HomeMy WebLinkAbout23- City Administrator CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: Fred Wilson Subject: Neighborhood Initiative Target
City Administrator Area Proposal
Dept: ORIGINAL
Date: September 15 , 1998
Synopsis of Previous Council action:
Recommended motion:
That the Neighborhood Initiative Target Area proposal as outlined in the
attached staff report be approved in concept.
Signature
Fred Wilson 5122
Contact person: Phone:
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount:
Source: (Acct No.)
(Acct Description)
Finance:
Council Notes:
7e-0262 Agenda Item No.
STAFF REPORT
Attached is the Neighborhood Initiative Proposal which will be submitted to the County by the
Mayor. The City is proposing to use a minimum of$8 million of the $15 million allocated for
this program by Congress.
Background
In late 1997, Congress acted on the recommendations of the House Appropriations Sub-
Committee Chair, Congressman Jerry Lewis, and appropriated $15 million for a model program
that creates jobs,removes blight, and leads to community revitalization.
The wording of HG.R 2158 referencing the grant award is:
Of the amount made available under this heading, $25,000,000, including$15,000,000
for the County of San Bernardino, California, shall be used for neighborhood initiatives
that are utilized to improve the conditions of distressed and blighted areas and
neighborhoods, and to determine whether housing benefits can be integrated more
effectively with welfare reform initiatives.
Funded under HUD's Neighborhood Initiative Program, the model program makes funds
available to the County of San Bernardino for neighborhood preservation in the cities of
Highland, Redlands, San Bernardino and the adjoining unincorporated areas. The County is the
direct recipient of the funds, but the City intends to pursue a sub-contract with the County to
receive its portion.
i
The goals and objectives of the program are to:
• Make an impact both visibly and structurally in targeted neighborhoods.
• Increase percentage of owner occupied residences, concentrating on first time homebuyers.
• Create employment opportunities emphasizing"welfare to work" initiatives.
• Eradicate blight in neighborhoods.
• Bring housing stock up to code.
• Beautify and restore a sense of pride in neighborhoods.
• Develop safe neighborhoods.
• Forge partnerships with all segments of the community.
• Revitalize existing multi-family rental units as a crucial component of a healthy
neighborhood.
Proposal
As the proposal explains in more detail, the initial target areas were selected based on the
concentration of HUD homes, the conditions of the properties in the area, geographic
distribution, and the likelihood that the Neighborhood Initiative program funds would be able to
make a significant, lasting impact on the condition of the neighborhood.
One of the important components of the program is that the City must show that is leveraging the
Neighborhood Initiative funding with its own funds. Under each program area, there is a city
contribution figure listed. This is the total estimated spending over the five years both inside and
outside the target areas; these funds will not be spent exclusively within the boundaries of the
areas. While emphasis will no doubt be placed on using City funds to maximize the impact of the
Neighborhood Initiative program, is important that resources will not be drawn away from other
areas of the city.
It is likely that this proposal will be modified upon further review by the County. For this
reason, the proposal is broadly written. Once the parameters of the program are more clearly
defined by the County, detailed plans will be developed.
Recommendations
It is recommended that the Council approve the attached draft proposal.
City of San Bernardino
Neighborhood
Initiative Program
Proposal
Presented by
Mayor Judith Valles
September 21, 1998
Introduction
The neighborhoods within the City of San Bernardino have been distressed for at least the
last 10 years. A 1995 survey of all structures in the city showed that a large number of homes
are either in very deteriorated condition and need substantial repairs, or are in dilapidated
condition and should be torn down. This condition exists because the average age of housing in
the city of San Bernardino exceeds 50 years which is above the norm for Southern California.
Since the 1995 survey, the city has made a significant investment in its neighborhoods.
Increasing code enforcement, enhancing community policing, strengthening of neighborhood
groups, providing more homeownership opportunities, and demolishing the most blighted
buildings have by most accounts stopped the spread of deterioration, and have begun to improve
the condition of the community.
The city views the Neighborhood Initiative program as an opportunity to enhance these
already effective programs. By concentrating efforts in designated pilot areas, leveraging
existing city and county resources, and partnering with private industry and volunteers, the city
will make a tremendous lasting impact on the quality of life in the target neighborhoods.
Selection of Neighborhood Improvement Zones
In order to select the neighborhood improvement areas that will benefit directly from the
Neighborhood Initiative, HUD data concerning single-family homes was entered into the city's
GIS database and mapped. The resulting concentrations of HUD-owned insured and uninsured
properties became the primary criteria for selecting the improvement areas. These
concentrations were measured in terms of the average number of acres per HUD-owned property
in the areas.
Secondly, data from the city's 1995 survey of property conditions was used to evaluate
the general condition of the area under consideration. This survey was conducted over a 3-
month period by Fire Department crews that had been provided specialized training. A visual
evaluation of each property was made, and the resulting data was entered into the city's GIS
database. County and City data regarding owner-occupancy was also compiled.
The survey grouped all properties into three (3) categories. Category A properties are
considered standard; they have no obvious property maintenance code violations. Category B
properties are deteriorating and in substandard condition, requiring rehabilitation. Category C
properties are those so dilapidated that the unit is structurally unsafe or unsound, has no further
useful life, and should be demolished.
The survey was general in nature, and as such gives a good general indication of the
conditions of neighborhoods. The overall condition of the structures in the HUD-concentration
areas, as indicated by the survey, became the secondary selection criteria.
Finally, seven of the 20 identified concentration areas were selected so that most areas of
the city have some neighborhoods that will be included in the initial program. The characteristics
of these seven areas are detailed in the "Target Area Characteristics" section of this proposal.
The seven areas were selected based upon the established criteria, and also upon the likelihood
that Neighborhood Initiative program would provide sufficient funding to make a sizable impact.
Some of the most dilapidated areas, therefore, were not included.
City of San Bernardino 1
Neighborhood Initiative Proposal
09/17/98
Program Components
As previously stated, the 7 initial target areas were selected because they have the largest
concentration of HUD-owned homes in the city. 'These homes can be acquired at a discount,
rehabilitated, and sold to owner-occupants. The acquisition, rehabilitation, and resale of these
HUD-owned properties forms the core of the city's Neighborhood Initiative program.
In Phase I of the program, the City proposes to use approximately $8 million in
Neighborhood Initiative funds to dramatically improve 7 initial target areas within the City of
San Bernardino. These funds will be matched with over $4 million in investments by the city in
and around the target areas, and potentially additional millions in private funds. Concentration
areas not included in the initial target areas will be incorporated into the city's existing
Acquisition, Rehabilitation, and Resale (ARR) program and other revitalization strategies
already in place. In Phase II, remaining funds will be used to rehabilitate these secondary
concentration areas.
The County of San Bernardino has been designated as the lead agency for this program,
and as such will partner with the City to implement it. As its partner agency, the City envisions
the following general program components. The funding amounts are estimated for the five
years of the program:
Acquire, rehab, and sell HUD homes in and around the improvement zones.
Neighborhood Initiative funding: $2,750,000
City funding: $1,000,000
The County will acquire and rehabilitate the HUD homes within the improvement areas.
These homes will be rehabilitated using city-approved contractors and to quality standards.
Rehabilitation will also include front yard landscaping, which is critical to the overall appearance
of neighborhoods. As rehabilitation funds are repaid when homes are sold, the proceeds will be
reinvested into additional rehab projects in the improvement areas. The proposed Neighborhood
Initiative funds will be used to provide down payment and closing cost assistance to buyers in
the target areas.
The City commits to acquire HUD properties in the neighborhoods immediately
surrounding the improvement area boundaries at the same discount as the County (or the city's
current discount, whichever is higher) through its Acquisition, Rehabilitation, and Resale
program (ARR). The City will also provide down payment and closing cost assistance in these
surrounding areas as needed.
City of San Bernardino 2
Neighborhood Initiative Proposal
09/16/98
Beautification Grants to
Improve the appearance of homes.
Neighborhood Initiative funding: $2,800,000
City funding: $1,000,000
Grants will be provided to owner occupants for exterior property improvements using
NIP funds and substantial City funds. NIP funds will also be used to provide grants for exterior
painting. The City will coordinate volunteer efforts that will be critical to this aspect of the
program.
The City establish a "showcase block" in each area that will receive completely new
front-yard landscaping. The landscaping will serve as a model for low-maintenance, quality
landscaping that could be done by residents throughout the area. Property owners will contribute
by committing "sweat equity" to the project, and NIP funds will be used for landscape
contractors, supplies, and related expenses.
Demolish and replace deteriorated HUD housing.
Neighborhood Initiative funding: $900,000
City funding: $500,000
The County will acquire dilapidated HUD housing and demolish those structures if
needed. In accordance with California redevelopment law, the County will also be responsible
for replacing demolished housing. No privately owned, occupied housing will be acquired for
the purposes of demolition.
Some privately-owned structures in the area may already be in the City's Code
Compliance Division's demolition process. These properties will become the highest priority for
demolition using City funds.
City of San Bernardino 3
Neighborhood Initiative Proposal
09/16/98
Address the issue of blighted multi family housing.
Neighborhood Initiative funding: To be determined
City funding: $0
The City does not have existing resources to address the tremendous need for improving
multi-family housing. Many of the target areas are weighted down by blighted four-plexes and
other small multi-family structures. Unless these units are improved or demolished, they will
continue to decrease the values of the surrounding homes and keep the neighborhoods in overall
disrepair. The City in conjunction with the County will develop a program to consolidate
ownership and management of multi-family units in the target areas. The intent of this approach
will be to improve tenant selection standards, occupancy and neighborhood stability.
Invest in infrastructure.
Neighborhood Initiative funding: $ 500,000
City funding: $1,000,000
Many streets and sidewalks within the improvement areas are in need of repair, or have
very recently undergone resurfacing and repair. To complement the improvements to homes in
the neighborhoods, the City will slurry seal streets where appropriate, and repair sidewalks and
gutters as needed within the area boundaries using existing City resources. Street lighting needs
will also be evaluated and addressed.
Enforce property maintenance standards, and equip residents to meet those
standards. .
Neighborhood Initiative funding: $500,000
City funding: $100,000
The City will focus code compliance activities in the improvement areas. NIP funds may
be used to add additional Code Compliance Officer II positions for this purpose.
The City will also partner with community organizations and local businesses to provide
property maintenance workshops for residents. Workshops will teach gardening, basic repair,
household budgeting, and the city's property maintenance standards. Relationships with the
existing neighborhood associations in the areas will be enhanced. Assistance will be provided to
these associations for newsletters, block meetings, and other activities that promote community
awareness.
Clean up junk and debris.
Neighborhood Initiative funding: $125,000
City funding: $250,000
The City will coordinate special clean-up days, and allow residents to drop off junk free
of charge. The City will use its Refuse Division resources for this purpose.
City of San Bernardino 4
Neighborhood Initiative Proposal
09/16/98
Involve children in the process.
Neighborhood Initiative funding: $20,000
City funding: $20,000 (in kind)
The City will expand its existing blight education program in the elementary and middle
schools in the areas. This program is designed to instill neighborhood pride in children, teach
them about the value of maintaining their homes, and involve them in community clean-up
projects. For a relatively small cost, this program will promote ongoing involvement of children
in the community.
Document results and streamline administration.
Neighborhood Initiative funding: $375,000
City funding: $ 50,000 (in kind)
The City will conduct an annual survey of the condition of the target area each year for
the next 5 years, in order to document the changes in the neighborhood. The City will also track
other outcome measurement data, such as incidents of crime, property value, and percentage of
owner-occupancy. This information will be critical for the Neighborhood Initiative's role as a
model program for HUD.
The City will also take responsibility for ensuring that property owners who benefit from
the program through loans and grants are continuing to maintain the improvements that were
made. If properties are not kept to standards, then grants will become loans, and repayment will
be required. This follow-up and monitoring is an important portion of the Neighborhood
Initiative program's lasting impact.
The City will also obtain the services of a project manager who will be responsible for
the successful implementation of the program. NIP funds will be used for this purpose.
City of San Bernardino 5
Neighborhood Initiative Proposal
09/16/98
PhaseI .
Initial Target
Areas .
The following initial target areas were selected based on the concentration of HUD
homes, the conditions of the properties in the area, geographic distribution, and the likelihood
that the Neighborhood Initiative program funds would be able to make a significant, lasting
impact on the condition of the neighborhood.
Maps of each initial target area are also attached. These maps show the number of MUD
owned properties, the conditions of the properties, and rental units. A legend is also attached.
For more information or clarification regarding this data, please contact Lori Sassoon at
(909)384-5122.
City of San Bernardino 6
Neighborhood Initiative Proposal
09/16/98
Target Area 1
Boundaries: D Street, 18th Street, Sierra Way, and 13th
Street
Area in acres: 143.7
Number of housing units: 489
Number of HUD properties: 20
Acres per HUD property: 7.18
Property conditions: A (Standard)= 73%
B (Deteriorated)= 26%
C (Dilapidated)= 1%
Target Area 1 (TA 1) represents contains one of the largest concentrations of HUD-owned
properties in the city. The neighborhood is characterized by a mix of small single-family homes,
duplexes and four-plexes, and small apartment buildings; approximately 30% of the homes are
owner-occupied. While some homes are being well maintained, approximately 26% are in
disrepair.
City of San Bernardino 7
Neighborhood Initiative Proposal
09/16/98
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Target Area 4
Boundaries: Western Ave., 11th Street, Mt. Vernon Ave.,
and 91h Street
Area in acres: 96.48
Number of housing units: 225
Number of HUD properties: 10
Acres per HUD property: 9.65
Property conditions: A (Standard)= 43%
B (Deteriorated)= 56%
C (Dilapidated)= 1%
Target Area 4 (TA 4) is a small neighborhood with a large concentration of need. The structures
are generally older and are on long, narrow lots. Approximately 60% of these homes remain
owner-occupied. The area contains exclusively single-family homes, at least 56% of which are in
need of rehab.
TA 4 will provide an example of how Neighborhood Initiative resources can be used to make a
significant difference in a very distressed area.
City of San Bernardino $
Neighborhood Initiative Proposal
09/16/98
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Target Area 5
Boundaries: Lakewood Dr., Windsor St., Little Mountain
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Area in acres: 113.98
Number of homes: 328
Number of HUD properties: 10
Acres per HUD property: 11.4
Property conditions: A (Standard)= 92%
B (Deteriorated)=8%
C (Dilapidated)= 0%
Target Area 5 (TA 5) is a neighborhood in transition. Well-maintained, nicely landscaped homes
are intermixed with boarded-up HUD properties other homes in extremely poor condition.
Approximately 34% of the homes in the neighborhood are rentals, which is high for a
neighborhood that contains relatively large single-family homes. A driving tour of the area
indicates that the properties are in worse condition than the 1995 survey indicated, likely
showing that the neighborhood has deteriorated since that time.
The Neighborhood Initiative project will be used here to stabilize the area so that the responsible
property owners will not begin to move out of the area. The investment of funds required in this
area will not need to be as large as the investment made in some of the other target areas.
City of San Bernardino 9
Neighborhood Initiative Proposal
09/16/98
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Target Area 8
Boundaries: King St., K Street, Belleview Street, Mt. Vernon
Avenue
Area in acres: 124.54
Number of homes: 101
Number of HUD properties: 6
Acres per HUD property: 12.45
Property conditions: A (Standard)=50%
B (Deteriorated)= 50%
C (Di1apidated)=0%
This is a very small neighborhood that contains a large number of deteriorated homes. Over
90% of the homes are rental units, which is an unusually high concentration of rentals. 50% are
in deteriorated condition.
City of San Bernardino 10
Neighborhood Initiative Proposal
09/16/98
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Target Area 16
Boundaries: Sepulveda Ave., Sierra Way, Waterman Ave.,
and 40th Street
Area in acres: 93.95
Number of homes: 335
Number of HUD properties: 14
Acres per HUD property: 6.71
Property conditions: A (Standard)= 89%
B (Deteriorated)= 11%
C (Dilapidated)= 0%
This Target Area represents another neighborhood in transition. While many properties meet the
city's minimum standards for maintenance, the overall condition of the neighborhood is
deteriorated. The area consists of older single-family residential units, with some small
apartment buildings. The area is approximately 50% owner-occupied.
City of San Bernardino 11
Neighborhood Initiative Proposal
09/16/98
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Target Area 18
Boundaries: 14th Street, I Street, 13th Street, and K Street
Area in acres: 19.99
Number of homes: 84
Number of HUD properties:. 5
Acres per HUD property: 4.0
Property conditions: A (good)= 48%
B (deteriorated)= 52%
C (dilapidated)= 0%
This small neighborhood has a notable concentration of HUD properties and homes in
deteriorating condition. There are also a number of well-maintained homes mixed with vacant
lots, making the neighborhood a microcosm of San Bernardino as a whole. Approximately 48%
of the homes are owner occupied.
City of San Bernardino 12
Neighborhood Initiative Proposal
09/16/98
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Target Area 20
Boundaries: 16th Street, Waterman Ave., Baseline St., and
Sierra Way
Area in acres: 119.81
Number of homes: 373
Number of HUD properties: 22
Acres per HUD property: 5.45
Property conditions: A (Standard)= 78%
B (Deteriorated)= 22%
C (Dilapidated)= 0%
Ward: 2
TA 20 is contiguous with TA t, and shares many of the same characteristics. The two areas have
been separated due to their size. The neighborhoods immediately north of TA 20 are in
excellent condition and appear to be largely owner-occupied. In this area, however, only 26% of
the units are owner-occupied; the remainder are rentals. Improving properties in TA 20 will also
have a preserving effect upon these surrounding neighborhoods.
City of San Bernardino 13
Neighborhood Initiative Proposal
09/16/98
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LEGEND: HOUSING STATISTICS
A 232 = 78% 8 MAINTENANCE 61 16%
8 81 = 22% HUD HOUSING 22
TOTAL=====-------===-=373
NEIGHBORHOOD IMPROVEMENT ZONE - 20
Next Steps
The City anticipates meeting with County representatives to discuss this proposal further.
The specific roles of both the County and the City need to be further defined. While the County
is the administrator of funds, the City should be the lead in program implementation, working
closely with County officials. These administrative issues should be clarified, so that the
Neighborhood Initiative program can begin as soon as possible.
City of San Bernardino 14
Neighborhood Initiative Proposal
09/16/98
CITY OF SAN BERNARDINO
UNIT/PARCEL IDENTIFIED AS A RENTAL
PROPERTY THROUGH=
,------------------------
CITY BUSINESS X COUNTY PROPERTY
LICENSES LICENSES EXPIRED MANAGEMENT SYSTEM
LICENSES PRIOR TO '961
i
CONDITION A CONDI f lu" N A
CONDITION B CONDITION B
• CONDITION C ■ CONDITION C
-----------------------=--- ---7-----------------
Property with maintenance problems
Properties identified as a rental through the County
Property Management System where the site address differs
from the owner address . This includes those that are
identified due to different street name spellings , e. g .
7th St versus Seventh St .
A=STANDARD: No obvious Code violations. Unit is in good to
excellent condition and is not in need of repairs or
improvements.
B=DETERIORATING: Substandard condition. One or more
conditions may exist , but the unit could be rehabilitated
With substantial dollars.
C=DILAPIDATED : Substandard condition. Several conditions
exist and the unit Is no longer able to be economically
rehabilitated, is structurally unsafe or unsound, and has
no further useful life and should be demolished.
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LEGEND: HOUSING STATISTICS
A 362 = 74% I B MAINTENANCE 76 = 16%
B 126 = 26% C MAINTENANCE 1
C 1 HUD HOUSING 20
TOTAL 4'a
NEIGHBORHOOD IMPROVEMENT ZONE - 1
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LEGEND: HOUSING STATISTICS CITY OF SAN
A 305
B 23
-------------------------
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TOTAL 328
B MAINTENANCE 12 ry,
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