified contractors capable of
obtaining private financing to undertake quality rehabilitation. Once rehabilitated, the units are
sold to qualified first time homebuyers. HOME funds have been used to assist the first time
buyers with down payment assistance to acquire the units. A buyer must be able to qualify for a
conventional first mortgage and the down payment assistance under the ARR Program becomes a
second trust deed on the property.
The ARR Program has been such a success, that all previous funding has been expended. The
transfer of$300,000 in HOME funds into the ARR Program, will allow pending transactions to
be completed and allow the Program to function until the end of 1997-1998 Fiscal Year.
Mobilehome Park Rehabilitation Program
On February 16, 1998, the Mayor and Common Council took action to create the Mobilehome
Park Rehabilitation Program. This Program, currently funded with$500,000 in 1996-1997 and
1997-1998 HOME funds, was created to assist with the rehabilitation of common areas in the
mobileome parks acquired by EDA over the last several years. Based on current estimates for the
cost of improvements an additional funding need of$200,000 is anticipated to assure that the
work can be completed.
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REW:1ag:05-04-03.cdc COMMISSION MEETING AGENDA
MEETING DATE:05/04/1998
Agenda Item Number: C5
Economic Development Agency Staff Report
Second Amendment
April 30, 1998
Page Number-2-
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In summary, the requested funding would be expended as follows:
TABLE A
1997-1998 FY REDISTRIBUTION OF HOME PROJECT FUNDS
Previously Approved:
Mobilehome Purchase Program $562,400
Reprogramming Request:
Acquisition, Rehabilitation, Resale Program $300,000
Mobilehome Park Rehabilitation $200,000
Available for Future Reprogramming $62,400
TOTAL $562,400
Recommendation
Approve the motion to hold a public hearing on May 18, 1998 at 2:00 p.m., in the City Council
Chambers to receive public comment(s) on the second amendment to the Third Year Action Plan.
t.
RONALD 9. WINKLER, Director
Development Department
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REW:Iag:05-04-03.cdc COMMISSION MEETING AGENDA
MEETING DATE: 05/04/1998.
Agenda Item Number: