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HomeMy WebLinkAboutReso 1985-12264 RESOLUTION NO. 12264 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE HOUSING ASSISTANCE PLAN FOR 1985-1988 AND AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT THE NECESSARY DOCUMENTS TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City of Chula Vista desires to assist lower income Chula Vista households with their housing needs; and, WHEREAS, the City has applied to the U. S. Department of Housing and Urban Development for funding under the Community Development Block Grant Program; and, WHEREAS, a component of the Community Development Block Grant funding application is an approved housing assistance plan, which identifies needs and sets goals for lower income housing assistance; and, WHEREAS, a Housing Assistance Plan has been compiled for the period from October 1, 1985, to September 30, 1988. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Housing Assistance Plan for the period from October 1, 1985, to September 30, 1988, attached hereto as Exhibit "A" as though fully set forth herein. BE IT FURTHER RESOLVED that the City Manager is authorized to sign said Housing Assistance Plan on behalf of the City and to submit said Housing Assistance Plan to the U. S. Department of Housing and Urban Development. BE IT FURTHER RESOLVED that the City Manager is authorized to make minor adjustments to the Housing Assistance Plan as may be necessary as a result of review of said Housing Assistance Plan by the U. S. Department of Housing and Urban Development. Presented by Approved as to form by Paul G. DesroCh~~'~--~ ~ ?homas d.)4a~on~ 'City Attorney Community Development Director ~ ~ !.?, WPC 1268X ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 26th day of November 19 85 , by the following vote, to-wit: AYES: C0uncilmembers COX, Moore, Scott, McCandliss NAYES: Councilmembers None ABSTAIN: C0unci]members None Malcolm ABSENT: Council members ///- City Clerk ~' STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CiTY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION NO. 12264 ,and that the same has not been amended or repealed. 3ATED. (seal) City Clerk ]C-660 HOUSING ASSISTANCE PLAN CITY OF CHULA VISTA 1985-1988 -'- ' EXHIBITA HOUSING ASSISTANCE PLAN CITY OF CHULA VISTA 198§-1988 The Housing Assistance Plan (HAP) of the City of Chula Vista is a documentation of the City's assessment of lower income housing needs within its jurisdiction and a statement of the steps the City intends to take to redress those needs. It is a three-year plan, covering the period from October l, 1985 to September 30, 1988. The HAP is submitted to the U. S. Department of Housing and Urban Development (HUD) as a component of the City of Chula Vista's application for funding under the Con~nunity Development Block Grant {CDBG) program. The HAP contains five elements: a survey of housing conditions in Chula Vista; an assessment of housing assistance needs created by those conditions; a statement of three-year goals to redress the identified needs; an annual goal statement; and an identification of appropriate general locations for publicly-assisted new construction or substantial rehabilitation. Accompanying these elements are narrative elaborations and data sheets on the methodology used to assess conditions and needs. Much of the data on conditions and needs was compiled for Chula Vista by the San Diego Association of Governments (SANDAGJ__under their Local Technical Assistance Program. -2- mama___, ~ Form ~q:lproYecr U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 1. NAME OF COMMUNiT~MB No. ~-~63 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Chula Vista ~,~ ..... HOUSING A~ISTANCE PLAN ~ 2. GRANT NUMEER ~: September 1985 To: September 1988 HUD APPROVAL ~nt ($i;na~m of Au~oriz~ Officialj ~ (Dam) ,_ STANDARD UNITS SUBSTANDARD UNITS ~NURE SUBSTANDARD UNITS SUITABLE FOR REHA8 ~PE OCCUPIED VACANT OCCUPIED VACANT OCCUPIED UNITS UNITS UNITS UNITS UNITS VACANT A B Total L~r In~e UNITS ~ner C D E F G 19 721 225 18 TABLE II - RENTAL SUBSIDY NEEDS OF LOWER INcoME HOUSEHOLDS ELDERLy ~ALL FAMILY ~RGE F TOTAL H J K Inmme ETR S 99 199 4~9 116 48~ 47 0 1 0 Per~m PART II - THREE YEAR . GOAL ~ TABLE I - UNITS TO BE A~ISTED (UNITS EXPECTED TO ASSIST LOWER INCOME HOUSEHOLDS) - ' ..... ~ ~ ...... ~uU~AL REVIEW~ [~ juri~d/cr/on. PART III - GENERAL LOCATIONs map/d~t/fy[~ the ~ral I~tioes of pro~ a=~ hou~ . (24 CFR 570.3~J HOUSING ASSISTANCE PLAN - HUD Form ?091.1 -3- NARRATIVE TO PART l, TABLE l: HOUSING STOCK CONDITIONS -4- HOUSING STOCK CONDITIONS, PART I, TABLE I / ~'~ ~i? Part I, Table I, was prepared by SANDAG through its Local Technical Assistance Program. Numbers entered in the form were derived from census data provided by HUD. All the background informatrion and calculations are provided in the methodology which is on file in the Community Development Department of the City of Chula Vista. 1. Definitions: Substandard units, as dJfined by the City, means those units whic~ fall to meet Chula Vista building/housing codes. Those codes meet or exceed the Housing Quality Standards under 24 CFR 882.109. Substandard units indentified in the 1980 census were those units lacking complete plumbing facilities, which means the unit contains (1) complete plumbing facilities which are shared with another household, (2) some, but not all plumbing facilities, or (3) no plumbing facilities. Occupied units housing more than 1.O1 persons per room were considered substandard, as well as owner-occupied units built before 1940 and valued at less than $35,000. SANDAG calculated the missing value factor for renter occupied units. Substandard units suitable for rehabilitation, as defined by the City, means those substandard units which: a. are structurally sound, b. would have economic value after rehabilitation investment, and c. after rehabilitation would meet at minimum the Section 8 Housing Quality Standards and the local/building codes. Since the lg80 census did not provide this information, percentages ~rem the 1975 Special Census were applied to the substandard total from the lg80 census. Of the units identified as deteriorating, 95.8% were considered suitable for rehabilitation. This proportion is consistent with the City's knowledge and experience of housing conditions, based upon the operation of its housing rehabilitation program. 2. Displacement: It is anticipated that during the three year period of the Housing Assistance Plan, 1 lower income household will require rental assistance as a result of redevelopment activity. -5- It should be noted that the mobile home residents in Chula Vista are somewhat sheltered from displacement by Exclusively Mobile Home Park zoning and by an ordinance requiring relocation assistance by a park owner discontinuing the operation of a park. 3. Expected to Reside: The Expected to Reside (ETR) total for Chula Vista is 646 individuals. This projection was calculated by SANDAG using their bi-annual Regional Growth Forecasts,-which forecast population,' housing, and employment growth for the San Diego region and SANDAG's "fair share" allocation to Chula Vista of lower income housing responsibility from the SANDAG Area Wide Housing Opportunity Plan (.042). The ETR total is based on all lower income expected-to-reside as being renters. 4. Lower Income Minority Households: The 1980 census indicates a total minority population in Chula Vista of 31.9 percent. The three largest minority groups are: Spanish/Hispanic at 23.4 percent, Asian at 6 percent, and Black at 1.9 percent. The following chart indicates the numbers of lower income minority households in Chula Vista living in substandard housing. This data was extrapolated by SANDAG by applying 1975 Special Census percentages to the total households in the substandard housing calculation. LOWER INCOME MINORITY HOUSEHOLDS IN SUBSTANDARD HOUSING American Black Hispanic Asian Native Total Owners lB 185 49 12 264 Renters 35 351 92 22 501J It can be seen, in comparing the owner and renter totals above with lines 6c and 7c of Form 7091.1, that minority households occupy 35 percent of Chula Vista's substandard owner units and 38 percent of Chula Vista's substandard renter units. The chart below indicates those low income minority households overpaying for housing, by household size: LOWER INCOME MINORITY HOUSEHOLDS PAYING IN EXCESS OF 30% OF INCOME FOR HOUSING AND IN NEED OF RENTAL SUBSIDIES Ameri can B1 ack Hi spanic Asi an Native E1 derly 35 148 68 10 Small Family 98 424 193 29 Large Family 12 53 24 4 Total 145 625 285 43 -6- Disabled Households: The California State Department of Housing and Community Development has estimated the existence in the San Diego Region of 17,976 disabled households. Chula Vista's total population is 4.3% of · the region's total population. Assuming a proportionality between total population and disabled households, it could be estimated that Chula ' Vista's disabled household population would be 773, or 4.3% of the regional total. No 1980 census data exists cross-tabulating disability with income or household size or household type. However, it is a reasonable assumption that a substantial portion of disabled households would fall within Section 8 income limits, especially those with work and transportation disabilities. Additionally, it could be assumed that a substantial number of those lower income disabled households would be in need of rental subsidy. Their housing problems are compounded by design and location requirements which reduce unit supply and increase unit cost. Using 1980 Census regional data on work and transportation disability, and limited statistical information from the Community Service Center for the Disabled, SANDAG has calculated the percentage distribution of disabled households over household types. Below is a chart showing those percentages applied to the estimate of "in need" disabled households in Chula Vista. LOW INCOME DISABLED HOUSEHOLDS IN CHULA VISTA NEEDING RENTAL ASSISTANCE El~er]~ Small Family Large Family Total Percentage 32.3 53.6 12.1 lO0 Households 454 294 25 773 Non-elderly, single, disabled persons are included with elderly low-income households in the HAP Needs Section, Table II. 6. Single Parent Households: Single parent households suffer special housing needs as a result of a combination of factors: they tend to be lower income; they are often minority; they have difficulty finding rental units accepting children regardless of recent legislation. According to the 1980 Census data, single-mother families comprise 10.6% of all the region's families. But they form 55.4% of all below poverty families. An additional revealing statistic is that 95.2% of all families receiving Aid to Families wi th Dependent Children from the County Social Services Department are female-headed. It can be assumed then, that a significant majority of single-mother households are in need of rental assistance. Single father households comprise 4.8% of the County's Aid to Families with Oependent Children roles, their economic disadvantages appearing to be less great. -7- Minority households have a substantially higher proportion of single-family households than non-minority households. Black households make up 2.7% of all Chula Vista households, but they make up 4.1% of single-parent households. Hispanics make up 13.7% of all Chula Vista households, and 22.5% of single-parent households. The minority single-parent households may encounter additional obstacles to adequate housing as a result of racial discrimination. Finally, single-parent households, occupying principally the rental tenure type as a result of low income status, encounter housing impediments as a result of discrimination against children in rental units. In spite of recent legislation against such discrimination, the perception is that it is still widespread. Both single-mother and single-father households face this dilemma. 8 NARRATIVE TO PART II: THREE-YEAR GOAL -9- NARRATIVE TO PART II: THREE-YEAR GOAL /f~ ~ / Implementation Actions: The City of Chula Vista will pursue numerous efforts to achieve the three-year goals articulated in the HAP. The City's efforts will include new construction assistance, rehabilitation of existing single-family and multi-family units, enhanced utilization of existing stock, and enabling zoning and regulation. The City will look to HUD for ~inancial assistance, as well as to the City's local resources. Housing Rehabilitation: The Community Housing Improvement Program (CHIP) will use leverage CDBG funds to accomplish the rehabilitation of 120 owner occupied units, both single family homes and mobile homes and 136 multi-family rental units. Under an agreement with a local lending institution, low interest loans, deferred loans, and grants will be used to correct code violations and to make general property improvements. In most cases, rehabilitated units will be substandard units brought to standard condition. Some mobile homes unsuitable for rehabilitation may be replaced with loans granted through a local non-profit organization. Rehabilitated multi-family units will be maintained as affordable units for lower income households through rent restriction agreements. Tenant income will be verified and annually monitored to assure compliance with the $1% benefit regulation. Approximately 480 units belonging to lower income homeowners will receive home repair and improvements such as weatherization, which will not necessarily result in standard condition. These improvements will be provided by the MAAC project, a non-profit community-based social service agency that receives City, County, State and Federal grants to provide home improvement services to low income, usually owner, households. Rental Assistance: The City will continue to participate through the Housing Authority of the County of San Diego in the Section 8 Existing program. The City anticipates the allocation by HUD and the Housing Authority of 200 much-needed additional units of Section 8 Existing housing assistance during the three year period. Additionally, the City anticipates the allocation by HUD of 45 certificates/vouchers under the Rental Rehabilitation Program. New Construction: The City will request that the Housing Authority apply to HUD for any available additional Low Income Public Housing (LIPH) units with the anticipation that 90 units could be obtained over the three-year period. The City will consider assisting resulting Public Housing projects through site acquisition efforts, land cost right-down, and other financial assistance, as well as development regulation exceptions. The City will encourage non-profit housing developers to apply for any available Section 202/8 units in this region. The City is anticipating 137 units of such housing be awarded in our jurisdiction. Again, the City will consider assisting with the same efforts indicated above for LIPH. -lO- Low Income Housing Fund: The Redevelopment Agency of the City of Chula Vista ,is required by State law to set aside 20% of its excess tax increment funds in a Low Income Housing Fund. The resultant funds can be used to assist in many facets of housing development for households at or below 120% of median income. The Redevelopment Agency has adopted an ordinance finding the appropriateness of utilizing the funds anywhere in the City if that use furthers the goals of the City's Housing Assistance Plan, which constitutes the redevelopment project area's Replacement Housing Plan. As of ~eptember 1985, the low income housing fund has a balance of approximately $2.3 million. The City continues to assist new construction of low income multi-family units with this fund through such measures as site acquisition, land cost right-down, provision of on- and off-site improvements, equity participation, and financing assistance. Public Housing projects currently being built in Chula Vista have been assisted by this fund with the named techniques. The City continues to attempt to utilize these funds to assist in the provision of a low and moderate income displaced mobile home park. All of the aforementioned techniques are used, with the possible addition of the provision of seed money and a down payment loan fund for the establishment of a limited-equity cooperative mobile home park. The City intends to request an allocation of $22 million in single-family mortgage revenue bond authority from the State Mortgate Bond Allocation Committee and awaits probable authorization at the end of Fiscal Year 1985-86. The City will also continue to consider multi-family mortgage revenue bond issues. Shared Housing: . The City provided $20,000 of Community Development Block Grant funds in Fiscal Year 1985-86 to a non-profit senior service organization to operate a shared housing program. The Shared Housing Program uses a referral, screening, and evaluation network to match low income home seekers with homeowners having available space. The housing costs of both parties can thus be reduced significantly. Participants to date have been predominantly elderly and almost exclusively low income. The City has a provision in its zoning ordinance for low income senior housing development. Under the conditional use permit process, multi-family rental projects exclusively for elderly at or below 80% of median income can receive unlimited density bonuses and waivers of such development standards as lot coverage restrictions, setbacks, and parking requirements. In addition, these projects may al so be assisted through a City-issued multi-family mortgage revenue bonds. -11 - ? Finally, the Action Program of the Housing Element of the City's General Plan -encourages innovative housing developments, going on record as being receptive to such approaches as reduced' unit size and reduced lot size planned residential developments and manufactured housing subdivisions. WPC 1266X - 12- GENERAL LOCATIONS - PART III GENERAL LOCATIONS - PART III The City of Chula Vista contains 28 census tracts under the 1980 Census. They are as follows: C.T. 32.04 C.T. 130.00 32.07 100. O1 131. O1 101.03 131.02 116.00 132.01 121.O0 132.02 I23.01 133.01 123.02 133.02 124.01 133.03 124.02 133.04 125.00 133.05 126.00 134.01 127.00 134.03 128.00 134.04 129.00 It is appropriate to identify the entire City as a priority area for new construction or substantial rehabilitation. There are no census tracts which are exclusively industrial or agricultural. And although several census tracts are Community Development Block Grant-eligible low income neighborhoods, none could be characterized as seriously impacted and all could support assisted housing without unfavorable concentration of lower income or mi nori ty hou sehol ds. WPC 1266X - 14 - HOUSING ASSISTANCE PLAN HUD FORM 7091.2 - ANNUAL HOUSING ASSISTANCE GOAL -15- NARRATIVE TO PART IV - ANNUAL HOUSING ASSISTANCE GOAL NARRATIVE TO ANNUAL HOUSING ASSISTANCE GOALS - PART IV For the first year of the three-year goal, October 1985 to September 1986, the City will continue to pursue HUD Rental Assistance Programs, the construction of low income rentals and rehabilitation of single-family units and multi-family rentals. The City anticipates that, on its behalf, the County Housing Authority will receive gl units of Section 8 Existing Authority from HUD. The City also intends to request the Housing Authority of the County of San Diego to pursue with HUD the allocation of Low Income Public Housing funds to develop up to 30 additional Low Income Public Housing units in Chula Vista. The City would explore assisting with land cost assistance and with density bonus. The City also anticipates receiving from HUD 15 units of Rental Rehabilitation and the associated certificates/vouchers. _ The City will continue to appropriately apply its multi-family, mortgage revenue bond program. Approximately 100 units could be so financed. As a condition of City sponsorship, projects have to certify low income tenancy of 20 percent of their units to the City. Semi-annual certified rent-rolls, monitoring, and audits are required. Failure to sustain the 20 percent low income occupancy could result in default on the project mortgage. The City's Redevelopment Agency will continue to negotiate wi th multi-family housing developers with the intention of assisting in the development of affordable multi-family rental units by using the Low Income Housing Fund from Redevelopment Tax Allocation Funds. Intended techniques have been listed above. Interest still exists within the development community to build multi-family units, and the City feels a commitment for up to 120 units during this annual period is achievable. Occupancy of such units by lower income households is assured through regulatory agreements. The Community Housing Improvement Program will continue to rehabilitate single-family, multi-family, and mobile home units. Low income occupancy of multi-family units will be protected by rent limitation at the Section 8 Fair Market Rents and by initial income verification and semi-annual monitoring. Furthemore, the City will continue to recirculate the repayment of Community Development Block Grant monies for home and rental rehabilitation loans. The City will also utilize tax increment revenues generated from redevelopment projects for rehabilitation loans. WPC 1266X - 16 -