HomeMy WebLinkAboutR07-Economic Development Agency
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DBVBLOPIIDr DBPunu..J: OF TBB
CITY OF SAlt RtnI....nIlIO
IIEOUEST FOR COIMlSSIOIf/COUllCIL ACTIOIf
From:
KENNETH J. HENDERSON
Executive Director
Subject:
VBRDDmllr-AUA IlIFRASTRlTC-
TURE FIlWtCIIIG
ASSISTABCE GDIDELIRBS
Date:
August 29, 1991
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SvnoDsi. of Previous C--t...ionlCcnmcil/C--ittee Action(s}:
On August 22, 1991, the Redevelopment Committee reviewed the attached
guidelines and recommended approval to the Community Development
Commission of same.
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RecnmM~~ed Ration(s):
(C..-....itv DeveloDment C--tssion)
That the Community Development Commission approve the attached
guidelines for the Verdemont-Area Infrastructure Financing Assistance
Guidelines.
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Contact Person(s):
Ken Henderson
Phone:
5081
Project Area(s):
Ward(s):
Supporting Data.Attached:
Staff ReDort: Resolution: Aareement
FUNDING REQUIREMENTS:
Amount: $
Source:
Budget Authority:
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Commission/Council Botes:
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KJH:E1F:lab:0127E
COIlUSSIOK AGDDA
Meeting Date: 09/03/1991
Agenda Item Ko:
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DBVILOPIIDr DBPh.umLu;
STAFF REPORT
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Verdeaon~-Are. Infr..trueture Pfftaftefft. Plan Coldelinea
On July 19, 1991 the Mayor and Common Council and Community Development
Commission approved in concept the Verdemont-Area Infrastructure
Financing Plan ($2.4 million dollars) and directed staff to prepare the
appropriate mutual benefit resolutions. These actions were formalized
by the Mayor and Common Council and Community Development Commission on
August 19, 1991, when $2.4 million dollars in tax allocation bond
proceeds from the State College Redevelopment Project area were
allocated to finance certain public improvements in the Verdemont Area.
The Mayor and Common Council and Community Development Commission also
directed that guidelines be prepared to assist low income households
which could not afford the annual assessment necessary to retire the
indebtedness. These guidelines are set forth below.
Development Department staff have received specific requirements for
the use of tax allocation bond proceeds when used as assistance to
low-to-moderate income households to offset costs associated with the
subject assessments. A program designed specifically for the
implementation of the Verdemont-Area Infrastructure Financing Plan is
recommended, as follows:
1. The Department of Public Works to act as lead agency responsible
for enforcing eligibility criteria and certifying income
verification. This will require the Department of Public Works to
accept applications for financial assistance not to exceed $50,000
per household. It is not anticipated that a significant number of
households will qualify for financial assistance. In the event
this assumption is not borne out by actual events, Development
Department staff will provide additional ataff and technical
assistance.
2. Financial assistance to be provided by the Development Department
upon submission of documentation and appropriate certification by
the Pu~lic Works Department. (This program would operate in much
the same fashion as the City-Wide Relocation Assistance Program
administered by the City Attorney's Office.)
3. Criteria for loan issuance to low-to-moderate income households
within the affected area are as follows:
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KJH:E1F:1ab:0127E
COIIIISSI01l AGDDA
KeetiDa Date: 09/03/1991
Aaenda It_ 110:
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DBVELOPIIDr DBP.~ IIBDBVELOPIIDr COIKln'BB 0
STAFF RBPORT coiiTia...
Vercl_t-Area Guidelinea
AqU8t 29, 1991
Page -2-
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a) Income eligibility not to exceed one-hundred percent (100X)
of the median income per household, as defined by State
Department of Housing and Community Development annual
income limi tB.
b) Mortasge payments, plus the annual assessment, must exceed
thirty percent (30X) of the aross household income or forty
percent (40X) of the net household income.
c) The financial assistance provided by the Department will
accrue simple interest at a rate of eight percent (8X) per
annum.
d) A lien will be placed on the property. Payments on the lien
can be deferred up to a maximum of five (5) years, with the
entire loan due and payable in ten (10) years.
e) On a case-by-case basis, the repayment of the assessment loan
can be converted to a arant under the following provisions:
-Property over encumbered and no equity exists in same.
-If elderly and on fixed income, loan can be either a grant
or deferred until transfer of title.
-In hardShip cases, the loan can be considered aa a grant or
deferred loan until transfer of title.
On August 22, 1991, the Redevelopment Committee considered this matter
and recommended to the Community Development Commission approval of the
attached auidelines.
Based upon the foreaoing, staff recommends adoption of the form motion.
~~~. .....,... ....,..,
Development Departllent
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KJH:E1F:1ab:0127E
COIKlSSIO. AGIIDA
Reetina Date: 09/03/1991
Aaenda It. .0:
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