HomeMy WebLinkAboutR7- Economic Development EC OMIC DEVELOPMENT AGE Y
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: TIMOTHY C. STEINHAUS Subject: RENTAL HOUSING
Agency Administrator CERTIFICATION
PROGRAM
Date: January 3, 1995
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Synonsis of Previous Commission/CounciUCommittee Action(s):
On October 7, 1991, the Community Development Commission approved the refinancing of City Hall
through the issuance Certificates of Participation in the amount of$12,000,000.
On November 21,1994,the Community Development Commission approved the expenditure of$75,000
to the City of San Bernardino for City Hall lease payments.
On December 19, 1994,the Mayor and Common Council approved the concept for the Rental Housing
Certification Program.
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Recommended Motion(s):
(Mayor and Common Council)
MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT TO THE VARIOUS REDEVELOPMENT PROJECT AREAS OF MAKING CERTAIN
LEASE PAYMENTS ON BEHALF OF THE CITY OF SAN BERNARDINO(CITY HALL PROJECT).
(Recommended Motions Continued Next Page)
TIMOTHY C US
Agency Administrator
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Contact Person(s): Timothy C. SteinhausBarbara Lindseth Phone: 5081
Project Area(s): All Ward(s): 11=7
Supporting Data Attached: Staff Report;Resolutions
FUNDING REQUIREMENTS: Amount: $685,400 Source: Tax Increment/20%Set-Aside
Budget Authority: Requested
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Commission/Council Notes:
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TCS:SMM:pc:rental.hsg COMMISSION MEETING AGENDA
Meeting Date: 01/09/1995 —
Agenda Item Number: r T' 7
Recommended Motions Continued
(Community Development Commission)
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT TO THE VARIOUS REDEVELOPMENT PROJECT AREAS OF MAKING CERTAIN
LEASE PAYMENTS ON BEHALF OF THE CITY OF SAN BERNARDINO(CITY HALL PROJECT).
MOTION C: That the Community Development Commission approve the Rental Housing Certification program concept,
and authorize the payment by the Economic Development Agency of $156,000 to the City of
San Bernardino for City Hall lease payments,and approve$529,400 of 20%set-aside monies to be used
for the program,and that the Agency's budget be increased accordingly.
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TCS:SMM:pc:rentaLhsg COMMISSION MEETING AGENDA
Meeting Date: 01/09/1995
Agenda Item Number:_�Z
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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Rental Housing Certification Program
On October 7, 1991, the Community Development Commission approved the refinancing of City Hall
through the issuance of Certificates of Participation in the amount of$12,000,000. These Certificates
were subsequently issued in March 1992, with a maturity date of March 2022, in order to retire the
1972 City Hall bonds as issued by the Civic Center Authority and to raise needed reserve funds for
the City.
All City Hall lease payments in connection with these bonds are to be paid by the City, with the
Agency paying for all fees, including letter of credit fees (the letter of credit will expire on March 7,
1997 unless extended by the bank). Now, in order for the City to be able to fund the Rental Housing
Inspection Program,the City has asked the Agency to make a one-time only payment in the amount
of$156,000 for the City Hall lease. As City Hall is in the Central City Project area, and funds will
be required from other redevelopment project areas to make the $156,000 payment, benefit
resolutions will need to be adopted to allow for the transfer of funds.
On December 19, 1994,the Mayor and Common Council approved the Rental Housing Certification
Program concept which was presented by the City Administrator.
The budget, which was included in the report, estimated that the cost for this program for the first
year would be$685,400. This budget assumed that $529,400 would be funded with 20% set-aside
revenues and that $156,000 would be funded through a general fund offset. Specifically, it was
envisioned that tax increment funds would be utilized to fund $156,000 of the City Hall lease
payment. In turn, general fund monies previously budgeted for the City Hall payments would be
reallocated to fund this portion of the Rental Housing Program budget.
Staff recommends adoption of the form motions.
TIMOTHY C. STE HAUS, Agency Administrator
Economic Development Agency
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TCS:SMM:pc:rental.hsg COMMISSION MEETING AGENDA
Meeting Date: 01/09/1995
Agenda Item Number:
A J.
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
CITY ADMINISTRATOR'S OFFICE
?car?�-,cam
i
JAN
TO: Tim Steinhaus, EDA Agency Administrator CITY OF SAN
ECONOMIC DEVELOPfdiENi AGENCY
FROM: Fred Wilson, Assistant City Administrator
SUBJECT: RENTAL HOUSING INSPECTION PROGRAM BUDGET
DATE: December 22, 1994
COPIES: Shauna Clark, Al Boughey
On December 19, 1994, the Mayor and Common Council approved the Rental Housing
Certification Program concept which was presented by the City Administrator.
The budget, which was included in the report, estimated that the cost for this program for the
first year would be $685,400. This budget assumed that $529,400 would be funded with 20%
set aside revenues and that $156,000 would be funded through a general fund offset.
Specifically, it was envisioned that tax increment funds would be utilized to fund $156,000 of
the City Hall lease payment. In turn, general fund monies previously budgeted for the City Hall
payments would be reallocated to fund this portion of the Rental Housing Program budget.
You had also requested that we identify the amount of monies necessary to fund this program
for the balance of fiscal year 1994-95. Based on our review of the proposed budget and the
anticipated timeline to hire the staff, it is estimated that $205,000 of 20% set-aside funds and
$49,000 o tax increment funds will be needed for the balance of the fiscal year.
RED WILSON
Assistant City Administrator
FW/dm
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RENTAL HOUSING CERTIFICATION PROGRAM
PROPOSED BUDGET USING 20% SET ASIDE FUNDS
PERSONNEL
Full Time Positions (with benefits)
Inspection Supervisor (one-half position) (1) $ 33,000
Sr. Housing Inspection (1) 43,000
Housing Inspector (4) 160,800
Typist Clerk II (1) 23,200
Typist Clerk III (1) 27,200
Subtotal $287,200
Part Time Positions
Student Intern (5) 52,000
Subtotal $ 52,000
MATERIALS, SERVICES AND SUPPLIES
Office Supplies $ 4,000
Small Tools 500
Advertising 500
Due and Subscriptions/Books 1,000
Legal Services 25,000
Training 1,000
Printing 4,000
Computer Support Services 40,000
Postage 4,000
Copy Machine Charges 3,000
Photographic & Recording Supplies 12,000
Garage Charges 7,800
Telephone Charges 6,400
$109,200
EQUIPMENT
Computer Hardware $ 15,000
Furniture 6,000
Vehicles (5) 60,000
$ 81,000
GRAND TOTAL $529,400
AGENDA ITEM #19
ATTACHMENT #2
RENTAL HOUSING CERTIFICATION PROGRAM
PROPOSED BUDGET FUNDED WITH GENERAL FUND OFFSET
Personnel
Rental .,ousing Certification
Specialist....................... $ 57,200
Business License Inspector......... 35,300
Account Clerk I.................... 25,200
$117,700
Material. Services and Supplies
Supplies........................... 2,000
Advertising........................ 3,000
Training........................... 8,000
Printing........................... 2,000
Postage............................ 2,000
Telephone.......................... 4,000
Garage Charges..................... 1.300
22,300
ui ment
Vehicle (1)......... ............. 12,000
Furniture.......................... 4.000
16,000
TOTAL $156,000
1
CITY OF SAN BEr'IARDINO - REQUEST =OR COUNCIL ACTION
From: Shauna Clark Subject: Rental Housing Certification
City Administrator Program
Dept:
Date: December 15 , 1994
Synopsis of Previous Council action:
Motions:
1. That the Rental Housing Certification Program concept be approved;
2. That the budget finalized by City and Economic Development Agency staff for the Rental Housing
Certification Program be approved;
3. That all positions associated with the Rental Housing Certification Program be submitted to the Personnel
Committee and the Mayor and Common Council for approval;
4. That City staff, working with the San Bernardino Valley Association of Realtors and apartment owners,
continue to develop the specifics of the landlord education and certification element of the program(Mesa.
Arizona model) and that this element be submitted to the Mayor and Common Council for final approval;
5. That said ordinance be laid over for final adoption.
Signature
Contact person: Phone:
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount:�g�; 0
Source: (Acct. No.)
Acct. Description) J-'� l� � d/9 _6;,�Tj. �UWQ1,
Finance: ����
Council Notes:
75-0262 Agenda Item No.
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STAFF REPORT
Based on the 1990 census, the City of San Bernardino has 58,804
residential units in the following categories:
# of Units of Total Estimated #
of rentals
Apartment 12 , 789 22% 12 ,789
Duplex/Tri/Quad 5,964 10% 5,964
Condos 1, 907 3% 800
Mobile homes 4 , 431 8% 200
Other 622 1% 622
Single family: 33 , 091 56% 101000*
Grand totals 58,804 30,375 52%
*Conservative estimate
It is estimated that over 50% of all residential units in San
Bernardino are occupied by tenants. The number of rental units has
been increasing steadily and with that has come an increase in
degenerated properties. Police professionals have long emphasized
that blighting conditions are a catalyst for crime. By plotting
crime statistics on a GIS map, staff has been able to show a direct
correlation between increasing calls for service (especially
violent crimes) and rental units.
Proposals for reduction of blight through inspection of rental
units have come before the Mayor and Council several times over the
last six months. To date, we have failed to reach consensus due to
a variety of concerns from Council Members and the public. At your
last meeting this matter was continued to look at alternative
funding sources. Administration has met with Tim Steinhaus, EDA
Agency Administrator, and has discussed the following options on
the use of EDA funds.
Option 1 - 20% set aside
The first option is 20% set aside (EDA housing funds) . This
funding carries many restrictions in that we may have to
create a separate division to avoid the supplantation of city
programs and that the goal of the 20% set aside is
rehabilitation which makes abatement more difficult.
option 2 - Tax increment money as offset to General Fund
The second potential source of EDA monies is tax increment
also known as 80% money. The 80% money would either be
provided as an offset to the general fund or as a direct
funding option. Our preference is an offset to the general
fund because of flexibility. EDA would pick up the city hall
debt service and thereby free up general fund money. Use of
80% money as direct funding would present restrictions quite
similar to those of the 20% set aside.
Mayor and Common Council
Rental Certification Program
December 15, 1994 Page 2
When the Rto Vista code enforcement proposal came before the
Council, some members expressed reluctance to use RDA funds to pay
the debt service on City Hall. With that in mind, Fred Wilson,
Assistant City Administrator, met with Tim Sabo, Agency general
counsel, and Tim Steinhaus, Agency Administrator. They have worked
out a proposal where the housing inspection part is paid for with
20% set aside monies, and the Police Department portion
(administration of the Landlord Certification (Mesa) program) , as
well as enhanced business registration support, will be paid with
tax increment money as an offset to the general fund.
The following attachments are included:
1. Outline of Rental Certification Program
2 . Budget
3 . Explanation of Mesa Program
4. Ordinance 6 p c� a lki d ied)
The recommended motions are on the first page of this report.
OUTLINE
City of San Bernardino
Rental Housing Certification Program
After much debate on the previously proposed rental housing
inspection program, staff is recommending a "Rental Housing
Certification Program" which incorporates the inspection element so
critical to addressing blight issues but, provides a method for
exempting properties from inspection if the landlord and/or
apartment manager successfully completes a landlord certification
program administered by the Police Department (Mesa Program) .
All costs for inspection will be charged to the EDA housing
fund or to the general fund which will be reimbursed by an EDA
offset; there will be no additional taxes or fees charged to
property owners unless a property is so poorly maintained that
rehabilitation must be initiated. Owners of property in need of
rehabilitation will be apprised of EDA housing monies available for
that purpose.
To address concerns of two council members about full
compliance with the business registration ordinance, the City Clerk
has begun a study of collection methods and is making changes.
The Inspections
I. The inspection element of this program will be assigned to
the Department of Planning and Building Services (or a separate
division created for this program) and in order to reduce staff
costs, will be performed in two phases.
A. The first inspection phase will involve temporary
employees and/or interns who will use data provided by the
City Clerk to create an inventory of rental properties,
evaluating visual blight and structural problems that can be
seen from the outside of the property.
B. The second phase of inspections will be conducted by
Housing Inspectors who will inspect the inside of units which
are deficient as noted in the first inspection phase and who
will pursue any abatement action necessary. Inspections will
be prioritized and scheduled according to factors such as
blighting influence on surrounding properties, crime
statistics, and apparent health and safety violations.
1. Where properties qualify for EDA programs and are in
need of repair, Housing Inspectors will introduce EDA's
low interest loans and grant programs to the property
owners to reduce the owner's cost of coming into
compliance with state and city building and property
maintenance requirements.
AGENDA ITEM #19
ATTACHMENT #1
OUTLINE
Rental Housing Certification Program
Page - 2 -
2:- Notifications and other clerical duties associated
with inspections will be performed by clerical staff
funded through this program.
Landlord Education and Certification (Mesa) Program
II. It is staff' s position that voluntary compliance has more
long term success than strict enforcement methods, especially with
those property owners who are maintaining their properties
according to city standards and are making efforts to keep their
complexes crime free. With that in mind, we are recommending an
exemption from the inspection program for those who have
successfully completed a landlord education and certification
program (Mesa Program)
A. All concepts and costs associated with the landlord
certification program will be taken to the Board of Realtors
and Apartment Owner's Association for input and brought before
the Mayor and Council for review and approval as soon as
possible.
B. The program is a three level program involving
landlord education, tenant education and a property
maintenance evaluation which includes an environmental safety
review of the units. Certain aspects of the landlord
certification program will involve changes in State law which
are presently being proposed by this office.
C. The landlord certification program will be
administered by the San Bernardino Police Department or a
separate division created for this program.
The Costs
III. The preliminary cost estimate for this program is
$685, 400. For at least twelve months, all costs for the Rental
Housing Certification Program will be paid from EDA housing funds
or through an offset to the general fund. Costs include the hiring
of staff necessary for execution of the program, purchase or lease
of vehicles, supplies, and may include the cost of updating
software. Unless the city encounters significant code violations
and must require rehabilitation, no costs above the present
business registration fee will be assessed to property owners or
tenants.
Working with EDA, staff will come back with a budget for the
program along with job descriptions. All new positions will be
forwarded to the Personnel Committee for review and approval. The
program budget will be reviewed and approved by the Mayor and
Common Council .
OUTLINE
Rental Housing Certification Program
Page - 3 -
The Buginess Registrations
IV. The Clerk's Office will focus on reducing the number of
unlicensed single family and multiple family residences for the
purposes of equity, increasing revenue and providing an accurate
database of rental property locations.
A. MIS will work with the Clerk's Office to develop the
most efficient methods for targeting and licensing rental
properties
B. The Clerk' s Office will provide the Mayor and Council
with base line data on the number and types of rental units
licensed and provide monthly updates on business registrations
Evaluation of program successes
V. Rental Housing Certification Program will be a pilot
program which will be in effect no longer than twelve months after
full implementation. (Twelve months from the time staff is on
board) . No later than nine months after full implementation, all
elements of this -program will be brought back to the Mayor and
Council for review and a decision on the effectiveness of the
program. From the date of approval, the Mayor and Council will
receive quarterly reports from each department involved in the
program.
If they wish, the Board of Realtors and Apartment Owners
Association will be placed on the mailing list to also receive
quarterly updates.
RENTAL HOUSING CERTIFICATION PROGRAM
PROPOSED BUDGET USING 20% SET ASIDE FUNDS
PERSONNEL
Full Time Positions (with benefits)
Inspection Supervisor (one-half position) (1) $ 33,000
Sr. Housing Inspection (1) 43,000
Housing Inspector (4) 160,800
Typist Clerk II (1) 23,200
Typist Clerk III (1) 27.200
Subtotal $287,200
Part Time Positions
Student Intern (5) 52.000
Subtotal $ 52,000
MATERIALS. SERVICES AND SUPPLIES
Office Supplies $ 4,000
Small Tools 500
Advertising 500
Due and Subscriptions/Books 1,000
Legal Services 25,000
Training 1,000
Printing 4,000
Computer Support Services 40,000
Postage 4,000
Copy Machine Charges 3,000
Photographic & Recording Supplies 12,000
Garage Charges 7,800
Telephone Charges 6.400
$109,200
EQUIPMENT
Computer Hardware $ 15,000
Furniture 6,000
Vehicles (5) 60.000
$ 81,000
GRAND TOTAL $529,400
AGENDA ITEM #19
ATTACHMENT #2
RENTAL HOUSING CERTIFICATION PROGRAM
PROPOSED BUDGET FUNDED WITH GENERAL FUND OFFSET
Personnel
Rental Housing Certification
Specialist....................... $ 57,200
Business License Inspector......... 35,300
Account Clerk I.................... 25.200
$117,700
Material. Services and Supplies
Supplies........................... 2,000
Advertising........................ 3,000
Training........................... 8,000
Printing........................... 2,000
Postage............................ 2,000
Telephone.......................... 4,000
Garage Charges..................... 1.300
22,300
ui ment
Vehicle (1)......... ............. 12,000
Furniture.......................... 4.000
16.000
TOTAL $156,000
1
Mesa, Arizona's Program
The design of Mesa's program is a unique solution in that
it involves a certified training and educational program.
The program involves a three level process whereby
property owners and tenants are trained in areas relating
to the owning/renting of rental properties. In order to
graduate to a higher level of the program (i.e. level two
or three) , all managers must be certified at the lower
levels first.
Level one consists of property manager training where
topics include creating, explaining and enforcing rental
agreements; identifying illegal activity, and working
with the police. special emphasis is also given to
training managers on the applicant screening and eviction
processes. In addition, managers are explained of the
drug-free lease addendum which is to be signed by
tenants, agreeing that they will not engage in any type
of criminal activity. Prior to advancing to the second
level of training, property manager must also agree to an
inspection of their property.
Level two consists of crime prevention through
environmental design. During this phase, property
managers gain the knowledge they need to protect their
properties against crime which include natural
surveillance, access control, territoriality and activity
reports. When the property manager believes that their
property meets the requirements of the second phase, a
crime prevention specialist conducts an on-site
inspection of the area.
Level three consists of training for residents. In this
session, police crime prevention specialists address
several topics such as an explanation of the drug free
lease addendum as it pertains to the crime-free
commitment as well as general safety and crime prevention
techniques for automobile theft, sexual assault and
burglary. This level is designed to train tenants to be
the eyes and ears of the apartment community.
Through this three level program, the City of Mesa has
realized that crime can be curtailed in targeted areas
when residents accept responsibility for their own
environment. Mesa's program demonstrates that even
renters can feel pride in ownership towards their
communities.
AGENDA ITEM #19
ATTACHMENT #3