HomeMy WebLinkAboutRS03-Redevelopment Agency
. "REeVELOPMENT AGENCV-$UEST FOR .MMISSION/COUNCIL A.ON
. From: GLENDA SAUL
.: Redevelopment Agency
Date: APRIL 2. 1986
Subject: MOBILEHOME PARK ASSISTANCE PROGRAM
Synopsis of Previous Commission/Council action:
-On May 20. 1985. the Mayor and Common Council considered the adoption in.
concept. of a Memorandum of Understanding (MOU) and referred the item to the
Council's Mobilehome Park Comittee.
-On September 19. 1985. the Mayor and Common Council referred this item to the
Redevelopment Committee.
Recommended motion:
(MAYOR AND COMMON COUNCIL)
~ Move to receive and file the attached staff report.
~~.$~
{ Signature
Contact person: GLENDA SAUL/KEN HENDERSON
Phone: 383-5081
Supporting data attached:
YES/STAFF REPORT
Ward:
1-7
FUNDING REQUIREMENTS:
Amount: $
N/A
Project: ALL
No adverse Impact on City:
Date:
Aoril 7. 19B6
_ncil Notes:
Agenda Item No. R 5 - 3
'CI" OF SAN BERNARDI. - REQUE" FOR COUNCIL AC"N
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75-0264
STAFF REPORT
Staff evaluated the possibility of the City applying to the state for the
Mobllehome Assistance Program (MAP). Following is an outline of the.
eligibility requirements and an assessment by staff relating to the
feasibility of submitting an application to the state for assistance.
Application Period
April 18, 1986, by 5:00 p.m.
Eligibility - Applicant
· Made jointly by a mobilehome park resident organization and local
entity.
. Resident organization must:
a) have not less than 2/3 of households as members;
b) be a legally recognized entity (incorporated);
c) be able to enter into a contract; and
d) be capable of suing or being sued.
Eligible Borrowers
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Individual or household residing in a mobilehome park.
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Income not greater than eighty percent (80%) of median income.
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Must reside in park or principal residence.
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Must demonstrate monthly housing costs would exceed thirty percent
(30%) of gross monthly income.
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Residents must request reservations for loan funds at the time the
application is submitted.
Eligible Projects
. Mobilehome park has converted or will be converted to resident
ownership.
. At least one (1) low income residents resides in the park.
. Upon conversion, the park meets minimum standards of the Mobilehome
Parks Act.
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Nature of Assistance
A. Conversion Loans: Provide interim financing to resident
organization for up to fifty percent (50%) of conversion costs.
Eligible conversion costs are as follows:
1) Acquisition of the park.
2) Loan origination, appraisal, inspection and other related
financial costs.
3) Title and escrow fees.
4) Legal and other professional fees.
5) Relocation costs.
6) Park rehabilitation cost as authorized in regulations.
Payment is required upon recordation of permanent financing and must
be made within three (3) years.
B. Blanket Loans: provide long term financing for up to fifty percent
(50%) of conversion costs attributable to spaces occupied by low
income residents. Eligible costs are as follows:
1) To repay conversion loans.
2) Establish operating reserves.
3) Enable low income residents to obtain individual interests and
remain in the mobilehome park.
4) Must direct the benefits of the loans to low income residents.
5) Loans will have monthly payments amortized over thirty (30)
years.
C. Individual Loans - Provide long term financing to low-income
residents for up to 50% of acquisition costs of a lot or individual
interest in a mobilehome park.
. Borrowers shall have no less than ten percent (10%) equity in
their individual interests.
. Monthly payments amortized over thirty (30) years.
Funding
Maximum amount available for one (1) mobilehome park: $500,000.
Project Evaluation and Ranking
a. Housing affordability for low-income residents.
b. The likelihood of involuntary displacement.
c. The speed with which the project can be converted.
d. The technical capacity of the applicants.
e. The security of tenure for residents.
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The extent to which the project complements the local program
to preserve or increase the supply of low and moderate income
housing and mobilehome park spaces.
The degree of resident support.
The projects technical and financial feasibility.
The efficiency in the use of program funds to assist the
maximum number of low income residents.
The extent to which the project has the lower possible costs
given program requirements and local market conditions.
The leveraging of funds and other assistance.
The allocation of funds throughout the state.
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The application for the second phase of funding is almost identical to the
initial application. The application requires detailed financial analysis and
information pertaining to the acquisition loan. In other words, a detailed
project pro forma.
As indicated in the eligibility outline, the tenant organization must be
incorporated and currently negotiating the conversion to tenant ownership.
On researching whether or not the City currently has an organization such as
this, staff contacted Betty Davidow of Inland Mediation who referred staff to
GSMOL, the central organization representing mobilehome park tenants in San
Bernardino.
Staff spoke with Marie Malone of GSMOL who is the conversion specialist. She
does not know of a park in San Bernardino where the tenants are attempting a
conversion. She said the main focus in the City has been on rent control and
that the majority of tenant organizations were either social clubs or rent
control advocates.
It appears that the City does not have a tenant organization that is organized
for the purpose of conversion of a tenant-owned park which would be eligible
for this state assistance program.
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