HomeMy WebLinkAboutReso 1984-11864
RESOLUTI ON NO. 11864
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A RENTAL REHABILITATION
PROGRAM DESCRIPTION AND RELATED DOCUMENTS AND
AUTHORIZING SUBMITTAL TO HUD
The City Council of the City of Chula Vista does hereby resolve
as follows:
WHEREAS, the City has been informed by the U.S. Department of
Housing and Urban Development (HUD) that funds are available to the City in the
amount of $59,000 for the implementation of the HUD Rental Rehabilitation Program,
which program is aimed at improvement of substandard rental units occupied by
lower income families; and,
WHEREAS, the City of Chula Vista is desirous of providing
assistance for improvement of substandard rental units occupied by lower income
famil i es; and,
WHEREAS, eligibility and application for the available HUD funds
require that a local Rental Rehabilitation Program be designed with public input;
and,
WHEREAS, a local Rental Rehabilitation Program has been designed
and public input has been solicited to consider that design; and,
WHEREAS, submittal documents, including a narrative Program
Description, Certifications, and a Tenant Application Policy have been prepared
and attached as Exhibits A, B, and C, respectively, and are incorporated herein
as though fully set forth.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Chula Vista hereby approves the Rental Rehabilitation Program description and
related documents, authorizes the Mayor to sign said documents as necessary, and
authorizes the City Manager to submit said documents to HUD.
BE IT FURTHER RESOLVED that the City Council hereby appropriates
the 1984-85 Rental Rehabilitation entitlement from HUD to Account #642-6420-RG01,
Rental Rehabilitation 84-85.
Approved as to form by
Pau . esrochers,
Development Director
'Z1>.¿r)~
, Ci ty Attorney
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 11 th
19 84 , by the fOllowing vote, to-wit:
Cox, Malcolm, McCandliss, Scott, Moore
day of
December
AYES: Councilmen
NAYES; Councilmen
ABSTAIN: Councilmen
ABSENT; Councilmen
None
None
None
ATTEST ,j};4¿'¿ :?f::y5¿&.-;f ~
!/ City Clerk
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City of Chula Vista
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 11864 ,and that the same has not been amended or repealed.
DATED
(sea )
City Clerk
CC-660
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RENTAL REHABILITATION PROGRAM
CITY OF CHULA VISTA
PROGRAM DESCRIPTION
EXH\B\T A
The Ci ty of Chul a Vi sta wi 11 encourage and assi st in the rehabi 1 i tati on of
residential rental units in Chula Vista under the Rental Rehabilitation
Program authorized by the U. S. Community Development and Urban-Rural Recovery
Act of 1983. Grant and rental subsidy resources available from HUD will be
used to increase the stock of standard rental housing in the City and to
assure the affordability of such housing to lower income families. The
program has been designed to maximize both improvement assistance to
substandard rental units which will house larger families and affordability to
very low-income households.
I. PROGRAM ACTIVITIES
In FY 1984-85, the Ci ty of Chula Vi sta wi 11 encourage and assi st in
the rehabil itation of approximately 35 rental dwell i ng units. The program
will be pursued by the City's existing staff responsible for the Block
Grant-funded mul ti -fami ly rehabil i tati on program, the Communi ty Housi ng
Improvement Program (CHIP). Rental projects in the targeted nei ghborhoods
wi 11 be i dentifi ed for assi stance consi derati on, usi ng the Housi ng
Rehabilitation Specialist/Code Enforcement Officer and the Housing
Rehabi 1 itati on Admi ni strator. Proj ects evi denci n9 substandard conditi ons and
predominant occupancy by lower income tenants will be encouraged to apply for
program assistance. Proposed projects will be evaluated by the Loan Committee
of the existing CHIP Rehabilitation Program for satisfaction of program
goal s. Approved projects will be referred to the Bank of America for loan
processi ng, for both market rate pri vate rehabil i tati on loans and program
loans. Program loans will be in the form of ten-year, 0% interest deferred
loans, forgiven in full at term, but payable in full if prepaid prior to full
term or at vi 01 ati on of condomi ni um conversi on or assi sted tenant
di scrimi nati on pro hi biti ons. Max imum assi stance wi 11 be 50% of the per uni t
rehabil itati on cost, to a maximum of $5,000 per uni t. Program loans and
attendant prohibitions will be secured by a lien on the subject property.
Matching private investment will be accomplished where possible by the
underwri ti ng of pri vate property improvement loans by the Bank of America.
Affected eligible tenants will receive Section 8 Existing rental subsidies
from the Public Housing Authrity. Affected lower income tenants not suitably
housed in rehabilitated units will receive technical and financial relocation
assistance from program funds.
II. NEIGHBORHOOD SELECTION
The Rental Rehabilitation Program will be operated in the CHIP target
neighborhoods. These neighborhoods are among the lowest income neighborhoods
in the City, with 1980 Census data indicating that the median incane in the
Census Tracts these neighborhoods comprise is below 80% of the area median
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income. These neighborhoods are a mix of single-family and multi-family
units, with the great majority of rental rates being below prevailing market
rates in Chul a Vi sta and below the current Secti on 8 Exi sti ng Fair Market
Rents. Communi ty Development Block Grant-funded Housi ng Rehabi 1 i tati on and
Capi tal Improvement acti vi ti es, and redevelopment of the adj acent downtown
commercial section, promise to revitalize these declining neighborhoods, but
the modest nature of the housing stock and the scope of the revitalization
activities will not result in gentrification of the neighborhoods. Rent
levels will rise over the next five years, but not at as great a rate as rents
in the market area.
Selection of these neighborhoods is based on 1980 Census data, A Housing Study
for the City of Chula Vista, dated May 1984, and field observation.
II 1. LOWER INCOME BENEFIT
A minimum of 70% of the rental rehabilitation grant will be used to
assi st lower income fami 1 i es. One-hundred percent lower income benefit wi 11
be striven for, but achieving that level is unlikely. No neighborhoods in
Chula Vista are so significantly lower income, and no rental projects are so
significantly substandard, that more than 70% low income occupancy of a rental
proj ect woul d 1 i kely be encountered. If 100% lower income occupancy were
necessary, significant numbers of non-lower income families would have to be
displaced by the property owner/applicant, which the City feels is an
unacceptable circumstance. Given the characterisitics of the Chula Vista
nei ghborhoods and the di spl acement whi ch woul d resul t, no practical program
design exists which could achieve 100% low incane benefit level. Through the
public hearing process to consider the program description, the public has
been consulted regarding the inability to achieve a 100% lower income benefit
level.
IV. USE OF RENTAL REHABILITATION GRANTS FOR HOUSING FOR FAMILIES
A mi nimum of 70% of the units assi sted under the program will be
two-bedroom or larger. First priority for assistance will go to three bedroom
units. As apartment projects in Chula Vista seldom contain three bedroom
units, outreach will be concentrated on rental duplexes. All assistance given
under the program will be approved by the City's CHIP Loan Committee, using as
one of their criteria for project selection the goal of a minimum of 70% total
program assistance to units of two bedrooms or larger and highest priority to
three-bedroom uni ts.
V. USE OF RENTAL REHABILITATION GRANTS FOR UNITS IN SUBSTANDARD
CONDITION THAT ARE OCCUPIED BY VERY LOW-INCOME FAMILIES
Priority will be given to projects with substandard units occupied by
very 1 ow-i ncome famil i es. All assi stance gi ven under the program wi 11 be
approved by the City's CHIP Loan Committee, using as one of their criteria for
proj ect sel ecti on the pri ority to projects with substandard uni ts occupi ed by
very low-income families.
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VI. SELECTION OF PROPOSALS
Proposals will be selected by the CHIP Loan Committee based on the
following criteria:
a. Correction of substandard units, especially those occupied by
very low-income families.
b. Predomi nance of assi stance to 1 arge fami 1 i es in 1 ower-i ncome
categori es, wi th a mi nimum of 70% of all units assi sted bei ng
two bedrooms or larger, and with highest priority going to
three-bedroom units.
c. Maximum stimulation of private investment.
d. Minimization of displacement of tenants.
The Loan Committee will also evaluate the pro forma and loan
processing information in order to select financially feasible projects with
maximum program benefit. Operating income and replacement reserve levels will
be considered. The Loan Committee will consider the distribution of Section 8
Existing certificates to a project or the provision of financial relocation
assistance in their evaluation of program benefit. Relocation expenses paid
to project unit displacees will be deducted from the $5,000 per unit maximum
assi stance level s.
VII. FINANCIAL FEASIBILITY
The Rental Rehabilitation Program will
Pri vate funds will be avail ab 1 e through pri vate
1 endi ng servi ces for both program deferred loans
from Bank of America.
be financially feasible.
lending institutions, with
and pri vate loans obtai ned
V II 1. NEIGHBORJ{)OD PRESERVATION
Neighborhood preservation is currently under way in the target
neighborhood, using Block Grant-funded housing rehabilitation, Block
Grant-funded Capital Improvement Projects, and Block Grant-funded social
service activities. Additional property improvement under the program coul d
only enhance that neighborhood preservation.
IX. SCHEDULE FOR COMMITTING RENTAL REHABILITATION GRANT AMOUNTS
Specific projects have not yet been selected for the program, but as
the City runs an existing Block Grant-funded multi-family rehabilitation
program, projects suitable for this program can be easily identified. All
staff and mechanisms for processing and approving loans are in place.
Anticipating the receipt of identical funding for the 1985 fiscal year in
FY 1984, the program is scheduled to expend $122,000 in FY 1984.
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Our best local estimate is that the average subsi dy per unit wi 11 be
approximately $3,500. That means that the program would rehabilitate 35 units
in 12 months. As it woul d be most advantageous for the Loan Committee to
evaluate a number of project proposals simultaneously, project proposals will
be batched for consi derati on in the thi rd quarter of FY 1984. We woul d
anticipate committin9 funds to approximately 24 units at that point. That
commitment would be $84,000, or 68% of our 1984 and 1985 grant funds. By the
middle of the fourth quarter of FY 1984, we would anticipate a total unit
commitment of 30 units or $105,000 (83%). The total grant amount should be
committed by July of 1985.
X. NEED FOR RENTAL HOUSING ASSISTANCE.
Not appl icable.
XI. NON-DISCRIMINATION AND EQUAL OPPORTUNITY
Affirmative marketing and fair housing principles will be pursued by
the program. The program will not participate in unit marketing, but property
owners will be counseled in affirmative marketing principles and monitored for
canpl i ance.
The Ci ty wi 11 provi de fai r housi ng counsel i ng to owners of assi sted
units and to perspective tenants. The following steps will be taken:
a. Written material on Federal Fair Housing Laws will be
distributed to owners and tenants. All advertisements or public
annoucements regarding the program will include the Equal
Housing Opportunity logo.
b. Each unit assisted through the Rental Rehabilitation Program
will be marketed in a manner to affirmatively further fair
housing, including but not limited to the following:
1) Listing available units with the Section 8 Existing
Marketing Section of the Housing Authority.
2) Attempting to fill vacant units with families who are
active certificate holders through the Section 8 program,
or who are appl icants on the waiti ng li st for Section 8
certificates or vouchers.
3) Usi ng the Equal Housi ng Opportunity logo in any newspaper
advertisement or written communication to community groups,
organizations, agencies, or other community contacts.
OWners wi 11 util i ze vari ous communi ty contacts to advertise uni t
availability to those persons in the housing market area least likely to apply
for the unit. Applications will be solicited from such individuals.
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The City will gather and maintain records to demonstrate compliance
as follows:
a. Copies of all written material regarding vacant units for rent
wi 11 be kept by the property owner and by the City. Records
will be kept of applications received in response to available
vacancies.
b. The City will periodically review affirmative marketing efforts
made by owners to ensure compliance with Equal Housing
Opportuni ty provi si ons. Where an owner has failed to follow
affirmative marketi ng requirements, appropri ate actions,
available under program regulations and/or applicable laws, will
be taken to enforce conformity. In cases where housi ng
discrimination is established to have occurred, such established
housing discrimination shall be a condition of default on
program deferred loans.
OWners will be encouraged to comply with provisions of affirmative
marketing of the units for no less than seven years after the completion date
of rehabilitation of all units in the project.
XII. GRANTEE ORGANIZATIONAL STRUCTURE
The Rental Rehabil itati on Program contact person for the Ci ty of
Chula Vista is: David Gustafson, Housing Coordinator, City of Chu1a Vista, 276
Fourth Avenue, Chula Vista, CA 92010.
XII 1. PUBLIC HOUSING AUTHORITY PARTICIPATION
The Housi ng Authority of the County of San Di ego has appl i ed to HUD
for Section 8 Exi sti ng certificates to provide to the City Rental
Rehabilitation Program. A Memorandum of Understanding for the administration
of these certificates has been executed between the City and the Housi ng
Au thori ty.
The Section 8 Existing Rental Rehabilitation Program contact person
is: Josephi ne Si 1 va, Chi ef, Housi ng Programs, Housi ng Authori ty of the County
of San Diego, 7917 Ostrow Street, San Diego, CA 92111-3694, at 565-3444.
XI V. CERTIFICATIONS
The necessary certifications are attached. They were approved by
City Council Resolution on July 3, 1984, for FY 1984-85 funding and on
December 11, 1984, for FY 1985-86 funding.
WPC 1008X
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EXHIBIT ß
RENTAL REHABILITATION PROGRAM
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CERTIFICATIONS
The grantee certifies that:
(1) The submission of this Program Description is authorized under State
"and local law (as applicable), and the grantee possesses the legal
authority to carry out the Rental Rehabilitation Program described
herein, in accordance with 24 CFR Part 511;
(2) The grantee's Rental Rehabilitation Program was developed after
consultation with the public and its description of program
activities in the "Program Activities" section of this Program
Description has been made available to the public;
(3) / xl (Check if this paragraph is applicable.)
The grantee's lower income benefit standard is hereby reduced to 70
percent as pt'ovided by 24 CFR 511.10(a)(2). The discussion of lower
income benefit in th·is Program Description contains a specific
explanation of the reasons why this reduced benefit standard is
necessary, which explanation complies with 24 CFR 511.10(a)(2).
(4) The grantee has adopted a written tenant ass"ístance policy conformin~
to the requirements of 24 CFR 511.10(h)(2), and such policy will be
made available to the public on request;
(5) The grantee will conduct and administer its f!ènta1 Rehabilitation
Program, and, if applicable, ensure that State recipients conduct and
administer their Rental Rehabilitation Progrdms, in conformity with
the requirements of 24 CFR 511.10(m); and
(6) The grantee wi 11 conduct and administer its ¡¡ental Rehabil it at ion
Program, and, if applicable, ensure that State recipients conduct dnd
administer theil' Rental Rehabilitation ProgriliOs, in accordance will,
the requirements of 24 CFR Part 511.
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EXHIBIT c:
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RENTAL REHABILITATION PROGRAM TENANT ASSISTANCE POLICY
1. INTENT
The Chula Vista Rental Rehabilitation Program will seek to minimize
permanent displacement of residential rental tenants as a result of program
activities. In cases where permanent displacement of low income families,
(less than 80% of median income) is unavoidable, financial and technical
relocation assistance will be provided to those families. Very low-income
families (less than 50% of median income) will not be permanently displaced
in favor of non very low-income families. Cost and assistance needs resulting
from temporary displacement of tenants during property improvement will be the
responsibility of the property owner and will not be paid from program funds.
The Rental Rehabilitation Program will be administered so as to not
cause the displacement of persons because of their particular, race, color,
religion, sex, age, handicap, or natural origin.
11. DEFINITIONS OF DISPLACEMENT
A. Non low-income families moving from a unit undergoing rehabilita-
tion under the program will not be considered displacees under
the Tenant Assistance Program.
B. Low-income and very low-income families will be considered
displacees if their displacement is a direct result of program
activity and not an action for cause.
C. Examples: of program related displacement include, but are not
limited to, unit underuti1ization, unit overcrowding, ho~sing
cost overpayment (family paying more than 30% of monthly gross
income for housing expenses), or tenant ineligibility to Section 8
Existing rental subsidy assistance as a result of unit rent ex-
ceeding Section 8 Fair Market Rent. No tenant will be considered
displaced if the tenant has been offered a decent, safe, and
sanitary dwelling unit in the project at an affordable rent.
Qualification as disp1acees will be solely determined by the City.
III. ASSISTANCE TO DISPLACEES
A. Displacees will receive either Section 8 rental subsidy assistance,
or relocation assistance under the provisions for permanent dis-
placement of the U.S. Uniform Relocation Assistance and Property
Acquisition Act of 1970, at the option of the City. Provisions of
the Act include technical assistance, moving allowances, and rental
differential payments. Displacees receiving Section 8 certificates
will also be eligible for technical assistance and moving allowances.
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B.
Technical assistance will include information and counseling to
familiarize displacees with opportunities to select appropriate
replacement housing within the full range of available housing,
with individual rights under the federal Fair Housing Law, and
with methods for searching for suitable replacement housing.
c.
No displacees will be discriminated against in the provision of
information, counseling, referrals, or other relocation services.
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