HomeMy WebLinkAboutReso 1993-17221 RESOLUTION NO. 17221
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AMENDING THE CITY'S HOME PROGRAM DESCRIPTION TO
REALLOCATE FUNDS FOR ACQUISITION AND REHABILITATION OF
SUBSIDIZED RENTAL PROPERTY
WHEREAS, the City Council has previously adopted a Comprehensive Affordable
Housing Strategy (CHAS), which includes the goals of increasing affordable home
rental housing opportunities for lower-income households, including housing for
homeless families; and,
WHEREAS, the Regional Task Force on the Homeless estimates that each night
in Chula Vista there are 300-500 homeless people, the majority of whom are family
members; and,
WHEREAS, the City of Chula Vista has received $750,000 of HOME federal
housing funds for 1992-93; and,
WHEREAS, in order to expend the HOME funds on acquisition of housing for
homeless families or rental to lower-income households, HUD requires the City to
amend its HOME Program Description to revise the estimated use of funds for
eligible housing activities.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby adopt the amended HOME Program Description, a copy of which is
attached hereto.
Presented by ~ ~orm~
~ ' t irector City Attorney
Resolution No. 17221
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CITY OF CHULA VISTA
HOME PROGRAM DESCRIPTION
1992-93
(Proposed Amendment)
Introduction
The HOME Investment Partnership Program (HOME Program) is a new federal housing program which
allocates funds by formula directly to state and local governments to promote affordable housing. HOME
funds may be used to provide affordable rental housing and home ownership through new construction,
acquisition, rehabilitation, and tenant-based rental assistance. Participating jurisdictions are able to provide
this assistance to both for-profit and non-profit housing developers or directly to qualified homebuyers or
renters. The assistance may take the form of grants, loans, advances, equity investments, and interest
subsidies.
The City of Chula Vista has submitted a Comprehensive Housing Affordability Strategy (CHAS) to the U.S.
Dept. of Housing and Urban Development (HUD). This document was approved by HUD and they officially
declared the City a participating jurisdiction in the HOME program on July 20, 1992.
Amount and Use of Fun&
The City will receive $748,000 of HOME funds from HUD and $2,000 of HOME funds from the State for the
City's 1992-93 HOME program. The City plans to utilize these funds for the following types of activities:
Estimated Use of Funds
Total HOME $ Rental $ Owner $
New Construction 0 0 0
Substantial Rehab $610,146 $610,146 0
Other Rehab 0 0 0
Acquisition $139,854 $139,854 0
Tenant Assistance 0 0 0
The New Construction funds can be used to assist a project by a for-profit or non-profit developer who is
building home ownership units for households earning 80% or less of the area median income.
The Acquisition-Rental funds can be used to fund acquisition of existing units for households earning less
than 60% of median income, including shore-term transitional housing for homeless families.
Community Housing Develooment Organizations (CHDO)
The City of Chula Vista will collaborate with non-profit organizations in the development, acquisition,
preservation, and rehabilitation of affordable housing. The following policy is part of the City's recently
adopted Housing Element for 1991~96:
"The City supports and encourages usage of a broad spectrum of approaches to produce
lower-income affordabillty in rental housing including: (a) utilization of available Federal, State and
Resolution No. 17221
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county programs and funding; (b) participation of non-profit development corporations either
individually or in parmership with the private developers...'
The City will provide a minimum of 15 percent ($112,500) of its HOME allocation to qualified CHDOs for
acquisition of rental or homeowner units. The City will provide technical assistance to CHDOs in the
following areas: applying for HOME funds; financing housing development; processing development
projects; and, complying with HOME program regulations. Up to 10 percent of the CHDO set-aside funds
may be used by CHDOs for project-specific assistance as authorized under Section 92.301.
Affirmative Marketin~
The City funds and oversees a comprehensive Fair Housing Program, which is provided under contract by
the Fair Housing Council of San Diego. This program includes outreach, education, counseling, and
assessment. The City will work with the Fair Housing Council to promote fair housing in all affordable
housing projects and activities. The practice of non-discrimination and equal opportunity will be promoted
for all HOME-funded housing projects through the policies and procedures described below:
1. The Fair Housing logo and slogan will be incorporated into all public information and outreach.
2. Development agreements between the City and a developer/owner will specify the owner's responsibility
to promote fair housing when soliciting tenants or homebuyers. The owner will be required to utilize
HUD and/or the City's fair housing brochures, posters, loges, etc.
3. The developer/owners shall be required to plan and implement special community outreach to solicit
participation of persons who might not be reached through mass-media outreach.
4. The developers of new housing will participate in the County's Voluntary Advertising and Marketing
Agreement to promote fair housing in all their promotional activities.
5. In the event the City finds that a developer/owner is not in compliance with these policies, the City will
specify corrective action which must be implemented within 30 days. If this deadline is not met by the
developer/owner, then the City will find the him/her in default of the development agreement.
6. Records will be maintained documenting the affirmative marketing efforts of the City and
developers/owners of HOME-funded projects. The City will assess the progress and effectiveness of the
affirmative marketing program on an annual basis. Modifications to the program will be made as
needed.
MinofitvflWomen Business Outreach Pro,xram
The City of Chula Vista will establish a minority outreach program consistent with 24 CFR 92.350 which
shall be applicable to all affordable housing activities authorized under the HOME program or any other
applicable federal housing law. The minority outreach program will encourage the use of minority and
women-owned business enterprises in connection with HOME-funded activities to the maximum extent
possible.
With regard to the expenditure of HOME funds, the City will:
1. Work with other local jurisdictions in the region to develop a systematic method for identifying and
maintaining an inventory of certified MBE and WBEs, their capabilities, services, supplies and/or
products;
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2. Utilize the local media, electronic and print to market and promote contract and business opportunities
for MBEs and WBEs;
3. Develop informational and documentary materials on contract/subcontract opportunities for MBEs and
WBEs;
4. Develop solicitation and procurement procedures that facilitate opportunities for MBEs and WBEs to
participate as vendors and suppliers of goods and services;
5. Sponsor business opportunity-related meetings, conferences or seminars with minority and women
business organizations;
6. Maintain centralized records with statistical data on the utilization and participation of MBEs and WBE
as contractors/sub-contractors in all HUD-assisted program contracting activities.
The City has previously adopted a Minority and Women Business Enterprise Construction Program for
federally-funded construction projects. This M/WBE policy will be utilized in all HOME-funded construction
contracts.
First-Time Homebuyer Provisions
Any for-sale housing units developed with HOME funds or any units sold to first-time homebuyers who are
assisted by HOME funds will be encumbered with resale restrictions which require that:
a) any subsequent buyer is also low-income (earning 75% or less of median income) and will be the
principal resident of the property
b) financing is such that the subsequent buyer does not pay more than 30% of his/her gross household
income for PITI (principle, interest, taxes, and insurance)
c) the unit remains affordable for a period no less than 15 years for existing housing and no less than 20
years for new housing.
Specific guidelines and deed restrictions for the resale of HOME-assisted property will be established and
submitted to HUD for approval prior to their implementation as required by 92.254(a) (4). These guidelines
will provide the initial owner with a fair return on his/her investment.
The City plans to utilize a "shared appreciation" loan structure. Under the shared appreciation arrangement,
any appreciation realized during the term of home ownership will be shared between the City (which
provided the initial subsidy loan) and the homeowner. The owner's share of appreciation shall be calculated
based on his/her downpayment, principal reduction payments, and the cost of any major improvements
which increased the value of the property.
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PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista,
California, this 17th day of August, 1993, by the following vote:
YES: Councilmembers: Fox, Horton, Moore, Nader
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Rindone
Tim Nader, Mayor
ATTEST:
'~l~ Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 17221 was duly passed, approved,
and adopted by the City Council held on the 17th day of August, 1993.
Executed this 17th day of August, 1993.
Beverly A~ Authelet, City Clerk