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. REO".. OPIUIENT AGENCY-OUEST FOR ~/COUNCIL AcOoN
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Subject: RENTAL REHABiliTATION PROGRAM
STATUS REPORT
. From: GLENDA SAUL
Redevelopment Agency
Date: JUNE 7, 1985
Synopsis of Previous Commission/Council action:
-In July 1984. the Mayor and Common Council authorized Agency staff to apply for
funds in the amount of $112,900 for the Rental Rehabilitation Program.
-In September 1984, the Mayor and Common Council authorized Agency staff to open
a checking account with First Interstate for the Rental Rehabilitation Program.
-In October 1984, the Mayor and Common Council approved the transfer of
administrative responsbilities for the Rental Rehabilitation Program to West Side
Community Development Corporation.
-In Oecember. 1984, the Mayor and Common Council authorized staff to submit a
program application to the U.S. Department of Housing and Urban Development for
second year funding for the Rental Rehabilitation Program.
Recommended motion: (MAYOR AND COMMON COUNC I l)
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Receive and File
~~~
Signature
Contact person:
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
Ward: 1-7
Project : All
Date: June If. 1'385
GI ~NnA SAIII
Supporting date attached:
YES
No adverse Impact on City:
~ncil Notes:
(l-.s-
Agenda Item No.
RE"VELOPMENT AGENCY.~EST FOR COMMISSION/COUNCIL A~
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STAFF REPORT
On June 5, 1985, Ms. Gala Constancio from the U.S. Department of Housing and
Urban Development (HUD) rehabilitation management staff visited the City to
monitor the City's Rental Rehabilitation Program (RRP). During the all day
visit Ms. Constancio met with Agency staff and staff of the West Side
Community Development Corporation (WSCDC), the administering agency for the
Program. At the conclusion of her onsite review, Ms. Constancio met with
Agency staff to discuss her findings.
Following is a summary of Ms. Constancio's findings:
.
The City's Rental Rehabilitation Program is an excellent
one, especially when compared to other entitlement cities
and counties. Presently five (5) loans have closed with
six (6) additional loans in process. The total in RRP
funds committed is approximately $80,000.00, with at least
that much committed from private sources.
.
The City has more than met all affirmative marketing
requirements and has an excellent mix of two (2) and three
(3) bedroom apartments that are being rehabilitated.
.
Inasmuch as the Rental Rehabilitation Program regulations
do not allow cities to offset their administrative expenses
from the grant proceeds, the HUD monitor indicated the
Agency was doing an excellent job of defraying the
Program's administrative costs from the City's CDBG
Administration Account.
Ms. Constancio provided Agency staff a number of recommendations that, if
implemented, would, in her opinion further enhance the City's Program. Those
recommendations are listed below:
. The City should commit the program flowchart regarding the
processing of loan applications to written guidelines to
ensure uniform and consistent application of program rules.
.
The City's loan summary sheet
blocks as follows: Recommended
Date: , Approved by:
Date: .
should
by:
include
signature
.
The City should provide a significant amount of publicity
to the first completed project, in order to spur additional
interest in the Program.
.
When each loan closes and the rehabilitation of affected
units are complete, all security documents, such as deeds
of trust and promissory notes should be transfered from
West Side CDC to the Agency.
.
Presently, a non-refundable loan processing fee of $100.00
is charged to the loan applicant. Ms. Constancio
questioned the purpose of the fee, and indicated she would
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review the regulations to ensure the charging of such fees
is allowable. It is staff's opinion that the loan
processing fee is allowable under the Program Regulations.
The basis of staff's opinion was provided to the HUD
representative.
For further information on the City's Rental Rehabilitation Program, please
contact Mr. Ken Henderson, Manager, Community Development Division of the
Redevelopment Agency at 714/383-5081.
June 1985
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